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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 22, 2007, Vol. 8, Issue 15
Headlines
A R G E N T I N A
BANCO BANEX: Moody's Changes Caa1 Ratings Outlook to Positive
BANCO CETELEM: Moody's Changes Caa1 Ratings Outlook to Positive
BANCO COMAFI: Moody's Changes Ratings Outlook to Positive
BANCO CREDICOOP: Moody's Changes Ratings Outlook to Positive
BANCO DEL TUCUMAN: Moody's Changes Ratings Outlook to Positive
BANCO DE LA CIUDAD: Moody's Changes Ratings Outlook to Positive
BANCO DE LA NACION: Moody's Changes Ratings Outlook to Positive
BANCO DE LA PROVINCIA: Moody's Changes Ratings Outlook
BANCO DO BRASIL: Lending BRL5 Billion to Livestock Farmers
BANCO DO BRASIL: Posts BRL12 Billion Export Financing in 2006
BANCO HIPOTECARIO: Moody's Changes Ratings Outlook to Positive
BANCO ITAU: Moody's Changes Caa1 Ratings Outlook to Positive
BANCO MACRO: Moody's Changes Caa1 Ratings Outlook to Positive
BANCO NACIONAL: Injecting US$200 Mil. Into Andean Dev't Corp.
BANCO SUPERVIELLE: Moody's Changes Ratings Outlook to Positive
BANKBOSTON NA: Moody's Changes Caa1 Ratings Outlook to Positive
BBVA BANCO: Moody's Changes Caa1 Ratings Outlook to Positive
COOPERATIVA TAMBERA: Last Day for Claims Verification Is Feb. 7
DYLABBA SRL: Claims Verification Deadline Is on March 13
FABRICACIONES TEXTILES: Claims Verification Is Until April 3
GETTY: Extends 0.50% Deb. Consent Solicitation Until Jan. 24
MBA BANCO: Moody's Changes Caa1 Ratings Outlook to Positive
NUEVO BANCO: Moody's Changes Caa1 Ratings Outlook to Positive
NUEVO BANCO SUQUIA: Moody's Changes Ratings Outlook to Positive
PAN AMERICAN: Moody's Changes B2 Rating Outlook to Positve
TELEFONICA DE ARGENTINA: Moody's Changes Outlook to Positive
B A H A M A S
PINNACLE ENTERTAINMENT: Closes Public Offering of Common Stock
B E L I Z E
* BELIZE: City Council Gets Financial Assistance
B O L I V I A
BANCO DE LA NACION (BOLIVIA): Moody's Changes Ratings Outlook
B R A Z I L
BANCO NACIONAL: Grants US$99MM Financing to Ponto Frio Expansion
FIDELITY NATIONAL: Completes Refinancing of Credit Facilities
LOCALIZA RENT: S&P Lifts Corporate Credit Ratings to BB from BB-
METSO OYJ: Paper Unit to Supply Large Papermaking Line to Japan
PETROLEO BRASILEIRO: Inks Projects with Petroleos de Venezuela
PETROLEO BRASILEIRO: Plant Project to Cost More Than Planned
PETROLEO BRASILEIRO: Unit Extends Notes Exchange Offer to Feb. 2
STEELCASE: Repurchases 2.3 Mil. Shares of Class B Common Stock
SUL AMERICA: Fitch Assigns B+ Issuer Default Ratings
SUL AMERICA: S&P Assigns B Rating on Proposed US$150-Mil. Bond
C A Y M A N I S L A N D S
DAIKAI PROPERTIES: Proofs of Claim Filing Deadline Is on Jan. 29
MNS EQUIPMENT: Shareholders to Gather for Jan. 29 Final Meeting
MUTUAL FUND (3-A): Proofs of Claim Filing Is Until Jan. 29
MUTUAL FUND (3-A): Final General Meeting Is Set for Jan. 29
MUTUAL FUND (4-A): Last Day to File Proofs of Claim Is Jan. 29
MUTUAL FUND (4-A): Calls Shareholders for Jan. 29 Final Meeting
MUTUAL FUND (4-B): Proofs of Claim Must be Filed by Jan. 29
MUTUAL FUND (4-B): Final Shareholders Meeting Is on Jan. 29
MUTUAL FUND (7-I): Filing of Proofs of Claim Is Until Jan. 29
MUTUAL FUND (7-I): Final Sharehoders Meeting Is on Jan. 29
SAPIC-98 (42): Last Day for Proofs of Claim Filing Is on Jan. 29
C H I L E
QUEBECOR WORLD: Names D. Grosman as U.S. Magazine Division Pres.
QUEBECOR WORLD: Appoints Chuck Miotke as Global Manufacturing VP
C O L O M B I A
ARMOR HOLDINGS: Gets US$19 Million FMTV Vehicle Order from TACOM
* COLOMBIA: State Telecom to Start Paying Dividends
* COLOMBIA: Utilities Firm Seeking Private Strategic Partner
C O S T A R I C A
GENERAL NUTRITION: Ends 2006 with 11.1% Same Store Sales Growth
D O M I N I C A N R E P U B L I C
AES CORP: Dominican Unit Says Lack of Trust Affects Service
BANCO INTERCONTINENTAL: Luis Renta Gets DOP46MM in Transactions
BANCREDITO: Two Former Executives to be Jailed for Three Years
E C U A D O R
PETROLEOS DE VENEZUELA: Launches Trade Unit in Ecuador
G U A T E M A L A
BANCO DE COMERCIO: Banco Industrial Acquires GTQ900MM Deposits
BANCO INDUSTRIAL: Acquires GTQ900MM Banco de Comercio Deposits
H O N D U R A S
CONTINENTAL AIRLINES: Posts US$343 Million Full-Year 2006 Profit
J A M A I C A
KAISER ALUMINUM: Names Brigette Douglass Regional Sales Manager
M E X I C O
AUTOPISTA: Moody's Lifts Series B CPOs Rating to Ba1 from Ba2
FORD MOTOR: Mark Fields Giving Up Use of Company Plane
FORD MOTOR: Workers Start Receiving Checks for Dismissal
GUESS? INC: Raises Fourth Quarter Earnings Per Share Guidance
SANMINA-SCI: Fitch Affirms B+ Issuer Default Rating
* MEXICO: S&P Says RMBS Continues to Dominate Struc. Fin. Market
P E R U
* PERU: Wants to Ensure Free Trade Pact Approval in US Congress
P U E R T O R I C O
ALLIED WASTE: Moody's Changes Ratings Outlook to Positive
CENTENNIAL COMMUNICATIONS: Number Portability Gets Telcordia Aid
PILGRIM'S PRIDE: S&P Cuts Corp. Credit Rating to BB- from BB
T R I N I D A D & T O B A G O
HILTON HOTELS: Declares US$0.04 Per Share Dividend
ROYAL CARIBBEAN: Prices EUR1 Billion Senior Notes at 99.638%
U R U G U A Y
BANCO DE LA NACION (URUGUAY): Moody's Changes Ratings Outlook
* URUGUAY: Supports Full Incorporation of Bolivia in Mercosur
V E N E Z U E L A
AMERICAN COMMERCIAL: Launches Tender Offer on 9-1/2% Sr. Notes
AMERICAN COMM: Debt Tender Offer May Cue S&P to Withdraw Ratings
PETROLEO BRASILEIRO: Mulling Venezuelan Project Investments
PETROLEOS DE VENEZUELA: Director Spends US$21.3MM in Releases
PETROLEOS DE VENEZUELA: Inks Joint Projects with Petrobras
UNIVERSAL COMPRESSION: Acquires B.T. Engineering
* VENEZUELA: To Nationalize Seneca in First Half of 2007
* Strong Exports & High Commodity Prices Adds Growth in LatAm
* IDB Creates Cluster to Promote Clean Energy Markets
- - - - -
=================
A R G E N T I N A
=================
BANCO BANEX: Moody's Changes Caa1 Ratings Outlook to Positive
-------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco Banex S.A. were affected by the change in
rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Naci¢n Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO CETELEM: Moody's Changes Caa1 Ratings Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco Cetelem S.A. were affected by the change
in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO COMAFI: Moody's Changes Ratings Outlook to Positive
---------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco Comafi SA were affected by the change in
rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Naci¢n Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO CREDICOOP: Moody's Changes Ratings Outlook to Positive
------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco Credicoop Cooperativo Limitado were
affected by the change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO DEL TUCUMAN: Moody's Changes Ratings Outlook to Positive
--------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco del Tucuman S.A. were affected by the
change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO DE LA CIUDAD: Moody's Changes Ratings Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco de la Ciudad de Buenos Aires were
affected by the change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO DE LA NACION: Moody's Changes Ratings Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco de la Nacion Argentina were affected by
the change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO DE LA PROVINCIA: Moody's Changes Ratings Outlook
------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco de la Provincia de Buenos Aires were
affected by the change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO DO BRASIL: Lending BRL5 Billion to Livestock Farmers
----------------------------------------------------------
Banco do Brasil will increase lending to livestock farmers by
15% to BRL5 billion this year, compared with 2006, Business News
Americas reports, citing agribusiness director Jose Carlos Vaz.
Banco do Brasil told BNamericas that it expects to increase
lending to agribusinesses by 22% to BRL33 billion for the
2006 to 2007 harvest.
Banco do Brasil will decide how much to increase its rural loan
portfolio in the second quarter of 2007, when risks of default
are lower, BNamericas says, citing Mr. Vaz.
Mr. Vaz told BNamericas, "It's possible we'll increase lending
to the agricultural sector this year, but it will be healthy
growth. The agribusiness portfolio may not grow at the same
rate as other portfolios this year, but it'll still keep
growing."
According to BNamericas, a strong real against the dollar, low
international commodity prices and a drought in southern Brazil
led to a crisis in the agricultural sector in 2005 that
continued in 2006.
Banco do Brasil then renegotiated BRL6 billion in debt from over
330,000 agricultural producers last year, extending some loan
payments for four years, BNamericas notes.
Mr. Vaz told BNamericas, "This year will be a year of abrupt
transition, as many agricultural producers liquidate part of
their debt and we recover our loans."
Banco do Brasil, despite the recovery in the agricultural
sector, will keep loan-loss provisions at 2006 levels for the
time being, BNamericas says, citing Mr. Vaz.
Mr. Vaz told BNamericas, "Maybe we could lower them over the
course of the year."
BNamericas emphasizes that a higher rate of defaults from the
rural loan portfolio made Banco do Brasil boost loan-loss
provisions by 6.49% to BRL8.2 billion by the end of the third
quarter of 2006, compared with the same quarter in 2005. Loans
to the agricultural sector represented 34.1% of the bank's loan
book. Banco do Brasil had total banking assets of BRL282
billion in September 2006.
Banco do Brasil will likely bring down loan-loss provisions in
2007 in light of the turnaround among agribusinesses, Valerie
Fry, a Merrill Lynch analyst, told BNamericas.
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
As reported on Mar. 3, 2006, Standard & Poor's Ratings Services
raised its foreign currency counter party credit ratings on
Banco do Brasil SA to 'BB' from 'BB-'. The foreign and local
currency ratings of this bank are now equalized at 'BB'. S&P
said the outlook is stable.
BANCO DO BRASIL: Posts BRL12 Billion Export Financing in 2006
-------------------------------------------------------------
Banco do Brasil said in a statement that its export financing
increased 0.84% to BRL12 billion last year, from BRL11.9 billion
in 2005.
Banco do Brasil told Business News Americas that it still leads
the export financing segment in Brazil with almost a 31% market
share.
BNamericas relates that the foreign exchange export operations
Banco do Brasil conducted increased 15.2% to BRL39.4 billion,
equivalent to 26.5% market share in that category, in 2006
compared with 2005.
Banco do Brasil had BRL282 billion in banking assets in the
third quarter of 2006, BNamericas states.
Total Brazilian exports increased 16.2% to US$138 billion in
2006, compared with 2005, Banco do Brasil told BNamericas.
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
As reported on Mar. 3, 2006, Standard & Poor's Ratings Services
raised its foreign currency counter party credit ratings on
Banco do Brasil SA to 'BB' from 'BB-'. The foreign and local
currency ratings of this bank are now equalized at 'BB'. S&P
said the outlook is stable.
BANCO HIPOTECARIO: Moody's Changes Ratings Outlook to Positive
--------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco Hipotecario SA were affected by the
change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO ITAU: Moody's Changes Caa1 Ratings Outlook to Positive
------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco Itau Buen Ayre SA were affected by the
change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO MACRO: Moody's Changes Caa1 Ratings Outlook to Positive
-------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco Macro SA were affected by the change in
rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable;
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable;
-- long-term foreign currency debt rating of B2, outlook to
positive from stable;
-- long-term national scale foreign currency debt rating of
A3.ar, outlook to positive from stable;
-- provisional long-term foreign currency debt rating of
(P)B2, outlook to positive from stable;
-- provisional long-term national scale foreign currency debt
rating of (P)Aa3.ar, outlook to positive from stable;
-- long-term foreign currency subordinated debt rating of B3,
outlook to positive from stable; and
-- long-term national scale foreign currency subordinated
debt rating of A3.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANCO NACIONAL: Injecting US$200 Mil. Into Andean Dev't Corp.
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it will make a US$200-million capital injection
into the Andean Development Corp. aka CAF.
Business News Americas relates that Banco Nacional currently can
only fund Brazilian exports of goods and services.
Luiz Fernando Furlan -- Brazil's development, industry and
foreign trade minister -- told O Globo Online, "For example,
they say BNDES (Banco Nacional) is financing the construction of
the Caracas metro, but it's not like that. The bank is
financing the exports of Brazilian good and services for the
works."
Published reports say that Mr. Furlan considered Venezuelan
President Hugo Chavez's plan to create a bank for the Mercosur
trading bloc a good start to strengthen existing financial
institutions like Banco Nacional and CAF.
Brazilian finance minister Guido Mantega said that instead of
creating a new bank, Banco Nacional should work closer with its
counterpart in Argentina and Venezuela, BNamericas states.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook on both of Banco Nacional de
Desenvolvimento Economico e Social SA's foreign and local
currency counterparty credit ratings:
-- Foreign currency counterparty credit rating
* to BB/Positive/-- from BB/Stable/--
-- Local currency counterparty credit rating
* to BB+/Positive/-- from BB+/Stable/--
BANCO SUPERVIELLE: Moody's Changes Ratings Outlook to Positive
--------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco Supervielle S.A. were affected by the
change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BANKBOSTON NA: Moody's Changes Caa1 Ratings Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
This rating on BankBoston, NA (Argentina) were affected by the
change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
BBVA BANCO: Moody's Changes Caa1 Ratings Outlook to Positive
------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
This rating on BBVA Banco Frances S.A. were affected by the
change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
COOPERATIVA TAMBERA: Last Day for Claims Verification Is Feb. 7
---------------------------------------------------------------
Estudio Jorge Mencia y Asociados, the court-appointed trustee
for Cooperativa Tambera Parana Ltda.'s reorganization
proceeding, will verify creditors' proofs of claim until Feb. 7.
Estudio Jorge Mencia y Asociados will present the validated
claims in court as individual reports on March 22, 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 Cooperativa Tambera 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 Cooperativa Tambera's
accounting and banking records will follow on May 9, 2007.
On April 20, 2007, Cooperativa Tambera's creditors will vote on
a settlement plan that the company will lay on the table.
The trustee can be reached at:
Estudio Jorge Mencia y Asociados
San Martin 918
Parana, Argentina
DYLABBA SRL: Claims Verification Deadline Is on March 13
--------------------------------------------------------
Roman Jose Romanelli, the court-appointed trustee for Dylabba
SRL's bankruptcy proceeding, will verify creditors' proofs of
claim until March 13, 2007.
Under the Argentine bankruptcy law, Mr. Romanelli is required to
present the validated claims in court as individual reports.
Court No. 8 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 Dylabba SRL and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Romanelli will also submit a general report that contains an
audit of Dylabba SRL's accounting and banking records. The
report submission dates have not been disclosed.
Dylabba SRL was forced into bankruptcy at the behest of La
Cumbre San Luis SA, whom it owes US$12,030.06.
Clerk No. 16 assists the court in the proceeding.
The debtor can be reached at:
Dyllaba SRL
San Nicolas 1361
Buenos Aires, Argentina
The trustee can be reached at:
Juan Jose Romanelli
Gandar 2700
Buenos Aires, Argentina
FABRICACIONES TEXTILES: Claims Verification Is Until April 3
------------------------------------------------------------
Prisant, Roselli y Asociados, the court-appointed trustee for
Fabricaciones Textiles Argentinas SA's reorganization
proceeding, will verify creditors' proofs of claim until
April 3, 2007.
Under the Argentine bankruptcy law, Prisant, Roselli y Asociados
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
Fabricaciones Textile and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Prisant, Roselli y Asociados will also submit a general report
that contains an audit of Fabricaciones Textile's accounting and
banking records. The report submission dates have not been
disclosed.
On Dec. 17, 2007, Fabricaciones Textile's creditors will vote on
a settlement plan that the company will lay on the table.
