/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/061205.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, December 5, 2006, Vol. 7, Issue 241 Headlines A N T I G U A & B A R B U D A BETONSPORTS: Antiguan Regulator Asks Court to Halt Firm's Sale A R G E N T I N A BALLY TECH: Appoints Robert L. Guido to Board of Directors CINTRA SRL: Deadline for Claims Verification Is Set for Dec. 6 CLUB ATLETICO: Claims Verification Deadline Is Set for Feb. 1 COMPANIA DE TRANSPORTE: Discloses Early Tender Results on Offer COMPANIA DE TRANSPORTE: S&P Rates Proposed US$250MM Bond at B CURTIEMBRE BECAS: Last Day for Verification of Claims Is Feb. 13 DANOMAT CONSTRUCCIONES: Claims Verification Is Until Dec. 6 DISTRILUM SA: Verification of Proofs of Claim Is Until Feb. 2 EL SUPER: Reorganization Proceeding Concluded FREESCALE: Blackstone-Led Consortium Closes Purchase of Company SANCOR: Eduardo Eurnekian Balks at Adecoagro Purchase Deal SUPERVIELLE PERSONALES: Moody's Puts Low B Ratings on Securities * ARGENTINA: Foreign Debt Remains Large Despite Payoffs * ARGENTINA: May Ask Mikhail Gorbachev's Aid on Mill Dispute B E R M U D A ASTERN CAPITAL: Proofs of Claim Must be Filed by Tomorrow BRISTOL FINANCE: Tomorrow Is Last Day to File Proofs of Claim CLSA (Bermuda): Proofs of Claim Filing Is Until Tomorrow DECK INTERNATIONAL: Claims Filing Deadline Is Tomorrow DOVER INTERNATIONAL: Proofs of Claim Filing Is Until Tomorrow INTELSAT: Renews China Central's Global Distribution Contract LNR DB: Creditors Have Until Tomorrow to File Proofs of Claim LNR GOLD: Creditors Must File Proofs of Claim by Tomorrow PANTHER RE: AM Best Assigns BB Rating on US$144MM Term B Loans PANTHER RE: Moody's Puts Ba2 Rating on US$144MM Term B Loan SCOTTISH RE: Amends Bank Credit Facility Agreement SCOTTISH RE: Fitch Revises Ratings Outlook to Evolving B O L I V I A PETROLEO BRASILEIRO: Caranda Refinery Is Back in Operation PETROLEO BRASILEIRO: Makes Changes to Executive Staff in January * BOLIVIA: Gains Control Over Foreign Energy Firm's Operations * BOLIVIA: Launches Tender Process for Dam Construction B R A Z I L BANCO BRADESCO: Joins Corporate Sustainability Index on Bovespa BANCO BRADESCO: Unit Eyes BRL10-Billion Revenues for 2006 BANCO BRADESCO: Unit Won't Sell Individual Health Portfolio BANCO NACIONAL: Lends US$400 Million for Infrastructure Works BANCO NACIONAL: South American Export Funding at US$5.8B in 2006 BRASKEM SA: Board of Directors Mulling Debenture Cancellation COMPANIA ENERGETICA: S&P Ups Corp. Credit Rating to B- from CCC+ COMPANHIA PARANAENSE: Remains on Bovespa's Sustainability Index LUCENT TECH: Alcatel-Lucent Creates Unit to Serve US Clientele METROLOGIC INSTRUMENTS: Moody's Assigns B2 Corp. Family Rating NET SERVICOS: Extraordinary Shareholders Meeting Set for Dec. 14 NOVELIS INC: S&P Affirms BB- Corporate Credit Rating TAM SA: Incorporated to Brazilian Sustainability Index C A Y M A N I S L A N D S GOLDENTREE CREDIT: Proofs of Claim Must be Filed by Dec. 14 MEDICI OFFSHORE: Last Day for Proofs of Claim Filing Is Dec. 14 MUIR CAPITAL: Last Day to File Proofs of Claim Is on Dec. 14 OAKWOOD ONE: Deadline for Proofs of Claim Filing Is on Dec. 14 O'CONNOR (MASTER): Proofs of Claim Must be Submitted by Dec. 14 O'CONNOR SYSTEM: Last Day to File Proofs of Claim Is on Dec. 14 OGOT COMPANY: Proofs of Claim Filing Deadline Is Set for Dec. 14 PENDRAGON (EXCALIBUR): Proofs of Claim Must be Filed by Dec. 14 PENDRAGON (MERLIN): Last Day to File Proofs of Claim Is Dec. 14 RANGER (NON ENHANCED): Claims Submission Deadline Is on Dec. 14 RANGER MULTI-STRATEGY: Proofs of Claim Filing Is Until Dec. 14 TAHOMA MASTER: Creditors Must File Proofs of Claim by Dec. 14 TRITON FUND: Deadline for Filing Proofs of Claims Is Dec. 14 WIMBLEDON MARATHON: Filing of Proofs of Claim Is Until Dec. 14 WIMBLEDON (MASTER): Claims Filing Deadline Is Set for Dec. 14 C O L O M B I A AES CHIVOR: S&P Places B+ Ratings on Positive Watch ECOPETROL: Talking with Jamaica on Compressed Natural Gas Supply GVI SECURITY: Sept. 30 Balance Sheet Upside-Down by US$4.5 Mil. C O S T A R I C A * COSTA RICA: S&P Affims Low B Currency Sovereign Credit Ratings D O M I N I C A N R E P U B L I C BANCO BHD: Won't be Part of Coral-Grupo Globalia Talk TAG-IT PACIFIC: Earns US$339,117 in 3rd Quarter Ended Sept. 30 E C U A D O R DOLE FOOD: Weak Performance Cues S&P to Cut Credit Rating to B E L S A L V A D O R SBARRO INC: S&P Places Ratings on NegWatch on MidOcean Buyout G U A T E M A L A SBARRO INC: Discloses Terms of MidOcean Merger Agreement SBARRO INC: Moody's Changes Outlook to Developing from Positive G U Y A N A BRITISH WEST: Militant Group Threatens Firm with Chemical Attack H O N D U R A S LEAR CORP: Transfers All North American Assets to Joint Venture J A M A I C A AIR JAMAICA: Former Management Balks at Maintenance Accusations AIR JAMAICA: Paul Pennicook Denies Plans of Merger AIR JAMAICA: Receives US$34 Million for Working Capital SUGAR COMPANY: Receives US$34.7 Million for Firm's Privatization M E X I C O ALASKA AIRLINES: Contributes US$50MM to Employee Pension Funds FORD MOTOR: S&P Rates US$15B Senior Sec. Credit Facilities at B FORD MOTOR: S&P Junks Ratings on 8 Synthetic ABS Transactions GREAT PANTHER: Topia & Guanajuato Mines Production Increases HOME PRODUCTS: Interest Nonpayment Cues Moody's to Cut Ratings HUDSON PRODUCTS: Moody's Assigns B2 Corp. Family Rating JETBLUE AIRWAYS: Launches Nonstop Service to Yucatan Peninsula NORTEL NETWORKS: Implements Share Consolidation SATELITES MEXICANOS: Emerges from US Bankruptcy Protection SATELITES MEXICANOS: Appoints Raul Cisneros as Chief Executive VISTEON CORP: Amended Sr. Bank Debt Cues S&P to Affirm Ratings * MUNICIPALITY URUAPAN: Moody's Releases Joint Default Analysis * STATE OF VERACRUZ: Moody's Releases Joint Default Analysis * STATE OF YUCATAN: Moody's Releases Joint Default Analysis P A R A G U A Y VISION SA: S&P Affirms B- Long-Term Counterparty Credit Rating P E R U CHINA FISHERY: Moody's Rates Proposed US$200MM Notes at (P)B1 P U E R T O R I C O ADELPHIA COMM: Majority of Creditors Vote to Accept Plan ALBERTO-CULVER: Reorganizes Business After Separation from Sally PILGRIM'S PRIDE: Declares US$2.25 Per Share Quarterly Dividend T R I N I D A D & T O B A G O BRITISH WEST: Caribbean Airlines Gets First Boeing 737-800 BRITISH WEST: Injects TT$2 Billion for Caribbean Airlines BRITISH WEST: Pan Trinbago Furious Over Airline's Motif Change U R U G U A Y CIRSA BUSINESS: Moody's Lowers Corporate Credit Rating to B1 CIRSA BUSINESS: S&P Cuts Corporate Credit Rating to B+ from BB- DIVINO SA: Moody's LatAm Puts Caa1 Rating on US$2.4MM Bonds V E N E Z U E L A PETROLEOS DE VENEZUELA: Absorbs About 1,700 Temporary Workers * NASDAQ STOCK: S&P Lowers Counterparty Credit Rating to BB * Alvarez & Marsal Establishes Operations in Canada * Thomas Elliott Joins Alvarez & Marsal as Managing Director * BOOK REVIEW: The Chief Executives - - - - - ================================= A N T I G U A & B A R B U D A ================================= BETONSPORTS: Antiguan Regulator Asks Court to Halt Firm's Sale -------------------------------------------------------------- The Financial Services Regulatory Commission or FSRC of Antigua and Barbuda has sought a Court injunction to stop the sale of BETonSPORTS (Antigua) Ltd., a unit of BetonSports Plc in Antigua and Barbuda, Caribbean 360 reports. According to Caribbean 360, FSRC asked the court to stop BETonSPORTS (Antigua) from entering into any accord or arrangement to sell, transfer or dispose of cash and assets within or outside Antigua and Barbuda without the regulator's consent, management and supervision. The office of the prime minister said in a press release that FSRC's application also called for BETonSPORTS to account for its assets and obligations or provide the information that will assist FSRC in making sure that the firm's clients are protected to the maximum extent possible and that Antigua and Barbuda's Laws and Regulations are followed, for the orderly closure of BETonSPORTS US operations. Caribbean 360 underscores that FSRC sought for the court's intervention after a settlement was disclosed between the US government and BETonSPORTS and its affiliates concerning criminal and civil charges filed against the company by US authorities earlier in this year. Kaye McDonald, the director of gaming for FSRC, told Caribbean 360, "While the jurisdiction of the United States government over BETonSPORTS is questionable, by virtue of being the holder of an Interactive Gaming and Interactive Wagering license issued by the Antiguan and Barbudan authorities, BETonSPORTS has acquiesced to our International jurisdiction over the company and its assets. It is important for the protection of consumers that whatever assets BETonSPORTS has remaining be properly available to depositors and other creditors and not be dissipated on fines or penalties or otherwise improperly disposed." Lebrecht Hesse, the FSRC chairperson commented to Caribbean 360, "We believe that the United States should step aside and ensure that our regulators can enforce and oversee the application of the laws of Antigua and Barbuda to the orderly dissolution of BETonSPORTS. We are disappointed that the United States efforts to prohibit cross-border competition in gambling and betting services have led to the disruption of a once-healthy and robust service provider, but we are just as adamant that our jurisdiction be respected in the interests of consumers and others." Caribbean 360 relates that FSRC's petition will be heard this week. BETonSPORTS will be given the chance to respond to the application for a restraining order. Meanwhile, the BetOnSport.com website has been temporarily closed, Caribbean 360 states. "In light of court papers filed in the United States, the company has temporarily suspended this facility pending its ability to assess its full position. During this period no financial or wagering transactions can be executed. Further information will be posted once the company is in a position to do so," BETonSPORTS told Caribbean 360. BetonSports is an online gaming company publicly trading on the London Stock Exchange, but has no operations in the United Kingdom. Around 80% of the company's business operates in the United States, where sports betting is illegal except in the State of Nevada. The group also has operations in Asia, Argentina and Mexico. As reported in the Class Action Reporter on Sept. 6, BetonSports is also facing a complaint filed by gambling information portals The Online Wire, Gambling 911, Alternative Investments Market Regulatory News Service over alleged corporate fraud. The complaint is directed at BetonSports' Aug. 11 announcement that payments to its customers after the shutdown of its Costa Rican and Antiguan operations are being held by banks and cash processors. The class action suits have not yet crippled the company financially but its shares in the London Stock Exchange have been suspended from trading. ================= A R G E N T I N A ================= BALLY TECH: Appoints Robert L. Guido to Board of Directors ---------------------------------------------------------- Bally Technologies, Inc., appointed Robert L. Guido to its Board of Directors. Mr. Guido, who has been affirmatively determined by the company's board to be an independent director, will also serve on the company's Audit Committee. Mr. Guido recently retired from Ernst & Young where he was Vice Chair and CEO of E&Y's Assurance and Advisory Practice. In this role, he was responsible for overall business strategy and had significant dealings with both the U.S. Securities and Exchange Commission and the Public company Accounting Oversight Board (PCAOB) on behalf of the firm. During his 38-year career at Ernst & Young, Guido also co-chaired the firm's Global Client Steering Committee and served as a senior advisory or engagement partner to numerous global companies. "Bob will make an immediate contribution to our company," said David Robbins, Chairman of the Board. "His years as a senior executive and partner with Ernst & Young establishing policy and serving large public companies will be invaluable to us. He has significant expertise in various SEC and PCAOB matters, and his appointment is an important next step as we strive to enhance the company's internal control structure and financial reporting." Richard Haddrill, Chief Executive Officer, added, "In addition to Bob's financial expertise, he has significant experience leading various units of Ernst & Young and advising a broad array of companies and businesses. I look forward to his contributions to our overall business direction and execution." Headquartered in Las Vegas, Nevada, Bally Technologies, Inc. (NYSE: BYI) -- 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, bonus, cashless, and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Miss. The company's South American operations are located in Argentina. The company also has operations in Macau, China, and India. * * * As reported in the Troubled Company Reporter on Aug. 16, 2006, Standard & Poor's Ratings Services held its ratings on Bally Technologies Inc., including the 'B' corporate credit rating, on CreditWatch with negative implications. CINTRA SRL: Deadline for Claims Verification Is Set for Dec. 6 -------------------------------------------------------------- The court-appointed trustee for Cintra SRL's bankruptcy proceeding, will verify creditors' proofs of claim until Dec. 6, 2006. The trustee will present the validated claims in court as individual reports on Feb. 22, 2007. A court in Rosario, Santa Fe, will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Cintra 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 Cintra's accounting and banking records will follow on Apr. 6, 2007. The trustee is also in charge of administering Cintra's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Cintra SRL Pueyrredon 349, Rosario Santa Fe, Argentina CLUB ATLETICO: Claims Verification Deadline Is Set for Feb. 1 ------------------------------------------------------------- Estudio Bruzzo, Plotno, Turek y Asoc., the court-appointed trustee for Club Atletico San Miguel Asoc. Civil's bankruptcy case, will verify creditors' proofs of claim until Feb. 1, 2007. Estudio Bruzzo will present the validated claims in court as individual reports on March 27, 2007. A court in General San Martin, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Club Atletico 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 Club Atletico's accounting and banking records will follow on May 16, 2007. The trustee is also in charge of administering Club Atletico's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Estudio Bruzzo, Plotno, Turek y Asoc. Ayacucho 2121, San Martin Buenos Aires, Argentina COMPANIA DE TRANSPORTE: Discloses Early Tender Results on Offer --------------------------------------------------------------- Compania de Transporte de Energia Electrica en Alta Tension aka Transener S.A. disclosed the early tender results of its offer to purchase for cash any and all of the company's outstanding notes. The company also announced second noteholders' meetings in relation to its solicitation of proxies for certain amendments with respect to the Eligible Notes. The purpose of the proposed amendments is to eliminate substantially all of the restrictive covenants and certain related provisions contained in the indenture governing the Eligible Notes. Holders who desire to tender their Eligible Notes must vote in favor of the proposed amendments, and holders may not deliver proxies without tendering the related Eligible Notes. The Offer is conditioned upon, among other things, the receipt of the requisite proxies to adopt such proposed amendments, as well as obtaining the requisite funding. The company reserves the right to further extend, amend or terminate the Offer and Proxy Solicitation at any time. The terms and conditions of the Offer and Proxy Solicitation are set forth in an Offer to Purchase and Proxy Solicitation Memorandum, dated Nov. 8, 2006. Series of Nominal Principal Eligible Notes CUSIP/ISIN Number Amount Outstanding Par Listed Regulation S Notes due 2016 P3058XAE5/USP3058XAE50 US$38,898,946 Par Listed Restricted Notes due 2016 20448RAB4/US20448RAB42 US$6,237,895 Par Definitive Notes due 2016 20448RAD0/US20448RAD08 US$466,101 Par Unlisted Regulation S Notes due 2016 P3058XAH8/USP3058XAH81 US$8,647,868 As of 5:00 p.m., New York City time, on Nov. 30, 2006, tenders for US$31,323,808 of the nominal principal amount outstanding of the Listed Notes (consisting of the Par Listed Regulation S Notes due 2016 and the Par Listed Restricted Notes due 2016), representing approximately 69.4% of the Listed Notes outstanding, had been received, and tenders for US$8,647,868 of the nominal principal amount outstanding of the Unlisted Notes (consisting of the Par Definitive Notes due 2016 and the Par Unlisted Regulation S Notes due 2016), representing approximately 94.9% of the Unlisted Notes outstanding, had been received. As of Dec. 1, the number of proxies received may not equal the nominal principal amount of tenders received. The company is continuing to receive proxies, and the date by which proxies must be received to vote at the second noteholders' meetings, and the date of record for the meetings, is Dec. 7, 2006, at 5:00 p.m. New York time (7:00 Buenos Aires time). In accordance with the terms of the Offer to Purchase Memorandum, tendered Eligible Notes may no longer be withdrawn and delivered proxies may no longer be revoked, unless the Offer is terminated or the company is required by law to permit withdrawal or revocation. The Offer will expire at 5:00 p.m., New York City time, on Dec. 15, 2006, unless extended or earlier terminated. The record date for the first noteholders' meetings called for Nov. 30, 2006, to vote on proposed amendments to the terms of the Eligible Notes was 5:00 p.m., New York City time, on Nov. 24, 2006. As of that record date there was no quorum for the Listed Notes or the Unlisted Notes. Therefore, the board of directors of the company, per a resolution dated Nov. 30, 2006, has called a second noteholders' meeting for each of the Listed Notes and the Unlisted Notes in respect of the proposed amendments. The meetings will be held on Dec. 14, 2006, at 10:00 a.m. Buenos Aires time for the Listed Notes and at 12:00 p.m. Buenos Aires time for the Unlisted Notes. In order to participate in the meetings, holders of Eligible Notes must submit proxies as described in the Offer to Purchase Memorandum and as further notified in the notices of such meetings prior to the Proxy Delivery Date. Deutsche Bank Securities Inc. is serving as joint dealer manager and sole coordinator and solicitation agent and Citigroup Global Markets Inc. is serving as joint dealer manager and solicitation agent for the Offer and the Proxy Solicitation. Questions about the Offer or the Proxy Solicitation may be directed to: Deutsche Bank Securities Liability Management Group Tel: (866) 627-0391 (U.S. toll-free) (212) 250-2955 (outside the U.S.) -- and -- Deutsche Bank S.A. - Argentina Tel: (54) 11-4590-2740 (in Argentina) Global Bondholder Services Corporation is serving as information agent and depositary and Deutsche Bank Luxembourg S.A. is serving as Luxembourg tender agent. Requests for documents may be directed to: Global Bondholder Services Corp. Tel: (866) 294-2200 In addition, copies of the Offer to Purchase Memorandum and related materials may be obtained at the office of the Luxembourg Tender Agent: Deutsche Bank Luxembourg S.A. 2 Boulevard Konrad Adenauer L1115 Luxembourg Compania de Transporte de Energia Electrica en Alta Tension aka Transener owns the national network of high-voltage power transmission lines, which consist of nearly 8,800km of lines together with the approximately 5,500km in its Transba subsidiary's network. * * * As reported in the Troubled Company Reporter on Sept. 5, 2006, Fitch Argentina Calificadora de Riesgo S.A. rated Transener S.A.'s debts at: -- Obligaciones Negociables Class 3 for US$1,300,000, D -- Obligaciones Negociables Class 6, at same price, with public offer of up to US$100,000,000, BBB -- Obligaciones Negociables Class 7, with discount, public offer, for up to US$245,000,000, BBB- -- Obligaciones Negociables Class A for US$822,000, D -- Obligaciones Negociables Class B for US$3,100,000, amount in circulation: US$1,395,000, BBB- The rating action was based on the company's financial status at June 30, 2006. COMPANIA DE TRANSPORTE: S&P Rates Proposed US$250MM Bond at B ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' rating to the proposed bond for up to US$250 million to be issued by Argentina's largest power transmission company, Compania de Transporte de Energia Electrica en Alta Tension Transener SA. At the same time, Standard & Poor's affirmed the 'B' corporate credit rating on the company. The outlook is stable. "While the terms of the new debt still need to be defined, we expect this issuance to mostly go toward refinancing the company's outstanding debt, which may probably extend the tenor of Transener's indebtedness and improve financial flexibility, although it could also slightly increase the company's interest burden and result in higher-than-projected dividends in the next five years," said Standard & Poor's credit analyst Sergio Fuentes. "Nevertheless, we expect that Transener will be able to meet its financial obligations in the next few years," added Mr. Fuentes. The ratings on Transener mainly reflect the high political and regulatory risk in Argentina and the company's relatively weak debt service coverage ratios, high foreign exchange risk, and limited financial flexibility. In contrast, the ratings benefit from Transener's strong competitive position, efficient operations, and favorable debt maturity profile. The stable outlook reflects our expectations that Transener will be able to meet its financial obligations during 2007-2008 in a context of relative stability of inflation and exchange rate in Argentina. Rating upside is limited by political and regulatory risk in Argentina. However, the ratings could be lowered if Transener is affected by a sizable devaluation of the Argentine peso, high inflation, or further government intervention that could significantly alter its financial performance or business fundamentals. CURTIEMBRE BECAS: Last Day for Verification of Claims Is Feb. 13 ---------------------------------------------------------------- Estudio Lesta, Calelo, de Chiara Contadores Publicos, the court-appointed trustee for Curtiembre Becas SA's reorganization proceeding, will verify creditors' proofs of claim until Feb. 13, 2007. Under the Argentine bankruptcy law, Estudio Lesta 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 Curtiembre Becas and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Estudio Lesta will also submit a general report that contains an audit of Curiembre Becas' accounting and banking records. The report submission dates have not been disclosed. On Nov. 14, 2007, Curtiembre Becas' creditors will vote on a settlement plan that the company will lay on the table. Clerk No. 8 assists the court in the proceeding. The debtor can be reached at: Curtiembre Becas SA Viamonte 783 Buenos Aires, Argentina The trustee can be reached at: Estudio Lesta, Calelo, De Chiara Contadores Publicos Viamonte 783 Buenos Aires, Argentina DANOMAT CONSTRUCCIONES: Claims Verification Is Until Dec. 6 ----------------------------------------------------------- The court-appointed trustee, whose name was not disclosed, for Danomat Construcciones SRL's bankruptcy case will verify creditors' proofs of claim until Dec. 6, 2006. Under the Argentine bankruptcy law, the trustee is required to present the validated claims in court as individual reports. A court in Rosario, Santa Fe will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Danomat Construcciones and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. The trustee will also submit a general report that contains an audit of Danomat Construcciones' accounting and banking records. The report submission dates have not been disclosed. The debtor can be reached at: Danomat Construcciones S.R.L. Humberto Primo 1926, Rosario Santa Fe, Argentina DISTRILUM SA: Verification of Proofs of Claim Is Until Feb. 2 ------------------------------------------------------------- Laura Marletta, the court-appointed trustee for Distrilum SA's bankruptcy case, will verify creditors' proofs of claim until Feb. 2, 2007. Ms. Marletta will present the validated claims in court as individual reports on March 16, 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 Distrilum 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 Distrilum's accounting and banking records will follow on May 3, 2007. Ms. Marletta is also in charge of administering Distrilum's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Laura Marletta San Jose de Calasanz 530 Buenos Aires, Argentina EL SUPER: Reorganization Proceeding Concluded --------------------------------------------- El Super de la Construccion SRL's reorganization proceeding has ended. Data published by Infobae on its Web Site indicated that the process was concluded after a court in Santa Fe approved the debt agreement signed between the company and its creditors. FREESCALE: Blackstone-Led Consortium Closes Purchase of Company --------------------------------------------------------------- Freescale Semiconductor disclosed the completion of the merger of the company with an entity controlled by a consortium of private equity funds led by The Blackstone Group and including The Carlyle Group, funds advised by Permira Advisers LLC and Texas Pacific Group. Freescale stock will cease to trade on the New York Stock Exchange at market close and will be delisted. Under the terms of the merger agreement entered into on Sept. 15, 2006, and adopted by Freescale's stockholders at a special meeting on Nov. 13, 2006, Freescale stockholders are entitled to receive US$40 in cash for each share of Freescale common stock that they hold. As soon as possible, a paying agent appointed by Freescale will mail a letter of transmittal and instructions to all stockholders of record. The letter of transmittal and instructions will contain information on how to surrender Freescale common stock in exchange for the merger consideration, without interest and less any applicable withholding tax. Stockholders of record should be in receipt of the letter of transmittal before surrendering their shares. Stockholders who hold shares through a bank or broker will not have to take any action to have their shares converted into cash as such conversions will be handled by the bank or broker. In addition, on Dec. 1, 2006, Freescale completed its tender offers and consent solicitations for its outstanding US$350,000,000 aggregate principal amount of 6.875% senior notes due 2011 and its outstanding US$500,000,000 aggregate principal amount of 7.125% senior notes due 2014, pursuant to its Offer to Purchase and Consent Solicitation Statement, dated Oct. 23, 2006. The tender offers expired at 5:00 p.m. prevailing Eastern time on Nov. 29, 2006. On Dec. 1, 2006, Freescale accepted for payment all validly tendered Notes, consisting of US$349,889,000 in aggregate principal amount of the 2011 Notes, representing approximately 99.97% of the outstanding 2011 Notes, and US$499,935,000 in aggregate principal amount of the 2014 Notes, representing 99.99% of the outstanding 2014 Notes. Upon acceptance, the supplemental indenture executed in connection with the consent solicitations became operative. 