/raid1/www/Hosts/bankrupt/TCRLA_Public/070216.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, February 16, 2007, Vol. 8, Issue 34
Headlines
A R G E N T I N A
DEL CAMINO: Trustee Verifies Proofs of Claim Until March 13
EL PASO: Declares US$0.04 Per Share Quarterly Dividend
HUNTSMAN: Board OKs 1st Quarterly US$0.10 A Share Cash Dividend
JACHIA MOLINARI: Claims Verification Is Until April 13
LEAR: Shareholder to Vote Against American Real's Buyout Bid
LEAR CORP: To Unveil First Quarter 2007 Results on April 25
SUNTRANSFER SA: Claims Verification Is Until April 20
SUPLE CENTRO: Trustee Verifies Proofs of Claim Until March 22
TELECOM ARGENTINA: SBS Ups Target Price to ARS18.24 A Share
B A H A M A S
HARRAH'S ENTERTAINMENT: Fitch May Cut Ratings on LBO by Apollo
B E R M U D A
CENVEO: S&P Affirms B+ Corporate Credit Rating, Removes Watch
EURO-ASIA FOOD: Final General Meeting Is Set for March 23
GC IMPSAT: Closes 9.875% US$225-Million Senior Notes Offering
INTELSAT: Appoints William Shernit as New Subsidiary President
MONTPELIER RE: Increases Book Value Per Share by 33% in 2006
B O L I V I A
* BOLIVIA: Foreign Firms Contract Delays Won't Affect Economy
* BOLIVIA: Soldiers Seizes Vinto Complex from Glencore
B R A Z I L
AMERICAN TOWER: Moody's Raises Corporate Rating to Ba1 from Ba2
AUTOCAM CORP: S&P Puts B Rating on Proposed US$150-Million Debt
BANCO BRADESCO: Unsure of Postal Contract Renegotiation with Gov
BANCO NACIONAL: Okays BRL7-Mil. Financing to Audiovisual Chain
COMPANHIA SIDERURGICA: Plans Large Investments in Portugal
HSBC BRASIL: S&P Affirms BB/B Rating Due to Higher Credit Risk
HUGHES COMM: Unit Inks US$115MM Loan Facility with Bear Stearns
PETROLEOS BRASILEIRO: Agrees to Pay More for Bolivian NatGas
SOLECTRON CORP: Michael Cannon Resigns as CEO; Joins Dell
UNIAO DE BANCOS: Posts BRL2,210 Million 2006 Net Income
VALMONT INDUSTRIES: Posts US$328.0MM Fourth Quarter 2006 Sales
C A Y M A N I S L A N D S
CAI GLOBAL: Proofs of Claim Must be Filed by March 5
CYPRESS GOLF: Proofs of Claim Must be Filed by March 5
CYPRESS GOLF: Proofs of Claim Must be Filed by March 5
GUARDIAN INDUSTRIES: Proofs of Claim Must be Filed by March 6
HORIZON INT'L: To Hold Final Shareholders Meeting on March 5
ILIAD CAPITAL: Sets Final Shareholders Meeting for March 6
JFK 2001: Proofs of Claim Must be Filed by March 5
MEITRAN HOLDING: Proofs of Claim Must be Filed by March 5
MILLENNIUM GROWTH: Proofs of Claim Must be Filed by Jan. 17
PERENNIAL INVESTMENTS: Proofs of Claim Must be Filed by May 18
REDWOOD CAPITAL: Proofs of Claim Must be Filed by March 5
REDWOOD CAPITAL: Final Shareholders Meeting Is Set for March 5
REDWOOD CAPITAL VI: Proofs of Claim Must be Filed by March 5
SALESSE LTD: Proofs of Claim Must be Filed by March 6
SITKA INVESTMENTS: Final Shareholders Meeting Is Set for March 5
C O L O M B I A
BANCO DE BOGOTA: Holding Shareholders Meeting on March 21
D O M I N I C A N R E P U B L I C
BANCO INTERCONTINENTAL: CenBank Audit Hearing Moved to Feb. 19
E C U A D O R
BANCO DEL PICHINCHA: Fitch Affirms Low B Foreign Curr. Ratings
BANCO DELA PRODUCCION: Fitch Affirms Low B Foreign Curr. Ratings
E L S A L V A D O R
MILLICOM INTERNATIONAL: Posts US$544MM Fourth Quarter Revenues
G U A T E M A L A
BRITISH AIRWAYS: New Baggage Charging Policy Takes Effect
H O N D U R A S
DOLE FOOD: Unit Launches Web Site with Many Interactive Tools
J A M A I C A
SUGAR COMPANY: Makes First Shipment to London
SUGAR COMPANY: Minister Clarke Provides Details on Loan
* JAMAICA: Gov't Using Oil Savings to Pay for Sugar Co.'s Debts
M E X I C O
ADVANCED MARKETING: Panel Objects to Capstone as Advisor
ADVANCED MARKETING: Hires Focus Management as Financial Advisor
DIRECTV GROUP: Inks Interactive Usage Accord with Nielsen Co.
FOAMEX: Chap. 11 Emergence Cues S&P to Raise Rating to B from D
GUESS? INCREASE: Board Okays Two-for-One Stock Split
PORTRAIT CORP: Section 341 Meeting Slated Today
SANMINA-SCI: S&P Lowers Ratings After Operating Results Review
SEMINOLE HARD: Moody's Assigns B1 Rating on US$500-Million Notes
SEMINOLE TRIBE: Moody's Puts Ba1 Rating on New US$700M Term Loan
FORD MOTOR: Merrill Lynch Cuts Recommendation on Shares to Sell
VALASSIS COMM: ADVO Buy Prompts S&P to Lower Credit Rating to B+
VALASSIS: S&P's Rating Triggers Holders' Right to Convert Notes
P A R A G U A Y
* PARAGUAY: Power Company Outlines 2007 to 2011 Work Plan
P U E R T O R I C O
ADELPHIA COM: Time Warner Cable Becomes Public; To Trade at NYSE
HECTOR MERCADO: Case Summary & 16 Largest Unsecured Creditors
HOME PRODUCTS: Files Schedules of Assets & Liabilities
HOME PRODUCTS: Hires Morris Anderson as Financial Advisor
MMM HOLDINGS: Moody's Puts Ratings on Review, Likely Downgrade
UNITED AIRLINES: Inks Mileage Promo Partnership with Shop4Miles
V E N E Z U E L A
DAIMLERCHRYSLER: Reports EUR3.2 Bil. Preliminary 2006 Net Income
DAIMLERCHRYSLER: Chrysler Discloses Recovery/Transformation Plan
ELECTRICIDAD DE CARACAS: S&P Revises Outlook to Developing
PETROLEOS DE VENEZUELA: Increasing Daily Output to 80K Barrels
PETROLEOS DE VENEZUELA: Using U.S. Dollars in Payments
* VENEZUELA: Moody's Affirms B1 Ratings on Orinoco Projects
* IDB Okays New Regional Strategy for Support to CARICOM
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A R G E N T I N A
=================
DEL CAMINO: Trustee Verifies Proofs of Claim Until March 13
-----------------------------------------------------------
Patricia Monica Narduzzi, the court-appointed trustee for Del
Camino S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until March 13, 2007.
Ms. Narduzzi will present the validated claims in court as
individual reports on May 4, 2007. A court in Lomas de Zamora,
Buenos Aires, will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Del Camino 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 Del Camino's
accounting and banking records will be filed in Court on
June 25, 2007.
Mr. Narduzzi is also in charge of administering Del Camino's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Del Camino S.R.L.
Juan Domingo Peron 2330 Banfield
Partido de Lomas de Zamora
Buenos Aires, Argentina
EL PASO: Declares US$0.04 Per Share Quarterly Dividend
------------------------------------------------------
El Paso Corp.'s board of directors declared a quarterly dividend
of US$0.04 per share on the company's outstanding common stock.
The dividend will be payable April 2, 2007, to shareholders of
record as of the close of business on March 2, 2007.
Outstanding shares of common stock entitled to receive dividends
as of Jan. 31, 2007, were 698,708,087.
Headquartered in Houston, Texas, El Paso Corp. (NYSE:EP)
-- http://www.elpaso.com/-- provides natural gas and related
energy products in a safe, efficient, and dependable manner.
The company owns North America's largest natural gas pipeline
system and one of North America's largest independent natural
gas producers. The company has operations in Argentina.
* * *
As reported in the Troubled Company Reporter on Oct. 17, 2006,
Moody's Investors Service revised its corporate family rating on
El Paso Corp. to B2 in connection with its implementation of
the new Probability-of-Default and Loss-Given-Default rating
methodology for the broad energy midstream sector.
HUNTSMAN: Board OKs 1st Quarterly US$0.10 A Share Cash Dividend
---------------------------------------------------------------
Huntsman Corp.'s board of directors has approved initiation of a
quarterly cash dividend for its common stock and has declared a
US$0.10 per share cash dividend, payable on March 30, 2007, to
shareholders of record as of March 15, 2007.
"Having taken major strides to strengthen the company's balance
sheet through positive operating cash flows, funds raised in our
IPO (international public offering), and the proceeds from our
ongoing divestitures of our commodity petrochemical businesses,
it is now time to return some of our free cash flow to our
shareholders," Huntsman president and chief executive officer
Peter R. Huntsman said.
Huntsman founder and chairperson Jon M. Huntsman noted, "Our
board of directors has every confidence that solid financial
results will continue. The board was pleased to approve this
first quarterly dividend. Our focus going forward is to
strongly enhance shareholder value through growth and
innovation."
Huntsman Corp. -- http://www.huntsman.com/-- manufactures and
markets differentiated and commodity chemicals. Its operating
companies manufacture products for a variety of global
industries including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction,
technology, agriculture, health care, detergent, personal care,
furniture, appliances and packaging. The company maintains
operations in Argentina, Australia, Brazil, China, Germany, and
the United Kingdom, among others.
* * *
As reported on Jan. 16, 2007, Standard & Poor's Ratings Services
affirmed its 'BB-' corporate credit rating and other ratings on
Salt Lake City, Utah-based chemicals producer Huntsman Corp. and
its subsidiary Huntsman International LLC.
As reported on Nov. 2, 2006, Moody's Investors Service assigned
a B3 rating to Huntsman International's proposed US$400 million
senior subordinated notes. Moody's also assigned Loss Given
Default Assessment of LGD6 to these notes in accordance with its
Loss-Given-Default rating methodology that was initially
implemented at the end of September 2006.
JACHIA MOLINARI: Claims Verification Is Until April 13
------------------------------------------------------
Mauricio Leon Brawer, the court-appointed trustee for Jachia,
Molinari y Asociados SRL's bankruptcy proceeding, will verify
creditors' proofs of claim until April 13, 2007.
Under the Argentine bankruptcy law, Mr. Brawer is required to
present the validated claims in court as individual reports.
Court No. 1 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 Jachia, Molinari and
its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Brawer will also submit a general report that contains an
audit of Jachia, Molinari's accounting and banking records. The
report submission dates have not been disclosed.
Jachia, Molinari y Asociados SRL was forced into bankruptcy at
the behest of Osecac, which it owes US$3,992.31.
Clerk No. 2 assists the court in the proceeding.
The debtor can be reached at:
Jachia, Molinari y Asociados SRL
Avenida C¢rdoba 950
Buenos Aires, Argentina
The trustee can be reached at:
Mauricio Leon Brawer
Sarmiento 2593
Buenos Aires, Argentina
LEAR: Shareholder to Vote Against American Real's Buyout Bid
------------------------------------------------------------
If the current proposal by Carl Icahn's American Real Estate
Partners L.P. to purchase Lear Corp. for US$36 per share is put
to a shareholder vote, Evercore Asset Management LLC intends to
vote against the transaction.
Two Key Objections
First, EAM believes the current offer price does not fairly
reflect the value of Lear, as Lear management has taken a
series of actions in recent months designed to generate
increased value for shareholders. These include the:
* Refinancing of the company's long-term debt;
* Divestiture of the company's European interiors business;
* Planned joint venture for the U.S. interiors business; and
* Ongoing restructuring of the core seating business.
EAM believes Lear's management should be commended for these
actions, as well as others being contemplated, and believes that
over time they have the potential to restore to Lear sustainable
earnings in excess of US$4 per share.
"This is a level of earnings that is less than what Lear earned
only two years ago and, indeed, less than what it has earned
throughout most of this decade," Greg Sawers, Chief Executive
Officer of EAM, said. "Against that type of earnings power, a
price of US$36 per share is simply unreasonable and we therefore
strongly oppose the proposed transaction with Mr. Icahn."
Second, EAM recommends that to the extent Lear wants to put
itself up for sale, it should do so through a simple, open and
conventional auction process. EAM believes Lear has effectively
handicapped the process in favor of Mr. Icahn, as the "go shop"
clause of the current agreement permits Lear and American Real
Estate Partners to commence deal closing preparations
immediately, before the existence of any other bids can even be
determined.
Moreover, the clause expires in 45 days, creating a significant
time hurdle for other parties to adequately assess their
interest. Contrast this with the fact that Mr. Icahn had
already been working with Lear management for several months
before making his bid. An added impediment to the emergence of
a competitive bid is the fact that Lear's agreement includes a
break-up fee of up to US$85 million in addition to up to US$15
million in expense reimbursements.
While EAM is a relatively small shareholder of Lear, it takes
seriously its fiduciary obligations to its clients. In that
spirit, it cannot support the proposed transaction.
As reported in the Troubled Company Reporter on Feb. 12, 2007,
Lear and American Real Estate Partners entered into an agreement
for Lear to be acquired by AREP, in a transaction valued at
approximately US$5.3 billion, including the assumption of debt.
Under the terms of the agreement, Lear shareholders would
receive US$36.00 per share in cash. Closing is expected to
occur by the end of the second quarter of 2007.
Under the terms of the agreement, Lear may solicit alternative
proposals from third parties for a period of 45 days from the
execution of the agreement and intends to consider any such
proposals with the assistance of its independent advisors. In
addition, Lear may, at any time, subject to the terms of the
merger agreement, respond to unsolicited proposals. If Lear
accepts a superior proposal, a break-up fee would be payable to
AREP.
"Following a very thorough review of the proposed transaction,
our Board unanimously concluded that the AREP offer was in the
best interests of Lear's shareholders," Bob Rossiter, Lear's
chairman and chief executive officer, commented. "We believe
that the transaction price, which represents a multiple of about
9x our forecasted 2007 core operating earnings -- excluding the
Interior business, provides shareholders with significant value.
Furthermore, we intend to solicit other offers to ensure that
value is maximized for all of our shareholders."
"Lear is an excellent company with a strong management team in
place," said Carl Icahn. "We look forward to working with
Lear's team to improve its long-term competitiveness, capitalize
on growth opportunities globally and to build an even stronger
and more valuable company in the future."
In connection with the transaction, J.P. Morgan Securities Inc.
served as a financial advisor and Winston & Strawn, LLP served
as legal counsel to a Special Committee of Lear's Board of
Directors. Bank of America provided American Real Estate
Partners, L.P. with debt financing commitments for this
transaction.
The agreement is subject to the affirmative vote of the holders
of a majority of the outstanding shares of Lear common stock,
regulatory filings and approvals and other customary closing
conditions. Upon the closing of the transaction, shares of Lear
common stock will no longer be listed on the New York Stock
Exchange or publicly-traded.
About Evercore Asset Management
Evercore Asset Management, LLC, is an institutional investment
management firm that makes high conviction value investments in
small- and mid-cap companies. EAM was established in late 2005
when four longtime colleagues and value investors, with working
relationships that span two decades, formed an alliance with
Evercore Partners -- a leading financial services boutique -- to
create a value-based asset management organization.
About American Real Estate
Headquartered in New York City, American Real Estate Partners,
LP (NYSE:ACP) -- http://www.arep.com/-- a master limited
partnership, is a diversified holding company engaged in a
variety of businesses. The company's businesses currently
include gaming, oil and gas exploration and production, real
estate and home fashion. The company is in the process of
divesting its Oil and Gas operating unit and their Atlantic City
gaming property.
The company owns a 99% limited partnership interest in American
Real Estate Holdings Limited Partnership. Substantially all of
the assets and liabilities are owned by AREH and substantially
all of the company's operations are conducted through AREH and
its subsidiaries. American Property Investors, Inc., or API,
owns a 1% general partnership interest in both the company and
AREH, representing an aggregate 1.99% general partnership
interest in the company and AREH. API is owned and controlled
by Mr. Carl C. Icahn.
About Lear Corp.
Headquartered in Southfield, Michigan, Lear Corporation (NYSE:
LEA) -- http://www.lear.com/-- supplies automotive interior
systems and components. Lear provides complete seat systems,
electronic products, electrical distribution systems, and other
interior products. The company has 104,000 employees at 275
locations in 33 countries.
Lear also operates in Argentina, Austria, Belgium, Brazil,
Canada, China, Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, India, Italy, Japan, Mexico, Morocco,
Netherlands, Philippines, Poland, Portugal, Romania, Russia,
Singapore, Slovakia, South Africa, South Korea, Spain, Sweden,
Thailand, Tunisia, Turkey and Venezuela.
* * *
As reported in the Troubled Company Reporter on Feb. 7, 2007,
Moody's Investors Service placed the long-term ratings of Lear
Corporation, corporate family rating at B2, under review for
possible downgrade. The company's speculative grade liquidity
rating of SGL-2 was affirmed.
LEAR CORP: To Unveil First Quarter 2007 Results on April 25
-----------------------------------------------------------
Lear Corp. will release its first quarter 2007 financial results
on April. 25 before the stock market opens.
The company financial results and related matters at 9:00 a.m.
EST on the same day.
To participate in the conference call:
-- Domestic calls: 1-800-789-4751
-- International calls: 1-706-679-3323
The audio replay will be available two hours following the call
at:
-- Domestic calls: 1-800-642-1687
-- International calls: 1-706-645-9291
The audio replay will be available until May 9.
A live audio Web cast of the call, in listen only mode, is
available at http://www.lear.com/.
Inquiries can be addressed to:
Melissa Skauradchun
Manager, Investor Relations
Lear Corp.
Tel: (248) 447-5648
E-mail: mskauradchun@lear.com
Southfield, Mich.-based Lear Corp. (NYSE: LEA) --
http://www.lear.com/-- is a global supplier of automotive
interior systems and components. Lear provides complete seat
systems, electronic products, electrical distribution systems,
and other interior products.