The trustee can be reached at:
Prisant, Roselli y Asociados
Avenida Cordoba
Buenos Aires, Argentina
GETTY: Extends 0.50% Deb. Consent Solicitation Until Jan. 24
------------------------------------------------------------
Getty Images, Inc., has extended the expiration time for its
consent solicitation from the holders of record of its
outstanding 0.50% Convertible Subordinated Debentures, Series B
due 2023 in the aggregate principal amount of US$265 million.
The Consent Solicitation, which was scheduled to expire at 5:00
p.m., New York City time, on Jan. 17, 2007, will now expire at
5:00 p.m., New York City time, on Jan. 24, 2007. Holders may
deliver their consents to the Tabulation Agent at any time
before the expiration time, as extended. All other terms and
conditions of the Consent Solicitation remain unchanged.
The Consent Solicitation is being made upon the terms, and is
subject to the conditions, set forth in the Consent Solicitation
Statement, dated Jan. 4, 2007. The proposed amendments and
waiver require the consent of holders of a majority in aggregate
principal amount of the outstanding Debentures.
Getty Images has retained Goldman, Sachs & Co. to serve as the
Solicitation Agent and D.F. King & Co., Inc. to serve as
Information Agent and Tabulation Agent for the Consent
Solicitation. Requests for documents may be made directly to:
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, New York
Tel: 800-488-8095 (toll free)
212-269-5550 (collect)
Questions regarding the solicitation of consents may be directed
to:
Goldman, Sachs & Co.
Attn: Credit Liability Management Group
Tel: 800-828-3182 (toll free)
212-357-0775 (collect)
Getty Images Inc. -- http://gettyimages.com/-- (NYSE: GYI)
creates and distributes visual content and the first place
creative professionals turn to discover, purchase and manage
imagery. The company's award-winning photographers and imagery
help customers create inspiring work which appears every day in
the world's most influential newspapers, magazines, advertising
campaigns, films, television programs, books and Web sites.
Headquartered in Seattle, WA and serving customers in more than
100 countries, Getty Images believes in the power of imagery to
drive positive change, educate, inform, and entertain. The
company has corporate offices in Australia, the United Kingdom
and Argentina.
* * *
As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services lowered its ratings on
Seattle, Washington-based visual imagery company Getty Images
Inc., including lowering the corporate credit rating to 'B+'
from 'BB', and placed the ratings on CreditWatch with developing
implications.
MBA BANCO: Moody's Changes Caa1 Ratings Outlook to Positive
-----------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on MBA Banco de Inversiones S.A. were affected by
the change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
NUEVO BANCO: Moody's Changes Caa1 Ratings Outlook to Positive
-------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Nuevo Banco Bisel SA were affected by the
change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Naci¢n Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
NUEVO BANCO SUQUIA: Moody's Changes Ratings Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Nuevo Banco Suquia SA were affected by the
change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
PAN AMERICAN: Moody's Changes B2 Rating Outlook to Positve
----------------------------------------------------------
Moody's Investors Service changed the rating outlook to positive
from stable for Pan American Energy LLC's foreign currency
Corporate Family Rating of B2. The rating action was taken in
conjunction with Moody's outlook change to positive from stable
for Argentina's B2 foreign currency ceiling for bonds and notes
on Jan. 16, 2007. The foreign currency Corporate Family Rating
is constrained by Argentina's B2 ceiling. The stable outlook
for Pan American Energy LLC's Ba2 global local currency Issuer
Rating and Ba3 rated foreign currency bonds and notes was not
affected.
Pan American Energy LLC is a holding company owned 60% by BP plc
and 40% by Bridas Corp. The company engages in the exploration
and production of oil and gas in the Southern Cone region of
South America and is headquartered in Buenos Aires, Argentina.
TELEFONICA DE ARGENTINA: Moody's Changes Outlook to Positive
------------------------------------------------------------
Moody's Latin America changed the rating outlook to positive
from stable for Telefonica de Argentina's foreign currency
rating of B2 and for the Aa3.ar (national scale rating). The
rating action was taken in conjunction with Moody's outlook
change to positive from stable for Argentina's B2 foreign
currency ceiling for bonds and notes on Jan. 16, 2007.
Telefonica de Argentina's foreign currency rating continues to
be constrained by Argentina's B2 ceiling.
Telefonica de Argentina S.A. aka TASA is the incumbent telephone
service provider of its area, the southern region of the
country, where it has a strong market position. TASA reported
revenues for the fiscal year ended December 2005 that of ARS3.3
billion, ARS2.7 billion as of the nine months period ended on
September 2006.
Headquartered in Buenos Aires, Argentina, TASA is 98% owned by
Telefonica S.A. (Spain).
=============
B A H A M A S
=============
PINNACLE ENTERTAINMENT: Closes Public Offering of Common Stock
--------------------------------------------------------------
Pinnacle Entertainment, Inc., closed its underwritten public
offering of 11.5 million of its newly issued shares of common
stock at US$32.00 per share, which resulted in gross proceeds to
Pinnacle of US$368 million. This amount includes the 1.5
million shares the underwriters elected to purchase pursuant to
the exercise of their over-allotment option. Bear, Stearns &
Co. Inc. and Lehman Brothers Inc. acted as joint book-running
managers of the offering. In addition, Deutsche Bank
Securities Inc. acted as lead manager of the offering.
Pinnacle Entertainment expects to use the proceeds of this
offering for general corporate purposes and for one or more of
its capital projects, including expansions at existing
facilities, its St. Louis construction projects, its Sugarcane
Bay and Atlantic City development projects, and possible other
future development projects.
Copies of the prospectus supplement relating to the offering may
be obtained from:
Bear, Stearns & Co. Inc.
Attn: Prospectus Department
383 Madison Avenue
New York, New York 10179
Tel: 1-866-803-9204
-- or --
Lehman Brothers Inc.
c/o ADP Financial Services, Prospectus Fulfillment
1155 Long Island Avenue, Edgewood, NY 11717
Fax: 631-254-7268
E-mail: monica_castillo@adp.com
Headquartered in Las Vegas, Nevada, Pinnacle Entertainment Inc.
(NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates
casinos in Nevada, Louisiana, Indiana and Argentina, owns a
hotel in Missouri, receives lease income from two card club
casinos in the Los Angeles metropolitan area, has been licensed
to operate a small casino in the Bahamas, and owns a casino site
and has significant insurance claims related to a hurricane-
damaged casino previously operated in Biloxi, Mississippi.
Pinnacle opened a major casino resort in Lake Charles, Louisiana
in May 2005 and a new replacement casino in Neuquen, Argentina
in July 2005.
* * *
As reported in the Troubled Company Reporter on Oct. 4, 2006,
Moody's Investors Service's confirmed Pinnacle Entertainment
Inc.'s B2 Corporate Family Rating.
At the same time, Standard & Poor's Ratings Services affirmed
its 'BB-' rating and '1' recovery rating following Pinnacle
Entertainment Inc.'s US$250 million senior secured bank facility
add-on.
===========
B E L I Z E
===========
* BELIZE: City Council Gets Financial Assistance
------------------------------------------------
The Belize City Council and other municipal bodies received
financial assistance from the national government.
The city and town councils received an annual subvention of
US$4,115,800 from the Central Government. This is the same
amount paid to the previous Council last fiscal year from the
national budget.
The City Council received from the government on a monthly
basis, its subvention of US$123,708. Since March 2006 they have
so far received a total of US$1,484,500 for this fiscal year.
In May 2006 the government paid off an overdraft facility at the
bank amounting to US$426,956 on behalf of the City Council.
Based on a memorandum of understanding, the City Council has in
addition received US$240,000 from the Belize Tourism Board.
The government has further facilitated the City Council to
obtain a mortgage loan of US$3 million on the Commercial Center.
All the funding is in addition to what the City Council collects
as revenue from property tax, fire rates, trade license fees,
motor vehicle licenses, drivers permits, liquor licenses, market
fees and other fees collected by the City Council.
* * *
As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services revised its long-term foreign
currency sovereign credit rating on Belize to 'SD' from 'CC/C'.
Standard & Poor's also said that it revised to 'D' its long-term
foreign currency ratings on the rated bonds that are included in
a proposed exchange.
In addition, Standard & Poor's affirmed its 'CCC+/C' local
currency sovereign credit rating on Belize.
=============
B O L I V I A
=============
BANCO DE LA NACION (BOLIVIA): Moody's Changes Ratings Outlook
-------------------------------------------------------------
Moody's Investors Service changed its outlook to positive, from
stable, on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco de la Nacion Argentina (Bolivia) were
affected by the change in rating outlook:
-- long-term local currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term Bolivian national scale local currency deposit
rating of A2.bo, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Nacion Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
===========
B R A Z I L
===========
BANCO NACIONAL: Grants US$99MM Financing to Ponto Frio Expansion
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL99 million financing to Globex Utilidades SA,
which is directed to the expansion and modernization of Ponto
Frio's network stores in several States, including the
enhancement of control and computing systems.
Started in 2004, the network modernization project forecasts the
expansion or repair of 176 stores of the network, besides the
installation of more 98 units, with 960 square meters, in
average.
The total investment will amount to BRL145 million and Globex
group will use BRL46 million from its own resources. The
company estimates that it will generate 1,754 direct jobs that
is handled by about 9,000 employees.
Ponto Frio network is Brazil's second largest company in the
retail market of electrical appliances, furniture and domestic
appliances. Established in 1946, the network, nowadays, operates
in all the States of Southeast and South region, and also, in
Federal District, Goi s and Mato Grosso.
Globex is a public limited company, whose shares have been
trading on Stock Exchange since 1996, and have a totally
professional administration, without direct participation of its
shareholders.
The financing to Globex was granted by BNDES in the portfolio of
the Department of Commerce, Services and Tourism, which closed
2006 with disbursements amounting BRL570 million, 85% more than
the BRL307 million of last year.
For 2007, BNDES' experts already forecast a growth of at least
20% in releases. The optimistic estimate is based on a strong
portfolio of projects which have already been approved or under
analysis, especially, in retail sectors, where department
stores, shopping malls and supermarkets are included.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook on both of Banco Nacional de
Desenvolvimento Economico e Social SA's foreign and local
currency counterparty credit ratings:
-- Foreign currency counterparty credit rating
* to BB/Positive/-- from BB/Stable/--
-- Local currency counterparty credit rating
* to BB+/Positive/-- from BB+/Stable/--
FIDELITY NATIONAL: Completes Refinancing of Credit Facilities
-------------------------------------------------------------
Fidelity National Information Services, Inc., has completed the
refinancing of its principal credit facilities. The new
facilities include a US$900 million five-year unsecured
revolving credit facility and a US$2.1 billion five-year
unsecured amortizing term loan facility. The initial borrowing
rate for the facilities will be LIBOR plus 100 basis points, in
accordance with the company's current leverage ratio.
As of the closing date, the US$2.1 billion term loan was fully
drawn and US$557 million was borrowed under the revolving loan.
The combined net proceeds of US$2.7 billion were used to retire
the outstanding indebtedness on the former facilities and to
fund the cost of establishing the new facilities. The company
expects to incur a pre-tax non-cash charge of approximately
US$27.3 million in the first quarter of 2007 in conjunction with
the unamortized costs associated with the prior facilities.
Headquartered in Jacksonville, Florida, Fidelity National
Information Services, Inc. --
http://www.fidelityinfoservices.com/-- provides core processing
for financial institutions; card issuer and transaction
processing services; mortgage loan processing and mortgage
related information products; and outsourcing services to
financial institutions, retailers, mortgage lenders and real
estate professionals. FIS has processing and technology
relationships with 35 of the top 50 global banks, including nine
of the top ten. Nearly 50% of all US residential mortgages are
processed using FIS software. FIS maintains a strong global
presence, serving over 7,800 financial institutions in more than
60 countries worldwide, including Brazil.
* * *
As reported in the Troubled Company Reporter on Nov. 17, 2006,
Fitch has upgraded Fidelity National Information Services Inc.'s
outstanding ratings as:
-- Issuer Default Rating to 'BB+' from 'BB-';
-- Senior secured facilities to 'BB+' from 'BB-';
Fitch also assigns the following rating to Fidelity National
Information Services Inc.'s outstanding notes:
-- US$200 million 4.75% senior unsecured notes due 2008
'BB+'.
LOCALIZA RENT: S&P Lifts Corporate Credit Ratings to BB from BB-
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
ratings on Brazil-based car rental company Localiza Rent a Car
S.A. to 'BB' from 'BB-'. The outlook was revised to stable from
positive.
"The rating action reflects Localiza's strong growth in recent
years with superior cash generation, which has been contributing
to its market share increase; its ability to improve cash flow
metrics and to reinforce liquidity after a period of intense
investing, with proven access to the domestic capital market and
superior cash generation; and Brazil's improved fundamentals,
allowing for a more positive environment in rental car and used
car sale businesses, which bear strong correlation to economic
activity in Brazil," said Standard & Poor's credit analyst
Beatriz Degani.
The ratings reflect:
-- the company's recent, more aggressive growth strategy,
which could result in additional leverage;
-- the early phase of the developing car rental industry in
Localiza's home market, where the industry is smaller, and
more fragmented than in developed economies; and
-- Localiza's exposure to the volatile daily car rental
demand in Brazil.
These risks are partially offset by:
-- the company's dominant position in the country,
-- its strong brand name,
-- its expertise in weathering volatility, and
-- the liquidity of its assets (cars), which, with the
company's sales channels, gives Localiza the flexibility
to rapidly adjust its fleet to demand.
Localiza has been posting strong growth, prompted by improved
economic activity in the country, and Localiza's ability to gain
share over its competitors. This has been possible with the
company's:
-- lean structure;
-- pricing policies; and
-- proficient and integrated vehicle management with
operations in the car rental, fleet management, and used
car sales segments;
characteristics that should defend the firm against market
volatility in the long term.
With sales of US$450 million in the 12 months ended September
2006, Localiza is the leading car rental company in Brazil (with
an approximate 18% market share), and it benefits from an
efficient car-rental network with 133 agencies in the country.
The company's businesses include daily car rental and fleet
management--segments that represented 48% and 41% of EBITDA,
respectively, for the nine months ended September 2006. It also
sells used rental cars through more than 23 points of sale to
renew its aged fleet.
The stable outlook reflects our expectations that favorable
market conditions will continue through the next couple of
years, allowing the company to report strong cash generation,
and the expectations that the company will demonstrate prudence
in expanding the fleet, which will help in preserving its
profitability levels. The stable outlook also incorporates the
continuity of Localiza's
-- current capital structure and financial policies (with
conservative depreciation rates) with access to capital
markets;
-- strong liquidity to face potential market volatility in
car rental demand; and
-- fluctuation in the value of its fleet.
A positive revision of the rating is not likely in the medium
term, and would depend on car rental market consolidation and
further improved economic fundamentals in the country.
Meanwhile, ratings could be pressured downward if Localiza
cannot adequately finance its fleet renewal with the used car
operation, especially in the context of its expansion strategy
or if liquidity is dramatically affected.
METSO OYJ: Paper Unit to Supply Large Papermaking Line to Japan
---------------------------------------------------------------
Metso Paper, a unit of Metso Oyj, will supply a large
OptiConcept papermaking line to a Japanese paper mill. The name
of the customer is not disclosed. The new line will come on
stream during the 2nd quarter of 2008. The order, valued at
more than EUR100 million, has been recorded in the 4th quarter
2006 order intake. The line will produce more than 400,000 t/y
of woodfree-coated paper.
Metso's scope of supply contains stock preparation equipment; a
1,800 m/min, 10.7-m-wide OptiConcept paper machine, air systems,
auxiliary systems and automation systems.
Headquartered in Helsinki, Finland, Metso Corp. --
http://www.metso.com/-- is a global engineering and technology
corporation with 2005 net sales of around EUR4.2 billion. Its
22,000 employees in more than 50 countries serve customers in
the pulp and paper industry, rock and minerals processing, the
energy industry and selected other industries.
The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.
* * *
As reported on April 11, 2006, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and
engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating. The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.
PETROLEO BRASILEIRO: Inks Projects with Petroleos de Venezuela
--------------------------------------------------------------
Senior executives of Petroleo Brasileiro SA aka Petrobras and
Petroleos de Venezuela aka PDVSA met on Jan. 17, 2007, to
discuss details on the projects the two companies have been
developing jointly. Petrobras and PDVSA presidents, Jose Sergio
Gabrielli and Rafael Ramires, in addition to several company
directors and managers, attended the meeting. The two
presidents signed a Letter of Intentions on Jan. 18
consolidating the subject matters they had already agreed in
their recent meetings.
The projects under analysis are part of a set of agreements the
two companies have signed since 2005 and are still under
studies, pursuant to the routine that was established aiming at
finding solutions that allow the business to materialize.
Petrobras is studying investments in gas production projects in
Venezuelan territorial waters, in oil production projects in
five mature onshore fields, currently operated by PDVSA, as well
as in a field called Carabobo-1, in the region known as the
Orinoco Range, on the northern margin of the river that takes
the same name. The projects involving the gas pipeline intended
to connect Brazil and Venezuela, over and beyond PDVSA's
participation in the Abreu e Lima refinery, which is already in
its basic engineering phase at the Petrobras' Research Center or
CENPES and is planned to be built near the Suape port, in the
Brazilian state of Pernambuco, were also detailed.