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 Semiconductor 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 Semiconductor has operations in Argentina, Brazil and Mexico. * * * As reported in the Troubled Company Reporter on Nov. 7, 2006, Standard & Poor's Ratings Services said that it has kept its ratings, including the 'BB+' corporate credit rating, on Austin, Texas-based Freescale Semiconductor Inc. on CreditWatch with negative implications, where they were placed on Sept. 11, 2006, following the company's announcement that it was considering a business transaction, later confirmed as a leveraged buyout. At the same time, Moody's Investors Service has assigned Freescale Semiconductor a corporate family rating of Ba3 and a speculative grade liquidity rating of SGL-1. SANCOR: Eduardo Eurnekian Balks at Adecoagro Purchase Deal ---------------------------------------------------------- Eduardo Eurnekian, owner of airport concessionaire Aeropuertos Argentina 2000, questioned the agreement inked between Adecoagro and SanCor for the acquisition of a 62.5%stake in the Argentine dairy cooperative. The businessman, who had submitted a bid for SanCor with banker Eduardo Eskenazi -- who publicly complained on the deal last week -- said "there was no professionalism in the way the negotiation was handled." Since SanCor started to look for a capitalist partner, over 60 companies showed interest. Around 15 signed a nondisclosure agreement with Buenos Aires Capital Partners, the agent which managed the process, and only 6 of them submitted bids. SanCor's board chose Adecoagro, a firm owned by Hungarian-American Jonathan Soros, which offered to pay US$120 million (US$70 million to pay off debts and US$50 million for working capital). "We want to be players in the agribusiness. We are interested in not letting the dairy sector in foreign group's hands," said Mr. Eurnekian. "It seems to me that the decision was taken too fast." Although some rumors pointed that Adecoagro would have decided to abandon the talks, Julio Bestani, its CFO, said otherwise: "We are under the 90 days of the exclusivity process with SanCor. We are having meetings constantly with its executives in order to reach to the best agreement." "We do not criticize Adecoagro, but think that the negotiation for SanCor was not proper. It lacks a technical review of the plants, an analysis in a more general context," said Mr. Eurnekian. Adecoagro proposed to SanCor that the cooperatives keep a 37.5% stake of the company, while Eurnekian and Eskenazi's offer will leave shareholders a 25% stake. "Such percentage could grow, in accordance to certain capital increases," pointed Mr. Eurnekian, who proposed to pay US$60 million. Headquartered in Santa Fe, Argentina, Sancor is a diary milk cooperative and one of the largest milk processors and marketers in Argentina. Annual revenues for the fiscal year ended June 2006, are ARUS$1.4 billion. As reported on Oct. 19, 2006, Moody's Investors Service downgraded the ratings of Sancor to Ca from Caa3. The National Scale ratings were downgraded to D.ar from Caa3.ar. Moody's said the outlook is stable. SUPERVIELLE PERSONALES: Moody's Puts Low B Ratings on Securities ---------------------------------------------------------------- Moody's Latin America has assigned a rating of Aaa.ar (Argentine National Scale) and of Ba2 (Global Scale, Local Currency) to the Fixed Rate Debt Securities of Fideicomiso Financiero Supervielle Personales II issued by Deutsche Bank S.A. acting solely in its capacity as issuer and trustee. Moody's also assigned a rating of Aa2.ar (Argentine National Scale) and of B1 (Global Scale, Local Currency) to the Floating Rate Debt Securities. The certificates are not rated by Moody's. The assigned ratings are based on these factors: -- The credit quality of the securitized personal loans; -- The promise to investors, which is timely interest and ultimate principal before legal final maturity; -- Initial credit enhancement of 15% for the Fixed Rate and Floating Rate Debt Securities, provided through subordination; -- The sound origination and servicing standards of Banco Supervielle SA; -- The ability of Deutsche Bank S.A. to act as trustee in this transaction; -- The availability of various reserve accounts; and -- The legal structure of the transaction. The rated securities are payable from the cash flow coming from the assets of the trust, which is an amortizing pool of about 6,620 eligible loans denominated in Argentine pesos, bearing floating and fixed interest rates, originated by Banco Supervielle S.A., in an aggregate amount of ARS29,870,996.26. Moody's has assigned a local currency deposit rating of Aa3.ar in the Argentine National Scale to Banco Supervielle. At closing, about 63.47% of the pool was constituted by personal loans granted to employees of 867 companies that are paid their monthly salaries through Banco Supervielle. In these loans, the monthly loan installment is deducted directly from the borrower's paycheck. The rest of the securitized pool does not have the benefit of the payment deduction feature. Structure Deutsche Bank S.A. (Argentina) SA (issuer and trustee) issued two classes of debt securities (fixed rate and floating rate) and one class of certificates, all denominated in Argentine pesos. The Fixed Rate Debt Securities will bear a fixed interest rate of 10.5%. The Floating Rate Debt Securities will bear a BADLAR interest rate plus 279 basis points. The Floating Rate Debt Securities' interest rate has a ceiling of 18% p.a. and a floor of 10%. Overall credit enhancement is comprised of: -- a total of 15% subordination for the Fixed Rate and Floating Rate Debt Securities; -- various reserve funds; and -- excess spread. The Fixed Rate Debt Securities are expected to be paid off in 8 months. The payment of principal and interest on the Floating Rate Debt Securities has a grace period of 8 months. The Certificates are entitled to receive any remaining cash flow after Fixed Rate and Floating Rate Debt Securities are paid in full. Originator and Servicer Banco Supervielle is the originator and servicer in this transaction. Supervielle is a universal bank holding ARS1.3 billion in deposits. On May 31, 2006, Moody's upgraded Supervielle's Bank Financial Strength Rating (BFSR) to E+ from E, reflecting the management efforts to clean up the balance sheet after the acquisition & the group's franchise strength potential. However the still relatively low BFSR takes into account operative challenges posed by the integration process. Rating Action Originator: Banco Supervielle S.A. -- ARS13,441,500 in Fixed Rate Debt Securities of "Fideicomiso Financiero Supervielle Personales II", rated Aaa.ar; -- ARS11,948,000 in Floating Rate Debt Securities of "Fideicomiso Financiero Supervielle Personales II", rated Aa2.ar Issuer: Fideicomiso Financiero Supervielle Personales II -- Fixed Rate Debt Securities, Assigned Ba2; and -- Floating Rate Debt Securities, Assigned B1 * ARGENTINA: Foreign Debt Remains Large Despite Payoffs -------------------------------------------------------- Argentina's foreign debt to international financial organizations is still substantial, although the country has paid off US$1.44 billion in the first 10 months of 2006, Prensa Latina reports. Prensa Latina underscores that after all the payments, Argentina still owes a total of US$14.3 billion -- US$6.2 billion to the World Bank and US$8.1 billion to the Inter-American Development Bank or IDB. According to Prensa Latina, Argentina has paid off its US$9.55 billion debt to the International Monetary Fund in January. Clarin relates that the US$1.44-billion January to October payouts to IDB and the World Bank were US$726 million on the capital and US$714 million in interests. Prensa Latina emphasizes that Argentina has given US$7.9 billion to the World Bank and IDB since 2002. Meanwhile, Clarin notes that Argentina received US$379 million from the World Bank in the first ten months of 2006. It liquidated US$981 million of capital and paid US$302 million in interest. The Argentine Economy Ministry told Clarin that something similar happened with the IDB, as net payments reached US$536 million, including payments for interest. The 2001 agreements with the World Bank and IDB were for US$18.4 billion, Prensa Latina states. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date Country Ceiling RD Dec. 14, 2005 Long Term IDR B Dec. 14, 2005 Short Term IDR B- Jun. 3, 2005 Local Currency Long Term Issuer Default Rating B Jun. 3, 2005 * ARGENTINA: May Ask Mikhail Gorbachev's Aid on Mill Dispute ------------------------------------------------------------ Published reports say that Argentina is considering asking the help of Mikhail Gorbachev, a former Soviet leader, on a pulp mill dispute with Uruguay. Kerala Next relates that Argentina hoped that Mr. Gorbachev -- the 1990 Nobel Peace Prize laureate who leads a foundation named after him aiming to address major worldwide problems like nuclear arms and environmental protection -- could mediate with Finland, where Botnia Oy, a firm that wants to construct one of the paper mills on river Uruguay, is located. According to Kerala Next, the World Bank agreed to lend Botnia the money to complete the pulp mill. The World Bank believed that the plant would not cause any environmental problem. Argentina has been challenging the pulp mill construction in the International Courts of Justice in The Hague, saying that it could cause environmental damage to the river Uruguay, Kerala Next states. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date Country Ceiling RD Dec. 14, 2005 Long Term IDR B Dec. 14, 2005 Short Term IDR B- Jun. 3, 2005 Local Currency Long Term Issuer Default Rating B Jun. 3, 2005 ============= B E R M U D A ============= ASTERN CAPITAL: Proofs of Claim Must be Filed by Tomorrow --------------------------------------------------------- Astern Capital Ltd.'s creditors are given until tomorrow to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. A final general meeting will be held at the liquidator's place of business on Dec. 28, 2006, at 9:30 a.m., or as soon as possible. Astern Capital'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. Astern Capital's shareholders agreed on Nov. 20, 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, HM DX, Bermuda BRISTOL FINANCE: Tomorrow Is Last Day to File Proofs of Claim ------------------------------------------------------------- Bristol Finance Ltd.'s creditors are given until tomorrow to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. A final general meeting will be held at the liquidator's place of business on Dec. 28, 2006, at 9:30 a.m., or as soon as possible. Bristol Finance'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. Bristol Finance's shareholders agreed on Nov. 20, 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, HM DX, Bermuda CLSA (Bermuda): Proofs of Claim Filing Is Until Tomorrow -------------------------------------------------------- CLSA (Bermuda) Ltd.'s creditors are given until tomorrow to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. A final general meeting will be held at the liquidator's place of business on Jan. 9, 2007, at 9:30 a.m., or as soon as possible. CLSA (Bermuda)'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. CLSA (Bermuda)'s shareholders agreed on Nov. 21, 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, HM DX, Bermuda DECK INTERNATIONAL: Claims Filing Deadline Is Tomorrow ------------------------------------------------------ Deck International Finance Ltd.'s creditors are given until tomorrow to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. A final general meeting will be held at the liquidator's place of business on Dec. 28, 2006, at 9:30 a.m., or as soon as possible. Deck International'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. Deck International's shareholders agreed on Nov. 20, 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, HM DX, Bermuda DOVER INTERNATIONAL: Proofs of Claim Filing Is Until Tomorrow ------------------------------------------------------------- Dover International Holdings Ltd.'s creditors are given until tomorrow to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. A final general meeting will be held at the liquidator's place of business on Dec. 28, 2006, at 9:30 a.m., or as soon as possible. Dover International'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. Dover International's shareholders agreed on Nov. 20, 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, HM DX, Bermuda INTELSAT: Renews China Central's Global Distribution Contract ------------------------------------------------------------- Intelsat Ltd. disclosed that China Central Television or CCTV renewed a multi-year contract for the global distribution of its programming. CCTV is also utilizing Intelsat for its international backhaul transmission of the Asian Games from Doha, Qatar, back to Beijing, which started on Dec. 1 and run through Dec. 15. A long-standing customer since the launch of PAS-2 in 1994, CCTV became the world's first global Mandarin Chinese television service when it expanded its services internationally via the PAS-3 satellite in 1995. Intelsat currently provides full-time program distribution services for CCTV via its PAS-1R Atlantic Ocean Region satellite, PAS-9 Atlantic Ocean Region satellite and PAS-10 Indian Ocean Region satellite. Intelsat also provides CCTV with capacity on its Galaxy 3C satellite for direct-to-home (DTH) services in the United States. This renewal contract also expands CCTV's C- and Ku-band capacity agreement. "With the increased demand for regional programming distribution, CCTV is pleased to continue growing its relationship with Intelsat," said He Zongjiu, Vice President of CCTV. "Intelsat has long partnered with us in the expansion of our services, and we are confident that its network will continue to support us as we develop programming platforms." David Ball, Regional Vice President, Asia-Pacific Sales, said, "We are proud that CCTV has continued to entrust us with the global distribution of its programming, and the Asian Games. As Intelsat expands its global services, we are strategically situated to provide greater power and coverage for China's preeminent national broadcaster. Likewise, Intelsat will be well positioned to offer broadcasters of the 2008 Summer Olympics in Beijing a complete suite of global transmission services." Intelsat, Ltd. - http://www.intelsat.com/-- offers telephony, corporate network, video and Internet solutions around the globe via capacity on 25 geosynchronous satellites in prime orbital locations. Customers in approximately 200 countries rely on Intelsat's global satellite, teleport and fiber network for high-quality connections, global reach and reliability. On June 12, 2006, Moody's Investor Service affirms Intelsat (Bermuda) Ltd.'s ratings: -- New Guaranteed Sr. Notes: Assigned B2, -- New Sr. Notes: Assigned Caa1, and -- Sr. Discount Notes, due 2015: Downgraded to Caa1 from B3 (these notes will be moved to Intelsat Intermediate Holding Company Ltd. Upon closing of the merger). LNR DB: Creditors Have Until Tomorrow to File Proofs of Claim ------------------------------------------------------------- LNR DB European Facilities, Ltd.'s creditors are given until tomorrow to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. A final general meeting will be held at the liquidator's place of business on Dec. 29, 2006, at 9:30 a.m., or as soon as possible. LNR DB'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. LNR DB's shareholders agreed on Nov. 20, 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, HM DX, Bermuda LNR GOLD: Creditors Must File Proofs of Claim by Tomorrow --------------------------------------------------------- LNR Gold European Facilities, Ltd.'s creditors are given until tomorrow to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. A final general meeting will be held at the liquidator's place of business on Dec. 29, 2006, at 9:30 a.m., or as soon as possible. LNR Gold'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. LNR Gold's shareholders agreed on Nov. 20, 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, HM DX, Bermuda PANTHER RE: AM Best Assigns BB Rating on US$144MM Term B Loans -------------------------------------------------------------- A.M. Best Co. has assigned debt ratings of "bbb-" to the Senior Secured Term A Loans of up to US$72 million and "bb" to the Term B Loans of up to US$144 million, both due December 2010 of Panther Re Bermuda Limited, a newly created Bermuda exempted, limited life special purpose Class 3 insurer. The outlook for both ratings is stable. The issuer is a single purpose, dedicated reinsurance vehicle (sidecar) established to provide commercial property reinsurance coverage for specified categories of business to its sole client and cedant, Syndicate 33, a Lloyd's syndicate managed by Hiscox Syndicates Limited (Hiscox). The assigned ratings take into consideration a multitude of factors and conditions including: -- Attachment probability The annualized attachment probability (i.e. the probability of the first dollar loss to the debt facilities) was calculated based upon data compiled by Hiscox using AIR Worldwide Corporation's catastrophe modeling software system, CATRADER V8. Additional simulation testing of historical loss ratios using carefully selected parameters was also conducted on the deal model. The additional loss simulation testing affecting the facilities resulted in cumulative default probabilities that were within acceptable levels to support the assigned debt ratings. -- Cedant's underwriting and risk management capabilities Hiscox maintains a comprehensive system of internal control covering all aspects of risk. Its risk management framework includes a variety of processes to identify, assess and manage the different classes of risk. Hiscox utilizes a risk committee, which monitors the risk management framework, identifies emerging risks and recommends appropriate strategies. Underwriters price the risk based on their professional judgment, market experience and recommendation of Hiscox's independent loss modeling team. Syndicate 33 is required to retain (prior to any third party reinsurance) at least 60% of all gross property catastrophe reinsurance business written in 2007 (50% in 2008), creating an incentive for Syndicate 33 to produce and retain quality business. -- Diversity of business portfolio and perils These are the target business categories: 1. business coded as U.S. catastrophe excess of loss; 2. business coded as European catastrophe excess of loss; 3. business coded as Japanese catastrophe excess of loss; and 4. catastrophe excess of loss (where the predominant exposure is likely to come from the United States, Europe or Japan), which is coded worldwide. The underlying catastrophe excess of loss reinsurance contracts have a term of up to 12 months plus odd time. The issuer is not allowed to accept any other business risk other than what is defined in the Sidecar Quota Share Reinsurance Agreement (quota share agreement) and what is ceded by Syndicate 33. -- Trust accounts Proceeds from the issuance of the loans and equity contributions (net of transaction expenses) will be required to be deposited to an independent trust (collateral trust). The proceeds will be deposited into an eligible bank institution that has a long-term deposit rating that meets or exceeds the minimum pre-established rating threshold. Net premiums due the issuer under the quota share agreement will be dealt with on a funds withheld basis and will be held in Lloyd's Premium Trust Funds (Lloyd's trust) in accordance with the by-laws, rules and regulations made by Lloyd's. The Lloyd's trust and collateral trust (collectively, collateral) will secure the issuer's obligations under the quota share agreement. These obligations include loss payments required to be made by the issuer under the quota share agreement entered into between the issuer and Syndicate 33, expenses and fees of the administrative agent, payments (interest costs) in respect of the debt facilities, operating expenses of the issuer, permitted dividends payments and payments upon wind down of the facilities. -- Collateral requirements and adequacy level Stress testing of both collateral level amounts and aggregate annual losses was conducted to determine whether collateral is sufficient to cover losses. The collateral amount required is a function of the projected in-force premiums and annual aggregate probable maximum loss (PML) associated with the perils. In the event that the target collateral falls below the required amount, the issuer has a right to post additional collateral but is not obligated. To the extent that the issuer does not meet the collateral requirement, the quota share percentage may be scaled back to an appropriate level to meet the collateral requirement. -- Counterparty risk The creditworthiness (ability) of Syndicate 33, which under the quota share agreement, is responsible for making periodic premium payments to the issuer was assessed. Syndicate 33 has a Best's Syndicate Rating of A (Excellent), which is a strong indicator of its ability to manage its obligations. PANTHER RE: Moody's Puts Ba2 Rating on US$144MM Term B Loan ----------------------------------------------------------- Moody's Investors Service has assigned a Baa3 rating to the US$72 million Term A loan and a Ba2 rating to the US$144 million Term B loan of Bermuda-domiciled Panther Re Bermuda Limited. These definitive ratings replace the provisional ratings previously assigned to Panther Re on Nov. 10, 2006. Both term loan facilities will mature in November 2010 and will be held by financial institutions and other institutional lenders. The facilities are secured by the capital stock of Panther Re. The loans are non-amortizing, but allow for voluntary prepayments and require mandatory prepayments under certain circumstances. Under the terms of the facilities, Panther Re's debt obligations are contractually subordinated to the claims of its client. According to Moody's, Panther Re is a limited-life, newly-formed Class 3 Bermuda reinsurer (sidecar) that has entered into a collateralized quota share reinsurance treaty with its sole client, Lloyd's Syndicate 33 (A- Performance Rating), as managed and underwritten by Hiscox Syndicates Limited. Syndicate 33 will cede -- and Panther Re will assume -- 40% of the gross written premiums and losses of Syndicate 33's global property catastrophe excess-of-loss reinsurance book in underwriting year 2007 and up to 50% of the said book in underwriting year 2008. The transaction has received final approval from Lloyd's of London. Initial capitalization for Panther Re will be US$360 million, gross of expenses, comprised of the US$72 million Term A loan, US$144 million Term B loan, and US$144 million of common equity. Panther Re will post its total paid-in capital, net of transaction expenses, as cash and securities into a security trust established for the benefit of Syndicate 33. Further, Panther Re's share of premiums will be held by Syndicate 33 in its Lloyd's Premium Trust Fund, on Panther Re's behalf, consistent with Lloyd's practices. Claims will initially be paid out of the Lloyd's Premium Trust Funds using funds withheld on Panther Re's share of premiums, and then using funds transferred from the security trust. According to Moody's, Panther Re's ratings reflect an analysis of the structural and contractual features of the Panther Re vehicle, including multi-period probabilistic analysis to determine both the probability of loss and expected severity of loss to Panther Re's debt holders and to its sole client, Syndicate 33. The ratings for the term loans are supported by Panther Re's level of capitalization relative to its catastrophe exposure, certain structural characteristics -- particularly as they relate to dividend payouts and return of capital -- that serve to better align the interests of equity and debt investors, and Syndicate 33's good but volatile historical loss experience, which was an important consideration when calibrating Panther Re's catastrophe probability curves. These positive factors are tempered by four elements of the transaction: -- First, the minimum collateral test, as it is currently structured, heightens the possibility of missed interest payments owing to the meaningful amounts of assets which need to be kept in the trust(s) to provide Syndicate 33 with a safeguard against potential adverse loss reserve development. Moody's placed particular emphasis on the minimum collateral test, given that the competing interests of equity holders, debt holders, and the reinsured are played out through that structural feature. -- Second, certain regulatory requirements imposed by Lloyd's may delay the timing of payments to debt holders, the impact of which is made more pronounced because of uncertainty surrounding the exact amount of liabilities that are owed to Syndicate 33 at the time of commutation. -- Third, subsequent reinsurance purchased by Syndicate 33 will not inure to the benefit of Panther Re, although Syndicate 33 is obligated to share with Panther Re information relating to Syndicate 33's reinsurance purchases. If Panther Re decides not to purchase similar reinsurance, this raises the possibility that Panther Re's financial results will not mirror those of Syndicate 33's relevant book of business. -- Last, Panther Re is liable for its proportionate share of unanticipated losses and expenses that arise from any "excess of policy limits awards" or "extra contractual obligations", as well as any additional levies imposed by Lloyd's, underscoring the "follow the fortunes" nature of this reinsurance agreement. Moody's assessment was also impacted by the vehicle's high debt leverage (60% debt to total capital) and parameter risk in the modeling assumptions that form the basis of the company's capitalization. The Ba2 rating for the Term B loan reflects its more junior position in the cash waterfall, as borne out by the modeling results. Panther Re's A3 insurance financial strength rating reflects the creditworthiness of Panther Re with respect to its ability to meet policyholder obligations, which is enhanced by the establishment of a collateral trust for the benefit of its sole client. The ratings contemplate a maximum underwriting period of two years and assume no additional debt above the $216 million term loan facilities. Going forward, the ratings will reflect updated analysis of the cumulative performance of the company, its future overall risk-adjusted capitalization level, and updated probabilistic analysis of its reinsurance portfolio. The current ratings do not anticipate any potential amendments that may be made to the agreements. Any future amendments will be evaluated at that point in time and Moody's will assess the impact on the ratings, if any. These definitive ratings have been assigned with a stable outlook: -- US$72 million Term A loan due November 2010 at Baa3; -- US$144 million Term B loan due November 2010 at Ba2; and -- insurance financial strength at A3. Panther Re Bermuda Limited, based in Bermuda, is a licensed Class 3 reinsurer that has entered into a collateralized quota share reinsurance treaty with its sole client, Lloyd's Syndicate 33, as managed and underwritten by Hiscox Syndicates Limited. SCOTTISH RE: Amends Bank Credit Facility Agreement -------------------------------------------------- Scottish Re Group Limited has executed an amendment to its bank credit facility agreement that permits a payment of up to US$115 million from Scottish Annuity & Life Insurance company (Cayman) Ltd. to Scottish Re Group Limited. The payment was transferred to Scottish Re Group Limited on Dec. 4, 2006. These actions enable the company to repurchase the US$115 million 4.5% convertible notes should the holders elect to exercise their put options. The repurchase will occur on Dec. 6, 2006. Pursuant to the amendment, Scottish Annuity & Life may declare and make dividend payments or other distributions on Dec. 4, 5, or 6, in an amount not to exceed US$115 million, solely for the purpose of permitting Scottish Re Group to make payments required in connection with the exercise of the optional put right by holders of the company's 4.5% senior convertible notes. Scottish Annuity & Life Insurance Co., Scottish Re (Dublin) Ltd., Scottish Re U.S. Inc. and Scottish Re Ltd agreed to put in place irrevocable back-up letters of credit. On Nov. 30, Scottish Annuity & Life and Scottish Re Ltd. entered into a letter agreement with Comerica Bank, pursuant to which Comerica agreed to issue secured backup letters of credit with an aggregate face amount not to exceed US$4.9 million in the case of Scottish Re Ltd. and US$100,000 in the case of Scottish Annuity & Life. On Dec. 1, Comerica issued back-up letters of credit in the amounts of US$78,750 for the account of Scottish Annuity & Life and approximately US$1.4 million for the account of Scottish Re Ltd. Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * On Aug. 21, 2006, Standard & Poor's Ratings Services lowered its counterparty credit rating on Scottish Re Group Ltd. to 'B+' from 'BB+'. Moody's Investor Service downgraded Scottish Re's senior unsecured debt rating to Ba3 from Ba2 due to liquidity issues. A.M. Best Co. has downgraded on Aug. 22, 2006, the financial strength rating to B+ from B++ and the issuer credit ratings to "bbb-" from "bbb+" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). A.M. Best has also downgraded the ICR of Scottish Re to "bb-" from "bb+". AM Best put all ratings under review with negative implications. SCOTTISH RE: Fitch Revises Ratings Outlook to Evolving ------------------------------------------------------ Fitch revised the Rating Watch on Scottish Re Group Ltd.'s ratings to Evolving from Negative, following notification that SCT has successfully amended the bank agreement which allows the transfer of funds from affiliate Scottish Annuity & Life Insurance (Cayman) Ltd. aka SALIC to Scottish Re. On Monday, funds are expected to be transferred to the trustee to repay US$115 million of senior convertible notes that are expected to be put to the company on Dec. 6, 2006. This notification satisfies Fitch's most immediate near-term concern. The ratings being placed on Rating Watch Evolving reflects the pending agreement with MassMutual Capital Partners LLC and Cerberus Capital Management, L.P., which is expected to result in a new equity investment into the company of US$600 million. Fitch expects to review SCT's financial profile as well as business prospects and franchise upon the successful close of the agreement. While Fitch views the agreement and the potential US$600 million investment positively, SCT continues to face business and operating challenges and uncertainties, including the outcome of the shareholder vote. As such, the Rating Watch could be revised positively or negatively or the ratings could be affirmed with a Stable Outlook as the process develops. These ratings were placed on Rating Watch Evolving from Rating Watch Negative: Scottish Annuity & Life Insurance Company (Cayman) Limited -- IFS at 'BBB'. Scottish Re (U.S.) Inc. -- IFS at 'BBB'. Scottish Re Limited -- IFS at 'BBB'. Scottish Re Group Limited -- Issuer Default Rating at 'BB'; -- 4.5% US$115 million senior convertible notes at 'BB-'; -- 5.875% US$142 million hybrid capital units at 'B+'; and -- 7.25% US$125 million non-cumulative perpetual preferred stock at 'B+'. ============= B O L I V I A ============= PETROLEO BRASILEIRO: Caranda Refinery Is Back in Operation ---------------------------------------------------------- Petroleo Brasileiro SA's subsidiary, Petrobras Bolivia, disclosed that after a 26-hour shutdown, production operations were put back online at the Caranda field, in the Santa Cruz de la Sierra department, on Nov. 29, 2006, at 10 a.m. The oil lifting and the gas compression processes are back to normal. It was possible to restart operations after the negotiations between the peasant negotiation commission and the authorities that represented the Ichilo province, the Buena Vista municipality, and the deputy minister of Hydrocarbons were wrapped-up. The activities in the Caranda field, located 100 km north of the city of Santa Cruz de la Sierra, had been suspended for security reasons on Nov. 28, at 6:30 pm, after members of the Buena Vista Single Peasant Central and of nearby communities invaded the facilities. They demanded, among other issues, road pavement, irrigation projects, and cooking gas supply. In spite of the operation shutdown, at no moment was the internal market fuel supply or natural gas exports to Brazil at risk. Daily production at Caranda, operated by Petrobras Bolivia, is 520 barrels of oil and 600,000 cubic meters of gas per day. Gas production is exported to Brazil, while the liquids are processed at the Guillermo Elder Bell refinery, in Santa Cruz. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/-- 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. Petrobras has operations in China, India, Japan, and Singapore. * * * Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: Makes Changes to Executive Staff in January ---------------------------------------------------------------- Petroleo Brasileiro SA aka Petrobras disclosed that, effective Jan. 1, 2007, these changes will be made to its executive staff: -- Alberto Guimaraes, currently Petrobras Energia S.A.'s General Executive Director will take over as the President for Petrobras America Inc. -- Carlos Fontes, currently Petrobras Energia S.A.'s Director for Refining and Petrochemicals, will become the General Executive Director for Petrobras Energia S.A. -- Renato Bertani, currently the Managing Director for Petrobras America Inc., will take over as the Executive Manager for the Americas, Africa, and Eurasia at the international area, at a the company's headquarters. -- Joao Carlos Figueira, currently the Executive Manager for the Americas, Africa, and Eurasia at the company's headquarters will take over as Exploration and Production Director at Petrobras America. Alberto Guimaraes is a career employee at Petrobras' commercial area and has been the General Executive Director for Petrobras Energia S.A. since 2002. During is term at that subsidiary, Petrobras' position was consolidated in the important Argentine market. The company invested upwards of $900 million there, not only in existing operations, but in new projects such as the enhancement of the service station network, the introduction of the podium gasoline in the Argentine market, the increased refining capacity at the San Lorenzo and Bahia Blanca units and, recently, in its first steps and in association with Enersa, in an ambitious offshore exploration plan in the Argentine Sea. Before being assigned to Argentina, he had held several important positions in the company, among which Executive Manager for New Business and Superintendent of the then Commercial Department. Carlos Fontes has been in Argentina since 2004. He is a career chemical engineer at Petrobras and holds an MBA from the Federal University of Rio de Janeiro. Before being assigned to Argentina, he also held important positions, among which Refining Products and Processes Manager, Petrochemical Project Manager, and Executive Petrochemical Manager and President of Petroquisa. Renato Tadeu Bertani is a geology graduate from the Federal University of Rio Grande do Sul and holds a PhD in geology from the University of Illinois, USA. He was first hired by Petrobras in 1976 and has held several technical and managerial positions in Brazil and Abroad. The many positions Bertani held at Petrobras include exploration manager and general manager for the Potiguar Basin, in Rio Grande do Norte, as well as new business manager and Exploration and Production Director for the Petrobras Internacional S.A. Braspetro subsidiary. Abroad, he was the general manager for Petrobras UK Limited. Since 2001, he had been the president of Petrobras America Inc., in charge of growing the exploration and production activities in the American sector of the Gulf of Mexico, in addition to the refining and marketing activities in the American market. Geophysicist Joao Carlos Araujo Figueira is a University of Sao Paulo graduate first hired by Petrobras in 1983. Since then, he has held several technical and managerial positions in the company's international activities. Figueira has had experience in several countries. He was the exploration manager in the United Kingdom, and general manager in Angola. He also reached the position of Exploration and Production Director at Petrobras Internacional (Braspetro), which was incorporated by Petrobras. Mr. Figueira has been the international area's executive manager since it was created in 2000 and where, as of August 2004, he took over as the full executive manager for the Americas, Africa, and Eurasia. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/-- 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. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. * BOLIVIA: Gains Control Over Foreign Energy Firm's Operations -------------------------------------------------------------- Bolivia's President Evo Morales signed contracts on Dec. 3 that gives the government control over the operations of foreign energy companies, completing the nationalization process disclosed on May 1, the Associated Press reports. According to AP, Bolivia's Senate then ratified the contracts. AP relates that with the signing of the contracts, the petroleum sector of Bolivia has been fully nationalized. Royal Dutch Shell PLC, in particular, had agreed to transfer majority control of Transredes -- its Bolivian unit that runs the largest network of gas pipelines in the country -- to the Bolivian government, AP says, citing President Morales. President Morales told AP, "We thank the Bolivian people who have struggled to recover their natural resources. We have now completed the first step. This process will continue next year with the recovery of other natural resources benefiting the Bolivian people." President Morales said he will nationalize the mining sector, AP notes. Meanwhile, lawmakers from President Morales' Movement Toward Socialism party passed a land-reform bill and an open-ended military cooperation pact with Venezuelan President Hugo Chavez. It ended a boycott by conservative lawmakers who wanted to block Morales' reforms, AP states. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 * BOLIVIA: Launches Tender Process for Dam Construction ------------------------------------------------------- Empresa Misicuni, the state water distribution firm of Bolivia, said in a press statement that it has launched a tender process to hire a supervising company for the construction of the Misicuni dam. Business News Americas relates that the tender is the first step of the Misicuni project's second phase. Construction works will be launched in April 2007 and will conclude in 2010. According to BNamericas, the tender process is open to domestic and international companies and consortiums, who will have until Jan. 5, 2007, to submit enquiries regarding the tender rules. Officials will answer the questions on Jan. 8. Bids will then be submitted on Jan. 22, 2007, with officials of Empresa Misicuni reviewing the offers on the same day. Bidders will be required to meet with a number of specifications and technical parameters set by: -- the Andean Development Corporation, -- the Italian government, -- the national treasury, and -- the local government, all of which are taking part in financing the project. The report says that the winning bidder will be responsible for conducting complementary studies on the 120-meter high dam and updating the project's environmental impact study. BNamericas underscores that the dam will be situated in Cochabamba to help meet potable water and irrigation needs in that department. Officials expect to generate electric power with the project, BNamericas states. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 =========== B R A Z I L =========== BANCO BRADESCO: Joins Corporate Sustainability Index on Bovespa --------------------------------------------------------------- Banco Bradesco said in a statement that it has been listed in the Indice de Sustentabilidade Empresarial -- the corporate sustainability index on Bovespa, the Sao Paulo stock exchange. Business News Americas relates that Indice de Sustentabilidade lists 34 firms traded on Bovespa. Indice de Sustentabilidade is selected from Bovespa's 150 most liquid stocks that indicate a commitment to social responsibility, BNamericas reports. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services maintained the 'BB+' ratings on both of Banco Bradesco SA's foreign and local currency counterparty credit rating, however it changed the ratings outlook to positive from stable on both ratings: -- Foreign currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Local currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Brazil national scale rating * to brAA+/Positive/brA-1 from brAA+/Stable/brA-1 This is in connection with Standard & Poor's revised outlook on its long-term foreign and local currency ratings on 16 Brazilian entities to positive from stable, following the revision of the foreign and local currency rating outlooks on the Federative Republic of Brazil. BANCO BRADESCO: Unit Eyes BRL10-Billion Revenues for 2006 --------------------------------------------------------- Marco Antonio Rossi -- chief executive officer of Bradesco Vida e Previdencia, a subsidiary of Banco Bradesco -- told Business News Americas that the company expects revenues to increase 25% to BRL10 billion in 2006, compared with 2005. Bradesco Vida's revenues were up 25% to BRL6 billion from January to September 2006, compared with the same period in 2005, BNamericas says, citing Mr. Rossi. Private pension plans reported BRL5 billion in revenues in the first nine months of 2006, while life products had BRL1 billion revenues. Mr. Rossi told BNamericas, "November and December are very special months and we expect revenues to rise at the same rate of 25%." Mr. Rossi said that many people invest their bonuses in retirement savings instruments. Under the Brazilian law, formal sector workers receive a year-end bonus equal to one month's pay. The report says that Vida Gerador de Beneficios Livres or VGBL -- a combination of life insurance and survivors' benefit contracts -- receive 60% of the company's private pension contributions. In this plan, contributors can make monthly deposits and can withdraw assets upon retirement or before. It is a combination of life insurance and survivors' benefit contracts. VGBL plans are aimed at taxpayers who file simplified returns Meanwhile, Plano Gerador de Beneficios Livres or PGBL get 35% of the firm's private pension contributions. PGBL is a plan generator of benefits. It is a private pension plan created in 1997 and inspired in the American 401-K. PGBL plans are for those who file itemized returns, BNamericas notes. BNamericas emphasizes that VGBL and PGBL plans hold savings in investment funds and only allow withdrawals under penalty. Contributions to traditional plans that predate the 2002 introduction of VGBL and PGBL plans came to 5%. Bradesco Vida will launch in the first half of 2007 a flexible-premium life product with a savings element, similar to universal life policies in the United States, BNamericas says, citing Mr. Rossi. Mr. Rossi told BNamericas that the life division is developing new products that focus on the increase in terminal illnesses like Alzheimer's and diabetes, as Brazil's population grows older. BNamericas underscores that Bradesco Vida had an investment portfolio of BRL43 billion in September 2006 with pension plans accounting for BRL41 billion. Bradesco Vida managed in September 2006 5 million life policies -- both corporate and individual -- and 2 million private pension plans. The company pays benefits to 15,000 retirees, BNamericas states. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services maintained the 'BB+' ratings on both of Banco Bradesco SA's foreign and local currency counterparty credit rating, however it changed the ratings outlook to positive from stable on both ratings: -- Foreign currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Local currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Brazil national scale rating * to brAA+/Positive/brA-1 from brAA+/Stable/brA-1 This is in connection with Standard & Poor's revised outlook on its long-term foreign and local currency ratings on 16 Brazilian entities to positive from stable, following the revision of the foreign and local currency rating outlooks on the Federative Republic of Brazil. BANCO BRADESCO: Unit Won't Sell Individual Health Portfolio ----------------------------------------------------------- Marcio Cypriano, Banco Bradesco's chief executive officer, told reporters that the bank's insurance division won't sell its individual health portfolio, despite an increasing focus on corporate plans. Mr. Cypriano explained to Business News Americas, "We're not going to leave any business area. We have to increase our client base." BNamericas relates that individual policies made up 22% of Banco Bradesco's health portfolio as of September 2006, compared with the 50% recorded 10 years ago. According to BNamericas, some local insurers have decreased their individual health portfolios or sold them off in the past few months. Marco Antonio Rossi -- chief executive officer of Bradesco Vida e Previdencia, a subsidiary of Banco Bradesco -- told BNamericas that the insurance group always analyzed acquisition opportunities but had nothing in sight. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services maintained the 'BB+' ratings on both of Banco Bradesco SA's foreign and local currency counterparty credit rating, however it changed the ratings outlook to positive from stable on both ratings: -- Foreign currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Local currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Brazil national scale rating * to brAA+/Positive/brA-1 from brAA+/Stable/brA-1 This is in connection with Standard & Poor's revised outlook on its long-term foreign and local currency ratings on 16 Brazilian entities to positive from stable, following the revision of the foreign and local currency rating outlooks on the Federative Republic of Brazil. BANCO NACIONAL: Lends US$400 Million for Infrastructure Works ------------------------------------------------------------- Published reports say that Banco Nacional de Desenvolvimento Economico e Social has lent US$400 million for infrastructure works for South American nations. Business News Americas relates that the US$400 million is 33% higher than the US$300 million in infrastructure funding Banco Nacional disbursed in 2005. Luiz Antonio Dantas, Banco Nacional's foreign trade authority, told BNamericas that the bank has become an important source of credit for Brazilian exports in terms of engineering and construction goods and services in South America. According to BNamericas, the funding Banco Nacional provided is for works carried out by Brazilian companies in the rest of South America. Banco Nacional has become one of the main credit sources for the South American integration initiative IIRSA, which involves construction of 300 highways and bridges, among other works. BNamericas underscores that the funding of infrastructure works included the cost of exporting Brazilian goods like cement. Celso Amorim -- the foreign minister of Brazil -- and his counterparts discussed at the South American foreign ministers meeting recently held in Chile financial opportunities and the importance of infrastructure connectivity. The minister urged Brazilian companies and entities to increase their operations and investment to the rest of the South American region, BNamericas states. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook on both of Banco Nacional de Desenvolvimento Economico e Social SA's foreign and local currency counterparty credit ratings: -- Foreign currency counterparty credit rating * to BB/Positive/-- from BB/Stable/-- -- Local currency counterparty credit rating * to BB+/Positive/-- from BB+/Stable/-- This is in connection with Standard & Poor's revised outlook on its long-term foreign and local currency ratings on 16 Brazilian entities to positive from stable, following the revision of the foreign and local currency rating outlooks on the Federative Republic of Brazil. BANCO NACIONAL: South American Export Funding at US$5.8B in 2006 ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social said in a statement that it expects export financing operations to South American nations to be up to US$5.80 billion this year. Business News Americas relates that new Banco Nacional loans for Brazilian exports in South America increased 28% to US$4.50 billion in the first 10 months of 2006, from the same period in 2005. According to BNamericas, Banco Nacional will have lent US$400 million for infrastructure works in other South American countries at the end of 2006, which will be about 33% higher than the US$300 million recorded in 2005. Banco Nacional ratified last week US$690 million in financing for goods and services for gas pipeline projects in Argentina, BNamericas states. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook on both of Banco Nacional de Desenvolvimento Economico e Social SA's foreign and local currency counterparty credit ratings: -- Foreign currency counterparty credit rating * to BB/Positive/-- from BB/Stable/-- -- Local currency counterparty credit rating * to BB+/Positive/-- from BB+/Stable/-- This is in connection with Standard & Poor's revised outlook on its long-term foreign and local currency ratings on 16 Brazilian entities to positive from stable, following the revision of the foreign and local currency rating outlooks on the Federative Republic of Brazil.1 BRASKEM SA: Board of Directors Mulling Debenture Cancellation ------------------------------------------------------------- Braskem SA's board of directors agreed in a meeting on Nov. 29 to consider the cancellation of debentures from the 12th issuance held in treasury. The board of executive officers had sought the directors' approval to cancel 1,500 debenture of the 12th Issuance of Debenture of Braskem. Braskem -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. * * * Standard & Poor's Ratings Services assigned on Sept. 22, 2006, its 'BB' senior unsecured debt rating to the proposed up to US$275 million bonds due Jan. 2017 to be issued by Brazil-based petrochemical company Braskem S.A. (BB/Stable/--). The bonds will rank pari passu with the company's other senior unsecured notes. Fitch assigned on Sept. 20, 2006, a rating of 'BB+' to Braskem S.A.'s proposed issuance of US$275 million senior unsecured notes due to 2017. The notes are being offered under Rule 144A Regulation S. The proceeds of the offering are expected to be used to prepay existing debts and extend debt maturities. Fitch also maintains foreign currency and local currency Issuer Default Ratings of 'BB+' and a national scale rating of 'AA(bra)' for Braskem. Fitch said the Rating Outlook is Stable. COMPANIA ENERGETICA: S&P Ups Corp. Credit Rating to B- from CCC+ ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on electricity generator Companhia Energetica de Sao Paulo and the ratings on several of Companhia Energetica de Sao Paulo's debt issues to 'B-' from 'CCC+'. At the same time, Standard & Poor's raised its Brazil national scale ratings on Companhia Energetica de Sao Paulo and several of the company's issues to 'brBB' from 'brCCC+'. The outlook is positive on both scales. The upgrade mirrors the improvement in the company's financial risk profile after its capitalization of BRL3.2 billion in mid-2006, which the company used to prepay several debts and thus reduce overall debt by approximately BRL2.2 billion, coupled with the company's refinancing efforts to deal with 2006 debt maturities at favorable terms and costs. The positive outlook reflects the potential for an upgrade after the refinancing of the company's significant maturities in the next two years. "While our projected financial measures for Companhia Energetica de Sao Paulo would still be relatively weak for the 'B' category, we would consider an upgrade if the company is able to resolve these maturities under favorable conditions: a long and amortizing repayment schedule, and lower cost of debt," said Standard & Poor's analyst Juliana Gallo. "In this scenario, and if the company manages to report FFO to total debt and FFO interest coverage above 10% and 2x, respectively, the ratings could be raised. The ratings would stabilize or come under negative pressure if Companhia Energetica de Sao Paulo refinancing strategy fails and/or if the company's financial ratios weaken," said Ms. Gallo. COMPANHIA PARANAENSE: Remains on Bovespa's Sustainability Index --------------------------------------------------------------- Companhia Paranaense de Energia aka Copel has been retained in the Bovespa's Corporate Sustainability Index or ISE. The new portfolio has become effective on Dec. 1, 2006, and will remain valid for one year. The ISE is designed to measure the return on a portfolio composed of shares of companies that are highly committed to social responsibility and corporate sustainability, and also to promote good practices in the Brazilian corporate environment, considering such aspects as corporate governance, economic efficiency, environmental balance and social justice. The criteria for inclusion in the index are: a. to be among the 150 most-traded shares, measured in the twelve months prior to the portfolio reevaluation; b. to have a trading session presence of at least 50%, measured in the twelve months prior to the portfolio reevaluation; and c. to meet the sustainability criteria in the annual questionnaire. Companies that completed the questionnaire last year were reassessed this year using the same methodological procedures and criteria. Copel's shares were selected for the first edition of the index (2005) and were retained this year. In 2006, the firms comprising the ISE outperformed the Ibovespa. Once again, Copel has been given due recognition for its commitment to sustainable development not only by the Bovespa, but also by ABRADEE, who granted it the 2006 Social Responsibility Award. Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/-- transmits and distributes electricity to more than 3 million customers in the state of Paran and has a generating capacity of nearly 4,600 MW, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitly postponed. In response, COPEL is re-evaluating its corporate structure. The government of Parana controls about 59% of COPEL. * * * Copel's BRL100,000,000 debentures due March 1, 2007, is rated Ba3 by Moody's. LUCENT TECH: Alcatel-Lucent Creates Unit to Serve US Clientele -------------------------------------------------------------- Alcatel-Lucent, the company formed by Alcatel and Lucent Technologies' merger, disclosed the creation of LGS, an independent subsidiary that will be completely dedicated to serving the U.S. government community. LGS, headquartered in Vienna, Va., will be created by joining employees from Lucent's Government Solutions business unit, Alcatel Government Solutions, Inc., and Lucent's Bell Labs Government Communications Lab. LGS will become the sole sales and contracting channel for all classified and unclassified business contracted from U.S. federal agencies and departments, both military and civilian. LGS is currently finalizing its operational structure and processes, which are planned for completion in early January. LGS will have its own leadership team as well as its own board of directors, initially including three previous members of the national security community: -- William Perry, former Secretary of Defense, -- James Woolsey, former director of Central Intelligence and -- Kenneth Minihan, former director of the National Security Agency. LGS will be led by Ron Iverson, CEO, who recently joined Lucent from Northrop Grumman where he was responsible for coordination of Air Force marketing and business development dealing with Information Technology. Prior to Northrop Grumman, Ron was in the Senior Executive Service with Defense Security Service as the Deputy Director for Industrial Security. Dave Bishop, formerly the President of Lucent's Bell Labs Government Research and Security Solutions, will be the LGS COO/CTO. About LGS LGS will design and deliver Transformed Communications and R&D-based technology solutions to the U.S. government community. About Alcatel-Lucent Alcatel-Lucent provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With 79,000 employees and operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. Alcatel-Lucent achieved proforma combined revenues of EUR18.6 billion in 2005, and is incorporated in France, with executive offices located in Paris. About Lucent Technologies Headquartered in Murray Hill, New Jersey, Lucent Technologies (NYSE: LU) -- http://www.lucent.com/-- designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. Lucent also operates in Austria, Belgium, China, Czech republic, Denmark, France, Germany, India, Ireland, Japan, Korean, Brazil, CIS, the Netherlands, Poland, Slovak Republic, Spain, Sweden, Switzerland, Russia, and the United Kingdom. * * * As reported on Nov. 9, 2006, Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. According to Troubled Company Reporter on April 7, Moody's Investors Service placed Lucent Technologies, Inc.'s B1 corporate family rating, B1 senior unsecured rating, B3 subordinated rating, and B3 trust preferred rating under review for possible upgrade following the company's announcement of a definitive merger agreement with Alcatel. METROLOGIC INSTRUMENTS: Moody's Assigns B2 Corp. Family Rating -------------------------------------------------------------- Moody's Investors Service has assigned a B2 corporate family rating to Metrologic Instruments, Inc. At the same time, Moody's assigned a B1 rating to the proposed 1st lien senior secured credit facility (US$125 million term loan and US$35 million undrawn revolver) and a Caa1 rating to the proposed US$75 million 2nd lien senior secured credit facility. The ratings for the two senior secured facilities reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B2, and a loss given default of LGD 3 for the first lien and LGD 5 for the second lien. The rating outlook is stable. Proceeds from the new credit facility together with an equity contribution of preferred and common stock and cash on hand will be used to fund the roughly US$475 million acquisition of Metrologic by Francisco Partners and to refinance Metrologic's existing debt. Metrologic's ratings are constrained by the high debt levels that are being assumed to fund the leverage recapitalization, the recent sale of Adaptive Optics Associates, Inc., which represented approximately 15% of the company's revenue in 2005, modest scale (revenue for the LTM ended September 30, 2006 approximated US$210 million), and ongoing litigation issues. The ratings are also constrained by the company's limited financial flexibility as all assets are secured by both the first and second lien. Metrologic's credit profile benefits from its customer and geographic diversification, it's strong, albeit softening, operating margins and increasing market share. The ratings are also supported by the company's history of organic growth, low cost manufacturing position and modest capital requirements. The B1 rating of the first lien senior secured credit facility reflects an LGD 3 loss given default assessment as this facility is secured by a pledge of all of the company's assets and there is a significant amount (38%) of second lien debt below it. The Caa1 rating of the second lien reflects an LGD 5 loss given default assessment given that it is contractually subordinated to the first lien. Both the first lien and second lien benefit from the full guarantees of existing and future domestic subsidiaries and 2/3 stock pledge of foreign subsidiaries. The final credit agreement is anticipated to contain customary limitations, an excess cash flow sweep (subject to financial performance measures) varying from none to 50% and financial covenants governing maximum leverage and minimum interest coverage. The final credit agreement is also expected to restrict additional indebtedness, dividends, investments, liens, asset sales, affiliate transactions, and mergers and acquisitions. The ratings assume covenant levels for the first lien facilities, when finalized, will give the company appropriate covenant leeway. The stable outlook reflects Moody's expectation that Francisco Partners views the preferred stock akin to common equity and that it has no intention of redeeming the preferred stock prior to the maturity of both the first and second lien facilities; the preferred stock hybrid instrument is analytically viewed by Moody's as 50% debt like and 50% equity like as the instrument has no stated maturity, but is redeemable upon certain events occurring. The outlook also reflects Moody's belief that the merged company will continue to generate operating margins supportive of the ratings and will generate growth in sales and free cash flow through new product introductions, penetration of new markets, low cost manufacturing position, and working capital control. The stable outlook also assumes that the company's financial leverage, as measured by adjusted debt/EBITDA, will improve steadily from the current pro-forma 7.8x for the LTM ended September 2006 (Moody's expects the company's pro-forma debt/EBITDA to approximate a little over 7x for 2006) in the medium term and that the company will sustain strong operating margins even if the ongoing legal disputes linger. These ratings/assessments were assigned: -- Corporate Family Rating, rated B2; -- Probability of default rating, rated B2; -- US$35 Million Revolving Credit Facility, rated B1 (LGD3, 33%); -- US$125 Million Senior Secured First Lien Term Loan, rated B1 (LGD3, 33%); and -- US$75 Million Senior Secured Second Lien Term Loan, rated Caa1 (LGD5, 84%). Headquartered in Blackwood, New Jersey, Metrologic Instruments, Inc. is a global supplier for data capture and collection hardware, and image processing software. The company had LTM September 2006 revenues of approximately US$210 million. The company has operations in Brazil and Mexico. NET SERVICOS: Extraordinary Shareholders Meeting Set for Dec. 14 ---------------------------------------------------------------- Net Servicos de Comunicacao SA's shareholders will convene for an Extraordinary Shareholders' Meeting, at 11:00 a.m. on Dec. 14, 2006, at company's headquarters at: Rua Verbo Divino Sao Paulo, Brazil These agendas will be taken during the meeting: 1) ratify the increase of the company's capital stock approved by the shareholders at the Extraordinary Shareholders' Meeting held on Oct. 30, 2006, from BRL3,548,541,327.17 to BRl4,085,564,727.29, resulting from the issuance of 1,355,713 common and 23,010,140 preferred shares, all non-par, registered, book-entry shares; 2) amend the wording of the caput of article 5 of the company's Bylaws to reflect the ratifications of the company's capital stock increases; and 3) consolidate the company's Bylaws. Shareholders whose shares are in the physical custody of the Stock Exchange who wish to participate in this ESM should present a statement issued by Dec. 13, 2006, detailing their respective share ownership, provided by the custodian body. Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao -- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1-- is the largest subscriber TV multi-operator in Brazil, as it operates the NET brand in major cities, including operations in the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre. NET also offers Broadband InterNet services through its NET VIRTUA brand name. * * * Moody's America Latina assigned on May 22, 2006, a Baa2.br Brazilian National Scale Rating and a B1 Global Local Currency Rating to Net Servicos de Comunicacao S.A.'s BRL650 million debentures due in 2011 issued in September 2005. Concurrently, Moody's Investors Service affirmed Net's B1 global local currency scale corporate family rating. Moody's said the ratings outlook is stable. * * * As reported in the Troubled Company Reporter on Nov. 8, 2006, Standard & Poor's Rating Services assigned its 'BB-' senior unsecured debt rating to the proposed perpetual bonds (up to US$150 million) to be issued by Brazil's largest cable pay-TV operator, Net Servicos de Comunicacao S.A. The proceeds will be used primarily to fund additional investments in the company's network and digital services. NET's total debt amounted to BRL650 million (approximately US$300 million) in September 2006. NOVELIS INC: S&P Affirms BB- Corporate Credit Rating ---------------------------------------------------- Standard & Poor's Ratings Services it affirmed all of its ratings on Novelis Inc., including the 'BB-' long-term corporate credit rating, and removed the ratings from CreditWatch with negative implications, where they were placed April 7, 2006. The outlook is negative. "The ratings were removed from CreditWatch after the company's risk of technical default abated with the filing of Novelis' third-quarter 2006 financial statements," said Standard & Poor's credit analyst Donald Marleau. "On the other hand, the negative outlook stems from the elevated financial risk Novelis faces over the next year or two as it aims to restore its cash flow and remediate its financial systems and reporting, especially its risk management techniques related to commodity metals exposure," Mr. Marleau added. The ratings on Novelis reflect its aggressive financial profile, characterized by a heavy debt burden and low margins that have proven to be less stable than expected when the company began stand-alone operations in January 2005 after Alcan Inc. (BBB+/Stable/A-2) spun off substantially all of its aluminum rolling businesses. Nevertheless, Standard & Poor's expects the company will take the necessary steps to mitigate the cause of its surprising margin volatility, and it should return to increasingly stable profitability in 2007 and 2008. In addition, Novelis' credit risk has been exacerbated by significant financial reporting and risk management failings through 2006 that resulted in two earnings restatements, delayed filings and associated covenant breaches, a material deviation from expected cash flow generation, and the resignation of top managers. These weaknesses are alleviated by the company's leading position in the global aluminum rolled products market, extensive geographic and product diversity, and good market conditions for its products. Novelis uses primary and recycled aluminum to produce can sheet for sale to beverage producers and can fabricators; various rolled products for construction, industrial, and transportation uses; and foil for packaging. Novelis benefits from a scale and scope of operations that lead this market, which is typified by the capital intensity and associated economies of scale of production facilities, as well as long-standing customer relationships based on a fairly high degree of product precision and innovation. The outlook is negative. Novelis will face pressure on its credit quality for several more quarters, caused by unproven hedging strategies implemented to shore up its cash flow and reduce debt, as well as higher interest expenses through at least the first quarter of 2008, stemming from amendments on its senior secured credit facilities. Deterioration of credit measures could result in further pressure from its lenders and the continuation of disproportionately high financial costs. Should the combination of hedging strategies and changes to its sales contracts not effectively reduce its exposure to commodity metals prices in the next 12 to 18 months, such that the stability of its cash flow and the pace of debt reduction do not improve, the ratings will be lowered. Nevertheless, Novelis' profitability and cash flow are expected to recover through 2007 and 2008, as the company better matches its internal and external hedges to its commodity metals exposure. Should this occur, the outlook will be revised to stable. Continued debt reduction in the next several years could put upward pressure on the ratings, as the company's capital structure better corresponds with its satisfactory business risk. Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has around 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. Novelis South America operates two rolling plants and primary production facilities in Brazil. The company's Pindamonhangaba rolling and recycling facility in Brazil is the largest aluminum rolling and recycling facility in South America and the only one capable of producing can body and end stock. The plant recycles primarily used beverage cans, and is engaged in tolling recycled metal for its customers. TAM SA: Incorporated to Brazilian Sustainability Index ------------------------------------------------------ TAM SA has integrated into the Brazilian index of corporate sustainability or ISE from Dec. 1, 2006, through Nov. 30, 2007. There are 43 shares issued by 34 companies from 14 industries, totaling BRL700.7 billion in market value. The amount corresponds to 48.5% of BOVESPA's total capitalization, currently at BRL1.4 trillion. The participants of the new index's portfolio were selected among 60 companies that answered a questionnaire developed by the Sustainability Center from Fundacao Getulio Vargas (FGV). The questionnaire was sent to the 150 listed companies with the 120 most liquid shares at BOVESPA. Entrance into the ISE is a result of the constant pursuit to address environmental and social issues present in the modern world. Besides entering the ISE, TAM is already part of Em Boa Companhia da BOVESPA, which gathers social environmental responsibility projects by BOVESPA-listed companies. TAM SA -- http://www.tam.com.br/-- operates regular flights to 47 destinations throughout Brazil. It serves 72 different cities in the domestic market through regional alliances. Additionally, it maintains code-share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. The program has over 3.3 million subscribers and has awarded more than 3.6 million tickets. * * * Fitch assigned on Aug. 8, 2006, foreign currency and local currency Issuer Default Ratings of 'BB' to TAM SA. Fitch has also assigned a national scale rating of 'A+' (bra)' to TAM. Fitch said the rating outlook is stable. =========================== C A Y M A N I S L A N D S =========================== GOLDENTREE CREDIT: Proofs of Claim Must be Filed by Dec. 14 ----------------------------------------------------------- Goldentree Credit Opportunities II, Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: John Cullinane Derrie Boggess c/o Walkers SPV Limited P.O. Box 908, George Town Grand Cayman, Cayman Islands Tel: (345) 914-6305 Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Goldentree Credit's shareholders agreed on Oct. 13, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. MEDICI OFFSHORE: Last Day for Proofs of Claim Filing Is Dec. 14 --------------------------------------------------------------- Medici Offshore Healthcare Fund, Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Linburgh Martin John Sutlic P.O. Box 1034, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Medici Offshore's shareholders agreed on Nov. 1, 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: Thiry Gordon Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 MUIR CAPITAL: Last Day to File Proofs of Claim Is on Dec. 14 ------------------------------------------------------------ Muir Capital, Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: Bart Cocales c/o 1100 112th Avenue, NE Suite 340, Bellevue Washington, 98004, USA Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Muir Capital's shareholders agreed on Oct. 31, 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: Ogier Attn: Julie O'Hara P.O. Box 1234, George Town Grand Cayman, Cayman Islands Tel: (345) 949 9876 Fax: (345) 949 1986 OAKWOOD ONE: Deadline for Proofs of Claim Filing Is on Dec. 14 -------------------------------------------------------------- Oakwood One World International Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: John Cullinane Derrie Boggess c/o Walkers SPV Limited P.O. Box 908, George Town Grand Cayman, Cayman Islands Tel: (345) 914-6305 Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Oakwood One's shareholders agreed on Nov. 2, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. O'CONNOR (MASTER): Proofs of Claim Must be Submitted by Dec. 14 --------------------------------------------------------------- O'Connor System Trading Master Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Stuart Sybersma Ian Wright P.O. Box 1787, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. O'Connor System's shareholders agreed on Nov. 1, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Nicole Ebanks Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Tel: (345) 949 7500 Fax: (345) 949 8258 O'CONNOR SYSTEM: Last Day to File Proofs of Claim Is on Dec. 14 --------------------------------------------------------------- O'Connor System Trading Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Stuart Sybersma Ian Wright P.O. Box 1787, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. O'Connor System's shareholders agreed on Nov. 1, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Nicole Ebanks Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Tel: (345) 949 7500 Fax: (345) 949 8258 OGOT COMPANY: Proofs of Claim Filing Deadline Is Set for Dec. 14 ---------------------------------------------------------------- Ogot Company's creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: Tammy Seymour dms Corporate Services Ltd. Ansbacher House, 2nd Floor #20 Genesis Close P.O. Box 31910SMB, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Ogot Company's shareholders agreed on Oct. 31, 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: Angela Nightingale dms Corporate Services Ltd. Ansbacher House, P.O. Box 31910 SMB Grand Cayman, Cayman Islands Tel: (345) 946 7665 Fax: (345) 946 7666 PENDRAGON (EXCALIBUR): Proofs of Claim Must be Filed by Dec. 14 --------------------------------------------------------------- Pendragon (Excalibur) Fund Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Linburgh Martin John Sutlic P.O. Box 1034, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Pendragon (Excalibur)'s shareholders agreed on Oct. 17, 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: Thiry Gordon Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 PENDRAGON (MERLIN): Last Day to File Proofs of Claim Is Dec. 14 --------------------------------------------------------------- Pendragon (Merlin) Fund Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Linburgh Martin John Sutlic P.O. Box 1034, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Pendragon (Merlin)'s shareholders agreed on Oct. 17, 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: Thiry Gordon Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 RANGER (NON ENHANCED): Claims Submission Deadline Is on Dec. 14 --------------------------------------------------------------- Ranger Multi-Strategy Non Enhanced Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Linburgh Martin John Sutlic P.O. Box 1034, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Ranger Multi-Strategy's shareholders agreed on Oct. 16, 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: Thiry Gordon Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 RANGER MULTI-STRATEGY: Proofs of Claim Filing Is Until Dec. 14 -------------------------------------------------------------- Ranger Multi-Strategy, LLC's creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Linburgh Martin John Sutlic P.O. Box 1034, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Ranger Multi-Strategy's shareholders agreed on Oct. 16, 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: Thiry Gordon Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 TAHOMA MASTER: Creditors Must File Proofs of Claim by Dec. 14 ------------------------------------------------------------- Tahoma Master Fund, Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: Bart Cocales c/o 1100 112th Avenue, NE Suite 340, Bellevue Washington, 98004, USA Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Tahoma Master's shareholders agreed on Oct. 31, 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: Ogier Attn: Julie O'Hara P.O. Box 1234, George Town Grand Cayman, Cayman Islands Tel: (345) 949 9876 Fax: (345) 949 1986 TRITON FUND: Deadline for Filing Proofs of Claims Is Dec. 14 ------------------------------------------------------------ Triton Fund SPC's creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Linburgh Martin John Sutlic P.O. Box 1034, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Triton Fund's shareholders agreed on Aug. 8, 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: Thiry Gordon Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 WIMBLEDON MARATHON: Filing of Proofs of Claim Is Until Dec. 14 -------------------------------------------------------------- Wimbledon Marathon Fund Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: Q&H Nominees Ltd. Third Floor, Harbour Centre P.O. Box 1348 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Wimbledon Marathon's shareholders agreed on Oct. 9, 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: Quin & Hampson c/o P.O. Box 1348 Grand Cayman, Cayman Islands Tel: (+1) 345 949 4123 Fax: (+1) 345 949 4647 WIMBLEDON (MASTER): Claims Filing Deadline Is Set for Dec. 14 ------------------------------------------------------------- Wimbledon Marathon Master Fund Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: Q&H Nominees Ltd. Third Floor, Harbour Centre P.O. Box 1348 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Dec. 14 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Wimbledon Marathon's shareholders agreed on Oct. 9, 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: Quin & Hampson c/o P.O. Box 1348 Grand Cayman, Cayman Islands Tel: (+1) 345 949 4123 Fax: (+1) 345 949 4647 =============== C O L O M B I A =============== AES CHIVOR: S&P Places B+ Ratings on Positive Watch --------------------------------------------------- Standard & Poor's Ratings Services placed its 'B+' ratings on Colombian power generator AES Chivor & Cia. SCA ESP on CreditWatch with positive implications, reflecting the potential improvement of Chivor's financial risk profile, after an announcement by the Colombian energy and gas regulation commission regarding the assignment of "firm energy" to Colombian power generators, which is used to calculate the reliability charge for the period from December 2006 to November 2009. "We project that Chivor's capacity revenues will increase from about US$17 million per year to at least US$30 million per year in the 2007-2009 period, which would result in a further improvement of projected debt service coverage ratios," said Standard & Poor's credit analyst Sergio Fuentes. "We will resolve the CreditWatch listing after completing a detailed analysis of the company's projected cash flow generation, capital expenditures plan, and dividend policy for the next five years," said Mr. Fuentes. The B+ ratings on Chivor reflect the challenges of operating in the highly competitive and largely hydro-based Colombian electricity system as well as the company's relatively volatile cash flow generation. These weaknesses are partly offset by the company's sizable portfolio of short- and medium-term power sales contracts, most of which are with local electric distribution companies at a fixed price in Colombian pesos and indexed by local inflation. In addition, Chivor benefits from low variable power generation cost, a relatively large dam, and favorable hydrology in its region. ECOPETROL: Talking with Jamaica on Compressed Natural Gas Supply ---------------------------------------------------------------- Ecopetrol, the state-owned oil firm of Colombia, is negotiating with Jamaica to supply compressed natural gas, the Jamaica Gleaner reports. The Gleaner relates that Jamaica has been negotiating with firms for the supply of the gas. According to The Gleaner, a Canadian firm in alliance with Raymond Chang has entered into discussions with the Jamaican government. Sea Natural Gas Management Corp. is also promising that it can deliver natural gas at half the price estimated under the planned US$400-million liquefied natural gas facility to be constructed at Port Esquivel in St. Catherine, The Gleaner notes. Ian Mallory, the vice president of Sea Natural, told The Gleaner that the firm could deliver at reduced price by sourcing from Trinidad, Venezuela and Colombia. Cost savings could be made from the greater density, which results from compressing the gas for transportation. The process, he said, also eliminates the need for regassifying the product, The Gleaner says, citing Mr. Mallory. 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. GVI SECURITY: Sept. 30 Balance Sheet Upside-Down by US$4.5 Mil. --------------------------------------------------------------- GVI Security Solutions Inc. reported a US$2.99 million net loss on US$10.07 million of revenues for the quarter ended Sept. 30, 2006, compared with a US$2.59 million net loss on US$10.94 million of revenues for the same period in 2005. At Sept. 30, 2006, the company's consolidated balance sheet showed US$12.5 million in total assets and US$17.02 million in total liabilities, resulting in a total stockholders' deficit of US$4.52 million. Additionally, accumulated deficit at Sept. 30, 2006, stood at US$28.27 million. The increase in net loss in primarily due to the decrease in revenues, the increase in cost of goods sold, and the approximately US$1 million impairment costs associated with the Raport product line, offset by income from discontinued operations of approximately US$576,000 in the third quarter of 2006. Net revenues decreased approximately US$869,000 to US$10.07 million in the three months ended Sept. 30, 2006 from US$10.94 million in the three months ended Sept. 30, 2005. The decrease was attributable to a decrease of approximately US$350,000 in sales of professional products and a decrease of US$565,000 in enterprise solutions revenues. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2006, are available for free at: http://researcharchives.com/t/s?1614 Going Concern Doubt Mercadien PC in Hamilton, New Jersey, raised substantial doubt about GVI Security Solutions, Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2005. The auditor pointed to the company's recurring losses and negative cash flows. About GVI Security Solutions Headquartered in Carollton, Texas, GVI Security Solutions Inc. -- http://www.gviss.com/-- provides video surveillance security solutions to the homeland security, institutional and commercial market segments. The company offers a full suite of video surveillance and integrated security solutions, which enable intelligent video surveillance. GVI offers its products and services through local, regional, and national system integrators and distributors in the North and South America and operates sales and distribution centers in Dallas, Texas, Mexico City, Mexico, Sao Paulo, Brazil, and Bogota, Colombia. =================== C O S T A R I C A =================== * COSTA RICA: S&P Affims Low B Currency Sovereign Credit Ratings ---------------------------------------------------------------- Standard & Poor's Rating Services affirmed its 'BB' long-term foreign, 'BB+' long-term local, and 'B' short-term currency sovereign credit ratings on the Republic of Costa Rica. The outlook on the long-term ratings is stable. "The ratings on Costa Rica reflect impressive GDP growth and improved fiscal performance in recent years," said Standard & Poor's credit analyst Joydeep Mukherji. "Growth could reach 7% in 2006, helping to stabilize the general government debt burden at around 40% of GDP, he added. Mr. Mukherji explained that the general government deficit is likely to be around 2% of GDP or less in 2006 and 2007, while the Administration of President Oscar Arias tries to pass new tax laws to gain more revenue over the medium term. Implementing tax reform, along with measures to recapitalize the central bank to staunch quasi-fiscal losses, would address Costa Rica's fiscal vulnerabilities. Standard & Poor's said that Costa Rica's ratings are constrained by fiscal and monetary inflexibility, and by an inflexible exchange rate arrangement that sustains external vulnerability. A weakly regulated offshore banking sector, which accounts for about 20% of the total banking sector by assets, also poses a possible contingent liability. "Failure to boost fiscal revenue, combined with growing political pressure to raise spending on both infrastructure and social services, could widen the general government deficit, raising the sovereign's vulnerability to external shocks," Mr. Mukherji noted. "That, combined with a high level of dollarization in the economy and large central bank losses, could undermine monetary flexibility and financial stability, leading to lower creditworthiness. Conversely, continued moderate general government deficits, along with a qualitative improvement in the tax base, would strengthen fiscal flexibility, raise the effectiveness of monetary policy, reduce external vulnerability and strengthen creditworthiness," Mr. Mukherji concluded. =================================== D O M I N I C A N R E P U B L I C =================================== BANCO BHD: Won't be Part of Coral-Grupo Globalia Talk ----------------------------------------------------- Banco BHD won't be joining the negotiations between Coral Tourist Corp. and Grupo Globalia, Hoy reports. Hoy relates that Grupo BHD removed the non-financial firms that make up the company's portfolio. Tourist and Real Estate Investment Co., which BHD Group created to fulfill the requirements mandated by the Dominican Financing System, will aid the negotiations of Coral Tourist and Grupo Globalia, DR1 Newsletter notes According to DR1, the deal between the two companies is aimed at: -- increasing the amount of accommodations for customers, -- boosting the values in service of both companies, and -- penetrating new markets. Banco BHD is a privately owned commercial bank in the Dominican Republic and part of the BHD Group. Having operated for over 30 years, it is a financial institution focused on serving individuals and corporations of the Dominican Republic. Banco BHD deals in multiple currencies and has an international department that handles large money transfers. In 1998 it acquired the insurance provider Compania de Seguros Palic and has an alliance with Spanish Banco Sabadell. The company has 60 branches located in the Dominican Republic, New York and the Cayman Islands. * * * As reported on Oct. 27, 2006, Fitch Ratings affirmed these Dominican Republic-based Banco BHD ratings: -- Long term foreign and local currency Issuer Default Ratings at 'B'; -- Short-term at 'B'; -- Support at '5'; -- Individual at 'D'. TAG-IT PACIFIC: Earns US$339,117 in 3rd Quarter Ended Sept. 30 -------------------------------------------------------------- Tag-it Pacific Inc. earned US$339,117 of net income on US$13.4 million of net sales for the third quarter ended Sept. 30, 2006, compared with a US$10.3 million net loss on US$9.5 million of net sales for the same period in 2005. At Sept. 30, 2006, the Company's balance sheet showed US$27.7 million in total assets, US$26.1 million in total liabilities, and US$1.5 million in total stockholders' equity. The increase in sales for the three months ended Sept. 30, 2006 as compared to the same period in 2005 was due to double-digit revenue growth in all of the company's product categories, despite lower sales of trim products in Mexico and the shift of both U.S. and Mexico production from these areas to Asia and other worldwide markets. Sales in the three months ended Sept. 30, 2005 was negatively impacted by the business restructuring that began in the third quarter of 2005 closing the Mexican assembly and U.S. manufacturing facilities, including the discontinuance of the thread product line in said period. Operations in the third quarter of 2006 was positively impacted by lower cost of sales and interest expenses in the third quarter of 2006, compared to the same period in 2005. Cost of sales was US$9.2 million or US$2.3 million less than cost of sales for the same period in 2005, attributable to costs associated with sales volume changes, improved product margins, reduced distribution charges since more products are now sourced and delivered within the same market place, reduced manufacturing and assembly overhead costs, and lower provisions for obsolescence as inventory levels have been reduced and turns accelerated. Interest expense decreased by approximately US$106,000 for the three months ended Sept. 30, 2006, as compared to the same period in 2005, due primarily to lower average borrowings. Cash and cash equivalents for the nine months ended Sept. 30, 2006 increased US$1,449,000 from Dec. 31, 2005 principally arising from cash generated by operating activities, net of payments on notes payable and capital leases. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2006, are available for free at: http://researcharchives.com/t/s?1606 Going Concern Doubt Singer Lewak Greenbaum & Goldstein, LLP, in Los Angeles, California, raised substantial doubt about Tag-It Pacific, Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the company's incurred net loss of US$29,537,709 and accumulated deficit of US$50,434,042 at Dec. 31, 2005. About Tag-It Pacific Tag-It Pacific, Inc. designs, sells, manufactures and distributes apparel zippers, specialty waistbands and various apparel trim products to manufacturers of fashion apparel, specialty retailers and mass merchandisers. The company's various branded names include the Talon zippers and Tekfit brand of expandable waistbands. The company distributes apparel items to fashion manufacturers in the United States, Asia, Mexico, the Dominican Republic, and Central and South America. Also it offers formed wire metal zippers for the jeans and sportswear industries. ============= E C U A D O R ============= DOLE FOOD: Weak Performance Cues S&P to Cut Credit Rating to B -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Westlake Village, Calif.-based Dole Food Co. Inc. and Dole Holding Co. LLC, including its corporate credit rating, to 'B' from 'B+'. The ratings were removed from CreditWatch, where they were placed on Aug. 9, 2006, with negative implications, following materially weaker-than-expected financial performance in the first half of fiscal 2006, which typically represents a substantial portion of cash flow. The outlook is negative. Total debt outstanding at the company was about US$2.3 billion as of Oct. 7, 2006. "The downgrade follows Dole's recent third-quarter earnings release and reflects continued weak operating performance and significantly higher than expected leverage," said Standard & Poor's credit analyst Alison Sullivan. For the 12 months ended Oct. 7, 2006, adjusted EBITDA declined by 39%, compared with the prior-year period, because of higher operating costs. Dole also is faced with ongoing challenging conditions in Europe following the tariff change effective Jan. 1, 2006, that has increased competition, leading to lower pricing and higher net tariff costs. As a result, credit measures have weakened further than anticipated. Lease and pension adjusted total debt to EBITDA increased to about 9.5x for the 12 months ended Oct. 7, 2006, from about 6x at Dec. 31, 2006. Given expected ongoing difficult industry conditions, Standard & Poor's believes Dole will not meet prior expectations of leverage at around 6x and EBITDA interest coverage in the low-2x area for fiscal 2006. The ratings on Dole reflect its highly leveraged financial profile and participation in the competitive and commodity-oriented fresh produce industry, that is subject to seasonality. 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. ===================== E L S A L V A D O R ===================== SBARRO INC: S&P Places Ratings on NegWatch on MidOcean Buyout ------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings, including its 'CCC+' corporate credit rating, on Melville, N.Y.-based Sbarro Inc. on CreditWatch with negative implications. The CreditWatch listing follows the company's announcement that it has agreed to be acquired by private equity investors, MidOcean Partners, for an undisclosed sum. "Ratings could be lowered if the transaction results in increased leverage," said Standard & Poor's credit analyst Diane Shand. The company is already highly leveraged, with total debt to EBITDA at 7.8x for the 12 months ended Oct. 8, 2006. Sbarro operates a chain of Italian restaurants in a cafeteria-style format. Melville, New York-based Sbarro Inc. -- http://www.sbarro.com/ -- is a quick service restaurant chain that serves Italian specialty foods. The Company has approximately 1,000 locations across 34 countries and 11,000 employees under brand names such as "Sbarro,", "Umberto's," and "Carmela's Pizzeria." The company announced on June 19, 2006, its international expansion by opening more than 25 restaurants in Guatemala, El Salvador, Honduras, The Bahamas and Romania. To date the company has close to to 1,000 restaurants in 34 countries, including the United Kingdom, Canada, Russia, Puerto Rico and Israel. ================= G U A T E M A L A ================= SBARRO INC: Discloses Terms of MidOcean Merger Agreement -------------------------------------------------------- In a regulatory filing with the U.S. Securities and Exchange Commission, Sbarro, Inc., disclosed the terms of it merger agreement with MidOcean SBR Holdings, LLC, and MidOcean SBR Acquisition Corp. As reported in the Troubled Company Reporter on Nov. 28, 2006, the Company signed a definitive agreement with MidOcean Partners. Northpoint Advisors served as advisors to MidOcean while Kirkland & Ellis LLP provided legal counsel to MidOcean. Credit Suisse and Bank of America will provide financing for the transaction. Willkie Farr & Gallagher LLP provided legal counsel to Sbarro. The Merger Agreement contemplates a merger whereby MidOCean Acquisition will be merged with and into Sbarro, with Sbarro continuing as the surviving corporation. Under the Merger Agreement, the stockholders of Sbarro will receive, in the aggregate: (i) cash consideration of US$417 million less adjusted debt; (ii) a distribution of certain cash of Sbarro in consideration for the delivery to Sbarro of certain shares of common stock of Sbarro; and (iii) a preferred interest in Holdings comprised of 33,000 Class A Units, each with an initial stated value of US$1,000. The purchase price is subject to adjustment in accordance with the terms of the Merger Agreement. Prior to consummation of the transaction, Sbarro is required to transfer or assign the Withdrawn Assets, as defined in the Merger Agreement, to entities designated by the Stockholders in exchange for certain shares of common stock of Sbarro. The Company says that the Merger Agreement has been adopted and approved by the Board of Directors of Sbarro, MidOCean Holdings and MidOcean Acquisition and the stockholders of Sbarro and MidOcean Acquisition. The Merger is subject to the condition that any applicable waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended, and any applicable foreign competition filings shall have expired or been terminated, the condition that Holdings shall have obtained debt financing in the amounts described in, and on the terms and conditions set forth in, the Debt Commitment Letter, as defined in the Merger Agreement, or shall have obtained other debt financing on terms reasonably satisfactory to Holdings in accordance with the terms of the Merger Agreement, and other customary closing conditions. Sbarro made certain representations and warranties to Holdings and MergerSub in the Merger Agreement. In addition, Sbarro agreed to certain covenants, including, among others, subject to certain exceptions, obligations not to take certain actions with respect to the operation of Sbarro's business without the prior consent of MidOCean Holdings, and not to solicit, negotiate, consider or accept any proposal or offer from any person or entity, other than MidOCean Holdings and its affiliates, relating to the acquisition of any shares of the common stock of Sbarro or the acquisition of any material assets of Sbarro and its subsidiaries on a consolidated basis. In addition, Sbarro agreed, contemporaneously with and subject to the closing of the Merger, to irrevocably instruct the trustee under Sbarro's indenture, dated as of Sept. 28, 1999, to give a notice of redemption to the holders of all the 11% senior notes due 2009 issued and outstanding under the Indenture, which notice would provide that these notes will be redeemed 30 days after the notice of redemption has been mailed. However, the parties also agreed to discuss and consider in good faith alternatives to a post-closing redemption of the 11% senior notes due 2009. A full-text copy of the Agreement and Plan of Merger is available for free at http://ResearchArchives.com/t/s?160b About MidOcean Partners Based in New York and London, MidOcean Partners LLC -- http://www.midoceanpartners.com/-- is a private equity firm focused on the middle market. MidOcean is committed to investing in high quality companies with stable market positions and multiple opportunities for growth in the United States and Europe. Targeted sectors include consumer and leisure, media and communications, business and financial services, and industrials. MidOcean utilizes a broad foundation of expertise in its focus industries and its transatlantic platform to create value for its investors and partners. About Sbarro Inc. Melville, New York-based Sbarro Inc. -- http://www.sbarro.com/ -- is a quick service restaurant chain that serves Italian specialty foods. The Company has approximately 1,000 locations across 34 countries and 11,000 employees under brand names such as "Sbarro,", "Umberto's," and "Carmela's Pizzeria". The company announced on June 19, 2006, its international expansion by opening more than 25 restaurants in Guatemala, El Salvador, Honduras, The Bahamas and Romania. SBARRO INC: Moody's Changes Outlook to Developing from Positive --------------------------------------------------------------- Moody's Investors Service affirmed Sbarro, Inc.'s Caa1 corporate family and senior unsecured ratings and changed the outlook to developing from positive following the company's announcement that it had entered into an agreement to be acquired by private equity firm, MidOcean Partners, LLC for cash consideration of $417 million less adjusted debt. The developing outlook incorporates uncertainty as to the timing, nature and potential impact on creditors resulting from any actions taken by the company. Moody's added that the revised outlook anticipates a near-to-intermediate term resolution. The rating agency will continue to monitor developments and take further rating action once financing details of the transaction are announced. Headquartered in Melville, New York, Sbarro, Inc. is a quick service restaurant chain that serves Italian specialty foods. As of Oct. 8, 2006, the company owned and operated 479 and franchised 476 restaurants worldwide under brand names such as "Sbarro,", "Umberto's," and "Carmela's Pizzeria". The company also operated 25 other restaurant concepts and joint ventures under various brand names. Total revenues for fiscal 2005 were approximately $348 million. =========== G U Y A N A =========== BRITISH WEST: Militant Group Threatens Firm with Chemical Attack ---------------------------------------------------------------- An independent militant group has threatened British West Indies Airlines aka BWIA, along with two US carriers flying out of Guyana, with a chemical attack, Newsday reports. Newsday relates that the militant group said that toxic chemicals would be used on flights of BWIA, American Airlines and North American Airlines from Georgetown to other Caribbean destinations and to North America and Britain. Officials of the government of Guyana told Newsday that the threat was made in e-mails sent to newspapers, airlines and the US Embassy in Guyana. According to Newsday, the sender's name and e-mail address were listed as Yuv Ata and atayuv@yahoo.com. The Guyana government said in a statement, "Although the threat is suspected to be a prank, the government is taking the issue seriously." The government told Newsday that it has since mobilized the Joint Services and representatives of the airline industry in Guyana and has been in discussion with its bilateral partners in international security. The FBI and the US Transportation Safety Authority have launched an investigation, Newsday says, citing Niles Cole, the spokesperson of the US Embassy. He said, "The US government takes threats against American citizens seriously at all times regardless whether or not the threat turns out to be valid or credible." However, flights to and from Georgetown have not been affected, Newsday states. British West Indies aka BWIA was founded in 1940, and for more than 60 years has been serving the Caribbean islands from Trinidad and Tobago, the hub of the Americas, linking the twin island republic and many other Caribbean islands with North America, South America, the United Kingdom and Europe. The airline was losing USUS$1 million a week due to poor operational management. The Trinidad & Tobago government, which owns 97.188% of BWIA, decided to shut down the airline on Dec. 31, 2006, and reopen a new airline that will be called Caribbean Airlines. The government approved a substantial capital injection for the creation of Caribbean Airlines. =============== H O N D U R A S =============== LEAR CORP: Transfers All North American Assets to Joint Venture --------------------------------------------------------------- Lear Corp. has reached a definitive agreement with WL Ross & Co. LLC and Franklin Mutual Advisers, LLC, to transfer substantially all of the assets of its North American Interior business and US$25 million of cash to a newly-formed joint venture, International Automotive Components Group North America, LLC. Lear will hold a 25% equity interest in IAC North America and warrants for an additional 7% equity interest in IAC North America. This transaction completes a series of strategic initiatives intended to improve the company's ongoing operating results, strengthen its balance sheet and increase operating flexibility. Separately, Lear completed a private offering of US$900 million in new senior notes on Nov. 24 and has commenced a tender offer for its outstanding 2008 and 2009 senior notes. Also, on Nov. 8, Lear completed a US$200 million sale of common stock in a private placement to affiliates of, and funds managed by, Carl C. Icahn. "We are very pleased to have reached a definitive agreement to transfer our North American Interior business to IAC North America. This transaction combined with our recent financing initiatives have significantly strengthened the company's financial and competitive position," said Bob Rossiter, Lear's chairman and chief executive officer. "Our focus going forward is to concentrate on delivering superior quality and service to our customers and to invest in further strengthening and growing our core businesses to increase value for our shareholders." Under the terms of the agreement with respect to the company's North American Interior business, WL Ross and Franklin would make aggregate cash contributions of US$75 million to IAC North America, in exchange for the remaining equity, and extend a US$50 million term loan. Lear's North American Interior business has annual sales of approximately US$2.5 billion. Lear expects to record a charge of about US$675 million related to the divestiture of the North American Interior business in the Fourth Quarter of 2006, and recognize its investment in IAC North America under the equity method of accounting. The closing of the transaction is subject to various conditions, such as the receipt of required third-party consents and other closing conditions customary for transactions of this type. Citigroup Corporate and Investment Banking and UBS Investment Bank acted as financial advisors to Lear in connection with this transaction. The operations being acquired by IAC North America include 26 plants located in the United States, Canada and Mexico with revenues of approximately US$2.5 billion. The facilities supply cockpits, door panels, flooring and acoustics, instrument panels, interior trim and overhead systems to various original equipment manufacturers. Wilbur L. Ross, Jr., Chairman of IAC North America, commented, "We are excited to bring to full completion the joint venture announced last year. With this transaction, IAC group companies will have more than $4 billion of revenues, approximately 20,000 employees and a truly global footprint in 16 countries in North and South America, Eastern and Western Europe, Japan and China." The transaction is subject to certain conditions including regulatory approval and other customary closing conditions, but is expected to close in the first quarter of 2007. Goldman Sachs & Co. and Jones Day advised IAC NA on the transaction. In October, Lear completed the contribution of substantially all of its European Interior business to International Automotive Components Group, LLC or IAC Europe, another joint venture with WL Ross and Franklin, in exchange for a one-third equity interest in IAC Europe. IAC Europe also owns the European Interior business formerly held by Collins & Aikman Corporation. WL Ross & Co. LLC has sponsored more than $4 billion of private equity transactions in the steel, coal, textile, automotive supply and financial services industries since its founding in April 2000. Franklin Mutual Advisers, LLC (Mutual Series) manages the Mutual Series family of mutual funds and other accounts totaling more than $60 billion in assets. Headquartered in Southfield, Mich., Lear Corp. (NYSE: LEA) -- http://www.lear.com/-- supplies automotive interior systems and components. Lear provides complete seat systems, electronic products and electrical distribution systems and other interior products. The company's Latin American operations are located in Argentina, Brazil, Honduras, Mexico and Venezuela. * * * Moody's Investors Service assigned on Nov. 20, 2006, a B3, LGD4, 61% rating to Lear Corp.'s new offering of US$700 million of unsecured notes. At the same time, Moody's affirmed Lear's Corporate Family Rating of B2, Speculative Grade Liquidity rating of SGL-2 and negative outlook. All other long-term ratings are unchanged. Standard & Poor's Ratings Services also assigned on Nov. 20, 2006, its 'B-' ratings to Lear Corp.'s US$300 million senior notes due 2013 and its US$400 million senior notes due 2016. Lear's 'B+' corporate credit and other ratings were affirmed. S&P said the outlook is negative. ============= J A M A I C A ============= AIR JAMAICA: Former Management Balks at Maintenance Accusations --------------------------------------------------------------- Air Jamaica Acquisition Group, the previous management of Air Jamaica that was led by Gordon Stewart, told Radio Jamaica that its alleged failure to arrange a proper maintenance schedule for the airline is not "at the heart" of Air Jamaica's problems. As reported in the Troubled Company Reporter-Latin America on Dec. 4, 2006, Michael Conway, president and chief executive officer of Air Jamaica, blamed the poor maintenance program of the past for the present problems of Air Jamaica. Air Jamaica's management said that an inefficient maintenance program while the airline was under the management led by Butch Stewart contributed to some of the problems Air Jamaica is experiencing. As a result, it is now more expensive and time consuming to service the planes, Mr. Conway told the Jamaica Gleaner. However, the Acquisition Group said in a statement that criticisms of its maintenance record by the current managers of Air Jamaica is nothing more than a obvious attempt to cast unwarranted blame on the former management of the airline. The Group told Radio Jamaica that either Mr. Conway is unaware of what is happening at Air Jamaica or he is not telling the truth. Either case would cast doubt on his ability to manage the airline. Mr. Conway should be aware of the problems that caused delays in the servicing of some aircraft including a workers' protest at the French firm that was to conduct the maintenance, Radio Jamaica says, citing the Acquisition Group. The Acquisition Group said that Mr. Conway had failed to inform the parliamentary committee about the delays experienced in the maintenance of some aircraft, The Gleaner reports. The Acquisition Group told Radio Jamaica that it surrendered in December 2004 a globally recognized world-class airline to the government. The group said that a lack of vision and innovation by its current management could lead to its ultimate destruction. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra-island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * On July 21, 2006, Standard & Poor's Rating Services assigned B long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, is based on the government's unconditional guarantee of both principal and interest payments. AIR JAMAICA: Paul Pennicook Denies Plans of Merger -------------------------------------------------- Paul Pennicook, Air Jamaica's senior vice president for marketing and sales, told Radio Jamaica that the airline has no plans on a merger with other regional air carriers. The Jamaica Gleaner relates that Michael Conway, Air Jamaica's president and chief executive officer, dismissed as impractical suggestions that the airline should be merged into a regional airline. Mr. Conway told The Gleaner, "There is nothing of substance to back it up. People have thrown the word out: 'Oh, you just sort of merge all the regional carriers and then that would solve everybody's problem.' There is no study to substantiate any merit to that." However, Air Jamaica would be keen on forging alliances with the regional air carriers, Radio Jamaica says, citing Mr. Pennicook. Mr. Conway told The Gleaner that Air Jamaica is pursuing collaborative efforts with other carriers. He said the airline was looking outside of the region to form other partnerships. One such partnership is being pursued with Latin American airlines, through the introduction of a frequent-flyer programme for all of Latin American and Caribbean carriers. Mr. Conway commented to The Gleaner, "There is a fabulous opportunity for the carriers in the Caribbean and the Latin and Central American regions to do something on a collaborative effort." This is because the traffic originating in South and Central America and the Caribbean is increasing at a much higher rate than traffic from North America, The Gleaner says, citing Mr. Conway. Meanwhile, Air Jamaica proposed several initiatives to be implemented over a two-year period to close a US$100 million financial gap, according to The Gleaner. The initiatives include: -- the conversion of the current fleet, -- the upgrading of its maintenance system, and -- the introduction of a cross-island service from the Norman Manley International in Kingston to the Sangster International Airport in Montego Bay. Air Jamaica will gain market share in the region with British West Indies Airline's closure and Caribbean Airlines' launch, Mr. Pennicook told Radio Jamaica. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra-island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * On July 21, 2006, Standard & Poor's Rating Services assigned B long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, is based on the government's unconditional guarantee of both principal and interest payments. AIR JAMAICA: Receives US$34 Million for Working Capital ------------------------------------------------------- Air Jamaica has received from the Jamaican government about US$27 million at 3.0% interest over six years and US$7 million at 1.0% interest over 25 years, to be used for working capital, the Jamaica Gleaner reports. According to The Gleaner, the Jamaican government has "onlent" over 80% of US$174 million, which converts to J$9.1 billion of J$11.5 billion received since February under PetroCaribe. The oil funds come from a debt Jamaica will have to repay at a concessionary 1%. Over 40% of the advances made ahead of the establishment of the vehicle that would manage the loans or the PetroCaribe Development Fund were disbursed to loss-making government companies. The Jamaican cabinet approved the disbursements under an interim arrangement on June 19. Dr. Omar Davies, Jamaica's minister of finance and planning, said in a statement that some of the loan represented 2,500 additional barrels of oil daily that the government took on in June to support Air Jamaica, resulting in US$20 million yearly loan financing to the airline. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra-island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * On July 21, 2006, Standard & Poor's Rating Services assigned B long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, is based on the government's unconditional guarantee of both principal and interest payments. SUGAR COMPANY: Receives US$34.7 Million for Firm's Privatization ---------------------------------------------------------------- The Sugar Company of Jamaica received from the Jamaican government about US$34.7 million at 3.0% interest per annum for 15 years, to assist with working capital needs and preparation of the firm for privatization, the Jamaica Gleaner reports. According to The Gleaner, the Jamaican government has "onlent" over 80% of US$174 million, which converts to J$9.1 billion of J$11.5 billion received since February under PetroCaribe. The oil funds come from a debt Jamaica will have to repay at a concessionary 1%. Over 40% of the advances made ahead of the establishment of the vehicle that would manage the loans or the PetroCaribe Development Fund were disbursed to loss-making government companies. The Jamaican cabinet approved the disbursements under an interim arrangement on June 19. The Gleaner relates that Air Jamaica has also received from Venezuela's PetroCaribe pact some US$27 million at 3.0% interest over six years and US$7 million at 1.0% interest over 25 years, to be used for working capital. Some of the loan represented 2,500 additional barrels of oil daily that the government took on in June to support Air Jamaica, resulting in US$20 million yearly loan financing to the airline, Dr. Omar Davies, Jamaica's minister of finance and planning, said in a statement. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra-island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. About Sugar Company Sugar Company of Jamaica registered a net loss of almost US$1.1 billion for the financial year ended Sept. 30, 2005, 80% higher than the US$600 million reported in the previous financial year. Sugar Company blamed its financial deterioration to the reduction in sugar cane production. =========== M E X I C O =========== ALASKA AIRLINES: Contributes US$50MM to Employee Pension Funds -------------------------------------------------------------- Alaska Airlines has made a voluntary contribution of US$50 million in cash to four defined benefit pension plans covering 7,300 employees in its airport, dispatch, maintenance, management and pilot work groups. Combined with a US$71.9 million voluntary contribution made early this year, the airline has strengthened its defined benefit pension plans by nearly US$122 million in 2006. "The success of our transformation plan in returning Alaska Airlines to profitability helps ensure we meet our promise of secure retirements for our employees," said Bill Ayer, Alaska's chairman and chief executive officer. Alaska Airlines has made more than US$316 million in voluntary cash contributions to its defined benefit pension plans since 2001. At the end of 2005, the airline's defined benefit pension plans were funded at 69% of future benefit obligations, placing them among the most secure in the airline industry. Under current pension funding rules, the airline was not required to make a contribution in 2006. Seattle, Wash.-based Alaska Air Group, Inc. (NYSE: ALK) -- http://alaskaair.com/-- is a holding company with two principal subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc. Alaska operates an all-jet fleet with an average passenger trip length of 1,009 miles. Alaska principally serves destinations in the state of Alaska and North/South service between cities in the Western United States, Canada, and Mexico. Horizon operates jet and turboprop aircraft with average passenger trip of 382 miles. Horizon serves 40 cities in seven states and six cities in Canada. * * * As reported in the Troubled Company Reporter on Nov. 6, 2006, Moody's Investors Service affirmed the corporate family rating of Alaska Air Group, Inc. and the Equipment Trust Certificate rating of Alaska Airlines, Inc. at B1, and changed the outlook to stable from negative. FORD MOTOR: S&P Rates US$15B Senior Sec. Credit Facilities at B --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' bank loan rating and '2' recovery ratings to Ford Motor Co.'s proposed US$15 billion senior secured credit facilities, which consist of an US$8 billion revolving credit facility and a US$7 billion term loan B facility. The bank loan rating is equal to Ford's corporate credit rating. This and the '2' recovery rating indicate that lenders can expect substantial (80% to 100%) recovery of principal in the event of a payment default. Ford intends to replace its existing US$6.3 billion unsecured bilateral revolving facilities with the new US$8 billion senior secured revolving credit facility. In addition to the US$7 billion term loan B facility, Ford also anticipates raising US$3 billion in other unsecured capital market transactions. The rating agency expects to assign ratings to these transactions once Ford announces further details. Earlier, Standard & Poor's lowered its senior unsecured debt issue ratings on Ford to 'CCC+' from 'B'. The downgrade of the unsecured debt stemmed from the pending secured credit facilities, which would significantly disadvantage the unsecured debt in the event of default. Ratings List Ford Motor Co. Corp. credit rating B/Negative/B-3 Rating Assigned US$15 bil. sr. secured credit facilities B (Recovery rtg: 2) Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F) -- 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. FORD MOTOR: S&P Junks Ratings on 8 Synthetic ABS Transactions ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on eight U.S. single-issue synthetic ABS transactions related to Ford Motor Co. (Ford; B/Negative/B-3) and removed them from CreditWatch, where they were placed with negative implications on Oct. 24, 2006. The Nov. 27, 2006, lowering of the senior unsecured debt ratings on Ford and their removal from CreditWatch negative does not have any immediate rating impact on the Ford-related ABS supported by collateral pools of consumer auto loans or auto wholesale loans. Each of the securitizations with ratings lowered and removed from CreditWatch negative is weak-linked to Ford's senior unsecured debt. Ford provides the underlying collateral in the affected securitizations. The Nov. 27, 2006, lowering of the senior unsecured debt ratings on Ford and their removal from CreditWatch negative reflects the significant disadvantage to Ford's unsecured creditors by the planned introduction of US$15 billion of secured debt into the capital structure. Ratings Lowered and Off Creditwatch Negative Corporate Backed Trust Certificates Ford Motor Co. Debenture-Backed Series 2001-36 Trust Class To From A-1 CCC+ B/Watch Neg A-2 CCC+ B/Watch Neg Corporate Backed Trust Certificates Ford Motor Co. Note-Backed Series 2003-6 Trust Class To From A-1 CCC+ B/Watch Neg CorTS Trust for Ford Debentures Class To From Certs CCC+ B/Watch Neg CorTS Trust II for Ford Notes Class To From Certs CCC+ B/Watch Neg Freedom Certificates US Autos Series 2004-1 Trust Class To From A CCC+ B/Watch Neg X CCC+ B/Watch Neg PPLUS Trust Series FMC-1 Class To From Certs CCC+ B/Watch Neg PreferredPLUS Trust Series FRD-1 Class To From Certs CCC+ B/Watch Neg SATURNS Trust No. 2003-5 Class To From Units CCC+ B/Watch Neg Trust Certificates (TRUCs) Series 2002-1 Trust Class To From A-1 CCC+ B/Watch Neg Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F) -- 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. GREAT PANTHER: Topia & Guanajuato Mines Production Increases ------------------------------------------------------------ Great Panther Resources Limited's production continues to increase at its 100% owned silver mines in Mexico. The Company disclosed that at its Topia Silver-Lead-Zinc Mine in Durango, the plant throughput has been increased from 120 tonnes to 160 tonnes per day with the commissioning of the second ball mill. At its Guanajuato Mine Complex, total throughput has risen from 400 tonnes to 700 tonnes per day and will continue to increase into the New Year. The third ball mill at Topia will be commissioned in early 2007 and its original target of 200 tonnes per day is anticipated to be attained in the first quarter of 2007 with capacity anticipated to be in excess of 300 tonnes per day by late 2007 or early 2008. The third mill at Guanajuato is currently being refurbished. New underground development is also continuing at both mines. As announced by the Company on Oct. 12, 2006, production from the Argentina vein at Topia is anticipated to begin in first quarter of 2007. At Guanajuato, new production has commenced from several stopes on the 345 level of the Rayas and Cata Mines, while mining continues in the San Vicente and Guanajuatito areas. The Company further disclosed that its 34-hole surface diamond drilling program has been completed at Guanajuato and final assay results from the Promontorio area near the southeast property boundary are pending. Drilling in the Guanajuatito and Animas areas have already identified significant silver-gold mineralization that is available for immediate development. A new 5,000-metre surface-drilling program contracted to BDW Drilling of Mexico has also begun at Topia. In addition, the Company has purchased four new underground diamond drills -- three for Guanajuato and one for Topia -- that will be operated by its own personnel. Great Panther Resources Limited (TSX-V: GPR) through its acquisition of the Topia and Guanajuato Mines in Mexico has transformed from a company that was exclusively focused on mineral exploration to a company involved in the mining of precious and base metals. Going Concern Doubt As reported in the Troubled Company Reporter on July 13, 2006, KPMG LLP in Vancouver, Canada, raised substantial doubt about Great Panther Resources Limited's ability to continue as a going concern after auditing the Company's consolidated financial statements for the years ended Dec. 31, 2005, and 2004. The auditors pointed to the Company's recurring losses and operating cash flow deficiencies. HOME PRODUCTS: Interest Nonpayment Cues Moody's to Cut Ratings -------------------------------------------------------------- Moody's Investors Service lowered Home Product International, Inc.'s corporate family rating to Caa3 from Caa1, and its senior subordinated notes rating to Ca from Caa2. The rating action was prompted by Home Products's November 2006 announcement that it reached an agreement in principle with certain noteholders holding a majority of the senior subordinated notes regarding the terms of a restructuring of the company's indebtedness. Additionally, the company did not make the interest payment due Nov. 15 on its senior subordinated notes, resulting in the probability-of-default rating being lowered to D. As part of the restructuring, holders of the senior subordinated notes would convert their debt holdings for 95% of the equity of the reorganized company. Moody's will withdraw the ratings upon completion of the proposed debt restructuring. These ratings were downgraded: -- Corporate family rating, to Caa3 from Caa1; -- Probability-of-default rating, to D from Caa1; and -- US$116 million 9.625% senior subordinated notes due 2008, to Ca from Caa2 (LGD4, 66%). Home Products International, Inc. -- http://www.hpii.com/and http://www.homz.biz/-- is an international consumer products company which designs and manufactures houseware products. The Company sells its products through national and regional discounters including Kmart, Wal-Mart and Target, hardware/home centers, food/drug stores, juvenile stores and specialty stores. The company has operations in Mexico. HUDSON PRODUCTS: Moody's Assigns B2 Corp. Family Rating ------------------------------------------------------- Moody's Investors Service assigned a B2 corporate family rating to Hudson Products Holdings, Inc. Additionally, Moody's assigned a B1 rating to the company's proposed US$120 million senior secured credit facility (US$95 million Term Loan B and US$25 million revolver). Moody's has not rated the company's US$48 million senior subordinated notes. The rating outlook is stable. Moody's assigned these ratings: -- Corporate family rating, B2; -- Probability of default rating, B2; -- US$95 million senior secured term loan due 2013, B1 (LGD 3, 35%); and -- US$25 million senior secured revolver due 2011, B1 (LGD 3, 35%). The ratings remain subject to Moody's review of final documentation. Hudson's B2 corporate family rating reflects the high pro forma leverage at closing (5.5 times debt-to-EBITDA, debt-to-revenue greater than 1.1 times), the company's small size, and its vulnerability to the cyclical nature of the oil and gas industry -- a key end market for the company's fans and air-cooled heat exchangers. The company's strong market position and significant installed base, which result in part sales, high margin service, retrofits and upgrades, support the rating. Additionally, the company's market leadership position in fans (#1 global market share) and air-cooled heat exchangers (#1 domestic market share), its global presence for a relatively small company, and favorable near-term industry dynamics support the rating. Hudson's significant backlog (roughly equal to 75% of revenues) and customers' announced capital expansions provide near-term revenue visibility and mitigate some of the credit risk inherent to the company's nominal revenue base thereby supporting the stable outlook. The Sterling Group, L.P. has signed a letter of intent to acquire Hudson for US$194 million in cash (including transaction costs), which represents a 7.5 times multiple of the company's adjusted EBITDA of US$25.8 million for the trailing twelve months ended September 30, 2006. Sterling intends to finance the acquisition with the aforementioned credit facility (the revolver will be undrawn at closing), senior subordinated notes and a US$51 million equity contribution. Hudson, headquartered in Sugar Land, TX, is a global heat transfer solutions firm providing engineered thermal processing products to the petroleum, natural gas, power generation, and chemical industries. Revenues for the trailing twelve months ended Sept. 30, 2006 were just over US$115 million. It has operations in Mexico. JETBLUE AIRWAYS: Launches Nonstop Service to Yucatan Peninsula -------------------------------------------------------------- JetBlue Airways Corp. begins new nonstop service between Cancun, located on Mexico's Yucatan Peninsula, and its home base at New York's John F. Kennedy International Airport. With the addition of Cancun, JetBlue now offers service to eight exciting Caribbean/Atlantic destinations: -- Aruba; -- Cancun, Mexico; -- Nassau, The Bahamas; -- Bermuda; -- San Juan; -- Ponce; -- Aguadilla; -- Puerto Rico; -- and Santiago, the Dominican Republic. "Our new daily nonstop service connecting the sunny beaches of Cancun and the great metropolis of New York, our hometown, marks our eighth Caribbean/Atlantic destination and our 15th new city addition this year," said JetBlue Founder and CEO David Neeleman. "We look forward to bringing a convenient, affordable, first-rate travel experience to new customers as more people discover the breathtaking scenery, ancient archaeological sites and robust culture that Mexico has to offer." "Mexico continues to attract millions of international visitors each year, highlighting the diversity and attractiveness of our tourism offerings, as well as the warmth of our people," said Rodolfo Elizondo, Mexico's Secretary of Tourism. "JetBlue's new flight from New York to Cancun will enable more people to visit the Yucatan Peninsula, one of the most fantastic tourist destinations in Mexico. We expect 2007 to be yet another successful year for our tourism industry, with increased growth across all segments and continued efforts to offer tourists the very best Mexico has to offer." Based in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services primarily in the United States. As of Feb. 14, 2006, the Company operated approximately 369 daily flights serving 34 destinations in 15 states, Puerto Rico, the Dominican Republic, and the Bahamas. The Company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV, LLC. * * * As reported in the Troubled Company Reporter on Nov. 23, 2006, Moody's Investors Service assigned ratings of Caa1 (LGD5, 88%) to the approximately US$40 million of Special Facility Revenue Bonds, Series 2006 (JetBlue Airways Corporation Project or the JFK Facility Bonds) to be issued by the New York City Industrial Development Agency. Moody's affirmed the B2 corporate family rating for JetBlue Airways Corp. The outlook remains negative. Standard & Poor's Ratings Services assigned its 'B' rating to US$40 million of New York City Industrial Development Agency special facility revenue bonds, series 2006 maturing on May 15, 2021, and May 15, 2030; the amount for each maturity have yet to be determined. The bonds, which will be used to finance a hangar and other facilities, will be serviced by payments made by JetBlue Airways Corp. (B/Stable/B-3) under a lease between the airline and the agency. NORTEL NETWORKS: Implements Share Consolidation ----------------------------------------------- Nortel Networks Corp. implemented the consolidation of its issued and outstanding common shares as approved by the company's Board of Directors on Nov. 6, 2006 and its shareholders at the annual and special meeting of shareholders on June 29, 2006. Nortel's common shares, listed on the New York Stock Exchange and the Toronto Stock Exchange, began trading on a consolidated basis when the NYSE and TSX opened on Dec. 1. The consolidation was implemented with a ratio of one consolidated share for every ten pre-consolidation shares. The consolidation has reduced the number of shares outstanding from approximately 4.3 billion to approximately 433 million. Registered shareholders of the company are receiving instructions by mail on how to obtain a new share certificate representing their consolidated common shares. No fractional shares will be issued as a result of the consolidation. If the consolidation results in a registered shareholder having a fractional interest of less than a whole share, the registered shareholder will receive a cash payment for the value of that interest, with the amount of the payment determined by multiplying the fraction by US$21.15 (the average closing price of Nortel common shares, as adjusted for the consolidation, on the NYSE for the ten trading days prior to today's effective date), with Canadian residents receiving the Canadian dollar equivalent of such payment based on the noon spot rate published by the Bank of Canada on Nov. 30, 2006. Nortel shares held through a broker, bank, trust company, nominee or other financial intermediary will be adjusted by that firm. With the implementation of the consolidation, the company's 4.25% convertible senior notes due Sept. 1, 2008, are convertible by holders into common shares of Nortel Networks Corporation at a new conversion price of US$100 per common share. Furthermore, proportional adjustments reflecting the share consolidation have been made under Nortel's equity compensation plans. Headquartered in Ontario, Canada, Nortel Networks Corp. (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries including Mexico. * * * As reported in the Troubled Company Reporter on Oct. 5, 2006, Moody's Investors Service upgraded its B3 Corporate Family Rating for Nortel Networks Corp. to B2. As reported in the Troubled Company Reporter on July 10, 2006, Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corp., Nortel Networks Corp., and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed USUS$2 billion notes. S&P said the outlook is stable. SATELITES MEXICANOS: Emerges from US Bankruptcy Protection ---------------------------------------------------------- In fewer than four months after commencing its pre-negotiated U.S. bankruptcy, Satelites Mexicanos, S.A. de C.V. aka Satmex disclosed that on Nov. 30, 2006, it officially concluded its reorganization efforts and emerged from its U.S. bankruptcy case. The company consummated its U.S. chapter 11 plan of reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of New York by order dated Oct. 26, 2006, and implemented the restructuring approved in Satmex's Mexican Concurso Mercantil proceeding by the Concurso Plan Order issued on July 14, 2006. Reorganized Capital Structure In accordance with the terms of the restructuring, the holders of Satmex's former US$203.4 million of Floating Rate Notes received, in full satisfaction of the obligations due under such notes, new First Priority Senior Secured Notes due in 2011 in the amount of approximately US$238.2 million with a quarterly coupon of LIBOR + 875 basis points. The new First Priority Senior Secured Notes: -- are callable at a price of 103 in year 1, 102 in year 2, 101 in year 3 and at par (plus accrued interest) thereafter; -- have a first priority security interest in all of Satmex's assets; and -- benefit from cash sweep prepayments on excess cash balances over US$5 million. The CUSIP number for the First Priority Senior Secured Notes is 803895AE1. Holders of Satmex's former US$320 million of High Yield Bonds received, in full satisfaction of US$140 million of the obligations due under such bonds, including all accrued interest, new Second Priority Senior Secured Notes due 2013 in the principal amount of US$140,000,000. The new Second Priority Senior Secured Notes due 2013 have a quarterly coupon of 10.125% all-in, with 0.0% cash payment in year 1 with the balance paid-in-kind, 2.0% cash payment through year five, with the balance paid-in-kind, with the coupon paid wholly in cash in years 6-7. The Notes: -- are callable at par throughout their life; -- have a second lien on Satmex's assets junior in priority, operation and effect to the security interests of the First Priority Senior Secured Notes; and -- after the full payment of the First Priority Senior Secured Notes, cash sweep prepayment on excess cash balances over US$5 million. The CUSIP number for the Second Priority Senior Secured Notes is 803895AF8. Further, holders of the High Yield Bonds received, in exchange for capitalization of the balance of their claim of approximately US$274 million in principal and unpaid interest, 78 percent of the economic interest in the equity of Reorganized Satmex and 43 percent of the voting shares, comprised of 7,166,667 Series B shares and 29,395,833 Series N shares. The shares have been deposited in a trust and bondholders have been issued Units representing their interest in the trust based on 1 Unit issued for each US$1,000 of face amount of the old 10-1/8% Notes due 2004. Each Unit represents a proportional interest in approximately 22.396 Series B shares and 91.862 Series N shares. A Global Trust Certificate representing the Units has been issued to the Depository Trust Corporation, and the CUSIP number of the Units is L2399K107. The remaining economic equity of Reorganized Satmex is held by Satmex's current shareholders, 2 percent by Principia and Loral, and 20 percent by the Mexican Government, directly and through Servicios Corporativos Satelitales, S.A. de C.V. The Mexican Government will own voting shares in Reorganized Satmex representing 10% and the rights to proceed from shares representing an additional 45%. Reorganized Satmex has a total of 9,166,667 Series A shares, 7,500,001 Series B Shares, and 30,208,331 Series N shares. Reorganized Satmex Board of Directors Reorganized Satmex's Board of Directors consists of: -- Luis Rebollar Corona, former Chairman and CEO of Grupo Sidek and Grupo Situr, -- Sergio M. Autrey Maza, Satmex's former Chairman of the Board and interim CEO, -- Vicente Ariztegui Andreve, President and founding partner of Grupo Arizan, S.A. de C.V., Nexxtrade, S.A. de C.V. and Marmiitalia, S.A. de C.V., -- Alberto Mulas Alonso, founding partner of Cresce Consultores, S.C., -- Thomas S. Heather, a partner in the Mexico City office of White & Case, LLP and the Conciliador in the company's former Concurso Mercantil proceeding, -- Roberto Enrique Colliard Lopez, Director General and CEO of Pendulum, S. de R.L. de C.V., and -- Robert L. Rauch, a Partner and Director of Research for Gramercy Advisors LLC. Erwin Starke, the current CEO of Secured Capital, S.A. de C.V., is chairing the Audit Committee for Reorganized Satmex. Satelites Mexicanos, S.A. de C.V., provides fixed satellite services in Mexico. Satmex provides transponder capacity via its satellites to customers for distribution of network and cable television programming, direct-to-home television service, on-site transmission of live news reports, sporting events and other video feeds. Satmex also provides satellite transmission capacity to telecommunications service providers for public telephone networks in Mexico and elsewhere and to corporate customers for their private business networks with data, voice and video applications. Satmex also provides the government of the United Mexican States with approximately 7% of its satellite capacity for national security and public purposes without charge, under the terms of the Orbital Concessions. The Debtor filed for chapter 11 petition on August 11, 2006 (Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles, S.C., and Quijano Cortina Lopez y de la Torre give legal advice in the Debtor's Mexican Bankrutpcy proceedings. UBS Securities LLC and Valor Consultores, S.A. de C.V., give financial advice to the Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq., and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP give legal advice to the Ad Hoc Existing Bondholders' Committee. Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc Senior Secured Noteholders' Committee. As of July 24, 2006, the Debtor has US$905,953,928 in total assets and US$743,473,721 in total liabilities. On May 25, 2005, certain holders of Satmex's Existing Bonds and Senior Secured Notes filed an involuntary chapter 11 petition against the Company (Bankr. S.D.N.Y. Case No. 05-13862). On June 29, 2005, Satmex filed a voluntary petition for a Mexican reorganization, known as a Concurso Mercantil, which was assigned to the Second Federal District Court for Civil Matters for the Federal District in Mexico City. On Aug. 4, 2005, Satmex filed a petition, pursuant to Section 304 of the Bankruptcy Code that commenced a case ancillary to the Concurso Proceeding and a motion for injunctive relief that sought among other things, to enjoin actions against Satmex or its assets (Bankr. S.D.N.Y. Case No. 05-16103). SATELITES MEXICANOS: Appoints Raul Cisneros as Chief Executive -------------------------------------------------------------- Satelites Mexicanos, S.A. de C.V. aka Satmex appointed Raul Cisneros Matusita to serve as the new CEO of Satmex, effective Nov. 30, 2006, to help chart a new direction for the company. Mr. Cisneros's appointment was made on the same day the company officially concluded its U.S. bankruptcy case. Mr. Cisneros brings to Satmex over 22 years of experience, specializing in turnaround strategies, asset sales and restructurings. Most recently, he has been an operative partner of Advent International Corp., supervising investments in mortgage lending institutions, leasing operations and turnaround of distressed assets. He was also Deputy Director General of Compania Mexicana de Aviacion through January of 2006, entrusted with the successful sale of Mexico's leading airline to Grupo Posadas, and for three years, Director of Asset Administration and Financial Planning. For five years, he was the CEO of Consultoria Internacional, a leading foreign exchange trader and from 1996 to 1999, he was appointed by Banco de Mexico to turnaround or sell troubled corporations. Mr. Cisneros succeeds Sergio Miguel Angel Autrey Maza, who was designated by Satmex's Board as interim CEO in February 2005. Mr. Autrey will continue serving as a member of Reorganized Satmex's Board of Directors. Mr. Cisneros, stated, "It is an honor to take the reins of this great company. I am excited about the opportunity to work together with the entire Satmex team and with our customers, suppliers and shareholders and other constituents towards long-term success." Mr. Cisneros added that, "The company is pleased that in only a matter of a few months, it exited its U.S. bankruptcy case having achieved the implementation of its restructuring set out in the restructuring agreement entered into between Satmex and representatives of its primary creditor constituencies in March of this year and approved by the Mexican Bankruptcy Court in Satmex's former Concurso Mercantil proceeding. This is a historic day for the employees of Satmex and everyone else that worked tirelessly to achieve these goals. The restructuring of our indebtedness and our speedy emergence from chapter 11 will enhance our financial stability and enable us to continue delivering our premier satellite services to our customer base going forward." Satelites Mexicanos, S.A. de C.V., provides fixed satellite services in Mexico. Satmex provides transponder capacity via its satellites to customers for distribution of network and cable television programming, direct-to-home television service, on-site transmission of live news reports, sporting events and other video feeds. Satmex also provides satellite transmission capacity to telecommunications service providers for public telephone networks in Mexico and elsewhere and to corporate customers for their private business networks with data, voice and video applications. Satmex also provides the government of the United Mexican States with approximately 7% of its satellite capacity for national security and public purposes without charge, under the terms of the Orbital Concessions. The Debtor filed for chapter 11 petition on August 11, 2006 (Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles, S.C., and Quijano Cortina Lopez y de la Torre give legal advice in the Debtor's Mexican Bankrutpcy proceedings. UBS Securities LLC and Valor Consultores, S.A. de C.V., give financial advice to the Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq., and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP give legal advice to the Ad Hoc Existing Bondholders' Committee. Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc Senior Secured Noteholders' Committee. As of July 24, 2006, the Debtor has US$905,953,928 in total assets and US$743,473,721 in total liabilities. On May 25, 2005, certain holders of Satmex's Existing Bonds and Senior Secured Notes filed an involuntary chapter 11 petition against the Company (Bankr. S.D.N.Y. Case No. 05-13862). On June 29, 2005, Satmex filed a voluntary petition for a Mexican reorganization, known as a Concurso Mercantil, which was assigned to the Second Federal District Court for Civil Matters for the Federal District in Mexico City. On Aug. 4, 2005, Satmex filed a petition, pursuant to Section 304 of the Bankruptcy Code that commenced a case ancillary to the Concurso Proceeding and a motion for injunctive relief that sought among other things, to enjoin actions against Satmex or its assets (Bankr. S.D.N.Y. Case No. 05-16103). Satmex emerged from bankruptcy protection on Nov. 30, 2006. VISTEON CORP: Amended Sr. Bank Debt Cues S&P to Affirm Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its bank loan and recovery ratings on auto supplier Visteon Corp.'s senior secured bank facility, following the announcement that the company will increase its term loan to US$1 billion from US$800 million. The secured loan rating is 'B' and the recovery rating is '2', indicating the expectation for substantial (80%-100%) recovery of principal in the event of a payment default. Proceeds from the term loan add-on will be used for general corporate purposes to support the company's liquidity needs amid difficult conditions in the U.S. automotive supplier industry. The corporate credit rating on Visteon is B/Negative/B-3. Ratings List Corporate credit rating B/Negative/B-3 US$1 billion secured term loan B Recovery rating 2 Headquartered in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the company has more than 170 facilities in 24 countries, including Mexico, and employs approximately 50,000 people. * MUNICIPALITY URUAPAN: Moody's Releases Joint Default Analysis --------------------------------------------------------------- In connection with Moody's Investors Service published rating results of the application of the joint default analysis or JDA methodology for non-U.S. regional and local governments or RLGs in the Americas, the rating agency affirmed the Municipality of Uruapan's issuer ratings at Ba2 and A2 .mx, with a stable outlook. The rating is based on: -- a BCA of 12, -- Ba1 rating on the State of Michoacan, -- 20% probability of support and, -- 90% default dependence. In October 2006, Moody's published a Special Comment report, entitled "The Application of Joint Default Analysis to Regional and Local Governments". The JDA methodology formally disaggregates the ratings of RLGs into four components: (i) an assessment of the RLG's baseline credit risk (on a scale of 1 to 21, where 1 represents the equivalent risk of Aaa, 2 represents Aa1 and so forth), (ii) the higher-tier or supporting government's domestic currency rating, (iii) an estimate of the default dependence between the RLG and the supporting government (expressed as a percentage), and (iv) an estimate of the likelihood of extraordinary support from the supporting government (expressed as a percentage). The application of JDA in the Americas resulted in 24 RLG ratings upgraded, 75 RLG ratings affirmed, and ratings on 2 associated entities upgraded. As a reflection of the application of JDA to government related issuers (GRIs), for which certain RLGs are the supporting governments, Moody's also raised the ratings on 6 GRIs. * STATE OF VERACRUZ: Moody's Releases Joint Default Analysis ------------------------------------------------------------ In connection with Moody's Investors Service published rating results of the application of the joint default analysis or JDA methodology for non-U.S. regional and local governments or RLGs in the Americas, the rating agency affirmed the State of Veracruz's issuer ratings at Ba1 and 12 .mx, with a stable outlook. The rating is based on: -- a BCA of 11, -- Ba1 rating on the Government of Mexico, -- 5% probability of support and, -- 90% default dependence. Moody's also affirmed senior secured debt ratings at Baa3/Aa2. In October 2006, Moody's published a Special Comment report, entitled "The Application of Joint Default Analysis to Regional and Local Governments". The JDA methodology formally disaggregates the ratings of RLGs into four components: (i) an assessment of the RLG's baseline credit risk (on a scale of 1 to 21, where 1 represents the equivalent risk of Aaa, 2 represents Aa1 and so forth), (ii) the higher-tier or supporting government's domestic currency rating, (iii) an estimate of the default dependence between the RLG and the supporting government (expressed as a percentage), and (iv) an estimate of the likelihood of extraordinary support from the supporting government (expressed as a percentage). The application of JDA in the Americas resulted in 24 RLG ratings upgraded, 75 RLG ratings affirmed, and ratings on 2 associated entities upgraded. As a reflection of the application of JDA to government related issuers (GRIs), for which certain RLGs are the supporting governments, Moody's also raised the ratings on 6 GRIs. * STATE OF YUCATAN: Moody's Releases Joint Default Analysis ----------------------------------------------------------- In connection with Moody's Investors Service published rating results of the application of the joint default analysis or JDA methodology for non-U.S. regional and local governments or RLGs in the Americas, the rating agency affirmed the State of Yucatan's issuer ratings at Ba2 and A2 .mx, with a stable outlook. The rating is based on: -- a BCA of 12, -- Ba1 rating on the Government of Mexico, -- 5% probability of support and, -- 90% default dependence. Moody's also affirmed the senior sewcured debt ratings at Baa3/Aa2. In October 2006, Moody's published a Special Comment report, entitled "The Application of Joint Default Analysis to Regional and Local Governments". The JDA methodology formally disaggregates the ratings of RLGs into four components: (i) an assessment of the RLG's baseline credit risk (on a scale of 1 to 21, where 1 represents the equivalent risk of Aaa, 2 represents Aa1 and so forth), (ii) the higher-tier or supporting government's domestic currency rating, (iii) an estimate of the default dependence between the RLG and the supporting government (expressed as a percentage), and (iv) an estimate of the likelihood of extraordinary support from the supporting government (expressed as a percentage). The application of JDA in the Americas resulted in 24 RLG ratings upgraded, 75 RLG ratings affirmed, and ratings on 2 associated entities upgraded. As a reflection of the application of JDA to government related issuers (GRIs), for which certain RLGs are the supporting governments, Moody's also raised the ratings on 6 GRIs. =============== P A R A G U A Y =============== VISION SA: S&P Affirms B- Long-Term Counterparty Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Vision S.A. de Finanzas E.C.A. to positive from stable. The 'B-' long-term counterparty credit rating was also affirmed. Vision is a financial company dedicated to providing loans and services in the microfinance industry and the traditional consumer segment in the middle- and lower-income sectors in Paraguay. The ratings on Vision balance the risks inherent to operating in risky market segments in the volatile Paraguayan financial system with the company's positive features, which include cautious asset liability management policies, management's experience in developing businesses in environments of high financial stress, and good revenue diversification, with a relatively high participation of fee income in total revenues for a company of its size and profile. "The change in the outlook to positive reflects our expectation that, despite Paraguay's still-high operating and sovereign risks, the successful implementation of changes aimed at increasing efficiency and improving management tools, along with better asset quality and coverage ratios, will enable Visi�n to improve its present competitive position without a deterioration of its credit portfolio," said Standard & Poor's credit analyst Pablo Gamble. Meanwhile, the inability to receive new capital contributions to sustain current growth levels, along with a major drawback in Paraguay's economy, would result in a downward revision of its positive outlook and ratings. ======= P E R U ======= CHINA FISHERY: Moody's Rates Proposed US$200MM Notes at (P)B1 ------------------------------------------------------------- Moody's Investors Service has assigned a provisional (P)B1 corporate family rating to China Fishery Group Ltd. or CFG and a provisional (P)B1 rating to the proposed 7-year US$200 million senior notes to be issued by CFG Investment SAC. The bond is unconditionally and irrevocably guaranteed by CFG. The bond proceeds will be used to refinance a loan facility drawn down for the acquisition of Alexandra SAC (Alexandra) in Peru, repayment of certain loans, general corporate uses and potential strategic investments. The outlook on the ratings is stable. This is the first time that Moody's has assigned ratings to CFG. Moody's expects to affirm the ratings and remove them from provisional status upon completion of the bond issuance and upon repayment of the loan facility for the acquisition. CFG's ratings reflect its competitive and established position in the supply of frozen fish to the global market and especially to China's growing market, as well as its low cost structure compared with its global peers. Meanwhile, the rating is constrained by the company's aggressive expansion and acquisition strategy and the uncertainty associated with the evolving operating environment in Russia and Peru. In accordance with Moody's global rating methodology for Natural Product Processors, CFG's business profile, market position, revenue growth profile, profitability and historical financial profile are consistent with a rating profile of Ba or higher. However, these strengths are tempered by CFG's relatively modest size by global standards, aggressive financial policy and concentration in mainly two business segments. CFG has a fixed share of the total Russian Alaskan Pollock industrial and coastal quotas. Moreover, Alexandra is one of the top 6 fishmeal exporters in Peru which partially mitigates the aforementioned risks. Moody's believes that a (P)B1 rating is appropriate in light of the potential regulatory and political risks that usually exist in emerging and/or developing markets such as those in CFG's key operating markets of Russia (Baa2/stable) and Peru (Ba3/positive). CFG's business model is dependent upon a consistent fishing quota or licensing system, availability of fish in the ocean as determined annually by the relevant national authority, as well as the company's ability to fully utilize its quota/license. Moody's notes that CFG has had a utilization rate of 95% for its fishing quota in Russia over the past 5 years. Furthermore, CFG's 100% debt-funded acquisition of Alexandra also marks the company's entry into the Peruvian fishing and fishmeal processing market. This 100% debt-funded acquisition of US$103.6m, represented 60% of CFG's total equity of US$174m as of September 2006. The rating is likely to experience upward pressure if CFG 1) manages to successfully integrate Alexandra and achieves its business plan; 2) stabilizes its expansion strategy; and 3) maintains a prudent financial profile with FCF/Debt >10% and EBIT/Interest >4x. On the other hand, the rating may experience a downward trend if 1) debt/EBITDA consistently stays above 4-5x and/or EBIT/interest drops below 1.5-2x resulting in a deteriorating operating environment, aggressive dividend payout, further debt-funded acquisition and expansion; 2) its cash holding policy changes so that cash falls below US$10-15m; and 3) any financial support provided to other Pacific Andes group companies. China Fishery Group Ltd's main operations are deep-sea industrial fishing in the Pacific and the provision of management services for fishing vessels. It employs over 600 crew and officers. Its catches are processed onboard and frozen, packed and delivered to market. It recently acquired Alexandra SAC, which operates in Peru's fishing and fishmeal processing markets. ===================== P U E R T O R I C O ===================== ADELPHIA COMM: Majority of Creditors Vote to Accept Plan -------------------------------------------------------- Results of the voting on the Adelphia Communications Corp.'s Fifth Amended Joint Plan of Reorganization were filed with the United States Bankruptcy Court for the Southern District of New York. The deadline for voting on the Plan was Nov. 20, 2006, for beneficial holders holding securities through intermediaries and Nov. 27, 2006, for all other parties in interest. The voting results showed broad-based support for the Plan. On an aggregate basis, 25 of the 30 classes voting on the Plan voted to accept the Plan, including the classes representing the ACC Senior Notes and the ACC Subordinated Notes. The holder of claims in the Century Bank Administrative Agent Class has been given an extension until Dec. 4, 2006, to vote on the Plan with respect to all of its claims. Four classes failed to accept the Plan. Of the non-accepting classes, three are classes of Bank Syndicate Claims with whom the Debtors have entered into a stipulation permitting the holders of Claims to change their votes prior to commencement of the confirmation hearing, subject to extension by the proponents. The fourth non-accepting class is the Class of FrontierVision Holdco Notes Claims. While a majority of the holders of Claims in that Class voted to accept the Plan, under applicable bankruptcy law, the Class of FrontierVision Holdco Note Claims did not accept the Plan because less than two thirds in dollar amount of the allowed claims in the Class voted to accept the Plan. The company stated that, "We are pleased at the broad support for the Plan among many different classes of creditors throughout the Company's capital structure. The Co-Proponents intend to commence the hearing to consider confirmation of the Plan as scheduled on Dec. 7, 2006, before the Honorable Robert J. Gerber in the United States Bankruptcy Court for the Southern District of New York." The voting results are available at: http://www.adelphiarestructuring.com. Based in Coudersport, Pa., Adelphia Communications Corporation (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 No. 150; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ALBERTO-CULVER: Reorganizes Business After Separation from Sally ---------------------------------------------------------------- The Alberto-Culver Co. disclosed a reorganization following its recent separation from Sally Beauty Holdings, Inc., into a separate, publicly traded company. V. James Marino, President & Chief Executive Officer of the company, commented, "Alberto-Culver has always prided itself on being a lean and nimble organization, so the changes that were needed are not dramatic. This represents a right-sizing, looking primarily at those areas that related to services we were maintaining in support of Sally and corporate activities that could be scaled back to match the needs of a smaller company." As part of the reorganization, two marketing units will be combined into a single unit and some specific international services will be outsourced or combined into regional offices according to Mr. Marino. He said that all personnel impacted by the changes had been notified and that this reorganization and the financial charges related to it would be substantially completed by the end of the fiscal year 2007 second quarter. The company's worldwide workforce of approximately 3,800 will be reduced by approximately 90 as a result of the changes. The company expects to take restructuring charges of approximately US$13 million and US$3 million in its fiscal year 2007 first and second quarters, respectively, related to the reorganization. These expected restructuring charges are in addition to other first quarter charges related to the separation transaction that were previously announced including lump sum payments totaling approximately US$14 million to its former president and chief executive officer and the former chairman of Sally Beauty and a non-cash charge of approximately US$18 million for the acceleration of stock options and restricted stock as of the closing date of the separation transaction. A portion of these disclosed charges, along with expenses incurred in connection with the separation transaction, will be included in discontinued operations in Alberto-Culver's fiscal year 2007 statement of earnings. The company plans to sell its corporate airplane in early 2007 and that it expects to close its manufacturing facility in Dallas, Texas by the end of 2007. Alberto-Culver Company manufactures, distributes and markets leading personal care products including Alberto VO5, St. Ives, TRESemme and Nexxus in the United States and internationally. Several of its household/grocery products such as Mrs. Dash and Static Guard are niche category leaders in the U.S. Its Pro-Line International unit is the second largest producer in the world of products for the ethnic hair care market with leading brands including Motions and Soft & Beautiful. Its Cederroth International unit is a major consumer goods marketer in the Nordic countries. New Sally Holdings, Inc., headquartered in Denton, Texas, will be a leading national retailer and distributor of beauty supplies with operations under its Sally Beauty Supply and Beauty Systems Group businesses. For the fiscal year ended Sept. 30, 2005, New Sally's revenues exceeded US$2.2 billion. The company has stores in Canada, Mexico, Puerto Rico, the U.K., Ireland, Germany and Japan. * * * As reported in the Troubled Company Reporter on Oct. 26, 2006, Moody's Investors Service assigned first time ratings, including a corporate family rating of B2 and a speculative grade liquidity rating of SGL-2, to Sally Holdings, LLC. The rating outlook is stable. The ratings are conditional upon review of final documentation. These are the rating actions: -- Corporate family rating at B2 -- Probability-of-default rating at B2 -- US$400 million senior secured guaranteed bank revolving credit facility at Ba2 (LGD 1, 7% LGD rate) -- US$1.07 billion senior secured guaranteed term loans at B2 (LGD 4, 50% LGD rate) -- US$430 million senior unsecured guaranteed notes at B2 (LGD 4, 55% LGD rate) -- US$280 million unsecured senior subordinated guaranteed notes at Caa1 (LGD 6, 93% LGD rate) -- Speculative Grade Liquidity Rating of SGL-2 PILGRIM'S PRIDE: Declares US$2.25 Per Share Quarterly Dividend -------------------------------------------------------------- The Board of Directors of Pilgrim's Pride Corp. has declared a quarterly dividend of US$2.25 per share. The quarterly dividend is payable on Dec. 29, 2006, to shareholders of record at the close of business on Dec. 15, 2006. Headquartered in Pittsburgh, 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. * * * Moody's Investors Service held its Ba2 Corporate Family Rating for Pilgrim's Pride Corp. in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Consumer Products sector. In addition, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on the company's note issues, including an LGD6 rating on its USUS$100 million 9.250% Sr. Sub. Global Notes Due Nov. 15, 2013, suggesting noteholders will experience a 95% loss in the event of a default. ================================= T R I N I D A D & T O B A G O ================================= BRITISH WEST: Caribbean Airlines Gets First Boeing 737-800 ---------------------------------------------------------- Caribbean Airlines, which will take the place of British West Indies Airlines aka BWIA next year, has received a repainted and re-outfitted Boeing 737-800, its first aircraft, Daily News reports. According to Daily News, two 737s will be delivered by the end of 2006. Caribbean Airlines told Daily News that its focus will be beyond the Leeward and Windward Islands, which was formerly the British West Indies from where the original BWIA took its name. Caribbean Airlines aims to compete with the merged Caribbean Star-LIAT in providing interconnecting flights in the entire Caribbean region. Peter Davies, the chief executive officer of Caribbean Airlines, explained to Daily News, "Caribbean Airlines is rooted in Trinidad and Tobago and the Caribbean, but its outlook is international: a Caribbean carrier with an international perspective. It is a pan-Caribbean airline serving the world." According to Daily News, Mr. Davies is positive that Caribbean Airlines could be bigger than BWIA within a matter of months, as it aims for profitability by 2009. Caribbean Airlines will operate with around a third of BWIA's 1,800 staff. It is recruiting and has received applications from both within and outside BWIA, Daily News states. British West Indies aka BWIA was founded in 1940, and for more than 60 years has been serving the Caribbean islands from Trinidad and Tobago, the hub of the Americas, linking the twin island republic and many other Caribbean islands with North America, South America, the United Kingdom and Europe. The airline was losing USUS$1 million a week due to poor operational management. The Trinidad & Tobago government, which owns 97.188% of BWIA, decided to shut down the airline on Dec. 31, 2006, and reopen a new airline that will be called Caribbean Airlines. The government approved a substantial capital injection for the creation of Caribbean Airlines. BRITISH WEST: Injects TT$2 Billion for Caribbean Airlines --------------------------------------------------------- The Trinidad and Tobago government has injected TT$2 billion to close British West Indies Airlines aka BWIA and start up Caribbean Airlines, Newsday reports, citing Conard Enill -- the nation's minister of finance. Minister Enill explained to Newsday that the TT$2 billion would come from the Consolidated Fund. Arthur Lok Jack, Caribbean Airlines chairperson, told the Jamaica Gleaner that the new entity was starting with a clean slate as a fully capitalized airline with a clean balance sheet that will help it handle the challenges of the global aviation industry and usher in a new chapter in Caribbean aviation. According to Newsday, Minister Enill said BWIA's closure would cost TT$2 billion, from which TT$300 million will go to Caribbean Airlines in 2007. Minister Enill told Newsday that Caribbean Airlines would be a no-frills, low cost, high efficiency airline. The staff reduction would come through decreased operations, efficiency improvement, and outsourcing to specialist providers. The J$2 billion would be used for: -- TT$604 million Voluntary Separation of Employment, as about 1,000 workers will lose their jobs; -- TT$170 million working capital (to cover BWIA's losses to the end of December); -- TT$321 million debt reduction (to settle existing debt); -- TT$422 million funds to close BWIA's balance sheet (liabilities and working capital); -- TT$82 million retention of key transition personnel in Caribbean Airlines; -- TT$132 million re-engineering information technology systems; -- TT$94 million funds to re-deliver the A30, A340 and A737 aircraft; and -- TT$315 million working capital to support future operations of Caribbean Airlines. According to The Gleaner, different reports have put BWIA's indebtedness at or around TT$630 million. The airline's financials for 2004 recorded a TT$655.9-million accumulated deficit, including after-tax losses of US$15.36 million ending Dec. 31. Auditors PricewaterhouseCoopers told The Gleaner that BWIA's current liabilities exceeded its current assets by TT$695.43 million. The Gleaner reports that a rights issue, which raised US$40 million, helped pay down some US$33 million of debt, leaving BWIA with net liabilities of US$7.6 million at the close of 2004. The Trinidad and Tobago government has spent TT$3 billion since 1995 in subsidizing BWIA, Newsday says, citing Minister Enill. Minister Enill told Newsday that the Trinidad and Tobago to Heathrow, London, route is unprofitable for BWIA as most passengers come from the United Kingdom and fly to Barbados. Caribbean Airlines would take UK-bound passengers as far as Barbados, after which, British Airways -- the new partner of Caribbean Airlines -- would complete the long haul to Gatwick-London Airport. Caribbean Airlines will lose BWIA's landing rights for Heathrow, which exist on a use it or lose it basis. According to Newsday, the minister said that Caribbean Airlines would operate in: -- Miami, -- Toronto, -- New York, -- Kingston (Jamaica), -- Georgetown (Guyana), -- Paramaribo (Suriname), -- St Martin, and -- Antigua and Barbuda. Newsday underscores that Minister Enill believed that outsourcing of services and re-employment of former staff would be readily available in Trinidad and Tobago. All local and foreign trade unions have signed supplemental agreements, and the BWIA management has agreed to resolve all outstanding union grievances. Minister Enill told Newsday, "Supplemental agreements have not been registered in the Industrial Court, with both the unions and BWIA basically aligned in the challenge against the current court ruling. BWIA has appealed the judgment of the Court of Appeal." The US unions had found BWIA's severance offer to its US staff to be very generous, Minister Enill told Newsday. However, the minister said that BWIA thought it inappropriate to use taxpayers' money to offer them the same terms and conditions as Trinidad and Tobago workers. Meanwhile, Harry Partap -- a member of Parliament for Nariva, predicted that the Caribbean Airlines will fail as the airline has a poor management team, 1955FM relates. He said that the airline will suffer the same fate as BWIA. According to 1955FM, Mr. Partap filed a motion in the lower house, debating the shutting down of BWIA. He called on the government to give a full breakdown as to why it wants a shutdown. British West Indies aka