Lear also operates in Argentina, Austria, Belgium, Brazil,
Canada, China, Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, India, Italy, Japan, Mexico, Morocco,
Netherlands, Philippines, Poland, Portugal, Romania, Russia,
Singapore, Slovakia, South Africa, South Korea, Spain, Sweden,
Thailand, Tunisia, Turkey and Venezuela.
* * *
On Feb. 11, 2007, Standard & Poor's Ratings Services lowered its
corporate credit rating on Southfield, Mich.-based Lear Corp. to
'B' from 'B+ and placed its ratings on CreditWatch with negative
implications following Lear's announcement that it had agreed to
be acquired by Carl Icahn-controlled American Real Estate
Partners, L.P.
As reported in the Troubled Company Reporter-Europe on Feb. 8,
Moody's Investors Service placed the long-term ratings of Lear
Corporation, corporate family rating at B2, under review for
possible downgrade. The company's speculative grade liquidity
rating of SGL-2 was affirmed.
SUNTRANSFER SA: Claims Verification Is Until April 20
-----------------------------------------------------
Ricardo Randrup, the court-appointed trustee for Suntransfer
SA's bankruptcy proceeding, will verify creditors' proofs of
claim until April 20, 2007.
Under the Argentine bankruptcy law, Mr. Randrup is required to
present the validated claims in court as individual reports.
Court No. 12 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 Suntransfer SA and
its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Randrup will also submit a general report that contains an
audit of Suntransfer SA's accounting and banking records. The
report submission dates have not been disclosed.
Suntransfer SA was forced into bankruptcy at the behest of
Gestisur Cooperativa de Credito y Vivienda Limitada, whom it
owes US$8,538.04.
Clerk No. 23 assists the court in the proceeding.
The debtor can be reached at:
Suntransfer S.A.
Virgilio 2956
Buenos Aires, Argentina
The trustee can be reached at:
Ricardo Randrup
Avenida Cordoba 1351
Buenos Aires, Argentina
SUPLE CENTRO: Trustee Verifies Proofs of Claim Until March 22
-------------------------------------------------------------
Estudio Clase A, Sereni, Paz Napolitano y Asoc., the court-
appointed trustee for Suple Centro S.A.'s bankruptcy proceeding,
verifies creditors' proofs of claim until March 22, 2007.
Estudio Clase will present the validated claims in court as
individual reports on May 10, 2007. A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Suple Centro 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 Suple Centro 's
accounting and banking records will follow on June 25, 2007.
Estudio Clase is also in charge of administering Suple Centro 's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Estudio Clase A, Sereni, Paz Napolitano y Asoc.
Lavalle 2024
Buenos Aires, Argentina
TELECOM ARGENTINA: SBS Ups Target Price to ARS18.24 A Share
-----------------------------------------------------------
Argentine investment bank Grupo SBS has raised its target price
for Telecom Argentina (NYSE: TEO) to ARS18.24 from ARS11,
attributing the increase to strong growth in the company's
sales, Business News Americas says.
Additionally, Grupo SBS also maintained its "high risk" buy
recommendation for Telecom's stock, which means that the shares
may not reach the target price, BNamericas says.
SBS analyst Emiliano Wachs told BNamericas that one of the
factors that could potentially affect the target price would be
exchange rate fluctuations as the company charges in pesos but
has debt in US dollars.
"A big alteration in the exchange rate may have an impact on the
company. In our model we are considering a deterioration in the
exchange rate [a stronger US dollar] by the end of the year,"
the analyst told BNamericas.
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina. It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo. France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake. Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).
* * *
As reported on Oct 11, 2006, Standard & Poor's Ratings Services
raised Telecom Argentina S.A.'s counterparty credit rating to
B+/Stable/ from B/Stable following the upgrade of the Republic
of Argentina to 'B+' from 'B', announced on Oct. 2, 2006.
=============
B A H A M A S
=============
HARRAH'S ENTERTAINMENT: Fitch May Cut Ratings on LBO by Apollo
--------------------------------------------------------------
Fitch Ratings may downgrade Harrah's Entertainment Inc.'s aka
HET Issuer Default Rating into the 'B' category from its current
'BB+' rating based on the planned capital structure for its
leveraged buyout or LBO by Apollo Management and Texas Pacific
Group, which was outlined in its preliminary proxy statement
(filed Feb. 8, 2006).
If the transaction is completed as planned, Fitch estimates that
Harrah's total debt/EBITDA leverage could be in the 8.5 times-
9.0x range, while its EBITDA/interest expense coverage could be
below 2.0x. The term loan could be levered around the
3.5x-4.0x range after adjusting for the commercial mortgage
backed securities or CMBS cash flow carve out and close to 60%
of the company's pro forma debt will be secured. These credit
metrics are inconsistent with Harrah's current 'BB+' IDR.
Despite the significantly weaker credit metrics, Harrah's long-
term credit profile would still benefit from being the largest
and most diversified casino operator with solid brands and
excellent marketing ability.
Future Implications for Harrah's Ratings
The transaction still needs to clear a number of hurdles, the
most significant of which are shareholder approval and
regulatory hurdles, since the private equity firms will likely
have to get licensed in every jurisdiction in which Harrah's
operates. Therefore, Fitch will look to resolve the existing
Rating Watch Negative and revise Harrah's ratings for the LBO
transaction following milestones during the transaction process,
which demonstrate there is reasonable certainty that the
transaction will close.
Since the transaction could close more than a year from now
(though Harrah's anticipates it could close by the end of this
year), there is a good possibility the parameters can change.
The transaction aims to tap the bank, bond, and CMBS markets,
the cost and accessibility of which can change swiftly. Also,
it is unclear if there will be meaningful asset sales prior to
or concurrent with the transaction. Fitch believes there are a
number of properties in Harrah's portfolio that could be deemed
'non-core' and be potentially monetized to help fund the
transaction. However, certain unidentified assets are going to
be collateralized in the CMBS note, which could affect asset
sale potential. Finally, competing bids could emerge while
shareholders are considering this transaction.
Rating Context
Fitch downgraded Harrah's IDR to 'BB+' from 'BBB-' and placed
Harrah's ratings on Rating Watch Negative following the Oct. 2,
2006 announcement of the receipt of the LBO proposal. At that
time, the existence of the public bid changed Harrah's credit
profile primarily because Fitch believed there was a high
likelihood of a shareholder-friendly capital allocation decision
that would have a negative impact on the credit profile (which
was already weak investment grade) even if the transaction was
not completed.
Transaction Detail
The planned US$26.1 billion transaction has been approved by
Harrah's board of directors and has received equity and debt
commitments. The planned transaction will include:
-- US$5.87 billion equity contribution from the private
equity firms;
-- US$7 billion senior secured 7-year term loan;
-- US$6.025 billion bond issue; and
-- US$7.25 billion commercial mortgage-backed securities
(CMBS) note.
In addition to the US$7 billion term loan, the senior secured
credit facilities will also include a US$2 billion six-year
revolver that is expected to be undrawn at closing.
If the US$6.025 billion bond issue is not completed by the
closing of the transaction, the lenders have agreed to provide a
senior unsecured bridge facility until the bonds are issued.
The US$7.25 billion CMBS loan could be upsized to US$8 billion
and will have a two-year initial term with options for three
one-year extensions. If the CMBS deal cannot be completed by
the closing of the transaction, the lenders have agreed to
provide a senior secured real estate bridge facility. Certain
unidentified real estate assets that account for roughly one-
third of Harrah's LTM EBITDA will collateralize the CMBS note.
Headquartered in Las Vegas, Nevada, Harrah's Entertainment, Inc.
(NYSE: HET) -- http://www.harrahs.com/-- is a gaming
corporation that owns and operates casinos, hotels, and five
golf courses under several brands on four continents. The
company's properties operate primarily under the Harrah's,
Caesars and Horseshoe brand names; Harrah's also owns the London
Clubs International family of casinos. Last January, it signed a
joint venture agreement with Baha Mar Resorts Ltd. to operate a
resort in Bahamas.
=============
B E R M U D A
=============
CENVEO: S&P Affirms B+ Corporate Credit Rating, Removes Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on Cenveo Inc. and assigned its bank loan and
recovery ratings to subsidiary Cenveo Corp.'s proposed US$925
million senior secured credit facility. The facility was rated
'B+' (at the same level as the corporate credit rating on
Cenveo) with a recovery rating of '2', indicating the
expectation for substantial (80%-100%) recovery of principal in
the event of a payment default. At the same time, Standard &
Poor's removed all ratings from CreditWatch. The outlook is
positive.
"The ratings affirmation and positive outlook reflect operating
improvements in 2006 at Cenveo, notwithstanding high levels of
pro forma leverage following the close of the acquisitions and
our expectation that Cenveo will pursue a strategy of debt
financed acquisitions over the intermediate term," said Standard
& Poor's credit analyst Emile Courtney.
Cenveo, Inc. is currently talking with Cadmus Communication
Corp. regarding the latter's sale for US$430 million.
About Cenveo
Headquartered in Stamford, Connecticut, Cenveo, Inc., is one of
North America's leading providers of print and visual
communications, with one-stop services from design through
fulfillment. The company's broad portfolio of services and
products include commercial printing, envelopes, labels,
packaging and business documents delivered through a network of
production, fulfillment and distribution facilities throughout
North America.
About Cadmus Communications
Headquartered in Richmond, Virginia, Cadmus Communications Corp.
provides end-to-end integrated graphic communications and
content processing services to professional publishers, not-for-
profit societies, and corporations. Its annual revenue is
approximately US$450 million. It has operations in the US,
India and the Caribbean Rim.
EURO-ASIA FOOD: Final General Meeting Is Set for March 23
---------------------------------------------------------
Euro-Asia Food & Beverage Ltd.'s final general meeting will be
at 3:35 p.m. on March 23, 2007, or as soon as possible, at Level
28, Three Pacific Place, 1 Queen's Road East, Hong Kong.
The Sole Member of Euro-Asia Food will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.
The liquidators can be reached at:
Susan Y H Lo and Natalia K M Seng
c/o Liquidations, Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
GC IMPSAT: Closes 9.875% US$225-Million Senior Notes Offering
-------------------------------------------------------------
GC Impsat Holdings I Plc successfully closed the offering of
US$225 million in aggregate principal amount of its 9.875%
senior notes due 2017.
The proceeds of the offering will be used to finance a portion
of the purchase price -- including the repayment of indebtedness
-- of Global Crossing's proposed acquisition of Impsat Fiber
Networks, Inc. The company has deposited the proceeds of the
offering into an escrow account pending consummation of the
acquisition. If the merger agreement is terminated or the
acquisition is not consummated by May 25, 2007, GC Impsat will
be required to redeem the notes with the proceeds held in the
escrow account.
The notes were offered to qualified institutional buyers under
Rule 144A of the Securities Act of 1933, as amended, and outside
the United States in compliance with Regulation S under the Act.
The notes will not be registered under the Act and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
GC Impsat Holdings I Plc is an indirect subsidiary of Global
Crossing Ltd. through its merger with Impsat Fiber Networks.
Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
-- http://www.globalcrossing.com/-- provides telecommunication
services over the world's first integrated global IP-based
network, which reaches 27 countries and more than 200 major
cities around the globe including Bermuda, Argentina, Brazil,
and the United Kingdom. Global Crossing serves many of the
world's largest corporations, providing a full range of managed
data and voice products and services. The company filed for
Chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No.
02-40188). When the Debtors filed for protection from their
creditors, they listed US$25,511,000,000 in total assets and
US$15,467,000,000 in total debts. Global Crossing emerged from
chapter 11 on Dec. 9, 2003.
IMPSAT Fiber Networks Inc. -- http://www.impsat.com/-- provides
private telecommunications networks and Internet services in
Latin America. The company owns and operates 15 metropolitan
area networks in some of the largest cities in Latin America and
has 15 facilities to provide hosting services, providing
services to more than 4,500 national and multinational clients.
IMPSAT has operations in Argentina, Colombia, Brazil, Venezuela,
Ecuador, Chile, Peru and the United States.
* * *
As reported in the Troubled Company Reporter on Jan. 31, 2007,
Moody's Investors Service assigned a B3 corporate family rating
to GC Impsat Holdings I Plc with a stable outlook. The rating
agency also assigned a B3 rating to the proposed US$200 million
senior unsecured note issuance.
INTELSAT: Appoints William Shernit as New Subsidiary President
--------------------------------------------------------------
Intelsat disclosed that William Shernit has been appointed as
the new president of its subsidiary Intelsat General.
Intelsat General provides innovative communications solutions
primarily to military and civilian government customers.
"Intelsat wanted a seasoned business executive with a proven
track record to head Intelsat General, but we also wanted
someone who had served in the US Government and understood the
needs of our government customers," said Intelsat Chief
Executive Officer Dave McGlade. "In Bill Shernit, we have the
best of both worlds, a man whose career of outstanding
achievement spanned service at a high level in the government
and business leadership at a large government contractor."
Mr. Shernit served 13 years at the Central Intelligence Agency,
where he was responsible for a broad range of technical systems
and advanced technologies. He then moved to private industry
and joined BAE Systems, Inc., in 1989. He became president of
BAE Systems' Information Technology group.
At BAE Systems, Mr. Shernit was responsible for successfully
implementing strategic and operational plans for the information
technology group, as well as expanding the department through
organic growth and acquisitions, and he helped to grow the BAE
Systems information technology group to a US$1 billion
enterprise. His group focused particularly on network-centric
infrastructures and information-sharing among the intelligence
community, homeland security agencies, and the war fighter.
Mr. Shernit said, "I am very much looking forward to leading
Intelsat General. I am confident we can build on the solid
foundation of performance and take to a new level Intelsat
General's service to the US government and other governments."
Mr. Shernit holds Master of Science and Bachelor of Science
degrees in Electrical Engineering from Cornell University in New
York.
Intelsat is the largest provider of fixed satellite services
worldwide and is the leading provider of these services to each
of the media, network services/telecom and government customer
sectors, enabling people and businesses everywhere constant
access to information and entertainment. Intelsat offers
customers a greater business potential by providing them
unrivaled resources with ease of business and peace of mind.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2007, Fitch Ratings has affirmed Intelsat, Ltd.'s
Issuer Default Rating at 'B'. The Rating Outlook is Stable.
Fitch has assigned these new ratings on Intelsat, Ltd.
(Bermuda):
-- US$600 million senior unsecured floating-rate notes due
2015 'CCC+/RR6'; and
-- Proposed US$1 billion guaranteed senior unsecured term
loan due 2014 'BB-/RR2'.
Fitch affirmed these ratings:
Intelsat (Bermuda), Ltd.:
-- Issuer Default Rating 'B';
-- Senior unsecured guaranteed notes 'BB-/RR2'; and
-- Senior unsecured non-guaranteed notes 'CCC+/RR6'.
Intelsat Intermediate Holding Company, Ltd:
-- Issuer Default Rating 'B'; and
-- Senior unsecured discount notes 'B-/'RR5'.
Intelsat Subsidiary Holding Company, Ltd.:
-- Issuer Default Rating 'B';
-- Senior secured credit facilities 'BB/RR1'; and
-- Senior unsecured notes 'BB-/RR2'.
Intelsat Corp:
-- Issuer Default Rating 'B';
-- Senior secured credit facilities 'BB/RR1';
-- Senior secured notes 'BB/RR1'; and
-- Senior unsecured notes 'B/RR4'.
In addition, Fitch has withdrawn these ratings due to its
refinancing:
Intelsat (Bermuda), Ltd:
-- US$600 million senior unsecured credit facility CCC+/RR6'.
Intelsat Holding Corporation (PanAmSat Holding Corporation):
-- Issuer Default Rating 'B.
MONTPELIER RE: Increases Book Value Per Share by 33% in 2006
------------------------------------------------------------
Montpelier Re Holdings Ltd. ended 2006 with a fully converted
book value per share of US$15.46, a return of 10.4% for the
quarter and 33.2% for the year, inclusive of dividends.
Comprehensive income for the quarter and year ended
Dec. 31, 2006, was US$140 million and US$362 million,
respectively. Operating income, which excludes realized
investment and foreign exchange gains and losses, was US$111
million for the fourth quarter and US$286 million for the year.
"Our quarterly combined ratio was 35.7%, a reflection of a
favorable pricing environment, the low level of catastrophe
losses, zero development of the 2004 and 2005 hurricane reserves
and US$17 million of net favorable reserve development on prior
accident years," Montpelier Re Chairperson and Chief Executive
Officer Anthony Taylor stated.
"A 33.2% return represents a fine result for a transitional
year. We believe that our focus on short-tail lines of business
is the optimal strategy to maximize growth in book value per
share over the long run. We continue to explore creative ways
to leverage our platform through traditional and non-traditional
channels to enhance that return," Mr. Taylor noted.
Fully converted book value per share at Dec. 31, 2006, is based
on total shareholders' equity at Dec. 31, 2006, divided by
common shares outstanding of 111,775,682 less 15,694,800 common
shares subject to the share issuance agreement, plus common
shares issuable upon conversion of outstanding share equivalents
of 473,771 at Dec. 31, 2006.
Fully converted book value per share at Sept. 30, 2006, is based
on total shareholders' equity at Sept. 30, 2006, divided by
common shares outstanding of 111,775,682 less 15,694,800 common
shares subject to the share issuance agreement, plus common
shares issuable upon conversion of outstanding share equivalents
of 470,310 at Sept. 30, 2006.
Fully converted book value per share at Dec. 31, 2005, is based
on total shareholders' equity at Dec. 31, 2005, divided by
common shares outstanding of 89,178,490 plus common shares
issuable upon conversion of outstanding share equivalents of
9,170 at Dec. 31, 2005. Warrants outstanding at Dec. 31, 2006,
Sept. 30, 2006, and Dec. 31, 2005, are not included in the
calculations as the exercise price is greater than the book
value per share.
The return for the quarter represents the change in fully
converted book value per share from US$14.07 at Sept. 30, 2006,
to US$15.46 at Dec. 31, 2006, after giving effect to the
dividend of US$0.075 per common share and per warrant, excluding
15,694,800 common shares subject to the share issuance
agreement. The return for the year to date represents the
internal rate of return of the converted book value per share
from US$11.86 at Dec. 31, 2005, to US$15.46 at Dec. 31, 2006,
after giving effect to the quarterly dividends and excluding the
common shares subject to the share issuance agreement. For
these purposes fully converted book value per share assumes that
the warrants are not exercised if the book value per share is
less than the strike price.