The Letter of Intentions signed highlights these projects:
1. The conditions for Petrobras' involvement in the
development of five oil fields in the interior of
Venezuela, involving a 40% stockholding for Petrobras,
and 60% for PDVSA;
2. The mutual interest in developing a plant in Venezuela to
improve the extra-heavy oil that comes from the Orinoco
Range, with participation percentages yet to be defined;
3. The creation of a mixed company in Venezuela, resulting
from PDVSA's association with Petrobras, to develop the
Carabobo-1 extra-heavy oil field, with PDVSA's
shareholding control. In turn, Petrobras will be the
controller of company to be created in Brazil to design,
build and operate the Abreu e Lima Refinery, in the
Brazilian state of Pernambuco.
4. The continuation of the economic viability studies to
develop the Mariscal Sucre gas complex, considering the
destination of half of the production (17,000,000 cubic
meters per day) to the Venezuelan internal market, while
the other half to the initial phase of the gas pipeline
that will connect Venezuela to Northeastern Brazil. At
full capacity, it is estimated the gas pipeline will be
capable of transporting 50,000,000 million cubic meters
of gas per day, coming from other Venezuelan fields.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
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, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan and Singapore.
It also operates in Venezuela through wholly owned subsidiary
PESA, which is controlled through the firm's Argentina-based
unit Petrobras Energia.
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: Plant Project to Cost More Than Planned
------------------------------------------------------------
Petroleo Brasileiro SA, the state-owned oil company of Brazil,
told the Associated Press that construction of a planned
refinery, which will process Venezuelan and Brazilian crude,
will cost US$4 billion, far more than previous estimates.
AP relates that the plant, which will be built in Pernambuco,
was estimated to cost US$2.5 billion.
Petroleo Brasileiro chief executive Sergio Gabrielli did not
explain to AP what caused the project's cost to increase.
According to AP, a joint venture between Petroleo Brasileiro and
Petroleos de Venezuela, its Venezuelan counterpart, is expected
to process half its output with Venezuelan crude and the other
half with Brazilian petroleum.
Mr. Gabrielli told reporters that Petroleo Brasileiro will have
a 60% stake in the plant, while Petroleos de Venezuela will have
a 40% stake.
Brazil needs more refining capacity for heavy crude to be able
to stop importing diesel fuel and light crude in coming years,
AP 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, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Unit Extends Notes Exchange Offer to Feb. 2
----------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras disclosed that, in light
of the recent assignment by Standard & Poor's of a BBB-
corporate credit rating, its wholly owned subsidiary Petrobras
International Finance Company aka PIFCo has extended its
previously announced offers to exchange five series of notes for
new notes and a cash amount. S&P will also assign a rating of
BBB- to the Reopening Notes. The Moody's credit rating for
Petrobras and the Reopening Notes of Baa2 remains unchanged. As
of 5:00 p.m., New York City time, on Jan. 18, 2007, the total
principal amount of Old Notes tendered was approximately
US$383,000,000.
The early tender date has been extended from 5:00 p.m., New York
City time, on Jan. 18, 2007, to 5:00 p.m., New York City time,
on Jan. 19, 2007. The price determination date has been changed
from 2:00 p.m., New York City time, on Jan. 19, 2007, to 2:00
p.m., New York City time, on Jan. 22, 2007. The expiration date
will be extended from 5:00 p.m., New York City time, on
Feb. 1, 2007, to 12:00 midnight, New York City time, on
Feb. 2, 2007. Withdrawal rights terminated at 5:00 p.m., New
York City time, on Jan. 18, 2007, and have not been extended.
The terms and conditions of the exchange offers as described in
the applicable prospectus dated Jan. 4, 2007, are unchanged.
The Old Notes are the:
-- 12.375% Global Step-Up Notes due 2008,
-- 9.875% Senior Notes due 2008,
-- 9.75% Senior Notes due 2011,
-- 9.125% Global Notes due 2013 and
-- 7.750% Global Notes due 2014.
The Reopening Notes constitute a further issuance of, and form a
single fungible series with PIFCo's 6.125% Global Notes due 2016
that were issued on Oct. 6, 2006.
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., Inc.
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, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
STEELCASE: Repurchases 2.3 Mil. Shares of Class B Common Stock
--------------------------------------------------------------
Steelcase Inc. has entered into Share Repurchase Agreements to
repurchase 2.3 million shares of the company's Class B Common
Stock in a private transaction from a limited partnership and
trusts affiliated with a member of the company's Board of
Directors for an aggregate purchase price of US$41.63 million,
or US$18.10 per share.
The repurchase, which was approved by the company's Board of
Directors, will be made under the company's previously announced
share repurchase programs and is scheduled to close on Jan. 22,
2007. Following this transaction, the company will have
approximately US$84.6 million remaining in its share repurchase
program.
Headquartered in Grand Rapids, Michigan, Steelcase, Inc.,
(NYSE: SCS) -- http://www.steelcase.com/-- designs and
manufactures architecture, furniture and technology products.
Founded in 1912, Steelcase serves customers through a network of
more than 800 independent dealers and approximately 13,000
employees worldwide including Brazil and Mexico in Latin
America.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 4, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. Consumer Products
sector, the rating agency confirmed its Ba1 Corporate Family
Rating for Steelcase, Inc. and its Ba1 rating on the company's
US$250 million senior unsecured notes. Additionally, Moody's
assigned an LGD4 rating to those bonds, suggesting noteholders
will experience a 59% loss in the event of a default.
SUL AMERICA: Fitch Assigns B+ Issuer Default Ratings
----------------------------------------------------
Fitch Ratings assigned Sul America SA, the holding company
controlling the Sul America Seguros insurance group, foreign and
local currency Issuer Default ratings of 'B+' and Short-term
foreign and local currency ratings of 'B'. At the same time,
the agency has assigned Sul America's proposed issuance (amount
announced of US$150 million) a rating of 'B' with a Recovery
Rating of 'RR5'. The senior debt with a tenor of five years is
guaranteed by SAEPAR (a holding company 99.9% controlled by Sul
America). The IDR Outlooks are Stable.
The ratings reflect the extensive track record of Sul America
Seguros' operations in the domestic markets, its established
franchise in Brazil, the expertise of its management and the
goodwill associated with its name. The ratings also reflect Sul
America Seguros' leverage at the holding company SAEPAR, used
for financing its insurance operations. Compared to the largest
insurance companies in Brazil, Sul America Seguros exhibits
lower capitalization ratios and higher operational leverage.
Also, Sul America Seguros operates with relatively tighter
liquidity and reports volatile results. In H106 Sul America
Seguros improved its loss and combined ratios and consequently
profitability indicators, but it is still too early to define
this as a permanent trend.
Sul America is 49% held directly and indirectly by the ING
group, a leading global banking and insurance group located in
the Netherlands, with a strong franchise in a number of
countries. Total assets of Sul America Seguros represent only
0.13% of ING's total assets worldwide. ING's investment in Sul
America Seguros' operations is not strategic, therefore does not
provide any uplift to Sul America's ratings. Nevertheless, Sul
America Seguros benefits from the name, brand and from
operational synergies with the Dutch insurance group, exchanging
methodologies, policies and expertise. This is also evidenced
by Sul America Seguros' sound claims provisioning policy.
Sul America will use the proceeds of the above issuance to repay
short-term debt from SAEPAR. Although with this issuance Sul
America will become leveraged (defined as investments/equity --
of 1.4x or more depending on the amount placed), the
consolidated group's total leverage will not increase and its
debt profile will improve with the extended tenor. SAEPAR
benefits from its investments in several companies operating in
practically all insurance segments in Brazil. As a holding
company, SAEPAR is dependent on a stream of dividends to honor
its debt obligations. This mitigates the risk of non-payment
through the diversification of the dividend sources; i.e. the
holding company might continue to receive dividends even if a
specific sub-sector in the insurance segment is not performing
well. In addition, according to Brazilian law, the only limit
for holding companies to upstream dividends from its
subsidiaries is the minimum capital established by regulators at
operating subsidiaries, giving Sul America more flexibility to
manage its cash flow distribution among the group's operational
and holding companies.
Fitch's criteria assumes that unsecured senior debt issued by
holding companies have "below average" baseline recovery
characteristics (i.e., RR5 on its recovery scale), because
holding companies' debt service capacity generally depends on
cash flows generated by their operating subsidiaries. According
to the agency's methodology, the rating of an issue reflects
both the probability of default and recovery. An issue rated
'RR5' is notched down from the issuer's IDR, therefore Sul
America's issue rating of 'B' reflects Sul America's IDR of 'B+'
and a Recovery rating 'RR5'.
Sul America Seguros is a traditional insurance group in Brazil,
with total earned premiums of BRL4.6 billion for the first nine
months of 2006 (BRL5.9 billion in 2005), ranking as the second
largest insurance group by total premiums. Sul America Seguros'
equity at end-Q306 reached BRL868 million, with total technical
reserves of BRL4 billion and total assets of BRL8 billion.
Controlled by the Larragoiti family, Sul America Seguros is
directly/indirectly 51%-owned by this family and other
minorities shareholders and 49% by the ING Group. Sul America
Seguros has established several joint ventures and operational
agreements to increase market penetration and to diversify
business lines; the group is active in practically all insurance
segments available in Brazil.
SUL AMERICA: S&P Assigns B Rating on Proposed US$150-Mil. Bond
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
counterparty credit rating to Sul America S.A. and its 'B'
senior unsecured debt rating to the company's proposed US$150
million five-year, senior unsecured bond.
"The rating on Sul America reflects its status as a
nonoperational holding company for Sul America Seguros insurance
group, of which the main insurance operating entity is Sul
America Companhia Nacional de Seguros (financial strength rating
of 'BB-'), and the structural subordination of the holding
company's creditors to policyholders of Sul Ameica's operating
entities," said Standard & Poor's credit analyst Tamara
Berenholc.
It also reflects the holding's leveraged capital structure and
relatively weaker operating track record than that observed for
the local insurance industry. Partially offsetting these
negative factors are Sul America's strong competitive position
as the second-largest insurance group in Brazil by total
premiums, the good growth prospects for the Brazilian insurance
market, the strong brand recognition and improving cash flow,
and performance of the operating subsidiaries.
S&P applies a two-notch differentiation between the holding
company and the operating subsidiary rated in speculative grade
categories, reflecting the structural subordination that exists
in the insurance business. Although all policyholders'
obligations and the majority of the group's investment assets
lie at the operating company, which is subject to potential
regulator's actions to protect policyholders' interest by
maintaining the financial strength of the operating company,
Brazilian regulators are expected to raise no objection to cash
dividends being upstream from solvent operating subsidiaries to
the holding company, reinforcing the holding's ability to
service its debt in a full and timely manner.
Sul America is the largest independent insurance company in
Brazil and the second in terms of premiums written, holding a
strong position in number of policies issued and 6 million
clients. Sul America's main businesses maintain a robust market
position as the second largest in the industry in October 2006:
the auto and health sectors hold a 16% and 38% market share,
respectively. With a change of its business focus from market
share to profitability, one of the positive changes in the
company brought by the joint-venture with ING Brazil, improved
underwriting procedures helped to grow profitability on most of
the insurance lines, and at the same time market share was
maintained in 2005 and 2006 for most of the business lines.
The stable outlook reflects S&P's expectation that Sul America
will continue to occupy a central role within the group, and
benefit from a steady stream of dividends and positive cash
flows from operating subsidiaries. Financial leverage is
expected to decline to less than 55% until 2009, with further
reduction from 2009 to 2011.
The rating may be raised or the outlook revised to positive if
the expected improvement in operating performance of the
operating subsidiaries results in a strengthening of
capitalization in the next two to three years. Conversely, the
rating may be lowered or the outlook changed to negative if
there is a deterioration of the financial condition or
performance of operating subsidiaries that would affect the flow
of dividends to Sul America.
===========================
C A Y M A N I S L A N D S
===========================
DAIKAI PROPERTIES: Proofs of Claim Filing Deadline Is on Jan. 29
----------------------------------------------------------------
Daikai Properties Holding Inc.'s creditors are required to
submit proofs of claim by Jan. 29, 2007, to the company's
liquidators:
Mark Wanless
Maples Finance Jersey Ltd.
2nd Floor, Le Masurier House
La Rue Le Masurier
St. Helier, Jersey JE2 4YE
Creditors who are not able to comply with the Jan. 29 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Daikai Properties' shareholders agreed on Dec. 7, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
MNS EQUIPMENT: Shareholders to Gather for Jan. 29 Final Meeting
---------------------------------------------------------------
MNS Equipment Co., Ltd.'s final shareholders meeting will be on
Jan. 29, 2007, at:
Maples Finance Ltd.
PO Box 1093 GT, Queensgate House
South Church Street, 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:
Mark Wanless
c/o Maples Finance Jersey Ltd.
2nd Floor Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
MUTUAL FUND (3-A): Proofs of Claim Filing Is Until Jan. 29
----------------------------------------------------------
Mutual Fund Basket Reference Fund (3-A) Ltd.'s creditors are
required to submit proofs of claim by Jan. 29, 2007, to the
company's liquidators:
Mark Wanless
Liam Jones
Maples Finance Jersey Ltd., 2nd Floor
Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
Creditors who are not able to comply with the Jan. 29 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Mutual Fund's shareholders agreed on Dec. 11, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
MUTUAL FUND (3-A): Final General Meeting Is Set for Jan. 29
-----------------------------------------------------------
Mutual Fund Basket Reference Fund (3-A)'s final shareholders
meeting will be on Jan. 29, 2007, at:
Maples Finance Ltd.
PO Box 1093 GT, Queensgate House
South Church Street, 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:
Mark Wanless
c/o Maples Finance Jersey Ltd.
2nd Floor Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
MUTUAL FUND (4-A): Last Day to File Proofs of Claim Is Jan. 29
--------------------------------------------------------------
Mutual Fund Basket Reference Fund (4-A) Ltd.'s creditors are
required to submit proofs of claim by Jan. 29, 2007, to the
company's liquidators:
Mark Wanless
Liam Jones
Maples Finance Jersey Ltd., 2nd Floor
Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
Creditors who are not able to comply with the Jan. 29 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Mutual Fund's shareholders agreed on Dec. 11, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
MUTUAL FUND (4-A): Calls Shareholders for Jan. 29 Final Meeting
---------------------------------------------------------------
Mutual Fund Basket Reference Fund (4-A)'s final shareholders
meeting will be on Jan. 29, 2007, at:
Maples Finance Ltd.
P.O. Box 1093 GT, Queensgate House
South Church Street, 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:
Mark Wanless
c/o Maples Finance Jersey Ltd.
2nd Floor Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
MUTUAL FUND (4-B): Proofs of Claim Must be Filed by Jan. 29
-----------------------------------------------------------
Mutual Fund Basket Reference Fund (4-B) Ltd.'s creditors are
required to submit proofs of claim by Jan. 29, 2007, to the
company's liquidators:
Mark Wanless
Liam Jones
Maples Finance Jersey Ltd., 2nd Floor
Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
Creditors who are not able to comply with the Jan. 29 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Mutual Fund's shareholders agreed on Dec. 11, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
MUTUAL FUND (4-B): Final Shareholders Meeting Is on Jan. 29
-----------------------------------------------------------
Mutual Fund Basket Reference Fund (4-B)Ltd.'s final shareholders
meeting will be on Jan. 29, 2007, at:
Maples Finance Ltd.
P.O. Box 1093 GT, Queensgate House
South Church Street, 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:
Mark Wanless
c/o Maples Finance Jersey Ltd.
2nd Floor Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
MUTUAL FUND (7-I): Filing of Proofs of Claim Is Until Jan. 29
-------------------------------------------------------------
Mutual Fund Basket Reference Fund (7-I) Ltd.'s creditors are
required to submit proofs of claim by Jan. 29, 2007, to the
company's liquidators:
Mark Wanless
Liam Jones
Maples Finance Jersey Ltd., 2nd Floor
Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
Creditors who are not able to comply with the Jan. 29 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Mutual Fund's shareholders agreed on Dec. 11, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
MUTUAL FUND (7-I): Final Sharehoders Meeting Is on Jan. 29
----------------------------------------------------------
Mutual Fund Basket Reference Fund (7-I)'s final shareholders
meeting will be on Jan. 29, 2007, at:
Maples Finance Ltd.
P.O. Box 1093 GT, Queensgate House
South Church Street, 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:
Mark Wanless
c/o Maples Finance Jersey Ltd.
2nd Floor Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
SAPIC-98 (42): Last Day for Proofs of Claim Filing Is on Jan. 29
----------------------------------------------------------------
Sapic-98 Reference Fund (42) Ltd.'s creditors are required to
submit proofs of claim by Jan. 29, 2007, to the company's
liquidators:
Mark Wanless
Liam Jones
Maples Finance Jersey Ltd., 2nd Floor
Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
Creditors who are not able to comply with the Jan. 29 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sapic-98's shareholders agreed on Dec. 7, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
=========
C H I L E
=========
QUEBECOR WORLD: Names D. Grosman as U.S. Magazine Division Pres.
----------------------------------------------------------------
Wes Lucas, President and Chief Executive Officer of Quebecor
World Inc. appointed Doron D. Grosman as President of the U.S.
