/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/061206.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, December 6, 2006, Vol. 7, Issue 242 Headlines A N T I G U A & B A R B U D A PETROLEOS DE VENEZUELA: Inks Distribution Pact with West Indies A R G E N T I N A AUTOPISTAS DEL SOL: S&P Assigns raB+ Ratings on Three Debts EUROSUR ESTIBAJES: Asks for Court Approval to Restructure Debts FIDEICOMISOS (GALTRUST): Moody's Puts D Ratings on Two Debts FIDEOS CLASICOS: Claims Verification Deadline Is Set for Feb. 5 FIRST MEDICAL: Asks for Court Approval to Reorganize Business GILGIO SA: Deadline for Verification of Claims Is on Dec. 20 GLOBUS GROUP: Last Day for Verification of Claims Is on Feb. 15 INVERSORA ELECTRICA: S&P Puts Default Ratings on US$230MM Notes PROVINCIA DEL CHACO: Moody's Assigns D Rating on US$50 Million PROVINCIA DE FORMOSA: Moody's Rates US$106-Million Debts at D TELEFONICA DE ARGENTINA: Launches Double Play Package in Mendoza TELEFONICA DE ARGENTINA: Movistar to Sell Speedy Teletrabajo * ARGENTINA: Government Wants to Up Repurchase Stock to 20% * NEUQUEN: Using Bond Issuance Proceeds to Boost Economy B E L I Z E INNOVATIVE COMM: Lawmakers Likely to Reject Gov't Buyout of Firm B E R M U D A CONTINENTAL AIRLINES: Launches New Low Cost Return Fare Program COSA LIEBERMANN: Creditors Must Submit proofs of Claim by Dec. 8 IPC HOLDINGS: AM Best Affirms BB+ Rating on US$236.25MM Stock KNOCK AN: Creditors Must File Proofs of Claim by Dec. 8 KNOCK SALLIE: Proofs of Claim Filing Deadline Is Set for Dec. 8 KNOCK WHILLAN: Last Day for Proofs of Claim Filing Is on Dec. 8 REFCO INC: Modifies First Amended Chapter 11 Plan UNOCAL CHINA: Claims Filing Deadline Is Set for Dec. 8 VULCAN PETROLEUM: Last Day to File Proofs of Claim Is Dec. 8 B R A Z I L BANCO NACIONAL: Centrais Electricas Seeks Simplicio Funding CENTRAIS ELECTRICAS: Inks Plant Construction Pact with Andrade COMPANHIA SIDERURGICA: Listing Casa de Pedra at Bovespa ELETROPAULO: S&P Says Ratings Reflect Better Debt Profile GERDAU SA: Offers US$160 Million to Purchase Aceros Bragado GERDAU SA: Moody's Ups Corporate Family Rating to Ba1 from Ba2 INDUSTRIAS METALURGICAS: Inks Contract with Centrais Electricas LUCENT TECH: Nortel Sells UMTS Access Business to Alcatel-Lucent LUCENT: Alcatel-Lucent Extended Consent Solicitation Expiration NET SERVICOS: Expanding Triple Play Services to 43 Cities NOVELL INC: Names Colleen O'Keefe Vice President of Services NOVELL: Boosts OpenOffice & Microsoft Office Interoperability PETROLEO BRASILEIRO: May Delay Piranema Crude Field Launching UNIAO DE BANCOS: Remains in Corporate Sustainability Index USINAS: S&P Says Ratings Reflect Volatility of Steel Industry C A Y M A N I S L A N D S CORONATION CAPITAL: Proofs of Claim Submission Is Until Dec. 14 DAWOODIYAH - II: Creditors Must File Proofs of Claim by Dec. 14 FGI LIONS: Creditors Have Until Dec. 14 to File Proofs of Claim HARBERT (MASTER): Claims Submission Deadline Is Set for Dec. 14 HARBERT (OFFSHORE): Claims Filing Deadline Is Set for Dec. 14 HERMOSA INVESTMENTS: Filing of Proofs of Claim Is Until Dec. 14 MOUNTCASHEL FUND: Last Day for Filing of Claims Is on Dec. 14 PARETO POWER MASTER: Proofs of Claim Filing Is Until Dec. 14 PARETO POWER: Last Day for Proofs of Claim Filing Is on Dec. 14 RESOURCES FUND: Deadline for Proofs of Claim Filing Is Dec. 14 SB FINANCE CI-1: Proofs of Claim Filing Deadline Is on Dec. 14 SHEYENNE INCORPORATION: Proofs of Claim Must be Filed by Dec. 14 SPINNAKER CDO: Last Day to File Proofs of Claim Is on Dec. 14 THALES GROWTH: Creditors Must Submit Proofs of Claim by Dec. 14 WILDFLOWER INVESTMENTS: Claims Filing Deadline Is on Dec. 14 C H I L E CLAXSON INTERACTIVE: Fitch Argentina Rates US$41.3-Mln Debt at B ENDESA CHILE: Regulator Grants Aysen Impact Studies Concession C O L O M B I A ARMOR HOLDINGS: Receives US$649MM Order for Added FMTV Trucks J A M A I C A NATIONAL COMMERCIAL: Providing J$500-Million Loan for Exporters SUGAR COMPANY: Union Says Projected 10% Output Boost Not Enough SUGAR COMPANY: Will Carry Out Management Shake-Up M E X I C O ALASKA AIRLINES: Posts US$20.1 Mil. Net Loss in 2006 3rd Quarter AXTEL SA: Completes Acquisition of Avantel for US$500 Million BEARINGPOINT INC: Establishing SAP Center of Excellence DANA CORP: Enters Into Stock & Asset Purchase Pact with MAHLE EMPRESAS ICA: ICA Fluor Inks US$90MM Offshore Pact with PEMEX FORD MOTOR: Inks MoU with Valeo to Sell ACH Business FORD MOTOR: Intends to Offer US$3B Senior Convertible Notes GENERAL MOTORS: Sells 5% Stake to Bank of America GRUPO IUSACELL: Uses Franklin's Broadband Modem on Network GRUPO TMM: Prices Kansas City's Common Stock at US$26.25 a Share HUDSON PRODUCTS: S&P Assigns B Corporate Credit Rating KANSAS CITY: TMM Prices Stock Offering at US$26.65 Per Share NORTEL NETWORKS: Selects KPMG LLP as Independent Auditor NORTEL NETWORKS: Sells UMTS Access Business to Alcatel-Lucent ODYSSEY RE: Fairfax Prices Stock Offering at US$34.60 Per Share TV AZTECA: Conflict with Telemundo Intensifies P E R U CENTRAL PARKING: Retains Blackstone Group as Financial Advisor CENTRAL PARKING: Blackstone Engagement Cues S&P's Negative Watch P U E R T O R I C O PILGRIM'S PRIDE: Acquiring Gold Kist Stock for US$21 Per Share PILGRIM'S PRIDE: S&P Holds Watch on Ratings on Gold Kist Merger T R I N I D A D & T O B A G O BRITISH WEST: Says UK Incorporation Necessary U R U G U A Y * URUGUAY: Pays Off US$1.09 Bln International Monetary Fund Debt V E N E Z U E L A BANCO DEL CARIBE: Fitch Affirms Low B Ratings - - - - - ================================= A N T I G U A & B A R B U D A ================================= PETROLEOS DE VENEZUELA: Inks Distribution Pact with West Indies --------------------------------------------------------------- Petroleos de Venezuela SA, the state-owned oil firm of Venezuela, has signed an oil distribution accord with West Indies Oil Co., Business News Americas reports. Petroleos de Venezuela said in a statement that West Indies' storage facilities in Antigua & Barbuda will become the main collection point for liquid fuels to be distributed under the Petrocaribe energy cooperation model Venezuela is promoting. Under Petrocaribe, nations pay 60% of the cost of Venezuelan oil at the time of purchase. Governments can retain 40% of the cost as financing for development projects. The financing is then amortized after a two-year grace period over 23 years at 1% yearly interest. BNamericas relates that Petroleos de Venezuela will store some 82,000 barrels at West Indies' facilities, which already hold 90,000 barrels. Alejandro Grandado -- Petroleos de Venezuela's deputy president of refining and PDV Caribe's president -- told BNamericas, "This is a wholesale storage agreement that will generate savings in as much as it will allow the transshipment of higher amounts of hydrocarbons from Venezuela and later supply the islands of the zone through smaller tankers." Fixing tanks out of commission will bring 150,000 barrels more of capacity to the facility. The repair costs will be deducted from West Indies' storage fee, BNamericas states. 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. ================= A R G E N T I N A ================= AUTOPISTAS DEL SOL: S&P Assigns raB+ Ratings on Three Debts ----------------------------------------------------------- Autopistas del Sol S.A.'s debts are rated by Standard and Poor's Rating Service: -- obligaciones negociables at increasing rate, due in 10 years time for US$215,225,419, raB+ -- Obligaciones negociable with discount, 5 years time due, for US$112,334,466, raB+ -- obligaciones negociables, with discount, 5 years due for US$49,306,639, raB+ The rating action was based on the company's balance sheet at Sept. 30, 2006. EUROSUR ESTIBAJES: Asks for Court Approval to Restructure Debts --------------------------------------------------------------- Court No. 7 in Buenos Aires is studying the merits of Eurosur Estibajes SRL's petition to restructure its debts after it stopped paying its obligations on Nov. 13, 2006. The petition, once approved by the court, will allow Eurosur Estibajes to negotiate a settlement plan with its creditors in order to avoid a straight liquidation. Clerk No. 14 assists the court in the case. The debtor can be reached at: Eurosur Estibajes SRL Uruguay 651 Buenos Aires, Argentina FIDEICOMISOS (GALTRUST): Moody's Puts D Ratings on Two Debts ------------------------------------------------------------ Fideicomisos Financieros Galtrust I's debts are rated D by Moody's Investor Service: -- Titulos de Deuda Class B for US$200,000,000 -- Certificados de Participacion for US$200,000,000 FIDEOS CLASICOS: Claims Verification Deadline Is Set for Feb. 5 --------------------------------------------------------------- Tito Jorge Gargaglione, the court-appointed trustee for Fideos Clasicos SA's bankruptcy proceeding, will verify creditors' proofs of claim until Feb. 5, 2007. Mr. Gargaglione will present the validated claims in court as individual reports on March 19, 2007. A court in Buenos Aires will then determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Fideos Clasicos 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 Fideos Clasicos' accounting and banking records will follow on May 4, 2007. Mr. Gargaglione is also in charge of administering Fideos Clasicos' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Fideos Clasicos SA Rojas 730 Buenos Aires, Argentina The trustee can be reached at: Tito Jorge Gargaglione Medrano 833 Buenos Aires, Argentina FIRST MEDICAL: Asks for Court Approval to Reorganize Business ------------------------------------------------------------- Court No. 19 in Buenos Aires is studying the merits of First Medical SA's petition to reorganize its business after it stopped paying its obligations on Aug. 31, 2006. The petition, once approved by the court, will allow First Medical to negotiate a settlement plan with its creditors in order to avoid a straight liquidation. Clerk No. 37 assists the court in the case. The debtor can be reached at: First Medical SA Venezuela 1552 Buenos Aires, Argentina GILGIO SA: Deadline for Verification of Claims Is on Dec. 20 ------------------------------------------------------------ Hector R. Maestra, the court-appointed trustee for Gilgio SA's bankruptcy case, will verify creditors' proofs of claim until Dec. 20, 2006. Under the Argentine bankruptcy law, Mr. Maestra is required to present the validated claims in court as individual reports. A court in San Rafael, Mendoza, will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Gilgio SA and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Maestra will also submit a general report that contains an audit of Gilgio SA's accounting and banking records. The report submission dates have not been disclosed. The debtor can be reached at: Gilgio SA Avenida Mitre 80, San Rafael Mendoza, Argentina The trustee can be reached at: Hector R. Maestra Chile 259, San Rafael Buenos Aires, Argentina GLOBUS GROUP: Last Day for Verification of Claims Is on Feb. 15 --------------------------------------------------------------- Orlando Juan Prebianca, the court-appointed trustee for Globus Group SA's bankruptcy proceeding, will verify creditors' proofs of claim until Feb. 15, 2007. Mr. Prebianca will present the validated claims in court as individual reports on March 29, 2007. Court No. 25 in Buenos Aires will then determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Globus Group 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 Globus Group's accounting and banking records will follow on May 16, 2007. Globus Group was forced into bankruptcy at the request of Obra Social de Cortadores de la Indumentaria, which it owes US$6,464.39 Clerk No. 50 assists the court in the case. The debtor can be reached at: Globus Group SA Sarmiento 1562 Buenos Aires, Argentina The trustee can be reached at: Orlando Juan Prebianca Uriburu 578 Buenos Aires, Argentina INVERSORA ELECTRICA: S&P Puts Default Ratings on US$230MM Notes --------------------------------------------------------------- Standard and Poor's assigned D ratings on Inversora Electrica de Buenos Aires S.A.'s debts: -- Obligaciones Negociables Simples, not convertible into shares, for US$100,000,000 -- Obligaciones Negociables Simples, no convertibles into shares, for US$130,000,000. The rating action was made based on the company's balance sheet at Sept. 30, 2006. PROVINCIA DEL CHACO: Moody's Assigns D Rating on US$50 Million -------------------------------------------------------------- Provincia del Chaco's Titulos de Deuda, guaranteed by the Federal Copraticipation, for US$50,000,000 is rated D by Moody's Investor Service. The debt was issued on Jan. 14, 2001. PROVINCIA DE FORMOSA: Moody's Rates US$106-Million Debts at D ------------------------------------------------------------- Moody's Investor Service assigned D ratings on Provincia de Formosa's debts: -- Series 01 of public titles guaranteed by the Federal Coparticipation due in 2005 for US$70,000,000 -- Series 02 of the titles with guarantee from the Federal Coparticipation due in 2005 for US$36,000,000 TELEFONICA DE ARGENTINA: Launches Double Play Package in Mendoza ---------------------------------------------------------------- Telefonica de Argentina SA has introduced a double play package in Mendoza, Argentina, to prepare for the national launching of triple play services in 2007, Infobae reports. Business News Americas relates that the "Duo Speedy" package of Telefonica de Argentina includes broadband access and an unlimited number of local calls. A company source told BNamericas that the extension of the service to the rest of Argentina will depend on the success of the service in Mendoza. Infobae underscores that Telefonica de Argentina is also offering double play services to some residential customers in certain areas of Buenos Aires. According to BNamericas, Telefonica de Argentina will invest up to ARS200 million if regulations allowing telecoms to offer television services are pushed through in the first few months of 2007. The Argentine government told BNamericas that it is analyzing the regulations. Headquartered in Buenos Aires, Argentina, Telefonica de Argentina SA -- http://www.telefonica.com.ar/-- provides telecommunication services, which include telephony business both in Spain and Latin America, mobile communications businesses, directories and guides businesses, Internet, data and corporate services, audiovisual production and broadcasting, broadband and Business-to-Business e-commerce activities. * * * Moody's Investors Service upgraded on May 27, 2006, the ratings on Telefonica de Argentina, SA's Corporate Family Rating (foreign currency) to B2 from B3 with stable outlook; Foreign currency issuer rating to B2 from B3 with stable outlook; and Senior Unsecured Rating (foreign currency) to B2 from B3 with stable outlook. TELEFONICA DE ARGENTINA: Movistar to Sell Speedy Teletrabajo ------------------------------------------------------------ Telefonica de Argentina said in a statement that it has allowed Movistar, its sister company, to sell Speedy Teletrabajo, its broadband service. Business News Americas relates that Movistar has 150 outlets in: -- capital Buenos Aires, -- greater Buenos Aires, and -- the provinces, which can complement the more than 60 outlets operated directly by Telefonica de Argentina. Telefonica de Argentina told BNamericas that the initiative is the first-ever joint sale between two units of the Telefonica group in Argentina. The initiative allows Movistar to act as a provider of integrated solutions, BNamericas says, citing Telefonica de Argentina. Telefonica de Argentina has almost 480,000 broadband connections in Argentina. It expects its connections to reach 1 million by the end of 2007, BNamericas states. Headquartered in Buenos Aires, Argentina, Telefonica de Argentina S.A. -- http://www.telefonica.com.ar/-- provides telecommunication services, which include telephony business both in Spain and Latin America, mobile communications businesses, directories and guides businesses, Internet, data and corporate services, audiovisual production and broadcasting, broadband and Business-to-Business e-commerce activities. * * * Moody's Investors Service upgraded on May 27, 2006, the ratings on Telefonica de Argentina, S.A.'s Corporate Family Rating (foreign currency) to B2 from B3 with stable outlook; Foreign currency issuer rating to B2 from B3 with stable outlook; and Senior Unsecured Rating (foreign currency) to B2 from B3 with stable outlook. * * * Standard & Poor's Ratings Services affirmed on Aug. 10, 2006, its 'B' long-term foreign currency corporate credit rating on the Argentine telecom incumbent Telefonica de Argentina S.A., following the company's announcement of a proposal from its Board of Directors of a capital reduction of ARS1,048 million (equivalent to approximately US$340 million) to optimize its capital structure. This transaction is subject to the approval of the Argentine Stock Exchange and the Securities Exchange Commission (Comision Nacional de Valores). S&P said the outlook is stable. * ARGENTINA: Government Wants to Up Repurchase Stock to 20% ----------------------------------------------------------- The Argentine State is planning to repurchase 20% of control of the airline company Aerolineas Argentinas. The government has already recovered 5% stake in the company. A new program has been planned for the company in order to recover the operating capacity of the airline. * * * 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 * NEUQUEN: Using Bond Issuance Proceeds to Boost Economy -------------------------------------------------------- The Argentine province of Neuquen will use proceeds from the US$125-million bonds it issued on Oct. 18 to diversify its economic base, which is currently based on the hydrocarbons sector, through a series of sustainable development projects, LatinLawyer Online reports. LatinLawyer relates that the eight-year bonds were issued at a fixed rate 8.6%, the first issuance under Neuquen's US$250-million development program. The bonds are guaranteed by future oil and gas revenues. Florencia Fridman -- a representative of Bruchou, Fernandez Madero, Lombardi & Mitrani, adviser of Citibank, the trustee -- told LatinLawyer, "Neuquen wants to develop other industries for the province, so that it's not so reliant on its oil and gas resources. It's very important for the province's economy." The report says that Neuquen, which is in northern Patagonia, holds 45% of Argentina's gas reserves and 20% of the nation's oil reserves. The province's total revenues were US$886 million in 2005, with around half of that coming from oil, gas and hydroelectric royalties. According to the report, Neuquen's planned projects include: -- a 1,300-kilometer railroad from the Atlantic to Pacific coasts, -- a water irrigation system, and -- road and hospital construction schemes. Meanwhile, Carmen Corrales -- partner at Cleary Gottlieb Steen & Hamilton LLP, Neuquen's adviser -- believed the collateral structure will be a guide for upcoming deals, according to LatinLawyer. Ms. Corrales told LatinLawyer, "This was a very unique structure, and I think it'll be used as a model for similar deals in the future. It's also exciting to see Argentina coming back to a position to make these sorts of offers." Ms. Fridman commented to LatinLawyer, "This is the lowest interest rate raised in a finance transaction of this kind, so the risk of the bond is lower and Citibank will receive funds directly." Citigroup Global Markets was the initial purchaser of the offer, LatinLawyer states. Neuquen's adviser can be reached at: Cleary Gottlieb Steen & Hamilton LLP One Liberty Plaza New York, NY 10006 USA Phone: 1 212 225 2000 Fax: 1 212 225 3999 The adviser of Citibank can be reached at: Bruchou, Fernandez Madero, Lombardi & Mitrani Ing. Enrique Butty 275 C1001AFA - Buenos Aires Argentina Phone: 54 11 5288 - 2300 Fax: 54 11 5288 -2301 * * * As reported in the Troubled Company Reporter-Latin America on Oct. 5, 2006, Standard & Poor's Ratings Services raised its preliminary rating assigned to Argentina's Province of Neuquen's US$125 million secured amortizing notes due 2014 to 'BB-' from 'B+'. At the same time, Standard & Poor's affirmed its preliminary 'raAAA' Argentine national scale rating assigned to the Neuquen secured notes. =========== B E L I Z E =========== INNOVATIVE COMM: Lawmakers Likely to Reject Gov't Buyout of Firm ---------------------------------------------------------------- Senator