Headquartered in Bermuda, Montpelier Re Holdings Ltd., through
its operating subsidiary Montpelier Reinsurance Ltd., is a
premier provider of global property and casualty reinsurance and
insurance products. During the year ended Dec. 31, 2005,
Montpelier underwrote US$978.7 million in gross premiums
written. Shareholders' equity at Dec. 31, 2005, was US$1.1
billion.
* * *
As reported in the Troubled Company Reporter on Dec. 19, 2006,
A.M. Best affirms these ratings on Montpelier Re Holdings:
Montpelier Re Holdings Ltd.
-- "bbb-" on senior unsecured debt;
-- "bb+" on subordinated debt; and
-- "bb" on preferred stock.
MRH Capital Trust I and II (guaranteed by Montpelier Re
Holdings Ltd.)
-- "bb" on preferred securities.
=============
B O L I V I A
=============
* BOLIVIA: Foreign Firms Contract Delays Won't Affect Economy
-------------------------------------------------------------
Bolivian hydrocarbon and energy minister Carlos Villegas denied
to Prensa Latina that delays in the 44 contracts with 12 foreign
companies bring economic losses to the state.
According to Prensa Latina, Minister Villegas also referred to a
state Bolivian Tax Oil Fields release on technical criteria to
delay the approval of the agreements signed in October.
Prensa Latina underscores that these firms signed the new
contracts to fulfill the nationalization rules Bolivia
implemented in May 2006:
-- Petroleo Brasileiro,
-- Repsol YPF,
-- French Total,
-- branches of the British group Petroleum, and
-- other multinational firms.
"As a country, we do not lose any cent due to the lack of
protocol, the nationalization decree is still in force and is
only going to expire when operation contracts come into force,"
Minister Villegas told Prensa Latina.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
* BOLIVIA: Soldiers Seizes Vinto Complex from Glencore
------------------------------------------------------
Bolivian troops took control of the Vinto complex from Swiss
mining firm Glencore International AG.
The move followed President Evo Morales' announcement that he is
nationalizing the privately run tin smelter complex.
President Morales has been pushing for nationalization of the
country's different industries. First of which is the
nationalization of the oil sector in May 2006. The Bolivian
leader is also advocating for the mining industry's
nationalization. Recently, the government announced a higher
mining tax to be levied on big corporations.
"The Vinto Metallurgical Complex returns to the control of the
Bolivian state with all its current shares, allowing the [state]
Vinto Metallurgical Company to assume immediate administrative,
technical, legal and financial control," the decree signed by
Mr. Morales said, according to BB News.
About Glencore
Headquartered in Baar, Switzerland, Glencore International AG --
http://www.glencore.com/-- engages in the smelting, refining,
mining, processing, purchasing, selling and marketing of metals
and minerals, energy products and agricultural products.
Glencore operates on a global scale, marketing physical
commodities produced in its industrial assets or purchased from
third parties to industrial consumers, such as those in the
automotive, steel, power generation, oil and food processing
industries. Energy products and commodities are marketed and
coordinated primarily in Glencore's headquarters in Baar,
Switzerland and through the offices of its subsidiaries in
London, Stamford and Singapore.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
AMERICAN TOWER: Moody's Raises Corporate Rating to Ba1 from Ba2
---------------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating
of American Tower Corp. to Ba1 from Ba2, affirmed the company's
SGL-1 liquidity rating and changed the ratings of its various
debt instruments pursuant to the loss given default methodology.
This concludes the ratings review commenced
Dec. 11, 2006. The outlook is stable.
The upgrade to American Tower's corporate family rating with a
stable outlook reflects Moody's expectation that the
fundamentals of the wireless tower sector are likely to remain
favorable through the next several years and American Tower's
good market position will enable its strong earnings and cash
flow momentum to continue. However, the rating also considers
the company's single industry focus and relatively small scale
although recognizes that much of its revenues are contractually
derived from its relationships with the largest national
wireless operators across the U.S. Finally, the rating reflects
Moody's view that American Tower is likely to direct its growing
free cash flow to shareholders via share buy backs over the next
few years, targeting adjusted leverage towards 6x.
Moody's noted in its rating action that it has now equated the
senior secured ratings at American Tower's two main operating
companies, Spectrasite Communications Inc. and American Tower
L.P. to reflect the fact that American Tower faces essentially
no meaningful restrictions to the movement of funds between
these the two entities. In Moody's opinion, this distinction
has become a more important factor at this higher rating level,
as Moody's believes American Tower is equally likely to support
either subsidiary financially, should the need arise.
These ratings have been upgraded:
American Tower Corp.
-- Corporate Family Rating to Ba1 from Ba2
-- Probability of Default Rating to Ba1 from Ba2
-- Senior Unsecured Rating to Ba2 LGD 5, 86%
from Ba3 LGD 5, 85%
American Tower Inc.
-- Senior Subordinate Rating to Ba1 LGD 4, 61%
from Ba2 LGD 4, 59%
-- Spectrasite Communications Inc.
-- Senior Secured Rating to Baa3 LGD 2, 24%
from Ba1 LGD 3, 38%
These ratings have been lowered:
American Tower L.P./ American Tower Inc.
-- Senior Secured Rating to Baa3 LGD 2, 24%
from Baa2 LGD 1, 9%
These ratings have been affirmed:
American Tower Corp.
-- Speculative Grade Liquidity Rating at SGL-1
Headquartered in Boston, Massachusetts, American Tower Corp.
(NYSE: AMT) -- http://www.americantower.com/-- is an
independent owner, operator and developer of broadcast and
wireless communications sites in the United States, Mexico and
Brazil. American Tower owns and operates over 22,000 sites in
the United States, Mexico, and Brazil. Additionally, American
Tower manages approximately 2,000 revenue producing rooftop and
tower sites.
AUTOCAM CORP: S&P Puts B Rating on Proposed US$150-Million Debt
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Kentwood, Michigan-based Autocam Corp. At the
same time, Standard & Poor's assigned its 'B' senior secured
bank loan rating and '3' recovery rating to the company's
proposed US$150 million of senior secured credit facilities.
The debt rating and recovery rating indicate the likelihood of a
meaningful recovery of principal (50%-80%) in a default or
bankruptcy, based on an assessment of the company's enterprise
value.
The senior credit facilities consist of a US$30 million multi-
currency revolving credit facility due 2012, a US$37 million
equivalent Euro-denominated term loan due 2014, and an US$83
million U.S. term loan due 2014. The borrowers are Autocam
Corp. (U.S.) and Autocam France SARL.
The new credit facilities represent one part of Autocam's
proposed capital restructuring. Proceeds from the credit
facilities will be used to refinance Autocam's existing first-
lien senior secured credit facility. In addition, US$85 million
of new PIK preferred equity, which Standard & Poor's views as
equivalent to debt, will be provided by Autocam's existing
senior subordinated note holders, and will be used to repay the
company's existing second-lien debt. Also, US$139 million of
the senior subordinated notes will be converted into common
equity by the holders. Pro forma total debt outstanding at
close of the transaction will be about US$136 million.
Although the recapitalization will improve Autocam's liquidity
and cash flow adequacy through the reduction of cash interest
expense and relaxed covenants, the company remains highly
leveraged and vulnerable to negative developments in the
currently unstable environment for automotive suppliers. In
addition, Autocam does not expect to begin generating meaningful
free cash flow until mid-2008 following the completion of its
restructuring activities in France.
Autocam Corporation, headquartered in Kentwood, MI, is a
manufacturer of extremely close tolerance precision-machined,
metal alloy components, sub-assemblies and assemblies, primarily
for performance and safety critical automotive applications.
Revenues in 2005 were approximately US$350 million from
operations in North America, Europe, and Brazil.
BANCO BRADESCO: Unsure of Postal Contract Renegotiation with Gov
----------------------------------------------------------------
Banco Bradescdo doubts the Brazilian government will renegotiate
its Banco Postal joint venture with national postal service
Correios, Business News Americas reports, citing chief executive
officer Marcio Cypriano.
The chief executive clarified that the bank never doubted that
the government will uphold the contract, which runs until 2009,
the same reports continues.
Helio Costa, Brazil's communications minister, said in reports
that the government is reviewing the Postal contract because
Correios has to cover all costs associated with Postal, while
Bradesco keeps the profits.
According to BNamericas, Banco Bradesco became Correio's partner
in 2001 after winning an auction for the joint venture. It paid
BRL201 million (currently US$95.3 million) and beat Banco Itau
and federal savings bank Caixa Economica Federal.
Meanwhile, Mr. Cypriano met with Finance Minister Guido Mantega
last week and said the minister saw no reason in reviewing the
contract, BNamericas relates.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
(NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on
serving low-and medium-income individuals in Brazil since the
1960s. Bradesco is Brazil's largest private bank, with more
than 3,000 banking branches, and also a leader in insurance and
private pension management. Bradesco has branches throughout
Brazil as well as one in New York, and Japan. Bradesco offers
Internet banking, insurance, pension plans, annuities, credit
card services (including football-club affinity cards for the
soccer-mad population), and Internet access for customers. The
bank also provides personal and commercial loans, along with
leasing services.
* * *
As reported on Jan. 26, 2007, Fitch Ratings placed these ratings
assigned to Banco BMC SA on Rating Watch Positive:
-- Local foreign currency long-term Issuer Default Rating
'B-';
-- Foreign currency long-term IDR 'B-';
-- Local currency short-term 'B';
-- Fixed-rate notes issuance maturing 2008 'B-/RR4';
-- Support '5';
-- National Short-Term rating 'F3(bra)'; and
-- National long-term rating 'BBB-(bra)'.
In addition, Fitch affirmed BMC's:
-- Individual rating at 'D/E'; and
-- Foreign currency short-term at 'B'.
At the same time, Fitch also affirmed these IDRs on Bradesco,
with a Stable Outlook:
-- Long-term foreign currency at 'BB+';
-- Long-term local currency at 'BBB-';
-- Individual rating at 'B/C';
-- Local currency short-term at 'F3';
-- Short-term at 'B';
-- Support rating of '4';
-- National short-term rating 'F1+(bra)'; and
-- National long-term rating 'AA+(bra)'.
As reported on Nov. 30, 2006, Moody's Investors Service upgraded
these ratings of Banco Bradesco SA:
-- long-term foreign currency deposits to Ba3 from B1; and
-- long- and short-term global local currency deposit
ratings to A1/Prime from A3/Prime-2.
Moody's said the ratings outlook is stable.
BANCO NACIONAL: Okays BRL7-Mil. Financing to Audiovisual Chain
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
approved a BRL7 million financing to Quanta Centro de Producoes
Cinematograficas de Sao Paulo Ltda. This is the first operation
carried out in the Procult ambit, which is the program created
by BNDES in late 2006 to make feasible the development of the
audiovisual productive chain in Brazil.
Procult has BRL75 million to invest in the sector and will be in
force until Dec. 31, 2008.
The resources, which are equivalent to 43% of the project total,
amounting BRL16.2 million, will be directed to the construction
of a cinematographic complex which will be comprised by four
studios with complementary service facilities. Besides reducing
the bottleneck in the audiovisual service area, the project will
contribute to the creation of a captive demand for good quality
studios. The complex will be one of the few ones in Brazil,
which is capable of meeting large part of the audiovisual
production phases.
BNDES's support will strengthen a national enterprise of a
sector, which is considered priority by BNDES, contributing to
the consolidation process of the sector and technical
development of the audiovisual production in Brazil.
BNDES will also finance the acquisition of new light and camera
equipment and other items that are related to leasing. The
cinematographical complex, in Vila Leopoldina, Sao Paulo, will
concentrate the service supply which is necessary to the
audiovisual content production at the same place, the so-called
one stop shop.
The state-of-the-art design studios have characteristics, which
make them different from the competitors. For example, direct
sound shield, modular landscapes, sophisticated grid system with
footbridges, laser-leveled floors, 10-meter headroom, central
air conditioning and filming pool. Besides this, they will have
production rooms, setting workshops, convenience stores,
maintenance room and snack bar.
The added services will give studio customers more advantages in
the production process, thereby lowering costs and becoming
faster and dynamic. Besides reducing the filming completion
time, it will be possible to diminish significantly the time
spent in locomotion and freight of the staff and equipment used
in filmings. These gains will make the difference against the
competitor studios.
Quanta is a national capital enterprise, which operates in
audiovisual infrastructure sector and is leader in light and
electrical system equipment leasing for cinematographic and
video phonographic industry. For over 25 years in the market,
it has customers like the cinema producers:
-- H.B Filmes,
-- Rio vermelho, and
-- Casa de Cinema.
In 2005, Quanta joined Motion, which is camera and movement
equipment lessor and, also, leader in its operating sector,
aiming at leveraging its businesses through the synergy provided
by the joint supply of its services.
The option for the complex construction in Vila Leopoldina's
region has been taken due to the growing establishment of
audiovisual producers in the district. The place of the studios
embraces a 13 thousand square-meter total area and, after the
project completion, the constructed area will have nine thousand
square meters to receive the additional services to be supplied
by the complex in the future.
The Ministry of Culture, along with BNDES and Brazilian
Association of Independent Musicians, promoted the 1st Brazil
Music Fair 2007, which was held in Recife between Feb. 7 and 11.
The event had as its scenery the Starting Point, point of
cultural convergence and city's festivity, and it gathered, for
the first time in Brazil, professionals from all the musical
productive chain sector.
The fair, which was held in accordance with the large
international music fairs and integrates the MinC's set of
actions to the development of culture in Brazil, received BRL1.3
million from BNDES, to promote business in the sector. Brazil
Music Fair was also the stage of discussions on most important
issues for the environment like:
-- new technologies and business model,
-- intellectual property management,
-- phonogram digital trade,
-- markets, among other themes.
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/--
COMPANHIA SIDERURGICA: Plans Large Investments in Portugal
----------------------------------------------------------
Companhia Siderurgica Nacional plans to make more investments in
Portugal through its wholly owned subsidiary Lusosider.
Business News Americas mentioned about a BRL844 million
investment, while Macauhub said investments are to be at EUR1
billion.
"The investment [would] more than double the output capacity and
cargo handled at Lusosider," the Portuguese company's president
Antonio de Albuquerque Junior was quoted by BNamericas as
saying.
Companhia Siderurgica's chairman Benjamin Steinbruch said the
EUR1 billion fund will be for two projects that needs further
study since the investment is large, Macauhub says.
According to Agencia Lusa, one of the projects being looked at
is a EUR200 million project that would boost Lusosider's
production capacity.
The second project, Agencia Lusa adds, would require EUR800
million for a hot rolling mill for three million tons, in order
to supply the Portuguese, Spanish markets, and the South of
France.
Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages. This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.
* * *
As reported on Feb. 2, 2007, Standard & Poor's Ratings Services
affirmed its 'BB' local- and foreign-currency corporate credit
ratings on Brazil-steel maker Companhia Siderurgica Nacional or
CSN and removed them from CreditWatch, where they were placed on
Nov. 17, 2006, with negative implications. S&P said the outlook
is stable.
HSBC BRASIL: S&P Affirms BB/B Rating Due to Higher Credit Risk
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB/B'
counterparty credit rating on HSBC Bank Brasil S.A. The outlook
is positive.
"The rating reflects the bank's focus on the consumer finance
and middle-market segments, and its higher exposure to credit
risk; the challenge to boost its profitability in a very
competitive environment; and the inherent risk of operating in
the volatile Brazilian economy. These risk factors are
partially tempered by the benefit of being fully owned and
potentially supported by HSBC Holdings PLC (HSBC; AA-
/Positive/A-1+), HSBC Brasil's established market position in
the consumer finance segment, and good liquidity to face
unexpected losses or volatility," said Standard & Poor's credit
analyst Beatriz Degani.
The positive outlook balances the outlook of the sovereign of
Brazil, with the perception of improvements in industry,
economic risks for the banking industry in Brazil, and the
benefits of implicit parental support. At its current level,
raising the rating would depend on further improvements in the
country risks affecting Brazilian banks, and on HSBC's ability
to improve its profitability levels (leveraging its retail
strategy while maintaining adequate credit risk). On the other
hand, lowering the rating on HSBC Brasil would happen
automatically if changes were made on the sovereign foreign
currency credit rating, which we believe to be unlikely in the
short term.
HUGHES COMM: Unit Inks US$115MM Loan Facility with Bear Stearns
---------------------------------------------------------------
Hughes Network Systems LLC, wholly owned subsidiary of Hughes
Communications Inc., has entered into a commitment letter with
Bear Stearns Corporate Lending Inc., as the initial lender, Bear
Stearns & Co. Inc., as lead arranger and book running manager,
and BSCL, as administrative agent.
Pursuant to the commitment letter, Bear Stearns Corporate agreed
to provide the company with debt financing in the aggregate
principal amount of US$115 million in the form of an unsecured
senior term loan facility.
The entry into the Loan Facility and financing is subject to the
satisfaction of certain customary conditions. The commitment
letter will terminate on March 31, 2007, unless terminated
earlier by the company.
Pursuant to the commitment letter, the Loan Facility will be
guaranteed on a senior unsecured basis by all existing and
future subsidiaries of the Company that guarantee the Company's
existing 9-1/2% Senior Notes due 2014 and the Company's existing
US$50 million senior secured revolving credit facility.
HNS Finance Corp., a wholly owned subsidiary of the company and
co-issuer of the Senior Notes, will be a co-borrower under the
loan facility. The interest rate on the loan facility is
expected to be, at the option of the company, the Adjusted LIBO
Rate plus 2.75% plus 1.75%.
The loan facility will be subject to certain mandatory and
optional prepayment provisions and contain negative covenants
and events of default, in each case, substantially similar to
those provisions contained in the indenture governing the Senior
Notes. The maturity date of the loan facility will be
April 15, 2014. The company plans to use the net proceeds from
the loan facility to partially fund the purchase and
construction of a satellite and for general corporate purposes.
The company expects that it will enter into the loan facility on
or about Feb. 28, 2007. However, there can be no assurance that
the company will enter into the loan facility.