Magazine Group. Mr. Grosman will assume his new position
immediately and will be based in the company's New York offices.
"Doron is an outstanding leader, and I am very pleased that
Doron will lead the U.S. Magazine Division, as he has the ideal
capabilities and experiences to ensure that we create the
highest value for our customers, our people, and our
shareholders," stated Mr. Lucas. "Doron has an exceptional
track record and leadership capability to bring to Quebecor
World, with an extensive background in sales and operations, and
he has proven that he can deliver the highest value to the
customer, build superior execution capabilities in operations,
create high performing teams, and deliver results to the
shareholder," added Mr. Lucas.
Quebecor World recently completed the retooling of its U.S.
magazine division, installing 10 new 64 and 96-page presses at
seven facilities, and restructuring the entire U.S. Magazine
network. With the completion of this retooling, the U.S.
Magazine Division will start a new era, as this world-class,
customer-focused platform is now better positioned than ever to
deliver to customers the highest value, best quality product,
and with the leading on-time performance in the industry.
"This is evolutionary, and is an ideal time for Chuck Miotke to
take on a global manufacturing role and leverage his operational
expertise across the company, and for a new leader to leverage
this world class new operating platform for the benefit of our
customers and our shareholders," stated Mr. Lucas. Mr. Miotke's
appointment to lead Quebecor World's global manufacturing is
described in a separate announcement. "I am confident that
Doron and his team will ensure Quebecor World continues to
provide our customers with new and innovative print marketing
solutions to generate the greatest customer value," added Mr.
Lucas. Mr. Miotke and Mr. Grosman have designed a smooth
transition and integration for customers, for the retooled
plants, and the business, and Mr. Miotke will continue to
support the magazine operations and plants in the future in
depth.
Mr. Grosman is a seasoned operating executive who most recently
held senior operating positions at Trane Air Conditioning, a
subsidiary of American Standard Companies Inc. Before joining
Trane, Mr. Grosman held several senior executive positions at
General Electric where he was involved in running operations,
sales, marketing and business development. Mr. Grosman began
his career with Bain and company, one of the world's leading
management consulting firms. Mr. Grosman developed multi-
generation product plans, marketing strategies and product
support plans for a wide range of clients.
Mr. Grosman holds a B.S. and an M.S. in Civil Engineering from
the University of Witwatersrand in Johannesburg, South Africa
and an MBA from the Harvard Business School.
Chuck Miotke who has led the U.S. Magazine group for the last
three years and has worked with Quebecor World and in the
printing industry for more than 30 years will be taking on new
responsibilities within the organization. Mr. Miotke's new role
and responsibilities are outlined in a separate announcement.
Headquartered in Montreal, Canada, Quebecor World Inc.
(TSX: IQW)(NYSE: IQW) -- http://www.quebecorworld.com/--
provides print solutions to publishers, retailers, catalogers
and other businesses with marketing and advertising activities.
Quebecor World has approximately 32,000 employees working in
more than 140 printing and related facilities in the United
States, Canada, Argentina, Austria, Belgium, Brazil, Chile,
Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden,
Switzerland and the United Kingdom.
* * *
As reported in the Troubled Company Reporter on Dec. 13, 2006,
Moody's Investors Service assigned a B2 senior unsecured rating
to the pending US$400 million Senior Notes issue due 2015 of
Quebecor World Inc., while the family Probability of Default
rating remains B2 and the Loss Given Default of the new issue
has been assigned as LGD4, 50%. Moody's said the outlook for
the rating is negative.
QUEBECOR WORLD: Appoints Chuck Miotke as Global Manufacturing VP
----------------------------------------------------------------
Wes Lucas, President and Chief Executive Officer of Quebecor
World Inc. disclosed that Chuck Miotke will become the company's
global manufacturing and productivity vice president.
As part of Quebecor World's 5 Point Transformation Plan, its
Execution Initiative drives fundamental improvements in our
operating capability in our plants, logistics solutions, supply
chain, and service offerings, and ensures that we deliver on the
benefits of our recent and significant retooling investment.
"To provide the highest customer satisfaction in the industry,
our objective is to build the execution capability so that our
customers receive the highest quality products, the best product
performance, and with the industry's leading on-time delivery,"
stated Mr. Lucas. "I am pleased that Chuck is taking a
leadership role in driving this part of our 5 Point
Transformation Plan, and I am confident that under his
leadership we will achieve significant productivity and
efficiency improvements through operational excellence," added
Mr. Lucas.
Mr. Miotke's almost 30 years experience in operations, and at
multiple levels and operational functions, make him ideally
suited for this key position. Most recently Chuck served as the
President of our U.S. Magazine Division. He oversaw the
extensive three-year retooling program, which is transforming
the Magazine Division with the industry's leading magazine
operating platform serving many of the world's largest
publishers.
"I want to personally thank Chuck for a job well-done during his
leadership of the Magazine Division" stated Mr. Lucas. "Chuck
will be able to leverage his operational expertise and
experience to assist all our divisions, world-wide, to drive
productivity, great execution, and continuous improvement so
that we optimize the significant retooling investment, and that
we continue to deliver to our customers a high quality product,
on time, every time," added Mr. Lucas.
Chuck Miotke has almost 30 years of experience in the printing
industry. He has worked at Quebecor World since 1993 and has
held many senior leadership positions within the organization.
In his new role Mr. Miotke will report to David Blair, Quebecor
World's Senior Vice President Operations, Technology and
Continuous Improvement. During the next several months, Mr.
Miotke will provide support and continuity to the magazine
plants and customers, to ensure a smooth transition.
Headquartered in Montreal, Canada, Quebecor World Inc.
(TSX: IQW)(NYSE: IQW) -- http://www.quebecorworld.com/--
provides print solutions to publishers, retailers, catalogers
and other businesses with marketing and advertising activities.
Quebecor World has approximately 32,000 employees working in
more than 140 printing and related facilities in the United
States, Canada, Argentina, Austria, Belgium, Brazil, Chile,
Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden,
Switzerland and the United Kingdom.
* * *
As reported in the Troubled Company Reporter on Dec. 13, 2006,
Moody's Investors Service assigned a B2 senior unsecured rating
to the pending US$400 million Senior Notes issue due 2015 of
Quebecor World Inc., while the family Probability of Default
rating remains B2 and the Loss Given Default of the new issue
has been assigned as LGD4, 50%. Moody's said the outlook for
the rating is negative.
===============
C O L O M B I A
===============
ARMOR HOLDINGS: Gets US$19 Million FMTV Vehicle Order from TACOM
----------------------------------------------------------------
Armor Holdings, Inc., received a US$19 million order from the
U.S. Army Tank-automotive and Armaments Command or TACOM for the
production of additional Family of Medium Tactical Vehicle or
FMTV vehicles. The company advised that the award is made under
the existing multi-year FMTV production contract, with work to
be performed in 2008 by the Armor Holdings Aerospace and Defense
Group at its facilities in Sealy, Texas.
Robert Schiller, President of Armor Holdings, Inc., said, "It is
exciting to be building backlog for 2008, and we are extremely
proud to be part of such a significant program supporting the
U.S. Army."
Headquartered in Jacksonville, Florida, Armor Holdings, Inc. --
http://www.armorholdings.com/-- manufactures and distributes
security products and vehicle armor systems for the law
enforcement, military, homeland security, and commercial
markets. The company's mobile security division are located in
Mexico, Venezuela, Colombia and Brazil.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba3 Corporate
Family Rating for Armor Holdings Inc.
Additionally, Moody's affirmed its B1 ratings on the company's
2% Convertible Senior Subordinated Notes Due 2024 and 8.25%
Senior Subordinated Notes Due 2013. Moody's assigned those
debentures an LGD5 rating suggesting noteholders will experience
a 77% loss in the event of default.
* COLOMBIA: State Telecom to Start Paying Dividends
---------------------------------------------------
ISA, Colombia's state-owned transmission and telecommunications
firm, said in a statement that it will begin paying out
dividends totaling COP28.8 billion.
Business News Americas relates that the Colombian government,
which holds a 59.3% stake in ISA, will receive COP17.1 billion.
The disbursement will be the fourth and final series of the
COP115-billion payment agreed in a March 2006 shareholders
meeting, BNamericas states.
* * *
On July 25, 2006, Fitch rated the Republic of Colombia's US$1
billion issue of fixed-rate Global Bonds maturing
Jan. 27, 2017, 'BB'. The rating is in line with Fitch's long-
term foreign currency rating on Colombia. Fitch said the Rating
Outlook is Positive.
* COLOMBIA: Utilities Firm Seeking Private Strategic Partner
------------------------------------------------------------
The Colombian government said in a statement that Emcali,
municipally owned utilities firm, will have to look for a
private strategic partner to stay competitive in the telecoms
market.
Business News Americas relates that the public services
regulator found that Emcali needs added capital to offer new
services, develop new business and to prevent the further loss
of value for the city of Cali, which is the firm's owner.
The regulator told BNamericas that Emcali provides telecoms,
potable water, sewage and electricity services to 600,000
clients. However, its telecoms services, which include fixed
line local telephony and Internet, need to be developed further.
Jose Otero, the head of telecoms consultancy Signals Telecoms
Consulting, told BNamericas that Emcali is well established in
Cali department, but is going to face heightened pressure as
competitors with national coverage increased their presence in
the region.
Mr. Otero, the head of telecoms consultancy Signals Telecoms
Consulting, commented to BNamericas, "I can identify three main
companies that could be interested in Emcali: Telmex, Telefonica
Telecom and EPM."
Mr. Otero said that Emcali received a departmental WiMax
license, which could be attractive, but the future partner will
need to invest a great deal in Emcali's network to bring it up
to speed, BNamericas notes.
It could easily be a slow process, so Emcali would benefit from
starting its search quickly, Mr. Otero told BNamericas.
* * *
On July 25, 2006, Fitch rated the Republic of Colombia's US$1
billion issue of fixed-rate Global Bonds maturing
Jan. 27, 2017, 'BB'. The rating is in line with Fitch's long-
term foreign currency rating on Colombia. Fitch said the Rating
Outlook is Positive.
===================
C O S T A R I C A
===================
GENERAL NUTRITION: Ends 2006 with 11.1% Same Store Sales Growth
---------------------------------------------------------------
General Nutrition Centers, Inc. or GNC disclosed its same store
sales results for the fourth quarter and full year of 2006.
Domestic same store sales for the fourth quarter of 2006
increased 6.5% for corporate stores and 2.8% for domestic
franchise stores. Corporate same store sales include Internet
sales, which added 1.8% to corporate same store sales growth.
For the year, same store sales in domestic corporate stores
increased 11.1%, while same store sales in domestic franchise
stores increased 5.7%. Internet sales added 1.5% to corporate
same store sales for the entire year. This is GNC's sixth
consecutive quarter of positive same stores sales growth.
"We have had a very successful year as a result of the
strategies we've initiated to solidify our position as a market
leader through rst-to-market products and innovative product
development resulting in successful new launches, as well as
diversified marketing efforts and improved promotional campaigns
driving new consumers to GNC," said President and Chief
Executive Officer Joseph Fortunato. "Performance has been
strong across all of our major categories throughout the year.
Strength in our core business allows us to seek out new
opportunities for growth, while we continue to improve the
operations and strategies that are working now."
General Nutrition Centers, Inc., with headquarters in
Pittsburgh, Pennsylvania, retails and manufactures vitamins,
minerals, and nutritional supplements domestically and
internationally through about 5850 company-operated and
franchised stores. Revenue for the twelve months ended
September 2006 approached US$1.5 billion. GNC's Latin American
operations are in the Bahamas, Cayman Islands, Chile, Colombia,
Costa Rica, among others.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Moody's Investors Service downgraded the corporate family rating
of GNC Parent Corporation to B3 and the US$425 million holding
company note issue to Caa2.
===================================
D O M I N I C A N R E P U B L I C
===================================
AES CORP: Dominican Unit Says Lack of Trust Affects Service
-----------------------------------------------------------
Jesus Bolinaga -- the head of AES EdeEste, a unit of AES Corp.
in the Dominican Republic -- told Listin Diario that lack of
trust between companies and consumers has led to blaming and
poor service in the electricity sector.
AES EdeEste's poll in 2006 found that many consumers feel that
the energy firms are stealing from them, that the costs are too
high, and that service is of the lowest quality, DR1 Newsletter
relates, citing Mr. Bolinaga.
However, the survey also showed that energy companies say that
consumers steal energy and are delinquent clients, DR1 notes.
Mr. Bolinaga told Dr1 that the poll has taught AES EdeEste that
trust is needed to end energy crisis.
AES EdeEste has been meeting with communities while at the same
time installing anti-energy theft systems and improving
reliability and hours of service, DR1 says, citing Mr. Bolinaga.
Many communities like El Milloncito and the towns of El Seibo
and Hato Mayor are being supplied with 24 hours of electricity,
according to DR1. Consumers there are paying their bills on
time.
AES EdeEste has changed its vision and mission "to become a
company that provided electricity, not blackouts." Staff
members who are not in tune with this new philosophy are being
dismissed, Mr. Bolinaga told DR1.
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.
BANCO INTERCONTINENTAL: Luis Renta Gets DOP46MM in Transactions
---------------------------------------------------------------
Luis Alvarez Renta, a Dominican financier indicted in the Banco
Intercontinental fraud case, has received DOP46 million in
return for eight currency transactions made in March 2003,
before the bank's bankruptcy and intervention, Dominican Today
reports.
Dominican Today notes that the money transfers took place while
the Banco Intercontinental-Progreso merger contract was being
discussed.
According to Dominican Today, Mr. Renta used La Quisqueyana to
exchange DOP46 million for US$11 million between March 20 and
March 26, 2003.
Clave Digital relates that the funds used for the purchase came
from the accounts of Banco Intercontinental's Bank Invest.
Mr. Renta ordered the transfers in dollars from the Bank Invest
account in Banco Intercontinental to the Wadeville account in
Bank Atlantic, Dominican Today says, citing a Quisqueyana letter
to Mr. Renta.
Dominican Today underscores that Bank Invest -- with
authorization from Zaida Rodriguez, Mr. Renta's secretary --
issued DOP327.9 million in checks using Banco Intercontinental
money, and exchanged them for US$11.03 million. Quisqueyana
transferred the money to the Wadeville firm account in the Bank
Atlantic, Florida.
The report says that on March 20, 2003, US$2 million were
transferred and DOP53 million was paid. That same day
US$530,000 was transferred and DOP14 million was paid. On
March 21, 2003, US$2 million were again transferred and DOP51
million was paid. Mr. Renta always paid using Banco
Intercontinental checks.
Dominican Today emphasizes that Mr. Renta made two transfers on
March 24, 2003:
-- for US$2 million, and
-- for US$1 million, for which he paid DOP74.4 million.
On March 25, 2003, Mr. Renta made a transfer of US$1 million,
for which he paid DOP24.8 million using a check, Dominican Today
relates. On March 26, 2003, he authorized a transfer of US$2
million and for those paid with two checks for:
-- DOP24.8 million, and
-- DOP24.4 million.
According to the report, the other transaction was the largest,
which ordered a transfer of US$2.5 million, and paid with check
#367 a total of DOP61.5 million. However, Quisqueyana only
transferred US$500,000.
Quisqueyana didn't tell Dominican Today the reasons for
transferring only US$500,000. The firm said in its letter to
Mr. Renta, "The request formulated by you, dated March 26, 2003,
reaches the amount of US$2.5 million, which were paid via Banco
Intercontinental, SA check for a total of DOP61.5 million, whose
check was deposited in our account in the Banco Mercantil, SA.
From this request, only US$500,000 were transferred to said bank
and account."
Quisqueyana's letter said that the firm returned to Mr. Renta
DOP46,015,088.00 through a check on April 11, 2003, as a surplus
of the transfer operations, Dominican Today notes. The company
said, "Consequently, a surplus in pesos in your favor exists,
from which we are discounting the sum of DOP3,184,912.00 from
pertinent banking expenses to this operation and that were
debited to our checking accounts, for reason the remaining
amount totals DOP46,015,088.00, amount that is reimbursed via
attached check."
The report says that Mr. Renta and Ms. Rodriguez, representing
Bank Invest and Wadeville, received the check from Quisqueyana.
The checks issued by Bank Invest were certified, according to
Dominican Today. However, the ones numbered from 360 to 367,
for a total of DOP185.1 million, were returned by the banks
Reservas and Mercantil. Still Quisqueyana unexplainably managed
to cash them.
"I received from Mr. Ramon Baez Figueroa a set of certified
checks, with the intention of buying dollars to pay
approximately US$10 million of debts of Baninter (Banco
Intercontinental), and a company called Prestige, controlled by
Mr. Ramon Baez Figueroa... I proceeded to acquire the dollars in
three exchange houses, mainly in La Quisqueyana, and to pay the
debts with the authorization of Mr. Baez Figueroa and Pedro
Castillo," Dominican Today reports, citing Mr. Renta.
Banco Intercontinental aka Baninter collapsed in 2003 as a
result of a massive fraud that drained it of about US$657
million in funds. As a consequence, all of its branches were
closed. The bank's current and savings accounts holders were
transferred to the bank's new owner -- Scotiabank. The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product. It cost Dominican taxpayers DOP55 billion and resulted
to the country's worst economic crisis.