Roosevelt David, the US Virgin Islands Senate majority leader, told the Associated press that lawmakers would likely reject Governor Charles Turnbull's request to consider a government takeover of Innovative Communications Corp. According to AP, Governor Turnbull sought authorization from the 15-member unicameral legislature to hire a consultant to analyze the purchase of Innovative Communications. Lawmakers held a special session decided not to consider the appropriation. It would take a majority vote to restart debate on the buyout. Senator David told AP, "I don't think it will move forward in this legislature. I really don't think the government should get involved in this sort of thing." Senator David said that he was against the public ownership of Innovative Communications, AP notes. According to him, private-sector firms should remain in private hands. Other lawmakers told AP that they are hesitant on the purchase of Innovative Communications due to concerns including the physical condition of the firm's phone lines as well as the pension liabilities for its 500 workers. AP underscores that Governor Turnbull wanted that the purchase of Innovative Communications be considered to preserve jobs that could be lost if someone from outside Virgin Islands buys the company. Innovative Communication Company, LLC, is a diversified, telecommunications and media company with extensive holdings throughout the Caribbean basin. The company's operations are in Belize, British Virgin Islands, Guadeloupe, Martinique, Saint- Martin, Sint Maarten, U.S. Virgin Islands and France and include local, long distance and cellular telephone companies, Internet access providers, cable television companies, business systems, and The Virgin Islands Daily News, a Pulitzer Prize-winning newspaper. Management offices are in West Palm Beach, Florida and headquarters are in Christiansted, St. Croix, U.S. Virgin Islands. With more than 1,200 employees, ICC is one of the largest private employers in Belize and the second largest in the U.S. Virgin Islands. Creditors Greenlight Capital Qualified, L.P., Greenlight Capital, L.P., and Greenlight Capital Offshore, Ltd., holding a US$18,780,614 claim against the Company filed an involuntary chapter 11 petition against Innovative Communication, Emerging Communications, Inc., the Company's subsidiary and Jeffrey J. Prosser, the Company's principal, on February 10, 2006 (Bankr. Del. Case Nos. 06-10133 to 06-10135). Gregg M. Galardi, Esq., and Thomas J. Allingham II, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP represent the petitioners. ============= B E R M U D A ============= CONTINENTAL AIRLINES: Launches New Low Cost Return Fare Program --------------------------------------------------------------- Continental Airlines has launched a new low cost return fare in New York, bringing the cost of a Newark flight on a Tuesday or Wednesday in February 2007 to US$279, complete with fees and taxes, Bermuda Sun reports. Continental Airlines is one of the three airlines having daily flights into the New York area, Bermuda Sun states. According to Bermuda Sun, Continental Airlines initially offered flights for US$179 return. Bermuda Sun relates that the fare could increase travel to Newark during the new 'Golf and Spa' travel season. James Howes, the general manager of Bermuda International Airport, told Bermuda Sun, "One of the strategic goals that the Ministry of Tourism has is to really promote Bermuda as a winter time destination by taking advantage of our close proximity to New York. You can live in Manhattan and in two hours be on the golf links." The cheaper fare, plus the 'off season' hotel rates make Bermuda a very attractive place to visit during the cruel winters on the east coast, Bermuda Sun notes, citing Mr. Howes. Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/-- is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,200 daily departures throughout the Americas, Europe and Asia. It serves 15 European cities, 7 South American cities, Tel Aviv, Hong Kong and Tokyo. International operations are carried out throughout Europe, Canada, Mexico, Central and South America, Caribbean and also Tel Aviv, Hong Kong and Tokyo. More than 400 additional points are served via SkyTeam alliance airlines. With more than 43,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 61 million passengers per year. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. * * * As reported in the Troubled Company Reporter on Oct. 23, 2006, Standard & Poor's Ratings Services affirmed its ratings, including the 'B' long-term and 'B-3' short-term corporate credit ratings, on Continental Airlines Inc. The outlook is revised to stable from negative. Continental has about US$17 billion of debt and leases. As reported in the Troubled Company Reporter on Oct. 23, 2006, Fitch Ratings has upgraded Continental Airlines Inc.'s Issuer Default Rating (IDR) to 'B-' from 'CCC' and Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'. Rating outlook was stable. As reported in the Troubled Company Reporter on Nov. 10, 2006, Moody's Investors Service assigned ratings of Caa1, LDG5-75% to the US$200 million of senior unsecured notes issued by Continental Airlines, Inc.'s. Moody's affirmed the B3 corporate family rating. The outlook is stable. COSA LIEBERMANN: Creditors Must Submit proofs of Claim by Dec. 8 ---------------------------------------------------------------- Cosa Liebermann Ltd.'s creditors are given until Dec. 8, 2006, 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. 27, 2006, at 9:30 a.m., or as soon as possible. Cosa Liebermann'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. Cosa Liebermann's shareholders agreed on Nov. 23, 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 IPC HOLDINGS: AM Best Affirms BB+ Rating on US$236.25MM Stock ------------------------------------------------------------- A.M. Best Co. has affirmed the financial strength rating of A and the issuer credit ratings of "a" for the reinsurance subsidiaries of IPC Holdings Ltd. (IPCRe) (Bermuda). These affirmations apply to IPCRe Limited (Bermuda) and IPCRe Europe Limited (Dublin, Ireland). A.M. Best has also affirmed the ICR of "bbb", the debt rating of bb+" on US$236.25 million 7.25% mandatory convertible preferred stock, due 2008 and the indicative ratings for securities available under shelf registration for IPCRe. The outlook for all ratings is stable. The ratings reflect IPCRe's excellent historical earnings and well-established presence within the property catastrophe reinsurance market. Further supporting the ratings is IPCRe's highly experienced management team and customer-oriented focus. In order to minimize the impacts from catastrophic events, the IPCRe's Board of Directors has established a preset percentage of capital, which limits aggregate accumulations in any single geographic zone. IPCRe's management monitors this capital-based limits approach and diversifies the company's exposure around the world, which achieves an optimal spread of risk. Partially offsetting these positive rating factors is the decline in the company's risk-adjusted capital position, attributable to catastrophe losses in 2005. Despite severe losses in 2005 primarily due to Hurricane Katrina, IPCRe's overall performance has been excellent due to its long-term orientation to risk exposure management. IPCRe has a strong balance sheet, which is supported by US$1.9 billion of shareholders' equity. KNOCK AN: Creditors Must File Proofs of Claim by Dec. 8 ------------------------------------------------------- Knock An Shipping Ltd.'s creditors are given until Dec. 8, 2006, 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. 27, 2006, at 9:30 a.m., or as soon as possible. Knock An'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. Knock An's shareholders agreed on Oct. 4, 2006, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda KNOCK SALLIE: Proofs of Claim Filing Deadline Is Set for Dec. 8 --------------------------------------------------------------- Knock Sallie Ltd.'s creditors are given until Dec. 8, 2006, 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. 27, 2006, at 9:30 a.m., or as soon as possible. Knock Sallie'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. Knock Sallie's shareholders agreed on Oct. 4, 2006, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda KNOCK WHILLAN: Last Day for Proofs of Claim Filing Is on Dec. 8 --------------------------------------------------------------- Knock Whillan Ltd.'s creditors are given until Dec. 8, 2006, 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. 27, 2006, at 9:30 a.m., or as soon as possible. Knock Whillan'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. Knock Whillan's shareholders agreed on Oct. 4, 2006, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda REFCO INC: Modifies First Amended Chapter 11 Plan ------------------------------------------------- Refco, Inc., and its debtor-affiliates; Marc S. Kirschner, the Chapter 11 Trustee for Refco Capital Markets, Ltd.; and the Official Committee of Unsecured Creditors and the Additional Committee delivered to the U.S. Bankruptcy Court for the Southern District of New York a modified First Amended Chapter 11 Plan on Dec. 4, 2006. The Plan Proponents tell Judge Drain that all references to the Plan administrator in the Modified Plan will refer exclusively to the administration of estates of the Debtors and Refco F/X Associates, LLC. The RCM estate will be administered separately by the RCM Trustee, who will wind down the RCM Estate in accordance with the terms and conditions under RCM's settlement agreement with its securities customers and unsecured creditors. With respect to classification and treatment of claims and interests of the Debtors excluding FXA, the Modified Plan provides that any allowed Class 3 Secured Lender Claims, to the extent not paid before the Plan's effective date, will be paid in full, in cash. No holder of a Class 7 Subordinated Claim against the Contributing Debtors will be entitled to any property or interest-in-property. In addition, no holder of a Class 8 Old Equity Interest will be entitled to any property, provided that the Old Equity Interest Holders have been given rights to participate in litigation and private actions trusts. Litigation & Private Actions Trusts J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, relates that a litigation trustee will serve as representative of the Debtors' estates with respect to the Contributed Claims. To the extent that any Contributed Claims cannot be transferred to the Litigation Trust because of a restriction on transferability under applicable non-bankruptcy law that is not superseded or preempted by Section 1123 or any other provision of the Bankruptcy Code, those Claims will be deemed to have been retained by the Reorganized Debtors and RCM, as applicable, to enforce and pursue the Contributed Claims on the Estates' behalf. However, he notes, all net proceeds of the Contributed Claims will be transferred to effective beneficiaries consistent with the remaining Plan provisions and a Litigation Trust Agreement. Mr. Milmoe states that the Litigation Trust will be structured in a manner that provides for Tranche A and Tranche B. All contributed claims recoveries, whether applicable to Tranche A or Tranche B, will be distributed pro rata according to the beneficial interests in Tranche A and Tranche B. Mr. Milmoe adds that beneficiaries of Tranche B Litigation Trust Interests will be the holders of Old Equity Interests who have made a Private Actions Trust Election. Those beneficiaries will share the Tranche B Litigation Trust Interests Pro Rate based on a number of shares held by interest holders or those previously held to the extent that the holder has asserted a claim related to those shares. No holder of Tranche A and Tranche B Litigation Trust Interests will have any consultation or approval rights whatsoever in respect of management and operation of the Litigation Trust. Furthermore, Mr. Milmoe discloses that beneficiaries of the Private Actions Trust will be holders of Contributing Debtors General Unsecured Claims, FXA General Unsecured Claims, RCM Securities Customer Claims, RCM FX/Unsecured Claims, and those Old Equity Interests that make the Private Actions Trust Election, who will be given interests in the Private Actions Trust to the same extent as in the Litigation Trust. To the extent that any Non-Estate Refco Claims cannot be transferred to the Private Actions Trust because of a restriction on transferability under applicable non-bankruptcy law that is not superseded or preempted by Section 1123, the Non-Estate Refco Claims will be deemed to have been retained by a grantor, as applicable, and the Private Actions Trustee will be deemed to have been designated as a representative of that grantor to enforce and pursue those Claims, Mr. Milmoe says. All net proceeds of the Non-Estate Refco Claims will be transferred to the Private Actions Trust Beneficiaries consistent with the other provisions of the Plan and the Private Actions Trust Agreement. In consideration of the litigation expenses and potential delay avoided by the withdrawal of Plan confirmation objections asserted by the Ad Hoc Committee of Equity Interest Holders of Refco, the Beneficiaries of Tranche A Litigation Trust Interests will be deemed to have transferred to each Old Equity Interest Holder who has made a Private Actions Trust Election a Pro Rata share of the Tranche B Litigation Trust Interests. Moreover, the Plan Proponents clarify that all BAWAG Contingent Proceeds, if any, will be treated as part of the Contributing Debtors Distributive Assets and will be shared between RCM and Holders of Contributing Debtors General Unsecured Claims pursuant to the Modified Plan. Distribution Provisions & Plan Releases The Modified Plan provides that any Contributing Debtors General Unsecured Claim Holders with an independent claim against any Contributing Debtor based on a contractual guarantee or other direct contractual undertaking may also recover once from the Contributing Debtors on that claim based on full underlying claim amount owed by that Contributing Debtor, as of the Petition Date, for which the guarantee or other direct contractual undertaking was provided. To obtain full benefits of the Court-approved RCM Settlement Agreement, including final allowance of Secured Lender Indemnification Claims at zero for purposes of the Chapter 11 cases, all Secured Lender Released Claims, unless previously made effective under the Early Payment Order, are deemed fully and forever released on the Plan Effective Date. A blacklined copy of Refco's Modified First Amended Plan is available at no charge at: http://bankrupt.com/misc/refcoincmodifiedchap11plan.pdf Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. On Oct. 6, 2006, the Debtors filed their Amended Plan and Disclosure Statement. On Oct. 16, 2006, the gave its tentative approval on the Disclosure Statement and on Oct. 20, 2006, the Court Clerk entered the written disclosure statement order. The hearing to consider confirmation of Refco, Inc., and its debtor-affiliates' plan is set for Dec. 15, 2006. Objections to the plan, if any, must be in by Dec. 1, 2006. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). RCMI's exclusive period to file a chapter 11 plan expires on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 48; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). UNOCAL CHINA: Claims Filing Deadline Is Set for Dec. 8 ------------------------------------------------------ Unocal China Ltd.'s creditors are given until Dec. 8, 2006, to prove their claims to Gary R. Pitman, 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. 27, 2006, at 9:30 a.m., or as soon as possible. Unoxal China'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. Unocal China's shareholders agreed on Nov. 23, 2006, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Gary R. Pitman Chevron House, Church Street Hamilton, Bermuda VULCAN PETROLEUM: Last Day to File Proofs of Claim Is Dec. 8 ------------------------------------------------------------ Vulcan Petroleum Ltd.'s creditors are given until Dec. 8, 2006, to prove their claims to Jennifer M. Kelly, 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. 4, 2007 or as soon as possible. Vulcan Petroleum'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. Vulcan Petroleum's shareholders agreed on Nov. 17, 2006, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer M. Kelly 3rd Floor, Par La Ville Place 14 Par La Ville Road Hamilton, Bermuda =========== B R A Z I L =========== BANCO NACIONAL: Centrais Electricas Seeks Simplicio Funding ----------------------------------------------------------- Centrais Electricas Brasileiras SA said in a statement that it is negotiating with Banco Nacional de Desenvolvimento Economico e Social SA for the financing of the 334-megawatt Simplicio hydro project construction. According to a statement, Centrais Electricas has signed contracts with Andrade Gutierrez and Odebrecht to construct the Simplicio project. Furnas -- Centrais Electricas' operational unit -- has also signed the contracts. Business News Americas relates that Furnas won a 30-year construction and operation concession for Simplicio at a government auction in December 2005. The Simplicio project needs to be completed by early 2010 to comply with power contracts signed at the same auction. Centrais Electricas said in a statement that it signed a contract with Industrias Metalurgicas Pescarmona to supply electrical equipment for the BRL1.2-billion project. BNamericas underscores that Simplicio is one of six projects of Centrais Electricas' operational units, marking the firm's return to a leading position in Brazil's power sector after the power sector's privatization in the late 1990s. Centrais Electricas said in a statement that it expects to begin construction works for the 52.2-megawatt Batalha hydro generation project by January 2007 with investments of BRL381 million. The company has began building the 82-megawatt Retiro Baixo hydro project that will cost BRL276 million. According to BNamericas, concessions for Batalha and Retiro Baixo were awarded in government auctions. BNamericas notes that Centrais Electricas also has interests in these three projects: -- 855-megawatt Foz do Chapoeco, -- 210-megawatt Serra do Facao, and -- 140-megawtt Baguari. Centrais Electricas said in a statement that it will participate in projects that total BRL5.2 billion. About Industrias Metalurgicas Industrias Metalurgicas Pescarmona SAIC& F aka IMPSA -- http://www.impsa.com.ar/ -- is one of the largest worldwide providers of integrated energy solutions for hydropower and wind energy projects through the production of capital goods and by investing in power generation projects. The company has offices in Malaysia, China, and Argentina. About Centrais Electricas Headquartered in Brasilia, Brazil, Centrais Electricas Brasileiras SA aka Eletrobras -- http://www.eletrobras.gov.br/ -- operates in the electric power sector. The objective of Eletrobras is to perform activities involving studies, projects, construction and operation of electric power plants, transmission and distribution lines as well as underlying trade operations. Eletrobras has also an objective to assist the Ministry of Mines and Energy in designing Brazil's electric energy policy. It engages areas involving granting loans and financing, providing guarantees, locally or abroad, and acquiring debentures of companies and holders of public electric power services under their control; providing loans and guarantees, locally or abroad, for technical and scientific research institutions; and promoting and supporting researches relating to the power sector, linked the generation, transmission and distribution of electric power, as well as studies involving the exploitation of hydrographical basins for various purposes. About Banco Nacional 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 by Troubled Company Reporter-Latin America on March 3, 2006, Standard & Poor's Ratings Services raised its foreign currency counterparty credit rating on Banco Nacional de Desenvolvimento Economico e Social SA to 'BB' with a stable outlook from 'BB-' with a positive outlook. The company's local currency credit rating was also shifted to 'BB+' with a stable outlook from 'BB' with a positive outlook. CENTRAIS ELECTRICAS: Inks Plant Construction