Headquartered in Germantown, Maryland, Hughes Network Systems
LLC (NASDAQ:HUGH) -- http://www.hughes.com/-- provides
broadband satellite networks and services for large enterprises,
governments, small businesses, and consumers. Hughes offers
complete turnkey solutions, including program management,
installation, training, maintenance and support-for professional
and rapid deployment anywhere, worldwide. The company owns and
operates a global base of HughesNet shared hub services
throughout the United States, Brazil, China, Europe, and India.
In Europe, Hughes maintains operations facilities and/or sales
offices in Germany, U.K., Italy, Czech Republic, and Russia.
* * *
Moody's Investors Service assigned a B1 rating to Hughes Network
Systems LLC's proposed US$115 million senior unsecured term
loan, due 2014.
In addition, the ratings agency also affirmed the B1 corporate
family rating, the B1 rating on the existing US$450 million
senior notes due 2014 and the Ba1 rating on the US$50 million
senior secured revolving credit facility. The proceeds of the
new term loan will be used primarily to fund capital
expenditures and for general corporate purposes.
PETROLEOS BRASILEIRO: Agrees to Pay More for Bolivian NatGas
------------------------------------------------------------
Brazilian President Luiz Inacio Lula da Silva and his Bolivian
counterpart Evo Morales reached an agreement Wednesday regarding
the price Petroleo Brasileiro will pay for Bolivia's natural
gas.
The two nations have been negotiating for gas prices ever since
the nationalization in May 2006 of Bolivia's hydrocarbons
sector. President Morales has been pushing for hiking gas
export prices, but Brazil was hedging knowing it to be Bolivia's
biggest customer.
The issue has strained the neighbors' relations for months.
According to the Associated Press, Pres. da Silva's adviser
Marco Aurelio Garcia told reporters that a deal would be sign
this week. He disclosed that the terms of the agreement are
very satisfactory for the Brazilian officials.
As a result of the renegotiated prices, Petroleo Brasileiro may
soon announce new investments in Bolivia, a decision that hinged
on reaching agreeable pricing with the Andean nation.
Petroleo Brasileiro, being Bolivia's largest natural gas
operator and buyer, orders 900 million cubic feet of natural gas
per day, which it pays for about US$4 per million British
thermal units. Bolivia had previously asked for a US$5 per
million Btu.
The terms of the agreement has yet to be disclosed.
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.
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.
SOLECTRON CORP: Michael Cannon Resigns as CEO; Joins Dell
---------------------------------------------------------
Michael Cannon has resigned from his position as President and
Chief Executive Officer and as a Director of Solectron Corp.
effective as of Feb. 14, 2007.
Paul Tufano has assumed the role of interim Chief Executive
Officer and principal executive officer, in addition to his
current role as Chief Financial Officer, while a search is
conducted for Mr. Cannon's replacement.
Mr. Tufano was appointed Executive Vice President and Chief
Financial Officer on January 30, 2006. Prior to joining
Solectron, Mr. Tufano, 53, served as President and Chief
Executive Officer of Maxtor Corporation, from 2003 through 2004.
From 1996 to 2003, he served as Maxtor's Chief Financial
Officer, with a dual role as both Chief Financial Officer and
Chief Operating Officer from 2001 to 2003. Prior to Maxtor, Mr.
Tufano spent 17 years at IBM Corporation, serving in several
senior financial as well as general management roles.
Reuters reported Wednesday that Mr. Cannon was hired by Dell
Inc. as president of global operations effective Feb. 26, 2007.
Headquartered in Milpitas, California, Solectron Corp.
(NYSE: SLR) -- http://www.solectron.com/-- provides a full
range of worldwide manufacturing and integrated supply chain
services to the world's premier high-tech electronics companies.
Solectron's offerings include new-product design and
introduction services, materials management, product
manufacturing, and product warranty and end-of-life support.
The company operates in more than 20 countries on five
continents including France, Malaysia, and Brazil, among others.
It had sales from continuing operations of US$10.6 billion in
fiscal 2006.
* * *
As reported in the Troubled Company Reporter on Dec. 14, 2006,
Standard & Poor's Ratings Services raised its corporate credit
and senior unsecured ratings on Milpitas, California-based
Solectron Corp. to 'BB-' from 'B+', and its subordinated debt
rating to 'B' from 'B-'. S&P said the outlook is stable.
UNIAO DE BANCOS: Posts BRL2,210 Million 2006 Net Income
-------------------------------------------------------
Uniao de Bancos Brasileiros SA's 2006 net income before the
goodwill amortization increased 20.2% to BRL2,210 million,
compared with 2005. In the fourth quarter of 2006, net income
totaled BRL576 million.
Operating income increased 20.5% to BRL3,521 million in 2006,
compared with 2005. The annualized return on average equity was
25.8% in the fourth quarter of 2006.
In 2006, return on average equity reached 22.4%, using average
equity and net income before goodwill amortization.
Higher revenue generation and the expense rationalization
resulted in an improvement of Uniao de Banco's operational
efficiency. The efficiency ratio reached 49.3% in 2006,
compared with 51.5% in 2005.
Uniao de Banco's total assets increased 13.0% to BRL104 billion
in December 2006, compared with December 2005. This growth is
mainly due to the BRL5.5 billion increase in total loans,
particularly in credit cards and small and medium-sized
enterprises portfolios.
In the fourth quarter of 2006, the loan portfolio highlights
were the increase in credit cards portfolio, which grew 17.1%,
and the small and medium-sized enterprises credit transactions,
rose 7.0%.
The total loan portfolio increased 4.7% to BRL45,361 million in
December 2006, compared with September 2006. During the year,
the growth of 13.8% in total loan portfolio is explained,
mainly, by the conservative credit approach, adopted since mid-
2005.
Total deposits and assets under management were BRL79,413
million in December 2006, BRL43,780 million of which arose from
assets under management.
The core deposits represented 45.4% of total deposits in
December 2006, a significant increase from the 35.1% in December
2005.
The financial margin before provision for loan losses increased
17.8% to BRL9,719 million in 2006, compared with 2005.
Uniao de Bancos remains satisfied and confident with the ongoing
results and the continuous improvement of its performance.
Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
SA -- http://www.unibanco.com/-- is a full-service financial
institution providing a range of financial products and services
to a diversified individual and corporate customer base
throughout Brazil. The company's businesses comprise segments:
Retail, Wholesale, Insurance and Pension Plans and Wealth
Management. Uniao de Bancos and its associated companies
FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)
offer a network composed of 17,000 points of service. It also
counts on 7,580 automated teller machines and all 30 Hours'
products and services, including the telephone service and the
Internet banking. The company's international network consists
of branches in Nassau and the Cayman Islands; representatives
offices in New York; banking subsidiaries in Luxembourg, the
Cayman Islands and Paraguay; and a brokerage firm in New York --
Unibanco Securities Inc.
* * *
As reported in the Troubled Company Reporter Latin America on
Feb. 12, 2007, Fitch changed the outlook of these ratings of
Unibanco-Uniao de Bancos Brasileiros SA:
-- Foreign currency IDR at 'BB+'; Outlook to Positive from
Stable;
-- Local currency IDR at 'BB+'; Outlook to Positive from
Stable; and
-- National Long-term rating at 'AA(bra)'; Outlook to
Positive from Stable
Fitch Ratings revised the Outlook on the foreign and local
currency Issuer Default ratings and National ratings of a select
group of Brazilian banks, insurance and leasing companies to
Positive from Stable. This rating action follows the revision
of Brazil's foreign and local currency IDR Outlooks. All the
ratings on these banks, insurers and leasing companies are
affirmed.
VALMONT INDUSTRIES: Posts US$328.0MM Fourth Quarter 2006 Sales
--------------------------------------------------------------
Valmont Industries, Inc., reported sales for the fourth quarter
of US$328.0 million in 2006, compared with US$311.3 million for
the same period of 2005. Fourth quarter 2006 net earnings were
US$16.1 million, compared with the fourth quarter 2005 net
earnings of US$11.6 million.
Sales increased to 16% US$1,281.3 million in the fiscal year
2006, compared with US$1,108.1 million in 2005. Valmont
Industries' fiscal year net earnings were US$61.5 million,
compared with 2005 fiscal year earnings of US$39.1 million. The
firm's 2006 fiscal year had 52 weeks with 13 weeks in the fourth
quarter compared to 53 weeks with 14 weeks in the fourth quarter
in 2005.
"We had a strong finish to the year with operating income as a
percent of sales increasing nearly one percentage point for the
quarter and net earnings up 39%," said Valmont Industries
Chairperson and Chief Executive Officer Mogens C. Bay. "Our
international businesses continued to improve and contributed
substantially to sales and earnings. Sales in the Engineered
Support Structures Segment were bolstered by demand for wireless
communication structures in China. Sales in the North American
and European markets were basically unchanged. Utility Support
Structures sales increased in the North American market due to
expanding investment in the electrical transmission grid by
utility companies."
Mr. Bay noted, "Most of the sales increase in the Coatings
Segment reflects pricing actions taken to recover higher zinc
costs. In the Irrigation Segment, North American sales were
lower than last year. While grain prices were substantially
higher, the irrigation season developed slower than expected.
International sales were higher as a result of improved market
conditions worldwide and increased project sales. Sales in the
Tubing Segment were lower, mostly due to customers delaying
shipments at year-end. Two other items impacted fourth quarter
results. During the quarter we suspended the development of our
structure for the wind energy industry, which led to an after-
tax charge of approximately US$400,000. We are confident that
we have a unique and technically solid design, but are not
convinced at this time that we can generate the kind of
financial returns we require. Our effective tax rate declined
from 39.9% in 2005 to 30.0% in 2006 reflecting the mix of
international earnings at lower tax rates and a US$1.1 million
tax expense in 2005 related to the repatriation of dividends
from foreign subsidiaries."
"The key drivers behind the 17% increase in operating income
were the contribution of improved international results, higher
coatings segment profitability and lower corporate expenses,"
Mr. Bay stated.
The CEO commented, "We saw significant improvement in two of our
key financial measures during 2006. Operating income as a
percent of sales improved to 8.6% from 7.5% and return on
invested capital rose to 11.1% from 7.7%. Conditions were
favorable in most of our markets and we continued our focus on
raising the quality of our business, improving productivity, and
increasing employee engagement. Our objective is to continue to
increase our operating income percent to double digit levels and
improve returns on invested capital. Engineered Support
Structures Segment sales were driven by solid growth in China
and Europe and good transportation and commercial demand in
North America. Profitability for the segment was hampered by
poor performance in our North American specialty structures
businesses. We have a new management team in place in specialty
structures and expect results to improve in 2007."
"The utility business posted record sales and operating income
as electric utilities stepped up investment in the transmission
grid. Our product offering of both steel and concrete
structures positions us to be a preferred provider of both new
and replacement structures for the electric utility industry.
Sales in the Irrigation Segment improved from the soft market
conditions of 2005. In worldwide markets, increased crop
prices, dry weather and water conservation drove the demand for
irrigation equipment and parts. Our efforts to open new
international markets paid dividends, as project business made a
meaningful contribution to growth. The Coatings Segment
operated very well in the face of sharply higher and volatile
zinc costs. Demand increased from infrastructure markets and
improved conditions in the industrial economy. As expected,
this allowed us to achieve improved operating leverage. The
Tubing Segment continued its strong performance. Looking at the
total year, we are pleased with the progress we made, yet not
satisfied. We believe there is more work to be done to realize
further improvements in top line growth, operating performance
and returns on capital," Mr. Bay said.
Infrastructure markets represented 73% of the fourth quarter net
sales. The engineered support structures segment accounted for
43% of the fourth quarter net sales. The segment includes
structures and specialty structures for lighting and traffic,
wireless communication and overhead signs, worldwide. Includes
all support structures outside of North America. Sales were
US$146.6 million, an increase of 7% from 2005 levels. In North
America and Europe, sales were comparable with last year. In
China, sales of wireless communication products and utility
structures were particularly strong.
Segment operating income decreased 10% to US$13.6 million and
was 9.3% of sales. Profitability was strong in China, but not
enough to fully offset poor performance in North American
specialty structures and a slight decline in European
profitability.
Utility support structures segment accounted for 23% of the
fourth quarter net sales. The segment includes steel and
concrete structures for the North American electric utility
industry. Sales increased 6.9% to US$74.0 million in 2006,
compared with US$69.2 million in 2005. The sales increase
reflects increased pricing and continued demand from utilities
to invest in the transmission grid. Order flow continued strong
and backlogs increased during the quarter.
Operating income increased 6% to US$8.2 million and was 11.1% of
sales.
Coatings segment represented 7% of the fourth quarter net sales.
The segment includes hot-dip galvanizing, anodizing and powder
coatings to protect against corrosion of steel and aluminum in
North American markets. Sales of US$30.7 million were 24% above
last year's US$24.7 million. The sales increase was mainly due
to increased pricing. During the fourth quarter, zinc prices
averaged nearly three times higher than the same period of 2005,
necessitating price increases to recover costs.
Operating income rose 86% to US$5.6 million, or 18.2% of segment
sales. The improvement in operating income reflects increased
pricing and reduced plant-operating costs, especially energy
costs.
Agricultural markets accounted for 26% of the fourth quarter net
sales. This includes the irrigation segment, which represented
21% of the fourth quarter net sales. The segment includes
center pivot and linear move mechanized irrigation equipment and
parts for agriculture in global markets. Sales improved 1.2% to
US$70.3 million in 2006, compared with US$69.5 million in 2005.
Increased international sales more than offset a modest decline
in North American sales. International sales were boosted by
project business and improved global market conditions.
Operating income declined 2.3% to US$5.1 million and was 7.2% of
sales.
Tubing segment represented 5% of the fourth quarter net sales.
This includes custom steel tubing for mechanical and structural
applications. Sales were 10% lower at US$19.6 million mostly
due to customers delaying shipments at year-end.
Operating income decreased 2% to US$3.6 million and was 18.3% of
sales.
Mr. Bay said, "We are expecting further progress in 2007. We
are off to a solid start with good order flow and record
backlogs in our structures businesses and positive market trends
in our other businesses. In our Engineered Support Structures
Segment, ongoing highway spending should provide solid support
for our lighting, traffic and overhead sign structures
businesses. We expect continued strength in international
infrastructure markets in Europe and Asia. In our utility
business, we expect growing transmission investment by electric
utilities. In the irrigation business, we believe greater
investments in ethanol production are supportive of global grain
prices and net farm income. However, irrigation equipment sales
will also be influenced by weather, water conservation and
government support programs. In the coatings business,
increased infrastructure spending and an improved industrial
economy should lead to continued strong results. We expect our
tubing business to continue to generate solid earnings. To meet
increased customer demands, we are in the process of increasing
capacity in selected operations worldwide. We expect for the
first time since the year 2000, that capital spending will
exceed depreciation and amortization for the year."
"We believe our current businesses offer great platforms for
further growth going forward. Many opportunities remain for us
to leverage our products, markets and capabilities in the
worldwide arena. Our businesses have the characteristics that
allow for improved operating performance and good returns on
invested capital. We will maintain our focus on growth, on
increasing operating income as a percent of sales and on return
on invested capital in 2007," Mr. Bay noted.
Headquartered in Valley, Nebraska, Valmont Industries Inc. --
http://www.valmont.com/-- is engaged in the manufacture of
fabricated metal products, metal and concrete pole and tower
structures. The company also operates in Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2006, Moody's Investors Service, in connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the US manufacturing sector,
confirmed the Ba2 Corporate Family Rating for Valmont Industries
Inc., as well as the rating on the company's US$150 Million
Senior Subordinated 6.875% Notes due 2014. Those debentures
were assigned an LGD5 rating suggesting noteholders will
experience an 82% loss in the event of default. Additionally,
Moody's revised its probability-of-default ratings and assigned
loss-given-default ratings on these loans and bond debt
obligations of the company:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$150 Mil. Sr.
Unsec. Bank
Facility
Due 2009 (Rev.) Ba2 Ba1 LGD3 34%
US$75 Mil. Sr.
Unsec. Bank
Facility due 2014 Ba2 Ba1 LGD3 34%
===========================
C A Y M A N I S L A N D S
===========================
CAI GLOBAL: Proofs of Claim Must be Filed by March 5
----------------------------------------------------
Creditors of Cai Global Master Fund, Ltd., which is being
voluntarily wound up, are required to present proofs of claim by
March 5, 2007, to Stuarts Corporate Services Ltd., the company's
liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Stuarts Corporate Services Ltd.
P.O. Box 2510, Grand Cayman KY1-1104
Telephone: (345) 949 3344
Fax: (345) 949 2888
CYPRESS GOLF: Proofs of Claim Must be Filed by March 5
------------------------------------------------------
Creditors of Cypress Golf C.V. Ltd., which is being voluntarily
wound up, are required to present proofs of claim on or before
March 5, 2007, to Cypress Advisors Inc., the company's
liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Cypress Advisors Inc.
28th floor, 65 East 55th Street
New York, NY 10022, USA
CYPRESS GOLF: Proofs of Claim Must be Filed by March 5
------------------------------------------------------
Creditors of Cypress Golf Ltd., which is being voluntarily wound
up, are required to present proofs of claim on or before
March 5, 2007, to Cypress Advisors Inc., the company's
liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Cypress Advisors Inc.
28th Floor, 65 East 55th Street
New York, NY 10022, USA
GUARDIAN INDUSTRIES: Proofs of Claim Must be Filed by March 6
-----------------------------------------------------------
Guardian Industries (Cayman) Ltd.'s creditors, which is being
voluntarily wound up, are required to present proofs of claim on
or before March 6, 2007, to Robert H. Gorlin, the company's
liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Robert H. Gorlin
2300 Harmon Road
Auburn Hills, Michigan 48326
USA
HORIZON INT'L: To Hold Final Shareholders Meeting on March 5
------------------------------------------------------------
Horizon International III, Ltd. will hold its final shareholders
meeting on March 5, 2007, at 11:30 a.m., at:
HSBC Financial Services (Cayman) Ltd.
P.O. Box 1109, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting was allowed
to appoint a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Cereita Lawrence
Sylvia Lewis
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
Telephone: 345 949-7755
Fax: 345 949-7634
ILIAD CAPITAL: Sets Final Shareholders Meeting for March 6
----------------------------------------------------------
Iliad Capital International Inc. will hold its final
shareholders meeting on March 6, 2007, at 9:00 a.m., at:
Third Floor, Harbour Centre,
P.O. Box 1348, Grand Cayman KY1-1108
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting was allowed
to appoint a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Q&H Nominees Ltd.
Third Floor, Harbour Centre
P.O. Box 1348, Grand Cayman KY1-1108
Cayman Islands
JFK 2001: Proofs of Claim Must be Filed by March 5
--------------------------------------------------
Creditors of JFK 2001 Aviation Leasing Ltd., which is being
voluntarily wound up, are required to present proofs of claim on
or before March 5, 2007, to Griffin Management Ltd., the
company's liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Griffin Management Limited
Janeen Aljadir
Caledonian Bank & Trust Limited
Caledonian House, 69 Dr. Roy's Drive
P.O. Box 1043, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 914 -4943
Fax: (345) 949-8062
MEITRAN HOLDING: Proofs of Claim Must be Filed by March 5
---------------------------------------------------------
Creditors of Meitran Holding Co., Ltd., which is being
voluntarily wound up, are required to present proofs of claim by
March 5, 2007, to Mark Wanless and Liam Jones, the company's
liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Mark Wanless
Liam Jones
Maples Finance Jersey Limited, 2nd Floor
Le Masurier House, La Rue Le Masurier
St. Helier, Jersey JE2 4YE
MILLENNIUM GROWTH: Proofs of Claim Must be Filed by Jan. 17
-----------------------------------------------------------
Creditors of Millennium Growth Fund, which is being voluntarily
wound up, are required to present proofs of claim on or before
Jan 17, 2007, to Cullinane and Derrie Boggess, the company's
liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1 9002
Telephone: (345) 914-6305
PERENNIAL INVESTMENTS: Proofs of Claim Must be Filed by May 18
--------------------------------------------------------------
Creditors of Perennial Investments Corp., which is being
voluntarily wound up, are required to present proofs of claim by
May 18, 2006, to John Cullinane and Derrie Boggess, the
company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
Perennial Investments' sole shareholder decided on May 18, 2006,
to place the company in voluntary liquidation under the Cayman's
Companies Law (2004 Revision).
John Cullinane and Derrie Boggess were1 appointed as liquidators
to facilitate the winding up of Perennial Investments Corp's
business.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
REDWOOD CAPITAL: Proofs of Claim Must be Filed by March 5
---------------------------------------------------------
Creditors of Redwood Capital V, Ltd., which is being voluntarily
wound up, are required to present proofs of claim by
March 5, 2007, to Kareen Watler and Sylvia Lewis, the company's
liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Kareen Watler
Sylvia Lewis
P.O. Box 1109 George Town, Grand Cayman
Cayman Islands
Telephone: 949-7755
Fax: 949-7634
REDWOOD CAPITAL: Final Shareholders Meeting Is Set for March 5
--------------------------------------------------------------
Redwood Capital V, Ltd. will hold its final shareholders meeting
on March 5, 2007, at:
HSBC Financial Services (Cayman) Ltd.
P.O. Box 1109, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting was allowed
to appoint a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Cereita Lawrence
Sylvia Lewis
P.O. Box 1109
Grand Cayman KY1-1102
Cayman Islands
Telephone: 949-7755
Fax: 949-7634
REDWOOD CAPITAL VI: Proofs of Claim Must be Filed by March 5
-----------------------------------------------------------
Creditors of Redwood Capital VI, Ltd., which is being
voluntarily wound up, are required to present proofs of claim on
or before March 5, 2007, to Kareen Watler and Sylvia Lewis, the
company's liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Kareen Watler
Sylvia Lewis
P.O. Box 1109 George Town, Grand Cayman
Cayman Islands
Telephone: 949-7755
Fax: 949-7634
SALESSE LTD: Proofs of Claim Must be Filed by March 6
-----------------------------------------------------
Creditors of Salesse, Ltd., which is being voluntarily wound up,
are required to present proofs of claim by March 6, 2007, to Q&H
Nominees Ltd., the company's liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Q&H Nominees Ltd.
P.O. Box 1348
George Town, Grand Cayman
Cayman Islands
Telephone: 949 4123
Fax: 949 4647
SITKA INVESTMENTS: Final Shareholders Meeting Is Set for March 5
----------------------------------------------------------------
Shareholders of Sitka Investments Ltd. will gather for a final
meeting on March 5, 2007, at:
Deloitte, Fourth Floor
Citrus Grove, P.O. Box 1787
George Town, Grand Cayman
Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
As reported in the Troubled Company Reporter-Latin America on
Feb. 2, 2007, Sitka Investments started liquidating assets on
Feb. 8, 2007. Creditors of the company were required to submit
particulars of their debts or claims on or before Dec. 19, 2006,
to Stuart K. Sybersma and Ian A.N. Wight, the company's
appointed liquidators.
Parties-in-interest may contact at:
Nicole Ebanks
Deloitte
P.O. Box 1787
George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 7500
Fax: (345) 949 8258
===============
C O L O M B I A
===============
BANCO DE BOGOTA: Holding Shareholders Meeting on March 21
---------------------------------------------------------
Banco de Bogota, Colombia's second largest bank will hold a
shareholders meeting on March 21, the bank said in a filing with
Superfinanciera.
The bank will ask its shareholders to approve a COP110 (US$0.05)
per share dividend, the filing said.
Business News Americas says bank president Alejandro Figueroa
will also propose merging the bank's trust fund units Fiduciaria
Bogota and Fiduciaria del Comercio.
* * *
As reported by Troubled Company Reporter on March 13, 2006,
Moody's Investors Service assigned a 'Ba3' long-term foreign
currency deposit rating on Banco de Bogota and changed the
outlook to stable from negative. Moody's also assigned a 'D+'
bank financial strength rating on the company, while the outlook
remained stable.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO INTERCONTINENTAL: CenBank Audit Hearing Moved to Feb. 19
--------------------------------------------------------------
The National District's 2nd Collegiate Court in the Dominican
Republic moved to Feb. 19, 2007, a hearing in which the defense
attorneys of the indicted ex-president of the collapsed bank
Baninter, Ramon Baez Figueroa, filed a motion to force the
Central Bank to handover the rough draft of the agency's assets
liquidation audit, the Dominican Today reports.
Judge Sara Veras postponed the hearing at the behest of the
Central Bank's lawyers, who requested a short reprieve before
presenting their argument.
Mr. Figueroa is facing an embezzlement case that contributed to
the collapse of Banco Intercontinental in 2003.
BBO, Ortega & Asociados had conducted an audit on Banco
Intercontinental at the central bank's request. However, Mr.
Figueroa's attorneys, who asked copies of the report on
Dec. 20, 2006, argued that the central bank refuses to give them
a copy of the audit in relation to the liquidation process of
Banco Intercontinental's assets.
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.
=============
E C U A D O R
=============
BANCO DEL PICHINCHA: Fitch Affirms Low B Foreign Curr. Ratings
--------------------------------------------------------------
Fitch has affirmed Banco del Pichincha's long-term and short-
term Issuer Default Ratings as:
-- Foreign currency long-term IDR at 'B-';
-- Foreign currency short-term rating at 'B'; and
-- Support rating at '5'.
The Rating Outlook is Negative.
The affirmations reflect Pichincha's strong franchise in
Ecuador, its broad deposit base, its adequate liquidity and its
improving financial performance. Pichincha's ratings are above
Ecuador's sovereign ratings (long-term IDR 'CCC' on a Negative
Watch by Fitch) because it has very little exposure to
government debt and it has sound liquidity backed by high
quality assets. Concerns over tight capital, as well as the
prevailing uncertainty in its operating environment, restrain
Pichincha's ratings.
Pichincha's ratings have a Negative Outlook in line with the
Outlook on Ecuador's sovereign ratings, downgraded on
Jan. 23, 2007, reflecting the still troubled political
environment there. Government intervention on Pichincha's
ability to manage liquidity and its balance sheet would result
in a downgrade. The bank also needs to further increase its
capacity to absorb losses.
Despite the favorable global context, the Ecuadorian economy has
not performed at its full potential as it is hindered by
political strife that discourages investment. The new
government has sent mixed signals that point towards higher
intervention in the economy, greater political grip over the
Central Bank and possible restrictions on bank activities.
Pichincha's loan portfolio grew 16% (year to date at September
2006) driven by retail customers, representing 28% of the
portfolio at that date (vs. 19% at December 2003), and boosting
interest revenues 22% year-over-year (YOY) at September 2006.
Non-interest revenues followed closely growing 21% at the same
date. Non-recurring revenues, moderate operating cost growth
(+15% YOY at September 2006) and steady loan provisions
contributed to net income growth of 26% YOY at September 2006.
The outlook ahead is clouded by the political uncertainty.
Pichincha's focus on consumer banking results in higher than
average PDLs. Nevertheless, asset quality improved and loan
loss reserves cover 139% of the CDE portfolio at September 2006,
up from 109% a year earlier.
Pichincha's broad, low cost deposit base remains a strength and
grew 21% YOY at September 2006. Liquidity is high by internal
policy. Historically strong liquidity backed by quality assets
may be restricted by government direction to repatriate assets
held abroad.
Capital adequacy remained fairly stable during 2006 at about
11.5% -- the lowest among top Ecuadorian banks -- leaving little
room for growth or to face unexpected portfolio deterioration.
Capital is mostly Tier I (about 75%) and has little subordinated
debt; the bank plans to issue up to US$45 million convertible
bonds to fund growth.
Pichincha's support rating of '5' is indicative of Fitch's
belief that in spite of a dominant market position and systemic
importance, the bank would not be able to rely on government
support, if it were necessary, given Ecuador's weak fiscal
standing, the lack of a lender of last resort and apparent
political ill-will towards banks.
Banco del Pichincha is Ecuador's largest bank with about 25% of
deposits and 26% of loans at September 2006. Incorporated in
1906, the group offers a wide array of services to corporate,
middle market and consumer customers. Pichincha is tightly
controlled by Mr. Fidel Egas Grijalva who holds over 65% of the
company's stock directly and indirectly.
BANCO DELA PRODUCCION: Fitch Affirms Low B Foreign Curr. Ratings
----------------------------------------------------------------
Fitch has affirmed Banco de la Produccion's aka Produbanco long-
term and short-term Issuer Default Ratings as:
-- Foreign currency long-term IDR at 'B-';
-- Foreign currency short-term rating at 'B'; and
-- Support rating at '5'.
The Rating Outlook is Negative.
The affirmations reflect Produbanco's good franchise in the
corporate market, revenue diversification, strong liquidity,
quality and depth of its management, sound financial performance
and adequate capitalization. The bank's small exposure to
government debt and strong liquidity backed by high quality
assets warrant higher ratings than that of the sovereign. The
ratings are constrained by Ecuador's (long-term IDR 'CCC' on a
Negative Watch by Fitch) country ceiling of 'B-' and by the
prevailing uncertainty in Produbanco's operating environment.
Produbanco's ratings have a Negative Outlook in line with the
Outlook on Ecuador's sovereign ratings, downgraded on
Jan. 23, 2007, reflecting the still troubled political
environment there. Government's intervention in the bank's
ability to manage liquidity and its balance sheet would result
in a downgrade of Produbanco's ratings.
Despite the favorable global context, the Ecuadorian economy has
not performed at its full potential as it is hindered by
political strife that discourages investment. The new
government has sent mixed signals that point towards higher
intervention in the economy, greater political grip over the
Central Bank and possible restrictions on bank activities.
Produbanco's loan portfolio grew 9.7% (year to date at September
2006) shifting towards higher retail participation. Interest
revenues grew 22% year-over-year or YOY at September 2006, while
non-interest revenues (stable but shifting towards service fees)
contributed a solid 45% of total revenues, reflecting the bank's
targeted growth and cross-sell strategies. A tight cost control
and stable loan loss provisions completed a sound performance
that saw net income grow 36% YOY at September 2006. The outlook
ahead is clouded by the uncertain operating environment.
Asset quality improved, Produbanco boasts PDLs of 0.84% vs. an
average of 1.85% for the industry. Loan loss reserves cover
112% of CDE loans at September 2006, up from 95% a year earlier.
Loan portfolio concentration remains a challenge but
diversification efforts continue. Produbanco's deposits grew
11% YOY at September 2006, and deposit mix improved. Liquidity
is very high with over 45% liquid assets at September 2006;
these are mainly short-term investments in low risk investment
grade securities in the USA. Liquidity ahead may be threatened
by potential restrictions on assets held abroad.
Capital adequacy ratios improved slightly during 2006 reaching
14.96% at September 2006, the highest ratio among top Ecuadorian
banks. Future growth and the eventual redemption of convertible
bonds (about US$23 million included in the regulatory capital)
should be covered by the bank's strong profitability and capital
generation.
Produbanco's support rating of '5' is indicative of Fitch's
belief that in spite of important retail deposit market share,
the bank would not be able to rely on government support, if it
were necessary, given Ecuador's weak fiscal standing, the lack
of a lender of last resort and apparent political ill-will
towards banks.
Incorporated in 1978, Produbanco is Ecuador's fourth largest
bank and holds about 10% of deposits and loans at September
2006. Historically focused on corporate banking, it expanded
into retail banking in the past few years. It is controlled by
its main executives and is also active in fund management and
securities brokerage.
=====================
E L S A L V A D O R
=====================
MILLICOM INTERNATIONAL: Posts US$544MM Fourth Quarter Revenues
--------------------------------------------------------------
Millicom International Cellular SA's revenues increased 99% to
US$544 million in the fourth quarter of 2006, compared with the
US$273 million recorded in the fourth quarter of 2005.
Subscribers increased 99% to 14.9 million in the fourth quarter
of 2006, compared with the same quarter in 2005.
EBITDA for the 2006 fourth quarter increased 71% to US$229
million, compared with the US$134 million in the 2005 fourth
quarter.
Profit before tax for the fourth quarter of 2006 increased to
US$99 million, from US$76 million in the fourth quarter of 2005.
Net profit for in the fourth quarter of 2006, including
discontinued operations, rose US$50 million, from US$16 million
in the fourth quarter of 2005.
Basic earnings per common share for the fourth quarter of 2006
increased to US$0.50, compared with the US$0.16 recorded in the
same quarter in 2005.
Revenues for the full year 2006 increased 71% to US$1,576
million, compared with US$923 million in 2005. EBITDA rose 64%
to US$717 million, compared with US$438 million. Profit before
tax for the full year of 2006 was US$354 million, compared with
the US$171 million in 2005. Net profit for the full year,
including discontinued operations, increased to US$169 million
in 2006, compared with US$10 million in 2005. Basic earnings
per common share increased to US$1.68 in Dec 2006, compared with
US$0.10 in 2005.
Millicom International Chief Executive Officer Marc Beuls
commented, "In the fourth quarter Millicom again delivered
exceptional growth surpassing what was a record breaking third
quarter. Fourth quarter revenues increased by 99% from the
fourth quarter of 2005 to US$544 million and EBITDA rose by 71%
to US$229 million. In the fourth quarter, 3.7 million new
subscribers were added, of which 1.9 million came through the
acquisition of Colombia Movil. The very high levels of
subscriber intake, 7.4 million for the whole year, went in
tandem with increased capex during 2006. Capex for the fourth
quarter was US$247 million giving a total of US$616 million for
the year, excluding Pakistan and other discontinued operations.
This reflected strong investment in the networks in all our
regions, but particularly in Colombia and the Democratic
Republic of Congo. The progress made in building a new network
in Congo allowed us to launch the Tigo brand this January, and
with over 100,000 subscribers today, the first signs for the
Congo business are encouraging. We have also launched Tigo in
Sri Lanka and expect Tigo to be an important catalyst for this
business too."
"Central and South America remain the key drivers of growth
reflecting the success of Tigo in the second year after launch.
In the fourth quarter, revenues in Central America were up 77%
year on year and EBITDA was up 62%. In South America, excluding
Colombia where we launched Tigo in November, underlying
quarterly revenue growth was 80% and EBITDA growth was 109%. In
Africa, with revenues and EBITDA up by 59% and 53%,
respectively, we are already seeing the effect of the launch of
Tigo and we believe that in the future our African businesses
can achieve similar if not higher levels of growth than those we
have enjoyed from Latin America. In the fourth quarter, we
cleaned up the subscriber base in Tanzania which affected net
subscriber intake for the quarter but helped increase ARPUs as
these customers were inactive," Mr. Beuls noted.
"Yesterday we completed the sale of Paktel for an enterprise
value of US$460 million. The number of subscribers for Pakistan
was similar to that for Colombia and as such, the total number
of subscribers at year-end has not been materially impacted. We
believe our opportunity as the third operator in Colombia is a
more attractive prospect and we expect to see Colombia Movil
rise towards average group margins in the medium term. The
current and prior year results have been presented to show the
continuing businesses separately by segregating the discontinued
operations. We have also merged the South Asia and South East
Asia clusters into one Asian operation," Mr. Beuls stated.
Headquartered in Bertrange, Luxembourg, and controlled by
Sweden's AB Kinnevik, Millicom International Cellular S.A. --
http://www.millicom.com/-- is a global telecommunications
investor with cellular operations in Asia, Latin America and
Africa. It currently has cellular operations and licenses in 16
countries. The Group's cellular operations have a combined
population under license of around 391 million people.
The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras. The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay. The population under license in South
America at December 2005 is 15.2 million.
* * *
Standard & Poor's Ratings Services placed its 'B+' long-term
corporate credit rating and 'B-' senior unsecured debt ratings
on Luxembourg-headquartered emerging-markets wireless
telecommunications operator Millicom International Cellular S.A.
on CreditWatch with positive implications, following the signing
of an agreement for sale by Millicom of its 88.9% stake in
Paktel Ltd. to China Mobile Communications Corp.
Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: New Baggage Charging Policy Takes Effect
---------------------------------------------------------
British Airways Plc has revised its excess baggage charging
policy to simplify existing rules.
The new baggage rules took effect on Feb. 13.
Currently, more than 98% of customers travel within their free
luggage allowance. The majority of these customers check in no
more than one item of luggage per person. For these customers,
there is no change.
This includes all travelers to the USA, the Caribbean, Nigeria,
Mexico and Brazil. Customers for these destinations will still
be able to check in two pieces of luggage free of charge. The
free 23kg allowance for economy-class customers to other
destinations will be limited to a single item of luggage.
BA has absolutely no intention of discriminating against
passengers who cannot comfortably carry a 23kg bag. Where it is
clear that a passenger cannot manage one bag, the airline will
let them check in an additional bag (or more) provided the total
weight is within the 23kg limit.
The airline's free luggage allowances, for both carry-on and
checked-in luggage, remain among the most generous in the
aviation industry. Many other airlines offer smaller free
allowances and charge for additional items such as skis, golf
bags or other sports equipment.
The change was disclosed of in a press release last June.
Details have been on the ba.com website since, and issued to
travel agents and frequent flyers.
For the 2% of customers who wish to exceed their free
allowances, BA has decided to simplify the charges they pay to
make them easier to understand.
At present charges vary according to weight, route and class of
travel. The airline is replacing these with three simple rates
for bags additional to the free allowance:
-- GBP30 per extra bag on domestic flights,
-- GBP60 per extra bag on European flights, and
-- GBP120 per extra bag on long-haul flights.
Customers will get a 30% discount on these rates if they pre-pay
online. The changes will not come into full effect until
September 2007.
In the vast majority of instances, the new policy will be
cheaper or comparable for customers who wish to fly with excess
baggage on top of their free allowances.
About the Company
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As reported on Feb. 7, Moody's Investors Service changed the
outlook on the Ba1 corporate family and Ba2 senior unsecured
debt ratings of British Airways Plc and its guaranteed
subsidiaries to positive from negative.
===============
H O N D U R A S
===============
DOLE FOOD: Unit Launches Web Site with Many Interactive Tools
-------------------------------------------------------------
Dole Fresh Fruit International, Ltd. -- Dole Food Co., Inc.'s
fresh fruit division in Latin America -- has launched the
httP://www.doleorganic.com/ Web site that houses several
interactive tools aimed at bringing consumers closer to its
organic banana operations. Dole Fresh is launching this
innovative system in response to demand from consumers who
increasingly want specific information relative to the farms
where the Dole Fresh organic bananas are grown or purchased from
growers.
Key to the system is the Dole Fresh organic bananas' label,
which is printed with a unique farm code that corresponds to the
specific farm where the product was sourced. When consumers
enter the indicated code into the new Dole Web site specifically
developed for this purpose, they gain access to the farm's page,
where they can find information regarding the farm's
characteristics -- country, location, certifications -- have the
opportunity to learn more about the grower, read stories about
Dole-sponsored projects in the communities and look at pictures.
The Dole Fresh organic Web site has a link to the most advanced
satellite images technology available on the Internet, enabling
consumers to actually view the farm where the bananas they
purchased were grown and the neighboring areas.
"This new tool is both groundbreaking and interactive.
Consumers can now virtually visit the farms where the Dole
organic bananas they buy are grown. It is an educational tool,
which increases transparency and thus consumer confidence in our
products and in our brand," says Frans Wielemaker, Director of
Sourcing and Development Organic Program of Dole Fresh Fruit
International in San Jose, Costa Rica.
Dole Fresh produces organically grown bananas in its own farms
and sources from independent organic growers located in
Honduras, Ecuador, Dominican Republic, Colombia and Peru for the
European, North American and Japanese Markets and also in the
Philippines for the Asian Markets. About 100% of Dole Fresh's
organic bananas are certified organic and adhere to the organic
production standards as set by the law in the US, EU or Japan.
Headquartered in Westlake Village, California, Dole Food
Company's -- http://www.dole.com/-- is a producer and marketer
of fresh fruit, fresh vegetables and fresh-cut flowers, and
markets a line of packaged foods. The company has four primary
operating segments. The fresh fruit segment produces and markets
fresh fruit to wholesale, retail and institutional customers
worldwide. The fresh vegetables segment contains operating
segments that produce and market commodity vegetables and ready-
to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia. The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods.
Dole's fresh-cut flowers segment sources, imports and markets
fresh-cut flowers, grown mainly in Colombia and Ecuador,
primarily to wholesale florists and supermarkets in the United
States.
* * *
As reported in the Troubled Company Reporter on Jan. 31, 2007,
Moody's Investors Service downgraded the ratings of Dole Food
Company Inc. as follows:
-- corporate family rating to B2 from B1;
-- probability of default rating to B2 from B1;
-- senior secured bank credit facilities to Ba3 from Ba2;
-- senior unsecured notes to Caa1 from B3; and
-- various shelf registrations to (P)Caa1 from (P)B3.
Moody's said the outlook is stable.
On Dec. 11, Standard & Poor's Ratings Services lowered its
ratings on Dole Food Co. Inc. and Dole Holding Co. LLC,
including its corporate credit rating, to 'B' from 'B+'.
The ratings were removed from CreditWatch, where they were
placed on Aug. 9, 2006, with negative implications, following
materially weaker-than-expected financial performance in the
first half of fiscal 2006, which typically represents a
substantial portion of cash flow. S&P said the outlook is
negative. The company's total debt outstanding was US$2.3
billion at Oct. 7, 2006.
=============
J A M A I C A
=============
SUGAR COMPANY: Makes First Shipment to London
---------------------------------------------
Sugar Company of Jamaica has made its first delivery to London,
England, The Jamaica Observer reports.
The Observer relates that the Sugar Company has shipped 21,000
tons valued at US$12 million since the start of the 2006/2007
crop, as part of Jamaica's sugar export arrangement with the
European Union.
Jamaica Cane Products Sales general manager Karl James told The
Observer, "Later this month, we are hoping to have two
shipments; one to the US (United States), which will be
somewhere between 5,000 and 6,000 tons, and then another 21,000
tons to London."
After this month's shipments, Jamaica will make at least one
delivery every month over the next five months, The Observer
says, citing Mr. James.
According to The Observer, Jamaica hopes to earn US$90 million
this year from the export of 140,000 tons of the sweetener.
Most of the shipment will be made to London.
About 126,000 of the 140,000 tons will be sold to London. The
remainder will be shipped to the US, The Observer says, citing
Mr. James.
The Observer underscores that last harvest Jamaica earned about
US$88 million from the export of 135,000 tons of the raw
crystals. This year, the nation is expecting to produce 160,000
tons of sugar from the milling of 1.6 million tons of cane.
However, since the start of the season in December 2006, some of
the country's manufacturing plants have undergone teething
problems.
Mr. James is positive that the factories will solve those
problems by the end of February, resulting in greater production
levels, The Observer states.
Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production. According to published
reports, the Jamaican government has taken responsibility for
payment of the firm's debts.
SUGAR COMPANY: Minister Clarke Provides Details on Loan
-------------------------------------------------------
The Hon. Roger Clarke, Jamaica's agriculture minister, disclosed
details surrounding the US$44 million loan it gave Sugar Company
of Jamaica, Jamaica Information Service reports.
Minister Clarke responded to questions thrown by opposition
leaders on how the money was used by Sugar Company.
"The funds were used for the partial restructuring of the Sugar
Company of Jamaica's debt with the elimination of the overdraft
being carried by the company with the National Commercial Bank;
and providing support for the operations of the SCJ and its
affiliated companies, St. Thomas and Trelawny Sugar Companies
Limited during the 2007 pre-crop period," Mr. Clarke explained,
the Jamaica Information Service says. He added that the money
was used to purchase and repair equipment used on the sugar
plantations.
"Funds acquired also facilitated payment of creditors and the
servicing of existing long term debt; provided the means by
which the SCJ undertook out of crop maintenance and preparation
for the 2006/2007 crop; and for the provision of support for the
operations of the Frome, Monymusk, and Bernard Lodge sugar
companies," Mr. Clarke said, according to the Jamaica
Information Service.
Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production.
* JAMAICA: Gov't Using Oil Savings to Pay for Sugar Co.'s Debts
---------------------------------------------------------------
To recall, the Jamaican government has assumed Sugar Company of
Jamaica's debts to help the company attain profitability.
The government is using money earned from its oil deal with
Venezuela, the so-called Petrocaribe program, to pay for Sugar
Company's liabilities, The Associated Press says, citing
Agriculture Minister Roger Clarke.
The agriculture minister disclosed that about US$44 million
(EUR33.9 million) has been given to Sugar Company to pay
suppliers and creditors. The government official added a
portion of the money was also used to refurbish factories for
the 2007 sugar crop, AP relates.
Jamaica is among the 13 Caribbean nations that signed oil deals
with Venezuela in 2005. The program provides oil for member
countries at preferential prices.
Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production.
* * *
On May 26, 2006, Moody's Investors Service upgraded Jamaica's
rating under a revised foreign currency ceiling:
-- Long-term foreign currency rating: Ba3 from B1 with
stable outlook.
===========
M E X I C O
===========
ADVANCED MARKETING: Panel Objects to Capstone as Advisor
--------------------------------------------------------
The Official Committee of Unsecured Creditors in Advanced
Marketing Services Inc. and its debtor-affiliates' Chapter 11
cases and Kelly Beaudin Stapleton, the U.S. Trustee for Region
3, object to the Debtors' request to retain Capstone Advisory
Group LLC as their financial advisors.
"The Debtors have not demonstrated the need to retain Capstone
as an investment banker," Thomas F. Driscoll III, Esq., at
Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware,
tells the United States Court for the District of Delaware.
Representing the Committee, Mr. Driscoll contends that
Capstone's services may be duplicative of those performed by the
Debtors' other professionals.
Rather than deplete the Debtors' limited resources by engaging
Capstone to assist Houlihan, Lokey, Howard & Zukin Capital,
Inc., in its efforts to market and refinance the Debtors, the
Committee argues that the Debtors, with the help of their other
professionals, could adequately perform those services.
Also, Capstone is not an investment banker but a financial
advisor and should not be entitled to any Success Fees, Mr.
Driscoll tells Judge Christopher S. Sontchi. The Committee
believes that Capstone should be compensated for actual work
done and actual value provided; Capstone should not receive a
windfall at the expense of the unsecured creditor body.
"The Court must condition Capstone's retention upon a review of
Capstone's fees and expenses pursuant to Section 330 of the
Bankruptcy Code so that the Court, the Committee, the Office of
the United States Trustee and other parties-in-interest may
submit any appropriate objections to such fees and expenses,"
Mr. Driscoll explains.
Capstone "should provide hourly rates for its professionals,"
Ms. Stapleton tells the Court.
Certain terms and provisions of the Indemnification Provisions
contained in The Capstone Agreements and the Application are
likewise overly broad and must be revised, Mr. Driscoll points
out.
As reported in the Troubled Company Reporter on Feb. 7, 2007,
the Debtors sought to employ Capstone to:
(a) analyze and challenge the Debtors' short-term and long-
term cash flow forecasts;
(b) assist management, as appropriate, in developing
corresponding liquidity analysis;
(c) analyze the Debtors' business plan and any alternative
business plans suggested by the Debtors;
(d) assist the Debtors and their advisors in identifying and
evaluating strategic financial and restructuring
alternatives;
(e) support or assist investment banks of the Debtors in
their efforts to sell or restructure the business entity;
(f) act as a liaison between the Debtors and their investment
bankers;
(g) assist in providing data and information requested by
Houlihan, Lokey, Howard & Zukin Capital, Inc., in its
efforts to market and refinance the Debtors;
(h) assist Houlihan Lokey in its efforts to market or
refinance the Debtors;
(i) assist Houlihan, Lokey in identifying and executing an
alternative transaction that best meets the objectives of
the Debtors' and their estates; and
(j) perform other tasks as may be requested by the Debtors
from time to time.
Capstone has provided services to the Debtors since May 2006.
At that time, Capstone was hired, through the Debtors' counsel,
O'Melveny & Myers, LLP, to review the Debtors' short-term and
long-term financial forecasts, and assist the Debtors in
identifying and evaluating restructuring alternatives.
The Debtors will pay Capstone hourly rates on actual hours
worked at Capstone's standard hourly rates in effect when the
services are rendered. Capstone's hourly rates are:
Designation Hourly Rate
----------- -----------
Executive Directors US$505 - US$595
Staff US$275 - US$475
Support US$90 - US$200
The Capstone employees that are expected to be directly
responsible for the engagement and their hourly rates are:
* Mark Rohman, Capstone Executive Director -- US$595
* Monique Atkins -- US$450
Representing the Debtors, Mark D. Collins, Esq., at Richards,
Layton & Finger, PA, in Wilmington, Delaware, noted that there
will be a fee awarded to Capstone upon the completion of a
successful sale or refinancing of the Debtors, equal to 30% of
any transaction fee or financing fee paid by the Debtors to
Houlihan Lokey.
In addition, Mr. Collins stated that Capstone will be reimbursed
for all reasonably incurred out-of-pocket expenses in connection
with the rendering of services. These include travel, lodging,
costs of reproduction, reasonable out-of-pocket counsel fees and
other direct expenses.
The Debtors will also indemnify Capstone for its services.
Mr. Rohman assured the Court that Capstone and its partners and
associates do not have any connection with or any adverse
interest to the Debtors, their creditors, or any other parties-
in-interest.
Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry. The company
has operations in the U.S., Mexico, the United Kingdom and
Australia and employs approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.
When the Debtors filed for protection from their creditors, they
listed estimated assets and debts of more than US$100 million.
The Debtors' exclusive period to file a chapter 11 plan expires
on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue
No. 5; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
ADVANCED MARKETING: Hires Focus Management as Financial Advisor
---------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates
obtained authority from the U.S. Bankruptcy Court for the
District of Delaware to employ Focus Management Group U.S.A.
Inc. to provide them with financial reporting, consulting and
advisory services in their Chapter 11 cases.
As reported in the Troubled Company Reporter on Feb. 8, 2007,
Mark D. Collins, Esq., at Richards, Layton & Finger, PA, at
Wilmington, Delaware, told the Court that Focus has substantial
experience in both the financial analysis area and certain
insolvency services, having served in Chapter 11 cases on behalf
of debtors and creditors.
Specifically, Focus is expected to:
(a) prepare and, from time to time, update cash flow
forecasts, other projections and other financial data for
the Debtors;
(b) assemble and prepare information for the Debtors' DIP
lenders;
(c) assist the Debtors in monitoring compliance with
operating cash flow requirements as per the loan
agreement with the Debtors' DIP lenders;
(d) assist the Debtors in the preparation of reports to the
United States Trustee;
(e) assist the Debtors in complying with guidelines
established by the U.S. Trustee;
(f) assist the Debtors in connection with other financial
operations and related tasks;
(g) periodically communicate with and participate in meetings
with the Debtors' management and other parties-in-
interest regarding the Debtors' financial condition; and
(h) perform other functions as requested by the Debtors,
their legal counsel, and their financial advisors.
Mr. Collins added that Focus' retention centers around its
familiarity from prepetition work with certain aspects of the
Debtors' books, records and financial reporting needs.
Focus will be working on a number of projects either in
conjunction with the Capstone Advisory Group, LLC, or under the
supervision of Capstone.
Firm's Compensation
Prior to the Dec. 29, 2006, the Debtors paid Focus US$1,044,850
for fees and expenses for prepetition services rendered by Focus
to the Debtors, as well as to serve as retainer, of which
US$775,452 was received during the 90 days prior to the Petition
Date.
After deducting fees and expenses previously billed -- and paid
-- and estimated unbilled prepetition amounts for prepetition
services rendered, US$346,626 remains as a retainer. The
balance will be available to be applied to postpetition services
and any prepetition fees and expenses incurred but unprocessed,
prior to the Petition Date.
The Debtors will pay Focus its hourly fees and reasonable
expenses. Focus' discounted hourly rate schedule for the
Debtors is:
Designation Hourly Rate
----------- -----------
Managing Directors US$375
Senior Consultants US$350
The Debtors and Focus also agreed to certain indemnification
provisions.
Robert O. Riiska, a managing director at Focus, assured the
Court that Focus' partners and associates do not have any
connection with or any interest adverse to the Debtors, their
creditors, or any other party-in-interest, or their attorneys.
About Advanced Marketing
Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry. The company
has operations in the U.S., Mexico, the United Kingdom and
Australia and employs approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.
When the Debtors filed for protection from their creditors, they
listed estimated assets and debts of more than US$100 million.
The Debtors' exclusive period to file a chapter 11 plan expires
on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue
No. 5; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DIRECTV GROUP: Inks Interactive Usage Accord with Nielsen Co.
-------------------------------------------------------------
DIRECTV, Inc., and The Nielsen Co. have entered into an
agreement to test the development of information that will
enable them to understand the daily viewing behaviors, trends
and characteristics of customers who use DIRECTV's interactive
television services.
In developing its new metrics for measuring interactive usage,
Nielsen will use aggregated and anonymous click-stream data from
a new television measurement panel of 300,000 DIRECTV
interactive customers. Information from the test could lead to
an enhanced consumer experience and the creation of more
valuable interactive opportunities for advertisers.
DIRECTV respects the privacy of its customers, and unless
customers provide consent through an opt-in process, DIRECTV
only provides viewing data on an aggregated and anonymous basis.
"As the DIRECTV interactive TV space continues to rapidly
evolve, we need to develop a complete and accurate understanding
of how our customers use these services," said Eric Shanks,
DIRECTV Entertainment's executive vice president. "Through our
test with Nielsen we hope to develop the usage information our
programming and advertising partners need to take full advantage
of our interactive platform and reach their target audiences in
a truly unique way."
The agreement is the first of its kind to be announced since the
creation of Nielsen DigitalPlus, a new service created by
Nielsen to help clients better understand information
opportunities available through consumer interaction via digital
set top boxes.
"This agreement with DIRECTV is an exciting new opportunity to
gain valuable insight into how new technology is influencing the
behavior of interactive satellite subscribers," said Scott L
Brown, Nielsen's senior vice president. "The television
industry is at the very beginning of understanding the uses and
applications of expanding digital services. Nielsen is using
our full resources to help clients create valuable new uses for
their digital information."
About The Nielsen Co.
The Nielsen Co. is a global information and media company with
leading market positions and recognized brands in marketing
information (ACNielsen), media information (Nielsen Media
Research), business publications (Billboard, The Hollywood
Reporter, Adweek), trade shows and the newspaper sector
(Scarborough Research). The privately held company has more
than 42,000 employees and is active in more than 100 countries,
with headquarters in Haarlem, the Netherlands, and New York,
USA.
About DIRECTV
Headquartered in El Segundo, California, The DirecTV Group, Inc.
(NYSE: DTV) -- http://www.directv.com/-- provides direct
broadcast satellite service to more than 15 million customers in
the US and more than 1.5 million customers through its DirecTV
Latin America segment.
* * *
As reported on Jan. 10, 2007, Standard & Poor's Ratings Services
affirmed its ratings on satellite direct-to-home TV provider The
Directv Group Inc., including the 'BB' corporate credit rating.