BANCREDITO: Two Former Executives to be Jailed for Three Years
--------------------------------------------------------------
The National District 1st Collegiate Court in the Dominican
Republic has sentenced Manuel A. Pellerano and Juan Felipe
Mendoza -- the two main former executives of the collapsed
Bancredito -- with three years of imprisonment and DOP1 million
fine, Dominican Today reports.
Dominican Today relates that the Dominican central bank and the
banks superintendence were plaintiffs of a DOP20-billion fraud
case against the Bancredito officials. The indictment cites:
-- forgery of bank or commercial documents,
-- swindle,
-- breach of trust,
-- adulteration and manipulation of documents and data,
to divert controls and the investigation by the
monetary and financial authority and the drafting
and approval of balances, and
-- use of false financial statements to hide irregular
operations.
Dominican Today says that the 6th Instruction Court ruled on
Sept. 27, 2006, that there is evidence of criminal
responsibility against Messrs. Pellerano and Mendoza for
violating Law 183, in reference to the Monetary and Financial
Code.
Messrs. Pellerano and Mendoza filed an appeal based on a
supposed double jeopardy, in violation of national and
international legal dispositions. The Bancredito officials said
they had already been tried and sentenced by the National
District 1st Collegiate Court to three years in prison for the
Bancredito fraud, according to Dominican Today.
However, the Court of Appeals' 1st Penal Chamber rejected the
appeal, resulting to the commencement of the criminal trial, the
report says.
Dominican Today notes that in the criminal trial, the court
ruled that Bancredito executives face the three years of
imprisonment, plus DOP1 million fine each, to be paid to the
state.
Dominican Today relates that the Justice Ministry appealed for a
stiffer sentence, describing the sentence as benevolent.
Meanwhile, the prosecution motioned the court to reject the
filing of new documents by the legal representatives of Messrs.
Pellerano and Mendoza. The prosecutors based their motion on
several articles of the Penal Procedural Code, and asked for
auditors' testimony proving that despite Bancredito's reporting
over DOP5 billion in losses, official information revealed
profits.
Dominican Today underscores that the audits revealed that loans
given by Bancredito to affiliated firms and its shareholders
reached DOP20 billion.
Dominican Today emphasizes that Fernando Langa, the defense
attorney, argued about the manner in which the prosecutors use
numbers in the millions before the court, saying that they could
never prove the figures they accused Bancredito officials of
stealing.
The court is yet to decide on the new evidence, Dominican Today
states.
Fernando Langa can be reached at:
Langa & Abinader
Rafael Hernandez No. 17, Naco
Santo Domingo, Dominican Republic
Telephone: +809-472-4244
Fax: +809-565-1321
Bancredito is a subsidiary of Banco Intercontinental, which
collapsed in 2003 as a result of massive fraud that drained it
of about US$657 million. As a consequence, all of its branches
were closed. The bank's current and savings accounts holders
were transferred to the bank's new owner -- Scotiabank.
=============
E C U A D O R
=============
PETROLEOS DE VENEZUELA: Launches Trade Unit in Ecuador
------------------------------------------------------
Petroleos de Venezuela, the state-run oil company of Venezuela,
told Business News Americas that it has launched PDVSA-Ecuador,
a company trade office in Quito, to help conduct joint projects
with Ecuadorian state oil Petroecuador.
According to BNamericas, the launching of the office follows the
signing of a memorandum of understanding between Venezuela and
Ecuador to increase energy cooperation. The deal covers
projects to perform:
-- oil exploration and production,
-- processing of Ecuadorian crude in Petroleos de
Venezuela plants, and
-- supply, store and distribute natural gas and
liquefied petroleum gas.
BNamericas relates that the cooperation could involve the
construction of a new plant to increase Ecuador's refining
capacity from 170,000 barrels per day.
Petroleos de Venezuela said in a statement that PDVSA-Ecuador
will handle crude supply and exchanges as well as upgrading
plants.
Alejandro Granado, Petroleos de Venezuela's refining vice
president, said in a statement, "Venezuela should have been here
[in Ecuador] a long time ago; we are oil countries."
BNamericas underscores that Petroleos de Venezuela has launched
over the last three years similar trade offices in:
-- Brazil,
-- Cuba,
-- Argentina,
-- Uruguay,
-- Bolivia, and
-- China.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.
=================
G U A T E M A L A
=================
BANCO DE COMERCIO: Banco Industrial Acquires GTQ900MM Deposits
--------------------------------------------------------------
Banco Industrial has taken over GTQ900 million in deposits held
at Banco de Comercio, Guatemala's banking regulator said in a
statement.
Business News Americas relates that Banco Industrial received
trust certificates funded by a similar amount of Banco de
Comercio's assets and GTQ360 million from the local deposit
insurance fund.
Alejandro Garcia, the financial institutions director at Fitch
Ratings, told BNamericas, "Given the fact (Banco) Industrial is
the institution that is absorbing the accounts, I would expect
it will be able to retain most of [Banco de Comercio's]
deposits. It is natural for people to get nervous because of
this failure, but if they would want to transfer their deposits
to another bank, what would it be? They already have their
money in the strongest bank."
Fitch's analyst and sources within the industry commented to
BNamericas that Banco Industrial is now challenged to recover
Banco de Comercio's assets, which may cause some problems since
an unknown portion of them are related-party loans.
BNamericas underscores that Banco Industrial posted GTQ26.3
billion in assets, deposits of GTQ17.8 billion and equity of
GTQ2.36 billion as of Nov. 30, 2006. Banco Industrial holds
25.4% market share in Guatemala.
Meanwhile, Banco de Comercio reported assets of GTQ1.17 billion,
deposits of GTQ985 million, and GTQ126 million in equity as of
Nov. 30, 2006, BNamericas notes. Banco de Comercia holds 1.1%
market share in Guatemala.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2007, Banguat, the Guatemalan central bank, has
permanently suspended Banco de Comercio's operations. Banco de
Comercio asked the Guatemalan banking superintendent to
intervene on Jan. 11. Willy Zapata, the bank superintendent of
Guatemala, said that Banco de Comercio became unsustainable
after it overextended its loan portfolio.
BANCO INDUSTRIAL: Acquires GTQ900MM Banco de Comercio Deposits
--------------------------------------------------------------
Banco Industrial has taken over GTQ900 million in deposits held
at Banco de Comercio, Guatemala's banking regulator said in a
statement.
Business News Americas relates that Banco Industrial received
trust certificates funded by a similar amount of Banco de
Comercio's assets and GTQ360 million from the local deposit
insurance fund.
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2007, Banguat, the Guatemalan central bank, has
permanently suspended Banco de Comercio's operations.
Alejandro Garcia, the financial institutions director at Fitch
Ratings, told BNamericas, "Given the fact (Banco) Industrial is
the institution that is absorbing the accounts, I would expect
it will be able to retain most of [Banco de Comercio's]
deposits. It is natural for people to get nervous because of
this failure, but if they would want to transfer their deposits
to another bank, what would it be? They already have their
money in the strongest bank."
Fitch's analyst and sources within the industry commented to
BNamericas that Banco Industrial is now challenged to recover
Banco de Comercio's assets, which may cause some problems since
an unknown portion of them are related-party loans.
BNamericas underscores that Banco Industrial posted GTQ26.3
billion in assets, deposits of GTQ17.8 billion and equity of
GTQ2.36 billion as of Nov. 30, 2006. Banco Industrial holds
25.4% market share in Guatemala.
Meanwhile, Banco de Comercio reported assets of GTQ1.17 billion,
deposits of GTQ985 million, and GTQ126 million in equity as of
Nov. 30, 2006, BNamericas notes. Banco de Comercia holds 1.1%
market share in Guatemala.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 19, 2007, Fitch Ratings maintained the following ratings on
Banco Industrial:
-- Long-term Foreign and Local Currency Issuer Default
Rating: 'BB';
-- Short-term Foreign and Local Currency rating: 'B';
-- Individual rating: 'D';
-- Support rating: '3';
-- National-scale ratings: 'AA-(gtm)' and 'F1(gtm)'; and
-- Outlook: Stable
===============
H O N D U R A S
===============
CONTINENTAL AIRLINES: Posts US$343 Million Full-Year 2006 Profit
----------------------------------------------------------------
Continental Airlines reported 2006 net income of US$343 million,
a substantial improvement over the 2005 net loss of US$68
million. 2006 net income includes a US$92 million gain on the
sale of a portion of the company's investment in Copa Airlines
and a net charge from other special items of US$53 million.
Excluding special items, Continental's net income for the full
year was US$304 million, a substantial improvement over the 2005
net loss of US$205 million excluding special items.
In spite of fuel price increases costing over US$510 million
year-over-year, 2006 net income improved on strong revenue
growth, which was up 17.1% year-over-year, and continued cost
reduction initiatives.
"Because of the hard work of my more than 44,000 co-workers, we
were able to deliver solid results for the year," said Larry
Kellner, Continental's chairman and chief executive officer.
"We look forward to distributing US$111 million in profit
sharing on Valentine's Day."
Continental reported a fourth quarter 2006 net loss of US$26
million, including a special charge of US$22 million related to
lump-sum payments to retiring pilots. Excluding the special
charge, Continental recorded a net loss of US$4 million.
Operating income for the fourth quarter of 2006 was US$20
million, the largest fourth quarter operating income since 2000.
This was an improvement of US$114 million (US$115 million
excluding special charges) over the same period of 2005.
Revenue and Capacity
Passenger revenue for the quarter increased 10.6% (US$274
million) over the same period in 2005 to US$2.9 billion.
Passenger revenue for the year increased 17.3% (US$1.8 billion)
over the same period in 2005 to US$12 billion. For both the
quarter and the year, the company had double-digit percentage
growth in each international geographic region.
Consolidated revenue passenger miles for the quarter increased
8.7% year-over-year on a capacity increase of 6.1%, resulting in
a record fourth quarter consolidated load factor of 79.8%, 1.9
points above the previous fourth quarter record set in 2005.
Consolidated yield for the quarter increased 1.8% year-over-
year. Consolidated revenue per available seat mile for the
quarter increased 4.3% year-over-year due to increased yield and
record load factors.
Mainline RPMs in the fourth quarter of 2006 increased 8.8% over
the fourth quarter 2005, on a capacity increase of 6.0 percent.
Mainline load factor was a record 80.2%, up 2.1 points year-
over-year. Continental's mainline yield increased 2.9% over the
same period in 2005. As a result, fourth quarter 2006 mainline
RASM was up 5.5% over the fourth quarter of 2005.
During the quarter, Continental continued to achieve domestic
length-of- haul adjusted mainline yield and RASM premiums to the
industry.
"In 2006, we grew revenue at almost twice the rate we grew
capacity, and we grew mainline capacity more than any of the
other major network carriers," said Jeff Smisek, president of
Continental. "Our great people and product helped return us to
profitability."
Operational Accomplishments
Twice during the quarter, Continental paid its employees bonuses
for finishing in the top three of the network carriers for
monthly on time performance. Despite severe winter weather in
some parts of the U.S., Continental's employees worked together
to deliver a system-wide mainline completion factor of 99.6% for
the quarter, operating 26 days without a single mainline
cancellation. The company recorded a U.S. Department of
Transportation on-time arrival rate of 73.7% during the quarter,
which was adversely impacted by the weather, air traffic control
ground delay programs and record load factors.
Continental outranked all other U.S. carriers to be chosen as
the Best Airline for North American Travel in Business Traveler
magazine's 2006 Readers' Choice Best in Business Travel Survey.
The company placed highest among U.S. airlines for Best Flight
Attendants and Best In-flight Services.
Continental made several product improvements in the fourth
quarter. The company introduced new BusinessFirst menus on
international flights and completed the installation of
Audio/Video on Demand in the BusinessFirst cabins of its entire
Boeing 757-200 fleet used on transatlantic flights from its New
York hub at Newark Liberty International Airport. The new AVOD
allows customers to choose from up to 25 movies, 25 short-
subject programs and 50 compact discs. The company has also
installed in-seat AC power ports that don't require an adapter
on these aircraft in BusinessFirst and economy class seats
located forward of the overwing emergency exit.
US Helicopter Corp. and Continental launched a new alliance
during the quarter to provide eight-minute shuttle service
between Manhattan and its New York hub at Newark Liberty.
Additionally, Newark Liberty continues to provide fast rail
connection to Manhattan.
Financial Results
Continental's mainline cost per available seat mile increased
1.3% (2.4% holding fuel rate constant) in the fourth quarter
compared with the same period last year. CASM increased 3.3%
(down 1.0% holding fuel rate constant) in 2006 as compared with
2005.
"It's great to realize the payoff of several years of hard work
with a solid profit for the year," said Jeff Misner,
Continental's executive vice president and chief financial
officer. "We've done a lot of work, but we've got more to do, so
we'll keep focused."
Continental continues to enhance its fuel-efficient fleet. With
mainline ASMs up 6.0% for the fourth quarter, fuel consumption
increased only 4.9%. The company completed installation of
winglets on its entire 757-200 fleet in the fourth quarter of
2006. Work will begin in 2007 to install winglets on 37 of its
737-500 and 11 of its long-range 737-300 aircraft. Winglets
lower drag and improve aerodynamic efficiency, which can reduce
fuel consumption by up to five percent.
Continental ended the fourth quarter with approximately US$2.48
billion in unrestricted cash and short-term investments.
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout Mexico, Europe and Asia,
serving 154 domestic and 138 international destinations
including Honduras and Bonaire. More than 400 additional points
are served via SkyTeam alliance airlines. With more than 43,000
employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with Continental Express,
carries approximately 61 million passengers per year.
Continental consistently earns awards and critical acclaim for
both its operation and its corporate culture.
* * *
As reported in the Troubled Company Reporter on Nov. 10, 2006
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines Inc.'s. Moody's affirmed the B3 corporate
family rating. Moody's said the outlook is stable.
As reported in the Troubled Company Reporter on Oct. 23, 2006,
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' long-term and 'B-3' short-term corporate
credit ratings, on Continental Airlines Inc. The outlook is
revised to stable from negative. Continental has about US$17
billion of debt and leases.
At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'. Fitch said
the rating outlook was stable.
=============
J A M A I C A
=============
KAISER ALUMINUM: Names Brigette Douglass Regional Sales Manager
---------------------------------------------------------------
Kaiser Aluminum disclosed that Brigette Douglass has joined as
Regional Sales Manager of the Distribution and Aerospace
business. In this role, she will represent the company
throughout most of the Midwest region including Illinois and
Texas.
Prior to joining Kaiser Aluminum, Ms. Douglass built a 16-year
career in the metals industry, most recently as the Inside Sales
Manager for The Earle M. Jorgensen Company. Her experience also
encompasses positions with Basic Metal Works and Joseph Ryerson
& Sons. She is a graduate of Purdue University.
"Brigette has strong sales experience and will be an asset as we
continue to grow our Distribution and Aerospace business
throughout the region," said Samuel Romeo, Vice President of
Sales Distribution and Aerospace at Kaiser Aluminum.
Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corp. -- http://www.kaiseraluminum.com/-- is a leading producer
of fabricated aluminum products for aerospace and high-strength,
general engineering, automotive, and custom industrial
applications. The Company, along with its Jamaican
subsidiaries, filed for chapter 11 protection on Feb. 12, 2002
(Bankr. Del. Case No. 02-10429), and has sold off a number of
its commodity businesses during course of its cases. Corinne
Ball, Esq., at Jones Day, represents the Debtors in their
restructuring efforts. Lazard Freres & Co. serves as the
Debtors' financial advisor. Lisa G. Beckerman, Esq., H. Rey
Stroube, III, Esq., and Henry J. Kaim, Esq., at Akin, Gump,
Strauss, Hauer & Feld, LLP, and William P. Bowden, Esq., at
Ashby & Geddes represent the Debtors' Official Committee of
Unsecured Creditors. The Debtors' Chapter 11 Plan became
effective on July 6, 2006, and the company emerged from Chapter
11. On June 30, 2004, the Debtors listed US$1.619 billion in
assets and US$3.396 billion in debts.
===========
M E X I C O
===========
AUTOPISTA: Moody's Lifts Series B CPOs Rating to Ba1 from Ba2
-------------------------------------------------------------
Moody's Investors Service upgraded the global local currency and
national scale ratings of Autopista del Mayab's Series A CPOs to
Baa3 and Aa2.mx from Ba1 and Aa3.mx, respectively. Moody's also
upgraded the global local currency and national scale ratings of
the company's Series B CPOs to Ba1 and Aa3.mx from Ba2 and
A1.mx, respectively. This concludes the review for possible
upgrade initiated on Jan. 9, 2007. The rating outlook for
Autopista del Mayab is positive.
The rating actions and positive outlook reflect the strong
recovery in the toll road project's traffic and cash flow
following a sharp downturn caused by hurricane Wilma, which
flooded part of the road and devastated the city of Cancun in
October 2005. Moody's anticipates that the company's financial
results for 2006 will be better than in 2005, and that this
positive trend will continue in 2007. Moody's also notes that
the road's liquidity reserves have increased since 2005, which
also demonstrates the project's capacity to withstand the
financial impact of hurricanes similar in scale to hurricane
Wilma.