BWIA was founded in 1940, and for more than 60 years has been serving the Caribbean islands from Trinidad and Tobago, the hub of the Americas, linking the twin island republic and many other Caribbean islands with North America, South America, the United Kingdom and Europe. The airline has reportedly been losing US$1 million a week due to poor operational management. An employee survey revealed that lack of responsibility by the management is a major issue in the company. A number of key employees moved to other companies caused by a deadlock in the airline's negotiation with its labor union. The Trinidad & Tobago government, which owns 97.188% of BWIA, decided to shut down the airline on Dec. 31, 2006, and reopen a new airline that will be called Caribbean Airlines. The government approved a substantial capital injection for the creation of Caribbean Airlines. BRITISH WEST: Pan Trinbago Furious Over Airline's Motif Change -------------------------------------------------------------- Pan Trinbago, a steelpan organization, is angry at the change of the longstanding pan motif that adorned all planes of British West Indies Airlines aka BWIA, Newsday reports. As reported in the Troubled Company Reporter-Latin America on Oct. 18, 2006, Peter Davies -- the chief executive officer of Caribbean Airlines, which will take the place of BWIA -- said that the new airline would use the image of a hummingbird as its logo, as the hummingbird is found in the New World and Trinidad and Tobago was known as the Land of the Hummingbird. Patrick Arnold, the head of Pan Trinbago, told Newsday that the organization was upset at the decision to remove the steelpan motif from the tailfin of airplanes acquired to serve routes flown by Caribbean Airways. He said that the hummingbird can't be seriously proffered as a Trinidad and Tobago trademark, since this bird species is not unique to the country. Mr. Arnold said in a press release, "As far as we are aware, there has been no complaint from the traveling public about the steelpan motif, nor does it contravene any known regulation regarding airplane markings. In fact, the change appears to have resulted from nothing but a mixture of capricious thought and unchallenged authority." If the inspiration for representing the steelpan on BWIA aircraft remained intact as a mechanism for steering attention to Trinidad and Tobago's musical creativity, the promotional message communicated by the design displayed on the tailfins of the country's airplanes should reflect that concept in a more definitive way taht a hummingbird picture could never do, Newsday says, citing Mr. Arnold. Mr. Arnold told Newsday, "While Trinidad and Tobago was once described as the Land of the hummingbird, several countries, some with infinitely greater concentration of the species, now claim it as their identifier. We are therefore suitably astonished by the decision to use a logo of such ubiquity that no viewer is likely to perceive it as exclusively Trini." Pan Trinbago urged in a press release that Caribbean Airlines and the Trinidad and Tobago government reconsider the hummingbird branding of its equipment and reinstate the steelpan as a matchless identifier of Trinidad and Tobago's cultural heritage. British West Indies aka BWIA was founded in 1940, and for more than 60 years has been serving the Caribbean islands from Trinidad and Tobago, the hub of the Americas, linking the twin island republic and many other Caribbean islands with North America, South America, the United Kingdom and Europe. The airline has reportedly been losing US$1 million a week due to poor operational management. An employee survey revealed that lack of responsibility by the management is a major issue in the company. A number of key employees moved to other companies caused by a deadlock in the airline's negotiation with its labor union. The Trinidad & Tobago government, which owns 97.188% of BWIA, decided to shut down the airline on Dec. 31, 2006, and reopen a new airline that will be called Caribbean Airlines. The government approved a substantial capital injection for the creation of Caribbean Airlines. ============= U R U G U A Y ============= CIRSA BUSINESS: Moody's Lowers Corporate Credit Rating to B1 ------------------------------------------------------------ Moody's Investors Service today downgraded the corporate family rating of Cirsa Business Corporation SA to B1 from Ba3, the rating of Cirsa Finance Luxembourg S.A.'s EUR270 million senior notes due 2014 to B2 from B1 and the rating of Cirsa Capital Luxembourg S.A.'s EUR130 million senior notes due 2012 to B3 from B2. Concurrently, Moody's assigned a provisional (P)B3 rating to the additional EUR100 million senior notes due 2012 expected to be issued by Cirsa Capital Luxembourg on similar terms and conditions to the existing EUR130 million notes. The outlook on all ratings is stable. The downgrades conclude the rating review initiated on Oct. 2, 2006, and reflect Moody's view that, despite Cirsa's improved operating performance in the first nine months of 2006, the improvement in credit metrics has been slower than anticipated resulting in the credit metrics today not being in line with Moody's expectations for the rating category. While Cirsa's business risk profile continues to reflect "Ba" characteristics, supported by its clear leadership in the fragmented Spanish gaming market and the relatively favourable fundamentals of the Spanish and Latin American gaming markets, the company currently displays credit metrics more commensurate with a "B" rating. Moody's expects Cirsa to post an Adjusted Debt/Adjusted EBITDAR ratio of around 5.6x and a Retained Cash Flow to Adjusted Debt ratio of 10% by year-end 2006. Moody's adjusted debt includes a EUR343 million adjustment for operating leases and does not include cash balances. In Moody's opinion, Cirsa's rating as a result of this action will now become more adequately positioned at the B1 rating category. Standard & Poor's expects the company to become more strongly positioned within the rating category as the strategic initiatives being implemented by the new management team are successfully executed resulting in anticipated improvements in credit metrics. In Moody's opinion, the task of improving financial metrics will prove challenging for Cirsa as a result of: (i) the company's publicly stated intention to continue to pursue external growth opportunities, (ii) the high concentration of profitability in the two riverboat casinos in Buenos Aires, which are exposed to high regulatory and litigation risk, and (iii) the delays associated with achieving profitability in some of the divisions, particularly Manufacturing and Interactive. However, Moody's recognizes these positive factors: (i) Cirsa's improved operating performance during 2006, (ii) the strategic initiatives launched by the new management team aimed at improving efficiency and streamlining operations (as reflected by the combination of the Manufacturing and Interactive divisions into a unified new B2B division), which should have a direct impact on EBITDA going forward, (iii) the commitment to more rigorous investment criteria (as shown by the discipline displayed by the company in recent licence bids where Cirsa was outbid in the bidding processes for some casino licenses in Chile and in Lloret de Mar), (iv) the improvement in profitability at the new casinos in Latin America, which will progressively reduce the contribution of the Buenos Aires casino to the overall EBITDA of the group, (v) the commitment to reach specific financial targets such as Net debt/EBITDA (as reported by the company) below 4x, and (vi) the improved debt maturity profile following the issuance of the additional EUR100 million notes which will be used to refinance short-term debt. The ratings that are affected are: -- Cirsa Business Corporation S.A's corporate family rating: Downgraded to B1 from Ba3; -- Rating of Cirsa Finance Luxembourg S.A.'s EUR270 million senior notes due 2014: Downgraded from B1 to B2; -- Rating of Cirsa Capital Luxembourg S.A.'s EUR130 million senior notes due 2012: Downgraded from B2 to B3; and -- Provisional rating of Cirsa Capital Luxembourg S.A.'s EUR100 million senior notes due 2012: (P)B3 Moody's issues provisional ratings in advance of the final sale of securities, and these ratings only represent Moody's preliminary opinion. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavour to assign definitive rating to the securities. A definitive rating may differ from a provisional rating. Headquartered in Terrassa, Spain, Cirsa is a leading Spanish gaming company, with substantial operations in Brazil, The Dominican Republic, Venezuela, Panama, Suriname, Peru, Argentina and Uruguay. For the twelve months ended September 2006, Cirsa had revenues of EUR1.643 billion and EBITDA of EUR123.7 million. CIRSA BUSINESS: S&P Cuts Corporate Credit Rating to B+ from BB- --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Spanish gaming company Cirsa Business Corp. SA to 'B+' from 'BB-'. The outlook is stable. At the same time, the senior unsecured debt rating on related entity Cirsa Finance Luxembourg S.A. was lowered to 'B' from 'B+' and the senior unsecured debt rating on Cirsa Capital Luxembourg S.A. was lowered to 'B-' from 'B'. Cirsa Capital Luxembourg's proposed ?100 million bond issue due 2012 has been assigned a preliminary rating of 'B-', subject to receipt of final documentation. All bonds are guaranteed by Cirsa. "The one-notch downgrade reflects Cirsa's aggressive financial profile and a shortfall in achieving expected leverage ratios," said Standard & Poor's credit analyst Philip Temme. Standard & Poor's warned in May 2006 that a substantial improvement in operating cash flows would be required to avoid a downgrade, and set 2006 target leverage ratios of lease-adjusted debt to EBITDA below 4x and funds from operations to adjusted debt of 15%. Given that Cirsa's lease-adjusted debt to EBITDA was well in excess of this target in the 12 months to Sept. 30, 2006, and FFO to debt was 14% at the same date, key leverage measures remain outside levels commensurate with a 'BB-' rating. Assuming the bond refinancing proceeds as planned, thereby improving the group's liquidity position, Standard & Poor's expects the outlook for Cirsa to remain stable. "To maintain the ratings, we expect Cirsa to continue to exercise capital expenditure restraint and to achieve lease-adjusted debt to EBITDA of about 5x and FFO to net debt of about 15%," Mr. Temme added. The outlook could be revised to positive in the medium term if the new CEO's restructuring measures and commitment to deleveraging feed through successfully to key credit measures--specifically, a return to lease-adjusted debt to EBITDA of about 4x. Headquartered in Terrassa, Spain, Cirsa is a leading Spanish gaming company, with substantial operations in Brazil, The Dominican Republic, Venezuela, Panama, Suriname, Peru, Argentina and Uruguay. In H1 2006, Cirsa generated net revenues of EUR820 million. DIVINO SA: Moody's LatAm Puts Caa1 Rating on US$2.4MM Bonds ----------------------------------------------------------- Moody's Latin America assigned a Caa1 global local currency rating and a Ba3.uy national scale rating to Divino's US$2.4 million bonds. The rating outlook is negative. The ratings primarily reflect the company's weak cash generation, tight liquidity, small size and geographic concentration. However, the ratings also incorporate Divino's leading position in the Uruguayan market, its strong market share despite increased competition, and long track record in the business. Low debt levels have also been considered when assigning the ratings. The key rating factors considered in assigning Divino's ratings are: -- Scale & Diversification Divino is a small Uruguayan mattress producer with total sales amounting to approximately US$20 million. Although very small when compared to its international peers, it is the market leader in Uruguay with more than 50% market share. -- Franchise Strength and Growth potential While Divino is the market leader in Uruguay, the entrance of Sealy's products into the market last year has strongly impacted Divino's traditionally high market share. And while Divino is well-known in Uruguay, the brand has no strength outside that country. -- Cost Efficiency & Profitability Divino is a vertically integrated company that shows adequate margins for its rating category. Despite the recent cost increases in some of its raw materials and other cost, such us salaries, Divino has been able to sustain its margins and profitability. Going forward Moody's will monitor Divino's ability to pass through additional cost increases in a more competitive scenario. -- Financial Policy and Liquidity As it is a closed, family-owned company, it has been usually reluctant to take on debt, as shown by the low debt levels on its balance sheet. As a result, internally generated cash was consumed by working capital needs, resulting in negative FCF ratios. -- Financial Strategy and Financial Metrics Increased working capital needs and internally financed plant investments have left the company with negative FCF over the last four fiscal years. In Moody's opinion, the strategy adopted by management could be risky as it leaves the company without any financial flexibility. Negative Outlook The negative outlook reflects Moody's concern over the sustainability of the company's financial policy, given its low financial flexibility driven by the minimal cash on its balance sheet and its permanent negative free cash flows. Concern over its ability to sustain or stabilize its market share and sustain profits as it faces new competitors in its market, as well as renewed cost pressures, are also adding downward pressure to the ratings. What Could Change the Rating Down Increased competition that further diminishes Divino's market share or profitability and continued negative free cash flows in relation to debt could lead to a rating downgrade. What Could Change the Outlook Back to Stable Moody's would consider changing the outlook to stable if Divino showed strong evidence that it is able to consistently generate positive FCF in relation to debt, as well as sustainable profits in a more competitive environment. Stabilizing its declining market share, improved cash management, and higher levels of cash on its balance sheet could also help return the outlook to stable. Founded in 1935, Divino S.A. is a small Uruguayan family-owned company, which manufactures, sells and exports spring and rubber-foam mattresses and polyurethane products. Total sales for the fiscal year ended June 2006 reached approximately U$ 20 million. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Absorbs About 1,700 Temporary Workers ------------------------------------------------------------- Under the slogan, "Labor justice for those who deserve justice," 1,799 temporary workers of Petroleos de Venezuela SA Exploracion y Produccion Occidente received the cards that identify them as permanent workers of the oil industry, in recognition for the tasks they have been performing for years as contracted personnel. "Today is an important day, we are doing justice to all those companions who have worked for years as contracted workers and finally today become part of PDVSA's payroll, in keeping with the promise made by the minister of Energy and Petroleum and president of Petroleos de Venezuela, Rafael Ramirez", stated the vice-president of Exploration and Production, Luis Vierma, after giving out the new identification cards to the workers. Mr. Vierma also highlighted that this new contingent of workers will contribute to continue taking the benefits of oil to the sovereign people and to the places where the company carries out operations. This differs from the scheme used in the old Petroleos de Venezuela, which installed the drills and withdrew after extracting the oil, leaving hunger and misery in the population. Petroleos de Venezuela SA -- http://www.pdv.com/-- 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. The company has a commercial office in China. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. * NASDAQ STOCK: S&P Lowers Counterparty Credit Rating to BB ----------------------------------------------------------- Standard & Poor's Rating Services lowered its long-term counterparty credit rating on The Nasdaq Stock Market Inc. to 'BB' from 'BB+'. The 'BB+' rating on Nasdaq's existing bank loan facility, which financed the initial 29% stake in the London Stock Exchange (LSE), is affirmed, while the Recovery Rating is revised to '1' from '2'. The ratings were removed from CreditWatch Negative where they were placed on Nov. 20, 2006. The outlook is stable. At the same time, Standard & Poor's has assigned our 'BB+' bank loan rating to the proposed US$750 million senior secured Term Loan B, US$2.0 billion senior secured Term Loan C, and US$75 million revolver to be issued by Nasdaq, as well as the US$500 million senior secured Term Loan C to be issued by Nightingale Acquisition Ltd., a U.K.-based subsidiary of Nasdaq. The rating agency has assigned a Recovery Rating of '1', which indicates full recovery of principal in the event of default. In addition, Standard & Poor's has assigned our 'B+' rating to the proposed US$1.75 billion senior unsecured bridge loan to be issued by Nasdaq and NAL. The proceeds from the senior secured bank loans and senior unsecured bridge loan will be used to finance the acquisition of the 71% of LSE Group plc that Nasdaq does not already own and to refinance existing borrowings at both Nasdaq and the LSE. "The rating actions follow Nasdaq's disclosure of the details of its financing to acquire the remaining shares of the LSE at an offer price of GBP1,243 per ordinary share. The new ratings take into account the potential transformation in Nasdaq's franchise should it successfully acquire the LSE, but this is more than offset by Nasdaq's heavy reliance on issuing more debt to complete this transaction," said Standard & Poor's credit analyst Charles D. Rauch. If Nasdaq succeeds in acquiring the LSE, the combined organization would become a world-class stock market, operating on two continents and having a favorable venue for global corporate listings. The acquisition also brings some expense and technology synergies, but is not without risk. There is a high degree of integration risk, especially if Nasdaq proceeds on a "nonrecommended" basis, and the new debt financing places an extremely heavy burden on Nasdaq's balance sheet. We estimate the initial debt-to-EBITDA coverage will be more in line with lower rated corporations, but this would be offset by the potential cash flow generation at the combined organization. The outlook is stable. A combination with LSE would give Nasdaq a more diversified listing of corporate stocks in terms of both geography and industry, which should translate into less volatile and better quality of earnings over the long term. Ratings are currently constrained by Nasdaq's heavy debt burden and, secondarily, its weak tangible capital. If Nasdaq is successful in integrating the LSE and generating strong cash flows so it can quickly pay down debt, or if a third party buys out Nasdaq's existing stake at a gain, there is upside rating potential. Alternatively, ratings could be vulnerable if Nasdaq raises its offer price and needs to issue even more debt to acquire the LSE or if it acquires the LSE, but does not successfully integrate it. * Alvarez & Marsal Establishes Operations in Canada --------------------------------------------------- Alvarez & Marsal has expanded its North American operations to Canada with the opening of a Toronto office. Douglas R. McIntosh, the former head of KPMG's Canadian restructuring practice, has been named managing director and head of Alvarez & Marsal Canada ULC. He also joins the firm's executive committee for commercial restructuring in North America. A pioneer in the nascent corporate restructuring industry at the time of its inception in 1983, Alvarez & Marsal has advanced concepts associated with corporate renewal, and was also among the first specialist turnaround firms to expand its global reach in Europe in 2000, followed by the opening of offices in Asia and Latin America. The firm's professionals excel at problem-solving and value creation, serving in advisory and interim management roles (when necessary), including chief restructuring officer, chief executive officer, and chief financial officer, among a range of other key posts to accelerate operational and financial performance improvement. Alvarez & Marsal brings a results-oriented track record for providing turnaround and interim management, performance improvement and other advisory services to clients with cross-border operations. "The strong business and financial relationship between Canada and the U.S. makes a presence in Canada a natural step for Alvarez & Marsal," said Bryan Marsal, co-CEO of the firm. "In addition, because Alvarez & Marsal is not an audit and accounting firm, our business platform is not subject to conflict of interest or auditor independence issues, and can, therefore, provide more effective and responsive client service than the large public accounting firms. "Doug has enormous credibility in the legal, financial, political and business communities in Canada, and he knows how to get things done," Mr. Marsal added. "He exemplifies the kind of world class talent we seek to bring on board in Canada, and has already hit the ground running to help build our North American presence and team." "In the past several years, the Canadian market has seen a major shift in demand from creditor to company driven solutions," said Mr. McIntosh. "Corporate management and boards of directors are now taking a more proactive approach to dealing with problems and bringing in professionals who have the skill sets necessary to solve problems, implement positive change and maximize value for stakeholders. "Alvarez & Marsal's global presence, depth and breadth of expertise in crisis and interim management and traditional restructuring and insolvency services set the firm apart in the Canadian market," he added. "What's more, A&M brings comprehensive cross-border capability to clients, a critical element in today's highly integrated North American economy. That expertise is combined with the firm's suite of complementary services such as global corporate finance, performance improvement, dispute analysis and forensics, real estate and business consulting, among others. This comprehensive range of services will provide tremendous value to clients." With more than two decades of turnaround and restructuring experience, Mr. McIntosh has advised clients in both the private and public sectors, leading numerous engagements involving cross-border operations as well as significant out-of-court and Court sanctioned restructurings. He also has extensive experience serving in interim management roles, having operated and sold numerous businesses as court appointed or privately appointed receiver. Mr. McIntosh also has been very active in the recent insolvency reform process in Canada, serving as vice-chair of the Joint Task Force Steering Committee on Insolvency Reform and as a member of the Joint Legislative Review Task Force Committee, charged with responding to draft Bill C-55. Mr. McIntosh holds a bachelor's degree in commerce from Queen's University, where he has served as chair of the advisory board to the School of Business from 2000 to 2004, and currently sits as past chair. He is a chartered accountant, chartered insolvency and restructuring practitioner, and a Canadian trustee in bankruptcy. He is also a frequent speaker on restructuring matters, and an active member of the Insolvency Institute of Canada and the Canadian Association of Insolvency and Restructuring Professionals. Prior to joining A&M, Mr. McIntosh spent 25 years with KPMG, LLP in Canada, where he served as leader of the firm's Canadian restructuring practice for the past seven years. About Alvarez & Marsal Alvarez & Marsal -- http://www.alvarezandmarsal.com/-- 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. * Thomas Elliott Joins Alvarez & Marsal as Managing Director ------------------------------------------------------------ Thomas L. Elliott III has joined Alvarez & Marsal as a managing director and co-head of the firm's Public Sector group. Based in Atlanta, he joins co-heads William Roberti and Sajan George to lead the group, which serves entities including school systems and other federal, state and municipal government organizations. Bringing more than 26 years of executive leadership and professional services experience to the firm, Mr. Elliott specializes in providing turnaround, restructuring and performance improvement solutions. Prior to joining A&M, he was president of the Global Commercial Industries business unit of Unisys Corp., a global consulting services and technology company, and served as a member of its Executive Committee. Before that, he was an Executive Vice President at BearingPoint, where he served as a member of the firm's executive team. "Alvarez & Marsal has established a significant track record of bringing a business-like approach to improving the finances, operations and service delivery of public sector organizations, ranging from school districts to hospitals to government agencies," said Bryan Marsal, co-founder and co-CEO of Alvarez & Marsal. "Tom brings an outstanding background in consulting as well as a personal passion for serving the public interest. We are delighted to welcome him to our growing team of senior professionals dedicated to this sector." Earlier in his career, Mr. Elliott spent 22 years with Arthur Andersen, where he provided business consulting and financial advisory services to many Global 1000 companies across a wide range of industries. At Andersen, he held several executive leadership positions, serving as a member of the global executive team, the firm's top global leadership team, and on the board of partners. Mr. Elliott was also the managing partner of Andersen's U.S. business consulting practice and global communications and entertainment group. A certified public accountant, he earned a bachelor's degree in business administration and a master's degree in accounting from the University of Georgia. Alvarez & Marsal Public Sector Services helps public sector entities identify new ways to overcome challenges and implement sustainable change - pioneering an approach based on operational and financial improvement principals that have proved powerful in the private sector. As the first known professional services firm specializing in corporate restructuring to be hired by a public school district to implement "turnaround" reforms, Alvarez & Marsal has amassed an unparalleled track record, working with districts in St. Louis, New Orleans, before and after Hurricane Katrina, Wilmington, Delaware, the U.S. Virgin Islands and New York City. About Alvarez & Marsal Alvarez & Marsal -- http://www.alvarezandmarsal.com/-- 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 Chief Executives ----------------------------------- Author: Isadore Barmash Publisher: Beard Books Paperback: 260 pages List Price: US$34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1587982285/internetbankrupt The Chief Executives by Isadore Barmash is a provocative book dealing with the chief executive cult in America. This should be read by anyone interested in the American corporate system and those who run it. Isadore Barmash, one of the country's most respected business writers, takes a penetrating look into the minds, hearts, consciences, attitudes, and life styles of the CEOs of the 1970s. This surprisingly candid book is based upon extensive research and interviews with influential corporate chiefs, management consultants, and economists. Among others, Reginald Jones of GE, Irving Shapiro of Du Pont, and John de Butts of AT&T offer new insights into management's modus operandi, problems, and their own special public and private worlds. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella Mae Hechanova, and Christian Toledo, Editors. Copyright 2006. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *