/raid1/www/Hosts/bankrupt/TCRLA_Public/070108.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, January 8, 2007, Vol. 8, Issue 5
Headlines
A R G E N T I N A
ARMANCAD SA: Verification of Proofs of Claim Is Until April 19
EE EMPRENDIMIENTOS: Last Day for Claims Verification Is April 3
GREEN TEAM: Claims Verification Deadline Is Set for Feb. 9
INTERNATIONAL COURIER: Claims Verification Deadline Is March 1
PERIODISMO UNIVERSITARIO: Claims Verification Is Until March 16
PLAZA SERRANO: Trustee Verifies Proofs of Claim Until Feb. 1
POLYMER GROUP: Consolidating US Manufacturing to Lower Costs
PROALBA SRL: Names Carlos Moreno as Trustee for Bankrupcty Case
PROCESADORA ROSARIO: Reorganization Proceeding Concluded
QUERONEA SA: Asks for Court Approval to Reorganize Business
RECRUITERS & TRAINERS: Claims Verification Is Until March 23
RED TOTAL: Deadline for Claims Verification Is Set for Feb. 23
SANATORIO REGIONAL: Reorganization Proceeding Concluded
SUPERMERCADOS TOLEDO: Reorganization Proceeds to Bankruptcy
UNILUB SA: Last Day for Verification of Claims Is on March 19
UNIVERSAL REAL: Verification of Proofs of Claim Is Until April 5
B A H A M A S
TEEKAY SHIPPING: Declares US$0.2375 Per Share Cash Dividend
B E R M U D A
GLOBAL CROSSING: Providing IP Transit Service to SyncCast
GREENBULL LTD: Proofs of Claim Filing Deadline Is on Jan. 9
GREENBULL LTD: Holding Final General Meeting on Jan. 25
GREENCOW LTD: Last Day for Proofs of Claim Filing Is on Jan. 9
GREENCOW LTD: Liquidator to Present Wind Up Accounts on Jan. 25
GREENDUCK LTD: Creditors Must File Proofs of Claim by Jan. 9
GREENDUCK LTD: Shareholders to Gather for Jan. 25 Final Meeting
REYNOLDS INTERNATIONAL: Proofs of Claim Must be Filed by Jan. 16
REYNOLDS INTERNATIONAL: Final General Meeting Is Set for Jan. 31
B O L I V I A
YPF SA: Parent Firm Asks Auditor to Review Bolivian Assets
YPF SA: Parent Firm Inks Accord to Supply Argentina with Petcoke
* BOLIVIA: Franklin Mining Prepares for Pulacayo Processing
B R A Z I L
ALCATEL-LUCENT: Appoints Gerard Le Bihan to Head Lannion Site
COMPANHIA FORCA: Board Okays Distribution Units' Restructuring
COSAN INDUSTRIA: Moody’s Assigns Ba2 Rating on US$300MM Notes
DURA AUTOMOTIVE: Taps Miller Buckfire as Investment Banker
DURA AUTOMOTIVE: Utility Cos. Object to Adequate Assurance Order
GERDAU SA: Can't Participate in Acerias's 51.89% Stake Auction
GP INVESTMENTS: Inks Pact with Investors to Create BR Properties
GP INVESTMENTS: S&P Rates US$150 Million Perpetual Notes at B+
JBS SA: Moody’s Holds B1 Senior Unsecured Rating
NOVELIS INC: Exchange Offer on 7-1/4% Sr. Notes Expired Jan. 4
PETROLEO BRASILEIRO: JP Morgan Starts Ops as Depository Bank
PETROLEO BRASILEIRO: Unit Commences Debt Exchange Offer on Notes
UNIAO DE BANCOS: Paying Interest on Capital Stock
C A Y M A N I S L A N D S
ADASTRA DIVERSIFIED: Final Shareholders Meeting Is on Jan. 11
ADASTRA (MASTER): Final General Meeting Is Set for Jan. 11
APPLE BLOSSOM: Shareholders to Convene for Jan. 11 Final Meeting
ARANCUS LTD: Final Shareholders Meeting Is Set for Jan. 11
ASPEN CREEK: Liquidator to Present Wind Up Accounts on Jan. 11
CITICO INVESTMENT: Final Shareholders Meeting Is Set for Jan. 11
CO-INVESTMENT: Deadline for Proofs of Claim Filing Is on Jan. 11
CRABTREE LTD: Invites Shareholders for Final Meeting on Jan. 11
DALTON VIEW: Shareholders to Gather for Jan. 11 Final Meeting
FAIRFIELD DOVER: Last Day for Proofs of Claim Filing Is Jan. 11
GOLDEN KEY: Invites Sharerholders for Jan. 11 Final Meeting
GOLDRIVER INVESTMENTS: Final General Meeting Is on Jan. 11
GRAND DYNAMICS: Calls Shareholders for Final Meeting on Jan. 11
LQ GOLFERS: Final Shareholders Meeting Is Set for Jan. 11
MEMBERSHIP SERIES: Sets Final Shareholders Meeting on Jan. 11
MITSUBA LTD: Liquidator to Present Wind Up Accounts on Jan. 11
REFLET LTD: Shareholders to Convene for Final Meeting on Jan. 11
REMBRANDT ASSET: Final Shareholders Meeting Is Set for Jan. 11
REMBRANDT RFC: Shareholders to Gather for Jan. 11 Final Meeting
SAILWIND INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 11
SAILWIND INVESTMENTS: Last Shareholders Meeting Is on Jan. 11
SEYMOUR HOLDINGS: Proofs of Claim Filing Is Until Jan. 11
SEYMOUR HOLDINGS: Last Shareholders Meeting Is Set for Jan. 11
SIRIUS ALPHA: Deadline for Proofs of Claim Filing Is Jan. 11
STRATEGIC INFLATION: Proofs of Claim Must be Filed by Jan. 11
SUNDANCE INVESTMENT: Last Day for Claims Filing Is on Jan. 11
TRIANGLE INVESTMENT: Filing of Proofs of Claim Is Until Jan. 11
C H I L E
AES CORP: Joins Electric Drive Transportation Association Board
CONSTELLATION BRANDS: Posts US$1.5B Sales for Qtr. Ended Nov. 30
GOODYEAR TIRE: Fitch Affirms B Issuer Default Rating
C O L O M B I A
BANCOLOMBIA: Will Decide by Feb. on How to Pay Banagricola
ECOPETROL: Secures 5.78% Stake in State Telecom Company
C O S T A R I C A
DENNY'S CORP: Reports December Same-Store Sales
D O M I N I C A N R E P U B L I C
ANIXTER INT'L: May Repurchase Up to 1 Million Common Shares
G U A T E M A L A
GOODYEAR TIRE: To Discontinue Tire Production at Quebec Facility
M E X I C O
ALASKA AIR: Reports December Passenger Traffic
DANA CORP: Seeks Court Approval to Amend DIP Credit Agreement
DELTA AIR: Reports Record December 2006 Load Factor
FOAMEX INTERNATIONAL: Commences Equity Rights Offering
GEOKINETICS: Launches System for Pre-Stack Depth Migration
GRUPO MEXICO: Says Pasta de Conchos Mine Will Remain Closed
GUESS? INC: Retail Sales Up 14.5% to US$118.4 Mil. in December
HASBRO: Debenture Holders May Convert Share Into Common Stock
HERBALIFE: Expects to Report Higher Sales for Qtr. Ended Dec. 31
SWIFT & CO: Reports US$2.47B Net Sales in Quarter Ended Nov. 26
TANK SPORTS: Inks Definitive Pact to Buy Redcat Motors
US AIRWAYS: Reports December 2006 Traffic Results
P A N A M A
BANCO CONTINENTAL: Merging with Banco General
BANCO GENERAL: Absorbing Banco Continental's Operations
CLIENTLOGIC CORP: Moody's Raises Corporate Family Rating to B2
UNIVERSAL COMM: Unit Files Lawsuit Against Other Water Companies
P E R U
DOE RUN: Extends 11.75% Sr. Notes Purchase Offer Until Jan. 19
HERTZ CORP: Extends Exchange Offers on Senior Notes Until Jan. 8
P U E R T O R I C O
ADELPHIA COMMS: Court Confirms First Modified Fifth Amended Plan
CENTENNIAL COMM: Nov. 30 Balance Sheet Upside Down by US$1.095B
CHATTEM INC: Closes US$410 Million Purchase of Five J&J Brands
CHATTEM INC: Gets US$300 Mil. Term Loan from Amended Credit Pact
DORAL FINANCIAL: Posts US$28.7MM Net Loss in Qtr. Ended Sept. 30
DORAL FINANCIAL: Moody’s Pares Senior Debt Ratings to B2 from B1
G+G RETAIL: Discloses Composition of Oversight Committee
GLOBAL HOME: Can Assume & Assign Three Contracts to SEB & Groupe
GLOBAL HOME: Wants Exclusive Plan Filing Period Until April 5
T R I N I D A D & T O B A G O
BRITISH WEST: Shareholders Will Know Fate of Investments Soon
DIGICEL LTD: Says Cellular Structure in San Juan Is Legal
PRG GROUP: Appoints Lou Lombardi to Board of Directors
U R U G U A Y
AMERICAN AIRLINES: Reports 79.1% Load Factor in December
V E N E Z U E L A
DAIMLERCHRYSLER: Reaches Pact with Insurers to Settle Dispute
DAIMLERCHRYSLER: U.S. Dec. Sales Decrease 1%, 2006 Sales Down 5%
DAIMLERCHRYSLER: Inks Deal with Chinese Automaker
* SEC's Proposed Rule on Management's Financial Internal Control
* BOOK REVIEW: Learning Leadership
- - - - -
=================
A R G E N T I N A
=================
ARMANCAD SA: Verification of Proofs of Claim Is Until April 19
--------------------------------------------------------------
Hector Julio Grisolia, the court-appointed trustee for Armancad SA's
bankruptcy proceeding, will verify creditors' proofs of claim until April
19, 2007.
Under the Argentine bankruptcy law, Mr. Grisolia is required to present
the validated claims in court as individual reports. A Court in Buenos
Aires will determine if the verified claims are admissible, taking into
account the trustee's opinion and the objections and challenges raised by
Armancad SA and its creditors.
Inadmissible claims may be subject for appeal in a separate proceeding
known as an appeal for reversal.
Mr. Grisolia will also submit a general report that contains an audit of
Armancad SA's accounting and banking records. The report submission dates
have not been disclosed.
The trustee can be reached at:
Hector Julio Grisolia
J. Salguero 2533
Buenos Aires, Argentina
EE EMPRENDIMIENTOS: Last Day for Claims Verification Is April 3
---------------------------------------------------------------
Otto Reinaldo Munch, the court-appointed trustee for EE Emprendimientos de
Excelencia SA' bankruptcy proceeding, will verify creditors' proofs of
claim until April 3, 2007.
Under the Argentine bankruptcy law, Mr. Munch is required to present the
validated claims in court as individual reports. A Court in Buenos Aires
will determine if the verified claims are admissible, taking into account
the trustee's opinion and the objections and challenges raised by EE
Emprendimientos and its creditors.
Inadmissible claims may be subject for appeal in a separate proceeding
known as an appeal for reversal.
Mr. Munch will also submit a general report that contains an audit of EE
Empredimientos' accounting and banking records. The report submission
dates have not been disclosed.
The trustee can be reached at:
Ernesto Garcia
Maipu 509
Buenos Aires, Argentina
GREEN TEAM: Claims Verification Deadline Is Set for Feb. 9
----------------------------------------------------------
Rut Noemi Alfici, the court-appointed trustee for Green Team SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 9,
2007.
Rut Noemi Alfici will present the validated claims in court as individual
reports on March 23, 2007. A court in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Green Team 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 Green Team's accounting and
banking records will follow on May 7, 2007.
Rut Noemi Alfici is also in charge of administering Green Team's assets
under court supervision and will take part in their disposal to the extent
established by law.
The trustee can be reached at:
Rut Noemi Alfici
Rodriguez Pena 565
Buenos Aires, Argentina
INTERNATIONAL COURIER: Claims Verification Deadline Is March 1
--------------------------------------------------------------
Miguel Angel Loustau, the court-appointed trustee for The International
Courier SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until March 1, 2007.
Miguel Angel Loustau will present the validated claims in court as
individual reports on May 2, 2007. A court in Buenos Aires will
determine if the verified claims are admissible, taking into account the
trustee's opinion and the objections and challenges raised by The
International Courier 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 The International's accounting
and banking records will follow on June 13, 2007.
Miguel Angel Loustau is also in charge of administering The
International's assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Miguel Angel Loustau
Viamonte 993
Buenos Aires, Argentina
PERIODISMO UNIVERSITARIO: Claims Verification Is Until March 16
---------------------------------------------------------------
Hector Ricardo Calle, the court-appointed trustee for Periodismo
Universitario SRL's bankruptcy proceeding, verifies creditors' proofs of
claim until March 16, 2007.
Mr. Hector Ricardo Calle will present the validated claims in court as
individual reports on May 3, 2007. A court in Buenos Aires will
determine if the verified claims are admissible, taking into account the
trustee's opinion and the objections and challenges raised by Periodismo
Universario 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 Periodismo Universitario's
accounting and banking records will follow on June 15, 2007.
Mr. Calle is also in charge of administering Periodismo Universitario's
assets under court supervision and will take part in their disposal to the
extent established by law.
The debtor can be reached at:
Periodismo Universitario SA
Diagonal Roque Saenz Pena 615
Buenos Aires, Argentina
The trustee can be reached at:
Ernesto Oscar Callelo
Lavalle 1528
Buenos Aires, Argentina
PLAZA SERRANO: Trustee Verifies Proofs of Claim Until Feb. 1
------------------------------------------------------------
Ana Maria Varela, the court-appointed trustee for Plaza Serrano SA's
bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 1,
2007.
Ms. Valera will present the validated claims in court as individual
reports on March 15, 2007. A court in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Plaza Serrano 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 Plaza Serrano's accounting and
banking records will follow on May 2, 2007.
Ms. Valera is also in charge of administering Plaza Serrano's assets under
court supervision and will take part in their disposal to the extent
established by law.
The trustee can be reached at:
Ana Maria Valera
Talcahuano 768
Buenos Aires, Argentina
POLYMER GROUP: Consolidating US Manufacturing to Lower Costs
------------------------------------------------------------
Polymer Group, Inc., will consolidate manufacturing in the U.S. to lower
its operating costs and improve overall performance.
The company will close its Rogers, Arkansas and Gainesville, Georgia
plants, and transfer portions of the business to other locations in North
America and Asia. Operations at the two plants are expected to be phased
out by mid-2007 and the company will provide the affected workers with
severance and displacement assistance.
"This consolidation plan is necessary for Polymer Group to maintain its
competitiveness in the U.S. markets. It is consistent with our strategy to
continuously streamline operations and represents our ongoing commitment
to improving our cost position," said William B. Hewitt, Polymer Group's
interim chief executive officer. "The steps we are taking will result in
an improved cost structure and make Polymer Group a stronger company going
forward. We deeply regret the impact these difficult actions will have on
our employees but they are necessary to achieve our profit targets in an
increasingly competitive global market."
Rogers, Arkansas Plant
Polymer Group will relocate thermal and adhesive bonding business from
Rogers to Landisville, New Jersey, to achieve synergies and reduce
overhead costs. The company will move manufacturing of spunlace fabrics
used in wipes from Rogers to its plants in North Little Rock, Arkansas,
and Benson, North Carolina. The materials produced on these lines are
used in hygiene, industrial and wiping applications.
"The Rogers and Landisville plants have similar manufacturing operations
and equipment," Hewitt said. "By consolidating them, we will be able to
more efficiently utilize these assets at one location and improve overall
profitability."
Originally started up by Scott Paper Co. in 1974, Polymer Group purchased
the plant in 1992. The Rogers plant has approximately 120 workers.
Gainesville, Georgia Plant
Consistent with the previously announced installation of a finishing line
in Suzhou, China, Polymer Group will relocate the finishing of medical
fabrics from Gainesville to the new plant in China that is strategically
located near its customers' converting operations. These fabrics are used
in surgical gowns and drapes, and wound care.
Manufacturing of Polymer Group's proprietary Reticulon apertured film
products used in feminine sanitary napkins will be transferred from
Gainesville to Polymer Group's Bonlam plant in San Luis Potosi, Mexico.
This move also will enable Polymer Group to expand capabilities in Mexico
to produce laminated clothlike backsheet for diapers.
The Gainesville plant was originally part of Chicopee Manufacturing Co.
and was constructed in 1956. Polymer Group purchased the plant in 1995
when it acquired the Chicopee nonwovens business from Johnson & Johnson.
Currently, approximately 50 workers are employed at the plant.
After the consolidations are complete, Polymer Group will continue to
operate five nonwovens plants in the U.S. Other nonwovens locations
include:
-- Benson and Mooresville, North Carolina;
-- Landisville, New Jersey;
-- North Little Rock, Arkansas; and
-- Waynesboro, Virginia.
As a result of the decision to consolidate the operations, the company
estimates that it will recognize cash restructuring charges of
approximately US$5.5 million to US$6.0 million and the non-cash write-off
of certain assets of approximately US$1.4 million. The consolidation
efforts, which are expected to be complete by the end of the third quarter
of fiscal 2007, are expected to result in improved profitability and a
more efficient manufacturing cost structure, with cash fixed costs
expected to be reduced by approximately US$4.0 million to US$6.0 million
on an annualized basis. Additionally, the Company anticipates proceeds of
approximately US$4.5 million to US$6.0 million from the sale of idled
facilities and equipment.
Polymer Group, Inc., -- http://www.polymergroupinc.com/--
(OTC Bulletin Board: POLGA/POLGB) develops, manufactures and
markets engineered materials. The company operates 22
manufacturing facilities in 10 countries throughout the world.
The company has manufacturing offices in Argentina, China and
France, among others.
* * *
As reported in the Troubled Company Reporter on Nov. 24, 2006,
Standard & Poor's Ratings Services revised its outlook on
Polymer Group Inc. to negative from stable. All ratings,
including the 'BB-' corporate credit rating, were affirmed.
The outlook revision follows several quarters of weaker-than-
expected performance and somewhat higher-than-expected debt
primarily due to raw material cost escalation and some product
mix shifts. Also contributing to the disappointing results were
several one-time items such as costs related to technical
problems associated with new equipment, an acquisition that was
not consummated, the closing of manufacturing capacity, and
moving the company's headquarters.
PROALBA SRL: Names Carlos Moreno as Trustee for Bankrupcty Case
---------------------------------------------------------------
A court in Buenos Aires appointed Carlos E. Moreno to supervise the
bankruptcy proceeding of Proalba SRL. Under bankruptcy protection,
control of the company's assets is transferred to Mr. Moreno.
As trustee, Mr. Moreno will:
-- verify creditors' proofs of claim;
-- prepare and present individual and general reports in
court after the claims are verified; and
-- administer Proalba SRL's assets under court supervision
and take part in their disposal to the extent established
by law.
The trustee can be reached at:
Carlos E. Moreno
Tucuman 1658
Buenos Aires, Argentina
PROCESADORA ROSARIO: Reorganization Proceeding Concluded
--------------------------------------------------------
Procesadora Rosario SRL's reorganization proceeding has ended. Data
published by Infobae on its Web site indicated that the process was
concluded after a court in Santa Fe approved the debt agreement signed
between the company and its creditors.
The debtor can be reached at:
Procesadora Rosario SRL
Marco Paz 4021, Rosario
Santa Fe, Argentina
The trustee can be reached at:
Jose Ernesto Pedro
Avda Pellegrini 1898, Rosario
Santa Fe, Argentina
QUERONEA SA: Asks for Court Approval to Reorganize Business
-----------------------------------------------------------
A court in Buenos Aires is studying the merits of Queronea SA's petition
to reorganize its business after it stopped paying its obligations.
The petition, once approved by the court, will allow Queronea SA to
negotiate a settlement plan with its creditors in order to avoid a
straight liquidation.
The debtor can be reached at:
Queronea SA
Suipacha 370
Buenos Aires, Argentina
RECRUITERS & TRAINERS: Claims Verification Is Until March 23
------------------------------------------------------------
Eduardo V. Facciuto, the court-appointed trustee for Recruiters &
Trainers' reorganization proceeding, will verify creditors' proofs of
claim until March 23, 2007.
Ms. Facciuto will present the validated claims in court as individual
reports on May 10, 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 Recruiters & Trainers
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 Recruiters & Trainers'
accounting and banking records will follow on
June 25, 2007.
On Dec. 18, 2007, Recruiters & Trainers's creditors will vote on a
settlement plan that the company will lay on the table.
The trustee can be reached at:
Eduardo V. Facciuto
Arevalo 3070
Buenos Aires, Argentina
RED TOTAL: Deadline for Claims Verification Is Set for Feb. 23
--------------------------------------------------------------
Miryam Lewenbaum, the court-appointed trustee for Red Total SRL's
bankruptcy proceeding, will verify creditors' proofs of claim until Feb.
23, 2007.
Under the Argentine bankruptcy law, Miryam Lewenbaum is required to
present the validated claims in court as individual reports. A Court in
Buenos Aires will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and challenges
raised by Red Total and its creditors.
Inadmissible claims may be subject for appeal in a separate proceeding
known as an appeal for reversal.
Miryam Lewenbaum will also submit a general report that contains an audit
of Red Total's accounting and banking records. The report submission
dates have not been disclosed.
The debtor can be reached at:
Red Total SRL
Avda Entre Rios 166
Buenos Aires, Argentina
The trustee can be reached at:
Miryam Lewenbaum
Montevideo 666
Buenos Aires, Argentina
SANATORIO REGIONAL: Reorganization Proceeding Concluded
-------------------------------------------------------
Sanatorio Regional SRL's reorganization proceeding has ended. Data
published by Infobae on its Web site indicated that
the process was concluded after a court in Tucuman approved the debt
agreement signed between the company and its creditors.
SUPERMERCADOS TOLEDO: Reorganization Proceeds to Bankruptcy
-----------------------------------------------------------
Supermercados Toledo SA's creditors did not approve the settlement plan
that the company laid on the table, prompting a court in Buenos Aires to
convert its reorganization into a bankruptcy proceeding.
Under bankruptcy protection, all of the debtor's assets will be liquidated
and proceeds distributed to creditors.
The trustees, Julio Cacace, Alberto Macias, Mirian Bisignano, and Raul
Ramil, will:
-- verify creditors' proofs of claim;
-- prepare and present individual and general reports in
court after the claims are verified; and
-- administer Supermercados Toledo's assets under court
supervision and take part in their disposal to the extent
established by law.
The dates of the verification deadline and submission of the reports are
yet to be disclosed.
The debtor can be reached at:
Supermercados Toledo SA
Dorrego 3592, Mar del Plata
Buenos Aires, Argentina
The trustees can be reached at:
Julio Cacace
Alberto Macias
Mirian Bisignano
Raul Ramil
11 de Septiembre 3114, Mar del Plata
Buenos Aires, Argentina
UNILUB SA: Last Day for Verification of Claims Is on March 19
-------------------------------------------------------------
Alfonso Raul Badaracco, the court-appointed trustee for Unilub SA's
bankruptcy proceeding, verifies creditors' proofs of claim until March 19,
2007.
Mr. Badaracco will present the validated claims in court as individual
reports on May 4, 2007. A court in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Unilub SA 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 Unilub SA's accounting and
banking records will follow on June 19, 2007.
Mr. Badaracco is also in charge of administering Unilub SA's assets under
court supervision and will take part in their disposal to the extent
established by law.
The debtor can be reached at:
Unilub SA
Sarmiento 1469
Buenos Aires, Argentina
The trustee can be reached at:
Alfonso Raul Badaracco
Esmeralda 980
Buenos Aires, Argentina
UNIVERSAL REAL: Verification of Proofs of Claim Is Until April 5
----------------------------------------------------------------
Beatriz Dominguez, the court-appointed trustee for Universal Real Estate
SA's bankruptcy proceeding, verifies creditors' proofs of claim until
April 5, 2007.
Ms. Dominguez will present the validated claims in court as individual
reports on May 17, 2007. A court in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Universal Real 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 Universal Real's accounting and
banking records will follow on June 29, 2007.
Ms. Dominguez is also in charge of administering Universal Real's assets
under court supervision and will take part in their disposal to the extent
established by law.
The trustee can be reached at:
Beatriz Dominguez
Avda Rivadavia
Buenos Aires, Argentina
=============
B A H A M A S
=============
TEEKAY SHIPPING: Declares US$0.2375 Per Share Cash Dividend
-----------------------------------------------------------
Teekay Shipping Corp.'s Board of Directors has voted to declare a cash
dividend on its common stock of US$0.2375 per share, payable on Jan. 26,
2007, to all shareholders of record as at Jan. 12, 2007.
About Teekay
Teekay Shipping Corp., a Marshall Islands corporation
headquartered in Nassau, Bahamas, transports more than 10% of the world's
seaborne oil and has expanded into the liquefied natural gas shipping
sector through its publicly listed subsidiary, Teekay LNG Partners L.P.,
and into the offshore production, storage and transportation sector
through its publicly-listed subsidiary, Teekay Offshore Partners L.P.
With a fleet of over 140 tankers, offices in 17 countries and 5,100
seagoing and shore-based employees, Teekay provides a comprehensive set of
marine services to the world's leading oil and gas companies, helping them
seamlessly link their upstream energy production to their downstream
processing operations.
* * *
As reported in the Troubled Company Reporter on Dec. 21, 2006, Moody's
Investors Service has downgraded the ratings of Teekay
Shipping Corporation -- Corporate Family to Ba2 from Ba1, and
senior unsecured to Ba3 from Ba2. Moody's also affirmed the
SGL-2 Speculative Grade Liquidity rating. Moody's said the rating outlook
was changed to negative.
=============
B E R M U D A
=============
GLOBAL CROSSING: Providing IP Transit Service to SyncCast
---------------------------------------------------------
Global Crossing is supplying IP Transit service to SyncCast, one of the
providers of digital media technology content delivery solutions.
SyncCast will use Global Crossing's IP network to deliver music, movie,
and gaming downloads quickly and reliably to end users.
"As SyncCast's business continues to grow by delivering massive media
files, Global Crossing showed that they could support our expansion by
rapidly providing IP Transit capable of transporting up to 40 Gigabits of
traffic," said Lance Ware, SyncCast's CEO. "Now, SyncCast can quickly
deliver the latest movies, music or games to end-users using Global
Crossing's fully redundant, MPLS-based IP network."
In only a week's time, Global Crossing turned up four 10 Gigabit Ethernet
ports to provide SyncCast with a high-bandwidth ramp onto Global
Crossing's network via connections at SyncCast's Anaheim and New York City
Content Delivery Network locations. SyncCast is taking advantage of
Global Crossing's network reach and peering agreements to quickly
distribute content to a broader audience.
Global Crossing IP Transit provides customers extensive private peering
relationships and high-performance, direct high-speed connectivity to the
Internet at speeds ranging from T1/E1 to 10GigE. In addition to IP
Transit, connection to Global Crossing's IP network is available though a
variety of access options, including IP VPN, Ethernet, wavelengths, metro
networks and carrier rings.
"SyncCast has quickly become one of the leading content solutions
providers by signing deals with the world's top corporations to deliver
music, games, videos and more," said John Legere, Global Crossing's CEO.
"We're excited about helping their business grow and prosper through the
real-time delivery of services to end-users. Industry innovators like
SyncCast understand the tremendous advantages of Global Crossing's
seamless global network and IP offerings and are utilizing them to further
their businesses and deliver new services and features to customers."
Through Global Crossing's comprehensive, end-to-end network management
system, SyncCast also can monitor traffic 24 hours a day, seven days a
week for unsurpassed reliability, while enjoying always-on, direct
high-speed connectivity to the Internet. Like all customers, SyncCast
also benefits from Global Crossing's uCommand -- an industry-leading
online account management tool, available 24x7, which allows customers to
monitor their network, create utilization reports, establish end-user and
product accounts, and view monthly billing reports.
As a global, Tier 1 Internet Service Provider, Global Crossing is
connected with every other major Tier 1 ISP in the world. Reduced latency
improves the end-user's experience, which translates into greater
satisfaction on the part of both consumers and the content providers who
are trying to serve them. In addition, Global Crossing has implemented
Internet Protocol version 6 alongside the current standard, IPv4, in a
dual-stack configuration. Customers may share bandwidth between both
protocol versions on the same port, while enjoying the same Service Level
Agreements. As a leader in the deployment of IPv6, Global Crossing has
significantly augmented worldwide availability of the IPv6 standard.
About SyncCast
SyncCast is a provider of digital media technology and content delivery
solutions. SyncCast has over a decade of experience throughout the
interactive digital media community with extensive experience in
application development, system integration, hosting, managed services,
connectivity and content distribution solutions. SyncCast is an expert in
the development and integration of complex digital rights management
solutions, placing specific emphasis in working with the entertainment and
broadcast industries for the secure delivery of their digital media
assets.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
-- http://www.globalcrossing.com/-- provides telecommunication
services over the world's first integrated global IP-based
network, which reaches 27 countries and more than 200 major
cities around the globe including Bermuda, Argentina, Brazil,
and the United Kingdom. Global Crossing serves many of the
world's largest corporations, providing a full range of managed
data and voice products and services. The company filed for
chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No.
02-40188). When the Debtors filed for protection from their
creditors, they listed US$25,511,000,000 in total assets and
US$15,467,000,000 in total debts. Global Crossing emerged from
chapter 11 on Dec. 9, 2003.
At Sept. 30, 2006, Global Crossing Ltd.'s balance sheet
reflected a US$131 million stockholders' deficit. At
June 30, 2006, the company reported US$1.87 billion in total
assets and US$1.95 billion in total liabilities, resulting to a
stockholders' deficit of US$86 million. It also reported a
US$173 million stockholders' deficit on Dec. 31, 2005.
GREENBULL LTD: Proofs of Claim Filing Deadline Is on Jan. 9
-----------------------------------------------------------
Greenbull Ltd.'s creditors are given until Jan. 9, 2007, to prove their
claims to Jennifer Y. Fraser, 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.
Greenbull Ltd.'s shareholders agreed on Dec. 19, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
GREENBULL LTD: Holding Final General Meeting on Jan. 25
-------------------------------------------------------
Greenbull Ltd.'s final general meeting will be at 9:00 a.m. on Jan. 25,
2007, or as soon as possible, at the liquidator's place of business.
Greenbull Ltd.'s shareholders will determine during the meeting, through a
resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
GREENCOW LTD: Last Day for Proofs of Claim Filing Is on Jan. 9
--------------------------------------------------------------
Greencow Ltd.'s creditors are given until Jan. 9, 2007, to prove their
claims to Jennifer Y. Fraser, 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.
Greencow Ltd.'s shareholders agreed on Dec. 19, 2006, to place the company
into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
GREENCOW LTD: Liquidator to Present Wind Up Accounts on Jan. 25
---------------------------------------------------------------
Greencow Ltd. 's final general meeting will be at 9:30 a.m. on Jan. 25,
2007, or as soon as possible, at the liquidator's place of business.
Greencow Ltd.'s shareholders will determine during the meeting, through a
resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
GREENDUCK LTD: Creditors Must File Proofs of Claim by Jan. 9
------------------------------------------------------------
Greenduck Ltd.'s creditors are given until Jan. 9, 2007, to prove their
claims to Jennifer Y. Fraser, 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.
Greenduck Ltd.'s shareholders agreed on Dec. 19, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
GREENDUCK LTD: Shareholders to Gather for Jan. 25 Final Meeting
---------------------------------------------------------------
Greenduck Ltd. 's final general meeting will be at 10:00 a.m. on Jan. 25,
2007, or as soon as possible, at the liquidator's place of business.
Greenduck Ltd.'s shareholders will determine during the meeting, through a
resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
REYNOLDS INTERNATIONAL: Proofs of Claim Must be Filed by Jan. 16
----------------------------------------------------------------
Reynolds International (China) Ltd.'s creditors are given until Jan. 16,
2007, to prove their claims to Jennifer Y. Fraser, 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.
Reynolds International's shareholders agreed on Dec. 28, 2006, to place
the company into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
REYNOLDS INTERNATIONAL: Final General Meeting Is Set for Jan. 31
----------------------------------------------------------------
Reynolds International (China) Ltd.'s final general meeting will be at
9:00 a.m. on Jan. 31, 2007, or as soon as possible, at the liquidator's
place of business.
Reynolds International's shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts and
documents of the company and of the liquidator will be disposed.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
=============
B O L I V I A
=============
YPF SA: Parent Firm Asks Auditor to Review Bolivian Assets
----------------------------------------------------------
Bolivian newspaper Expansion says that Repsol, the parent company of YPF
SA, has asked King & Spalding, its reserves auditors to evaluate all its
assets in Bolivia, after the country implemented nationalization of its
oil and gas reserves.
Repsol seeks to maintain at least part of its Bolivian reserves on books,
Expansion says, citing sources familiar with the matter.
According to AFX News, Repsol has sent King & Spalding all the new
contracts signed with the Bolivian government on
Oct. 28, 2006.
AFX News relates that under the terms of the contracts, foreign oil firms
will surrender a higher proportion of profits from the exploitation of
large oil fields to the Bolivian government, in return for greater control
over the production and commercialization of gas.
According to Expansion, Repsol thinks it can still book a large part of
its Bolivian reserves, amounting to 604 million barrels of oil equivalent,
or 18% of the firm's total reserves.
Repsol will monitor the decisions taken by other oil majors on their
Bolivian reserves. The company does not rule out consulting the
Securities and Exchange Commission on the matter, Expansion states.
YPF SA is an integrated oil and gas company engaged in the
exploration, development and production of oil and gas and
natural gas and electricity-generation activities (upstream),
the refining, marketing, transportation and distribution of oil
and a range of petroleum products, petroleum derivatives,
petrochemicals and liquid petroleum gas (downstream). Repsol,
which holds 99.04% of YPF's shares, controls YPF.
* * *
Fitch Ratings assigned BB+ long-term issuer default rating on YPF SA. The
outlook is stable.
Moody's Investors Service assigned these ratings on YPF SA:
-- B2 long-term foreign currency corporate family
rating; and
-- Ba2 foreign currency senior unsecured rating;
Fitch said the outlook is negative.
YPF SA: Parent Firm Inks Accord to Supply Argentina with Petcoke
----------------------------------------------------------------
sheryl
12/28/2006 12:40:12 PM EST
BNamericas.com
Repsol, the parent company of YPF SA, has signed an agreement with the
Argentine federal planning, investment and services ministry and the
mining secretariat to supply 16,000 tons per month of petcoke to lime
producers, the secretariat said in a statement.
The secretariat told El Cronista that the agreement lasts for four years
and includes a special rate for small-scale lime producers.
The deal took effect on Jan. 1, El Cronista states, citing the secretariat.
YPF SA is an integrated oil and gas company engaged in the
exploration, development and production of oil and gas and
natural gas and electricity-generation activities (upstream),
the refining, marketing, transportation and distribution of oil
and a range of petroleum products, petroleum derivatives,
petrochemicals and liquid petroleum gas (downstream). Repsol,
which holds 99.04% of YPF's shares, controls YPF.
* * *
Fitch Ratings assigned BB+ long-term issuer default rating on YPF SA. The
outlook is stable.
Moody's Investors Service assigned these ratings on YPF SA:
-- B2 long-term foreign currency corporate family
rating; and
-- Ba2 foreign currency senior unsecured rating;
The Outlook is Negative.
* BOLIVIA: Franklin Mining Prepares for Pulacayo Processing
-----------------------------------------------------------
Franklin Mining, Inc., has begun implementing their plan to process
Pulacayo tailings. A pilot plant has been located in Peru and Franklin
executives are traveling to Bolivia to negotiate its purchase.
This initial plant will operate at a 400-ton daily rate while remaining
environmental licenses and permits are secured and a full-scale plant is
completed. When operational, daily processing capacity should reach 5,000
metric tons. Total tailings volume to be processed is estimated to be
4,018,880 MT and require 42 months.
Revenue generated during initial months will be used to finalize leases
for the full-scale plant. Franklin's recently completed metallurgical
analysis indicates total revenue potential in excess of US$$36 million.
About Franklin Mining, Inc.
Franklin Mining, Inc. has interests in the United States, Argentina and
Bolivia which include a wholly owned subsidiary, Franklin Mining, Bolivia,
as well as 51% interest in Franklin Oil & Gas, Bolivia and 51% interest in
Franklin Oil & Gas, Argentina.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
ALCATEL-LUCENT: Appoints Gerard Le Bihan to Head Lannion Site
-------------------------------------------------------------
Alcatel-Lucent appointed Gerard Le Bihan to lead its site in Lannion,
France, replacing Nicolas Le-Guennec. He will also keep its operational
functions in Alcatel-Lucent convergence activities.
Nicolas Le-Guennec, who has lead the legacy Alcatel site in Lannion since
2002, is becoming responsible for the global real estate portfolio of
Alcatel-Lucent within the nine Regional Units established in Europe &
South (Central & Latin America, France, Iberia, Italy, Middle-East,
Africa, South Asia, South East Europe).
Gerard Le Bihan joined Alcatel in 1981, and made his career there.
Between 1981 and 2001, he managed different technical functions,
especially in the ATM environment. In 2002, he joined the Mobile
communications activities as Project director for new product and network
integration focusing on IMS development. Since 2004, he was Senior
architect in charge of the portfolio renovation for both the circuit and
data product lines. Gerard Le Bihan has an engineer degree of ENST Brest
(Ecole Nationale Superieure de Telecommunications). He is currently 48
years old.
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide, to deliver
voice, data and video communication services to end users. With 79,000
employees and operations in more than 130 countries, including Brazil,
Alcatel-Lucent is a local partner with global reach. Through its
operations in fixed, mobile and converged broadband networking, Internet
protocol (IP) technologies, applications, and services, Alcatel-Lucent
offers the end-to-end solutions that enable communications services for
people at home, at work and on the move.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their
merger transaction, and began operations as a communication solutions
provider under the name Alcatel-Lucent on Dec. 1, 2006.
* * *
As reported on Dec. 14, 2006, following the completion of Alcatel S.A.'s
merger with Lucent Technologies Inc., at which time Alcatel was renamed
Alcatel-Lucent, Fitch Ratings downgraded and removed Alcatel from Rating
Watch Negative:
-- Issuer Default Rating to BB from BBB-; and
-- Senior unsecured debt to BB from BBB-.
Alcatel's F3 short-term rating has also been withdrawn.
The Rating Outlook for Alcatel-Lucent is Stable.
Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:
-- Issuer Default Rating BB-;
-- Senior unsecured debt BB-;
-- Convertible subordinated debt B; and
-- Convertible trust preferred securities B.
Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent. The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.
At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time. The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.
Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts. This
should result in a rapid convergence of the credit risks of the
affected companies. The outlook for all these ratings is
stable. This rating action concludes the rating reviews
initiated on April 3, 2006.
Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006 research update.
The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed. S&P said the outlook is positive.
COMPANHIA FORCA: Board Okays Distribution Units' Restructuring
--------------------------------------------------------------
Companhia Forca e Luz Cataguazes-Leopoldina said in a filing with Bovespa,
the Sao Paulo stock exchange, that its board has ratified the
restructuring of the firm's distribution subsidiaries.
Business News Americas relates that the restructuring is designed to
comply with legislation that requires power firms to separate their
generation and distribution assets.
Companhia Forca said in a statement that under the restructuring plan,
Energipe -- its Sergipe state power distribution unit -- will control
distributors Celb and Saelpa, which operate in the same state.
Aneel, the Brazilian power regulator, has approved the restructuring plan,
BNamericas reports.
* * *
As reported by Troubled Company Reporter on Nov. 9, 2005,
Standard & Poor's Ratings Services assigned its 'B+' foreign and
local currency corporate credit rating to Brazil-based electric
distribution company Companhia Forca e Luz Cataguazes-Leopoldina
in its global scale. The company's rating in Brazil national
scale is 'brBBB+'. S&P said the outlook is negative.
COSAN INDUSTRIA: Moody’s Assigns Ba2 Rating on US$300MM Notes
-------------------------------------------------------------
Moody's Investors Service assigned a Ba2 foreign currency rating to Cosan
Industria e Comercio's proposed issuance of approximately US$300 million
guaranteed senior unsecured notes due in 2017. Simultaneously, Moody's
affirmed Cosan's Ba2 global local currency corporate family rating. The
ratings outlook is stable.
The proposed notes will be issued by Cosan Finance Limited, a wholly owned
subsidiary of Cosan based in the Cayman Islands, but unconditionally and
irrevocably guaranteed by Cosan and Usina da Barra SA -- Acucar e Alcool.
The net proceeds will be used for capital expenditures, including the
co-generation projects, the expansion of facilities and the purchase of
equipment and for the payment of a portion of indebtedness. Cosan also
intends to use part of the proceeds for possible future acquisitions and
for general corporate purposes, including working capital needs.
The assigned Ba2 foreign currency rating is based on Cosan's Ba2 global
local currency scale corporate family rating which considers the 22 rating
factors outlined in our Global Natural Product Processors -- Protein and
Agriculture Methodology.
"Cosan's Ba2 rating continues to be supported by the company's dominant
market position as the largest producer of sugar and ethanol in Brazil and
leading position in the world, Brazil's continued solid fundamentals and
strong competitive position for ethanol and sugar production, combined
with the pressures for currently regulated markets such as Europe to
deregulate gradually," says Moody's analyst Soummo Mukherjee. "However,
the rating continue to be constrained primarily by the risk of volatility
in earnings and cash flow inherent in its commodity-oriented business and
the event risk from the company's acquisitive growth strategy," he adds.
The stable outlook reflects Moody's expectation that the company will
maintain credit metrics consistent with the Ba2 category, solid liquidity,
and that leverage will modestly improve over the next twelve months due to
maintenance of debt levels combined with ongoing increases in operating
performance.
Cosan's rating could be raised if the company is able to increase its
scale and product diversification, reducing the level of correlation
between sugar and ethanol. An improvement in the ratings or outlook could
also result from a significant increase in the percentage of total world
sugar production that trades in the unregulated markets. Quantitatively,
positive rating momentum would require the company to generate free cash
flow to debt in the range of 9-12% and EBITA / Interest in the 4-5 x range
on a sustainable basis.
Cosan's current ratings could come under negative pressure if world sugar
prices were to drop significantly for a prolonged period of time and
adversely affected the company's profitability; if the Central South
region of Brazil, Cosan's only area of production, suddenly experienced a
material adverse event such as a natural catastrophe or a prolonged
drought; or if Cosan's acquisitive strategy led to a deterioration of
current credit metrics. Quantitatively, Cosan's ratings would come under
negative pressure if free cash flow remained negative at the end of its FY
2007 and/or if Debt / EBITDA increased to above 4 x.
For further detail, please refer to the Credit Opinion on Cosan, available
to subscribers on Moodys.com.
Moody's has reviewed some preliminary legal documentation for the proposed
notes issuance transaction. The rating assumes that there will be no
material variation from the draft documents reviewed and that all legal
agreements are legally, valid, binding and enforceable.
Ratings assigned:
-- US$300 million of guaranteed senior unsecured notes
due in 2017: Ba2
Ratings affirmed:
-- Global local currency scale corporate family rating: Ba2
-- Brazilian national scale corporate family rating: A1.br
-- Foreign currency senior unsecured rating: Ba2
Cosan SA Industria e Comercio, headquartered in Sao Paulo, Brazil, is the
third largest sugar producer and the second largest ethanol producer in
the world. In 2006 / 2007 it crushed more than 36 million tons of sugar
cane in seventeen mills located in the Central South region of Brazil.
During the six month period ended on October 31, 2006, Cosan presented
sugar sales of 1.7 million tons and ethanol sales of 629 million liters.
DURA AUTOMOTIVE: Taps Miller Buckfire as Investment Banker
----------------------------------------------------------
DURA Automotive Systems, Inc. and its debtor affiliates seek authority
from the U.S. Bankruptcy Court for the District of Delaware to employ
Miller Buckfire & Co., LLC, as their investment banker.
Miller Buckfire is an independent firm that provides strategic and
financial advisory services in large-scale corporate restructuring
transactions. The firm is owned and controlled by Henry S. Miller and
Kenneth A. Buckfire and by the employees of Miller Buckfire. Miller
Buckfire currently has approximately 45 employees, many of whom were
employees of the Financial Restructuring Group of Dresdner Kleinwort
Wasserstein, Inc., before July 16, 2002. The firm's professionals are
providing or have provided financial advisory, investment banking, and
other services in connection with the restructuring of, among others:
-- Acterna Corporation,
-- Allied Holdings, Inc.,
-- Aurora Foods, Inc.,
-- Burlington Industries,
-- Calpine Corporation,
-- Dana Corporation,
-- Delta Air Lines, Inc.,
-- Dow Corning Corporation,
-- EaglePicher Holdings, Inc.,
-- Exide Technologies,
-- FLYi, Inc.,
-- Foamex International,
-- Interstate Bakeries Corporation,
-- Kmart Corporation,
-- Loewen Group,
-- McLeodUSA,
-- Mirant Corp.,
-- Pegasus Satellite Communications,
-- PSINet,
-- Polaroid Corporation,
-- The Spiegel Group, and
-- TECO Energy
Keith Marchiando, chief financial officer, relates that the Debtors
employed Miller Buckfire in early August 2006. Since that time, the firm,
among others, has:
(a) analyzed the Debtors' current liquidity and projected
cash flow;
(b) assisted the Debtors in evaluating their restructuring
alternatives; and
(c) conducted a comprehensive process to secure debtor-in-
possession financing for the Debtors on the most
competitive terms and conditions available on the
Debtors' behalf.
As a result, Miller Buckfire acquired significant knowledge of the Debtors
and their businesses and is now intimately familiar with the Debtors'
financial affairs, debt structure, operations and related matters, Mr.
Marchiando says.
Pursuant to an engagement letter dated Aug. 2, 2006, at the request and
direction of the Debtors, Miller Buckfire will:
(a) advise and assist the Debtors in structuring and
effectuating the financial aspects of any restructuring
or sale transactions proposed to be undertaken by the
Debtors;
(b) if applicable, identify, solicit, and negotiate with
potential lenders or investors in connection with any
financing or potential acquirers in connection with any
sale;
(c) provide financial advice and assistance to the Debtors in
developing and seeking approval of a restructuring plan,
including participating in negotiations with entities or
groups affected by the plan; and
(d) participate in hearings before the Court with respect to
the matters upon which Miller Buckfire has provided
advice, including, as relevant, coordinating with the
Debtors' counsel with respect to testimony in connection
with its work.
In a separate application, the Debtors also wish to employ Glass &
Associates, Inc., as their financial advisors. The Debtors believe the
two firms will not duplicate the services of each other because they will
be performing unique functions.
According to the Debtors, Miller Buckfire will focus on structuring,
evaluating, and assisting the consummation of a financial restructuring
and any related financings and sale transactions, while Glass will focus
on evaluating, overseeing, and assisting the Debtors in the financial
aspects of its operational restructuring. "In short, Miller Buckfire will
carry out distinct functions and will use reasonable efforts to coordinate
with the Debtors' other retained professionals to avoid the unnecessary
duplication of services," Mr. Marchiando says.
The Debtors will pay Miller Buckfire:
-- a US$200,000 monthly advisory fee; provided that 50% of
the amount of any Monthly Advisory Fee in excess of
US$800,000 (four months of Monthly Advisory Fees) paid to
Miller Buckfire will be credited to the extent actually
paid against any Restructuring Transaction Fee payable to
Miller Buckfire;
-- a US$6,700,000 Restructuring Transaction Fee, after taking
account for a credit for 50% of the DIP Financing Fee paid
to Miller Buckfire before the Petition Date, if the
Debtors consummate a Restructuring Transaction;
-- a Sale Transaction Fee of 1% of the Aggregate
Consideration, if the Debtors consummate a Sale
Transaction; and
-- a Financing Fee of 3% of the gross proceeds of any
indebtedness issued that is unsecured or subordinated, and
5% of the gross proceeds of any equity or equity-linked
securities or obligations issued, if the Debtors
consummate any Financing Transaction.
The Debtors will reimburse the firm for all reasonable out-of-pocket
expenses.
Mr. Marchiando says the Fee Structure is consistent with Miller Buckfire's
normal and customary billing practices for comparably sized and complex
cases. The Debtors compared Miller Buckfire's proposed fees with other
proposals received and the range of investment banking fees in other large
and complex Chapter 11 cases. In both cases, the Debtors found Miller
Buckfire's proposed fees to be reasonable and within the range of other
comparable transactions.
The firm will file interim and final fee applications with the Court.
Although Miller Buckfire does not charge for its services on an hourly
basis, Miller Buckfire will maintain time records in half-hour increments.
Before their bankruptcy filing, the Debtors paid Miller Buckfire
US$2,600,000 for fees and an expense reimbursement of US$25,061. The firm
holds a US$500,000 retainer for fees and expenses. As of the date of
filing for chapter 11 protection, Miller Buckfire did not hold a
prepetition claim against the Debtors for services rendered.
Marc D. Puntus, a managing director at Miller Buckfire & Co.,
LLC, relates the Court that neither he nor Miller Buckfire nor any of its
professional employees have any connection with the Debtors, their
creditors, the U.S. Trustee or any other potential parties-in-interest in
the Debtors' cases, or their attorneys and accountants, except in some
circumstances including:
(a) Prior to the Petition Date, Miller Buckfire's
professionals performed services for the Debtors;
(b) Miller Buckfire may have performed services to certain
of the Debtors' creditors in matters unrelated to the
Chapter 11 cases, including but not limited to affiliates
of JPMorgan Chase Bank, N.A., Citibank, N.A., Bank of
America, N.A., Wells Fargo Foothill, LLC, Credit Suisse
Group, among others;
(c) From time to time, Miller Buckfire also may have had
dealings on other unrelated matters with some of the
other professionals who are providing, or are expected to
provide, services in the Debtors' cases, including,
without limitation:
* Kirkland & Ellis LLP -- the Debtors' proposed counsel,
* Glass & Associates, Inc. -- the Debtors' proposed
turnaround consulting firm,
* Bingham McCutchen LLP -- counsel to certain prepetition
second lien lenders,
* Lazard Ltd. -- advisors to counsel to certain
prepetition second lien lenders,
* The Blackstone Group -- advisors to the senior
noteholders, and
* Fried Frank Harris Shriver & Jacobson LLP -- counsel to
the senior noteholders
"Miller Buckfire and the employees of Miller Buckfire who will work on
[the] engagement do not hold or represent any interest adverse to the
Debtors or their estates, and Miller Buckfire is a 'disinterested person'
as that term is defined in Section 101(14) of the Bankruptcy Code, as
modified by Section 1107(b) of the Bankruptcy Code," Mr. Puntus assures
the Court.
Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA)
-- http://www.DURAauto.com/-- is an independent designer and manufacturer
of driver control systems, seating control systems, glass systems,
engineered assemblies, structural door modules and exterior trim systems
for the global automotive industry. The company is also a supplier of
similar products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North American,
Japanese and European original equipment manufacturers and other
automotive suppliers.
The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr.
District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc
Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett,
Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy
proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and
Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the
Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special
counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass &
Associates Inc., gives financial advice to the Debtor. Kurtzman Carson
Consultants LLC handles the notice, claims and balloting for the Debtors
and Brunswick Group LLC acts as their Corporate Communications Consultants
for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in
total assets and US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DURA AUTOMOTIVE: Utility Cos. Object to Adequate Assurance Order
----------------------------------------------------------------
Quest Energy, LLC, Northern Indiana Trading Co., American Electric, et
al., Lawrenceburg Utility and Upper Cumberland Electric filed their
objections to the adequate assurance procedures of DURA Automotive
Systems, Inc. and its debtor affiliates.
As reported in the Troubled Company Reporter on Dec. 20, 2006
the Honorable Kevin J. Carey of U.S. Bankruptcy Court for the
District of Delaware granted, on an interim basis, the Debtors' request to:
(i) prohibit utility companies from altering, refusing, or
discontinuing any utility services to the Debtors;
(ii) determine that utility companies have adequate
assurance of payment within the meaning of Section 366
of the Bankruptcy Code, without the need for payment of
additional deposits or security; and
(iii) establish the procedures for resolving requests by
utility companies for additional or different
assurances of future payment.
A. Quest Energy
Quest Energy asserts that it is not a "utility" within the meaning of
Section 366 of the Bankruptcy Code, and thus, cannot be properly included
in any list of Utility Providers.
Quest Energy tells the Honorable Kevin J. Carey of the U.S. Bankruptcy
Court for the District of Delaware that it is not a regulated monopoly and
the termination of its contracts with the Debtors prepetition did not
result in the termination of any electric service to the Debtors, but
resulted in service responsibility transferred back to the relevant "local
distribution companies" -- Consumers Energy, and Detroit Edison.
Quest Energy notes that Consumer Energy and Detroit Edison are in the
Debtors' list of utility companies with the exact same account numbers
previously under Quest's control.
John D. Mattey, Esq., at Ferry, Joseph & Pearce, P.A., in Wilmington,
Delaware, argues that Quest Energy is a "forward contract merchant" under
Section 556. Accordingly, he asserts, Quest Energy should be excluded
from the definition of "Utility Provider" under the Interim Utility Order
or any final order.
B. Northern Indiana
Northern Indiana Trading Co. maintains that it is not a "utility" within
the meaning of Section 366 because:
(a) it has no monopoly on the sale or distribution of natural
gas to the Debtors' Butler, Indiana facility or any of
their facilities. The Debtors may purchase gas from any
other source who will sell it;
(b) it is not regulated by any utility regulatory body, has
not filed tariffs, and has no distribution facilities;
and
(c) except for contracts voluntarily entered into with
counterparties, it owes no obligation, as a utility
company does, to sell or deliver natural gas to any
person.
Pursuant to an Agency Agreement dated November 19, 1991, between NITCo and
Universal Tool & Stamping Co., Inc., one of the Debtors, NITCo will act as
Universal's agent with respect to the purchase, transportation and resale
of natural gas.
William F. Taylor, Jr., Esq., McCarter & English, LLP, in Wilmington,
Delaware, argues that Section 366 does not govern the Agency Agreement
because:
-- the Agency Agreement does not impose any obligation on
NITCo to actually provide natural gas to Universal.
Rather, it merely requires that, on Universal's request,
NITCo must "attempt to purchase" natural gas as
Universal's agent; and
-- NITCo does not actually deliver the gas to Universal's
facility. Rather, Universal merely arranges for the
transportation of the gas to Universal through the
utility company that services Universal's facility.
Accordingly, NITCo asks the U.S. Bankruptcy Court for the District of
Delaware to:
(a) deny Debtors' Utility Motion to the extent it purports to
include NITCo on the grounds that it is not a "Utility"
or "Utility Provider"; and
(b) vacate the Interim Utility Order with respect to NITCo on
the same grounds.
C. American Electric, et al.
John D. Demmy, Esq., at Stevens & Lee, P.C., in Wilmington, Delaware,
argues that the Debtors' proposed adequate assurance of payment to the
utility companies violate the express provisions of Section 366.
Mr. Demmy represents the American Electric Power, Duke Energy Indiana,
Inc., Exelon Energy Company, The Detroit Edison Company and Michigan
Consolidated Gas Company.
Section 366(b) requires a debtor to provide a utility company with
adequate assurance of payment, in the form of a deposit or other security
within the first 20 days of the Chapter 11 proceedings, Mr. Demmy points
out. The utility company has the initial right to set the amount of the
deposit or other adequate assurance that it requires.
If the debtor fails to provide the utility company with adequate assurance
of payment "that is satisfactory to the [utility company" within the first
30 days of the Chapter 11 proceeding,
Mr. Demmy explains, Section 366(c)(2) expressly provides that the utility
company is entitled to alter, refuse or discontinue service to the debtor.
Mr. Demmy argues that the Debtors' proposed Additional Assurance
Procedures seek to rewrite Section 366 by permitting the Debtors to set
the amount and form of adequate assurance that they deem "sufficient" in
the first instance, and shifting all risks and burdens from the Debtors to
the utility companies, directly contrary to the procedures mandated under
Section 366.
Mr. Demmy further argues that the Debtors' attempt to extend the
20-day or 30-day provisions of Section 366 should be rejected because it
is without any justification or authority.
Mr. Demmy asserts that the proposed Additional Assurance Procedures are
designed to make the adequate assurance of payment process more time
consuming and burdensome for the utility companies.
There is no legitimate need for, or purpose served by, all of those
burdensome procedures, Mr. Demmy contends. Information regarding
prepetition payment history, or the existence or absence of a prepetition
security deposits, are statutorily irrelevant to determination of adequate
assurance of future payment pursuant to Sections 366(c)(3)(B).
Accordingly, American Electric, et al., ask the Court to hold that they
need not comply with the Debtors' Adequate Assurance Procedures.
American Electric, et al., further ask the Court to direct the Debtors to
provide them the adequate assurance of payment, in the form of two-month
security deposits:
Utility No. of Accounts Deposit Request
------- --------------- ---------------
American Electric 23 US$349,544
Exelon 2 200,000
Duke 4 19,955
Detroit Edison/MCG 4 61,136
Under American Electric, et al.'s billing cycles, the Debtors could
receive two to two and a half months of unpaid service before the service
could be terminated for a postpetition payment default, Mr. Demmy relates.
Thus, the two-month security deposits requested are reasonable, Mr. Demmy
contends.
Mr. Demmy explains that American Electric, et al.'s deposit requests are
based on:
(a) their billing exposure created by respective state law
tariffs and regulations; and
(b) amounts that their respective state regulatory
commission, a neutral third-party entity, permits them to
request.
D. Lawrenceburg Utility and Upper Cumberland Electric
In separate pleadings, Lawrence Utility Systems and Upper Cumberland
Electric Membership Corporation assert that the Debtor's proposed adequate
assurance of payment procedures violate the express provisions of Section
366.
Christopher M. Winter, Esq., at Duane Morris LLP, in Wilmington, Delaware,
relates that in the ordinary course of business, Upper Cumberland could
supply the Debtors with electricity for approximately one and a half
months for which it may not be paid before termination of service. The
Debtors' adequate assurance payments should reflect those time periods, he
asserts.
Upper Cumberland ask the Court to direct the Debtors to provide a one and
a half month security deposit of US$24,385 with an extra 10% payment to
reflect future rate increases.
Upper Cumberland's request for a security deposit consists of:
(a) US$22,169, which equal to one and a half times the
Debtors' highest, historical, monthly consumption, in
aggregate; and
(b) US$2,217, the 10% of US$22,169, to account for
anticipated rate increases.
To adequately assure payment for its postpetition services to the Debtors,
Lawrenceburg seeks a US$751,910 security deposit.
Michael R. Lastowski, Esq., at Duane Morris LLP, in Wilmington, Delaware,
explains that Lawrenceburg's US$751,910 deposit request is equal to two
and a half times the Debtors' highest, historical, monthly consumption,
which is approximately US$683,554, in aggregate, plus 10% of that amount
to account for anticipated rate increases.
Lawrenceburg and Upper Cumberland further ask the Court to direct the
Debtors to pay the arrearages as of the Petition Date:
Utility Provider Amount
---------------- ------
Lawrenceburg US$214,525
Upper Cumberland 20,545
Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA)
-- http://www.DURAauto.com/-- is an independent designer and manufacturer
of driver control systems, seating control systems, glass systems,
engineered assemblies, structural door modules and exterior trim systems
for the global automotive industry. The company is also a supplier of
similar products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North American,
Japanese and European original equipment manufacturers and other
automotive suppliers.
The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr.
District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc
Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett,
Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy
proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and
Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the
Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special
counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass &
Associates Inc., gives financial advice to the Debtor. Kurtzman Carson
Consultants LLC handles the notice, claims and balloting for the Debtors
and Brunswick Group LLC acts as their Corporate Communications Consultants
for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in
total assets and US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
GERDAU SA: Can't Participate in Acerias's 51.89% Stake Auction
--------------------------------------------------------------
The antitrust authorities in Colombia have prevented Gerdau SA from
participating in the auction of a 51.89% stake in Acerias Paz del Rio, Dow
Jones Newswires reports.
Jairo Rubio, the chief of the antitrust agency, told Dow Jones, "The
potential integration of Gerdau and Paz del Rio would unduly restrict
competition."
Gerdau is the biggest steelmaker in Colombia, through its control of two
local steel firms Diaco and Siderurgica del Pacifico, Business News
Americas relates.
Published reports say that Gerdau will have until Jan. 9 to appeal the
decision.
Gerdau said in a statement that the firm was appealing the antitrust
authority's decision in time for the deadline to participate in the
auction.
Mr. Rubio told the Associated Press that Gerdau may be allowed to
participate by accepting certain conditions should it place the winning
offer. Those conditions may include spinning off certain operations.
Willington Ospina, a stock trader with Corredores Asociados, commented to
AP, "One bidder less means the auction will be less fought over and the
final price may be lower than expected."
According to the reports, the regulator authorized Arcelor Mittal's
participation in the auction.
BNamericas reports that the Acerias del Paz stake sale, which has a base
price of COP52 per share for the 8.19 million shares being auctioned, will
conclude this month.
Investors expect the Colombian government and 6,700 former and current
workers to sell a 52% share in Paz del Rio, AP states.
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.
GP INVESTMENTS: Inks Pact with Investors to Create BR Properties
----------------------------------------------------------------
GP Investments, Ltd. signed agreements with co-investors Lehman Brothers
Real Estate Partners, Sandell Asset Management, Tudor Group, Banco Safra,
Talisman Special Purpose Fund Ltd., The Peter Malkin Family and Belfer
Management LLC, creating BR Properties.
The total investment in BR Properties will be US$100 million, with the
initial funding corresponding to 25% of the total investment. GP
Investments will hold 30% of the total capital of BR Properties through
the vehicles of its private equity fund, GP Capital Partners III, L.P.
In addition, GP Investments has the right to subscribe for Warrant
Certificates (bonus de subscricao) that entitle it to subscribe to up to
10% of the outstanding shares of BR Properties.
BR Properties is being established with the purpose of investing in
commercial real estate assets in Brazil, with a primary focus on existing
office buildings, warehouses, and retail stores, excluding shopping malls.
With inflation under control, a stable currency, and real interest rates
on a declining path in Brazil, GP Investments believes the proper
macroeconomic environment is in place for long-term high-return
investments in the real estate sector.
About GP Investments
GP Investments – http://www.gpinvestments.com/-- is a leading private
equity player in Brazil. The GP Investments' activities consist of its
core private equity business and its asset management business, and its
mission is to generate higher than average long term return to its
investors and shareholders. Since its inception in 1993, GP Investments
raised more than US$1.5 billion from Brazilian and international
investors, and acquired more than thirty-five companies in ten different
sectors. On May 2006, GP Investments concluded its Initial Public
Offering -- IPO, becoming the first listed private equity company in
Brazil.
* * *
Standard & Poor's Ratings Services assigned on Jan. 4, 2006, its 'B+'
long-term counterparty credit rating to GP Investments Ltd. The outlook
is stable. At the same time, Standard & Poor's assigned its preliminary
'B+' debt rating on the US$150 million perpetual notes to be issued by GP
Investments in January 2007.
GP INVESTMENTS: S&P Rates US$150 Million Perpetual Notes at B+
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
counterparty credit rating to GP Investments Ltd. The outlook is stable.
At the same time, Standard & Poor's assigned its preliminary 'B+' debt
rating on the US$150 million perpetual notes to be issued by GP
Investments in January 2007.
"The counterparty credit rating reflects the risks intrinsic to the
private equity business; the volatile macroeconomic environment of the
Brazilian economy, where most investments are expected to be made; and the
expected investment concentration," said Standard & Poor's credit analyst
Daniel Araujo. The rating also factors in the need for conservative
liquidity management to deal with the current start-up stage of the
company following the restructuring of the operations.
The positive aspects of the rating include:
-- an experienced team of professionals with strong
reputation in the private equity industry;
-- the reasonably good track record of investments
considering the activities of the GP Investments group
since its beginning in 1993; and
-- the successful IPO concluded in the first half of 2006
that allowed the company to build a significant cash
position and set a new stage for its operations as
a listed company.
As a reflection of GP Investments' investment philosophy, including
preference for larger companies, the investment portfolio is expected to
have significant concentration risk with a small number of investments
even when fully invested. Despite certain policies on investment
diversification, GP Investments compares unfavorably with peers in the
global private equity business. On the positive
side, the investments exclude start-up companies, which reduce uncertainty
in the investment process.
GP Investments completed a successful IPO in 2006, which allowed the
company to raise net proceeds of US$308 million and reinforce its cash
position for new investments. As a preparation for the IPO, GP
Investments went through a restructuring to exclude previous activities
from its balance sheet and start a new phase with new investments. As
such, its financial statements look like a company in pre-operating phase.
Nonetheless, for a more comprehensive analysis of the
company's creditworthiness, we have considered the previous activities as
a reference for its track record, which shows reasonably good performance.
Liquidity and leverage are viewed as potential risk factors to the rating
because of the intrinsic risks to the private equity activity, requiring
close monitoring. The company expects to minimize the liquidity risk by
making use of a coupon payment reserve to cover an 18-month period. It
also intends to keep minimum cash reserves to cover operating expenses
during the pre-operating phase. This is viewed as a key feature because
recurring revenues were not enough to cover fixed costs in 2006.
GP Investments is one of the largest private equity companies in Latin
America. The origin of the company dates back to 1993 when the founders
of the GP Investments Group started the private equity business. The
group achieved a strong reputation in the market because of the founders'
investments in Banco Garantia, Ambev, and Lojas Americanas, and the
investments made since 1993.
The GP Investments group went through a corporate restructuring between
2003 and 2006. This restructuring resulted in a new legal entity that
does not carry any of the previous investments and funds of the "old" GP
group. The only activities under GP Investments include its new private
equity fund called GPCP3, that has a total committed capital of US$250
million, and the asset management operations of its subsidiary GP
Administracao de Recursos de Terceiros Ltda.
GP Investments holds 64% of the asset management company -- which is in
charge of fixed income investment funds, equity funds, and multiple
strategies alternative funds -- and the remaining capital is in the hands
of the asset manager's management team. This operation is managed
separately from the private equity business.
The stable outlook reflects Standard and Poor’s expectations that GP
Investments will maintain strong investment concentration during the next
several years, which requires discipline in liquidity management. The
outlook also incorporates the expectation that recurring revenues will be
sufficient to cover fixed costs after 2007.
The rating may be lowered or the outlook changed to negative if the
company increases its leverage or has worse liquidity indicators than
expected. Standard and Poor's expects the company to maintain cash
reserves that are sufficient to cover both financial and operational
costs. Failure to strictly comply with liquidity guidelines could prompt
a downgrade.
JBS SA: Moody’s Holds B1 Senior Unsecured Rating
------------------------------------------------
Moody's is taking no action at this stage in relation to JBS SA's B1
global local currency corporate family rating and B1 senior unsecured
rating or stable rating outlook following the company's announced plans to
take a series of steps as part of a corporate reorganization aimed to
further streamline its corporate structure and to focus JBS's operations
on its core beef business.
As part of JBS's corporate reorganization, the company is seeking consent
from its note holders to transfer all of the assets of its hygiene and
cleaning products division, as well as certain other assets that are not
directly related to its core beef business, to a newly created affiliate,
Flora Produtos de Higiene e Limpeza Ltda., a wholly owned subsidiary of
J&F Participacoes Ltda., the parent company of JBS.
While JBS's hygiene and cleaning division slightly benefited the company
in terms of product diversification, Moody's notes the division's small
size and contribution to consolidated results, as well as its limited
synergies with the company's core beef business. The hygiene and cleaning
division represented less than 8% of JBS's total net revenues at the end
of
Sept. 30, 2006.
JBS's proposed transaction is subject to bondholder's approval and Moody's
will continue to monitor the developments of the corporate reorganization
for their impact on the company's credit quality.
Headquartered in Sao Paulo, Brazil, JBS is the fourth largest beef company
in the world in terms of live cattle slaughtering capacity and the largest
beef processor and exporter in Brazil, Argentina and Latin America. With
operations in Brazil and Argentina, JBS produces, prepares, packages and
delivers fresh, chilled and processed beef and beef by-products to
customers both in Brazil and abroad. The group also manufactures and
sells hygiene and cleaning products.
NOVELIS INC: Exchange Offer on 7-1/4% Sr. Notes Expired Jan. 4
--------------------------------------------------------------
Novelis Inc. disclosed that its offer to exchange its US$1,400,000,000
7-1/4% Senior Notes due 2015, Series B, which have been registered under
the Securities Act of 1933, as amended, for an equal principal amount of
its outstanding 7-1/4% Senior Notes due 2015 which were initially issued
and sold in a private placement on Feb. 3, 2005, expired at 5:00 pm
Eastern Time on Jan. 4, 2007.
According to information provided by the exchange agent for the exchange
offer, an aggregate principal amount of US$1,379,057,000 of old notes was
validly tendered and not validly withdrawn on or before the expiration
date. The remaining old notes will remain outstanding and the two-year
Rule 144(k) holding period with respect to the old notes will expire on
Feb. 3, 2007. The company will cease paying special interest on the notes
effective immediately.
On Jan. 5, 2007, Novelis expected to deliver an aggregate principal amount
of approximately US$1,379,057,000 of new notes for the old notes accepted
for exchange. In addition, Novelis may deliver additional new notes
subsequent to Jan. 5, 2007, in exchange for old notes tendered pursuant to
guaranteed delivery procedures which may be delivered after the original
expiration of the exchange offer.
Any holder of the old notes who would like to obtain copies of the
prospectus and related documents or who has questions regarding the
exchange offer may contact Novelis Inc.'s exchange agent at:
The Bank of New York Trust Company, N.A.
Tel: (212) 815-5098
Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America. The
company operates in 11 countries and has around 13,000
employees. Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.
Novelis South America operates two rolling plants and primary production
facilities in Brazil. The company's Pindamonhangaba rolling and recycling
facility in Brazil is the largest aluminum rolling and recycling facility
in South America and the only one capable of producing can body and end
stock. The plant recycles primarily used beverage cans, and is engaged in
tolling recycled metal for its customers.
* * *
As reported in the Troubled Company Reporter on Sept. 7, 2006,
Moody's Investors Service downgraded Novelis Inc.'s corporate
family rating to B1 from Ba3, the bank revolver rating to Ba3
from Ba2, the bank term loan rating to Ba3 from Ba2, and senior
unsecured notes to B2 from B1. Moody's also downgraded Novelis
Corp.'s bank term loan rating to Ba3 from Ba2.
PETROLEO BRASILEIRO: JP Morgan Starts Ops as Depository Bank
------------------------------------------------------------
JP Morgan Worldwide Securities Services said in a statement that it has
started operating as depository bank for Petroleo Brasileiro SA, taking
the place of Citigroup.
As reported in the Troubled Company Reporter-Latin America on Jan. 4,
2007, JPMorgan Worldwide has been appointed successor depositary bank for
the common and preferred share American Depositary Receipt (ADR) programs
for Petroleo Brasileiro.
About 27% of Petroleo Brasileiro's voting stock and 36.3% of its
non-voting right stock are traded as ADRs on the New York Stock Exchange.
Petroleo Brasileiro's market capitalization value is estimated at US$108
billion, JPMorgan Worldwide said in a statement.
About JPMorgan Worldwide Securities Services
JPMorgan Worldwide Securities Services, a division of JPMorgan
Chase Bank, N.A., is a global industry leader with US$12.9
trillion in assets under custody. JPMorgan provides innovative
custody, fund accounting and administration and securities
services to the world's largest institutional investors,
alternative asset managers and debt and equity issuers. JPMorgan
Worldwide Securities Services leverages its scale and
capabilities in more than 90 markets to help clients optimize
efficiency, mitigate risk and enhance revenue through a broad
range of investor services as well as securities clearance,
collateral management and alternative investment services.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, and distributes oil and natural
gas and power to various wholesale customers and retail
distributors in Brazil.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Unit Commences Debt Exchange Offer on Notes
----------------------------------------------------------------
Petroleo Brasileiro SA aka Petrtiobras disclosed that its wholly owned
subsidiary Petrobras International Finance Company aka PIFCo has commenced
exchange offers of the five series of notes listed in the table below for
new notes and a cash amount. The Reopening Notes constitute a further
issuance of, and form a single fungible series with PIFCo's benchmark
6.125% global notes due 2016 that were issued on
Oct. 6, 2006.
Pifco is offering holders of Old Notes an opportunity to exchange Old
Notes for a combination of Reopening Notes and a U.S. Dollar amount in
cash. For each U.S.$1,000 principal amount of Old Notes validly tendered
and not withdrawn prior to the Early Tender Date of Jan. 18, 2007, unless
extended by Petrobras and PIFCo, subject to prorationing, holders will
receive a combination of US$1,000 principal amount of our Reopening Notes
and a Cash Payment (Total Exchange Price) calculated using a fixed-spread
pricing formula as set forth in the applicable prospectus.
The company has designated US$20 of the Total Exchange Price as the Early
Tender Payment, which will be paid only to holders who validly tender
their Old Notes on or prior to the applicable Early Tender Date and do not
validly withdraw their tenders.
Outstanding
Priority PIFCo Principal
Order Notes CUSIP/ISIN No. Amount
1 12.375% Global 71645WAF8 / US$134,622,000
Step-Up Notes US71645WAF86
due 2008
2 9.875% Senior G7028BAA9 / US$238,246,000
Notes due 2008 USG7028BAA91;
71646FAA5 /
US71646FAA57;
71646FAB3 /
US71646FAB31
3 9.75% Senior 71645WAB7 / US$286,356,000
Notes due 2011 US71645WAB72;
G7028BAB7 /
USG7028BAB74*;
71645WAA9 /
US71645WAA99
4 9.125% Global 71645WAG6 / US$498,335,000
Notes due 2013 US71645WAG69
5 7.750% Global 71645WAJ0 / US$600,000,000
Notes due 2014 US71645WAJ09
This table should be used in connection with the calculation of the Reopen
Issue Price of the Reopening Notes and the yield to maturity of the
Original 2016 Notes for the Qualified Reopening Condition, as stated in
the prospectus:
6.125% Global 71645WAL5 / US$500,000,000
Notes due 2016 US71645WAL54
Reference
Priority Maturity Bloomberg Treasury Fixed Spread
Order Date Page Security (in bp)
1 April 1, 2008 BBT 4 4.625% due 10
3/31/08
2 May 9, 2008 BBT 4 2.625% due 10
5/15/08
3 July 6, 2011 BBT 5 5.125% due 35
6/30/11
4 July 2, 2013 BBT 6 4.250% due 95
8/15/13
5 September 15, 2014 BBT 6 4.250% due 120
8/15/14
The table should be used in connection with the calculation of the Reopen
Issue Price of the Reopening Notes and the yield to maturity of the
Original 2016 Notes for the Qualified Reopening Condition, as stated in
the prospectus:
October 6, 2016 BBT 6 4.625% due 140
11/15/16
These Notes are admitted to trading on the regulated market of the
Luxembourg Stock Exchange.
The Cash Payment will be determined at 2:00 p.m. New York time on the
first business day after the Early Tender Date of each Offer, using the
fixed-spread pricing formula to determine the value of the Old Notes and
the Reopening Notes.
The amount of the Cash Payment for each US$1,000 principal amount of Old
Notes will equal:
(i) the applicable Total Exchange Price, minus
(ii) the Reopen Issue Price of the Reopening Notes, plus
(iii) the accrued and unpaid interest with respect to the
relevant series of Old Notes to, but not including,
the Settlement Date, minus
(iv) the accrued and unpaid interest with respect to the
Reopening Notes to, but not including, the Settlement
Date.
The company's obligation to accept Old Notes tendered in the Offers is
conditioned on the satisfaction of certain conditions described in the
applicable prospectus, including the condition that we will issue a
maximum principal amount of US$500,000,000 of Reopening Notes issuable
under all of the Offers. In the event that this condition is not
satisfied, the company will accept the series of Old Notes in the priority
order set forth in the chart above and we will prorate the lowest priority
series in order to cause the condition to be satisfied. Old Notes with an
acceptance priority level following the prorated series of Old Notes will
not be accepted for exchange.
Old Notes tendered before the applicable Early Tender Date may be
withdrawn at any time on or prior to 5:00 p.m., New York City time, on the
applicable Early Tender Date but not thereafter. Old Notes tendered after
the applicable Early Tender Date may not be withdrawn, except as described
in the applicable prospectus.
The reference yield for the applicable reference treasury security will be
calculated by Morgan Stanley & Co., Incorporated and UBS Securities LLC in
accordance with standard market practice as of 2:00 pm New York City time,
on Jan. 19, 2007, unless extended by Petrobras and PIFCo, as reported on
the applicable Bloomberg Government Pricing Monitor page indicated in the
chart above, or, if any relevant price is not available on a timely basis
on the applicable Bloomberg Page or is manifestly erroneous, such other
recognized quotation source as the dealer managers shall select in their
sole discretion.
The offers are scheduled to expire at 5:00 pm, New York City time, on Feb.
1, 2007, unless extended or earlier terminated. Settlement of each offer
is expected to occur three business days after the applicable expiration
time of that offer.