Autopista del Mayab is a critical transport link connecting the
cities of Cancun and Merida, which are located in the states of
Quintana Roo (rated Ba1/A1.mx) and Yucatan (rated Ba2/A2.mx),
respectively. The road is the primary supply route for Cancun
and also benefits from tourist traffic visiting the Mayan ruins
of Chichen Itza.
Headquartered in Merida, Yucatan, Autopista del Mayab is a
241.345 km toll road linking the cities of Cancun and Merida.
The road is concessioned to Consorcio del Mayab, S.A. de C.V.,
whose principal shareholders include Canteras Peninsulares, S.A.
de C.V., Constructora Mool, S.A. de C.V., Asesoria Proser, S.A.
de C.V. and C.L. Construcciones, S. de R.L. de C.V.
FORD MOTOR: Mark Fields Giving Up Use of Company Plane
------------------------------------------------------
Mark Fields, the head of North American operations at Ford Motor
Co., told the United Press Institute that he would give up his
free use of a company plane to fly home to south Florida from
Detroit on weekends.
According to UPI, Mr. Fields had been widely criticized for
using Ford Motor's jet when the firm is trying to make up for a
projected US$4.5 billion loss in its North American operations
last year, out of the total US$7 billion loss.
UPI notes that the Detroit-Florida flights cost Ford Motor
US$214,479 in the fourth quarter of 2005, the only period Ford
Motor has made public. The full cost for last year is likely to
be disclosed later this year.
Mr. Fields said he asked Ford Motor to remove from his
employment contract the privilege of using the plane, The Wall
Street Journal relates.
Mr. Fields was put in charge of the North American operations,
Ford Motor's largest business sector in October 2005. His
compensation that year was US$3.2 million, including a US$1-
million bonus to take the job, UPI states.
The Troubled Company Reporter-Latin America reported on
Jan. 16, 2007, that Ford Motor Chief Executive Officer Alan
Mulally might consider selling the company's Jaguar brand,
threatening about 8,000 car workers' jobs.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents. With more than 324,000
employees worldwide, including Mexico, the company's core and
affiliated automotive brands include Aston Martin, Ford, Jaguar,
Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corp.
* * *
As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co. after the company
increased the size of its proposed senior secured credit
facilities to between US$17.5 billion and US$18.5 billion, up
from US$15 billion.
As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.
As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.
FORD MOTOR: Workers Start Receiving Checks for Dismissal
--------------------------------------------------------
The former workers of Ford Motor Co. have started receiving
checks for their dismissal, The Virginia-Pilot reports.
Virginia-Pilot relates that the workers were frustrated by late
buyout checks. They had been promised checks of up to
US$100,000 before taxes, three to five weeks after they left
Ford Motor. However, many of them who had left work in November
2006 still had not received any payment.
Marcey Evans -- a spokesperson for Ford Motor in Dearborn,
Michigan -- predicted that the checks would arrive by the end of
last week, Virginia-Pilot notes.
"I was really surprised. I really thought they were going to
keep delaying it like they did with the insurance," Tammi
Dooley, one of the former Ford Motor employees who received the
check on Jan. 18, told Viginia-Pilot.
According to Virginia-Pilot, over 200 former Ford Motor workers
faced a discontinuation of insurance benefits in December 2006
due to a paperwork error.
Ms. Evans told Virginia-Pilot that Ford Motor would not release
details on how many checks have been sent or how many were yet
to go out.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents. With more than 324,000
employees worldwide, including Mexico, the company's core and
affiliated automotive brands include Aston Martin, Ford, Jaguar,
Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corp.
* * *
As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co. after the company
increased the size of its proposed senior secured credit
facilities to between US$17.5 billion and US$18.5 billion, up
from US$15 billion.
As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.
As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.
GUESS? INC: Raises Fourth Quarter Earnings Per Share Guidance
-------------------------------------------------------------
Guess?, Inc., raised its earnings per share guidance for the
fourth quarter ended Dec. 31, 2006, to a range of US$0.91 to
US$0.93 compared with earnings per share of US$0.57 in the
fourth quarter of 2005. The company raised its earnings per
share guidance for the fiscal year ended Dec. 31, 2006, to a
range of US$2.60 to US$2.62, compared withUS$1.31 per share in
2005. Previous fourth quarter earnings guidance was US$0.65 to
US$0.67 per share, which would have resulted in fiscal year 2006
earnings per share of US$2.34 to US$2.36.
Strong performance in the company's retail, licensing and
wholesale segments drove the improved operating results for the
quarter. The company's retail segment exceeded previous
expectations due to higher revenues coupled with better gross
margins resulting from more full-priced selling. Strong sales
of the company's accessories drove higher than expected
licensing revenues, and the wholesale segment benefited from
higher revenues and improved margins in the period.
Paul Marciano, Chief Executive Officer, stated, "We are very
pleased with the momentum across all of our businesses and
geographic regions of the world, which reflects the strong
global acceptance of our brand. Our strategy to execute a
diversified and balanced business continues to be our top
priority, resulting in profitable growth as we expand globally."
The company plans to release its financial results for the
fourth quarter and fiscal year ended Dec. 31, 2006, on
Feb. 14, 2007, and will address its guidance for the current
fiscal year at that time.
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.
SANMINA-SCI: Fitch Affirms B+ Issuer Default Rating
---------------------------------------------------
Fitch Ratings has removed Sanmina-SCI Corp. from Rating Watch
Negative and affirmed these ratings:
-- Issuer Default Rating at 'B+';
-- Senior secured credit facility at 'BB+/RR1'.
-- Senior unsecured term loan at 'BB+/RR1'; and
-- Senior subordinated debt at 'B/RR5'.
The Rating Outlook is Negative. Fitch's action affects
approximately US$1.7 billion of total debt.
The removal of the Rating Watch Negative reflects Sanmina's
successful filing of its fiscal third quarter 2006 10Q and
fiscal 2006 10K reports. The company also refinanced US$525
million 3% convertible subordinated notes, which were set to
mature in March 2007, using a US$600 million senior unsecured
term loan that matures in January 2008. Sanmina's ratings were
placed on Rating Watch Negative on Aug. 22, 2006 after the
company failed to file its third quarter fiscal 2006 10Q filing
with the SEC, thereby creating a technical default under its
bond covenants.
The ratings and Negative Outlook reflect weak operating trends
including a 7% decline in revenue in fiscal 2006 (end Sept. 30)
versus fiscal 2005, low operating EBIT margin of 2.2% and cash
conversion cycle days of 44, among the highest of Fitch-rated
EMS companies, in fiscal 2006. Sanmina also carries the largest
debt balances among tier 1 EMS companies leading to the highest
leverage ratio (Total Adjusted Debt to Operating EBITDA) of the
group at 5.2x. In addition, the company's fiscal 2006 10K
filing identifies a material weakness in Sanmina's internal
controls over financial reporting. Specifically, the material
weakness is comprised of internal control deficiencies in stock
option administration.
Fitch expects a difficult competitive environment within the EMS
industry in 2007 driven by continued pricing pressure from Asian
EMS and ODM vendors as well as a continued trend by OEMs to
consolidate EMS vendors, both of which could hamper efforts to
improve the operating performance at Sanmina. The company is
currently evaluating its strategy and position within the market
and recently announced a shift in its original design
manufacturing business to a joint design-manufacturing model.
In addition, Sanmina is considering various strategic
alternatives for its low margin personal computing, low-end
server and storage businesses. Actions including a divestiture
of lower margin businesses to improve overall operating
performance, the use of proceeds from asset divestitures to pay
down debt, a successful refinancing of the US$600 million term
loan, or correcting the internal control deficiencies could
stabilize Sanmina's ratings.
The Recovery Ratings and notching reflect Fitch's recovery
expectations under a distressed scenario, as well as Fitch's
expectation that the enterprise value of Sanmina, and hence
recovery rates for its creditors, will be maximized in
liquidation rather than in a going concern enterprise value
scenario. In estimating Sanmina's liquidation value under a
distressed scenario, Fitch applied advanced rates of 80%, 20%,
and 10% to Sanmina's current balance of accounts receivable,
inventory, and property, plant and equipment, respectively.
That leads to a distressed enterprise value estimate of
approximately US$1.3 billion, providing the basis for a
waterfall analysis to determine recovery ratings. The current
'RR1' recovery rating for Sanmina's secured credit facility and
unsecured term loan reflects Fitch's belief that 100% recovery
is realistic. As is standard with Fitch's recovery analysis,
the revolver is fully drawn and cash balances fully depleted to
reflect a stress event. The current 'RR5' Recovery Rating for
the senior subordinated debt reflects Fitch's estimate that a
recovery of only 10%-30% would be achievable.
As of Sept. 30, 2006, Fitch believes liquidity was adequate and
supported by US$492 million in cash and equivalents; US$500
million senior secured revolving credit facility due December
2008, of which US$400 million remains available; and various
receivables sales facilities totaling approximately US$400
million, of which approximately US$100 million remains
available. While Fitch estimates Sanmina's free cash flow for
fiscal 2006 was negative US$473 million, largely due to
increases in working capital driven by higher cash conversion
cycle days, Fitch expects working capital trends to moderate,
which should enable Sanmina to produce positive free cash flow
in fiscal 2007. Pro forma for the US$600 million term loan and
convertible subordinated note redemption, Fitch estimates total
debt was US$1.7 billion consisting of US$100 million drawn
against a US$500 million senior secured revolving credit
agreement; a US$600 million senior unsecured term loan that
expires in January 2008; US$400 million in 6.75% senior
subordinated notes due 2013; and US$600 million in 8.125% senior
subordinated notes due 2016.
Sanmina-SCI Corp., headquartered in San Jose, California, is one
of the largest electronics contract manufacturing services
companies providing a full spectrum of integrated, value added
solutions. In Europe, the company has operations in Finland,
France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin
America, it operates in Brazil and Mexico.
* MEXICO: S&P Says RMBS Continues to Dominate Struc. Fin. Market
----------------------------------------------------------------
Residential mortgage-backed securities or RMBS continue to
dominate and strengthen Mexico's position in the Latin American
securitization market.
RMBS has been the leading asset in Mexico for three years
running, and in 2006, it pulled in 27.5% (or US$1.7 billion) of
the market's overall US$6.1 billion in issuance.
This trend has become entrenched, and RMBS will continue to
surpass other domestic transaction types in the foreseeable
future.
"In 2007, we expect RMBS to be the strongest asset class as
commercial banks enter the market, housing demand continues to
be strong, and Mexico's economy prospers," said credit analyst
Juan De Mollein, a director in Standard & Poor's Ratings
Services' Structured Finance group. To date, Sofoles (Mexican
nonbank originators) and Infonavit (Mexico's largest mortgage
institution) have been the key players in the burgeoning RMBS
sector, with 55% and 38% of the accumulated issued amount,
respectively. In addition, Mexican bank Banco Mercantil del
Norte S.A. aka Banorte became the first commercial bank to
structure an RMBS transaction, which was rated by Standard &
Poor's in December 2006.
On the asset-backed securities or ABS side, activity was
concentrated in auto leases and trade receivables in 2006, as
new consumer and auto loan participants entered the market.
Leasing companies are looking to portfolio securitizations to
cover their increasing funding needs. In 2006, Standard & Poor's
rated the first Mexican credit card transaction and the first
cross-border truck loan securitization. "We believe this is the
first of many auto loan securitizations, and we expect one of
the major automobile companies to become a frequent issuer in
2007," said credit analyst Maria Tapia, an associate director in
the Structured Finance group.
Collateralized debt obligation or CDO structures are also
rapidly expanding, accounting for 6.5% of total issuance volume
in 2006. Standard & Poor's expects this growth to continue in
2007 and beyond, particularly for cash flow CDOs.
Mexico's domestic market, which has driven securitization in the
country in recent years, will continue to grow in 2007, with
total volume expected to increase at least 50%. Total volume in
the structured finance market rose 15.6% to US$6.1 billion in
2006, from US$5.3 billion in 2005. However, if Banco Nacional de
Mexico S.A.'s aka Banamex 2005 IPAB securitization is excluded,
the growth rate jumps to an extraordinary 130.7%.
Although there has been plenty of interest in the Mexican real
estate sector, S&P expects that most Mexican commercial property
loans will continue to be placed into U.S. real estate conduits.
However, domestic commercial mortgage-backed securities or CMBS
issuance may play an important role within the next few years.
Shopping mall, office building, warehouse, and hotel assets have
the potential to leverage their lease payments through CMBS
structures. The REIT (FIBRA) market may also make its debut, as
some fiscal incentives for "fideicomisos inmobiliarios" (real
estate trusts) are already in place, and market participants are
seeking appropriate structures that will enable them to benefit
from debt issuances.
Synthetic structured finance transactions are projected to
generate large issuance amounts in 2007. In 2006, Standard &
Poor's rated several synthetic transactions secured by assets
ranging from real estate to foreign currency-denominated
sovereign bonds.
Partial-credit guarantee activity is expected to remain
constant, with a few issuances in 2007.
Standard & Poor's believes that municipal securitization will
continue to grow and include assets other than the traditional
tax participation. In 2006, the state of Nuevo Leon and the
state of Veracruz refinanced their tax participation bank loans
with two public securitizations backed by vehicle taxes.
Performance of Standard & Poor's rated transactions should
remain stable in the year ahead, reflecting favorable
macroeconomic conditions in Mexico.
=======
P E R U
=======
* PERU: Wants to Ensure Free Trade Pact Approval in US Congress
---------------------------------------------------------------
The governement of Peru wants to make sure that its Free Trade
Accord with the United States is approved before June, Prensa
Latina reports, citing sources.
According to Prensa Latina, the Peruvian congress approved the
free trade pact at the end of Alejandro Toledo's term as
president. Their US counterpart, however, still has to decide
on the agreement.
David Lemor, a representative of the Peruvian government's team
in the US, told Prensa Latina that Peru wants the agreement to
be approved in the first half of 2007. The governemnt
recognizes that the re-composition of the US legislature varied
conditions and facilities.
The government will try to speed up discussion on the agreement
in the US Congress in February, Prensa Latina relates, citing
sources.
Mr. Lemor said that the first step of the Peruvian strategy is
to learn the position of each of the US congressmen in both
houses, and persuade them, Prensa Latina notes.
Mr. Lemor commented to Prensa Latina, "Sooner or later, the
agreement is going to be ratified."
Mr. Lemor insisted on fulfilling the goal before the June
expiration of the Law for Andean General Commercial Promotion,
and Drug Eradication, Prensa Latina states.
* * *
As reported in the Troubled Company Reporter on Nov. 22, 2006,
Standard & Poor's Ratings Services raised its long-term foreign
currency sovereign credit rating on the Republic of Peru to
'BB+' from 'BB' and its long-term local currency sovereign
credit rating to 'BBB-' from 'BB+'. Standard & Poor's also
raised its short-term local currency sovereign credit rating to
'A-3' from 'B', and affirmed its 'B' short-term foreign currency
sovereign credit rating on the republic. The outlook on the
ratings was revised to stable from positive. Standard & Poor's
also raised its assessment of the risk of transfer and
convertibility to 'BBB' from 'BBB-'.
=====================
P U E R T O R I C O
=====================
ALLIED WASTE: Moody's Changes Ratings Outlook to Positive
---------------------------------------------------------
Moody's Investors Service changed the outlook of Allied Waste
Industries, Inc., to positive from stable and affirmed the long-
term debt ratings of Allied Waste and Allied Waste North
America, Inc., along with its wholly-owned subsidiary, Browning-
Ferris Industries, LLC. The improvement in outlook reflects
continuing strength in the industry as a whole and the company's
own pricing initiatives in driving enhanced internal revenue
growth (7.6% in the nine months to Sept. 30, 2006, versus 5% in
2005 and 2.2% in 2004). The change in outlook also takes into
account the stabilization of the level of required capital
expenditures and the emergence of positive free cash flow
(defined as cash from operations less capital expenditures and
dividends) to debt ratios in 2006, albeit at low single digit
levels. Moody's notes that the company has about US$910 of debt
maturities due 2008, which is significant in the context of
total indebtedness.
The ratings benefit from a stable underlying business with
limited available substitutes and the relative lack of
cyclicality in the municipal solid waste industry, the company's
prominent market position and the company's size and diversified
revenue stream, as well as ownership of valuable, permitted
disposal assets. The ratings continue to be constrained by the
company's high financial leverage and weak free cash flow
generation. Although the company has made progress with its
best practices program over the last year and a half, ongoing
implementation costs, fluctuations in fuel costs and cyclical
weakness in construction activity may put pressure on operating
margins. Although Moody's expects ongoing improvements in free
cash flow, such improvements are likely to continue to be
constrained by interest payments and high ongoing capital
expenditure levels.
Sustainable leverage metrics at current levels, combined with
Moody's expectation of continuing positive adjusted free cash
flow and the successful refinancing of about US$910 million of
senior notes due 2008 could lead to an upgrade. Moody's will
also consider potential developments and liquidity implications
of the outstanding dispute with the IRS.