S&P said the outlook is stable.
FOAMEX: Chap. 11 Emergence Cues S&P to Raise Rating to B from D
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Linwood, Penn.-based Foamex L.P. to 'B' from 'D',
following the company's emergence from bankruptcy on
Feb. 12, 2007. S&P affirmed all other ratings. The outlook is
stable.
"The ratings reflect the company's exposure to volatility in raw
material prices and economic cycles, customer concentration,
pricing and volumes vulnerable to weak automotive fundamentals
in North America, and a highly leveraged capital structure,"
said Standard & Poor's credit analyst Robyn Shapiro. "The
rating also reflects the company's leading market share and
manageable debt maturity schedule."
With revenues of about US$1.4 billion, Foamex is the leading
manufacturer and distributor of flexible polyurethane and
advanced polymer foam products, focused mainly on North America.
The company's foam products business (about 45% of sales),
serves the bedding, furniture and consumer products industries
with a mixture of commodity and specialty cushioning foams.
Automotive products (about 30% of sales) include foam rolls and
laminate products manufactured for seat covers and other
interior soft-trim applications. Carpet cushion products (about
15% of sales) consist of carpet underlay utilizing scrap foam
generated by the company as well as outside sources. Foamex
also maintains a technical foams business (about 10% of sales)
that offers more attractive margins and growth opportunities due
to higher value-added applications and technological innovation.
Overall, the business is vulnerable to consumer spending trends
and the level of activity in the automotive and housing sectors.
The company's customer concentration is a limiting factor, with
the largest customer in the automotive products segment. The
top five customers in 2005 represented about 27% of total sales.
The company's selection of proprietary products and production
techniques offsets some exposure to higher volume commodity-like
products. In addition, Foamex's network of strategically
located manufacturing sites in North America provides a
competitive advantage for distribution because certain types of
foams are expensive to transport.
Movements in raw material costs, particularly toluene
diisocyanate and polyol, can affect Foamex's production
economics and profit margins. Feedstock costs will be affected
by oil price trends and can have an impact on near-term profit
margins. The escalation of raw material costs during 2005 and
the decline in operating margins that ensued highlights a key
risk factor, particularly during times of rapid cost increases
and lower demand linked to difficult economic conditions. While
Foamex should be able to continue to pursue price increases to
offset any escalation in raw materials costs, this may occur
with some time lag and the company may not be able to fully
recover the increase in costs. Operating margins before
depreciation and amortization are expected to remain in the 10%-
12% range, a substantial improvement from the 7% level achieved
in 2005. Although the company has had meaningful productivity
gains through its restructuring efforts to control costs and
reduce overhead, a significant slowdown in demand or rising
costs could cause margins to decline.
Foamex entered voluntary bankruptcy protection on
Sept. 19, 2005, prompted by the company's high leverage combined
with a material decline in operating performance. Operating
performance had deteriorated because of significant price
increases in the company's raw materials combined with a bond
maturity, lack of liquidity, and a downturn in one of the
company's primary end markets, the automotive industry.
However, increased operating efficiencies resulting from
restructuring initiatives and price increases implemented by
management have led to a meaningful improvement in operating
results over the last 12 months. Sustained improvement in
operating performance despite potential softening end markets,
including housing and automotive, along with strengthening
credit ratios would provide upside potential for the prospective
rating over the intermediate term.
Headquartered in Linwood, Pennsylvania, Foamex International
Inc. manufactures and distributes flexible polyurethane and
advanced polymer foam products. As of Jan. 1, 2006, the
company's operations were conducted through its wholly owned
subsidiary, Foamex L.P., and through Foamex Canada Inc., Foamex
Latin America, Inc. and Foamex Asia, Inc., which are wholly
owned subsidiaries of Foamex L.P. The company has five business
segments: Foam Products, Carpet Cushion Products, Automotive
Products, Technical Products and Other Products. On
Sept. 19, 2005, the company and certain of its domestic
subsidiaries, including Foamex L.P., the company's primary
operating subsidiary, filed voluntary petitions for relief under
Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the District of Delaware. The Latin
American subsidiary is in Mexico.
GUESS? INCREASE: Board Okays Two-for-One Stock Split
----------------------------------------------------
Guess?, Inc.'s Board of Directors has approved a two-for-one
stock split of the company's common stock. The stock split will
be effected in the form of a 100% stock dividend to shareholders
of record at the close of business on Feb. 26, 2007.
Stockholders will receive one additional share for each share
held on that date. The additional shares will be distributed
beginning March 12, 2007.
In a separate action, the Board of Directors has also authorized
the initiation of a quarterly cash dividend of US$0.12 per share
on the company's common stock. The first quarterly dividend is
payable on March 12, 2007, to shareholders of record as of the
close of business on Feb. 26, 2007. Because the record date for
the first quarterly dividend precedes the distribution date for
the stock split, the cash dividend amount will be on a pre-split
basis. While the company intends to pay regular quarterly
dividends for the foreseeable future, all subsequent dividends
will be reviewed quarterly and declared by the Board of
Directors at its discretion. Any future dividends will be
adjusted for the split.
"We are pleased to announce the two-for-one stock split and the
initiation of a quarterly cash dividend," said Guess? President
and Chief Operating Officer Carlos Alberini. "These actions
reflect our confidence in our company and recognize our solid
financial performance and strong balance sheet. We believe that
these actions will result in increased trading liquidity and a
broader investor base in the future."
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.
PORTRAIT CORP: Section 341 Meeting Slated Today
-----------------------------------------------
The U.S. Trustee for Region 2 will convene a meeting of Portrait
Corporation of America Inc. and its debtor-affiliates' creditors
at 2:00 p.m. today. The meeting will be held at 80 Broad
Street, 2nd Floor, in New York.
All creditors are invited, but not required, to attend. This
meeting of creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible officer of
the Debtors under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Portrait Corporation of America, Inc. -- http://pcaintl.com/--
provides professional portrait photography products and services
in North America. The Company operates portrait studios within
Wal-Mart stores and Supercenters in the United States, Canada,
Mexico, Germany and the United Kingdom. The Company also
operates a modular traveling business providing portrait
photography services in additional retail locations and to
church congregations and other institutions.
Portrait Corporation and its debtor-affiliates filed for
Chapter 11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case
No. 06-22541). John H. Bae, Esq., at Cadwalader Wickersham &
Taft LLP, represents the Debtors in their restructuring efforts.
Berenson & Company LLC serves as the Debtors' financial advisor
and investment banker. Kristopher M. Hansen, Esq., at Stroock &
Stroock & Lavan LLP represents the Official Committee of
Unsecured Creditors. Peter J. Solomon Company serves as
financial advisor for the Committee. At June 30, 2006, the
Debtor had total assets of US$153,205,000 and liabilities of
US$372,124,000.
SANMINA-SCI: S&P Lowers Ratings After Operating Results Review
--------------------------------------------------------------
Standard & Poor's Ratings Services removed its ratings for San
Jose, Calif.-based Sanmina-SCI Corp. from CreditWatch, where
they were placed on Aug. 14, 2006. The corporate credit and
senior unsecured ratings were lowered to 'B+' from 'BB-'; the
subordinated debt rating was lowered to 'B-' from 'B'. The
outlook is stable.
"The rating actions follow our review of the company's recent
operating results and the results of its stock option
investigation," said Standard & Poor's credit analyst Lucy
Patricola. Over the past three quarters, Sanmina has
experienced sharp operating cash flow deficits that have been
funded from cash, diminishing liquidity. Further, leverage
statistics have weakened because of lower profitability on
declining revenues. For the 12 months ended Dec. 30, 2006,
adjusted debt to EBITDA was over 5x, up from the low-4x area.
While the company has launched a number of initiatives to reduce
debt and improve profitability, the final outcome and timing of
leverage and liquidity improvement are uncertain. While the
stock option investigation surfaced a consistent pattern of
misdated options, the concerns remain centered on two former
executives, and the cash impact of the restatements was nominal.
The ratings reflect continued erosion of profit measures,
diminished liquidity and high leverage. These concerns partly
are offset by the company's top-tier business position in low
volume, complex electronic manufacturing services or EMS end
markets and stable operating performance in that division.
Sanmina-SCI is a leading provider of EMS for the computing,
telecommunications, and data communications industries,
generating sales of about US$11 billion for the 12 months ended
Dec. 30, 2006. The company had about US$2 billion in lease-
adjusted debt, including outstanding under accounts
securitization programs, as of December 2006.
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 Latin America, it operates in Brazil and Mexico.
SEMINOLE HARD: Moody's Assigns B1 Rating on US$500-Million Notes
----------------------------------------------------------------
Moody's Investors Service assigned a B1, LGD3 rating to Seminole
Hard Rock Entertainment Inc.'s and Seminole Hard Rock
International LLC's US$500 million senior secured floating rate
notes due 2014, and a B1, LGD3 rating to its US$25 million
senior secured revolver due 2012. A B1 corporate family rating,
B1 probability of default rating, and stable ratings outlook
were also assigned.
Proceeds from the offerings along with US$529 million of cash
equity will be used by the Seminole Tribe of Florida to purchase
Hard Rock International from the Rank Group for US$965 million,
and to buyout Hard Rock Cafe's Universal Joint Venture partner
for US$25 million. Excluding transaction expenses, the
purchase price represents a 10.8x EBITDA multiple. Seminole
Hard Rock is a wholly owned, non-recourse subsidiary of the
Seminole Tribe of Florida. The new revolver and senior notes
will be non-recourse to the Tribe's Gaming Division revenue and
assets. The acquisition is expected to close in Mar. 2007.
The ratings take into account Seminole Hard Rock's high leverage
- pro forma lease-adjusted debt/EBITDAR will be slightly above
6.0x - and the competitive nature of restaurant business and
vulnerability to competitor preferences. Also considered is the
company's significant revenue concentration. Company-owned
restaurants currently account for about 90% of consolidated
revenues, and 10 of the 68 total company-owned restaurants
contribute a majority of that division's revenue and EBITDA.
Positive ratings consideration is given to the Seminole Hard
Rock's brand recognition, geographic diversification and the
potential growth from fees coming from casinos branded with the
Hard Rock name. Also, while the debt is non-recourse to
Seminole Hard Rock's new owner, the Seminole Tribe of Florida,
positive ratings credit is given to the Tribe's financial
strength.
The stable ratings outlook anticipates that the Hard Rock brand
will continue its popularity and that the company will generate
positive free cash flow after debt service and capital
expenditures. The stable outlook also considers that the
Seminole Tribe of Florida would support the Seminole Hard Rock
if it ran into financial difficulties.
Seminole Hard Rock Entertainment owns and operates 68 Hard Rock
cafes located throughout North America, Europe, Asia, Australia
and the Caribbean. The company also has 55 Hard Rock cafe
franchises located throughout Canada, Asia, Europe, Mexico, the
Middle East, South America, and the Pacific. Additionally, the
company owns 7 hotels and receives fees from 2 Hard Rock Hotel
and Casinos that are owned and operated by the Seminole Tribe of
Florida. The company generates annual revenues of close to
US$450 million.
SEMINOLE TRIBE: Moody's Puts Ba1 Rating on New US$700M Term Loan
----------------------------------------------------------------
Moody's Investors Service assigned a Ba1, LGD4 to the Seminole
Tribe of Florida's new US$700 million senior secured term loan
comprised of a US$540 million 7-year funded senior secured term
loan and a US$160 million 7-year delayed draw senior secured
term loan. The Tribe's Ba1 corporate family rating and existing
long-term debt ratings were affirmed.
The rating outlook remains negative.
Proceeds from the new term loan will be used fund the Tribe's
US$529 million equity investment into a new 100% owned
unrestricted subsidiary that will acquire Hard Rock
International, Inc. from The Rank Group Plc for approximately
US$965 million.
In addition, approximately US$160 million will be applied
towards planned capital expenditures.
The ratings acknowledge that although the Tribe's Gaming
Division is almost doubling the amount of its outstanding debt
with the addition of the new term loan, pro forma debt/EBITDA
will still be less than 2X. Other positive ratings
considerations include the continued strong operating
performance of the Gaming Division, the high quality of the
Tribe's casino assets, the favorable demographics of the densely
populated central and southern Florida gaming markets, and the
expectation that the Tribe's lawsuit against Power Plant will
not negatively impact the Tribe's financial results over the
near-term given that Power Plant has no operational ties to the
casino.
The negative ratings outlook continues to reflect the complexity
of the Tribe's lawsuit against Power Plant as well as the
uncertainty associated with the outcome, particularly given the
lack of legal precedent with respect to this particular type of
lawsuit between a Native American Tribe and a commercial casino
developer.
The negative outlook also takes into account that despite the
completion of fieldwork in Dec. 2005 and the Tribe's expectation
that there will not be any material NIGC audit issues that will
negatively impact the Tribe or its casino operation, the NIGC
has not yet issued its findings.
Moody's most recent action occurred on Sep. 28, 2006 when PDR
ratings and LGD assessments were assigned to the company as part
of the implementation of Moody's Loss-Given-Default rating
methodology. Moody's initially assigned a Ba1 corporate family
rating to the Tribe in Sep. 2005.
The Seminole Tribe of Florida is a federally recognized Indian
tribe with enrolled membership of about 3,200 members, most of
whom reside on Tribal lands in Florida. The Tribe owns and
operates six Class II gaming facilities located on Tribal lands
throughout southern and central Florida. The gaming operations
are managed by the Seminole Gaming Division, an organizational
unit of the Tribal government with no separate legal existence.
FORD MOTOR: Merrill Lynch Cuts Recommendation on Shares to Sell
---------------------------------------------------------------
Merrill Lynch has lowered its recommendation on shares of Ford
Motor Co. to "sell" from "neutral" because the stock may be
overvalued, The Associated Press reports Tuesday.
Ford may be trading at a price that is higher than appropriate,
AP says, citing Merrill.
According to AP, Merrill auto analyst John Murphy is of the
opinion that newly appointed Ford Chief Executive Alan Mulally
is "making progress," but he is saddled by slumping products and
a decline in large pickup truck sales.
The automaker, Mr. Murphy added, may have difficulty raising
money needed to buy down some of its retiree health-care
obligations.
AP relates that Deutsche Bank also upgraded the company's shares
to "buy," citing optimism that the company can win health care
cost savings from the United Auto Workers union this fall.
Lower Sales
Ford disclosed in a press statement that its January 2007 sales
declined 19% compared with a year ago, as a result of a proposed
reduction in sales to daily rental companies.
Sales to daily rental companies were cut by 65%, Ford said.
Commenting on the results, Mark Fields, Ford's President of The
Americas, said, "All of us at the company are focused on
restructuring our business to be profitable at lower volumes and
offering more of the products people want, including more cars
and more crossovers. We are focusing more of our attention on
retail customers and reducing sales to daily rental companies
sharply. The company's customers benefit from this plan because
their vehicles' residual values will improve -- a trend we
already are seeing with our newest products."
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, 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
Corporation.
* * *
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.
VALASSIS COMM: ADVO Buy Prompts S&P to Lower Credit Rating to B+
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Valassis Communications Inc. to 'B+' from 'BB', and
removed it from CreditWatch with negative implications where it
was placed on July 6, 2006, following the company's announcement
it would acquire ADVO Inc.
At the same time, Standard & Poor's assigned its 'BB-' bank loan
and '1' recovery ratings to Valassis' proposed US$820 million
senior secured credit facility, reflecting the expectation that
secured lenders, including bondholders expected to receive
security due to springing liens would achieve full recovery of
principal upon a payment default. Proceeds from the proposed
credit facility would be used to partly finance Valassis' US$1.2
billion acquisition of ADVO, including the refinancing of ADVO's
debt of about US$125 million. Valassis expects to put in place
additional debt financing over the near term.
Standard & Poor's also lowered its ratings on Valassis' existing
US$160 million senior unsecured convertible notes due 2033 and
the company's US$100 million senior unsecured notes due 2009 to
'BB-' from 'BB', and kept the ratings on CreditWatch with
negative implications pending the close of the proposed credit
facility. At that time, Standard & Poor's would expect to
affirm them. These ratings are one notch above the corporate
credit rating, reflecting springing liens that are expected to
secure both issues upon the close of the proposed senior secured
facility. Pro forma for proposed debt issuances Valassis had
US$1.5 billion in lease-adjusted debt as of December 2006. The
outlook is stable.
The downgrade reflects high levels of pro forma leverage and
challenges that Valassis will face reversing trends of declining
profitability in each of its and ADVO's respective businesses.
Headquartered in Livonia, Michigan, Valassis Communications Inc.
(NYSE: VCI) -- http://www.valassis.com/-- provides marketing
services to consumer-packaged goods manufacturers, retailers,
technology companies and other customers with operations in the
United States, Europe, Mexico and Canada. Valassis' products
and services portfolio includes: newspaper-delivered promotions
and advertisements such as inserts, sampling, polybags and
on-page advertisements; direct-to-door advertising and sampling;
direct mail; Internet-delivered marketing; loyalty marketing
software; coupon and promotion clearing; and promotion planning
and analytic services. Valassis subsidiaries include Valassis
Canada, Promotion Watch, Valassis Relationship Marketing
Systems, LLC and NCH Marketing Services Inc.
VALASSIS: S&P's Rating Triggers Holders' Right to Convert Notes
---------------------------------------------------------------
The recent rating assigned by Standard & Poor's on Valassis
Communications Inc.' existing Senior Convertible Notes due 2033
triggers the right of the holder to convert these Notes. The
2033 Notes are currently convertible at a price of approximately
US$44 per share.
Valassis Communications reported that, in contemplation of its
anticipated financing of the ADVO transaction and as expected,
Moody's has lowered the company's 2033 Notes to a rating of Ba2
with a stable rating outlook. Similarly, Standard & Poor's has
lowered the rating on the 2033 Notes to BB- with negative
implications on CreditWatch pending the closing of the
financing. Both rating agencies rated the 2033 Notes slightly
higher than the company's general rating to reflect the
anticipated security interest that the noteholders will receive
upon the closing of the ADVO transaction.
Headquartered in Livonia, Michigan, Valassis Communications Inc.