PIFCo has retained Morgan Stanley & Co., Incorporated and UBS
Securities LLC to act as dealer managers for the offers, The Bank of New
York to act as exchange agent for the offers, The Bank of New York
(Luxembourg) S.A. to serve as Luxembourg agent for the offers and D.F.
King & Co., Inc. to act as information agent for the offers.
Requests for documents (including the prospectus) may be directed to:
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, New York 10005
Tel: (212) 269-5550 for banks and brokers
(800) 859-8508 for all others
Questions regarding the offers may be directed to:
Morgan Stanley & Co., Incorporated
Tel: (800) 624-1800 (in the United States)
(212) 761-1864 (outside the United States)
-- or --
UBS Securities LLC
Tel: (888) 722-9555, ext. 4210 (in the United States)
(203) 719-4210 (outside the United States)
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, and distributes oil and natural
gas and power to various wholesale customers and retail
distributors in Brazil.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
UNIAO DE BANCOS: Paying Interest on Capital Stock
-------------------------------------------------
Unibanco-Uniao de Bancos Brasileiros SA and Unibanco Holdings SA's board
of directors approved, on Dec. 29, 2006:
1. The payment of Quarterly Interests, related to the fourth
quarter of 2006, in the gross total amount of BRL113.7
million and BRL55.0 million, and net total amount of
BRL96.7 million and BRL46.7 million, respectively to
Unibanco and Unibanco Holdings, to be made on
Jan. 31, 2007.
As per the proposals approved by the respective Boards of
Directors, the shareholders of Unibanco and of Unibanco
Holdings will have the right to receive the interest on
capital stock in accordance with gross and net amounts per
share. These values correspond to 1 share, 1 Share
Deposit Certificate or 1 Global Depositary Share, as the
case may be. An income tax rate of 15% will apply.
2. The payment of interest on capital stock, qualified as
complementary to the interest on capital declared and
paid related to the profit ascertained in the second
semester of 2006, in the gross total amount of BRl246.3
million and BRL150.9 million, and net total amount of
BRL209.3 million and BRL128.3 million, respectively to
Unibanco and Unibanco Holdings, to be made on
Jan. 31, 2007.
As per the proposals approved by the respective Boards of
Directors, the shareholders of Unibanco and of Unibanco
Holdings will have the right to receive the interest on
capital stock in accordance with gross and net amounts per
share. Such values correspond to 1 share, 1 Share Deposit
Certificate or 1 Global Depositary Share, as the case may
be. An income tax rate of 15% will apply.
3. Considering the payments described in items 1 and 2 above,
the total amount to be paid as interests on capital stock
on Jan. 31, 2007, are the gross amounts of BRL360.0
million and BRL205.9 million, and the net amounts of
BRL306.0 million and BRL175.0 million, respectively to
Unibanco and Unibanco Holdings. These values correspond
to the sum of:
(I) quarterly interests related to the forth quarter of
2006 of Unibanco and Unibanco Holdings; and
(II) complementary interest on capital related to the
second semester of 2006 of Unibanco and Unibanco
Holdings.
As per the proposals approved by the respective Boards of
Directors, the shareholders of Unibanco and of Unibanco
Holdings will have the right to receive the interest on
capital stock in accordance with gross and net amounts per
share. These values correspond to 1 share, 1 Share Deposit
Certificate or 1 Global Depositary Share, as the case may
be. An income tax rate of 15% will apply.
The payment shall be made directly to the foreign
depositary bank -- Bank of New York -- which will forward
it to the entitled shareholders.
The payment of the due amounts will be made according to the procedures
and places stated as:
1. GDSs' holders:
The payment will be made directly to the foreign
depositary bank -- Bank of New York -- which will forward
it to the entitled shareholders.
2. Other shareholders:
-- Shareholders who are Unibanco's registered account
holders:
The payment will be made by means of credit in the
respective bank accounts.
-- Shareholders who hold bank accounts in other banks,
that have already provided Unibanco with the name of
the bank, its branch and bank account numbers:
The payment will be made by means of eletronic transfer
(DOC/ TED), according to the respective amounts.
-- Shareholders whose shares are deposited in the Sao
Paulo Stock Exhange's custody:
The payment will be made directly to the Sao Paulo
Stock Exchange, which will forward the amounts to the
entitled shareholders, by means of the depositary
brokers.
-- Shareholders for whom the above-mentioned situations
are not applicable:
The payment will be made at any Unibanco's branch at
their convenience upon presentation of Identity Card
and Tax Enrollment Card. In case the amounts need to
be withdrawawn by a third party, it will be requested,
in addition of certified copies of the Identity Card
and Tax Enrollment Card of the owner of the amounts,
the presentation of a power of attorney granted by a
public instrument in a term that is less than one
month ago, with specific powers.
-- Shareholders who hold bearer share certificates which
still have not been converted to the book-entry system:
The payment will be made upon delivery of the
respective certificates for mandatory conversion.
Assistance to the conversion will be provided by the
company's Shareholders Assistance department, where relevant
shareholders will attend and present the respective
certificates, as well as the Identity Card, Tax Enrollment
Card and an adequate proof of the shareholder's address.
The shareholders assistance department can be reached at:
Avenida Eusebio Matoso, 1,375
6th floor, Butanta
Sao Paulo, Brazil
For all other locations, assistance will be made at
Unibanco's branches.
As per the approved proposals in Brazil, Dec. 27, 2006, will be considered
as "Record Date" for the purpose of determining the right to receive the
payment of interest on capital stock, on Jan. 31, 2007. Unibanco's and
Unibanco Holdings' shares and Units were traded ex-interest on capital
stock from
Dec. 28, 2006, and on.
In the United States of America, Jan. 2, 2007, will be considered as
"Record Date" for the purpose of attending the obligation assumed by the
GDS program maintained by the companies. The GDSs were traded ex-interest
on capital stock from Dec. 28, 2006, and on.
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.
===========================
C A Y M A N I S L A N D S
===========================
ADASTRA DIVERSIFIED: Final Shareholders Meeting Is on Jan. 11
-------------------------------------------------------------
Adastra Diversified Fund's final shareholders meeting will be at 10:00
a.m. on Jan. 11, 2007, at:
Kinetic Partners Cayman LLP
Strathvale House, 90 North Church Street
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Geoffrey Varga
Attn: Bernadette Bailey-Lewis
Kinetic Partners Cayman LLP
P.O. Box 10387
Grand Cayman, Cayman Islands
Tel: (345) 623 9900
Fax: (345) 623 0007
ADASTRA (MASTER): Final General Meeting Is Set for Jan. 11
----------------------------------------------------------
Adastra Diversified Master Fund's final shareholders meeting will be at
9:30 a.m. on Jan. 11, 2007, at:
Kinetic Partners Cayman LLP
Strathvale House, 90 North Church Street
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Geoffry Varga
Attn: Bernadette Bailey-Lewis
Kinetic Partners Cayman LLP
PO Box 10387, Grand Cayman KY1-1004
Cayman Islands
Tel: (345) 623 9900
Fax: (345) 623 0007
APPLE BLOSSOM: Shareholders to Convene for Jan. 11 Final Meeting
----------------------------------------------------------------
Apple Blossom Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Cititrust (Cayman) Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
Cititrust(Cayman) Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
ARANCUS LTD: Final Shareholders Meeting Is Set for Jan. 11
----------------------------------------------------------
Arancus Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Cititrust (Cayman) Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170
Grand Cayman, Cayman Islands
ASPEN CREEK: Liquidator to Present Wind Up Accounts on Jan. 11
--------------------------------------------------------------
Aspen Creek Holdings Ltd.'s final shareholders meeting will be on Jan. 11,
2007, at:
Teo Pok Zin
6 Battery Road
#18-03 049909, Singapore
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Richard D. Fear
Charles Adams, Ritchie & Duckworth
P.O. Box 709GT, Zephyr House
Mary Street, George Town
Grand Cayman, Cayman Islands
Tel: 949-4544
Fax: 949-8460
CITICO INVESTMENT: Final Shareholders Meeting Is Set for Jan. 11
----------------------------------------------------------------
Citico Investment Co. Ltd.'s final shareholders meeting will be on Jan.
11, 2007, at:
Cititrust Cayman) Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170
Grand Cayman, Cayman Islands
CO-INVESTMENT: Deadline for Proofs of Claim Filing Is on Jan. 11
----------------------------------------------------------------
Co-Investment Ltd. II (M-TEL)'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:
Cititrust (Bahamas) Ltd.
P.O. Box N-1576, Citibank Building
Thompson Blvd, Nassau, Bahamas
Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Co-Investment's shareholders agreed on Nov. 16, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004
Revision) of the Cayman Islands.
CRABTREE LTD: Invites Shareholders for Final Meeting on Jan. 11
---------------------------------------------------------------
Crabtree Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Cititrust (Cayman) Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170
Grand Cayman, Cayman Islands
DALTON VIEW: Shareholders to Gather for Jan. 11 Final Meeting
-------------------------------------------------------------
Dalton View International Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Smith Barney Private Trust Co. Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman
KY1-1102 Cayman Islands
FAIRFIELD DOVER: Last Day for Proofs of Claim Filing Is Jan. 11
---------------------------------------------------------------
Fairfield Dover Fund Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:
Sophia A. Dilbert
Chris Humphries
c/o Stuarts Walker Hersant, Attorneys-at-Law
P.O. Box 2510, Cayman Financial Centre
36a Dr. Roy's Drive, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Fairfield Dover's shareholders agreed on Dec. 1, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004
Revision) of the Cayman Islands.
Parties-in-interest may contact:
Neil Gray
P.O. Box 2510, Cayman Financial Centre
36a Dr. Roy's Drive, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 8455
Fax: (345) 949 8499
GOLDEN KEY: Invites Sharerholders for Jan. 11 Final Meeting
-----------------------------------------------------------
Golden Key Co. Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Cititrust (Cayman) Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman
KY1-1102, Cayman Islands
GOLDRIVER INVESTMENTS: Final General Meeting Is on Jan. 11
----------------------------------------------------------
Golden Investments Ltd.'s final shareholders meeting will be on Jan. 11,
2007, at:
Smith Barney Private Trust Co. Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman
KY1-1102, Cayman Islands
GRAND DYNAMICS: Calls Shareholders for Final Meeting on Jan. 11
---------------------------------------------------------------
Grand Dynamics Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Cititrust (Cayman)Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman
KY1-1102 Cayman Islands
LQ GOLFERS: Final Shareholders Meeting Is Set for Jan. 11
---------------------------------------------------------
LQ Golfers Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Cititrust (Cayman) Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman
KY1-1102, Cayman Islands
MEMBERSHIP SERIES: Sets Final Shareholders Meeting on Jan. 11
-------------------------------------------------------------
Membership Series II Corp.'s final shareholders meeting will be at 10:00
a.m. on Jan. 11, 2007, at:
BNP Paribas Bank & Trust Cayman Ltd.
3rd Floor Royal Bank House
Shedden Road, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Ellen Christian
c/o BNP Paribas Bank & Trust Cayman Ltd.
3rd Floor Royal Bank House
Shedden Road, George Town
Grand Cayman, Cayman Islands
Tel: 345 945 9208
Fax: 345 945 9210
MITSUBA LTD: Liquidator to Present Wind Up Accounts on Jan. 11
--------------------------------------------------------------
Mitsuba Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Cititrust (Cayman)Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman
KY1-1102, Cayman Islands
REFLET LTD: Shareholders to Convene for Final Meeting on Jan. 11
----------------------------------------------------------------
Reflet Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Cititrust (Cayman)Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman
KY1-1102 Cayman Islands
REMBRANDT ASSET: Final Shareholders Meeting Is Set for Jan. 11
--------------------------------------------------------------
Rembrandt Asset Co. Enterprises Ltd.'s final shareholders meeting will on
Jan. 11, 2007, at:
Maples Finance Ltd.
Queensgate House, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidators can be reached at:
Carrie Bunton
Joshua Grant
Maples Finance Ltd.
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
REMBRANDT RFC: Shareholders to Gather for Jan. 11 Final Meeting
---------------------------------------------------------------
Rembrandt RFC Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:
Maples Finance Ltd.
Queensgate House, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidators can be reached at:
Carrie Bunton
Joshua Grant
Maples Finance Ltd.
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
SAILWIND INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 11
----------------------------------------------------------------
Sailwind Investments Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, to the company's liquidators:
Buchanan Ltd.
P.O. Box 1170
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sailwind Investments' shareholders agreed on Sept. 10, 2006, for the
company's voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Timothy Haddleton
P.O. Box 1170
Grand Cayman, Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
SAILWIND INVESTMENTS: Last Shareholders Meeting Is on Jan. 11
-------------------------------------------------------------
Sailwind Investments Ltd.'s final shareholders meeting will be
on Jan. 11, 2007, at:
Smith Barney Private Trust Company Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman
KY1-1102, Cayman Islands
SEYMOUR HOLDINGS: Proofs of Claim Filing Is Until Jan. 11
---------------------------------------------------------
Seymour Holdings Ltd.'s creditors are required to submit proofs of claim
by Jan. 11, to the company's liquidators:
Buchanan Ltd.
P.O. Box 1170
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Seymour Holdings' shareholders agreed on Nov. 30, 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
SEYMOUR HOLDINGS: Last Shareholders Meeting Is Set for Jan. 11
--------------------------------------------------------------
Seymour Holdings Ltd.'s final shareholders meeting will be
on Jan. 11, 2007, at:
Cititrust (Cayman) Ltd.
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman
KY1-1102 Cayman Islands
SIRIUS ALPHA: Deadline for Proofs of Claim Filing Is Jan. 11
------------------------------------------------------------
Sirius Alpha Fund's creditors are required to submit proofs of claim by
Jan. 11, 2007, to the company's liquidators:
Jan Neveril
Richard Gordon
Maples Finance Ltd
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sirius Alpha's shareholders agreed on Nov. 30, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004
Revision) of the Cayman Islands.
STRATEGIC INFLATION: Proofs of Claim Must be Filed by Jan. 11
-------------------------------------------------------------
Strategic Inflation Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:
Cititrust (Bahamas) Ltd.
P.O. Box N-1576, Citibank Building
Thompson Blvd, Nassau, Bahamas
Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Strategic Inflation's shareholders agreed on Nov. 16, 2006, for the
company's voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.
SUNDANCE INVESTMENT: Last Day for Claims Filing Is on Jan. 11
-------------------------------------------------------------
Sundance Investment Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2006, to the company's liquidator:
Buchanan Ltd.
P.O. Box 1170
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sundance Investments' shareholders agreed on Nov. 30, 2006, for the
company's voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Timothy Haddleton
P.O. Box 1170
Grand Cayman, Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
TRIANGLE INVESTMENT: Filing of Proofs of Claim Is Until Jan. 11
---------------------------------------------------------------
Triangle Investment Holdings Inc.'s creditors are required to submit
proofs of claim by Jan. 11, 2007, to the company's liquidators:
Dianne Scott
Emile Small
Maples Finance Ltd.
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Triangle Investment's shareholders agreed on Nov. 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:
Richard Gordon
Maples Finance Ltd
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
=========
C H I L E
=========
AES CORP: Joins Electric Drive Transportation Association Board
---------------------------------------------------------------
The AES Corp. has joined the Electric Drive Transportation Association or
EDTA, and Robert Hemphill, Executive Vice President of AES, will serve as
AES' representative on the EDTA Board of Directors. EDTA is the industry
association representing battery, hybrid and fuel cell transportation
technologies and supporting infrastructure.
AES joins four energy companies on the EDTA Board, which also includes
auto manufacturers, component suppliers, and other industry organizations.
"AES is committed to meeting a growing market need for alternative energy
resources and technologies," said Robert Hemphill. "We see electric drive
as a practical way to meet our transportation needs while also supporting
the environment. We are pleased to join the Board of EDTA and to work
with all of EDTA's members to support the use of electric transportation."
"Electric drive technology is an indispensable part of the effort to
create a secure and sustainable energy future," said EDTA President Brian
Wynne. "AES' leadership on the Board will accelerate EDTA's efforts in
Washington, DC and throughout our industry."
AES plans to invest in excess of US$1 billion over the next three years in
the alternative energy sector, including power wind generation, global
climate change and liquefied natural gas. Through its global climate
change business, AES is targeting the production of up to 40 million
tonnes per year of emission offset credits by 2012.
About EDTA
EDTA is the preeminent U.S. industry association dedicated to the
promotion of electric drive as the best means to achieve the highly
efficient and clean use of secure energy in the transportation sector. As
a unified voice for the electric drive industry, EDTA's membership
includes a diverse representation of vehicle and equipment manufacturers,
energy providers, component suppliers and end users. EDTA supports the
sustainable commercialization of all electric drive transportation
technologies by providing in-depth information, education, industry
networking, public policy advocacy and international conferences and
exhibitions.
About AES Corp.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.
AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela. Fuels include biomass, diesel, coal, gas and hydro.
The group also pursues business development activities in the
region. AES has been in the region since May 1993, when it
acquired the CTSN power plant in Argentina.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology. Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.
CONSTELLATION BRANDS: Posts US$1.5B Sales for Qtr. Ended Nov. 30
----------------------------------------------------------------
Constellation Brands, Inc., reported record net sales of US$1.5 billion
for the quarter ended Nov. 30, 2006. Net sales were up 18% over prior
year, primarily due to the June 5, 2006, acquisition of Vincor
International Inc., and from growth in the base business. Branded
business net sales grew 18%. This increase was due to the addition of
Vincor and four% growth for branded business organic net sales on a
constant currency basis.
"Strong imported beer performance, growth from branded wine in North
America, and the addition of Vincor generated solid results for the
quarter," said Richard Sands, Constellation Brands chairman and chief
executive officer. "We continue to be very optimistic about our
portfolio's long-term growth potential, although our third quarter results
reflect ongoing softness in our U.K. branded wine business as very
challenging market conditions persist."
Third Quarter 2007 Financial Highlights
(in millions, except per share data)
Reported Change Comparable Change
Operating
income US$236 +7% US$279 +15%
Operating
margin 15.7% -180 bps 18.6% -50 bps
Net income US$108 -1% US$139 +13%
Diluted EPS US$0.45 -2% US$0.58 +12%
Net Sales Commentary
Branded wine net sales growth reflects the addition of Vincor and a 1%
decrease in branded wine organic net sales on a constant currency basis.
Organic growth of branded wine for North America was more than offset by a
decrease in Europe.
Net sales of branded wine for North America increased 29% due to the
Vincor acquisition and four% growth in the base business.
Branded wine net sales for Australia/New Zealand increased nine% due to
Vincor and a decrease of two% in the base business. Net sales of branded
wine for Europe increased four% (negative three% on a constant currency
basis) reflecting the addition of Vincor and a decrease of nine% in the
base business (negative 16% on a constant currency basis).
The decrease in Europe was primarily in the U.K., reflecting lower volumes
and the impact of the large retailers benefiting from a highly competitive
environment, particularly given the availability of low cost bulk
Australian wine. Additionally, competitive conditions have not allowed
the annual U.K. duty increase to be passed on to retailers. The company
believes this situation is unlikely to change in the near term, and
Constellation continues to focus on increasing its operating efficiencies
in this intensely competitive market.
There are signs that the industry could see a firming of the Australian
bulk wine market. In Australia, ongoing drought and late spring frost
could reduce the wine grape harvest by approximately 15 to 25% in 2007
according to industry projections, versus the large 2006 harvest. The
effects of ongoing drought conditions may also impact the size of the 2008
harvest. Significant reductions in the 2007 and 2008 harvests could
impact the oversupply and may result in firming prices for Australian bulk
wine.
Organic net sales for wholesale and other increased 6% on a constant
currency basis, primarily from growth in the company's U.K. wholesale
business.
The 16% increase in imported beers net sales was primarily due to volume
growth in Constellation's Mexican beer portfolio, which includes:
-- Corona Extra,
-- Corona Light,
-- Pacifico,
-- Modelo Especial and
-- Negra Modelo,
as well as growth in the St. Pauli Girl brand.
"Constellation's imported beer business delivered strong third quarter
growth as consumers continued to trade up in the category, and both the
bottle supply and inventory levels for Corona Extra and Corona Light
improved during the quarter," stated Mr. Sands. "Crown Imports LLC, the
joint venture formed by Constellation Brands and Grupo Modelo to import
and market beer in the United States and Guam, commenced operations on
Jan. 2, 2007, and the transition to a single importer and marketer is
progressing as planned."
Total spirits net sales increased four% for third quarter 2007.
Investments behind the company's premium spirits brands helped drive a 6%
increase in branded spirits, while contract production services decreased
7%.
"We continue to build our premium spirits portfolio with focus on our
investment brands including Effen Vodka, Cocktails by Jenn and Ridgemont
Reserve 1792 bourbon, and priority growth brands such as Black Velvet
Canadian whisky, Meukow cognac and Chi-Chi's prepared cocktails," said Mr.
Sands.
Operating Income, Net Income, Diluted EPS Commentary
For third quarter 2007, operating income increased primarily due to the
acquisition of Vincor, as well as growth in the base business. The
company incurred US$4.4 million of stock-based compensation expense for
third quarter 2007 related to the company's March 1, 2006, adoption of
Statement of Financial Accounting Standards No. 123(R), "Share-Based
Payment". The recognition of stock compensation expense reduced operating
income growth by approximately two percentage points. For the quarter,
the company also recorded approximately US$1.0 million for its share of
start-up and transition expenses related to building out the
infrastructure in the eastern United States for Crown Imports LLC joint
venture.
Wines segment operating margin decreased 70 basis points. This is
primarily due to competitive U.K. market conditions that have made it
difficult for the company to pass along the annual duty increase and the
impact of lower U.K. sales on fixed cost absorption. The impact of these
factors was somewhat offset by synergies and mix benefit from the Vincor
acquisition. Beers and spirits segment operating margin declined 140
basis points for the quarter, primarily due to higher transportation costs
for imported beers, increased material costs for spirits and higher
spending behind premium spirits.
Interest expense increased 52% to US$73.1 million for third quarter 2007,
primarily due to the financing of the Vincor acquisition and higher
average interest rates. The reported effective tax rate for third quarter
2007 was 37.7% compared with 39.4% for third quarter 2006. The comparable
basis effective tax rate was 36.1% for third quarter 2007 versus 39.3% for
the prior year period.
Stock Repurchases
During third quarter 2007, the company purchased approximately 652,000
shares of its class A common stock at an aggregate cost of US$18 million,
or at an average cost of US$27.65 per share. This completes purchases
under the company's previously announced US$100 million share repurchase
program.
"We continue to harvest opportunities from our existing portfolio, new
product development, strategic partnerships and acquisitions," explained
Mr. Sands. "We are evaluating strategic options to address challenges in
the U.K. market and strengthen our long-term position, while we maintain
our focus on improving efficiency. Our commitment to improving upon
Constellation's leadership position in beverage alcohol and creating
shareholder value, while increasing our return on invested capital, is
unwavering. Opportunities such as our acquisition of Vincor expand and
complement Constellation's portfolio breadth and geographic and
distribution scale, and we are pleased with the performance of the Vincor
brands, as well as with the seamless integration of Vincor operations into
Constellation's international footprint. Additionally, we are encouraged
and optimistic about the growth potential for our Crown Imports beer joint
venture in fiscal 2008 and beyond. We believe there continue to be
opportunities to harvest additional long-term growth and value creation,"
concluded Mr. Sands.
Outlook
Primarily due to the increasingly competitive U.K. market conditions, the
company has revised its fiscal 2007 comparable basis diluted EPS outlook
to US$1.65 to US$1.70 from the company's previous estimate of US$1.72 to
US$1.76.
Full-year fiscal 2007 guidance includes these assumptions:
-- Net sales growth: low double digit to low teens;
-- Interest expense: approximately US$265 million;
-- Stock compensation expense: approximately US$18 million;
-- Tax rate: approximately 39.2% on a reported basis, which
includes a provision of 2.3% primarily related to the sale
of Strathmore water and the Fiscal 2007 Wine Plan, or
36.9% on a comparable basis
-- Weighted average diluted shares outstanding: approximately
240 million; and
-- Free cash flow: US$155 - US$175 million.
Based in Fairport, New York, Constellation Brands, Inc.
(NYSE:STZ, ASX:CBR) -- http://www.cbrands.com/-- produces and
markets beverage alcohol brands with a broad portfolio across
the wine, spirits and imported beer categories. Well-known
brands in Constellation's portfolio include: Almaden, Arbor
Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Nobilo,
Kim Crawford, Alice White, Ruffino, Kumala, Robert Mondavi
Private Selection, Rex Goliath, Toasted Head, Blackstone,
Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin,
Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells,
Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, Paul Masson
Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve
1792, Effen Vodka, Corona Extra, Corona Light, Pacifico, Modelo
Especial, Negra Modelo, St. Pauli Girl, Tsingtao. One of
Constellation Brands wine and grape processing facilities is
located in Casablanca, Chile.
* * *
As reported in the Troubled Company Reporter on Aug. 14, 2006,
Moody's Investors Service assigned a (P)Ba2 rating to
Constellation Brands, Inc.'s new shelf and concurrently, a Ba2
rating to Constellation's new US$500 million senior unsecured
note, due 2016. Constellation's existing ratings are not
affected by these actions, and have been affirmed. The ratings
outlook remains negative.
As reported in the Troubled Company Reporter on Sept. 26, 2006
Moody's Investors Service's, in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. beverage company sector,
affirmed its Ba2 Corporate Family Rating for Constellation
Brands Inc., and downgraded its Ba3 probability-of-default
rating to B1. The rating agency also assigned its LGD6 loss-
given-default ratings on the Company's US$250 million 8.125%
Senior Subordinated Notes due Jan. 15, 2012, suggesting
noteholders will experience a 95% loss in the event of a
default.
GOODYEAR TIRE: Fitch Affirms B Issuer Default Rating
----------------------------------------------------
Fitch Ratings has affirmed ratings for The Goodyear Tire & Rubber Company
and removed the ratings from Rating Watch Negative. The ratings were
placed on Rating Watch Negative on Oct. 18, 2006, when the company
announced a US$975 million draw down of its bank revolver. Goodyear's debt
and recovery ratings are as follows:
-- Issuer Default Rating (IDR) 'B';
-- US$1.5 billion first lien credit facility 'BB/RR1';
-- US$1.2 billion second lien term loan 'BB/RR1';
-- US$300 million third lien term loan 'B/RR4';
-- US$650 million third lien senior secured notes 'B/RR4';and
-- Senior unsecured debt 'CCC+/RR6'.