Indications of pricing weakness in the industry, substantial
volume declines (e.g., as a result of a slowdown in construction
activity) which lead to negative free cash flows, debt-financed
acquisitions or additional indebtedness could lead to downward
pressure on the ratings.
These ratings were affirmed:
Allied Waste Industries, Inc.
-- B2 Corporate Family Rating;
-- B2 Probability of Default Rating;
-- Caa1 (LGD5, 87%) rated US$230 million issue of 4.25%
guaranteed senior subordinated convertible bonds due 2034;
-- Caa1 (LGD6, 98%) rated US$600 million issue of 6.25%
senior mandatory convertible preferred stock - conversion
date of March 2008; and
-- Speculative Grade Liquidity Rating is SGL-1.
The outlook for the ratings was changed to positive from stable.
Allied Waste North America, Inc.
-- Ba3 (LGD2, 30%) rated US$1.575 billion guaranteed senior
secured revolving credit facility due 2010;
-- Ba3 (LGD2, 30%) rated US$1.235 billion guaranteed senior
secured term loan due 2012;
-- Ba3 (LGD2, 30%) rated US$490 million guaranteed senior
secured Tranche A Letter of Credit Facility due 2012;
-- B2 (LGD4, 57%) rated US$750 million issue of 8.5%
guaranteed senior secured notes due 2008;
-- B2 (LGD4, 57%) rated US$595 million issue of 7.125%
guaranteed senior secured notes due 2016;
-- B2 (LGD4, 57%) rated US$350 million issue of 6.5%
guaranteed senior secured notes due 2010;
-- B2 (LGD4, 57%) rated US$400 million issue of 5.75%
guaranteed senior secured notes due 2011;
-- B2 (LGD4, 57%) rated US$275 million issue of 6.375%
guaranteed senior secured notes due 2011;
-- B2 (LGD4, 57%) rated US$251 million issue of 9.25%
guaranteed senior secured notes due 2012;
-- B2 (LGD4, 57%) rated US$450 million issue of 7.875%
guaranteed senior secured notes due 2013;
-- B2 (LGD4, 57%) rated US$425 million issue of 6.125%
guaranteed senior secured notes due 2014;
-- B2 (LGD4, 57%) rated US$600 million issue of 7.25%
guaranteed senior secured notes due 2015;
-- B3 (LGD4, 70%) rated US$400 million issue of 7.375%
guaranteed senior unsecured notes due 2014;
Browning-Ferris Industries, LLC - (assumed by Allied Waste
North America, Inc.)
-- B2 (LGD4, 57%) rated US$157 million issue of 6.375% senior
secured notes due 2008;
-- B2 (LGD4, 57%) rated US$96 million issue of 9.25% secured
debentures due 2021;
-- B2 (LGD4, 57%) rated US$294 million issue of 7.4% secured
debentures due 2035;
-- B3 (LGD4, 70%) rated US$280 million of industrial revenue
bonds with various maturities.
Allied Waste North America, Inc., a wholly owned operating
subsidiary of Allied Waste Industries, Inc., is based in
Phoenix, Arizona. Allied Waste is a vertically integrated, non-
hazardous solid waste management company providing collection,
transfer, and recycling and disposal services for residential,
commercial and industrial customers. As of Sept. 30, 2006, the
company operated a network of 299 collection companies, 161
transfer stations, 169 active landfills and 56 recycling
facilities in 37 states and Puerto Rico. For the twelve months
ended Sept. 30, 2006, the company had revenues of approximately
US$6.0 billion.
CENTENNIAL COMMUNICATIONS: Number Portability Gets Telcordia Aid
----------------------------------------------------------------
Telcordia, a provider of telecommunications software and
services, said in a statement that it has been contracted by
Syniverse Technologies, a US wireless telecoms technology
provider, to help the latter in installing number portability
technology for Centennial Communications Corp. in Puerto Rico
and the US.
M2 Presswire relates that Telcordia Service Management Gateway
for Wireless Number Portability will allow number portability
for Centennial Communications in Midwest and Southeast United
States, as well as Puerto Rico and the U.S. Virgin Islands.
"With more than 120 service providers using Telcordia for their
number portability deployments across eight countries, Telcordia
has become the company that Centennial and other service
providers turn to when they want to give wireline and wireless
users more freedom. Market-leading solutions such as the
Telcordia Number Portability Clearinghouse and Telcordia Service
Management Gateway for Wireless Number Portability give service
providers the flexibility to meet government mandates and
improve their competitive positions," Telcordia's Senior Vice
President Rich Jacowleff told M2 Presswire.
Headquartered in Wall, New Jersey, Centennial Communications
Corp. (NASDAQ: CYCL) -- http://www.centennialwireless.com/--
provides regional wireless and integrated communications
services in the United States and the Puerto Rico with
approximately 1.1 million wireless subscribers and 387,500
access lines and equivalents. The US business owns and operates
wireless networks in the Midwest and Southeast covering parts of
six states. Centennial's Puerto Rico business owns and operates
wireless networks in Puerto Rico and the U.S. Virgin Islands and
provides facilities-based integrated voice, data and Internet
solutions. Welsh, Carson, Anderson & Stowe and an affiliate of
the Blackstone Group are controlling shareholders of Centennial.
* * *
As reported in the Troubled Company Reporter on July 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.
PILGRIM'S PRIDE: S&P Cuts Corp. Credit Rating to BB- from BB
------------------------------------------------------------
Standard & Poor's Ratings Services said that the corporate
credit rating on the largest U.S. poultry processor, Pilgrim's
Pride Corp., was lowered to 'BB-' from 'BB'. The ratings were
removed from CreditWatch with negative implications where they
were originally placed on Aug. 21, 2006.
The downgrade reflects the company's highly leveraged financial
profile following the completion of its acquisition of Gold Kist
Inc., the third largest poultry producer in the U.S. Gold Kist
was acquired for US$21.00 per share or US$1.1 billion and the
assumption of US$144 million of debt.
At the same time, Standard & Poor's assigned its 'B' ratings to
the company's proposed US$250 million senior unsecured notes due
2015 and US$200 million of senior subordinated notes due 2017.
Proceeds from this financing will be used to repay the US$450
million bridge term loan used to close the acquisition, along
with an amended and restated bank facility (unrated), on
Jan. 9, 2007. The senior unsecured notes are rated two notches
below the corporate credit rating due to the amount of priority
debt.
The ratings on the outstanding debt of Gold Kist were withdrawn.
The outlook is negative. Pro forma for the transaction,
Pittsburg, Texas-based Pilgrim's Pride will have about US$1.85
billion of debt (adjusted for capitalized operating leases).
Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the
United States, Mexico and in Puerto Rico. Pilgrim's Pride
employs approximately 40,000 people and has major operations in
Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia,
Mexico and Puerto Rico, with other facilities in Arizona,
Florida, Iowa, Mississippi and Utah.
=================================
T R I N I D A D & T O B A G O
=================================
HILTON HOTELS: Declares US$0.04 Per Share Dividend
--------------------------------------------------
Hilton Hotels Corp. declared a dividend of US$0.04 per share,
payable in cash on March 16, 2007, to stockholders of record at
the close of business on March 2, 2007.
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Barbados, Costa Rica and Trinidad and Tobago in Latin
America.
* * *
Moody's Investors Service confirmed its Ba2 Corporate Family
Rating for Hilton Hotels Corp. in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the gaming, lodging and leisure
sectors.
Additionally, Moody's revised and held its probability-of-
default ratings and assigned loss-given-default ratings on these
loans and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
Senior Notes
with an average
rate of 8.1%
due 2007 - 2031 Ba2 Ba2 LGD4 53%
Chilean inflation
indexed note
effective rate
7.65% due 2009 Ba2 Ba2 LGD4 53%
3.375%
Contingently
convertible
senior notes
due 2023 Ba2 Ba2 LGD4 53%
Minimum Leases
Commitments Ba2 Ba2 LGD4 53%
Term Loan A
at adjustable
rates due 2011 Ba2 Ba2 LGD4 53%
Term Loan B
at adjustable
rates due 2013 Ba2 Ba2 LGD4 53%
Revolving loans
at adjustable
rates, due 2011 Ba2 Ba2 LGD4 53%
Senior unsecured
debt shelf Ba2 Ba2 LGD4 53%
Subordinate debt
Shelf Ba3 B1 LGD6 97%
Preferred B1 B1 LGD6 97%
ROYAL CARIBBEAN: Prices EUR1 Billion Senior Notes at 99.638%
------------------------------------------------------------
Royal Caribbean Cruises Ltd. has priced an offering of EUR1
billion of its 5.625% Senior Notes due 2014 at a price of
99.638%.
The net proceeds of the offering are intended to be used to
refinance short-term debt incurred in connection with the
acquisition of Pullmantur S.A., and the balance for general
corporate purposes.
The Senior Notes will not be registered under the Securities Act
of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements.
Royal Caribbean Cruises Ltd. -- http://www.royalcaribbean.com
-- is a global cruise company that operates Royal Caribbean
International and Celebrity Cruises with a combined total of 29
ships in service and six under construction. The company also
offers unique land-tour vacations in Alaska, Canada and Europe
through its cruise-tour division.
* * *
Moody's Investors Service has assigned on June 7, 2006, a Ba1
rating on Royal Caribbean's US$700 million senior unsecured
notes issuance and affirmed all existing long-term ratings.
=============
U R U G U A Y
=============
BANCO DE LA NACION (URUGUAY): Moody's Changes Ratings Outlook
-------------------------------------------------------------
Moody's Investors Service changed its outlook to positive from
stable on the Caa1 long-term foreign-currency deposit ratings
and on the the Ba1.ar national scale foreign-currency deposit
ratings of all rated Argentine banks.
These ratings on Banco de la Nacion Argentina (Uruguay) were
affected by the change in rating outlook:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable;
-- long-term Uruguayan national scale foreign currency rating
of Ba2.uy, outlook to positive from stable; and
-- long-term local currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term Uruguayan national scale local currency deposit
rating of Ba2.uy, outlook to positive from stable.
The outlook changes are a direct result of Moody's changing to
positive, from stable, the outlook on Argentina's Caa1 country
ceiling for foreign currency deposits and the nation's B2
country ceiling for foreign currency bonds and notes.
As a result of this change, Moody's placed on positive outlook
both the B2 foreign-currency debt rating and the A3.ar national
scale foreign-currency debt rating assigned to Banco Macro
S.A.'s Global Medium Term Note Program. Positive outlooks were
also given to the B3 long-term foreign-currency and A3.ar
national scale foreign-currency ratings of the subordinated
notes. In addition, Moody's placed on positive outlook the
provisional (P)B2 global foreign-currency and (P)Aa3.ar national
scale foreign-currency ratings of the senior unsecured notes of
Banco Macro S.A.
Moody's also placed on positive outlook the Ba1.ar national
scale foreign-currency subordinated debt rating assigned to
Banco Patagonia S.A.
In addition, based on the outlook change for the long-term
foreign-currency deposits of Banco de la Nacion Argentina, its
branches in Bolivia and Uruguay have also been affected.
Moody's consequently changed the outlooks to positive of both
the Caa1 long-term local-currency deposit rating and the A2.bo
long-term Bolivian national scale local- currency deposit rating
of Banco de la Nacion Argentina (Bolivia), as well as giving
positive outlooks to the Caa1 long-term local-currency deposit
rating and the Ba2.uy long-term Uruguayan national scale deposit
rating of Banco de la Nacion Argentina (Uruguay).
Also changed to positive from stable are the outlooks on Banco
de la Naci¢n Argentina (Uruguay)'s Caa1 long-term foreign-
currency deposit rating and the Ba2.uy long-term Uruguayan
national scale foreign-currency deposit rating -- the latter
alteration based on the the change in outlook of the Uruguayan
branch's long-term local-currency deposit rating.
The stable outlook on the Bolivian branch's long-term foreign-
currency deposit rating remained unchanged because it continues
to be constrained by Bolivia's country ceiling for foreign-
currency bonds and notes of Caa1.
This action does not affect the bank financial strength ratings
of the rated Argentine banks.
* URUGUAY: Supports Full Incorporation of Bolivia in Mercosur
-------------------------------------------------------------
Uruguay's foreign minister Reinaldo Gargano told EFE News
Service that the full incorporation of Bolivia in Mercosur will
allow the bloc's member nations to benefit from the country's
production of gas and petroleum and other minerals.
Bolivia would stop being a closed nation, which will be
fundamental for its development, EFE News says, citing Minister
Gargano.
According to EFE News, Bolivia has an estimated 48 trillion
cubic feet of natural gas.
However, for Bolivia to become a full Mercosur member it must
leave the Andean Community or CAN, because the nation can't
belong to two separate customs unions, EFE News notes, citing
some analysts.
The CAN consists of Bolivia, Colombia, Ecuador and Peru.
Minister Gargano told EFE News that the incorporation of La Paz
opens up the possibility that soon some other state like Ecuador
could become a full member of the bloc.
The decision by Colombia and Peru to enter trade pacts with
theUS effectively ends CAN's status as a customs union, removing
any barrier for its members' joining Mercosur, EFE News says,
citing Brazil's foreign minister Celso Amorim.
* * *
On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.
=================
V E N E Z U E L A
=================
AMERICAN COMMERCIAL: Launches Tender Offer on 9-1/2% Sr. Notes
--------------------------------------------------------------
American Commercial Lines Inc. disclosed that its wholly-owned
subsidiary, American Commercial Lines LLC, has commenced a cash
tender offer and consent solicitation for any and all of its
outstanding 9-1/2% Senior Notes due 2015 (CUSIP Nos. 02519QAB8,
02519QAA0). There are currently approximately US$119.5 million
in aggregate principal amount of the Notes outstanding. The
tender offer is being made upon the terms, and subject to the
conditions, set forth in the Offer to Purchase and Consent
Solicitation Statement dated Jan. 17, 2007, and related Consent
and Letter of Transmittal, which more fully set the terms of the
tender offer and consent solicitation.
The consent solicitation is scheduled to expire at 5:00 p.m.,
New York City time, on Jan. 30, 2007, unless extended. The
tender offer is scheduled to expire at 5:00 p.m., New York City
time, on Feb. 14, 2007, unless extended. Holders may only
withdraw their tenders before the withdrawal deadline, which is
expected to occur promptly following the Consent Expiration
Date, except as may be required by law or as may be extended
under the Offer to Purchase.
The total consideration for each US$1,000 principal amount of
Notes validly tendered is the price equal to
(i) the sum of
(a) the present value on the initial settlement date of
US$1,047.50 payable on Feb. 15, 2010, plus
(b) the present value on the initial settlement date of
the interest payments that would accrue and be
payable from the last interest payment date prior to
the initial settlement date until the First Call
Date, determined on the basis of a yield equal to the
sum of
(A) the yield to maturity on the 3.5% U.S. Treasury
Note due Feb. 15, 2010, based on the bid-side
price of the Reference Security as of 2:00 p.m.,
New York City time, on Jan. 30, 2007, as
displayed on the Bloomberg Government Pricing
Monitor Page PX5, plus
(B) 50 basis points, minus
(ii) accrued and unpaid interest to, but not including, the
initial settlement date.
The total consideration includes a consent payment of US$30.00
per US$1,000 principal amount of Notes payable in respect of
Notes validly tendered and not withdrawn and as to which
consents to the proposed amendments are delivered on or prior to
the Consent Expiration Date. Holders must validly tender on or
prior to the Consent Expiration Date and not withdraw Notes in
order to be eligible to receive the total consideration for such
Notes purchased in the tender offer. Holders who validly tender
their Notes after the Consent Expiration Date and on or prior to
the Offer Expiration Date will be eligible to receive an amount,
paid in cash, equal to the total consideration less the US$30.00
Consent Payment per US$1,000 principal amount of Notes. Holders
whose Notes are accepted for payment in the offer will receive
accrued and unpaid interest in respect of such purchased Notes
from the last interest payment date to, but not including, the
applicable settlement date.
Holders tendering Notes will be required to consent to proposed
amendments to the indentures governing the Notes, which will
eliminate substantially all of the restrictive covenants,
several affirmative covenants and certain events of default
contained in the indenture and modify the covenant regarding
mergers, consolidations and transfers of the company's
properties and assets. Adoption of the proposed amendments
requires the consent of at least a majority of the outstanding
principal amount of the Notes. The consummation of the tender
offer and consent solicitation is subject to the conditions set
forth in the Offer to Purchase, including, among other things,
the receipt of consents of Note holders representing the
majority in aggregate principal amount of the Notes.
The complete terms and conditions of the tender offer and
consent solicitation are described in the Offer to Purchase,
copies of which may be obtained by contacting the information
agent for the tender offer and consent solicitation at:
Global Bondholder Services Corporation
Tel: 866-794-2200 (toll free)
Questions regarding the tender offer and consent solicitation
may be directed to the dealer manager for the tender offer and
consent solicitation at:
Merrill Lynch & Co.
Tel: 888-654-8637 (toll free)
Headquartered in Jeffersonville, Indiana, American Commercial
Lines Inc. -- http://www.aclines.com/-- is an integrated marine
transportation and service company operating in the United
States Jones Act trades, with revenues of more than US$740
million and approximately 2,600 employees as of Dec. 31, 2005.