Pact with Andrade -------------------------------------------------------------- Centrais Electricas Brasileiras SA said in a statement it has signed contracts with Andrade Gutierrez and Odebrecht to construct the 334-megawatt Simplicio hydro project. The statement says that and Furnas -- Centrais Electricas' operational unit -- has also signed the contracts. Business News Americas relates that Furnas won a 30-year construction and operation concession for Simplicio at a government auction in December 2005. The Simplicio project needs to be completed by early 2010 to comply with power contracts signed at the same auction. Centrais Electricas said in a statement that it signed a contract with Industrias Metalurgicas Pescarmona to supply electrical equipment for the BRL1.2-billion project. Centrais Electricas also said in a statement that it is still negotiating with Brazil's Banco Nacional de Desenvolvimento Economico e Social SA for the financing of the power plant's construction. BNamericas underscores that Simplicio is one of six projects of Centrais Electricas' operational units, marking the firm's return to a leading position in Brazil's power sector after the power sector's privatization in the late 1990s. Centrais Electricas said in a statement that it expects to begin construction works for the 52.2-megawatt Batalha hydro generation project by January 2007 with investments of BRL381 million. The company has began building the 82-megawatt Retiro Baixo hydro project that will cost BRL276 million. According to BNamericas, concessions for Batalha and Retiro Baixo were awarded in government auctions. BNamericas notes that Centrais Electricas also has interests in these three projects: -- 855-megawatt Foz do Chapoeco, -- 210-megawatt Serra do Facao, and -- 140-megawtt Baguari. Centrais Electricas said in a statement that it will participate in projects that total BRL5.2 billion. About Industrias Metalurgicas Industrias Metalurgicas Pescarmona SAIC& F aka IMPSA -- http://www.impsa.com.ar/-- is one of the largest worldwide providers of integrated energy solutions for hydropower and wind energy projects through the production of capital goods and by investing in power generation projects. The company has offices in Malaysia, China, and Argentina. About Banco Nacional 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. About Centrais Electricas Headquartered in Brasilia, Brazil, Centrais Electricas Brasileiras SA aka Eletrobras -- http://www.eletrobras.gov.br/ -- operates in the electric power sector. The objective of Eletrobras is to perform activities involving studies, projects, construction and operation of electric power plants, transmission and distribution lines as well as underlying trade operations. Eletrobras has also an objective to assist the Ministry of Mines and Energy in designing Brazil's electric energy policy. It engages areas involving granting loans and financing, providing guarantees, locally or abroad, and acquiring debentures of companies and holders of public electric power services under their control; providing loans and guarantees, locally or abroad, for technical and scientific research institutions; and promoting and supporting researches relating to the power sector, linked the generation, transmission and distribution of electric power, as well as studies involving the exploitation of hydrographical basins for various purposes. * * * On Feb. 28, 2006, Standard & Poor's assigned these ratings to Centrais Electricas Brasileiras SA: * Long-Term Foreign Issuer Credit, BB; and * Long-Term Local Issuer Credit, BB+. COMPANHIA SIDERURGICA: Listing Casa de Pedra at Bovespa ------------------------------------------------------- Companhia Sidergurgica Nacional will list its Casa de Pedra iron ore mines at Bovespa, the Brazilian Stock Exchange, to raise US$1.5 billion, The Economic Times reports. According to The Economic Times, the amount would be used to partly fund its bid for Corus. As previously reported in the Troubled Company Reporter-Latin America on Dec. 4, 2006, Companhia Siderurgica would offer 475 pence per share for Corus. The Economic Times underscores that Companhia Siderurgica's bid was 4% higher than Tata Steel's 455-pence bid. Companhia Siderurgica may list up to 20% of Casa de Pedra, which is among the largest captively held deposits, The Economic Times notes. There has been a report saying that the listing of the mines -- valued at US$8 billion -- could be done through an initial public offer at the domestic stock exchange and that Companhia Siderurgica is also considering over an offer to borrow against the cash flow of the mine. Companhia Siderurgica produces 16 million tons of iron ore from the mines yearly. However, Companhia Siderurgica has been in dispute with Companhia Vale do Rio Doce on the access to Casa de Pedra since 2000, according to The Economic Times. Companhia Vale has preferential rights to the surplus ore from the mines. Meanwhile, a consortium led by Companhia Siderurgica holds about 42% stake in Companhia Vale. Companhia Siderurgica directly holds about 13% in Companhia Vale. Companhia Vale said that it won't surrender the right to Casa de Pedra without compensation from Companhia Siderurgica, The Economic Times relates. The conflict between Companhia Siderurgica and Companhia Vale has been taken to Brazil's Justice Ministry Antitrust Division and Centers, who have the right to sell excess iron ore from the mine, The Economic Times states. Companhia Siderurgica Nacional is one of the lowest-cost steel producers in the world, which is a result of its access to proprietary, high-quality iron ore (at the Casa de Pedra mine); self-sufficiency in energy; streamlined facilities; and logistics advantages. This is in addition to the group's strong market position in the fairly concentrated steel industry in Brazil. * * * Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its 'BB' long-term corporate credit rating on Brazil-based steel maker Companhia Siderurgica Nacional after the announcement of its association with US-based steel maker Wheeling-Pittsburgh Corp. in the US. S&P said the outlook is stable. Fitch Ratings viewed the proposed merger of Companhia Siderurgica Nacional's or CSN North American operations with those of Wheeling-Pittsburgh Corporation or WPSC to be neutral to CSN's credit quality. Fitch's ratings of CSN include: -- Foreign currency Issuer Default Rating: 'BB+'; -- Local currency IDR: 'BBB-'; -- National scale rating: 'AA (bra)'; -- Senior unsecured notes 'BB+'; and -- Brazilian Real denominated debentures: 'AA (bra)'. ELETROPAULO: S&P Says Ratings Reflect Better Debt Profile --------------------------------------------------------- Standard & Poor's Ratings Services raised on Nov. 6, 2006, the ratings on Brazilian electric utility Eletropaulo Metropolitana Eletricidade de Sao Paulo SA and its BRL474 million senior unsecured and unsubordinated euro bonds to 'BB-' from 'B+'. On the Brazil national scale, the 'brBBB+' corporate credit rating was raised to 'brA-'. The ratings have been removed from CreditWatch with positive implications, where they had been placed on Sept. 22, 2006, when Eletropaulo obtained an extension on its pension fund obligations and after a full deleveraging occurred at its holding company, Brasiliana Energia SA. The outlook is stable. The rating action reflects Eletropaulo's better debt profile due to the pension fund extension agreement that will reduce debt amortizations of some BRL650 million through 2008, as well as the reduced pressure to upstream cash to its holding company after Brasiliana's debt prepayment with Banco Nacional de Desenvolvimento Economico e Social aka BNDES. It also reflects Eletropaulo's improved financial performance during 2006, which led to better creditworthiness in line with the rating category. The holding company, Brasiliana, prepaid US$600 million of debt with BNDES. This was the holding company's sole debt and the biggest individual debt among those of the Brasiliana group's companies. The prepayment reduced the Brasiliana group's non-operating companies' debts to about BRL800 million from BRL2.6 billion, which is a material fact benefiting the creditworthiness of the whole group and which is important for Eletropaulo, as it smoothened out the company's requirement to upstream cash to Brasiliana to service its debts. Although we expect the company to make high dividend distributions starting from 2007, the BNDES prepayment gives Eletropaulo more flexibility regarding the amount to be sent based on the company's own commitments, obligations, and strategies. The ratings also incorporate: -- a still-leveraged capital structure; -- significant short-term debt combined with a relatively short debt amortization profile; -- a significant level of tax provisions that might be enforceable in the medium term; and -- exposure to the Brazilian electric sector's regulatory framework, which incorporates the challenges of the second tariff revision, even though Standard & Poor's does not expect the outcome to deteriorate the company's credit quality. Meanwhile, Eletropaulo's cash flow protection measures have improved and the company has demonstrated increasing access to the domestic and international credit markets, due to its liability management efforts. It also has minimal exposure to foreign-currency-denominated debt and a favorable customer mix. Eletropaulo's operating results continue to improve. In the first half of 2006, Eletropaulo registered EBITDA of about BRL1 billion, an improvement of 8% over first-half 2005. This was basically the result of cheaper power purchases and higher revenues from the wheeling fee charged to non-regulated clients between periods, as well as the annual average tariff increase of 2.12% applied in July 2005. These factors generated better profitability in first-half 2006, which also translated into an improvement in funds from operations to BRL612 million, up 6.4% from the BRL575 million in first-half 2005, and funds from operations interest coverage to 2.65x, compared with 2.6x in first-half 2005. But despite that, funds from operations to total debt also improved, hitting 24% in first-half 2006, Eletropaulo continues to have a leveraged capital structure, with total debt to total capitalization of about 70%. Leverage measured by EBITDA, however, is now much more favorable at about 2.4x in first-half 2006, as opposed to 2.74x in first-half 2005. In 1998, Eletropaulo was granted a 30-year concession to distribute energy in the Sao Paulo metropolitan area. Eletropaulo supplies electricity to more than 15 million people spread out among 5.4 million consumption units, with a consumption of 31,634 gigawatt-hours in 2005. Together with AES Tiete and AES Uruguaiana, Eletropaulo is controlled by the nonoperating holding company Brasiliana. Brasiliana's shareholders are BNDES and The AES Corp. U.S.-based AES manages the group. Liquidity Standard & Poor's deems that Eletropaulo's liquidity and financial flexibility have been improving since the company came out of a wide debt renegotiation in 2004. The placement of a BrR474 million international bond in June 2005, BrR1.05 billion in two debentures in September and December 2005, and a BrR300 million long-term domestic debt instrument in May 2006 attest to the company's improved financial flexibility and liability management focus. As of June 2006, the company reduced foreign currency exposure to some 3% of the total debt compared with 40% in 2003. Standard & Poor's expects that Eletropaulo will keep the level of foreign currency exposure below 10%. Eletropaulo reported total debt of about BRL5.1 billion as of June 2006, including the BRl220 million negative hedge results and BRL2.2-billion pension fund liability. Short-term maturities are BRL1.3 billion, and are equivalent to 25% of total debt. Amortization requirements for 2006 should be resolved through Eletropaulo's projected internal free cash generation of BRL700 million at fiscal year-end 2006, BRL621 million of cash holdings as of June 2006, and new debt structures to improve the debt profile. Since 2005, Eletropaulo has been working on improving its capital structure and reducing debt cost through issuing market debts. Outlook The stable outlook reflects Standard & Poor's expectation that the company will continue to extend the average debt amortization tenor, consequently reducing the level of short-term debt, and report adequate performance that results in fairly favorable credit measures for the rating category like funds from operations to total debt above 20%, FFO interest coverage higher than 2.5x, free operating cash flow to total debt above 10%, and total debt to EBITDA around 2.5x. This even takes into account the significant dividend distribution we expect to happen from 2007 on and the results of the second tariff revision. A positive outlook might be considered if Eletropaulo's financial performance stays highly secure despite the prospect of significant future dividend upstreams, but is unlikely to happen before the second tariff revision outcome. Conversely, the ratings would come under downward pressure if the contribution to upstream dividends to Brasiliana deteriorates Eletropaulo's cash flow protection measures and overall financial position, meaning high leverage and a worse debt amortization profile. Downward pressure would also result if the level of past-due accounts continues to increase or if the company faces soaring deferred regulatory costs, which would affect free cash flow and ultimately raise the total debt. GERDAU SA: Offers US$160 Million to Purchase Aceros Bragado ----------------------------------------------------------- Gerdau SA allegedly offered to buy Aceros Bragado for US$160 million, Business News Americas reports. Published reports say that Grupo Lupier, the owner of Aceros Bragado, accepted Gerdau's offer. However, an official of Aceros Bragado told BNamericas, "The company is not able to make any statements about the market rumors... We will not come forth to deny or confirm what is being said." Jorge Gerdau, chief executive officer of Gerdau, explained to BNamericas, "We are working toward establishing our goal of acquiring [Aceros Bragado]." According to BNamericas, the proposed deal has been under discussion for over a year. About Aceros Bragado Aceros Bragado is a company in Argentina that manufactures iron for construction. It produces billets, steel bars and coils, plain bars and various qualities of rods. It has capacity of about 200,000 tons per year, with a 25% share of the construction market, and exports some products to Chile, Paraguay, Uruguay, Bolivia and Brazil. About Gerdau Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. Gerdau's four majority-owned Brazilian operating subsidiaries are: -- Acominas, -- Gerdau Acos Longos SA, -- Gerdau Acos Especiais SA and -- Gerdau Comercial de Acos SA; * * * Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by Moody's, BB+ by S&P, and BB- by Fitch. * * * As reported in the Troubled Company Reporter on March 3, 2006, Standard & Poor's Ratings Services raised its foreign currency counterparty credit rating on Banco Nacional de Desenvolvimento Economico e Social SA to 'BB' with a stable outlook from 'BB-' with a positive outlook. The company's local currency credit rating was also shifted to 'BB+' with a stable outlook from 'BB' with a positive outlook. GERDAU SA: Moody's Ups Corporate Family Rating to Ba1 from Ba2 -------------------------------------------------------------- Moody's Investors Service upgraded the global local currency corporate family rating of Gerdau SA to Ba1 from Ba2, following the upgrade to Ba1 from Ba2 of Gerdau Ameristeel Corp., the group's operational subsidiary in North America that represents some 46% of consolidated revenues and 34% of group's EBITDA. The rating outlook is stable. This rating action concludes the review initiated on Sept. 13, 2006. Simultaneously, Moody's affirmed the Ba1 global local currency corporate family rating with positive outlook of the Brazilian operations of Gerdau and the Ba1 foreign currency rating of Gerdau S.A.'s US$600 million guaranteed perpetual bonds. The positive outlook reflects the maintenance of good operating margins and debt protection metrics, as well as solid liquidity position in spite of the ongoing substantial investment program. These are the affected ratings: Gerdau SA -- Global Local Currency Corporate Family Rating: upgraded to Ba1 from Ba2, with stable outlook; -- US$600 million perpetual bonds guaranteed by Gerdau Brazil: Ba1 with positive outlook (affirmed) Gerdau Brazil -- Global Local Currency Corporate Family Rating: Ba1 with positive outlook (affirmed) Headquartered in Porto Alegre, Brazil, Gerdau S.A. is the largest long steel producer in Brazil and the second largest long steel manufacturer in North America, with consolidated net revenues of about US$11.1 billion in the last twelve months through Sept. 30, 2006. INDUSTRIAS METALURGICAS: Inks Contract with Centrais Electricas --------------------------------------------------------------- Centrais Electricas Brasileiras SA said in a statement that it signed a contract with Industrias Metalurgicas Pescarmona to supply electrical equipment for the BRL1.2-billion 334-megawatt Simplicio hydro project. According to a statement, Centrais Electricas and Furnas -- its operational unit -- signed contracts with Andrade Gutierrez and Odebrecht to construct the Simplicio project. Business News Americas relates that Furnas won a 30-year construction and operation concession for Simplicio at a government auction in December 2005. The Simplicio project needs to be completed by early 2010 to comply with power contracts signed at the same auction. Centrais Electricas also said in a statement that it is still negotiating with Brazil's Banco Nacional de Desenvolvimento Economico e Social SA for the financing of the power plant's construction. BNamericas underscores that Simplicio is one of six projects of Centrais Electricas' operational units, marking the firm's return to a leading position in Brazil's power sector after the power sector's privatization in the late 1990s. Centrais Electricas said in a statement that it expects to begin construction works for the 52.2-megawatt Batalha hydro generation project by January 2007 with investments of BRL381 million. The company has began building the 82-megawatt Retiro Baixo hydro project that will cost BRL276 million. According to BNamericas, concessions for Batalha and Retiro Baixo were awarded in government auctions. BNamericas notes that Centrais Electricas also has interests in these three projects: -- 855-megawatt Foz do Chapoeco, -- 210-megawatt Serra do Facao, and -- 140-megawtt Baguari. Centrais Electricas said in a statement that it will participate in projects that total BRL5.2 billion. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social is Brazil's national de velopment bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. About Centrais Electricas Headquartered in Brasilia, Brazil, Centrais Electricas Brasileiras SA aka Eletrobras -- http://www.eletrobras.gov.br/ -- operates in the electric power sector. The objective of Eletrobras is to perform activities involving studies, projects, construction and operation of electric power plants, transmission and distribution lines as well as underlying trade operations. Eletrobras has also an objective to assist the Ministry of Mines and Energy in designing Brazil's electric energy policy. It engages areas involving granting loans and financing, providing guarantees, locally or abroad, and acquiring debentures of companies and holders of public electric power services under their control; providing loans and guarantees, locally or abroad, for technical and scientific research institutions; and promoting and supporting researches relating to the power sector, linked the generation, transmission and distribution of electric power, as well as studies involving the exploitation of hydrographical basins for various purposes. About Industrias Metalurgicas Industrias Metalurgicas Pescarmona SAIC& F aka IMPSA -- http://www.impsa.com.ar/ -- is one of the largest worldwide providers of integrated energy solutions for hydropower and wind energy projects through the production of capital goods and by investing in power generation projects. The company has offices in Malaysia, China, and Argentina. * * * Fitch Argentina confirmed the BB- (arg) rating to the Obligaciones Negociables Series 8, 9, 10, 11 and 12 issued by Industrias Metalurgicas Pescarmona SA, and the D (arg) rating the ONs Series 2 for US$150 million (effective balance US$804,000). * * * Moody's Latin America rated Industrias Metalurgicas Pescarmona's US$150 million bond issuance under its US$250 million global program at D. The unpaid debt since May 20, 2002, amounts to US850,000. The rating action is based on the company's financial standing at April 30, 2006. LUCENT TECH: Nortel Sells UMTS Access Business to Alcatel-Lucent ---------------------------------------------------------------- Nortel Networks has reached a definitive agreement for the sale of certain assets and the transfer of certain liabilities related to the company's UMTS access business to Alcatel-Lucent. It follows the signing of the non-binding Memorandum of Understanding between the two companies disclosed on Sept. 1, 2006. The transaction is a US$320 million cash transaction, less significant deductions and transaction related costs. The parties have agreed to target a closing at year end, and in any event, a closing within 90 days of the announcement on Dec. 4, 2006. Approximately 1,700 of Nortel's UMTS access business employees will transfer to Alcatel-Lucent. "The completion of this transaction will allow Nortel to increase resources dedicated to our strategic business priorities. It also positions Alcatel-Lucent to be successful in the UMTS access market with an infusion of great technology and great people," said Mike Zafirovski, president and chief executive officer, Nortel. "This transaction is a win-win for both companies, but more importantly, for our customers. We will continue to work with Alcatel-Lucent to ensure the transition is seamless to our customers." "Nortel is committed to developing the wireless technologies that will deliver 4G Mobile Broadband and this provides one more step in reaching that objective," said Richard Lowe, president, Mobility and Converged Core Networks, Nortel. "Nortel is focused on providing the foundation for the coming mobile video and multimedia revolution that mobile network operators will soon face. At the same time, we will continue delivering superior value to our GSM and CDMA customers, as well as our customers that have deployed our UMTS core networks". Completion of the transaction is subject to, among other things, the conclusion of consultations with works councils and other employee representatives, finalization of the terms of certain ancillary agreements including a transitional services agreement whereby Nortel will provide to Alcatel-Lucent setup, infrastructure and application services for a defined period of time as well as customary closing conditions including regulatory approvals. 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 Nortel 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. 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. LUCENT: Alcatel-Lucent Extended Consent Solicitation Expiration --------------------------------------------------------------- Alcatel-Lucent, the company formed by Alcatel and Lucent Technologies' merger, has extended until 5 p.m. Eastern Standard Time on Dec. 5, 2006, its consent solicitation from holders of Lucent's 2.75% Series A Convertible Senior Debentures due 2023 and 2.75% Series B Convertible Senior Debentures to allow holders additional time to deliver consents. The consent solicitation was scheduled to expire at 5 p.m. EST on Dec. 1, 2006. All holders of the debentures who have previously delivered consents do not need to redeliver the consents. As stated in the supplement to the joint consent solicitation statement/prospectus, dated Nov. 27, 2006, Alcatel-Lucent will pay a one-time consent fee only to holders who deliver valid consents in accordance with the terms of the consent solicitation on or prior to the expiration date and do not revoke their consents. For each US$1,000 in principal amount of each series of debentures for which consents are received, consenting holders will receive the product of US$7.50 multiplied by a fraction, the numerator of which is the aggregate principal amount of debentures of each series outstanding on the expiration date, and the denominator of which is the aggregate principal amount of debentures of each series for which Alcatel-Lucent received and accepted consents. All other terms of the consent solicitation stated in the joint consent solicitation statement/prospectus, dated Nov. 14, 2006, and the supplement to the joint consent solicitation statement/prospectus, dated Nov. 27, 2006, remain applicable, including Alcatel-Lucent's obligation to provide a full and unconditional guaranty, which is unsecured and subordinated to senior debt, of each series for which Alcatel-Lucent has received and accepted consents, regardless of whether a holder delivered and did not revoke its consent prior to the expiration date. Holders of the debentures can obtain copies of the joint consent solicitation statement/prospectus and supplement to the joint consent solicitation statement/prospectus from: D.F. King & Co. Information Agent Tel: +1 (888) 887-0082 (U.S. toll-free) +1 (212) 269- 5550 (for banks and brokers) Bear, Stearns & Co. Inc. is acting as the Solicitation Agent for the consent solicitation and can be contacted at +1 (877) 696-BEAR (toll-free). 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. NET SERVICOS: Expanding Triple Play Services to 43 Cities --------------------------------------------------------- Net Servicos de Comunicacao SA will expand its triple play services to 43 cities by March 2007, Agencia Estado reports. According to Agencia Estado, Net Servicos currently covers 12 cities. Business News Americas relates that Net Servicos is investing BRL650 million to boost its bi-directional network in a process that should be completed by September 2007. Net Servicos is raising BRL900 million this year to fund its plans. Of the amount, BRL580 million be acquired through debentures while US$150 million will come from perpetual bonds, BNamericas states. Net Servicos will adopt the seal "Market Relations Exemplary Disclosure" in all its information disclosures, reports and presentations to the capital markets and investor relations website. The seal has semi-annual validity (until the end of June/07) and KPMG will be responsible for performing the periodical revisions to allow for subsequent renewals. 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. NOVELL INC: Names Colleen O'Keefe Vice President of Services ------------------------------------------------------------ Novell names Colleen O'Keefe senior vice president of services at Novell. A former NCR executive, Ms. O'Keefe will oversee Novell's technical support offerings, critical competitive differentiators for Novell in the Linux market. With over 28 years in operations and services positions in the telecommunication and technology sector, Ms. O'Keefe brings deep expertise that will help ensure Novell customers receive world-class services to optimize the value of their Novell investments. "The Linux and open source model is based primarily on services offerings, since the software itself is free, so vendors like Novell increasingly compete on the quality of the services they deliver," said Ron Hovsepian, president and CEO of Novell. "Colleen has spent a career developing and delivering world class services for industry leading companies like NCR, AT&T and more. We're excited to have a proven senior leader like Colleen taking charge of Novell's services business as we attack new opportunities in the market for our Linux and management offerings." As senior vice president for services, Ms. O'Keefe will oversee Novell's global technical support group, which provides both onsite and telephone support services, as well as outsourced IT management services to customers. She will report to Hovsepian. Ms. O'Keefe joins Novell after four years at NCR, where she served most recently as vice president and general manager, Payment Solutions Division. Prior to NCR, she served as senior vice president, Customer Services, at Global Crossing, and senior vice president, Telecom Operations, at e.Spire Communications. Earlier in her career, she served as Local Operations Vice President at AT&T, and spent 18 years at Southern New England Telecommunications in a variety of business and management roles. She has an Masters in Business Administration from the University of Hartford, and a Bachelor's degree in economics from the College of the Holy Cross. "Linux and open source are revolutionizing the software industry, and the value of what vendors deliver to customers is moving away from a license model toward services," said Ms. O'Keefe. "Novell is one of the leaders in driving this new paradigm. At the same time, Novell has more than two decades delivering enterprise class services to customers, so we're perfectly positioned to lead this charge. I look forward to making Novell the company that customers want to work with to meet their IT needs." Novell is a member of and an active contributor to both the OASIS Open Document Format for Office Applications Technical Committee, the body that manages and publishes the OpenDocument standard, and the Ecma International Technical Committee (TC45) that develops, manages and publishes the Open XML standard. Novell is the second-leading contributor to the OpenOffice.org project. Novell, Inc. -- http://www.novell.com/-- delivers Software for the Open Enterprise. With more than 50,000 customers in 43 countries, Novell helps customers manage, simplify, secure and integrate their technology environments by leveraging best-of-breed, open standards-based software. Novell has sales offices in Argentina, Brazil and Colombia. As reported in the Troubled Company Reporter on Sept. 29,2006, Novell, has received a letter from Wells Fargo Bank, NA, the trustee with respect to company's US$600 million 0.50% convertible senior debentures due 2024, which asserts that Novell is in default under the indenture because of the delay in filing its Form 10-Q for the period ended July 31, 2006. The letter states that this asserted default would not become an "event of default" under the indenture if the company cures the default within 60 days after the date of the notice. NOVELL: Boosts OpenOffice & Microsoft Office Interoperability ------------------------------------------------------------- Novell Inc. disclosed that the Novell edition of the OpenOffice.org office productivity suite will now support the Office Open XML format, increasing interoperability between OpenOffice.org and the next generation of Microsoft Office. Novell is cooperating with Microsoft and others on a project to create bi-directional open source translators for word processing, spreadsheets and presentations between OpenOffice.org and Microsoft Office, with the word processing translator to be available first, by the end of January 2007. The translators will be made available as plug-ins to Novell's OpenOffice.org product. Novell will release the code to integrate the Open XML format into its product as open source and submit it for inclusion in the OpenOffice.org project. As a result, end users will be able to more easily share files between Microsoft Office and OpenOffice.org, as documents will better maintain consistent formats, formulas and style templates across the two office productivity suites. "Novell supports the OpenDocument format as the default file format in OpenOffice.org because it provides customer choice and flexibility, but interoperability with Microsoft Office has also been critical to the success of OpenOffice.org," said Nat Friedman, Novell chief technology and strategy officer for Open Source. "OpenOffice.org is very important to Novell, and as our customers deploy Linux* desktops across their organizations, they're telling us that sharing documents between OpenOffice.org and Microsoft Office is a must-have. The addition of Open XML support reflects Novell's commitment to providing enterprise customers the tools they need to be successful, from the desktop to the data center." Chris Capossela, corporate vice president, Microsoft Business Division Product Management Group, said, "This is further evidence to our mutual customers that Novell and Microsoft have the same commitment to document interoperability and customer choice for document technology. As a leader in the open source community, Novell can help us make sure the Open XML translation technology works well across different applications and platforms. Novell has already provided contributions to the Ecma Open XML standard, and this commitment to support the Open XML format via their product makes it work for customers." The Open XML format is an open standard file format for office applications that can be freely implemented by multiple applications on multiple platforms. The Open XML format was originated by Microsoft and standardized by the Ecma International organization's technical committee, TC45. It is presented for Ecma General Assembly approval on Dec. 7, 2006, with the intention to offer the specification for formal ISO/JTC1 standardization. Open XML is the default format for the recently released Microsoft Office 2007. The Open XML format is also available through free updates to past Microsoft Office versions. With an estimated 100 million users, OpenOffice.org is a full-featured, open source office productivity suite with word processing, spreadsheet, presentation and database applications. OpenOffice.org currently supports the OpenDocument (ODF) file format, which is an ISO-standardized, XML-based file format specification for office applications maintained by the open source community. The OpenDocument format ensures information saved in spreadsheets, documents and presentations is freely accessible to any OpenDocument- supporting application. OpenOffice.org is available free of charge at http://www.openoffice.org. Novell provides and supports OpenOffice.org for both Linux and Windows as part of its SUSE Linux Enterprise Desktop and Novell Open Workgroup Suite offerings, respectively. The open source Open XML/ODF Translator project can be viewed at this internet location: http://sourceforge.net/projects/odf-converter. Novell is a member of and an active contributor to both the OASIS Open Document Format for Office Applications Technical Committee, the body that manages and publishes the OpenDocument standard, and the Ecma International Technical Committee (TC45) that develops, manages and publishes the Open XML standard. Novell is the second-leading contributor to the OpenOffice.org project. Novell, Inc. -- http://www.novell.com/-- delivers Software for the Open Enterprise. With more than 50,000 customers in 43 countries, Novell helps customers manage, simplify, secure and integrate their technology environments by leveraging best-of-breed, open standards-based software. Novell has sales offices in Argentina, Brazil and Colombia. As reported in the Troubled Company Reporter on Sept. 29,2006, Novell, has received a letter from Wells Fargo Bank, NA, the trustee with respect to company's US$600 million 0.50% convertible senior debentures due 2024, which asserts that Novell is in default under the indenture because of the delay in filing its Form 10-Q for the period ended July 31, 2006. The letter states that this asserted default would not become an "event of default" under the indenture if the company cures the default within 60 days after the date of the notice. PETROLEO BRASILEIRO: May Delay Piranema Crude Field Launching ------------------------------------------------------------- Petroleos Brasileiro SA, the states-owned oil firm of Brazil, may have to postpone the launching of the Piranema light crude field due to lack of licensing for the production unit that will operate it, Sevan Marine, a Norwegian oil services company said in a statement. The Piranema field is 37 kilometers off the Sergipe coast in the SEAL-100 block in the Sergipe-Alagoas sedimentary basin. The field has water depths of up to 1,600 meters and contains 44 degree API light crude. Sevan Maine has leased the 30,000-barrel per day SSP Piranema floating, production, storage and offloading vessel or FPSO, Business News Americas relates. Sevam Marine told BNamericas that though the FPSO has reached Brazil, it can't be taken to the Piranema field in Sergipe for lack of licensing from Ibama, the federal environmental protection agency. Petroleo Brasileiro and Sevam Marine are looking for a location to for FPSO while it has not secured licensing, BNamericas states. About Sevan Marine Sevan Marine ASA is a Norway-based engineering company active within the oil and gas industry. The company is engaged primarily in the design, engineering, construction, ownership and operation of floating units for offshore oil and gas production, storage and offloading. It is operational in Norway and Brazil through five subsidiaries: Sevan Marine do Brasil Ltda, Sevan Production AS, Sevan Invest AS, Sevan Drilling AS and Kanfa AS. The Company's principal product is the Sevan stabilized platform, which is an offshore installation with an oil storage capacity of up to two million barrels. Sevan Marine ASA has offices in Norway, Rio de Janeiro, Brasil and Singapore. About Petroleo Brasileiro 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. UNIAO DE BANCOS: Remains in Corporate Sustainability Index ---------------------------------------------------------- Uniao de Bancos Brasileiros aka Unibanco was selected to be part of the ISE index in 2007. The Bovespa's Corporate Sustainability Index main purpose is to create an investment environment, compatible with society demand towards a sustainable development, and to stimulate ethical responsibility among corporations. ISE reflects the return of a portfolio comprised by stocks of companies committed to social responsibility and corporate sustainability, and acts to promote good practices in the Brazilian market. In the second year in force, ISE will be composed by 43 stocks of 34 companies. The new theorical portfolio will be valid for one year from December 2006 to November 2007. Unibanco's weighting will be 5.884%. Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York - Unibanco Securities Inc. * * * As reported on Sept. 4, 2006, Moody's Investors Service upgraded these ratings of Uniao de Bancos Brasileiros SA: -- long-term foreign currency deposits to Ba3 from Ba1; and -- long- and short-term global local currency deposit ratings to A1/Prime-1 from A3/Prime-2. Moody's rating action was the direct result of the upgrade of Brazil's country ceiling for foreign currency bonds and notes to Ba2, from Ba3, as well as Brazil's country ceiling for foreign currency bank deposits to Ba3, from B1, and the local currency bank deposit ceiling to A1, from A3. USINAS: S&P Says Ratings Reflect Volatility of Steel Industry ------------------------------------------------------------- The ratings on Usinas Siderurgicas de Minas Gerais SA aka Usiminas reflect: -- its exposure to the cyclical and volatile global steel sector; -- its reliance on the equally volatile economic and operating environment of its home market of Brazil; -- the increasing competition within the Brazilian steel industry; and -- the risks associated with the company's significant capital expenditures program. These risks are tempered by: -- Usiminas' sound financial profile, with total debt levels and liquidity currently very conservative; -- a solid business profile, made evident by a very competitive cost structure; -- resilient operating profitability and robust free cash generation through economic cycles; and -- a favorable market position in the fairly concentrated flat carbon steel sector in Brazil, in particular in the higher end, quality-products segments. The ratings on Usiminas reflect the combined operating and financial profiles of Usiminas and its wholly owned subsidiary Companhia Siderurgica Paulista aka Cosipa, as well as their respective subsidiaries. Usiminas' consolidated revenues and EBITDA amounted to US$4.2 billion and US$1.5 billion, respectively, in the nine months ended Sept. 30, 2006, equivalent to 6.0 million tons shipped. About 34% of its consolidated shipments in the period were destined for export markets. Usiminas' operating performance began to recover strongly in third-quarter 2006 as a result of improving domestic demand. Peak prices through second-quarter 2006 and still reasonably strong prices in the third quarter also helped the company boost profitability, which led the EBITDA margin to return to 39% in third-quarter 2006 alone. Global steel market conditions are expected to remain benign in 2007, although some mild price pressures are possible. In any event, Usiminas' sound product portfolio, favorable logistics, modern facilities, streamlined operations, and low legacy costs are positives that place the company in an advantageous position compared with its global peers, particularly in the U.S., Europe, and China. The company's financial profile remained stable through the nine months of 2006 and is regarded as the most conservative among the Brazilian steel makers. Cash-flow protection measures remained quite strong for the rating category, with funds from operations to total debt at 64%, total debt to EBITDA at 1.1x, and EBITDA interest coverage at 6.0x for the 12 months ended Sept. 30, 2006. These ratios reflect the company's currently low debt levels and its ability to preserve cash flows, even under negative conditions in its main market. Debt should marginally increase in the next couple of years, as the company will be financing a large portion of its capital expenditures budget from 2006 to 2010. Nevertheless, we see resilience in the company's ratios. Even assuming that EBITDA margins will be at the lower end of historic levels and that steel prices will be more restrained for this period, we still expect Usiminas' funds from operation to total debt to average a strong 40% and total debt to EBITDA to average less than 2.0x. On Nov. 6, 2006, Usiminas announced that its shareholders completed a new arrangement under which Companhia Vale do Rio Doce has joined Usiminas' shareholders agreement, at the same time that existing controlling shareholders Votorantim Group, Camargo Correa S.A., and Nippon Steel Corp. have increased their respective voting shares. Standard & Poor's believes these changes in Usiminas' ownership structure are rating neutral, as the company is expected to preserve its current prudent financial stance. The new shareholders agreement composition may speed up the analysis of Usiminas' expansion projects. While our ratings do not totally factor in Usiminas' long-term "second wave" of investments, which include the construction of a greenfield 5-million-tons-per-year steel mill at a cost of US$3 billion, we believe that Usiminas will try to sustain its current prudent debt profile and sound liquidity even if it decides to go ahead with this project. Liquidity Usiminas' liquidity remains sound. The company reported cash and cash equivalent reserves of US$923 million as of Sept. 30, 2006, compared with short-term debt maturities of US$437 million through September 2007. Besides those cash reserves, Usiminas counts on a standby credit facility in the amount of US$250 million that is fully available through mid-2007 and has a two-year repayment tenor. Debt concentration is low and limited to two bonds. Otherwise, the debt maturity schedule is fairly smooth. Higher capital expenditures should put some pressure on free operating cash flow, but we expect the company to be marginally net cash-flow positive because of the positive fundamentals for the industry in the next couple of years. Outlook The stable outlook reflects our expectation that programmed capital expenditures and associated financing debt will not hurt the company's credit measures, which should remain consistent with the rating category. We believe these ratios can be sustained even if steel prices decline and costs are not adjusted downward at the same pace. A negative rating revision, however, could be triggered if Usiminas continually breaches its target ratios, as this would likely indicate either deterioration in the positive business fundamentals sustaining the ratings or signal a departure from the company's currently prudent financial policies. On the other hand, the company's significant capital expenditures and its expected marginal increase in debt leverage in the years ahead limit upward potential for the ratings. If there were a positive revision, it would stem from a material improvement in the company's business profile, either from a better competitive position or business diversification, provided that financial policies remain sound. Standard & Poor's Ratings Services affirmed on June 7, 2006, its 'BB+' long-term corporate credit rating on Brazil-based steel maker Usinas Siderurgicas de Minas Gerais SA -- Usiminas. Standard & Poor's said that the outlook on the corporate credit rating is stable. =========================== C A Y M A N I S L A N D S =========================== CORONATION CAPITAL: Proofs of Claim Submission Is Until Dec. 14 --------------------------------------------------------------- Coronation Capital Arbitrage Fund (Cayman Islands)'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. Coronation Capital's shareholders agreed on Oct. 20, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Quin & Hampson c/o P.O. Box 1348 Grand Cayman, Cayman Islands Tel: (+1) 345 949 4123 Fax: (+1) 345 949 4647 DAWOODIYAH - II: Creditors Must File Proofs of Claim by Dec. 14 --------------------------------------------------------------- Dawoodiyah - II Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: Buchanan Limited P.O. Box 1170 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. Dawoodiyah - II'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. Parties-in-interest may contact: Francine Jennings P.O. Box 1170 Grand Cayman, Cayman Islands Tel: (345) 949-0355 Fax: (345) 949-0360 FGI LIONS: Creditors Have Until Dec. 14 to File Proofs of Claim --------------------------------------------------------------- FGI Lions' creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Mark Wanless Liam Jones Maples Finance Jersey Limited 2nd Floor, Le Masurier House La Rue Le Masurier St. Helier, Jersey JE2 4YE 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. FGI Lions' 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. HARBERT (MASTER): Claims Submission Deadline Is Set for Dec. 14 --------------------------------------------------------------- Harbert Global Macro Master Fund, Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: William R. Lucas, Jr. c/o One Riverchase Parkway South, Birmingham Alabama, 35244, U.S.A. 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. Harbert Global's shareholders agreed on Oct. 19, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Ogier P.O. Box 1234, George Town Grand Cayman, Cayman Islands Attn: Julie O'Hara Tel: (345) 949 9876 Fax: (345) 949 1986 HARBERT (OFFSHORE): Claims Filing Deadline Is Set for Dec. 14 ------------------------------------------------------------- Harbert Global Macro Offshore Fund, Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: William R. Lucas, Jr. c/o One Riverchase Parkway South, Birmingham Alabama, 35244, U.S.A. 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. Harbert Global's shareholders agreed on Oct. 19, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Ogier P.O. Box 1234, George Town Grand Cayman, Cayman Islands Attn: Julie O'Hara Tel: (345) 949 9876 Fax: (345) 949 1986 HERMOSA INVESTMENTS: Filing of Proofs of Claim Is Until Dec. 14 --------------------------------------------------------------- Hermosa Investments Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: Buchanan Limited P.O. Box 1170 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. Hermosa Investments' 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. Parties-in-interest may contact: Francine Jennings P.O. Box 1170 Grand Cayman, Cayman Islands Tel: (345) 949-0355 Fax: (345) 949-0360 MOUNTCASHEL FUND: Last Day for Filing of Claims Is on Dec. 14 ------------------------------------------------------------- Mountcashel Fund'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. Mountcashel Fund's shareholders agreed on Oct. 11, 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 PARETO POWER MASTER: Proofs of Claim Filing Is Until Dec. 14 ------------------------------------------------------------ Pareto Power 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. Pareto Power's shareholders agreed on Sept. 22, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Quin & Hampson c/o P.O. Box 1348 Grand Cayman, Cayman Islands Tel: (+1) 345 949 4123 Fax: (+1) 345 949 4647 PARETO POWER: Last Day for Proofs of Claim Filing Is on Dec. 14 --------------------------------------------------------------- Pareto Power 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. Pareto Power's shareholders agreed on Sept. 22, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Quin & Hampson c/o P.O. Box 1348 Grand Cayman, Cayman Islands Tel: (+1) 345 949 4123 Fax: (+1) 345 949 4647 RESOURCES FUND: Deadline for Proofs of Claim Filing Is Dec. 14 -------------------------------------------------------------- The Resources Fund 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 Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9002, 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. Resources Fund's shareholders agreed on Oct. 25, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. SB FINANCE CI-1: Proofs of Claim Filing Deadline Is on Dec. 14 -------------------------------------------------------------- SB Finance CI-1's creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Richard Ellison Jan Neveril Maples Finance Limited P.O. Box 1093, 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. SB Finance CI-1's shareholders agreed on Oct. 30, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. SHEYENNE INCORPORATION: Proofs of Claim Must be Filed by Dec. 14 ---------------------------------------------------------------- Sheyenne Incorporation Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: Buchanan Limited P.O. Box 1170 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. Sheyenne Incorporation'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. Parties-in-interest may contact: Francine Jennings P.O. Box 1170 Grand Cayman, Cayman Islands Tel: (345) 949-0355 Fax: (345) 949-0360 SPINNAKER CDO: Last Day to File Proofs of Claim Is on Dec. 14 ------------------------------------------------------------- Spinnaker CDO Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidators: Mark Wanless Liam Jones Maples Finance Jersey Limited 2nd Floor, Le Masurier House La Rue Le Masurier St. Helier, Jersey JE2 4YE 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. Spinnaker CDO'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. THALES GROWTH: Creditors Must Submit Proofs of Claim by Dec. 14 --------------------------------------------------------------- Thales Growth Fund'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. Thales Growth's shareholders agreed on Oct. 27, 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 WILDFLOWER INVESTMENTS: Claims Filing Deadline Is on Dec. 14 ------------------------------------------------------------ Wildflower Investments Ltd.'s creditors are required to submit proofs of claim by Dec. 14, 2006, to the company's liquidator: Buchanan Limited P.O. Box 1170 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. Wildflower Investments' 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. Parties-in-interest may contact: Francine Jennings P.O. Box 1170 Grand Cayman, Cayman Islands Tel: (345) 949-0355 Fax: (345) 949-0360 ========= C H I L E ========= CLAXSON INTERACTIVE: Fitch Argentina Rates US$41.3-Mln Debt at B ---------------------------------------------------------------- Fitch Argentina Calificadora de Riesgo assigned a BB rating on Claxson Interactive Group Inc.'s US$41.3 million debt. This means an increase which responds to the growth in the level of generation of funds of the companies of the group. Also, the repaying capacity has been favored. Claxson has still a high level of debt. It has a high relation debt/capitalization (69%) because of the Argentine crisis over the debt of Imagen Satelital. By September 2006, the total debt reached US$69 million (including the US$9.4 million for interests of obligaciones negociables) and its main components of the ONs for US$39 million, plus a syndicated debt under Radio Chile for US$13.8 million. By June 2006, Claxson had US$26 million in cash. The second installment of amortization will happen in July 2007 and will be for US$9.6 million. About Claxson Interactive Claxson Interactive Group Inc. distributes content through pay and broadcast television, radio, and the Internet. It owns or distributes interests in more than a dozen pay TV channels, including Playboy TV Latin America (81%). The company also owns a handful of Internet businesses (under the El Sitio name). Claxson, which operates throughout North and South America, was formed by the 2001 merger of El Sitio and Ibero-American Media Partners, a joint-venture between the Cisneros Group of Companies and HM Capital Partners. CGC and HM Capital together own about 60% of the company. Headquartered in Buenos Aires, Argentina, and Miami, Florida, Claxson has a presence in the United States and all key Ibero- American countries, including without limitation, Argentina, Mexico, Chile, Brazil, Spain and Portugal. Claxson's principal shareholders are the Cisneros Group of Companies and funds affiliated with Hicks, Muse, Tate & Furst Inc. ENDESA CHILE: Regulator Grants Aysen Impact Studies Concession -------------------------------------------------------------- The power regulator of Chile grants Endesa, the Spanish parent of Empresa Nacional de Electricidad SA aka Endesa Chile, a concession to conduct the engineering and environmental impact studies for the 2.5-gigawatt Aysen project in Region XI, according to a report by the official gazette of Chile. Business News Americas relates that the US$4-billion project consists of US$2.4 billion for four hydroelectric projects: -- two on the Baker river, and -- two on the Pascua river plus a fifth smaller plant. Endesa Chile and Colbun form the 51:49 project joint venture, which was dubbed as Centrales Hidroelectricas de Aysen developing the project, BNamericas notes. BNamericas states that Endesa signed a memorandum of understanding with Transelec to develop a 2,000-kilometer transmission line to take energy from Aysen to the Chile's central SIC grid. According to BNamericas, the project has been protested by environmentalists, tourism agencies and salmon and cattle farmers. However, Endesa told BNamericas that the project would: -- diversify energy supply, -- boost generation capacity by 30% in the central grid, and -- create 4,000 jobs. Empresa Nacional de Electricidad SA aka Endesa Chile and its subsidiaries generate and supply electricity. The company owns and operates generating plants, and offers civil, mechanical, and electrical engineering, architectural environmental, and project management services. * * * Moody's Investor Service assigned a Ba1 foreign currency long- term debt rating to Empresa Nacional de Electricidad SA (Chile) on Jan. 26, 2005. =============== C O L O M B I A =============== ARMOR HOLDINGS: Receives US$649MM Order for Added FMTV Trucks ------------------------------------------------------------- Armor Holdings, Inc., receives a US$649 million order for production of additional Family of Medium Tactical Vehicle or FMTV trucks from the U.S. Army Tank-automotive and Armaments Command. The Company advised that the award is made under the existing multi-year FMTV production contract, with work to be performed in 2007 and 2008 by the Aerospace & Defense Group at its facilities located in Sealy, Texas. Robert Schiller, President of Armor Holdings, stated, "This award represents continued increases in production rates for significant quantities of FMTV trucks, which are vital to our Armed Forces' capability. We are extremely proud that the U.S. Army continues to demonstrate confidence in Armor Holdings' ability to respond to the increasing demands of today's defense environment and look forward to anticipated additional FMTV awards as we increase our production capacity to meet even greater demand." Headquartered in Jacksonville, Florida, Armor Holdings, Inc. -- http://www.armorholdings.com/-- manufactures and distributes security products and vehicle armor systems for the law enforcement, military, homeland security, and commercial markets. The company's mobile security division are located in Mexico, Venezuela, Colombia and Brazil. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency confirmed its Ba3 Corporate Family Rating for Armor Holdings Inc. Additionally, Moody's affirmed its B1 ratings on the company's 2% Convertible Senior Subordinated Notes Due 2024 and 8.25% Senior Subordinated Notes Due 2013. Moody's assigned those debentures an LGD5 rating suggesting noteholders will experience a 77% loss in the event of default. ============= J A M A I C A ============= NATIONAL COMMERCIAL: Providing J$500-Million Loan for Exporters --------------------------------------------------------------- The National Commercial Bank of Jamaica has launched a J$500-million loan fund for exporters, the Jamaica Gleaner reports. The Gleaner relates that Dennis Cohen, the deputy group managing director of the National Commercial Bank of Jamaica, has signed the financing accord with Dr. Andre Gordon, the president of Jamaica Exporters' Association, to allow maximum loans of J$15 million from the fund. The loan floor is J$500,000 to the 412 members of the Jamaica Exporters members. The National Commercial said in a statement, "Individual members can access funds for business-related expenses, including commercial expansion and restructuring initiatives, major expenses such as equipment purchases, building acquisition or development, financing commercial vehicles and overall working capital support." The Gleaner underscores that members of Jamaica Exporters with accounts in the National Commercial will access the loans at 12.75% for Jamaican dollar disbursements and 8.25% for funds paid out in US currency. Meanwhile, exporters with no accounts in the National Commercial will pay back loans at 16.75% and 9.75%, respectively. The loans are repayable within an eight-year period. Exports were poised for a record year, The Gleaner notes, citing Dr. Gordon. He said, "With luck, we could possibly break the US$2 billion mark for the first time. We are conservatively projecting total non-traditional exports to exceed US$567 million while total exports should exceed US$1.98 billion." Non-traditional exports had increased by over 20% since 2004, Dr. Gordon told The Gleaner. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2006, Fitch initiated rating coverage on Jamaica's National Commercial Bank Jamaica, Ltd., by assigning 'B+' ratings on the bank's long-term foreign currency. Other ratings assigned by Fitch include: -- Long-term local currency 'B+'; -- Short-term foreign currency 'B'; -- Short-term local currency 'B'; -- Individual 'D'; -- Support '4'. Fitch said the ratings have a stable rating outlook. SUGAR COMPANY: Union Says Projected 10% Output Boost Not Enough --------------------------------------------------------------- Pearnel Charles, the vice president of the Bustamante Industrial Trade Union, has refuted the remarks of Dr. Richard Harris, the chief executive officer of the Sugar Company of Jamaica, saying that the forecasted 10% growth in sugar production for the next crop won't be enough for the sugar sector to become viable, Radio Jamaica reports. Radio Jamaica relates that Dr. Harris had said that the five state-owned factories of the Sugar Company will boost output to 110 tons from 100 tons for the next crop this month. However, Mr. Charles told Radio Jamaica that the increase in sugar production must be above 10% for the sector to be viable, and this growth can be achieved if there is a real partnership between management and workers of the Sugar Company. Roger Clarke, the agriculture minister, assured the union that increased productivity will be the focus of the sugar industry over the next few years, Radio Jamaica notes. The initial production target should be up to 160 tons of sugar if the industry is to continue, Radio Jamaica says, citing Minister Clarke. Minister Clarke is urging farmers to start preparation for the next crop, Radio Jamaica states. 