Goodyear Dunlop Tires Europe BV:
-- EUR505 million European secured credit
facilities 'BB/RR1'.
The Rating Outlook is Negative.
The removal of Goodyear's ratings from Rating Watch Negative follows the
ratification of a new union contract by the United Steelworkers on Dec.
29, 2006. The new contract runs for three years and covers approximately
12,600 employees at 12 tire and engineered products plants in the United
States who had been on strike since Oct. 5, 2006. A separate contract
covering workers in Canada has also been approved.
The Negative Rating Outlook reflects concerns about weak operating results
and higher levels of debt associated with costs of the strike and the new
contract. Prior to October when Fitch placed the ratings on Negative
Watch, the Rating Outlook had been Stable. During the strike, Goodyear
borrowed US$975 million under its bank revolver and issued US$1 billion of
senior unsecured notes to support its liquidity and to replace US$515
million of debt scheduled to mature by March 2007.
On a pro forma basis, proceeds from the new debt increased Goodyear's cash
balances from US$1.3 billion at Sept. 30, 2006, to approximately US$2.7
billion. This amount is adjusted to exclude cash designated for the
US$515 million of near-term debt maturities and does not reflect the
impact of strike-related costs that Goodyear previously estimated at up to
US$35 million per week.
Goodyear's cash balances would be available to fund a $1 billion Voluntary
Employees' Beneficiary Association (VEBA) trust to be implemented under
the new master contract. The VEBA trust will be funded with US$700
million in cash and US$300 million in cash or common stock at the
company's option. Goodyear will transfer to the trust all USW retiree
medical obligations, thereby reducing its projected benefit obligation for
post-retirement benefits by more than half. It expects the VEBA trust
arrangement to improve cash flows related to these benefits by US$145
million annually.
Goodyear's operating results and cash flow have been pressured by high raw
material costs and by declining tire volumes in North America. The
company is addressing these trends through better pricing and by
transitioning toward a more favorable product mix. Volume declines in
original equipment tires reflect lower vehicle production, while lower
volumes for consumer replacement tire volumes include the impact of weaker
demand as well as Goodyear's decision to exit certain segments of the
low-margin private label tire business. The planned closure of the Tyler
Texas plant after 2007, along with three other announced closures, should
allow Goodyear to reach its targeted capacity reduction for private label
tires and support its focus on higher-margin premium tires.
The Rating Outlook could eventually be changed to Stable once Goodyear
returns to normal operations and begins to realize expected cost
reductions. Any upward revisions in the ratings and/or Outlook over the
longer term would also depend on the company's ability to generate
sufficient cash flow to reduce debt and leverage and its ability to
maintain its competitive position. Cash flow should benefit from
Goodyear's expected cost savings that were announced concurrently with the
new labor union agreement. However, ongoing cash requirements for capital
expenditures and pension contributions are substantial, and Goodyear's
capacity to reduce debt may be limited until market conditions improve and
Goodyear makes further progress in realizing projected cost savings.
The company estimates that contributions to funded pension plans will
total US$550 million to US$575 million in 2006, US$550 million to US$600
million in 2007 and US$200 million to US$250 million in 2008. These cash
requirements will be partly offset by a reduction in OPEB cash outflows
estimated by Goodyear at US$145 million annually.
Goodyear's ongoing cost reduction efforts will be facilitated by its new
agreement with the United Steelworkers. The company has scheduled a
conference call on Jan. 9 in which it will address specifics of the new
contract. Under Goodyear's cost reduction plan initiated in 2005, the
company targeted cost savings in excess of US$1 billion by 2008. By
comparison, the company estimates the new labor contract will support
savings, relative to costs in 2006, of US$610 million through 2009. The
contract provides for a lower wage structure for new hires and more
flexibility in making productivity improvements.
These benefits should support stronger operating results, but Goodyear
still faces a highly competitive environment in which its North American
cost structure may leave it at a disadvantage relative to its peers
despite expected cost reductions. The new contract provides more job
security for union workers and provides for the closure of the Tyler,
Texas plant at the end of 2007. Goodyear will be required to make capital
investments in United Steelworkers plants of at least US$550 million
during the life of the labor contract.
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear Tire has marketing operations in almost
every country around the world including Chile, Colombia and
Guatemala in Latin America. Goodyear employs more than 80,000
people worldwide.
===============
C O L O M B I A
===============
BANCOLOMBIA: Will Decide by Feb. on How to Pay Banagricola
----------------------------------------------------------
Jaime Velasquez, Bancolombia's financial vice president, told Business
News Americas that the bank expects to reach a final decision by the end
of February on how to pay Conglomerado Financiero Internacional
Banagricola SA, after signing an accord to acquire the latter's shares.
As reported in the Troubled Company Reporter-Latin America on Dec. 27,
2006, Bancolombia reached a definitive agreement with a group of
controlling shareholders, to acquire its 52.9% controlling interest and up
to 100% of the outstanding shares of Banagricola and its subsidiaries for
a total consideration of COP2,003,600 million in cash. Bancolombia would
acquire Banagricola through its wholly owned subsidiary, Bancolombia
Panama. The transaction will include all of Banagricola's subsidiaries,
including the commercial and retail banking, insurance, pension funds and
brokerage activities.
Mr. Velasquez told BNamericas, "We expect to pick the bank or banks that
will advise us in the process by Jan. 20 and then take another month or so
to come up with a final financing scheme."
Bancolombia's 11.5% capital ration wouldn't drop below 11% even in the
worst case scenario if it funds the acquisition through its COP1-trillion
tier 2 subordinated bond issue, BNamericas says, citing Mr. Velasquez.
Mr. Velasquez commented to BNamericas, "We have plenty of room to finance
the acquisition through tier 2 subordinated debt. However, we may
consider tier 1 capital or even equity funding. We are not ruling out any
option."
According to BNamericas, Fitch Ratings placed Bancolombia on watch
negative, while Moody's Investors Service placed the bank on review for
possible downgrade, due to concerns about the potential impact the move
would have on the bank's capital adequacy ratio.
Fitch Ratings and Moody's said that a possible cause of consolidated
capital deterioration is the potentially hefty goodwill generated in the
transaction, BNamericas notes.
Mr. Velasquez told BNamericas, "It is only natural that credit agencies
set their alarms after an acquisition like this is announced and this is
also helpful for us."
The report says that Bancolombia's tier 1 capital ratio stand at 8.82% of
the bank's consolidated capital, while its tier 2 capital ratio stand at
2.65%.
Bancolombia told BNamericas that it hopes to conclude the acquisition in
the second quarter of 2007.
Headquartered in Medellin, Colombia, Bancolombia SA --
http://www.bancolombia.com.co-- operates as a commercial bank.
It organizes its activities into three primary divisions: Retail
and Small and Medium-Sized Enterprises (SMEs) Banking, Corporate
Banking, and Mortgage & Building Banking. The bank offers
traditional banking products and services, like checking
accounts, saving accounts, time deposits, lending (including
overdraft facilities), mortgage loans, personal and corporate
loans, credit cards and cash management services. It also
offers non-traditional products and services, like pension
banking, bancassurances, international transfers, fiduciary and
trust services, brokerage services and investment banking.
Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.
* * *
The Troubled Company Reporter-Latin America reported on
April 28, 2006, that Moody's Investors Service upgraded
Bancolombia's bank financial strength ratings to D+ from D with
a stable outlook.
Moody's added that the action concludes the review for possible
upgrade that was announced on Oct. 13, 2005. Moreover,
Bancolombia's Ba3/Not Prime long-and short-term foreign currency
deposit ratings were affirmed. Moody's said the outlook on all
ratings is stable.
ECOPETROL: Secures 5.78% Stake in State Telecom Company
-------------------------------------------------------
Ecopetrol, the state-run oil firm of Colombia, has acquired a 5.78% stake
in ISA, the state transmission and telecommunications company, as part of
a share-swap deal, Business News Americas reports, citing an official of
ISA.
Business News Americas relates that under the agreement, ISA increased its
stake in Transelca, its transmission unit, to 99.99%.
The official told BNamericas, "The negotiations have been completed and
ISA and Transelca have notified Superfinanciera (the nation's securities
regulator)."
Ecopetrol said in a filing with Superfinanciera that ISA acquired about
633 million shares that Ecopetrol held in Transelca. The shares are
equivalent to roughly 35% of Transelca.
Ecopetrol acquired 58.9 million shares in ISA -- equivalent to 5.78% of
the latter -- as part of the deal, BNamericas states.
Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government. The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products. Ecopetrol is Latin America's
fourth-largest integrated-oil concern. Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.
On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol SA to Positive from Stable. This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia. Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.
===================
C O S T A R I C A
===================
DENNY'S CORP: Reports December Same-Store Sales
-----------------------------------------------
Denny's Corp. reported same-store sales for its company-owned Denny's
restaurants during the five-week month ended
Dec. 27, 2006, compared with the related period in fiscal year 2005.
Sales: Dec. 2006 4Q-2006 2006
Same-Store Sales 1.0% 1.6% 2.5%
Guest Check Average 2.2% 1.9% 4.4%
Guest Counts (1.2%) (0.3%) (1.8%)
Restaurant Counts: 12/27/06 12/28/05
Company-Owned 521 543
Franchised and Licensed 1,024 1,035
1,545 1,578
As part of a plan to strengthen the company’s restaurant portfolio,
Denny’s opened two new company-owned restaurants in December, one in
Fresno, California and the other in Orlando, Florida. Also as part of
this long-term strategy, Denny’s closed 16 underperforming company
restaurants in the fourth quarter.
During 2006, Denny's reduced its outstanding indebtedness by approximately
US$100 million, or 18%, including US$16 million in prepayments in the
fourth quarter through a combination of asset sale proceeds and operating
cash flow.
Beginning with the first quarter of Denny's 2007 fiscal year, the company
plans to release same-store sales information on a quarterly basis only.
Denny's expects to release same-store sales results for the first quarter
of 2007 in early April.
F. Mark Wolfinger, Executive Vice President, Growth Initiatives and Chief
Financial Officer, stated, "Based on Denny's positive same store sales
results over the last four years, the company's strengthened balance sheet
and improved cash flow, we believe the prudent decision is to discontinue
the reporting of monthly same-store sales at this time. We do not believe
that monthly sales results truly assess the ongoing progress Denny's is
making in its efforts to increase shareholder value over the long-term."
On Feb. 15, 2007, Denny's expects to release results for its fourth
quarter and year ended Dec. 27, 2006, as well as provide its strategic and
operational outlook for 2007.
Headquartered in Spartanburg, South Carolina, Denny's Corp.
-- http://www.dennys.com/-- is America's largest full-service
family restaurant chain, consisting of 543 company-owned units
and 1,035 franchised and licensed units, with operations in the
United States, Canada, Costa Rica, Guam, Mexico, Puerto Rico,
and New Zealand .
* * *
On Nov 22, 2006, Moody's Investors Service assigned Denny's
Inc.'s proposed US$350 million senior secured credit facility
consisting of a US$50 million revolver, a US$260 million term
loan B and a US$40 million synthetic letter of credit facility.
===================================
D O M I N I C A N R E P U B L I C
===================================
ANIXTER INT'L: May Repurchase Up to 1 Million Common Shares
-----------------------------------------------------------
Anixter International Inc. disclosed that under a previously authorized
share repurchase program it may repurchase up to 1 million of its
outstanding common shares with the exact volume and timing dependent on
market conditions.
Anixter currently has approximately 39.5 million shares outstanding.
Headquartered in Glenview, Illinois, Anixter International, is
the world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts to original
equipment manufacturers. Anixter has physical presence in 45
countries and has over 5,000,000 square feet of warehouse space.
For its Latin American operations, it has offices in Mexico,
the Dominican Republic, Costa Rica, Puerto Rico, Venezuela,
Colombia, Peru, Brazil, Argentina and Chile.
* * *
Fitch Ratings affirmed on Sept. 9, 2006, these ratings for
Anixter International Inc. and its wholly owned operating
subsidiary, Anixter Inc. aka AI:
Anixter
-- Issuer Default Rating: 'BB+';
-- Senior unsecured debt 'BB-'.
AI
-- Issuer Default Rating: 'BB+';
-- Senior unsecured notes 'BB+'; and
-- Senior unsecured bank credit facility at 'BB+'.
=================
G U A T E M A L A
=================
GOODYEAR TIRE: To Discontinue Tire Production at Quebec Facility
----------------------------------------------------------------
The Goodyear Tire & Rubber Co. plans to discontinue tire production at its
facility in Valleyfield, Quebec. The company expects to be substantially
complete with a transition of the Valleyfield facility to a materials
mixing center by the end of the second quarter of 2007.
There are approximately 1,000 hourly and salaried associates at the
facility. The mixing center is expected to employ approximately 200
associates.
The reduction in both capacity and labor in Valleyfield is related to the
company's ongoing global strategy to reduce excess high cost manufacturing
capacity.
"In today's intensely competitive and increasingly global business
environment, we face some very difficult choices," said Jon Rich,
president of Goodyear's North American Tire business. "The decision to
discontinue tire production at Valleyfield is one of those necessary steps
to make Goodyear more competitive. This decision does not reflect on the
commitment or performance of our Valleyfield associates."
The elimination of tire production in Valleyfield will reduce Goodyear's
excess high cost tire manufacturing capacity by an additional 7 million
units. This brings total reductions under Goodyear's four-point cost
savings plan to 21 million units compared with original targets of 15 to
20 million units by 2008.
This action will result in total charges estimated to be between US$115
million and US$120 million (between US$165 and US$170 million after tax)
for restructuring and accelerated depreciation, of which an expected US$40
million to US$45 million is cash. The charges associated with the
intended action are expected to be between US$70 million to US$75 million
(US$120 million to US$125 million after-tax) in the fourth quarter of 2006
with the balance of the charges impacting 2007. When complete, the action
is expected to generate annual cost savings of approximately $40 million.
This initiative also supports Goodyear's four-point cost savings plan goal
of reducing costs by between US$100 million and US$150 million. With the
already announced closures of tire plants in:
-- Washington, United Kingdom;
-- Upper Hutt, New Zealand; and
-- Tyler, Texas,
the Valleyfield announcement yields a total of US$125 million in projected
annual savings.
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear Tire has marketing operations in almost
every country around the world including Chile, Colombia,
Guatemala and Peru in Latin America. Goodyear employs more than
80,000 people worldwide.
* * *
As reported in the Troubled Company Reporter on Jan. 5, 2006, Standard &
Poor's Ratings Services affirmed its 'B+' corporate credit and other
ratings on Goodyear Tire & Rubber Co. and removed them from CreditWatch
where they were placed with negative implications on Oct. 16, 2006, as a
result of the labor dispute at several of the company's North American
plants.
===========
M E X I C O
===========
ALASKA AIR: Reports December Passenger Traffic
----------------------------------------------
Alaska Air Group, Inc., reported December passenger traffic for its
subsidiaries, Alaska Airlines and Horizon Air.
Alaska Airlines
Alaska's December traffic increased 2.0% to 1.469 billion revenue
passenger miles from 1.440 billion flown a year earlier. Capacity during
December was 1.957 billion available seat miles, 3.1% higher than the
1.898 billion in December 2005.
The passenger load factor (the percentage of available seats occupied by
fare-paying passengers) for the month was 75.1%, compared with 75.9% in
December 2005. The airline carried 1,412,400 passengers, compared with
1,398,900 in December 2005.
RPMs for the 12-month period totaled 17.822 billion, a 5.4% increase from
the 16.915 billion recorded a year earlier. Capacity for the 12 months
ended December 2006 increased 4.4% to 23.278 billion ASMs, compared with
22.292 billion in 2005.
The passenger load factor for the 12 months of 2006 was 76.6%, compared
with 75.9% in 2005. The airline carried 17,164,500 passengers, compared
with 16,758,900 in 2005.
Horizon Air
Horizon's December traffic decreased 0.6% to 216.0 million RPMs from 217.4
million flown a year earlier. Capacity during December was 298.0 million
ASMs, 2.8% higher than the 289.9 million in December 2005.
The passenger load factor for the month was 72.5%, compared with
75.0% in December 2005. The airline carried 553,500 passengers, compared
with 551,900 in December 2005.
RPMs for the 12-month period totaled 2.692 billion, an 8.8% increase from
the 2.475 billion recorded a year earlier. Capacity for the 12 months
ended December 2006 increased 6.8% to 3.632 billion ASMs, compared with
3.400 billion in 2005.
The passenger load factor for the first 12 months of 2006 was 74.1%,
compared with 72.8% in 2005. The airline carried 6,859,800 passengers,
compared with 6,497,800 in 2005.
Horizon's RPMs, passenger load factor and passengers are reported using
actual December operating data for flights operated as Horizon Air
combined with estimated operating data for Horizon's regional jet service
operated as Frontier JetExpress.
Seattle, Wash.-based Alaska Air Group, Inc. (NYSE: ALK) --
http://alaskaair.com/-- is a holding company with two principal
subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries,
Inc. Alaska operates an all-jet fleet with an average passenger trip
length of 1,009 miles. Alaska principally serves destinations in the
state of Alaska and North/South service between cities in the Western
United States, Canada, and Mexico. Horizon operates jet and turboprop
aircraft with average passenger trip of 382 miles. Horizon serves 40
cities in seven states and six cities in Canada.
* * *
As reported in the Troubled Company Reporter on Nov. 6, 2006, Moody's
Investors Service affirmed the corporate family rating of Alaska Air
Group, Inc. and the Equipment Trust Certificate rating of Alaska Airlines,
Inc. at B1, and changed the outlook to stable from negative.
DANA CORP: Seeks Court Approval to Amend DIP Credit Agreement
-------------------------------------------------------------
Dana Corp. disclosed that in support of its ongoing reorganization and
anticipated emergence from Chapter 11 bankruptcy protection later this
year, the company has filed a motion in the U.S. Bankruptcy Court for the
Southern District of New York, which has jurisdiction over its Chapter 11
bankruptcy proceedings under the caption In re Dana Corporation, et al.,
Case No. 06-10354 (BRL), seeking to amend its US$1.45 billion debtor-in-
possession (DIP) credit agreement. The motion is scheduled to be heard by
the court on Jan. 24, 2007.
Among other things, Dana intends to reduce the amount of its unused
revolving credit facility under the DIP credit agreement to correspond
with changes in its borrowing base. As it continues to sell its non-core
assets, these changes will adjust the structure of Dana's debt facilities
to more closely align with the needs of the business. In order to ensure
that Dana continues to have adequate liquidity notwithstanding such
reduction, Dana is seeking court approval for an increase in the amount
available under its term loan facility from US$700 million to US$900
million, as well as for certain financial covenant modifications and
technical changes to its DIP credit agreement. Citigroup Corporate and
Investment Banking, the administrative agent for the lenders under the DIP
credit agreement, has agreed to underwrite the proposed increase in the
term loan facility.
"While we are pleased with the restructuring progress that Dana has
achieved over the past nine months, especially under challenging market
conditions, the additional funding and financing flexibility that will
result from the proposed amendment position us to complete our
restructuring and emerge from Chapter 11," said Dana Chairman and CEO Mike
Burns. "We are also pleased with the confidence that our DIP agent,
Citigroup, has demonstrated in our reorganization efforts by underwriting
the proposed increase to our DIP facility."
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.
DELTA AIR: Reports Record December 2006 Load Factor
---------------------------------------------------
Delta Air Lines reported record load factor results for December 2006.
Delta's system load factor for December 2006 was a record 77.8%, up 2.5
points from the prior year and the previous December record load factor of
75.3%. Delta also achieved its highest December load factors for its
mainline system (78.3% with a previous high of 75.5% in 2005), mainline
domestic (78.5% with a previous high of 75.4% in 2005) and Delta
Connection system (75.4% with a previous high of 74.3% in 2005).
In addition, Delta reported record load factor results for the full year
2006, achieving its highest annual load factors for its:
-- consolidated system (78.5% with a previous high of 76.5%
in 2005),
-- mainline system (79.0% with a previous high of 77.6% in
2005), and
-- Delta Connection system (76.5% with a previous high of
71.0% in 2005).
For December 2006, system traffic increased 3.5% from December 2005 with a
capacity increase of 0.2%. International traffic in December 2006
increased 26.4% year over year on a 22.9% increase in capacity.
International load factor was 77.8%, up 2.1 points compared with December
2005. Domestic traffic in December 2006 decreased 4.0% year over year, and
capacity decreased 7.3%.
During December 2006, Delta operated its schedule at a 99.0% completion
rate, a 0.6-point improvement compared with December 2005. Delta boarded
8.8 million passengers during December 2006, an increase of 0.1% from
December 2005.
Headquartered in Atlanta, Georgia, Delta Air Lines
-- http://www.delta.com/-- is the world's second-largest airline in terms
of passengers carried and the leading U.S. carrier across the Atlantic,
offering daily flights to 502 destinations in 88 countries on Delta, Song,
Delta Shuttle, the Delta Connection carriers and its worldwide partners.
The Company and 18 affiliates filed for chapter 11 protection on Sept. 14,
2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq.,
at Davis Polk & Wardwell, represents the Debtors in their restructuring
efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the
Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G.
Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the
Official Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S.
Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's
financial advisors. As of June 30, 2005, the Company's balance sheet
showed US$21.5 billion in assets and US$28.5 billion in liabilities.
FOAMEX INTERNATIONAL: Commences Equity Rights Offering
------------------------------------------------------
Foamex International Inc. has commenced its equity rights offering. The
rights offering is being conducted to raise the equity funding necessary
for the company to consummate its chapter 11 plan of reorganization. A
hearing before the United States Bankruptcy Court for the District of
Delaware to consider confirmation of the company's plan of reorganization
is scheduled for Feb. 1, 2007.
Under the rights offering, Foamex is distributing to each holder of record
of its common stock as of the close of business on Dec. 29, 2006, at no
charge, one right for each share of common stock held by such holder on
that date. Each right entitles the holder to purchase an additional 2.506
shares of Foamex common stock at US$2.25 per share. The company is also
distributing to the holder of its Series B preferred stock, at no charge,
one right for each share of Series B preferred stock (which is convertible
into 100 shares of Foamex common stock) held of record as of the close of
business on Dec. 29, 2006. Each right issued to the holder of Series B
preferred stock entitles the holder to purchase an additional 250.6 shares
of Foamex common stock at US$2.25 per share. The rights expire at 5:00
p.m., New York City time, on Jan. 31, 2007, unless the company extends the
exercise period.
The rights offering materials, including a prospectus, were mailed to
eligible record holders of the company's common and Series B preferred
stock on Jan. 4, 2007. Those eligible record holders that hold their
shares through a bank, brokerage firm, or other nominee should receive the
rights offering materials from their bank, broker, or nominee.
A copy of the prospectus relating to the rights offering also may be
obtained from:
Foamex International Inc.
Investor Relations Department
1000 Columbia Avenue
Linwood, Pennsylvania 19061
Tel: (610) 859-3000),
or the U.S. Securities and Exchange Commission's web site at
http://www.sec.gov/
Headquartered in Linwood, Pennsylvania, Foamex International Inc. is
engaged primarily in the manufacturing and distribution of flexible
polyurethane and advanced polymer foam products. As of Jan. 1, 2006, the
company's operations were conducted through its wholly owned subsidiary,
Foamex L.P., and through Foamex Canada Inc., Foamex Latin America, Inc.
and Foamex Asia, Inc., which are wholly owned subsidiaries of Foamex L.P.
The company has five business segments: Foam Products, Carpet Cushion
Products, Automotive Products, Technical Products and Other Products. On
Sept. 19, 2005, (the Petition Date), the company and certain of its
domestic subsidiaries, including Foamex L.P., the company's primary
operating subsidiary (collectively referred to as the Debtors), filed
voluntary petitions for relief under Chapter 11 of the United States
Bankruptcy Code (Bankruptcy Code) in the United States Bankruptcy Court
for the District of Delaware (the Bankruptcy Court). The Latin American
subsidiary is in Mexico.
* * *
As reported in the Troubled Company Reporter on Dec. 8, 2006, Moody's
Investors Service has assigned a B2 corporate family and probability of
default ratings on Foamex L.P. Concurrently, Moody's has assigned a B1
rating to the company's US$425 million first lien senior secured Term Loan
B and a Caa1 rating to its US$190 million second lien senior secured term
loan (expected to be downsized to US$175 million). Moody's said the
ratings outlook is stable.
GEOKINETICS: Launches System for Pre-Stack Depth Migration
----------------------------------------------------------
Geokinetics Inc. and dGB have launched an industry-sponsored consortium to
develop a commercial system for pre-stack depth migration or PSDM and
velocity model building or VMB in dGB's OpendTect environment. This
system is designed to overcome many of the shortcomings of the current
commercially available imaging/velocity model building packages. It is
expected to provide the processors and interpreters with a state of the
art, easy to use, accurate and efficient interactive system that is based
on 3D visualization-style representation of the seismic data.
The consortium is expected to finish its work by Sept. 1, 2007. The
deliverables will be a pre-stack enabled system, with a number of
commercial plugins for VMB, Kirchhoff PSDM, and tomographic inversion.
The entire system will be fully integrated, allowing the user to perform
all the necessary operations within the OpendTect environment. The
modular architecture and Open Source aspect of OpendTect will allow
additional migration algorithms, such as wave equation based ones, to be
easily added. Modern interpretational tools, such as automatic horizon
and fault tracking, salt body detection, and lithofacies and sequence
stratigraphic analysis will also be available.
Included with the sponsorship are licenses to dGB's commercial plugins for
dip-steering and neural network analysis, as well as a proprietary case
study to fully illustrate the use of the system. Current sponsors include
OMV and Gaz de France. The consortium will be open for new sponsors
through first quarter of 2007. A proto-type with many of the
functionalities is currently available for those who may be interested to
join.
Headquartered in Houston, Texas, Geokinetics Inc. is a leading
global leader of seismic acquisition and high-end seismic data
processing and interpretation services to the oil and gas
industry. Geokinetics provides seismic data acquisition
services in North America, South America, Africa, Asia,
Australia and the Middle East. Geokinetics operates in some of
the most challenging locations in the world from the Arctic to
mountainous jungles to the transition zone environments.
* * *
Moody's Investors Service assigned on Dec. 6, 2006, a B3
corporate family rating and probability of default rating to
Geokinetics Inc., and a SGL-3 speculative liquidity rating.
Moody's also assigned a B3, LGD 4 (53%) rating to Geokinetics'
proposed offering of US$100 million second priority senior
secured floating rate notes due 2012. The outlook is stable.
Proceeds from the notes will be used to retire an existing
US$100 million senior loan.
Standard & Poor's Ratings Services also assigned its 'B-'
corporate credit rating to Geokinetics Inc. At the same time,
Standard & Poor's assigned its 'CCC+' rating and '3' recovery
rating to Geokinetics' US$100 million in second lien floating
rate notes.
GRUPO MEXICO: Says Pasta de Conchos Mine Will Remain Closed
-----------------------------------------------------------
A spokesperson of Grupo Mexico SA de CV told Business News Americas that
the firm won't reopen its Pasta de Conchos coal mine in Coahuila.
BNamericas relates that Pasta de Conchos has been closed since an
explosion in the mine trapped and killed about 65 workers in February
2006.
The spokesperson explained to BNamericas, "The mine is totally collapsed.
It's unusable."
Industrial Minera Mexico, a unit of Grupo Mexico that operates Pasta de
Conchos, is still working in the mine to recover the bodies of the 63
miners trapped inside, BNamericas says, citing the spokesperson. Minera
Mexico would continue efforts to recover the bodies as long as possible.
Some MXN292 million has been spent on rescue efforts and about US$6.5
million in community endeavors since the accident, the spokesperson told
BNamericas.
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on Dec. 29,
2006, Fitch Ratings upgraded the local and foreign currency Issuer Default
Rating assigned to Grupo Mexico, SA de C V to 'BB+' from 'BB'. The
Rating Outlook is Stable.
GUESS? INC: Retail Sales Up 14.5% to US$118.4 Mil. in December
--------------------------------------------------------------
Guess?, Inc. reported that total December retail sales for the month ended
Dec. 31, 2006, reached US$118.4 million, an increase of 14.5% from sales
of US$103.4 million for the month ended
Dec. 31, 2005. For the fiscal December 2006 period, sales for stores open
more than one year increased 13.0%. The company noted that fiscal
December 2006 included 36 days compared to 35 days in the December 2005
fiscal period.
Comparable store sales for the December 2006 period based on the NRF
fiscal calendar, which included 35 days in both periods, increased 9.6%.
This increase follows an increase of 17.5% for the December 2005 period.
Sales for the December 2006 period were driven by a larger percentage of
full price sales as compared to the prior-year period.
For the fourth quarter ended Dec. 31, 2006, total retail sales increased
15.8% to US$239.8 million compared to US$207.1 million for the fourth
quarter of 2005. NRF comparable store sales increased 10.8% during the
fourth quarter of 2006.
For the fiscal year ended Dec. 31, 2006, total retail sales increased
17.6% to US$720.5 million compared to US$612.9 million for the prior
fiscal year. NRF comparable store sales increased 12.2% for the 2006 year.
Guess?, Inc., -- http://www.guess.com-- designs, markets,
distributes and licenses a lifestyle collection of contemporary
apparel, accessories and related consumer products. The company
owns and operates retail stores in the United States, Canada and
Mexico. The company also distributes its products through
better department and specialty stores around the world.
* * *
As reported in the Troubled Company Reporter-Latin America on Dec. 8,
2006, Standard & Poor's Ratings Services raised its ratings on Los
Angeles-based specialty apparel retailer Guess? Inc. to 'BB' from 'BB-'.
S&P said the outlook is positive.
HASBRO: Debenture Holders May Convert Share Into Common Stock
-------------------------------------------------------------
Hasbro, Inc., disclosed that, as a result of the company's common stock
closing above US$23.76 per share for at least twenty trading days in the
last thirty trading days of the fourth quarter of 2006, holders of the
company's 2.75% Convertible Senior Debentures due 2021, may elect to
convert their Debentures into shares of Common Stock during the calendar
quarter beginning Jan. 1, 2007, and ending March 31, 2007.
Holders currently have the right to convert their Debentures into Hasbro
Common Stock at the rate of 46.2963 shares per each US$1,000.00 of
principal amount of Debentures. The Debentures can only be converted in
increments of US$1,000.00. Holders will receive a cash payment in lieu of
any fractional shares. This right will be in effect until March 31, 2007.
Should Hasbro's Common Stock close at or above 110% of the then accreted
conversion price (110% of the accreted conversion price is currently
US$23.76 per share), on at least 20 of the last 30 trading days in the
first calendar quarter of 2007, or in any subsequent calendar quarters,
the right of Holders to convert their Debentures into shares of the
company's Common Stock would be in effect for the immediately following
calendar quarter.
Holders will receive notice from The Bank of Nova Scotia Trust company of
New York informing them of the procedure to follow if they wish to convert
any of their Debentures.
Information can also be obtained by contacting:
The Bank of Nova Scotia Trust Company of New York
Attn: Corporate Trust Administration
One Liberty Plaza
New York, NY 10006
Tel: (212) 225-5427
Although the company does not currently have the right to call the
Debentures for redemption, the company will have this right if the closing
price of the Common Stock exceeds 125% of the then accreted conversion
price (125% of the accreted conversion price is currently US$27.00) for at
least twenty trading days in any thirty trading day period. If the
company calls the Debentures it must mail notice to the holders at least
thirty, but not more than sixty, days in advance of the proposed
redemption date. During the period from the giving of this notice to the
proposed redemption date the Holders will have the right to convert their
Debentures into shares of Common Stock (at a current ratio of 46.2963
shares of stock per US$1,000.00 of principal amount).
The company will evaluate the potential cost and benefit of calling the
Debentures if this right arises, but has yet to make a determination as to
whether this would be to the benefit of the company and its shareholders.
The contents of this press release are qualified in their entirety by the
terms of the Debentures as they are sent forth in an Indenture and in the
form of Debenture.
Headquartered in Pawtucket, Rhode Island, Hasbro, Inc. (NYSE: HAS) --
http://www.hasbro.com/-- provides children's and family leisure time
entertainment products and services, including the design, manufacture and
marketing of games and toys ranging from traditional to high-tech. The
company has operations in Australia, France, Hong Kong, and Mexico, among
others.
* * *
Moody's Investors Service affirmed the Baa3 long-term debt rating of
Hasbro, Inc., and changed the ratings outlook to positive from stable to
reflect the expectation for continued-strong operating performance and
cash flows, leading to further debt reduction and credit metric
improvement over the near-to-intermediate-term. Ratings affirmed include
the Baa3 senior unsecured debt rating and the (P)Ba1 rating for
subordinated debt.
HERBALIFE: Expects to Report Higher Sales for Qtr. Ended Dec. 31
----------------------------------------------------------------
Herbalife Ltd. anticipates reporting record net sales between US$482.7 and
US$484.7 million for its fourth quarter ended
Dec. 31, 2006, when it files its annual report on Form 10-K in late
February 2007, reflecting a year-over-year increase between 18.0% and
18.5%. The expected net sales results reflect strong double-digit growth
in the U.S., Mexico and several South American and Southeast Asian
markets.
"Our distributors had a tremendously successful year expanding their
businesses into new markets and more deeply penetrating existing markets,"
said Michael O. Johnson, the company’s chief executive officer. "As a
result, we believe the 2006 goal of exceeding US$3.0 billion in retail
sales has been achieved," he continued.
Based on its expected net sales growth, the company anticipates that
fourth quarter 2006 diluted earnings per share will be within its
previously announced range of US$0.52 to US$0.55, excluding expenses
associated with its realignment for growth initiative.
2007 Guidance
Based upon its preliminary fourth quarter 2006 financial results, the
company is updating its full year 2007 guidance to reflect current
business trends and is also providing first quarter 2007 guidance.
For the full year 2007, the company is reaffirming its previously
announced diluted earnings per share guidance of US$2.40 to US$2.47,
excluding expenses associated with its realignment for growth initiative.
This guidance reflects net sales growth of between 6.0% and 10.0%
(compared with 10.0% to 15.0% initially issued on Nov. 6, 2006), coupled
with improved operating margins and a lower effective tax rate.
The company's outlook for net sales growth in 2007 reflects current
business trends, primarily slower than expected net sales growth in
Mexico. The company expects the adverse impact on overall 2007 net sales
growth from this recent trend in Mexico will be partially offset by net
sales growth in several other countries, primarily the U.S.
The company is also providing first quarter 2007 guidance with expected
net sales growth in the range of between 6.0% and 10.0%, an effective tax
rate between 35.0% and 36.0% and diluted earnings per share guidance in
the range of US$0.50 to US$0.55, excluding expenses associated with its
realignment for growth initiative.
Based in Los Angeles, California, Herbalife Ltd. (NYSE: HLF) --
http://www.herbalife.com/-- is a marketing company that sells
weight-management, nutritional supplements and personal care
products intended to support a healthy lifestyle. Herbalife
products are sold in 62 countries through a network of more than
one million independent distributors. The company supports the
Herbalife Family Foundation -- http://www.herbalifefamily.org/
-- and its Casa Herbalife program to bring good nutrition to
children.
* * *
Standard & Poor's Ratings Services rated Herbalife Ltd.'s long-
term foreign and local issuer credit ratings at BB+.
SWIFT & CO: Reports US$2.47B Net Sales in Quarter Ended Nov. 26
---------------------------------------------------------------
Swift & Co. reported net sales of US$2.47 billion for its fiscal second
quarter ended November 26, 2006, up 6.9% from net sales of US$2.31 billion
in the comparable prior-year period. The company's net sales increase
reflects a 6.3% net sales increase in Swift Beef, a 15.9% net sales
increase in Swift Australia, and a 0.6% net sales increase in Swift Pork.
Swift Australia net sales benefited from a 1.0% increase in the US dollar
to Australian dollar exchange rate compared with the prior-year period.
The company's second-quarter EBITDA was US$32 million, up from US$2
million in the prior-year period. EBITDA improvements in Swift Australia
and Swift Beef accounted for the year-over-year increase.
At the end of the second quarter, Swift & company's borrowing capacity
under its US$550 million revolving credit facility stood at US$266
million. The company ended the second quarter with US$67 million of cash
on hand and US$818 million of total debt outstanding.
"Our operational initiatives are delivering the kinds of improvements we
had planned," said Sam Rovit, Swift & company's president and chief
executive officer. "Our Australian management team was able to capitalize
on both improved cattle supplies and continued strong international
customer demand. Swift Pork's performance continued in line with
historical norms and met our profitability expectations. Finally, we
improved the operational and financial performance of Swift Beef versus
last year despite challenging market conditions in the fall."
Mr. Rovit added, "Operational excellence and financial fitness remain top
priorities for the entire Swift team. Multiple initiatives are currently
underway to improve our operational effectiveness and cost
competitiveness. These initiatives will further assist in our recovery
from recent business disruptions caused by the widely reported government
raids on our production facilities at the beginning of our third quarter."
Swift Beef
Swift Beef's second-quarter net sales increased 6.3% to US$1.43 billion
compared withUS$1.34 billion in the prior-year period. Selling price
increases of 5.2% were accompanied by volume increases of 1.1%.
Swift Beef's second-quarter EBITDA improved to a loss of US$18 million
from a loss of US$30 million in the prior-year period. The EBITDA
improvement resulted from a net sales increase reflecting the selling
price and volume increases noted above, which more than offset higher raw
material costs. EBITDA in the current year was also affected by increases
in freight and packaging costs that were more than offset by reductions in
workers compensation and employee medical costs based on receipt of
updated actuarial reports, as well as reductions in management incentive
accruals and lower utility costs. Selling, general, and administrative
costs were lower year-over-year, principally reflecting reduced
professional fees and the previously mentioned reduction in management
incentive accruals.
Swift Pork
Swift Pork's second-quarter net sales increased 0.6% to US$544 million
compared withUS$541 million in the prior-year period. Average selling
prices increased 1.4% while sales volumes declined by 0.8%.
Swift Pork's second-quarter EBITDA remained relatively flat at US$26
million compared withthe prior-year period. EBITDA results reflect
decreased sales volume coupled with increases in transportation and
packaging costs that more than offset reductions in workers compensation
and employee medical costs based on receipt of updated actuarial reports,
as well as reductions in management incentive accruals and lower utility
costs. Selling, general, and administrative costs were lower
year-over-year, principally reflecting the previously mentioned reduced
management incentive accruals that more than offset higher certain
one-time professional and consulting fees.
Swift Australia
Swift Australia's second-quarter net sales increased 15.9% to US$511
million compared withUS$441 million in the prior-year period. Average
selling prices remained nominally flat and sales volumes increased 15.5%.
Sales prices benefited from a 1.0% increase in the US dollar to Australian
dollar exchange rate compared with the prior-year period. Sales volumes
increased in both the grass-fed and grain-fed businesses due to increased
cattle availability and customer demand, respectively.
Swift Australia's second-quarter EBITDA increased to US$25 million from
US$6 million in the comparable prior-year period. The EBITDA increase
primarily resulted from improved gross margins, principally in the
grass-fed business, reflecting greater cattle availability at favorable
prices coupled with higher sales volumes and nominally flat sales prices.
Supplemental Information
On Dec. 12, 2006, agents from the US Department of Homeland Security's
Immigration and Customs Enforcement division and other law enforcement
agencies conducted on-site employee interviews at all of Swift & company's
domestic production facilities except Louisville, Kentucky and Santa Fe
Springs, California in connection with an investigation of the immigration
status of an unspecified number of Swift's workers. Approximately 1,300
individuals were detained by ICE and removed from Swift's domestic labor
force. No civil or criminal charges have been filed by the government
against Swift & company or any of its current or former management
employees.
On Dec. 12, 2006, after a six to seven hour suspension of operations due
to the employee interview process, Swift resumed production at all
facilities but at reduced output levels. Output levels are expected to be
below historical levels over the near term. While the company is still
evaluating the financial impact, the preliminary estimate of the one-time
impact on Swift's full year ended May 27, 2007, is expected to be
approximately US$20 million resulting primarily from lost operating
efficiency as new employees are retrained, plus up to an additional
expected total of US$10 million for employee retention and hiring
incentives required to restaff the facilities with production employees.
The company does not believe there will be a continuing effect on its
business, financial condition, results of operations, and cash flows
beyond the current fiscal year.
Swift & Company, headquartered in Greeley, Colorado, is a major
processor of beef and pork, with operations in the US and
Australia. It has sales offices in Mexico.
* * *
As reported in the Troubled Company Reporter on Dec. 22, 2006, Moody's
Investors Service placed Swift & Company's B3 senior unsecured rating, its
Caa1 senior subordinated rating, and B2 corporate family rating under
review for possible downgrade.
TANK SPORTS: Inks Definitive Pact to Buy Redcat Motors
------------------------------------------------------
Tank Sports signed a definitive agreement with Darin and Michelle Oreman
of Hexagon Financial, LLC, to acquire LowPrice.com, Inc., dba Redcat
Motors.
Through the acquisition of Redcat, the company will be able to strengthen
off-road vehicle sales and increase market share. After the acquisition,
the company can fully utilize its manufacturing resources to improve the
product cost, quality, and research ability of Redcat, as well as to
support sales and service of its market, which includes more than 300
dealers nationwide.
The acquisition, the company disclosed, will combine its product supply
chain and on-road sales network with Redcat's efficient management system
and off-road sales network, which will improve both companies'
competitiveness in the market.
The company also disclosed that the acquisition is an important part of
its "World Class Brand, Made in China" strategy, providing a combined
dealer base of more than 500 dealers nationwide and a broader product
offering.
About Redcat Motors
Redcat Motors imports and distributes off-road power-sports products from
China. The company has 5 regional warehouse locations and a dealership
network of over 300 dealers. Important operational procedures are
conducted online using a tier 1 ERP system, which includes ordering
inventory from China, arranging ocean freights and shipments to U.S.
contract warehouses. Redcat Dealers also place orders through the
company's website, and access availability of product and monitor
inventory levels. Product offering includes ATV's & off-road motorcycles.
About Hexagon Financial
Based in Phoenix, Arizona, Hexagon Financial, LLC, provides venture
capital and management support for high growth companies in niche markets
nationwide.
About Tank Sports
Headquartered in El Monte, California, Tank Sports, Inc.,
(OTCBB: TNSP) -- http://www.tank-sports.com/-- develops, engineers, and
markets high-performance on-road motorcycles & scooters, off-road
all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in
China. The company's motorcycles and ATVs products are manufactured in
China and Mexico.
Going Concern Doubt
Kabani & Company, Inc. in Los Angeles, California, raised substantial
doubt about Tank Sports, Inc.'s ability to continue as a going concern
after auditing the company's financial statements for the year ended Feb.
28, 2006. The auditor pointed to the company's net loss and accumulated
deficit.
US AIRWAYS: Reports December 2006 Traffic Results
-------------------------------------------------
US Airways Group, Inc., reported December, fourth quarter and year ending
traffic results for 2006. For America West operated flights, revenue
passenger miles for the month were 1.9 billion, down 2.6% from December
2005. Capacity was 2.5 billion available seat miles, down 3.4% from
December 2005. The passenger load factor for December was 77.1% versus
76.5% in December 2005.
For US Airways mainline operated flights, RPMs for December 2006 were 3.0
billion, an increase of 13.7% from December 2005. Capacity was 4.0
billion ASMs, up 6.8% from December 2005. The passenger load factor for
the month of December was 75.2% versus 70.7% in December 2005.
"Demand continued to be strong during December, and our 35,000 employees
did a fantastic job of taking care of our customers during the busy
holiday travel season by safely transporting more than five million
passengers during the month. We also posted continued strong revenue
improvements with passenger revenue per available seat mile estimated to
be up over five% on a year-over-year basis for December," said US Airways
President Scott Kirby.
Integration Update
US Airways is also providing a brief update on the integration process
between US Airways and America West. Listed are major accomplishments
from the month of December:
-- Reached a final labor agreement, including transition
items, with the Transport Workers Union, representing
about 150 dispatchers.
-- Successfully implemented new front-end reservations
software at five stations in preparation for the
transition to one reservations system in 2007. The
remaining stations are set to have the new front end
software by the end of January.
America West and US Airways report combined operational performance
numbers to the Department of Transportation. For the month of December
2006, US Airways will report a domestic on-time performance of 70.9% and a
completion factor of 98.5%.
Headquartered in Arlington, Virginia, US Airways' primary business
activity is the ownership of the common stock of US Airways, Inc.,
Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc.,
MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material
Services Company, Inc., and Airways Assurance Limited, LLC.
US Airways is the fifth largest domestic airline employing nearly 35,000
aviation professionals worldwide. US Airways, US Airways Shuttle and US
Airways Express operate approximately 3,800 flights per day and serve more
than 230 communities in the U.S., Canada, Europe, the Caribbean and Latin
America.
The new US Airways -- the product of a merger between America West and US
Airways in September 2005 -- is a member of the Star Alliance, which
provides connections for our customers to 841 destinations in 157
countries worldwide.
Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another chapter 11 petition on Sept.
12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq.,
Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter
LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at
McGuireWoods LLP, represent the Debtors in their restructuring efforts.
In the Company's second bankruptcy filing, it lists $8,805,972,000 in
total assets and $8,702,437,000 in total debts.
The Debtors' chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005. The Debtors completed their
merger with America West on the same date.
* * *
As reported in the Troubled Company Reporter on June 14, 2006,
Standard & Poor's Ratings Services affirmed its 'B-' corporate
credit and other ratings on US Airways Group Inc., and revised the
outlook to stable from negative.
===========
P A N A M A
===========
BANCO CONTINENTAL: Merging with Banco General
---------------------------------------------
Grupo Financiero Continental said in a filing with the securities
regulator in Panama that its subsidiary BBVA Banco Continental has agreed
to merge with Banco General.
Grupo Financiero said in the filing that Banco General will absorb Banco
Continental.
Business News Americas relates that merger will follow the union of Grupo
Financiero and Empresa General de Inversiones, the parent company of Banco
General, into a new holding firm called BG Financial Group.
Grupo Financiero and Empresa General told BNamericas, "It is important for
a country to have locally owned financial institutions that promote its
economic and social development."
According to the filing, BG Financial Group will be the parent of merged
bank Banco General, which will report:
-- US$7.00 billion in assets,
-- loan book of US$4.50 billion, and
-- equity of US$800 million.
Angelica Bala, financial institutions director of Standard & Poor's, told
BNamericas that the move follows the recent acquisition of Banistmo by the
HSBC. It is part of Grupo Financiero and Empresa General's strategy to
toughen their market presence to compete with HSBC.
Competition in the banking sector of Panama is already fierce and will
continue increasing when the top local players Grupo Financiero and
Empresa General become one entity, BNamericas says, citing Ms. Bala.
BNamericas underscores that as of Sept. 30, 2006, Banco General controlled
9.4% of US$35.3 billion unconsolidated assets reported by Panama's onshore
banking system, while Banco Continental controlled 8.6%.
"It will be interesting to see if they [Empresa General and Grupo
Financiero] are interested in expanding to other [Central American]
markets as Banistmo did," Ms. Bala commented to BNamericas.
About Banco General
Banco General is Panama's second largest private commercial bank in terms
of assets and deposits, with a domestic deposit market share of 16.4% at
June 2006. Originally established as a savings and loans institution in
1955 and historically focused on mortgage lending, a few acquisitions and
organic growth have aided to diversify into commercial and consumer
lending. Banco General is owned by Empresa General de Inversiones, a
Panamanian publicly traded company (end-2005 equity: US$515 million) with
additional interests in fuel distribution and plastic container
manufacturing.
About Banco Continental
Headquartered in Lima, Peru, BBVA Banco Continental --
http://www.bbvabancocontinental.com-- is the second largest commercial
bank in Peru. As of September 2006, had total loans of US$3.6 billion and
total deposits of US$4.1 billion. It has built an extensive network
throughout the country with 215 branches, 342 ATMs and 2,868 employees.
* * *
Fitch Ratings assigned on Dec. 6, 2006, these ratings to BBVA
Banco Continental:
-- Individual rating of 'C/D';
-- Support rating of '2';
-- Long-term local currency Issuer Default Rating of 'BBB';
-- Long-term foreign currency IDR of 'BBB-'; and
-- Short-term foreign and local currency ratings of 'F3'.
BANCO GENERAL: Absorbing Banco Continental's Operations
-------------------------------------------------------
Banco General will absorb BBVA Banco Continental, Empresa General de
Inversiones, the parent firm of Banco General said in a filing with the
Panamanian securities regulator.
According to the filing, Banco General has agreed to merge with Banco
Continental.
Business News Americas relates that merger will follow the union of Grupo
Financiero and Empresa General de Inversiones, the parent company of Banco
General, into a new holding firm called BG Financial Group.
Grupo Financiero and Empresa General told BNamericas, "It is important for
a country to have locally owned financial institutions that promote its
economic and social development."
According to the filing, BG Financial Group will be the parent of merged
bank Banco General, which will report:
-- US$7.00 billion in assets,
-- loan book of US$4.50 billion, and
-- equity of US$800 million.
Angelica Bala, financial institutions director of Standard & Poor's, told
BNamericas that the move follows the recent acquisition of Banistmo by the
HSBC. It is part of Grupo Financiero and Empresa General's strategy to
toughen their market presence to compete with HSBC.
Competition in the banking sector of Panama is already fierce and will
continue increasing when the top local players Grupo Financiero and
Empresa General become one entity, BNamericas says, citing Ms. Bala.
BNamericas underscores that as of Sept. 30, 2006, Banco General controlled
9.4% of US$35.3 billion unconsolidated assets reported by Panama's onshore
banking system, while Banco Continental controlled 8.6%.
"It will be interesting to see if they [Empresa General and Grupo
Financiero] are interested in expanding to other [Central American]
markets as Banistmo did," Ms. Bala commented to BNamericas.
About Banco Continental
Headquartered in Lima, Peru, BBVA Banco Continental --
http://www.bbvabancocontinental.com-- is the second largest commercial
bank in Peru. As of September 2006, had total loans of US$3.6 billion and
total deposits of US$4.1 billion. It has built an extensive network
throughout the country with 215 branches, 342 ATMs and 2,868 employees.
About Banco General
Banco General is Panama's second largest private commercial bank in terms
of assets and deposits, with a domestic deposit market share of 16.4% at
June 2006. Originally established as a savings and loans institution in
1955 and historically focused on mortgage lending, a few acquisitions and
organic growth have aided to diversify into commercial and consumer
lending. Banco General is owned by Empresa General de Inversiones, a
Panamanian publicly traded company (end-2005 equity: US$515 million) with
additional interests in fuel distribution and plastic container
manufacturing.
* * *
As reported in the Troubled Company Reporter-Latin America on Oct. 31,
2006, Fitch Ratings has affirmed the ratings assigned to Panama's Banco
General and its subsidiaries as:
-- Foreign currency long-term Issuer Default rating at 'BBB';
-- Foreign currency short-term rating at 'F3';
-- Individual rating at 'C'; and
-- Support rating at '5'.
Fitch said the rating outlook is stable.
CLIENTLOGIC CORP: Moody's Raises Corporate Family Rating to B2
--------------------------------------------------------------
Moody's Investors Service upgraded ClientLogic Corporation's corporate
family rating to B2 from B3. The rating outlook is stable. Concurrently,
Moody's has assigned a B2 rating to ClientLogic's US$675 million first
lien term loan and US$85 million undrawn first lien revolving credit
facility.