The company filed for chapter 11 protection on Jan. 31, 2003
(Bankr. S.D. Ind. Case No. 03-90305). Suzette E. Bewley,
Esq., at Baker & Daniels represented the company in its
successful restructuring efforts. The Bankruptcy Court approved
the company's Plan of Reorganization on Dec. 30, 2004, which
allowed the company to emerge from bankruptcy on Jan. 11, 2005.
American Commercial has operations in Venezuela.
* * *
As reported in the Troubled Company Reporter on Sept. 11, 2006,
Moody's Investors Service raised American Commercial Lines LLC's
Corporate Family Rating to B1 from B2, and affirmed the B3
senior unsecured and the SGL-2 Speculative Grade Liquidity
ratings. Moody's said the rating outlook is stable.
AMERICAN COMM: Debt Tender Offer May Cue S&P to Withdraw Ratings
----------------------------------------------------------------
American Commercial Lines Inc. disclsoed that its wholly owned
subsidiary, American Commercial Lines LLC (BB-/Positive/--), has
commenced a cash tender offer and consent solicitation for its
9-1/2% senior notes due 2015, of which there is currently
US$119.5 million outstanding. Standard & Poor's Ratings
Services said that its rating and outlook on American Commercial
Lines is unaffected by the announcement at this time but that it
expects to withdraw the ratings upon the successful completion
of the tender offer. The tender offer is scheduled to expire on
Feb. 14, 2007, unless extended.
Headquartered in Jeffersonville, Indiana, American Commercial
Lines Inc. -- http://www.aclines.com/-- is an integrated marine
transportation and service company operating in the United
States Jones Act trades, with revenues of more than US$740
million and approximately 2,600 employees as of Dec. 31, 2005.
The company filed for chapter 11 protection on Jan. 31, 2003
(Bankr. S.D. Ind. Case No. 03-90305). Suzette E. Bewley,
Esq., at Baker & Daniels represented the company in its
successful restructuring efforts. The Bankruptcy Court approved
the company's Plan of Reorganization on Dec. 30, 2004, which
allowed the company to emerge from bankruptcy on Jan. 11, 2005.
American Commercial has operations in Venezuela.
PETROLEO BRASILEIRO: Mulling Venezuelan Project Investments
-----------------------------------------------------------
"Petrobras (Petroleo Brasileiro) is considering issues related
to the investments required to undertake gas production projects
in Venezuelan territorial waters and oil projects in five mature
land oilfields, currently operated by Pdvsa (Petroleos de
Venezuela)," Petroleo Brasileiro said in a statement.
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2007, Petroleo Brasileiro would forge joint ventures
with Petroleos de Venezuela to explore the mature fields.
Petroleo Brasileiro told Business News Americas that its senior
officers met with their Petroleos de Venezuela counterparts on
Jan. 18 to evaluate joint gas and oil exploitations projects, as
well as construction of a major gas pipeline and plant.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
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, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan and Singapore.
It also operates in Venezuela through wholly owned subsidiary
PESA, which is controlled through the firm's Argentina-based
unit Petrobras Energia.
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.
PETROLEOS DE VENEZUELA: Director Spends US$21.3MM in Releases
-------------------------------------------------------------
Gente del Petroleo, a civil association in Venezuela, complained
to El Universal that Raul A. Soto, the fiscal audit director at
state oil firm Petroleos de Venezuela SA, has spent US$21.3
million in summons on the press to 60 former workers illegally
dismissed from the firm.
Eddy Ramirez, Gente del Petroleo's spokesperson, told El
Universal, "Interestingly, Mr. Raul A. Soto M. has made them
publish in four newspapers. This has a total cost of US$21.3
million."
Spending such a large amount of money in summoning people whose
whereabouts are known is superfluous, El Universal says, citing
Mr. Ramirez.
Mr. Ramirez also claimed that in the summons, the name of the
same person has been repeated, according to El Universal.
Mr. Soto incurred serious negligence that has cost Venezuela
plenty of money, El Universal states, citing Mr. Ramirez.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.
PETROLEOS DE VENEZUELA: Inks Joint Projects with Petrobras
----------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras and Petroleos de Venezuela
aka PDVSA senior executives met on Jan. 17, 2007, to discuss
details on the projects the two companies have been developing
jointly. Petrobras and PDVSA presidents, Jose Sergio Gabrielli
and Rafael Ramires, in addition to several company directors and
managers, attended the meeting. The two presidents signed a
Letter of Intentions on Jan. 18 consolidating the subject
matters they had already agreed in their recent meetings.
The projects under analysis are part of a set of agreements the
two companies have signed since 2005 and are still under
studies, pursuant to the routine that was established aiming at
finding solutions that allow the business to materialize.
Petrobras is studying investments in gas production projects in
Venezuelan territorial waters, in oil production projects in
five mature onshore fields, currently operated by PDVSA, as well
as in a field called Carabobo-1, in the region known as the
Orinoco Range, on the northern margin of the river that takes
the same name. The projects involving the gas pipeline intended
to connect Brazil and Venezuela, over and beyond PDVSA's
participation in the Abreu e Lima refinery, which is already in
its basic engineering phase at the Petrobras' Research Center or
CENPES and is planned to be built near the Suape port, in the
Brazilian state of Pernambuco, were also detailed.
The Letter of Intentions signed highlights these projects:
1. The conditions for Petrobras' involvement in the
development of five oil fields in the interior of
Venezuela, involving a 40% stockholding for Petrobras,
and 60% for PDVSA;
2. The mutual interest in developing a plant in Venezuela to
improve the extra-heavy oil that comes from the Orinoco
Range, with participation percentages yet to be defined;
3. The creation of a mixed company in Venezuela, resulting
from PDVSA's association with Petrobras, to develop the
Carabobo-1 extra-heavy oil field, with PDVSA's
shareholding control. In turn, Petrobras will be the
controller of company to be created in Brazil to design,
build and operate the Abreu e Lima Refinery, in the
Brazilian state of Pernambuco.
4. The continuation of the economic viability studies to
develop the Mariscal Sucre gas complex, considering the
destination of half of the production (17,000,000 cubic
meters per day) to the Venezuelan internal market, while
the other half to the initial phase of the gas pipeline
that will connect Venezuela to Northeastern Brazil. At
full capacity, it is estimated the gas pipeline will be
capable of transporting 50,000,000 million cubic meters
of gas per day, coming from other Venezuelan fields.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
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, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan and Singapore.
It also operates in Venezuela through wholly owned subsidiary
PESA, which is controlled through the firm's Argentina-based
unit Petrobras Energia.
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.
UNIVERSAL COMPRESSION: Acquires B.T. Engineering
------------------------------------------------
Universal Compression Holdings, Inc., has acquired B.T.
Engineering Pte Ltd, a Singapore-based fabricator of oil and
gas, petrochemical, marine and offshore equipment, including
pressure vessels, FPSO (floating production, storage and
offloading) process modules, terminal buoys, turrets, natural
gas compression units and related equipment. BTE currently has
approximately 400 full-time and contract employees and a
fabrication yard of approximately 45,000 square meters,
including a workshop facility of approximately 7,000 square
meters, and 270 meters of waterfront.
"The BTE operation is an excellent addition to our international
activities and a strategic complement to our existing
fabrication capabilities," said Brad Childers, Senior Vice
President and President of Universal's International Division.
"With this transaction, Universal has expanded its product
offering to meet a wider range of production-related customer
requirements and added a centrally-located operation for the
cost-efficient fabrication of compressor equipment for Asia-
Pacific and other markets."
"BTE is pleased to be joining forces with Universal
Compression," said B.T. Gay, BTE's founder and Chief Executive
Officer. "We will continue our commitment to provide quality
fabrication products and services to BTE's existing customers
and traditional markets while also working to expand the market
penetration of Universal's compression business lines."
"We are excited about this opportunity to expand our fabrication
operations," said Stephen A. Snider, Universal's Chairman,
President and Chief Executive Officer. "We look forward to
working with the outstanding BTE management, administrative and
fabrication employee team as we continue to seek growth
opportunities in key international markets. In conjunction with
this expansion of our global fabrication capacity, we plan to
establish the regional headquarters for our Asia-Pacific
operations in Singapore. Universal's current Asia-Pacific
business includes natural gas compressor sales and service
operations in Australia, China, Indonesia and Thailand."
Headquartered in Houston, Texas, Universal Compression, Inc. --
http://www.universalcompression.com/-- provides natural gas
compression equipment and services, primarily to the energy
industry in the United States, as well as in Canada, Venezuela,
Argentina, Columbia, and Australia.
* * *
As reported in the Troubled Company Reporter on Nov. 23, 2006,
Standard & Poor's Ratings Services raises its corporate credit
rating on Universal Compression Holdings Inc. to 'BB' from
'BB-'. At the same time, assigns its 'BB' rating and '3'
recovery rating to Universal Compression's US$500 million
revolving credit facility. The Houston, Texas-based oilfield
services company had approximately US$807 million in debt
outstanding following the IPO of its subsidiary Universal
Compression Partners L.P.
* VENEZUELA: To Nationalize Seneca in First Half of 2007
--------------------------------------------------------
The Venezuelan government will nationalize Seneca, a power
company controlled by US firm CMS Energy, in the first half of
this year, Business News Americas reports, citing deputy energy
and oil minister Maria Gabriela Gonzalez.
Government and Seneca sources told BNamericas that Minister
Gonzalez, along with Cuban officials, visited the company's
headquarters on Margarita Island in Nueva Esparta.
BNamericas relates that the Venezuelan government also wants to
nationalize:
-- Electricidad de Caracas, controlled by AES Corp.;
-- Genevapca, which serves refining complex CRP and is
also controlled by AES Corp.; and
-- Eleval in Carabobo.
According to Agencia Bolivariana de Noticias, Seneca is not
objecting to nationalization plans.
Seneca's general manager Jorge Depresbiteris told Agencia
Bolivariana, "The decision to nationalize is a state policy and
we respect it. We do not have any position against it and we
wish only to comply with whatever the law establishes for this
matter."
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'. Fitch said the outlook on the
ratings remains stable.
* Strong Exports & High Commodity Prices Adds Growth in LatAm
-------------------------------------------------------------
InvestorIdeas, a content provider of global investor and
industry news and research resource portals, reviews the growing
opportunities in renewable energy, mining, technology and
digital media within key South American markets. Strong
exports, high commodity prices and increased investments have
been contributing factors to growth within many of the Latin
American markets. As a result, many companies are working to
capitalize across a variety of sectors such as DVD manufacturer
Infosmart Group, Inc. in the digital media and tech market, ZAP
and Rotoblock Corp. taking advantage of the growing demand for
alternative and renewable transportation, as well as GoldenPeaks
Resources Ltd. and other mining companies pursuing resource
plays within Argentina and surrounding areas.
According to IDC Worldwide PC Tracker December 2006, Brazil's
computer sales, to include desktops, notebooks and ultra
portables, increased 21.5% to just under 1.79 million units in
the third quarter of 2006, in comparison to the same time period
in 2005.
The DVD player market possibly has the greatest potential for
growth in Brazil's entire entertainment hardware sector, a key
factor behind the decision by DVDR manufacturer Infosmart Group,
Inc., to establish a production facility in Brazil through its
subsidiary Infosmart Discobras. The company's DVD production
from its Brazil facility is expected to begin in February 2007,
with sales anticipated to contribute approximately 40% of the
group revenue.
Brazil is also the world's largest producer and exporter of
sugar cane-based ethanol. Brazil's success in alternative fuels
has led to the mass adoption of vehicles that run on pure
ethanol, or a gasoline-ethanol blend termed gasohol and the
overall acceptance of 'green' transportation technology.
Brazilian automotive company Obvio ! has developed unique flex-
fuel and electric microcars suitable for 3 adults. Each
microcar, measuring only nine feet in length, which comes in
either flex-fuel or all-electric models, achieves approximately
29 mpg in the city and over 40 mpg on the highway. Obvio ! has
teamed up with California-based alternative vehicles developer
and distributor ZAP to break into the North American market with
estimates of launching 50,000 of the flex-fuel cars in mid to
late 2008 for approximately US$14,000 per vehicle. ZAP is the
exclusive North American distributor for Obvio ! and owns 20% of
the Brazilian company.
Obvio ! is also pursuing further efficiencies through its
development and licensing agreement with technology development
company, Rotoblock Corp., specializing in advanced propulsion
systems for the integration of their Oscillating Piston Engine
into Obvio ! 828, the 012 and future models. The energy
efficiency, small size and reduced emissions make Rotoblock's
OPE suitable for use with Obvio's hybrid applications.
Chile has garnered considerable attention as the largest copper
producer in the world and with copper prices seeing record highs
in 2006, the region has reaped the economic rewards as GDP
growth reached over 6% in 2005 and over 5% for 2006.
Argentina is the second-largest country in South America next to
Brazil with rich natural resources and strong GDP growth between
8-9% over the past few years. As a result of historical
political uncertainty Argentina has seen relatively little
exploration when compared to nearby regions such as Chile and
Brazil. However, as the political climate has significantly
improved so has the investment potential of this region.
Evidence of this is seen in the participation by many resource
companies such as GoldCorp Inc, Golden Peaks Resources Ltd., and
Barrick Gold Corp.
Golden Peaks Resources Ltd., an exploration and resource
development company, holds more than 385,000 acres of
prospective land holdings in four of Argentina's most
established mining districts. The company's main focus is on
five high priority gold projects within Argentina covering the
provinces of La Rioja, Neuquen, and Chubut. Golden Peaks' La
Fortuna project in Chubut, Argentina is located in the same
region as the nearby Esquel and Navidad deposits and exhibits
distinct geological characteristics which the company believes
to be evidence of its potential to be the region's next major
gold discovery.
Overall, while emerging markets can potentially be volatile due
in large part to political risk, the strong demand across
sectors such as alternative energy and transportation, mining
and many segments within technology continue to present signs of
long term opportunity.
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* IDB Creates Cluster to Promote Clean Energy Markets
-----------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund disclosed the creation of a new cluster of activities
focused on Promoting Clean Energy Markets. This initiative will
help small enterprises gain access to clean energy market
opportunities while improving their competitiveness.
"In Latin America and the Caribbean, energy efficiency and
renewable energy offer great potential to reduce the negative
effects of increasing energy costs," said IDB Team Leader Daniel
Shepherd.
"The new MIF cluster will promote new financial instruments in
the clean energy market and assist in the creation of capacities
required by smaller firms to serve this market," added Mr.
Shepherd. "Projects in the cluster will share the same
technical theme and development goals to generate economies of
scale and disseminate best practices. They will also seek to be
innovative, combining existing models with newer approaches to
create a catalytic effect in the region."
IDB programs to promote renewable energy and energy efficiency
opportunities play a growing role in Central America in the
context of the Plan Puebla Panama and in connection with the
Initiative for the Integration of Regional Infrastructure in
South America or IIRSA.
Cluster network participants will include stakeholders in MIF
donor countries, including governments, private sector
organizations, civil society organizations and universities.
The new cluster has already approved two financings for projects
to support market opportunities for clean energy: A US$975,000
grant to Fundacion Chile and a US$600,000 grant to the Ecologica
Institute to work in rural areas of Tocantins, Brazil.
Fundacion Chile
This project will foster the use of renewable energy and energy
efficiency by facilitating access to market-based economic
incentives that support the use of low carbon-emitting
technologies. It will increase market opportunities for small
and medium enterprises and improve their competitiveness.
Projects selected will include:
-- small and medium-sized agro-industry and agricultural
producers;
-- firms involved in commercial and residential
air-conditioning;
-- energy engineering;
-- hospitals, public schools and hotels; and
-- refrigeration and freezer service companies.
Energy service companies, most of which are small and medium-
sized, will also be a target group for this project and will
benefit from support to create a viable market with potential to
grow significantly in the next few years due to increased
interest in energy cost savings among private and public
clients.
Fundacion Chile is a not-for-profit private corporation
established in 1976 to promote the use of technology and support
new private enterprises in the market.
Ecologica Institute
This project will contribute to the socioeconomic development of
rural areas in the north of Brazil. It will implement an
integrated model for the production and marketing of an
alternative biofuel and other by-products from rural areas of
Tocantins in Brazil.
Around 160 producer families in two targeted settlements and
producers in other neighboring communities will benefit from
training and access to mini-processing facilities, as well as
other producers that utilize animal feed by-products from sweet
potato production to increase cattle and dairy production. In
most of Tocantins' recently colonized poor settlements, sweet
potato production offers an alternative source of income due to
climatic and agroecological conditions and lower capital costs.
Brazil has become a world leader in the production of biofuels
thanks to a program initiated by the government in the 1970s.
Today about a third of Brazilians use biofuel (ethanol) in their
vehicles. It is estimated that a 1 percent substitution of
petroleum-based diesel for biodiesel produced by small farmers
could generate 45,000 jobs paying US$2,000 each per year.
Ecologica Institute is a nongovernmental organization created in
2000 to improve the quality of life of local communities by
conserving the natural environment and culture and fostering
sustainable development values.
The Multilateral Investment Fund is an autonomous fund,
administered by the IDB. It provides grants, investments and
loans to promote private sector growth, labor force training and
small enterprise modernization in Latin America and the
Caribbean.
***********
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