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. SUGAR COMPANY: Will Carry Out Management Shake-Up ------------------------------------------------- The Sugar Company of Jamaica will carry out a management shake-up to maximize efficiency and production, the Jamaica Gleaner reports. Roger Clarke, the agriculture and lands minister of Jamaica, explained to The Gleaner, "The management structure has been reorganized, we are more focused now on people (being) on the base." This is to improve the system at the five sugar factories, which are under the government's control, The Gleaner notes, citing Minister Clarke. There had been instances when one manager would be put in charge of two or more factories, The Gleaner says, citing Minister Clarke. Minister Clarke told The Gleaner, "We have brought it down to a situation where each estate is under the responsibility of an individual." The Sugar Company also received J$1.7 billion from the Finance Ministry to settle a J$2-billion operating deficit incurred from a highly inefficient production system that produces sugar mainly to satisfy export commitments, The Gleaner relates, citing Minister Clarke. The Gleaner relates that the Jamaican Ministry of Finance is also injecting J$600 million into the Sugar Company to help it prepare for the 2006-2007 harvesting crop. The funds from the Finance Ministry would let the Sugar Company implement the needed repairs and acquisition of equipment for the preparation for the sugar harvest, Farmers Weekly notes, citing Minister Clarke. According to The Gleaner, the Jamaican government decided to focus on the streamlining of operations of the sugar sector, with the European Union reducing the price paid for sugar coming from Jamaica and other ACP countries by 36% over four years. The Gleaner underscores that the government decided to implement necessary changes to attract private investors. Meanwhile, the Frome sugar factory in Westmoreland will start production on Dec. 7. The other factories will start operating by the second week of January 2007, The Gleaner states. 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: Posts US$20.1 Mil. Net Loss in 2006 3rd Quarter ---------------------------------------------------------------- Alaska Airlines Inc. reported a US$20.1 million net loss on US$759.9 million of total revenues for the quarter ended Sept. 30, 2006, compared with an US$82.3 million net income on US$689.3 million of total revenues for the same period in 2005. At Sept. 30, 2006, the company's consolidated balance sheet showed US$3.78 billion in total assets, US$3.03 billion in total liabilities, and US$746.4 million in total stockholders' equity. The net loss for the third quarter of 2006 was driven principally by fleet transition costs, restructuring charges, and the downward mark-to-market adjustment of the fuel hedge portfolio as a result of declining oil prices. In addition, the strong revenue recorded in the third quarter of 2006 was offset by significantly higher economic fuel costs and a small increase in other operating expenses. The company recorded a US$58.4 million charge in the third quarter for the impairment, including the write-off of US$1.8 million of leasehold improvements related to the purchase of five of the leased MD-80s which the company plans to retire by the end of 2008 and replacing these with an all Boeing 737 fleet. The charge was offset by the reduction of US$7.5 million of deferred rent associated with the acquired aircraft. During the third quarter incurred total restructuring charges and adjustments of US$28.6 million, as a result of new four-year agreements with the company's employees, all represented by the International Association of Machinists which included a signing bonus of US$1.9 million in July 2006, an immediate 2% wage increase, and a severance package based on years of service, one year of medical coverage after the severance date, and continued travel privileges for a period of time. Because of the recent decline in world oil prices, the company recorded a mark-to-market fuel hedging loss of US$56.2 million, which is included in aircraft fuel costs, compared to US$19.9 million of gain in the third quarter of 2005. In the third quarters of 2006 and 2005, the company also recorded gains from settled fuel hedges totaling US$23.6 million and US$37.8 million, respectively, which are also recorded in aircraft fuel. Alaska Air Group, Inc. -- http://www.alaskaair.com/ -- is the holding company for Alaska Airlines and Horizon Air, Seattle-based carriers that collectively serve more than 70 destinations in the Western U.S., Canada, and Mexico. Alaska Air Group was organized as a Delaware corporation in 1985. Horizon Air Industries, Inc. provides air transportation to more than 40 destinations in Washington, Oregon, Idaho, Montana, California, Arizona, Colorado, British Columbia, and Alberta. Alaska Airlines, Inc., an Alaska corporation founded in 1932, which accounts for about 80% of Air Group revenues, provides scheduled air service to 38 cities in Alaska, Washington, Oregon, California, Nevada, Arizona, and British Columbia, plus Chicago and five destinations in Mexico. Alaska Airlines Inc.'s 9.5% Series A Certificates due April 12, 2010 carry Standard & Poor's B+ and Moody's B1 ratings. AXTEL SA: Completes Acquisition of Avantel for US$500 Million ------------------------------------------------------------- Axtel, S.A. de C.V. disclosed the closing of the acquisition of Avantel, consolidating Axtel's position as Mexico's second-largest fixed-line, integrated telecommunications company. This transaction has obtained the respective approvals from Mexico's anti-trust regulator, the Ministry of Communications and Transport, as well as from Axtel's shareholders. The transaction totals US$500 million including the assumption of Avantel's existing debt. With the closing of this transaction, Axtel's revenues will exceed US$1 billion. The acquisition strengthens Axtel's position as an integrated telecommunications company providing local, long-distance, broadband, data and built-to-suit communications solutions to over 750,000 residential, small, medium and large customers, as well as multinational and government entities, throughout Mexico. This transaction benefits Axtel by combining Axtel's last-mile access technology with Avantel's IP-based network and over 7,700 kilometers of long- haul fiber optic network and 300 kilometers of metropolitan fiber optic ring. The transaction increases Axtel's capabilities to provide advanced voice and data solutions such as IP-based virtual private networks (VPNs), hosting and security to medium, large, corporate and government clients. Additionally, current customers of Avantel will benefit from Axtel's last-mile access capabilities, broadband offerings and the ability to provide bundled value- added services at attractive prices. Tomas Milmo Santos, Chairman and Chief Executive Officer of Axtel stated, "By closing this transaction, Axtel has taken a conclusive step towards consolidating our position in the Mexican telecommunications sector. We will leverage our enlarged portfolio of technological solutions and commercial products to exceed our customer's service expectations". * * * Axtel, SA de CV provides local and long distance telecommunications services, data transmission and Internet services in Mexico, to both residential and business customers. The company has 600,000 installed lines. Axtel posted net profits of MXP306 million (US$29 million) for 2005 compared to a loss of MXP79.6 million in 2004. As reported in the Troubled Company Reporter on Nov. 8, 2006, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating assigned to Axtel S.A. de C.V. following the announcement of a contract to acquire Avantel. The outlook was revised to negative from stable. BEARINGPOINT INC: Establishing SAP Center of Excellence ------------------------------------------------------- BearingPoint, Inc., will open a Center of Excellence at the SAP PartnerPort in Walldorf, Germany, on Dec. 12, 2006. BearingPoint will mark the occasion with a formal event beginning at 4:30 p.m. The center will serve to concentrate BearingPoint's SAP practice in Europe to work with BearingPoint's SAP applications group, as well as SAP customers and partners to deliver leading BearingPoint and SAP integrated applications. The Walldorf PartnerPort is dedicated to SAP partners, and is used as a central hub for collaboration between SAP, its partners and customers. "Establishing this center of excellence solidifies our commitment to work with SAP to develop the next generation of enterprise-level service-oriented architecture and business process platform solutions, as well as innovative, verticalized composite applications," said Kiumars Hamidian, managing director with BearingPoint's EMEA SAP Solutions group. Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE: BE) -- http://www.BearingPoint.com/-- provides of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. The firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. BearingPoint has global locations in Australia, Austria, Brazil, China, France, India, Indonesia, Japan, Mexico, Portugal, Singapore, Thailand, and the United Kingdom, among others. * * * As reported in the TCR-Europe on Oct. 11, Moody's downgraded and placed these ratings on review for further possible downgrade: * Corporate Family Rating --downgraded to B2 from B1 * US$250 million series A subordinated convertible bonds due 2024 --downgraded to B3 from B2 * US$200 million series B subordinated convertible bonds due 2024 --downgraded to B3 from B2. DANA CORP: Enters Into Stock & Asset Purchase Pact with MAHLE ------------------------------------------------------------- Dana Corp. has entered into a stock and asset purchase agreement with MAHLE GmbH, a leading supplier to the automotive and engine industries, for the sale of Dana's non-core engine hard parts business. The agreement provides for MAHLE and certain of its affiliates to acquire the equity and tangible and intangible assets of the global operations comprising Dana's engine hard parts business from Dana and certain of its affiliates for an aggregate price of approximately US$157 million. The price includes approximately US$98 million in cash, subject to usual adjustments at closing, and the buyers' assumption of certain liabilities related to the business. In connection with the transaction, the parties will also enter into ancillary agreements, including a transition services agreement and a distribution agreement relating to Victor Reinz branded products. Closing of the transaction is subject to the approval of the United States Bankruptcy Court for the Southern District of New York, which has jurisdiction over Dana's Chapter 11 reorganization proceedings; government regulatory approvals; and customary closing conditions. As a standard element of the bankruptcy process, Dana has filed a motion with the Bankruptcy Court seeking approval of procedures that will provide an opportunity for competitive bids on the engine hard parts business before the Court approves the sale. Dana expects to complete the bidding process and to secure the regulatory approvals in time to close the sale in the first quarter of 2007. The engine hard parts business consists of 39 facilities, which manufacture piston rings, engine bearings, cylinder liners, and camshafts under the Perfect Circle, Clevite, and Glacier Vandervell brands. With annual revenues of approximately US$670 million in 2005, the operations to be divested employ approximately 5,000 people in 10 countries. Dana announced its intention to sell its engine hard parts business in late 2005. Dana Chairman and CEO Mike Burns said, "This divestiture is an important step in implementing Dana's reorganization initiatives and sharpening our focus on our core axle, driveshaft, structural, sealing, and thermal products businesses for the automotive, commercial vehicle, and off-highway markets." Mr. Burns added, "This transaction also represents an excellent opportunity for MAHLE. While no longer central to Dana's future direction, our engine hard parts business and people have strong potential for an owner that is strategically focused on this market segment." About Dana Corp. Headquartered in Toledo, Ohio, Dana Corp. (OTC Bulletin Board: DCNAQ) -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. The Debtors' consolidated balance sheet at March 31, 2006, showed a US$456,000,000 total shareholder' equity resulting from total assets of US$7.788 billion and total liabilities of US$7.332 billion. When the Debtors filed for protection from their creditors, they listed US$7.9 billion in assets and US$6.8 billion in liabilities as of Sept. 30, 2005. EMPRESAS ICA: ICA Fluor Inks US$90MM Offshore Pact with PEMEX ------------------------------------------------------------- ICA Fluor, the industrial engineering company jointly owned by Fluor Corp. and Empresas ICA, signed a US$90 million contract for modular construction of offshore living quarters for PEMEX Exploration and Production. The quarters can house up to 150 people and will be built in Veracruz State, Mexico. The facility will be located in the Gulf of Mexico to serve several offshore fields like Cantarell, Ku-Maloob-Zap. The US$90 million contract was awarded to ICA Fluor's subsidiary Industria del Hierro through an international public bidding process. Iindustria del Hierro is dedicated to the construction of offshore platforms and modules. The contract will be booked in fourth quarter 2006 and the value will be split evenly between Fluor and Empresas ICA. Construction is slated to begin in February 2007. The contract is expected to be completed by June 2008. The project involves: -- engineering, -- procurement, -- construction, -- load out and seabed fastening, and -- dismantling and transportation of the existing offshore facilities. PEMEX Exploration and Production is a subsidiary of PEMEX, Mexico's state-owned integrated oil and gas company. Industria del Hierro's Mata Redonda yard in Veracruz State, Mexico, is the fabrication site. ICA Fluor is the leading industrial engineering company in Mexico, dedicated to the engineering, procurement, construction and maintenance of industrial facilities in the oil and gas, chemical, petrochemical, automotive, electricity, mining and telecommunication industries. Empresas ICA -- http://www.ica.com.mx/-- the largest engineering, construction, and procurement company in Mexico, was founded in 1947. ICA has completed construction and engineering projects in 21 countries. ICA's principal business units include civil construction and industrial construction. Through its subsidiaries, ICA also develops housing, manages airports, and operates tunnels, highways, and municipal services under government concession contracts and/or partial sale of long-term contract rights. * * * Standard & Poor's assigned these ratings to Empresas ICA, with stable outlook: -- LT Foreign Issuer Credit B; and -- LT Local Issuer Credit B. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 23, 2006, Standard & Poor's Ratings Services revised its long-term corporate credit rating on Empresas ICA S.A. de C.V. to 'BB-' from 'B'. The ratings were removed from CreditWatch Positive, where they were placed on April 7, 2006. The outlook is stable. FORD MOTOR: Inks MoU with Valeo to Sell ACH Business ---------------------------------------------------- Ford Motor Co. signed a Memorandum of Understanding for Valeo's purchase of the Automotive Components Holdings or ACH climate control business, including the Sheldon Road Plant in Plymouth Township, Mich. This paves the way for a Definitive Agreement and sale of the business to Valeo as soon as possible. The Sheldon Road plant produces automotive climate control systems and components for a number of Ford vehicles. It employs about 1,250 people, including salaried employees leased from Visteon and UAW hourly employees leased from Ford. It is part of Automotive Components Holdings, a Ford-managed temporary company formed in October 2005. "This is an important step for Ford's North American operations and the Way Forward Acceleration Plan, especially as we seek to reduce material costs over time," said Mark Fields, president of the Americas and Ford executive vice president. "This MOU follows a lot of hard work by this plant and the entire ACH team," said Al Ver, CEO and COO, Automotive Components Holdings, and Ford vice president. "We have focused on preparing our businesses for sale to buyers who can grow and invest in them." Automotive Components Holdings produces interior, climate, chassis and powertrain components and operates 11 plants in the United States and three in Mexico. "This acquisition is an important part of Valeo's strategy to be a global leader in its core product lines," said Thierry Morin, chairman and CEO, Valeo. The final agreement is contingent upon reaching a new and competitive agreement with the United Auto Workers. Further information related to the sale will be available after the sale is completed. 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 in Latin America. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company and The Hertz Corp. * * * As reported in the Troubled Company Reporter on Nov. 29, 2006, Standard & Poor's Ratings Services lowered its senior unsecured debt issue ratings on Ford Motor Co. to 'CCC+' from 'B' and removed the ratings from CreditWatch with negative implications, where they were placed on Oct. 23. At the same time, we affirmed the 'B' corporate credit rating and all other ratings on Ford, Ford Motor Credit Co., and related entities. Fitch Ratings has also downgraded Ford Motor Company's senior unsecured debt to 'B/RR4' from 'B+/RR3' following the announcement that Ford intends to raise US$18 billion in new financing. FORD MOTOR: Intends to Offer US$3B Senior Convertible Notes ----------------------------------------------------------- Ford Motor Co. intends to offer, subject to market and other conditions, approximately US$3 billion principal amount of Senior Convertible Notes due 2036, which will be unsecured. Ford also expects to grant the underwriters an over-allotment option to purchase up to US$450 million principal amount of additional notes. This offering of notes will be registered under the U.S. Securities Act of 1933, as amended. The joint-book running managers for this offering are: -- Citigroup Corporate and Investment Banking, -- Goldman, Sachs & Co., -- J.P. Morgan Securities Inc., -- Deutsche Bank Securities Inc., -- Lehman Brothers Inc., -- Merrill Lynch, -- Pierce, Fenner & Smith Inc. and -- Morgan Stanley & Co. Inc. The joint-lead manager for this offering is BNP Paribas Securities Corp. The interest rate, conversion price, offering price and other terms will be determined by negotiations between Ford and the underwriters of the notes. Ford expects to use the net proceeds from the offering for general corporate purposes. Offers and sales of the notes will be made only by the related prospectus and prospectus supplement. A copy of the prospectus and prospectus supplement can be obtained from: Citigroup Corporate and Investment Banking Brooklyn Army Terminal, 140 58th Street, 8th Floor Brooklyn, NY 11220 Tel: 718-765-6732 Fax: 718-765-6734 -- or -- Goldman, Sachs & Co. Attn: Prospectus Dept., 85 Broad St. New York, NY 10004 Fax: 212-902-9316 E-mail: prospectus-ny@ny.email.gs.com -- or -- J.P. Morgan Securities Inc. National Statements Processing 4 Chase Metrotech Center, CS Level Brooklyn, NY 11245 Tel: 718-242-8002 Fax: 718-242-1350 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 in Latin America. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company and The Hertz Corp. * * * As reported in the Troubled Company Reporter on Nov. 29, 2006, Standard & Poor's Ratings Services lowered its senior unsecured debt issue ratings on Ford Motor Co. to 'CCC+' from 'B' and removed the ratings from CreditWatch with negative implications, where they were placed on Oct. 23. At the same time, we affirmed the 'B' corporate credit rating and all other ratings on Ford, Ford Motor Credit Co., and related entities. Fitch Ratings has also downgraded Ford Motor Company's senior unsecured debt to 'B/RR4' from 'B+/RR3' following the announcement that Ford intends to raise US$18 billion in new financing. GENERAL MOTORS: Sells 5% Stake to Bank of America ------------------------------------------------- General Motors Corp. has sold a 5% stake to Bank of America Corp., Charlotte Business Journal reports. Charlotte Business relates that the stake, which once belonged to Kirk Kerkorian, was worth over US$800 million. As reported in the Troubled Company Reporter-Latin America on Dec. 4, 2006, Mr. Kerkorian's Tracinda Corp. sold 14 million shares of General Motors Corp.'s common stock in a private transaction for US$28.75 per share, bringing his stake down to 4.95%. Charlotte Business underscores that Mr. Kerkorian then sold the rest of his shares for US28.75 to US$29.25 per share. Mr. Kerkorian abandoned his shares in General Motors after failing to implement major strategic changes at the firm. Mr. Kerkorian and adviser Jerome York had pressured the company to take drastic action in response to its US$10.6-billion loss last year, Charlotte Business notes. Industry analysts told Charlotte Business that the move shows Mr. Kerkorian's lack of trust in the strategy of Rick Wagoner, the chief executive of General Motors. Bank of America is a key lender to Mr. Kerkorian, Charlotte Business states. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including Brazil and Mexico, and its vehicles are sold in 200 countries. * * * As reported in the Troubled Company Reporter on Nov. 16, 2006, Standard & Poor's Ratings Services assigned its 'B+' bank loan rating to General Motors Corp.'s proposed US$1.5 billion senior term loan facility, expiring 2013, with a recovery rating of '1'. The 'B+' rating was placed on Creditwatch with negative implications, consistent with the other issue ratings of General Motors, excluding recovery ratings. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 billion secured term loan of General Motors Corp. The term loan is expected to be secured by a first priority perfected security interest in all of the US machinery and equipment, and special tools of General Motors and Saturn Corp. GRUPO IUSACELL: Uses Franklin's Broadband Modem on Network ---------------------------------------------------------- Franklin Wireless Corp. launched its wireless CDU-550 mobile broadband USB modem on Grupo Iusacell SA de CV's CDMA 1xEV-DO network in Mexico. The Franklin Wireless CDU-550 USB modem is available through Iusacell distributors according to more than a US$1 million deal based on distributor price. The CDU-550 USB modem provides a flexible way for wireless subscribers to connect to the wireless broadband network since it is compatible with any laptop, tablet PC or desktop USB port and operates with Windows, Macintosh and Linux operating systems. As Mexico's only 1xEV-DO network operator, Iusacell has embarked on a strategic and differentiating approach that focuses on mobile data products and services, which places the company as a leading-edge technology operator. EV-DO technology enables individuals to send and receive email with large file attachments, play real-time interactive games, receive and send high-resolution pictures and video, download video and music content or stay wirelessly connected to their office PCs -- all from the same mobile device. "Franklin's CDU-550 gives Iusacell a unique advantage in the Mexican mobile market," said Jorge de la Mora, Data Solutions Director with Iusacell. "Not only do we offer the fastest and most robust wireless broadband data services through our EV-DO network, but customers now have a flexible way to take advantage of the network since Franklin's CDU-550 is compatible with multiple operating systems and doesn't require a PCMCIA card slot to connect to the Internet." "We are opening up the wireless broadband market by offering a multi-platform connectivity solution to end users. A PC card solution can't match these capabilities," said O.C. Kim, President of Franklin Wireless. Franklin Wireless products are marketed through Original Equipment Manufacturers and distributors, as well as directly to operators and end users. About Franklin Wireless Based in San Diego, California, Franklin Wireless Corp., develops and markets mobile broadband communications devices and applications, designs, develops, manufactures, and markets wireless products for the global subscribers. At present, the company markets its products to North America, Central America, South American and the Caribbean carriers and major distributors. About Grupo Iusacell Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV (BMV: CEL) -- http://www.iusacell.com-- is a wireless cellular and PCS service provider in Mexico with a national footprint. Independent of the negotiations towards the restructuring of its debt, Grupo Iusacell reinforces its commitment with customers, employees and suppliers and guarantees the highest quality standards in its daily operations offering more and better voice communication and data services through state-of-the-art technology, including its new 3G network, throughout all of the regions in which it operate. As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000 at Dec. 31, 2004. Grupo Iusacell filed for bankruptcy protection on June 18 under Mexican Law to prevent creditors from disrupting its debt restructuring talks. On July 14, 2006, Gramercy Emerging Markets Fund, Pallmall LLC and Kapali LLC, owed an aggregate amount of US$55,878,000 filed an Involuntary Chapter 11 Case against Grupo Iusacell's operating subsidiary, Grupo Iusacell Celular, SA de CV (Bankr. S.D.N.Y. Case No. 06-11599). Alan M. Field, Esq., at Manatt, Phelps & Phillips, LLP, represents the petitioners. Iusacell Celular then filed for bankruptcy protection under Mexican Law on July 18. GRUPO TMM: Prices Kansas City's Common Stock at US$26.25 a Share ---------------------------------------------------------------- Grupo TMM, S.A. has priced a public offering of 1,494,469 shares of Kansas City Southern's common stock at US$26.65 per share. All shares are being sold by Grupo TMM. The issuance and delivery of the shares is expected to occur on Dec. 7, 2006, subject to satisfaction of customary closing conditions. Kansas City Southern will not receive any proceeds from the offering. Morgan Stanley & Co. Incorporated will be the sole book-running manager for the offering. This offering is being made only by means of a prospectus. Copies of the prospectus and records relating to the offering may be obtained by contacting: Morgan Stanley & Co. Incorporated Prospectus Department 180 Varick Street, New York, NY 10014 E-mail: prospectus@morganstanley.com About Grupo TMM Headquartered in Mexico City, Grupo TMM S.A. (NYSE: TMM)(MEX VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin American multimodal transportation and logistics company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. * * * Standard & Poor's Ratings Services raised its corporate credit rating on Grupo TMM S.A. to 'B-' from 'CCC.' The rating was removed from Creditwatch, where it was placed on Dec. 15, 2004. S&P said the outlook is positive. About Kansas City Southern Kansas City Southern is a Delaware holding company with principal operations in rail transportation. The company owns and operates domestic and rail operations in North America that are strategically focused on the growing north/south freight corridor connecting key commercial and industrial markets in the central U.S. with major industrial cities in Mexico. The company's rail network extends from the Midwest and Southeastern portions of the U.S. south into Mexico and connects with all other Class I railroads providing shippers with an effective alternative to other railroad routes and giving direct access to Mexico and the southeastern and southwestern U.S. through less congested interchange hubs. The company also owns 50% of the stock of the Panama Canal Railway Company, which holds the concession to operate a 47-mile coast-to-coast railroad located adjacent to the Panama Canal. The railroad handles containers in freight service across the isthmus. Panarail Tourism Company, Panama Canal Railway's wholly owned subsidiary, operates commuter and tourist railway services over the lines of the Panama Canal Railway. * * * As reported in the Troubled Company Reporter on Sept. 6, 2006, Standard & Poor's Ratings Services affirmed its ratings, including the 'B' corporate credit rating on Kansas City Southern and removed the rating from CreditWatch. S&P said the outlook is negative. HUDSON PRODUCTS: S&P Assigns B Corporate Credit Rating ------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Hudson Products Holdings Inc. (Hudson), a leading maker of axial-flow fans and air-cooled heat exchangers. At the same time, Standard & Poor's assigned its 'B' senior secured rating and '2' recovery rating to the company's proposed US$125 million first-lien credit facility, which consists of a US$100 million term loan B and US$25 million revolving credit facility. The financing will be used to help fund the acquisition of Hudson by The Sterling Group L.P., as well as to provide liquidity. The outlook is stable. Pro forma the proposed financing, Hudson is expected to have approximately US$144 million of debt outstanding. "The ratings on Hudson reflect its high debt leverage, weak debt service coverage, and somewhat limited scope of operations," said Standard & Poor's credit analyst Paul Harvey. "Buffering these factors is a leading market share, stable operating margins in its fan business, some market diversity, and the ability to generate free cash flow through most points in the business cycle," Mr. Harvey continued. The stable outlook reflects expectations of limited near-term debt repayment and improving EBITDA levels as Hudson continues to expand its markets. Ratings would be lowered if Hudson pursues a more aggressive growth strategy than expected to the detriment of debt leverage and cash flow generation. Positive rating actions are possible over the longer term if Hudson is able to expand its business while improving debt leverage and financial performance. 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. KANSAS CITY: TMM Prices Stock Offering at US$26.65 Per Share ------------------------------------------------------------ Grupo TMM, S.A. has priced a public offering of 1,494,469 shares of Kansas City Southern's common stock at US$26.65 per share. Grupo TMM is selling all shares. The issuance and delivery of the shares is expected to occur on Dec. 7, 2006, subject to satisfaction of customary closing conditions. Kansas City Southern will not receive any proceeds from the offering. Morgan Stanley & Co. Incorporated will be the sole book-running manager for the offering. This offering is being made only by means of a prospectus. Copies of the prospectus and records relating to the offering may be obtained by contacting: Morgan Stanley & Co. Incorporated Prospectus Department 180 Varick Street, New York, NY 10014 E-mail: prospectus@morganstanley.com About Grupo TMM Headquartered in Mexico City, Grupo TMM S.A. (NYSE: TMM)(MEX VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin American multimodal transportation and logistics company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. * * * Standard & Poor's Ratings Services raised its corporate credit rating on Grupo TMM S.A. to 'B-' from 'CCC.' The rating was removed from Creditwatch, where it was placed on Dec. 15, 2004. S&P said the outlook is positive. About Kansas City Southern Kansas City Southern is a Delaware holding company with principal operations in rail transportation. The company owns and operates domestic and rail operations in North America that are strategically focused on the growing north/south freight corridor connecting key commercial and industrial markets in the central U.S. with major industrial cities in Mexico. The company's rail network extends from the Midwest and Southeastern portions of the U.S. south into Mexico and connects with all other Class I railroads providing shippers with an effective alternative to other railroad routes and giving direct access to Mexico and the southeastern and southwestern U.S. through less congested interchange hubs. The company also owns 50% of the stock of the Panama Canal Railway Company, which holds the concession to operate a 47-mile coast-to-coast railroad located adjacent to the Panama Canal. The railroad handles containers in freight service across the isthmus. Panarail Tourism Company, Panama Canal Railway's wholly owned subsidiary, operates commuter and tourist railway services over the lines of the Panama Canal Railway. * * * As reported in the Troubled Company Reporter on Sept. 6, 2006, Standard & Poor's Ratings Services affirmed its ratings, including the 'B' corporate credit rating on Kansas City Southern and removed the rating from CreditWatch. S&P said the outlook is negative. NORTEL NETWORKS: Selects KPMG LLP as Independent Auditor -------------------------------------------------------- Nortel Networks' Board of Directors has selected KPMG LLP as the company's independent auditor commencing with fiscal year 2007. This selection concludes a thorough evaluation, which the company conducted as part of its corporate renewal process. "Nortel is committed to building a great company founded on world-class corporate governance. As such, we conducted a rigorous selection process in search of an independent auditor with the optimal skills mix to match our current business requirements," said Peter Currie, executive vice president and chief financial officer, Nortel. "We found that KPMG has the expertise to help us cement a leading-edge corporate governance practice." The appointment of KPMG as independent auditor is subject to the approval of the company's shareholders at its next annual shareholder meeting. Deloitte & Touche LLP is the company's current independent auditor. The intended change in independent auditor does not result from any disagreement or dissatisfaction between Nortel and Deloitte. "Nortel has been pleased with the service of Deloitte & Touche and, in particular, with the close collaboration provided in recent years. Deloitte helped Nortel overcome significant challenges to ensure that our financial reporting is accurate and up-to-date. We thank them for their service and look forward to continued work with them in other capacities going forward," said Mr. Currie. KPMG was also selected as Nortel Networks Limited's independent auditor commencing with fiscal 2007. 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. NORTEL NETWORKS: Sells UMTS Access Business to Alcatel-Lucent ------------------------------------------------------------- Nortel Networks has reached a definitive agreement for the sale of certain assets and the transfer of certain liabilities related to the company's UMTS access business to Alcatel-Lucent. It follows the signing of the non-binding Memorandum of Understanding between the two companies disclosed on Sept. 1, 2006. The transaction is a US$320 million cash transaction, less significant deductions and transaction related costs. The parties have agreed to target a closing at year-end, and in any event, a closing within 90 days of the announcement on Dec. 4, 2006. Approximately 1,700 of Nortel's UMTS access business employees will transfer to Alcatel-Lucent. "The completion of this transaction will allow Nortel to increase resources dedicated to our strategic business priorities. It also positions Alcatel-Lucent to be successful in the UMTS access market with an infusion of great technology and great people," said Mike Zafirovski, president and chief executive officer, Nortel. "This transaction is a win-win for both companies, but more importantly, for our customers. We will continue to work with Alcatel-Lucent to ensure the transition is seamless to our customers." "Nortel is committed to developing the wireless technologies that will deliver 4G Mobile Broadband and this provides one more step in reaching that objective," said Richard Lowe, president, Mobility and Converged Core Networks, Nortel. "Nortel is focused on providing the foundation for the coming mobile video and multimedia revolution that mobile network operators will soon face. At the same time, we will continue delivering superior value to our GSM and CDMA customers, as well as our customers that have deployed our UMTS core networks". Completion of the transaction is subject to, among other things, the conclusion of consultations with works councils and other employee representatives, finalization of the terms of certain ancillary agreements including a transitional services agreement whereby Nortel will provide to Alcatel-Lucent setup, infrastructure and application services for a defined period of time as well as customary closing conditions including regulatory approvals. 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. About Nortel 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. ODYSSEY RE: Fairfax Prices Stock Offering at US$34.60 Per Share --------------------------------------------------------------- Odyssey Re Holdings Corp. disclosed the pricing of an underwritten public offering by Fairfax Financial Holdings Limited to sell 9,000,000 ORH common shares, at a price of US$34.60 per share, resulting in net proceeds to Fairfax of approximately US$300 million. Fairfax has granted the underwriters an option to purchase up to 1,350,000 additional shares of common stock to cover over-allotments, if any. The offering was jointly led by Citigroup Corporate and Investment Banking and Wachovia Capital Markets, LLC. Fairfax, which will continue to own a majority of the shares of OdysseyRe after the offering, intends to use the proceeds it receives from the offering for general corporate purposes, which may include opportunistically effecting open market or privately negotiated repurchases of its outstanding debt or shares. OdysseyRe will not receive any proceeds from the sale of the shares. A written prospectus relating to the offering, when available, may be obtained from: Citigroup Corporate and Investment Banking Brooklyn Army Terminal 140 58th Street, 8th Floor Brooklyn, NY 11220 Tel: 718-765-6732 -- or -- Wachovia Capital Markets, LLC Attn: Equity Syndicate 375 Park Avenue, 4th Floor New York, NY 10152 E-mail: equity.syndicate@wachovia.com Odyssey Re Holdings Corp. is an underwriter of property and casualty treaty and facultative reinsurance, as well as specialty insurance. Odyssey Re operates through its subsidiaries, Odyssey America Reinsurance Corp., Hudson Insurance Co., Hudson Specialty Insurance Co. Clearwater Insurance Co., Newline Underwriting Management Limited and Newline Insurance Co. Ltd. The Company underwrites through offices in the United States, London, Paris, Singapore, Toronto and Mexico City. Odyssey Re Holdings Corp. is listed on the New York Stock Exchange under the symbol ORH. * * * Odyssey Re Holdings Corp.'s preferred stock rating carries Ba2 from Moody's and BB from Fitch. The Company's senior unsecured debt and long-term issuer default ratings also carry BB+ from Fitch. Moody's placed its rating on Oct. 12, 2005 with a stable outlook. Fitch placed its ratings on March 23, 2006. TV AZTECA: Conflict with Telemundo Intensifies ---------------------------------------------- TV Azteca's dispute with NBC's Telemundo has intensified, as NBC Universal objected the license renewal of KAZA-TV, a Los Angeles-based TV Azteca affiliate, Miami Herald reports. As reported in the Troubled Company Reporter-Latin America on Oct. 10, 2006, the production of Telmundo show Quinceanera was stopped abruptly when a delegation from TV Azteca -- along with police officers, reporters, cameramen, lawyers and security guards -- came into their studio, accompanying a court clerk carrying a judge's order to temporarily stop work and impound the equipment. TV Azteca had sued Nostromo Producciones and Alan Tacher Feingold -- the host of Quinceanera -- in August for breach of contract, saying that the two violated the February 2005 accords to work exclusively for TV Azteca unless they obtain permission. TV Azteca alleged that Nostromo was producing La Academia -- TV Azteca's hit talent reality show -- in 2005 when it abandoned the production on Nov. 30. Rival Telemundo said that it was not aware of the lawsuit. Telemundo, however, admitted that it knew of an earlier similar suit TV Azteca had tried to file in Miami. Telemundo then filed a counterclaim, seeking unspecified damages for wrongful use of force. Miami Herald relates that NBC Universal described the officials of TV Azteca as crooked. According to Miami Herald, NBC Universal said in legal papers it filed with the Federal Communications Commission on Nov. 30 that the renewal application for KAZA-TV should not be granted, as TV Azteca principals lack the character qualifications needed to hold interests in US broadcast licenses. Miami Herald