Proceeds of the current offering will be applied towards the financing of
ClientLogic's proposed merger with SITEL Corporation for approximately
US$440 million in total implied enterprise value of which approximately
US$327 million represents the equity purchase price. The transaction is
expected to close at the end of January 2007.
This concludes a review for possible upgrade initiated in December 2006
following the company's announcement of its revised plan to merge with
SITEL Corporation and SITEL's recent return to filing timely financial
statements with the SEC.
The upgrade reflects the increased scale that ClientLogic will have once
combined with SITEL as well as the favorable outlook of the call center
outsourcing industry. The B2 corporate family rating reflects the
substantial risks associated with a merger of this size, modest free cash
flow, sizeable financial leverage as measured by free cash flow to debt,
and moderate client concentration. Mitigating these risks is the
company's position as the second largest provider within the highly
competitive call center outsourcing industry and projected cost savings
and synergies expected with the merger. For further information, please
refer to Moody's credit opinion for ClientLogic on Moodys.com.
Moody's assigned these ratings:
-- Corporate family rating: B2;
-- Probability of default rating: B3;
-- US$85 million first lien revolving credit facility: B2,
LGD-3, 35%; and
-- US$675 million first lien term loan: B2, LGD-3, 35%.
ClientLogic Corp. -- http://www.clientlogic.com/-- is a business process
outsourcing provider in the customer care and back office processing
industries. ClientLogic's footprint spans 49 facilities in 13 countries:
Austria, Canada, France, Germany, India, Ireland, Mexico, Morocco,
Netherlands, Panama, Philippines, United Kingdom and the United States.
UNIVERSAL COMM: Unit Files Lawsuit Against Other Water Companies
----------------------------------------------------------------
Universal Communication Systems, Inc.'s subsidiary AirWater Corp. Company
President, Michael Zwebner, disclosed that the company has filed a lawsuit
in Federal Court in Worcester, Ma. against WorldWide Water, LLC.,
Air2Water, LLC., Freewater Company, and Mike Klein -- an individual. The
complaint as filed alleges Patent Infringement, Fraudulent
Misrepresentation, Business Interference, Intimidation of Business
Associates, Injurious Falsehoods, Trade Lies; and seeks court Injunctions,
as well as compensatory and punitive damages.
The lawsuit is directly related to 2 currently pending lawsuits in the
same Federal District Court pending in Worcester, Ma. Both those cases
relate to the Reidy Patents, which have been exclusively licensed by J. J.
Reidy & Co. to AirWater Corp. The new complaint implicates Reidy with the
named Defendants; and it is anticipated that this new lawsuit and the 2
pending cases will be consolidated.
Mr. Zwebner commented, "Sadly the ongoing irrational, yet malicious,
behavior of the defendants in the global marketplace for AirWater
machines, as well as their total disregard of the legal system, left us
with no option but to seek further court intervention to re-assert our
rights. The recent actions of the defendants in their unending
international illegal acts of intimidation and harassment, in conjunction
with their local agents in a number of countries worldwide, will result in
other parties being named as co-defendants and being drawn into the
litigation to answer for their actions."
Universal Communications Systems, Inc. -- http://www.ucsy.com/-- and its
subsidiaries are actively engaged worldwide in developing and marketing
solar energy systems, as well as systems for the extraction of drinkable
water from the air. Consolidated subsidiaries include wholly owned
subsidiaries AirWater Corp., AirWater Patents Corp, Millennium Electric
T.O.U. Ltd, Solar Style (USA) Inc., Solar One Inc, Solar Style Ltd., and
Misa Water International, Inc, and majority-owned subsidiaries Atmospheric
Water Technologies and Millennium USA. The company has operations in
China, France and Panama.
Prior to 2003, the company was engaged in activities related to advanced
wireless communications, including the acquisition of radio-frequency
spectrum internationally. Currently, the company's activities related to
advanced wireless communications are conducted solely through its
investment in Digital Way, S.A., a Peruvian communication company and
former wholly owned subsidiary.
Going Concern Doubt
As reported in the Troubled Company Reporter on Jan. 19, 2006, Reuben E.
Price & Co. expressed substantial doubt about Universal's ability to
continue as a going concern after it audited the company's financial
statements for the fiscal years ended Sept. 30, 2005, and 2004. The
auditing firm pointed to the company's over US$1.5 million working capital
deficit and recurring losses from operations.
=======
P E R U
=======
DOE RUN: Extends 11.75% Sr. Notes Purchase Offer Until Jan. 19
--------------------------------------------------------------
The Doe Run Resources Corp. disclosed that in connection with the
previously announced tender offer and consent solicitation for its
outstanding 11.75% Senior Notes due 2008, the company has extended the
expiration date for the Offer to Purchase until Jan. 19, 2007.
On Dec. 27, 2006, tenders and consents have been received with respect to
greater than a majority of the aggregate principal amount of the
outstanding notes. The company has executed a supplemental indenture with
U.S. Bank National Association, as Trustee, pursuant to which the proposed
amendments to the Indenture will become operative upon satisfaction of the
conditions set forth in the Offer to Purchase and Consent Solicitation
Statement dated Dec. 5, 2006. Previously tendered notes may no longer be
withdrawn and consents delivered may no longer be revoked.
The offer to purchase will expire at 5:00 p.m., New York City time, on
Jan. 19, 2007, unless further extended. Any notes tendered prior to such
time will be entitled to receive the tender consideration that is equal to
the outstanding principal amount of notes validly tendered. Holders who
validly tender notes will also be paid accrued and unpaid interest up to
but not including the date of payment for the notes.
The terms of the offer to purchase and consent solicitation, including the
conditions to the company's obligations to accept the notes tendered and
consents delivered and pay the purchase price and consent payments, are
stated in the company's offer to purchase and consent solicitation
statement, dated Dec. 5, 2006. The offer to purchase and consent
solicitation are subject to certain conditions, including the receipt of
the requisite number of consents required to amend the indenture, the
execution of the supplemental indenture and the company having raised
funds from a private offering of new notes in an aggregate principal
amount of approximately US$200,000,000. The company may amend, extend or
terminate the offer to purchase and consent solicitation at any time in
its sole discretion without making any payments with respect thereto.
The dealer manager and solicitation agent for the offer to purchase and
the consent solicitation is Wachovia Securities.
Questions regarding the terms of the tender offer or consent solicitation
may be directed to:
Wachovia Securities
Tel: (866) 309-6316 (toll-free)
(704) 715-8341 (collect)
The depositary is U.S. Bank National Association and the information agent
for the offer is D.F. King & Co., Inc.
Requests for documentation may be directed to:
D.F. King & Co.
Tel: (800) 758-5378 (toll-free)
(212) 269-5550 (collect)
Based in St. Louis, Mo., The Doe Run Company --
http://www.doerun.com/-- is a privately held natural resources
company dedicated to environmentally responsible mineral
production, metals fabrication, recycling and reclamation. The
company and its subsidiaries deliver products and services
needed to provide power, protection and convenience through
premium products and associated metals including lead, zinc,
copper, gold and silver. As the operator of one of the world's
only multi-metal facilities and the Americas' largest integrated
lead producer, Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.
Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold. Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.
Doe Run Peru Going Concern Doubt
As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.
Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments. In addition, there are
substantial contingencies related to taxes.
The Doe Run Peru Revolving Credit Facility expires on
Sept. 22, 2006, and will require negotiations to extend its
terms. There can be no assurance that Doe Run Peru will be
successful in extending the existing credit agreement or
negotiating a new agreement, or if it is successful, that the
extended or new credit agreement would be at terms that are
favorable to Doe Run Peru.
Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility. A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.
HERTZ CORP: Extends Exchange Offers on Senior Notes Until Jan. 8
----------------------------------------------------------------
The Hertz Corp. has extended its offers to exchange US$1,800,000,000 in
aggregate principal amount of its 8.875% Senior Notes due 2014,
US$600,000,000 in aggregate principal amount of its 10.5% Senior
Subordinated Notes due 2016 and EUR225,000,000 in aggregate principal
amount of its 7.875% Senior Notes due 2014, which have been registered
under the Securities Act of 1933, as amended for equal principal amounts
of its outstanding 8.875% Senior Notes due 2014, its outstanding 10.5%
Senior Subordinated Notes due 2016 and its outstanding 7.875% Senior Notes
due 2014, which were issued on
Dec. 21, 2005.
The Exchange Offers were originally scheduled to expire at 5:00 p.m., New
York City time, on Jan. 5, 2007, unless extended. As of the close of
business on Jan. 4, 2007, approximately US$1,010.5 million in aggregate
principal amount of the old senior dollar notes, US$371.4 million in
aggregate principal amount of the old senior subordinated notes and
EUR66.7 million in aggregate principal amount of the old senior euro notes
have been confirmed as tendered in exchange for like principal amounts of
the new senior dollar notes, the new senior subordinated notes and the new
senior euro notes, respectively.
The new expiration date for the Exchange Offer is 5:00 p.m., New York City
time, on Jan. 8, 2007, unless further extended by the Issuer.
Copies of the prospectus and other documents relating to the exchange
offers may be obtained from the Exchange Agents at:
For old senior notes and old senior subordinated notes:
Wells Fargo Bank, National Association
Attn: Bondholder Communications
Tel: (800) 344-5128
(612) 667-9764
For old senior euro notes:
Deutsche Bank AG, London Branch
Attn: Trust & Securities Services
Winchester House
1 Great Winchester Street
London EC2N 2DB
United Kingdom
Tel: + 44 (0) 207 547 5000
E-mail: xchange.offer@db.com
Hertz Corp. -- https://www.hertz.com/ -- the largest global car rental
company, participates primarily in the on-airport segment of the car
rental industry. This segment, which generates approximately 69% of
Hertz's consolidated revenues, is heavily reliant on airline traffic.
Demand tends to be cyclical, and can also be affected by global events
such as wars, terrorism, and disease outbreaks. Hertz has also grown its
off-airport business (12% of consolidated revenues), the segment of the
car rental business that is less cyclical and more profitable, but which
is dominated by 'A-' rated Enterprise Rent-A-Car Co. Through its Hertz
Equipment Rental Corp. subsidiary (HERC, 18% of consolidated revenues),
Hertz also operates one of the larger industrial and construction
equipment renters in the U.S., along with some European locations. Hertz
has operations in Hungary, Philippines and Peru, among others.
* * *
Standard & Poor's Ratings Services affirmed on Nov. 16, 2006, its ratings
on Hertz Corp., including the 'BB-' corporate credit rating, and removed
them from CreditWatch, where they were placed with negative implications
June 26, 2006. S&P said the outlook is negative.
=====================
P U E R T O R I C O
=====================
ADELPHIA COMMS: Court Confirms First Modified Fifth Amended Plan
----------------------------------------------------------------
The Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the
Southern District of New York has confirmed Adelphia Communications Corp.
and its debtor-affiliates' First Modified Fifth Amended Joint Chapter 11
Plan.
Adelphia sold in July substantially all of its cable operations to Comcast
Corp. and Time Warner Inc. for US$17.6 billion in cash and Time Warner
Cable shares. Of that amount, Adelphia will distribute US$15 billion in
cash and shares to creditors.
Judge Gerber said in a 267-page ruling that creditors accounting for 84%
of the claims voted to accept the plan helped him in his decision to
approve the plan.
Based in Coudersport, Pa., Adelphia Communications Corp.
(OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television company.
Adelphia serves customers in 30 states and Puerto Rico, and offers analog
and digital video services, Internet access and other advanced services
over its broadband networks. The Company and its more than 200 affiliates
filed for Chapter 11 protection in the Southern District of New York on
June 25, 2002. Those cases are jointly administered under case number
02-41729. Willkie Farr & Gallagher represents the Debtors in their
restructuring efforts. PricewaterhouseCoopers serves as the Debtors'
financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee,
Tuchin, Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the Rigas
family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC. The RME Debtors filed for chapter 11 protection on
March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642).
Their cases are jointly administered under Adelphia Communications and its
debtor-affiliates chapter 11 cases.
CENTENNIAL COMM: Nov. 30 Balance Sheet Upside Down by US$1.095B
---------------------------------------------------------------
Centennial Communications Corp. reported income from continuing operations
of US$1.0 million, or US$0.01 per diluted share, for the fiscal second
quarter of 2007 as compared with income from continuing operations of
US$9.9 million, or US$0.09 per diluted share, in the fiscal second quarter
of 2006. Results from continuing operations for all periods presented
exclude the results of Centennial's Dominican Republic operations due to
its classification as a discontinued operation. The fiscal second quarter
of 2007 included US$2.9 million of stock-based compensation expense due to
the company's adoption of SFAS 123R (expensing for stock options).
Consolidated adjusted operating income from continuing operations for the
fiscal second quarter was US$88.2 million, as compared with US$87.7
million for the prior-year quarter.
"We have a strong history of growing retail cash flow in each of our
businesses, and continue to take important steps to reassert our market
leadership in both the U.S. and Puerto Rico," said Michael J. Small,
Centennial's chief executive officer. "We operate great networks, have
recently enhanced our direct distribution channels and continue to
showcase the continuity and power of our brand. Our successful unlimited
offering in Puerto Rico builds on our heritage of bringing simplicity and
value to our customers."
Centennial reported fiscal second-quarter consolidated revenue from
continuing operations of US$229.2 million, which included US$121.5 million
from U.S. wireless and US$107.7 million from Puerto Rico operations.
Consolidated revenue from continuing operations grew 6% versus the fiscal
second quarter of 2006. The company ended the quarter with 1,058,700
total wireless subscribers, which compares to 992,200 for the year-ago
quarter and 1,041,500 for the previous quarter ended Aug. 31, 2006. The
company reported 387,500 total access lines and equivalents at the end of
the fiscal second quarter, which compares to 324,100 for the year-ago
quarter.
Other Highlights
-- On Nov. 6, 2006, the company announced the launch of its
unlimited wireless service in Puerto Rico, a bold move
that reinforces the company's leadership on the island by
bringing unprecedented simplicity and value to its
customers. This flagship service offering builds on
Centennial's 10th anniversary marketing campaign,
leveraging the strength of a superior wireless network
and the largest direct-distribution channel in Puerto
Rico that includes nearly 90 retail locations.
-- On Nov. 21, 2006, the company concluded its review of
strategic and operational alternatives for its Dominican
Republic operations and entered into a definitive
agreement to sell Centennial Dominicana to Trilogy
International Partners for approximately US$80 million
in cash. The transaction is expected to close towards
the end of the first calendar quarter of 2007, subject to
the satisfaction of customary closing conditions including
regulatory approval for the transfer of Centennial
Dominicana's telecommunications concession.
-- On Dec. 15, 2006, Centennial redeemed US$20 million
aggregate principal amount of its US$145 million
outstanding 10-3/4% senior subordinated notes due
Dec. 15, 2008. The redemption was completed at face value
with no prepayment penalties.
Centennial Segment Highlights
U.S. Wireless Operations
-- Revenue was US$121.5 million, a 10% increase from
last year's second quarter. Retail revenue (total
revenue excluding roaming revenue) increased 17% from the
year-ago period primarily driven by a 9% increase in
total retail subscribers, and supported by strong
feature, data and access revenue. Roaming revenue
decreased 21% from the year-ago quarter as a result of a
20% decline in total roaming traffic.
-- Average revenue per user was US$67 during the fiscal
second quarter, a 2% year-over-year increase. ARPU
included approximately US$2.61 of data revenue per user,
which grew 9% from the fiscal first quarter.
-- AOI was US$42.0 million, a 5% year-over-year increase,
representing an AOI margin of 35%. AOI benefited from
strong growth in retail revenue, partially offset by a
decline in roaming revenue.
-- U.S. wireless ended the quarter with 666,400 total
subscribers including 51,300 wholesale subscribers. This
compares to 614,100 for the prior-year quarter including
48,200 wholesale subscribers and to 654,900 for the
previous quarter ended Aug. 31, 2006, including 51,300
wholesale subscribers. At the end of the fiscal second
quarter, approximately 86% of U.S. retail wireless
subscribers were on GSM calling plans. Postpaid
subscribers increased 9,000 from the fiscal first quarter
of 2007, supported by stable postpaid churn of 1.9%.
-- Capital expenditures were US$11.1 million for the fiscal
second quarter.
Puerto Rico Wireless Operations
-- Revenue was US$78.9 million, unchanged from the prior-year
second quarter.
-- Postpaid ARPU in Puerto Rico remained stable at US$68 when
compared with the fiscal first quarter. ARPU included
approximately US$4.31 of data revenue per user, which grew
23% from the fiscal first quarter.
-- AOI totaled US$28.2 million, a 12% year-over-year
decrease, representing an AOI margin of 36%. AOI was
unfavorably impacted by lower year-over-year ARPU and
increased advertising expense related to the company's
launch of its unlimited wireless offering.
-- Puerto Rico wireless ended the quarter with 392,300
subscribers, which compares to 378,100 for the prior-year
quarter and to 386,600 for the previous quarter ended
Aug. 31, 2006. Postpaid subscribers increased 6,000 from
the fiscal first quarter of 2007 and postpaid churn was
2.8%.
-- Capital expenditures were US$7.6 million for the fiscal
second quarter.
Puerto Rico Broadband Operations
-- Revenue was US$31.8 million, an 11% year-over-year
increase. AOI was US$17.9 million, a 16% increase from
the year-ago period, representing an AOI margin of 56%.
Revenue and AOI increased primarily due to solid access
line growth.
-- Switched access lines totaled approximately 71,400 at the
end of the fiscal second quarter, an increase of 5,800
lines, or 9% from the prior-year quarter. Dedicated
access line equivalents were 316,100 at the end of the
fiscal second quarter, a 22% year-over-year increase.
-- Capital expenditures were US$4.7 million for the fiscal
second quarter.
Fiscal 2007 Outlook
-- The company has updated its fiscal 2007 outlook for all
periods presented to exclude Centennial Dominicana due to
its classification as a discontinued operation.
Centennial expects consolidated AOI from continuing
operations between US$360 million and US$370 million for
fiscal 2007, excluding stock-based compensation expense
due to the company's adoption of SFAS 123R (expensing for
stock options). Consolidated AOI from continuing
operations for fiscal 2006 was US$351.0 million. The
company has not included a reconciliation of projected
AOI because projections for some components of this
reconciliation are not possible to forecast at this time.
-- The company expects U.S. wireless roaming revenue to
decline between US$15 million and US$20 million during
fiscal 2007. U.S. wireless roaming revenue for fiscal
2006 was US$79.4 million.
-- The company expects the sum of consolidated capital
expenditures and spectrum acquisition costs from
continuing operations will be approximately US$130 million
for fiscal 2007.
Headquartered in Wall, New Jersey, Centennial Communications
Corp. -- http://www.centennialwireless.com/-- provides wireless
communications with cellular licenses covering smaller markets in the
central United States. Centennial also offers personal communications
services in the Caribbean, as well as wireline and wireless broadband
services. It operates as a competitive local-exchange carrier in Puerto
Rico, offering traditional and Internet-based phone service. Centennial
sold its Puerto Rican cable operations in 2004. Venture capital firm
Welsh, Carson, Anderson & Stowe (54%) and a unit of the Blackstone Group
(24%) are Centennial's controlling shareholders.
At Nov. 30, 2006, Centennial's balance sheet showed US$1,422,409,000 in
total assets and US$2,518,179,000 in total liabilities resulting in a
US$1,095,770,000 stockholders' deficit.
* * *
As reported in the Troubled Company Reporter on Jul. 3, 2006,
Fitch assigned Centennial Communications Corp.'s issuer default
rating at 'B-' and senior unsecured notes rating at 'CCC/RR6'. Fitch said
the rating outlook is stable.
CHATTEM INC: Closes US$410 Million Purchase of Five J&J Brands
--------------------------------------------------------------
Chattem Inc. closed its previously announced agreement to acquire the U.S.
rights to five leading consumer and over-the-counter brands from Johnson &
Johnson for US$410 million in cash.
With the acquisition, Chattem's diverse portfolio of high quality brands
has now been expanded to include five additional brands:
* ACT(R), an anti-cavity mouthwash/mouth rinse;
* UNISOM(R), an OTC sleep aid;
* CORTIZONE, a hydrocortisone anti-itch product;
* KAOPECTATE(R), an anti-diarrhea product; and
* BALMEX(R), a diaper rash product.
The acquired brands were divested in connection with the recent
acquisition by Johnson & Johnson of Pfizer Inc.'s Consumer Healthcare
business and certain regulatory requirements in connection with that
acquisition.
"We are very excited to add these leading brands to the Company's existing
portfolio of quality products," said Zan Guerry, Chairman and Chief
Executive Officer of Chattem. "With the tremendous cooperation of Johnson
& Johnson and Pfizer Inc., we have worked very hard over the past several
months to help ensure a smooth transition of ownership and remain very
excited about the growth potential of these brands."
The acquisition was funded in part with the proceeds from a new US$300
million term loan provided by Bank of America pursuant to a Fifth
Amendment to and restatement of its Credit Agreement, with the remaining
funds principally being provided through the use of a portion of the
proceeds derived from Chattem's previously announced sale of 2%
Convertible Senior Notes due 2013.
Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT)
-- http://www.chattem.com/-- manufactures and markets a variety
of branded consumer products, including over-the-counter
healthcare products and toiletries and skin care products. The
company's products include Icy Hot(R), Gold Bond(R), Selsun
Blue(R), Garlique(R), Pamprin(R) and BullFrog(R).
Chattem has operations in the United Kingdom, Australia, and Puerto Rico.
* * *
As reported in the Troubled Company Reporter on Dec. 5, 2006
Moody's Investors Service confirmed the Ba3 corporate family
rating of Chattem Inc. and lowered the senior subordinated
rating to B2 from B1. Moody's said the outlook is stable.
CHATTEM INC: Gets US$300 Mil. Term Loan from Amended Credit Pact
--------------------------------------------------------------
Chattem, Inc., as borrower, entered into a Fifth Amendment to
Credit Agreement with Signal Investment & Management Co., Sundex, LLC and
Chattem (Canada) Holdings, Inc., as guarantors, the persons identified as
lenders and Bank of America, N.A., as agent for the Lenders, pursuant to
which, among other things, the Lenders have agreed to make a US$300
million term loan.
The Term Loan is for the financing of part of the acquisition of
the U.S. rights to certain brands currently owned by Johnson &
Johnson and previously owned by the consumer healthcare business
of Pfizer Inc., including ACT(R), Unisom(R), Cortizone,
Kaopectate(R) and Balmex(R).
The Acquisition is expected to close on Jan. 2, 2007. The
Amendment amends in its entirety the Credit Agreement dated as of Feb. 26,
2004, by and among the company, the Domestic
Subsidiaries, the Lenders and the Agent. The Amendment is
expected to become effective on Jan. 2, 2007, in connection with
the consummation of the Acquisition, which, among other customary closing
conditions, is a condition to the funding of the Term Loan.
The total amount of the revolving loan commitments under the
Amended Credit Agreement remains unchanged at US$100 million. The Amended
Credit Agreement includes an "accordion" feature that permits the company
under certain circumstances to increase the Revolving Committed Amount by
US$50 million and, pursuant to the Amendment, to borrow an additional
US$50 million as a term loan. Under the Amended Credit Agreement,
borrowings with respect to the revolving loans bear interest at LIBOR plus
applicable percentages of 1% to 2% or a base rate plus applicable
percentages of up to 0.5% and, for the Term Loan, a percentage per annum
equal to LIBOR plus 1.75% for Eurodollar Loans or the base rate plus 0.75%
for Base Rate Loans.
Under the terms of the Amended Credit Agreement, the company is
required to make equal quarterly installments of US$750,000 toward
repayment of the principal amount of the Term Loan beginning on June 30,
2007, and terminating on January 2, 2013, at which time the outstanding
principal balance will be due in full. The entire outstanding principal
balance of all revolving loans, together with accrued but unpaid interest
and all other sums owing thereto, will be due and payable in full on
Nov. 15, 2010.
The Amendment amends the terms of certain financial covenants of
the company under the Amended Credit Agreement, including the
minimum fixed charge coverage ratio, the maximum leverage ratio,
the maximum senior secured leverage ratio and the minimum brand
value. Otherwise, the Amended Credit Agreement contains customary
covenants that are substantially the same as those existing prior to the
Amendment. Likewise, the Amended Credit Agreement contains customary
events of default, which are substantially the same as those existing
prior to the Amendment.
A copy of the Fifth Amendment may be viewed at no charge at:
http://ResearchArchives.com/t/s?17e2
Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT)
-- http://www.chattem.com/-- manufactures and markets a variety
of branded consumer products, including over-the-counter
healthcare products and toiletries and skin care products. The
company's products include Icy Hot(R), Gold Bond(R), Selsun
Blue(R), Garlique(R), Pamprin(R) and BullFrog(R).
Chattem has operations in the United Kingdom, Australia, and Puerto Rico.
* * *
As reported in the TTroubled Company Reporter on Dec. 5, 2006
Moody's Investors Service confirmed the Ba3 corporate family
rating of Chattem Inc. and lowered the senior subordinated rating to B2
from B1. Moody's said the outlook is stable.
DORAL FINANCIAL: Posts US$28.7MM Net Loss in Qtr. Ended Sept. 30
----------------------------------------------------------------
Doral Financial filed its financial statements for the third quarter ended
Sept. 30, 2006, with the U.S. Securities and Exchange Commission on Dec.
28, 2006.
For the first nine months of 2006, Doral Financial had a net loss of
US$62.5 million compared with a net income of US$57.4 million in the prior
nine-month period. For the third quarter ended Sept. 30, 2006, Doral
Financial had a net loss of US$28.7 million compared with a net income of
US$40.9 million in the prior quarter last year.