underscores that NBC Universal cited a 2005 lawsuit by the Securities and Exchange Commission against Ricardo Salinas Pliego, the chairperson of TV Azteca, as an evidence of the character of the former's executives. The suit charged Mr. Salinas and a partner with nondisclosure to shareholders of a US$218-million transaction involving debt-repurchase with TV Azteca's cellular phone firm. Mr. Salinas settled the suit in September and has delisted TV Azteca from the US stock exchange. TV Azteca is not the owner of KAZA-TV, NBC Universal told Miami Herald. However, TV Azteca provides KAZA-TV programming under Azteca America, the former's US Hispanic network. TV Azteca also lent US$129 million to Pappas Telecasting Companies -- KAZA-TV's owner -- to acquire it, giving TV Azteca a substantial interest in the station, Miami Herald says, citing NBC Universal. Luis Echarte, the chairperson of Azteca America, told Miami Herald that the company was not worried by NBC Universal's move. He said, "It has no legal merit. We feel this is a ploy to damage our image, given the strong performance of our network." NBC Universal is obviously using the Federal Communications Commission as retaliation against TV Azteca, Miami Herald says, citing Mr. Echarte. About NBC Universal NBC Universal Inc.'s plumage spreads across television, film, and the Internet. NBC Universal is a heavyweight in the media industry anchored by its flagship broadcast network NBC. It also operates cable channels like Bravo, USA Network, and 24-hour news channel MSNBC, as well as Spanish-language network Telemundo. In Hollywood, NBC Universal owns Universal Studios, which makes feature films and operates theme parks through Universal Parks & Resorts. The company's Internet presence includes iVillage, a Web destination aimed at women. NBC Universal was formed in 2004 through the combination of assets owned by NBC and Universal. General Electric owns 80% of the conglomerate; French utility operator Vivendi owns the rest. About Azteca America Azteca America is the newest Spanish-language television network in the United States. The network is a wholly owned subsidiary of TV Azteca SA de CV, one of the two largest producers of Spanish-language television content in the world. Azteca America currently has presence in 52 Hispanic markets. About TV Azteca TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating two national television networks in Mexico -- Azteca 13 and Azteca 7 -- through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market, and Todito, an Internet portal for North American Spanish speakers. * * * Moody's Investor Services rated TV Azteca's senior unsecured debt at B1. ======= P E R U ======= CENTRAL PARKING: Retains Blackstone Group as Financial Advisor -------------------------------------------------------------- Central Parking Corp. has retained The Blackstone Group L.P. as its financial advisor to assist the company in exploring strategic alternatives to enhance stockholder value. In making the announcement, Emanuel J. Eads, President and Chief Executive Officer of Central Parking, stated that, "The company has engaged The Blackstone Group L.P. to assist management and the Board in evaluating the assets and operations of the Company in order to develop possible alternative strategies to achieve greater stockholder value. These alternatives may include a complete or partial sale of the Company, a merger or a decision to take no action at this time. Although the Company has met with certain interested parties, at this time no agreements or understandings have been reached with any party as to the terms of a possible transaction. There is no certainty that any such transaction will actually occur in either the short or long term and the Company is continuing to implement its previously announced strategic plan. Central Parking does not intend to issue any other press release or make any other comments relating to the subject matter referenced above until such time, if ever, as it enters into a definitive agreement with a third party or parties in connection with any such transaction or series of transactions or determines to terminate this strategic process." Headquartered in Nashville, Tennessee, Central Parking Corp. (NYSE: CPC) provides parking and transportation-related services. As of Sept. 30, 2006, the Company operated approximately 3,100 parking facilities containing approximately 1.5 million spaces at locations in 37 states, the District of Columbia, Canada, Puerto Rico, the United Kingdom, the Republic of Ireland, Chile, Colombia, Peru, Spain, Switzerland, and Greece. CENTRAL PARKING: Blackstone Engagement Cues S&P's Negative Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Nashville, Tennessee-based Central Parking Corp., including the 'B+' corporate credit rating, on CreditWatch with negative implications. The company had about US$209.4 million of total debt at June 30, 2006. The CreditWatch listing comes after Central Parking's recent report that it has engaged The Blackstone Group L.P. to assist management and the board of directors in pursuing various strategic alternatives, including a partial or complete sale of the company, or a possible merger. The company does not plan to release any additional information about the status of this review until a definitive agreement is entered into or the strategic review process is completed. "Although the ultimate outcome of this process is uncertain, these strategic alternatives could potentially weaken credit protection measures to levels below those appropriate for the current rating," noted Standard & Poor's credit analyst Mark Salierno. "In the event that a sale to a financially stronger company is announced, we would consider revising the CreditWatch listing. We will monitor developments associated with a potential sale of the company in order to assess the rating implications." ===================== P U E R T O R I C O ===================== PILGRIM'S PRIDE: Acquiring Gold Kist Stock for US$21 Per Share -------------------------------------------------------------- Pilgrim's Pride Corp. and Gold Kist Inc. have entered into a definitive merger agreement under which Pilgrim's Pride will acquire all of the outstanding shares of Gold Kist common stock for US$21.00 per share in cash. The transaction, which was unanimously approved by the boards of directors of both Pilgrim's Pride and Gold Kist, has a total equity value of approximately US$1.1 billion, plus the assumption of approximately US$144 million of Gold Kist's debt. Together, Pilgrim's Pride and Gold Kist will create the world's leading chicken company in terms of production and the third-largest U.S. meat protein company by revenues. The combined company will have a broad geographic reach and customer base, while maintaining a balanced portfolio of fresh chicken and value-added products. In particular, the enhanced geographic diversification will enable the new Pilgrim's Pride to compete more efficiently both in the U.S. and internationally. "This is a momentous day for both companies and for the chicken industry," said Lonnie "Bo" Pilgrim, chairman of Pilgrim's Pride. "We believe the combination of these two great companies will result in substantial value creation for our respective stockholders, employees, business partners and other constituencies." Added O.B. Goolsby, Jr., Pilgrim's Pride president and chief executive Officer, "We are excited about the opportunity to begin realizing the substantial benefits that will result from the combination between Pilgrim's Pride and Gold Kist. The combined company will be well positioned to provide even better service to its customers. We look forward to welcoming Gold Kist's employees and contract growers to the Pilgrim's Pride family so they can participate in the long-term growth opportunities of the combined company." Pilgrim's Pride expects to achieve approximately US$50 million of annualized synergies, primarily from the optimization of production and distribution facilities and cost savings in purchasing, production, logistics and SG&A. Pilgrim's Pride expects the acquisition will be accretive to the company's diluted earnings per share after the first full year of operations. Pilgrim's Pride believes that the combined company will have a strong financial position and substantial cash flow, enabling it to consistently reduce debt and return to historical debt levels. "After careful consideration, the special committee of independent directors, as well as our entire board, determined that the Pilgrim's Pride enhanced offer is in the best interests of our shareholders, employees, growers and customers," said A.D. Frazier, chairman of Gold Kist. "Since becoming a public company more than two years ago, Gold Kist has made significant progress in achieving its business goals. We look forward to working with the Pilgrim's Pride board and management on a smooth integration, and we recommend that all stockholders embrace this transaction by tendering their shares into the premium offer." "This transaction will position the combined company for long-term growth and leadership in our industry," said John Bekkers, president and chief executive officer of Gold Kist. "The collective talents and expertise of our employees and growers, along with our combined customer relationships, will represent a new standard in the chicken business and make Pilgrim's Pride the preeminent industry player." The Pilgrim's Pride offer represents an approximately 62% premium over Gold Kist's closing stock price on August 18, 2006, the last day of trading before Pilgrim's Pride notified Gold Kist's board of directors in a public letter that it was offering to purchase the company. Under the terms of the merger agreement, Pilgrim's Pride will amend its tender offer to increase its offer price to US$21.00 per share and Gold Kist will amend its Schedule 14D-9 to include the Gold Kist board's recommendation that Gold Kist stockholders tender their shares to Pilgrim's Pride pursuant to the amended tender offer. A revised offer to purchase will be distributed to Gold Kist stockholders and the scheduled expiration date for the amended tender offer is 5:00 p.m., New York City Time, Dec. 27, 2006, unless extended. The offer and related transactions contemplated by the merger agreement are subject to the satisfaction of customary closing conditions. The transaction has received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Baker & McKenzie LLP and Morris, Nichols, Arsht & Tunnell, LLP are acting as legal counsel and Credit Suisse, Legacy Partners Group LLC and Lehman Brothers Inc. are acting as financial advisors to Pilgrim's Pride. Innisfree M&A Incorporated is acting as information agent for Pilgrim's Pride's offer. Lehman Brothers Inc. and Credit Suisse have provided financing commitments. Merrill Lynch & Co. and Gleacher Partners LLC are serving as financial advisors to Gold Kist. Alston & Bird LLP and Richards, Layton & Finger P.A. are serving as outside legal counsel to Gold Kist. MacKenzie Partners is acting as information agent for Gold Kist. Gold Kist stockholders may obtain copies of documents relating to the tender offer that are filed with the SEC for free at the SEC's website at: http://www.sec.govor by contacting: Innisfree M&A Incorporated Information Agent Tel: 877-687-1874 (toll free from the U.S. and Canada) 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 US$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. PILGRIM'S PRIDE: S&P Holds Watch on Ratings on Gold Kist Merger --------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB' corporate credit rating and other ratings on the second-largest U.S. poultry processor, Pilgrim's Pride Corp., remain on CreditWatch with negative implications, where they were originally placed Aug. 21, 2006. The CreditWatch update follows the announcement that Pilgrim's Pride and Gold Kist Inc. had entered into a definitive merger agreement under which Pilgrim's Pride will acquire all of Gold Kist's common stock outstanding for US$21.00 per share in cash. The transaction was unanimously approved by the boards of directors of both companies and has a total equity value of US$1.1 billion, plus the assumption of about US$144 million of Gold Kist's debt. About US$571 million (including capitalized operating leases) of debt of Pittsburg, Texas-based Pilgrim's Pride and about US$190 million (including capitalized operating leases) of Atlanta, Ga.-based Gold Kist's debt is affected. The ratings of both companies were originally placed on CreditWatch following the unsolicited bid by Pilgrim's Pride to acquire Gold Kist for US$20.00 per share in cash. This valued the transaction at about US$1 billion, plus the assumption of Gold Kist's debt. At that time, Pilgrim's Pride anticipated that it could realize cost synergies of US$50 million. At the same time, ratings on Gold Kist, including the 'B+' corporate credit rating, were placed on CreditWatch with positive implications. On Sept. 28, 2006, Pilgrim's Pride commenced a cash tender offer to purchase all of Gold Kist's outstanding shares of common stock for US$20 per share and all of its 10.25% senior notes due March 15, 2014 (this includes a consent payment of US$30 per US$1,000 of principal). The tender was begun because there has been no progress made in negotiating a transaction with Gold Kist since Pilgrim's Pride public announcement on Aug. 18, 2006. On Oct. 28, 2006, Pilgrim's Pride had received tenders and related consents with respect to approximately 99.9% of the principal amount of the outstanding Gold Kist notes. On Nov. 30, 2006, Pilgrim's Pride announced that 67% of the shares of common stock in Gold Kist had been tendered despite management's opposition to the US$1 billion takeover bid. "We will meet with Pilgrim's Pride management in the near term to discuss the company's operating plans, financial policies and strategies, and the transaction's financing," noted Standard & Poor's credit analyst Jayne Ross. "The ratings on Pilgrim's Pride could be lowered (depending on how the transaction is financed) or affirmed, and the ratings on Gold Kist could be raised or affirmed (depending on how the transaction is financed)." 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. ================================= T R I N I D A D & T O B A G O ================================= BRITISH WEST: Says UK Incorporation Necessary --------------------------------------------- British West Indies Airlines aka BWIA said in a statement that the Oct. 4 incorporation of Caribbean Airlines (UK) Ltd. in the United Kingdom was necessary since it is a legal requirement that external firms doing business in the UK must register as an external firm. BWIA explained in a statement, "Caribbean Airlines will continue to operate the London route until the end of March 2007 and then it will offer flights to its passengers to London through a code share agreement with British Airways. This was necessary to begin the registration process, but because the corporate status of Caribbean Airlines in Trinidad was in its initial stages, the UK requirements for registration as an external company could not be met." The press release states that to protect the name for registration, Caribbean Airlines was registered as a shell company of convenience and regularization of the firm's states is being handled by its legal representatives in UK. The Trinidad and Tobago Express relates that the registered office of Caribbean Airlines (UK) is listed in the care of the London offices of law firm MFG Services Ltd. Curtis John, the head of the Aviation Communication and Allied Workers' Union, told The Express that he heard some talk about Caribbean Airlines (UK) Ltd. last week, but he had no details. A source told The Express that BWIA was registered in the UK. 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. ============= U R U G U A Y ============= * URUGUAY: Pays Off US$1.09 Bln International Monetary Fund Debt ---------------------------------------------------------------- The Uruguayan central bank told the Associated Press that the government of Uruguay has paid off its US$1.09-billion debt to the International Monetary Fund aka IMF. AP relates that Uruguayan government made an early payment of US$900 million to the IMF earlier this year, saving the nation millions of dollars in interest. The Central Bank told AP that its foreign reserves are at US$2.82 billion after the payments. The full debt payment to the IMF does not mean Uruguay will cut relations with the former. The IMF helped rescue the nation from a crippling financial crisis in 2002, AP states, citing Danilo Astori, the Uruguayan economy minister. * * * On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of 5% inflation-indexed bonds payable in U.S. dollars and maturing Sept. 14, 2018, at 'B+'. ================= V E N E Z U E L A ================= BANCO DEL CARIBE: Fitch Affirms Low B Ratings --------------------------------------------- Fitch Ratings affirms Banco del Caribe's aka Bancaribe ratings as: -- Long-term Issuer Default Rating (IDR) 'B+'; -- Short-term issuer rating 'B'; -- Long-term local currency rating 'B+'; -- Short-term local currency rating 'B'; -- Individual rating 'D'; -- Support '5'; -- National Long-term rating 'A+(ven)'; and -- National Short-term rating 'F1(ven)'. The Rating Outlook is Negative. Bancaribe's ratings reflect its strong competitive position in the middle market, improved asset quality and adequate income diversification. Also the ratings reflect the decrease in its capitalization ratios, similar to many of its competitors, due the rapid increase in assets and lower expected profitability and higher government intervention. The risk profile of Venezuelan banks remains under pressure in the short term, coping with increasing assets and a lower profitability level that could further erode capitalization ratios, in addition to continued uncertainties regarding government intervention. The Negative Outlook continues to reflect concerns that government interference will continue and potentially increase, which will further reduce banks' financial flexibility. Similar to market trends, Bancaribe has been able to increase its asset size and loan portfolio in the last three years, with gross loans almost tripled since end 2003, while the improvements in its risk control techniques and the economic rebound have resulted in a systematic improvement in Bancaribe's asset quality ratios. At end June-2006 the past due loans to gross loan ratio came down to 0.2%, while loan loss reserves covered in more than 11 times the past due portfolio; however, the loan loss reserves to total loans ratio of 1.8% is considered tight given the unseasoned nature of the loan portfolio, existing and potential directed lending guidelines, the potential volatility of the environment, and the rapidly declining capital cushion. Despite the significant increase in business volume, lower interest rates, some restrictions in terms of fees and commissions and the fierce competition among local banks, have reduced Bancaribe's profitability ratios, even when the good performance of some of its subsidiaries have been able to absorb lower spreads. At end-June 2006 the bank ROAA and ROAE went down to 3% and 29%, still above many of its peers but more modest asset growth and continued pressure on bank spreads could further affect Bancaribe's returns. Despite the significant increase in the loan portfolio, the banks still holds a significant concentration in government securities. Bancaribe's capital ratios have declined as a result of asset growth, with equity to assets of 10.4% and total capital to risk weighted assets of 12.2% at end-June 2006. The bank shows some concentration in fixed assets (20% at end-June 2006), while significant investments in subsidiaries reduce the bank free capital ratio. Despite this trend, the USD30 million irrevocable capital commitment from Canada's Bank of Nova Scotia, which owns 26.6% of Bancaribe, provides some comfort. Bancaribe is a medium sized bank with a 3.2% market share in terms of invested funds at June-2006. Despite being a mid-sized bank, Bancaribe has a strong position in middle-market, retail and agricultural lending. At end-2005, 51.1% of Bancaribe was controlled by the Dao family, 26.6% by Scotia International Ltd., a wholly owned subsidiary of Bank of Nova Scotia, with the remainder publicly held. *********** 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 * * *