Doral Financial's performance for the third quarter of 2006, compared to
the third quarter of 2005, was principally impacted by lower net interest
income as a result of a decrease in net interest spread and margin
together with a decrease in the balance of interest-earning assets, and
non-interest losses driven primarily by losses on securities held for
trading, a servicing loss and lower gains on sales of mortgage loans. The
impact of these factors was offset in part by a US$17.6 million
lower-of-cost- or-market positive valuation adjustment to the company's
loans held for sale portfolio.
At Sept. 30, 2006, the company's balance sheet showed
US$13.8 billion in total assets, US$12.7 billion in total liabilities, and
US$1 billion in total stockholders' equity.
Full-text copies of the company's consolidated financial statements for
the quarter ended Sept. 30, 2006, are available for free at
http://researcharchives.com/t/s?17fc
About Doral Financial
Based in New York City, Doral Financial Corp. (NYSE: DRL) --
http://www.doralfinancial.com/-- is a diversified financial services
company engaged in mortgage banking, banking, investment banking
activities, institutional securities and insurance agency operations. Its
activities are principally conducted in Puerto Rico and in the New York
City metropolitan area. Doral is the parent company of Doral Bank, a
Puerto Rico based commercial bank, Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm, Doral Insurance
Agency Inc. and Doral Bank FSB, a federal savings bank based in New York
City.
* * *
As reported in the Troubled Company Reporter on Oct. 31, 2006,
Standard & Poor's Ratings Services removed from CreditWatch and
affirmed its ratings on Doral Financial Corp., including its 'B+'
counterparty rating. The ratings were placed on CreditWatch with negative
implications on April 19, 2005. S&P said the outlook is negative.
DORAL FINANCIAL: Moody’s Pares Senior Debt Ratings to B2 from B1
----------------------------------------------------------------
Moody's Investors Service downgraded to B2 from B1 the senior debt ratings
of Doral Financial Corp. The ratings are on review for possible
downgrade.
The rating action reflects the challenges associated with Doral's ability
to refinance US$625 million of debt maturing in July, which are compounded
by Doral's ongoing legal and regulatory issues. When Doral's ratings were
last lowered in March 2006, Moody's highlighted its concern for Doral's
long-term funding profile, in particular the debt maturing in July 2007,
as well as its regulatory and legal problems. In Moody's view, the lack
of resolution of these issues increases the potential risk for Doral's
creditors.
During its review, Moody's will actively monitor management's progress in
addressing Doral's funding needs in a timely fashion. Due to the limited
time frame, the lack of progress in raising the needed capital could
result in further downgrades of Doral's ratings. The rating agency added
that the unexpected resignation of Doral's non-executive chairman on
January 2nd may add to the ambivalence of potential new investors. The
recent resignation of this chairman, and the tenor of his disclosed
resignation note, heighten Moody's concern about Doral's governance.
The legal and regulatory issues that may hamper Doral's capital raising
efforts include an investigation by the U.S. Attorney's Office in New
York, shareholder lawsuits, and outstanding regulatory agreements. None
of these items is new. However, the longer these problems remain
unresolved, the greater the potential impediment they become. Although
Doral is up to date on its SEC reporting obligations, none of its recent
filings was on time. Among other things, Moody's believes that Doral will
need to remain current in its financial reporting to attract sufficient
capital to refinance the July 2007 maturity.
Notwithstanding Doral's near-term challenges, Moody's notes that Doral has
strengthened its management team over the past year by hiring experienced
executives from a number of US and Puerto Rican banking institutions. As
a result, new risk management practices have been implemented, Doral's
core non-interest expense base has been lowered, and the business model
continues to shift to a more traditional community bank model from one
more reliant on the mortgage banking business. The positive impact of
these changes on Doral's financial fundamentals, however, will take time
to be realized.
Downgrades:
Issuer: Doral Financial Corp.
-- Senior Unsecured Regular Bond/Debenture, Downgraded
to B2 from B1.
Outlook Actions:
Issuer: Doral Financial Corp.
-- Outlook, Changed To Rating Under Review From Negative.
Doral Financial, headquartered in San Juan, Puerto Rico, reported total
assets of US$13.8 billion at Sept. 30, 2006.
G+G RETAIL: Discloses Composition of Oversight Committee
--------------------------------------------------------
G+G Retail, Inc., gave notice that pursuant to its confirmed Plan of
Liquidation, the members of the Post-Confirmation Oversight Committee are:
* The CIT Group Commercial Services, Inc.;
* Simon Properties Group, L.P.;
* General Growth Properties, Inc.;
* Capital Factors LLC; and
* Intertex Apparel, Ltd.
Pursuant to the Plan and Confirmation Order, the Committee became
operative as of Dec. 20, 2006, the effective date of the Plan.
Headquartered in New York, New York, G+G Retail Inc. retails
ladies wear and operates 566 stores in the United States and
Puerto Rico under the names Rave, Rave Girl and G+G. The Debtor
filed for Chapter 11 protection on Jan. 25, 2006 (Bankr.
S.D.N.Y. Case No. 06-10152). William P. Weintraub, Esq., Laura
Davis Jones, Esq., David M. Bertenthal, Esq., and Curtis A.
Hehn, Esq., at Pachulski, Stang, Ziehl, Young & Jones P.C.
represent the Debtor in its restructuring efforts. Scott L.
Hazan, Esq.. at Otterbourg, Steindler, Houston & Rosen, P.C.,
represents the Official Committee of Unsecured Creditors. When
the Debtor filed for protection from its creditors, it estimated
assets of more than US$100 million and debts between US$10 million to
US$50 million. The Court confirmed the Debtor's Plan of Liquidation on
Dec. 6, 2006.
GLOBAL HOME: Can Assume & Assign Three Contracts to SEB & Groupe
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave Global Home
Products LLC and its debtor-affiliates authority to assume and assign
three executory contracts to SEB S.A. and Groupe SEB USA.
The executory contracts are:
-- a Trademark Licensing Agreement, dated Oct. 17, 1984, by
and between Mirro Corporation and Northport, Inc.;
-- an Agreement and Consent, dated May 23, 1986, by and
between Lincoln Foodservice Products, Inc., WearEver-
ProctorSilex, and Wear-Ever Aluminum, Inc., and
Assignments, dated May 23, 1986, by and between Lincoln
Foodservice Products, Inc., WearEver-ProctorSilex, and
Wear-Ever Aluminum, Inc.; and
-- a Registered User Agreement, dated June 1, 1991, by and
between Lincoln Foodservice Products, Inc., and Newell
Industries Canada Inc.
The Debtors disclose that pursuant to Section 365(b) of the Bankruptcy
Code, there are no defaults required to be cured in connection with the
assumption and assignment.
Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
April 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub LLP, represent the Debtors. Bruce Buechler,
Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq., at Pepper
Hamilton LLP represent the Official Committee of Unsecured Creditors.
Huron Consulting Group LLC gives financial advice to the Committee. When
the company filed for protection from their creditors, they estimated
assets between US$50 million and US$100 million and estimated debts of
more than US$100 million.
GLOBAL HOME: Wants Exclusive Plan Filing Period Until April 5
-------------------------------------------------------------
Global Home Products LLC and its debtor-affiliates ask the U.S. Bankruptcy
Court for the District of Delaware to further extend, until Apr. 5, 2007,
their exclusive period to file a chapter 11 plan of reorganization. The
Debtors also ask the Court to extend, until June 6, 2007, their exclusive
period to solicit acceptances of that plan.
The Debtors tell the Court that they are currently devoting a significant
amount of time to the potential sale or reorganization of Anchor Hocking,
their only remaining operating business group. The Debtors remind that
Court that they have previously sold substantially all of the assets of:
* Burnes Group to Gibson, Inc.; and
* WearEver businesses to SEB, S.A. and Groupe SEB USA.
In addition, the Debtors relate that they are continuing their analysis
and litigation of administrative and reclamation claims asserted by a
number of claimants. They have also rejected a number of burdensome
leases and executory contracts which included their former headquarters'
lease in Westerville, Ohio.
The Debtors assure the Court that the extension is not meant to pressure
creditors and in fact, they have begun discussions with the Official
Committee of Unsecured Creditors concerning the outline of an exit plan
for their chapter 11 cases.
Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
April 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub LLP, represent the Debtors. Bruce Buechler,
Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq., at Pepper
Hamilton LLP represent the Official Committee of Unsecured Creditors.
Huron Consulting Group LLC gives financial advice to the Committee. When
the company filed for protection from their creditors, they estimated
assets between US$50 million and US$100 million and estimated debts of
more than US$100 million.
=================================
T R I N I D A D & T O B A G O
=================================
BRITISH WEST: Shareholders Will Know Fate of Investments Soon
-------------------------------------------------------------
Shareholders of British West Indies aka BWIA will know what will happen to
their investments in the airline in two weeks, the Trinidad and Tobago
Express reports, citing Christine Sahadeo, the minister of finance.
Arthur Lok Jack, chairperson of BWIA, told the airline's minority
shareholders were told that their shares in BWIA are worthless now that
the airline has ceased to exist, The Express relates.
The Express underscores that the Trinidad government owns over 97% of BWIA
stock, with minority shareholders controlling the remaining 3%.
According to The Express, some shareholders suggested that together with
capital injected by the government into BWIA for its closure and the
establishment of Caribbean Airlines, money should be given to shareholders
for the faith they had in BWIA.
The government is considering this proposition and analyzing the situation
with shareholders. Hopefully, in two weeks, government should have an
answer to the shareholders' question of what will become of their 3%
holding in BWIA, Minister Sahadeo told The Express.
British West Indies aka BWIA was founded in 1940, and for more than 60
years had 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, shut down the airline on Dec. 31, 2006, and reopened a
new airline called Caribbean Airlines.
DIGICEL LTD: Says Cellular Structure in San Juan Is Legal
---------------------------------------------------------
Digicel Ltd. said in a statement that its temporary cellular structure in
Jerningham Street, Petit Bourg, in San Juan is legal.
Camille Robinson-Regis, the Planning and Development Minister, said in a
statement that the Town and Country Planning Division had informed Digicel
that the structure did not get approval for deployment. Digicel has been
advised to remove the structure within seven working days or the structure
will be removed by the state. Residents have claimed the structure poses
a danger to their health.
However, Digicel said in a statement that the Town and Country Planning
Act provides for temporary movable structures to be erected without
requiring planning permission.
Digicel told Newsday that it complied with all official procedures under
the new planning policy requirements and has filed all official documents
for the site.
According to Newsday, Digicel said it constructed the structure to lessen
the problem of blocked calls in the area and the risk to public safety
from the inability to place calls.
Digicel did not tell Newsday whether it will comply with the Town and
Country Planning Division's directive.
Digicel Ltd. is a wireless services provider in the Caribbean region
founded in 2000, and controlled by Denis O'Brien. The company started
operations in Jamaica in April 2001 and now offers GSM mobile services in
Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba,
Grenada, Barbados, Bermuda, Cayman, and Curacao among others. Digicel
finished FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478 million
and US$155 million, respectively.
* * *
On July 12, 2006, Moody's Investors Service assigned a B3 senior unsecured
rating to the US$150 million add-on Notes offering of Digicel Ltd. and
affirmed Digicel's existing B3 senior unsecured and B1 Corporate Family
Ratings. Moody's changed the outlook to stable from positive.
* * *
Fitch Ratings assigned on July 14, 2006, a 'B' rating to Digicel Ltd's
proposed add-on offering of US$150 million 9.25% senior notes due 2012.
These notes are an extension of the US$300 million notes issued in July
2005. In addition, Fitch also affirms Digicel's foreign currency Issuer
Default Rating and the existing US$300 million senior notes due 2012 at
'B'. Fitch said the rating outlook is stable.
PRG GROUP: Appoints Lou Lombardi to Board of Directors
------------------------------------------------------
PRG Group, Inc., appointed Lou Lombardi Sr. to the company's Board of
Directors. Mr. Lombardi is Chief Executive Officer of Prime
Communications, an Avaya Business Partner that installs technologically
advanced communication systems for businesses of all sizes.
PRG Group closed the acquisition of Prime Communications on
Jan. 5, 2007.
Prime Communications is the latest corporation founded and successfully
led by Lombardi, whose first enterprise was Eastern Computer, a billing
solutions software company, created in 1970. Mr. Lombardi later entered
the telecommunications industry, founding Cooperative Communications, a
reseller of long distance and toll phone services. He expanded
Cooperative's product line in 1992, contracting with Bell Atlantic to
resell Centrex services. He next formed Cooperative Industries to resell
natural gas to New Jersey businesses; and in 2005, he completed the
Cooperative family, creating Cooperative Business Solutions.
Mr. Lombardi remains Chief Executive Officer of all the Cooperative
companies. PRG Group management looks forward to his expertise and input
as a member of its Board of Directors.
Additional Prime Communications officers joining PRG include Richard
Reiss, President and co-founder of Prime. Mr. Reiss is also founder and
Chairman of Glowpoint, an IP video conference and communication company,
and was previously Chairman, President and CEO of Teledigital Corporation,
an interconnect company acquired by Standard Telecommunications
Corporations in 1986.
Prime's experienced sales team is comprised of Anthony Zarrow and Joseph
Scotti, former Vice President of New Business Development and Vice
President of Sales for Phone Extra, one of the largest distributors of
digital phone systems in the Northeast. Mr. Zarrow and Mr. Scotti bring to
Prime and PRG Group a cumulative 36 years of telecommunications and
customer service expertise.
About PRG Group
PRG Group, Inc. -- http://www.prg-group.com/-- is a multinational total
solutions provider, offering web-based applications, hosting services,
network management, consulting services, e-business solutions, system
upgrades and testing, as well as infrastructure support. PRG currently
partners with IBM, Microsoft, and Sun Microsystems to maximize the
benefits transferred to its customers. Since incorporation in 2001, the
company has served clients in North America, Asia and the Caribbean. PRG
has offices in Delaware, New Jersey, New Hampshire.
* * *
Late January 2006, PRG Group completed the sale of its Finance
Group to GE Finance and Insurance for NZ$145 million. The
Finance Group comprised four companies - Pacific Retail Services
Limited, Pacific Retail Finance Limited, Montreal Financial
Services Limited and Simply Insurance New Zealand Limited. The
structure of the sale meant the Finance Group's loan book and
other assets were sold to GE, together with the shares in Simply
Insurance New Zealand. Under the sale agreement, PRG has
changed its name from Pacific Retail Group Limited to PRG Group Limited.
The Company posted a NZ$75 million capital profit (net of costs) from the
sale.
PRG Group used part of the sale proceeds to repay
NZ$62.7 million of outstanding Secured Capital Notes and to
repay loans of NZ$20 million to principal banker, ANZ Bank. PRG
Group hoped that the sale will allow it to retire all parent
company debt, leaving it in a strong financial position to
continue to fund growth in its major operating businesses.
=============
U R U G U A Y
=============
AMERICAN AIRLINES: Reports 79.1% Load Factor in December
--------------------------------------------------------
American Airlines reported a December load factor of 79.1%
-- an increase of 0.2 points compared to the same period last year.
Traffic decreased 1.1% year over year as capacity decreased 1.3%.
Domestic traffic decreased 1.9% year over year on 2.2% less capacity.
International traffic increased by 0.4% relative tolast year on a capacity
increase of 0.3%.
American Airlines boarded 8.1 million passengers in December.
American Airlines, Inc. -- http://www.AA.com/-- American Eagle,
and the AmericanConnection regional airlines serve more than 250
cities in over 40 countries, including Uruguay and Argentina,
with more than 3,800 daily flights. The combined network fleet
numbers more than 1,000 aircraft. American Airlines, Inc. and
American Eagle are subsidiaries of AMR Corp.
* * *
As reported in the Troubled Company Reporter on April 25, 2006,
Standard & Poor's Ratings Services placed its ratings on AMR
Corp. (B-/Watch Pos/B-3) and subsidiary American Airlines Inc.
(B-/Watch Pos/--) on CreditWatch with positive implications.
The CreditWatch placement reflected improving earnings and cash
flow prospects, which should translate into a strengthened
financial profile. The 'B+' bank loan rating on American's $773
million credit facility was placed on CreditWatch, but the '1'
recovery rating (which addresses recovery prospects in a default
scenario) was not placed on CreditWatch.
=================
V E N E Z U E L A
=================
DAIMLERCHRYSLER: Reaches Pact with Insurers to Settle Dispute
-------------------------------------------------------------
DaimlerChrysler AG has reached an agreement with insurance companies
concerning a dispute to recover the cost of a
US$300 million settlement of a 2003 investor lawsuit regarding the 1998
merger of Daimler-Benz and Chrysler Corp.
The group of insurers includes ACE Ltd., AXA, Gerling, HDI, Chubb, XL
Capital, Zurich Financial, and Basler.
According to Financial Times Deutschland, the insurers will pay US$221.5
million (EUR168 million) to DaimlerChrysler to settle the dispute.
American International Group Inc. has agreed to pay US$25 million.
Some U.S. shareholders of Chrysler Corp. seeking US$22 billion in damages
filed the lawsuit. They said they were fooled into approving the
transaction because executives from both companies portrayed it as a
merger of equals.
The lawsuit cited a 2000 interview with former DaimlerChrysler Chairman
Juergen Schrempp in which he billed the combination as a merger rather
than a takeover was "for psychological reasons" only.
DaimlerChrysler agreed in August 2003 to pay shareholders around EUR275
million to settle the suit.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE: DCX) --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
In Latin America, DaimlerChrysler has operations in Argentina,
Brazil and Venezuela.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and
Dodge brand names. It also sells parts and accessories under the MOPAR
brand.
The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees
and retirees, continuing high fuel prices and a stronger shift in demand
toward smaller vehicles. At the same time, key competitors have further
increased margin and volume pressures -- particularly on light trucks --
by making significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and cut costs
in the short term are being examined at all stages of the value chain, in
addition to structural changes being reviewed as well.
DAIMLERCHRYSLER: U.S. Dec. Sales Decrease 1%, 2006 Sales Down 5%
----------------------------------------------------------------
DaimlerChrysler AG, the third largest U.S. automaker, reported total group
sales of 218,530 passenger vehicles in the U.S. for December 2006, a 1%
decrease compared with December 2005. For the full calendar year 2006,
DaimlerChrysler U.S. passenger sales were 2,390,585, down 5% compared with
the year before when 2,529,254 vehicles were sold.
Chrysler Group, which consists of the Chrysler, Jeep(R) and Dodge brands,
posted sales of 190.415 vehicles in the U.S., an increase of 1%.
Following global sales growth of 4.7% to 2.83 million units in 2005,
Chrysler Group launched 10 all-new vehicles in 2006, including some of the
most fuel-efficient vehicles in the company's history.
Reinforcing its position as America's favorite convertible company, the
Chrysler Group is raising the roof on the convertible segment with the
all-new 2008 Chrysler Sebring Convertible.
The vehicle offers what no other convertible has offered before -- three
automatically latching convertible top options in vinyl, cloth or a
body-color painted steel retractable hard top, all of which can be
retracted with a push of a button on the key fob. The Chrysler Sebring
Convertible achieves excellent fuel efficiency of 31 mpg and has
Flexible-fuel Vehicle engine availability, making the 2008 Chrysler
Sebring Convertible a solid contender.
Mercedes-Benz USA reported sales of 28,115 units for December, boosting
the company to its thirteenth consecutive year of sales growth. The
company closed the year with 248,080 units sold, an 11% increase over the
previous record year in 2005.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE: DCX)
-- http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
In Latin America, DaimlerChrysler has operations in Argentina,
Brazil and Venezuela.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and
Dodge brand names. It also sells parts and accessories under the MOPAR
brand.
The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees
and retirees, continuing high fuel prices and a stronger shift in demand
toward smaller vehicles. At the same time, key competitors have further
increased margin and volume pressures -- particularly on light trucks --
by making significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and cut costs
in the short term are being examined at all stages of the value chain, in
addition to structural changes being reviewed as well.
DAIMLERCHRYSLER: Inks Deal with Chinese Automaker
-------------------------------------------------
DaimlerChrysler AG's Chrysler Group has signed a deal with Chery
Automobile Co. under which the Chinese automaker will produce small cars
known in the industry as "B-cars" to be distributed worldwide bearing the
Chrysler brand, The Financial Times reports.
Chrysler spokesman Jason Vines told The Associated Press that "Chrysler is
taking the lead on the design and will ensure that the vehicles meet high
quality standards."
He added that Chrysler is set to unveil a prototype "fairly soon."
The deal still awaits approval by Chrysler's supervisory board and by the
Chinese government.
Production is expected to start sometime next year. However, Chrysler
declined to discuss production volume. The auto manufacturer also refused
to reveal the financial terms of the deal.
According to Bloomberg, DaimlerChrysler has decided to partner with Chery
Auto because higher costs such as labor and healthcare make it difficult
for the company to build small cars profitably in the U.S.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE: DCX) --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
In Latin America, DaimlerChrysler has operations in Argentina,
Brazil and Venezuela.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and
Dodge brand names. It also sells parts and accessories under the MOPAR
brand.
The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees
and retirees, continuing high fuel prices and a stronger shift in demand
toward smaller vehicles. At the same time, key competitors have further
increased margin and volume pressures -- particularly on light trucks --
by making significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and cut costs
in the short term are being examined at all stages of the value chain, in
addition to structural changes being reviewed as well.
* SEC's Proposed Rule on Management's Financial Internal Control
----------------------------------------------------------------
The Securities and Exchange Commission is proposing an interpretive
guidance for management regarding its evaluation of internal control over
financial reporting.
The interpretive guidance sets forth an approach by which management can
conduct a top-down, risk-based evaluation of internal control over
financial reporting.
The proposed guidance is intended to assist companies of all sizes to
complete their annual evaluation in an effective and efficient manner, and
it provides guidance on a number of areas commonly cited as concerns over
the past two years.
In addition, the SEC is proposing an amendment to its rules requiring
management's annual evaluation of internal control over financial
reporting to make it clear that an evaluation that complies with the
interpretive guidance is one way to satisfy those rules.
Further, the SEC is proposing an amendment to its rules to revise the
requirements regarding the auditor's attestation report on the assessment
of internal control over financial reporting.
The SEC said that comments should be received on or before
Feb. 27, 2007.
For electronic comments:
* Use the Commission's Internet comment form --
http://www.sec.gov/rules/proposed.shtml-- or
* Send an e-mail to rule-comments@sec.gov
Please include File Number S7-24-06 on the subject line; or
* Use the Federal eRulemaking Portal --
http://www.regulations.gov Follow the instructions for
submitting comments.
For paper comments:
Send paper comments in triplicate to:
Nancy M. Morris
Secretary,
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-1090
The SEC that all submissions should refer to File Number S7-24-06. This
file number should be included on the subject line if e-mail is used.
A full-text copy of SEC's proposed rule on management's report on internal
control over financial reporting is available for free at
http://ResearchArchives.com/t/s?1808
* BOOK REVIEW: Learning Leadership
----------------------------------
Title: Learning Leadership -- The Abuse of Power in
Organizations
Author: Abraham Zaleznik
Publisher: Beard Books
Paperback: 552 pages
List Price: US$34.95
Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/158798282X/internetbankrupt
The lesson in Learning Leadership -- The Abuse of Power in Organizations
is to "use power so that substance leads process." This is done, says the
author, by keeping the "content of work at the center of communication."
The premise of this intriguing book is that many managers, executives, and
other business leaders allow "forms of communication [to become] the
center of work." As a result, misguided and counterproductive leadership
and management practices have settled into many organizations. A culprit
is the popular "how-to" leadership manuals that offer simple, superficial
principles that only skim the surface of leadership. Zaleznik argues that
the primary way to get work done is to put aside personal agendas and deal
directly with those who are involved in the work.
With this emphasis on substance over process, the concept of leadership
lies not in techniques, but personal qualities. The essential personal
qualities of leadership are captured by the "three C's" of competence,
character, and compassion. The author then delves more deeply into each
of these C's. We learn, for example, that the three C's are not learned
skills. Competence entails "building one's power base on talent."
Character and compassion are the two other qualities of a leader that must
be present before there is any talk about methods of operation, lines of
communication, definition of goals, structure of a team, and the like.
There is more to character that the common definition of the "quality of
the person." Character also embraces, says the author, the "code of
ethics that prevents the corruption of power." Compassion is defined as a
"commitment to use power for the benefit of others, where greed has no
place."
This concept of a good leader is not idealized or unrealistic. It takes
into account human nature and the troubling behavior of many leaders. Of
course, any position of leadership brings with it temptations and the
potential to abuse power. Effective leaders are those who "take
responsibility for [their] own neurotic proclivities," says the author.
They do this out of a sense of the true purpose of leadership, which is
communal benefit. The power holder will "avoid the treacheries of an
unreasonable sense of guilt, while recognizing the omnipresence of
unconscious motivation."
Mr. Zaleznik's definition of the essentials of leadership comes from his
study of notable (and sometime notorious) leaders. Some tales are
cautionary. The Fashion Shoe Company illustrates the problems that can
occur when a leader allows action to overcome thought. The Brandon
Corporation illustrates the opposite leadership failing -- allowing
thought to inhibit action. Taken together, the two examples suggest that
balance is needed for good leadership.
Andrew Carnegie exemplifies the struggle between charisma and guilt that
affects some leaders. Frederick Winslow Taylor is seen by the author as
an obsessed leader. From his behavior in the Sicilian campaign in World
War II, General Patton is characterized as a leader who violated the code
binding leaders and those they lead.
With his training in psychoanalysis and his experience in the business
field, Mr. Zaleznik's leadership dissections and discussions are
instructive. The reader will find Learning Leadership -- The Abuse of
Power in Organizations to be an engaging text on the human qualities and
frailties of leaders.
Abraham Zaleznik is emeritus Konosuke Matsushita Professor of Leadership
at the Harvard Business School. He is also a certified psychoanalyst.
***********
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, Francois
Albarracin, and Christian Toledo, Editors.
Copyright 2076. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or publication
in any form (including e-mail forwarding, electronic re-mailing and
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Information contained herein is obtained from sources believed to be
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* * * End of Transmission * * *