(NYSE: VCI) -- http://www.valassis.com/-- provides marketing
services to consumer-packaged goods manufacturers, retailers,
technology companies and other customers with operations in the
United States, Europe, Mexico and Canada. Valassis' products
and services portfolio includes: newspaper-delivered promotions
and advertisements such as inserts, sampling, polybags and
on-page advertisements; direct-to-door advertising and sampling;
direct mail; Internet-delivered marketing; loyalty marketing
software; coupon and promotion clearing; and promotion planning
and analytic services. Valassis subsidiaries include Valassis
Canada, Promotion Watch, Valassis Relationship Marketing
Systems, LLC and NCH Marketing Services Inc.
===============
P A R A G U A Y
===============
* PARAGUAY: Power Company Outlines 2007 to 2011 Work Plan
---------------------------------------------------------
Administracion Nacional de Electricidad, or Ande, Paraguay's
public power company, disclosed its work plan for 2007 to 2011.
Business News Americas says Ande's 2007-11 work plan includes
three generation projects, 77 substations and 18 transmission
lines.
For 2007, Ande will focus on increasing its systems'
transformation capacity in substations and strengthening its
distribution networks, BNamericas relates, citing Planning
Director Dario Nunez.
Based on the company's timeline, 16 substation works and two new
66kV transmission lines will become operational at year-end.
For the transmission lines, the first transmission of which is
in the eastern system and will stretch 5km between Alto Parana
and Punto Pente Franco, BNamericas relates.
For 2008, the company aims to invest US$114 million to construct
17 additional substation works, three transmission projects and
two generation projects. BNamericas says the main transmission
project is the 198km, 220kV Acaray-K30-Coronel Oviedo line,
while the main generation project is the modernization of the
Acaray II plant.
The same report adds that the revamp of the Acaray I plant,
which is part of the master plan, is due to be completed by
2011.
In 2009, Ande's allots US$57 million for investments. In 2010,
about US$80 million will be set aside for constructing two 220kV
lines -- Limpio-San Lorenzo and Limpo-Pto Botanico, BNamericas
says.
* * *
Moody's assigned these ratings on Paraguay:
-- CC LT Foreign Bank Deposit, Caa2
-- CC LT Foreign Currency Debt, Caa1
-- CC ST Foreign Bank Deposit, NP
-- CC ST Foreign Currency Debt, NP
-- LC Currency Issuer Rating, Caa1
-- FC Currency Issuer Rating, Caa1
-- Local Currency LT Debt, WR
* * *
Standard & Poor's assigned these ratings on Paraguay:
-- Foreign Currency LT Debt B-
-- Local Currency LT Debt B-
-- Foreign Currency ST Debt C
-- Local Currency ST Debt C
=====================
P U E R T O R I C O
=====================
ADELPHIA COM: Time Warner Cable Becomes Public; To Trade at NYSE
----------------------------------------------------------------
Time Warner Inc. and Time Warner Cable Inc. said Tuesday that
Time Warner Cable has become a public company as a result of
Adelphia Communications Corp.'s Chapter 11 plan having become
effective.
Time Warner Cable expects its Class A common stock to be listed
on the New York Stock Exchange, under the "TWC" symbol, and
start trading as early as March 1, 2007.
Adelphia received shares of Time Warner Cable Class A common
stock on July 31, 2006 as part of the payment for systems bought
from Adelphia. These shares will be distributed by Adelphia to
its stakeholders in accordance with its Chapter 11 plan,
starting within the next few days.
Time Warner Cable became public without the traditional
underwritten offering that was one alternative under the
agreements with Adelphia. As a result, Time Warner Cable has
withdrawn the registration statement on Form S-1 it had filed
with the Securities and Exchange Commission.
Dick Parsons, Chairman and CEO of Time Warner, said: "We are
very pleased that Time Warner Cable has become a public company
and are excited about its stock soon being listed on the New
York Stock Exchange. We believe Time Warner Cable is positioned
to compete successfully in the fast-growing cable sector and to
increase value for the shareholders of Time Warner and Time
Warner Cable."
Glenn Britt, President and CEO of Time Warner Cable, said:
"Becoming a public company is the latest step in creating a Time
Warner Cable with greater scale, improved subscriber clusters,
stronger growth opportunities and enhanced strategic
flexibility. Our aggressive integration efforts of the newly
acquired systems are ongoing, and we're making progress toward
preparing these systems to offer Time Warner Cable's advanced
services."
How Time Warner Cable Became a Public Company
On July 31, 2006, Time Warner Cable completed the acquisition of
assets from Adelphia. Approximately 156 million shares of Time
Warner Cable Class A common stock - approximately 16% of Time
Warner Cable's total outstanding common shares - were included
in the consideration paid for the assets.
Under Adelphia's Chapter 11 plan, most of the Time Warner Cable
stock Adelphia received will be distributed to Adelphia
stakeholders. This will end Adelphia's obligation to sell a
portion of the shares in an underwritten public offering.
Although the distribution may take some time to be completed,
Adelphia and Time Warner Cable expect approximately 75% of the
shares to be distributed within the next week. The remaining
shares are expected to be distributed over the coming months as
remaining disputes are resolved by the bankruptcy court,
including the 4% of the shares being held in escrow in
connection with Time Warner Cable's acquisition of assets from
Adelphia.
Under applicable securities regulations and provisions of the
U.S. bankruptcy code, Time Warner Cable is now a public company
subject to the requirements of the Securities Exchange Act of
1934. Pursuant to applicable provisions of the Bankruptcy Code,
the distribution by Adelphia of Time Warner Cable Class A common
stock to Adelphia stakeholders is exempt from the registration
requirements of the Securities Act of 1933, and upon receipt
these shares are freely tradable without restriction or further
registration.
Adelphia's Plan
As reported in the Troubled Company Reporter on Jan. 9, 2007,
the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for
the Southern District of New York entered an order confirming
the first modified fifth amended joint Chapter 11 plan of
reorganization of Adelphia and Certain Affiliated Debtors.
As reported in Tuesday's Troubled Company Reporter, that Plan
became effective on Feb. 13, 2007.
The Distribution Record Date for distributions under the Plan to
holders of Notes Claims and Equity Interests was set last
Feb. 13, 2007 at 4:00 p.m. (Eastern Standard Time).
Jan. 10, 2007 at 4:00 p.m. (Eastern Standard Time) remains the
Distribution Record Date for holders of all Claims other than
Notes Claims and Equity Interests.
A full-text copy of the chart of the distribution of certain
classes of claims is available for free at:
http://ResearchArchives.com/t/s?19d0
A full-text copy of the chart of the distribution of certain
classes of equity interest is available for free at:
http://ResearchArchives.com/t/s?19d1
Time Warner Inc.
Time Warner (NYSE:TWX) is a leading media and entertainment
company whose businesses include interactive services, cable
systems, filmed entertainment, television networks and
publishing.
Time Warner Cable Inc.
Time Warner Cable owns and manages cable systems passing
approximately 26 million homes in 33 states. The company has
14.6 million customers for its various products, including
video, high-speed data and residential telephone. This includes
approximately 13.4 million basic video subscribers and more than
6 million customers who purchase more than one product. Time
Warner Cable includes some of the most technologically advanced
and best-clustered cable systems in the country, with nearly 85
percent of the Company's customers located in five geographic
regions: New York, Texas, Ohio, the Carolinas and southern
California. It is the largest cable provider in the nation's
two largest cities, Los Angeles and New York. Leveraging its
leadership in innovation and quality customer care, Time Warner
Cable delivers advanced products and services such as video-on-
demand, high-definition television, digital video recorders,
high-speed data and Digital Phone.
About Adelphia Communications
Based in Coudersport, Pa., Adelphia Communications Corp.
(OTC: ADELQ) -- http://www.adelphia.com/-- is a cable
television company. Adelphia serves customers in 30 states and
Puerto Rico, and offers analog and digital video services,
Internet access and other advanced services over its broadband
networks. The Company and its more than 200 affiliates filed
for Chapter 11 protection in the Southern District of New York
on June 25, 2002. Those cases are jointly administered under
case number 02-41729. Willkie Farr & Gallagher represents the
Debtors in their restructuring efforts. PricewaterhouseCoopers
serves as the Debtors' financial advisor. Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC. The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642). Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.
HECTOR MERCADO: Case Summary & 16 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Hector Mercado Perez Inc.
P.O. Box 456
Arecibo, PR 00613-0456
Tel: (787) 878-2730
Fax: (787) 879-8042
Bankruptcy Case No.: 07-00695
Chapter 11 Petition Date: February 14, 2007
Court: District of Puerto Rico (Old San Juan)
Debtor's Counsel: Fausto David Godreau Zayas
Latimer, Biaggi, Rachid & Godreau
P.O. Box 9022512
San Juan, PR 00902-2512
Total Assets: US$2,117,013
Total Debts: US$15,265,847
Debtor's 16 Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
Lisandra Abrahm's Reverol US$3,000,000
HC 01 Box 4706
Bo. San Antonio
Quebradillas, PR 00678
Internal Revenue Service US$2,506,864
Mercantil Plaza Building
Suite 904
Stop 27 1/2
San Juan, PR 00918
John M. Kilgore US$1,200,000
p/c LCDA Wilda Rodriguez
P.O. Box 70364
San Juan, PR 00936-8364
Gilberto Vargas Ocasio US$1,010,000
p/c LCDO Ceferino Flores
32 Acosta Street
P.O Box 1209
Caguas, PR 00725
Treasury Department US$1,316,040
P.O. Box 9022501
San Juan, PR 00902-2501
Nilsa Roman Guzman US$600,800
HC 02 Box 16338
Arecibo, PR 00612
Miguel Mercado Perez US$397,235
P.O. Box 456
San Juan, PR 00612
Dr. Jose Rodriguez US$300,000
c/o LCDO Hector Melendez
P.O. Box 366283
San Juan, PR 0036-6283
Patente Municipal US$298,383
Municipio de Arecibo
P.O. Box 70179
San Juan, PR 00936-7170
AEE US$291,808
P.O. Box 3508
San Juan, PR 00936-350
Arnaldo Mercado Perez US$271,230
P.O. Box 356
Arecibo, PR 00613
Hector Mercado Perez US$202,900
Anastacio Mercado and Felicita Perez US$200,000
Borschow Hospital & Medical Supplies US$102,983
Future Health Concepts US$73,905
Diversified Collection Services Inc. US$35,200
HOME PRODUCTS: Files Schedules of Assets & Liabilities
------------------------------------------------------
Home Products International Inc. and its debtor-affiliate Home
Products International-North America delivered their schedules
of assets and liabilities to the U.S. Bankruptcy Court for the
District of Delaware.
Home Products reports it doesn't have any personal property
while its real property assets are unknown. The Debtor
scheduled an unsecured non-priority claim of HSBC, as agent for
certain bondholders, for US$122,217,971. The Debtor also
identified General Electric Capital Corporation, Bank of
America, MJR/NLR Gift Trusts, and Plexxar Joint Venture as
creditors holding unsecured non-priority claims, but the claim
amounts are unknown.
Home Products International-North America discloses:
Assets Liabilities
------ -----------
A. Real Property US$0
B. Personal Property US$99,448,142
C. Property Claimed as Exempt
D. Secured Claims US$40,000,000
E. Unsecured Priority Claims US$612,000
F. Unsecured Non-priority Claims US$143,970,707
------------- --------------
Total US$99,448,142 US$184,582,707
Headquartered in Chicago, Illinois, Home Products International,
Inc. -- http://www.hpii.com/-- designs, manufactures, and
markets ironing boards, covers, and other high-quality, non-
electric consumer houseware products. The Debtor's product
lines include laundry management products, bath and shower
organizers, hooks, hangers, home and closet organizers, and food
storage containers. Their products are sold under the HOMZ
brand name, and are distributed to hotels, discounters, and
other retailers such as Wal-Mart, Kmart, Sears, Home Depot, and
Lowe's.
The company and its affiliate, Home Products International-North
America, Inc., filed for chapter 11 protection on Dec. 20, 2006
(Bankr. D. Del. Case Nos. 06-11457 and 06-11458). Ronald
Barliant, Esq., and Kathryn A. Pamenter, Esq., at Goldberg Kohn,
Bell, Black, Rosenbloom & Moritz, Ltd., and Mark D. Collins,
Esq., and Michael J. Merchant, Esq., at Richards, Layton &
Finger P.A. represent the Debtors. When the Debtors filed for
protection from their creditors, they listed estimated assets
between US$1 million and US$100 million and debts of more than
US$100 million. The Debtors' exclusive period to file a chapter
11 plan of reorganization expires on April 18, 2007.
HOME PRODUCTS: Hires Morris Anderson as Financial Advisor
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave Home
Products International Inc. and Home Products International-
North America Inc. permission to employ Morris Anderson &
Associates Ltd. as their financial advisors, nunc pro tunc to
Dec. 20, 2006.
Morris Anderson will:
(a) develop budgets, cash flows, projections, and other
financial information;
(b) assist with inventory analysis;
(c) analyze ongoing product line and customer profitability;
(d) analyze equipment scheduling and utilization;
(e) assist with the preparation of a business plan; and
(f) assist the Debtors in their chapter 11 cases.
The professionals who will be directly involved in the
engagement and their hourly rates are:
Name Designation Hourly Rate
---- ----------- ---------
Howard Korenthal Managing Director US$350
Steven Courtrade Consultant US$300
Richard Schluter Consultant US$300
Ray Przytula Consultant US$190
The Debtors paid Morris Anderson a US$225,000 advance payment
retainer.
Mr. Korenthal assures the Court that his firm is a
"disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.
About Home Products
Headquartered in Chicago, Illinois, Home Products International,
Inc. -- http://www.hpii.com/-- designs, manufactures, and
markets ironing boards, covers, and other high-quality, non-
electric consumer houseware products. The Debtor's product
lines include laundry management products, bath and shower
organizers, hooks, hangers, home and closet organizers, and food
storage containers. Their products are sold under the HOMZ
brand name, and are distributed to hotels, discounters, and
other retailers such as Wal-Mart, Kmart, Sears, Home Depot, and
Lowe's.
The company and its affiliate, Home Products International-North
America, Inc., filed for chapter 11 protection on Dec. 20, 2006
(Bankr. D. Del. Case Nos. 06-11457 and 06-11458). Ronald
Barliant, Esq., and Kathryn A. Pamenter, Esq., at Goldberg Kohn,
Bell, Black, Rosenbloom & Moritz, Ltd., and Mark D. Collins,
Esq., and Michael J. Merchant, Esq., at Richards, Layton &
Finger P.A. represent the Debtors. When the Debtors filed for
protection from their creditors, they listed estimated assets
between US$1 million and US$100 million and debts of more than
US$100 million. The Debtors' exclusive period to file a chapter
11 plan of reorganization expires on April 18, 2007.
MMM HOLDINGS: Moody's Puts Ratings on Review, Likely Downgrade
--------------------------------------------------------------
Moody's Investors Service has downgraded the senior debt rating
of MMM Holdings Inc., NAMM Holdings Inc., and Preferred Health
Management Corporation to B3 from B1 following the report by the
parent company, Aveta Inc., of a significant decline in
profitability during the fourth quarter of 2006.
The ratings are being placed under review for possible
downgrade.
According to Moody's, MMM, NAMM, and PHMC are co-borrowers under
Aveta's bank credit facility. The bank facility is guaranteed
by Aveta and is secured with the pledge of the stock and assets
of Aveta, as well as the pledge of the stock of each of the
borrowers and their regulated subsidiaries and all assets of the
non-regulated entities.
As a result of the revised earnings projection for 2006, Aveta
announced that it may fail to meet one or more of the financial
covenants of its bank loan agreement for fiscal year 2006.
The shortfall in earnings, the rating agency stated, is
primarily the result of higher medical utilization in the
company's Puerto Rico operations, which provides only Medicare
Advantage products. MMM Healthcare and Preferred Medical Choice,
Inc., the two main operating subsidiaries of MMM, are the two
largest providers of Medicare Advantage products in Puerto Rico,
with over 200,000 members as of Sept. 30, 2006. These two
companies service in excess of 60% of the Medicare Advantage
enrolled population in Puerto Rico and account for approximately
80% of Aveta's operating earnings.
Moody's notes that the Medicare Advantage product does not allow
the carrier to change benefits, cancel coverage, or change
premium rates during the contract year. Since the discovery of
the utilization problem was discovered so late in 2006, MMM will
need to implement cost savings initiatives such as tighter
medical management and authorization protocols to avoid earnings
shortfalls in 2007.
However, according to Moody's, this requires behavioral changes
from providers and members and may be difficult to implement in
a short time frame. Other initiatives mentioned by the company,
such as renegotiating provider contracts, may be even more
difficult to implement. As a result, the rating agency expects
earnings to be depressed for at least the first half of 2007, if
not longer. Also in question, is the company's ability to file
with CMS a profitable product offering for 2008, without having
a full grasp of long-term medical cost trends and how to control
them.
Moody's stated that while the company may still be able to meet
the financial covenants for fiscal year 2006, based on the
current guidance for 4th quarter 2006 it was unlikely that the
company would be able to meet the Consolidated Leverage Ratio
covenant at March 31, 2007. As a result, the company will
likely be forced to seek a waiver and amendment to its credit
agreement.
Moody's review will focus on the liquidity of MMM, the
explanation by the company of the reasons for the unfavorable
results, as well as the development of a comprehensive action
plan to improve earnings in 2007. Moody's will also review the
terms of any renegotiation of the credit facility.
These ratings were downgraded and placed under review for
possible downgrade:
* MMM Holdings, Inc.'s senior secured debt rating to B3 from
B1; corporate family rating to B3 from B1;
* NAMM Holdings, Inc.'s senior secured debt rating to B3 from
B1;
* Preferred Health Management Corporation's senior secured
debt rating to B3 from B1;
* MMM Healthcare, Inc.'s insurance financial strength rating
to Ba3 from Ba2; and
* PrimeCare Medical Network, Inc.'s insurance financial
strength rating to Ba3 from Ba2.
The insurance financial strength ratings of Aveta's operating
subs were lowered one notch to Ba3 and its senior debt ratings
were downgraded two notches to B3. Due to the company's current
financial situation, the security provided by the underlying
assets is less certain making a three notch rating differential
more appropriate.
The last rating on MMM Holdings was on June 28, 2006 when the
company's ratings were affirmed at the time of their acquisition
of Preferred Health Management Corporation.
MMM Healthcare and Preferred Medicare Choice, Inc. offer
Medicare Advantage products exclusively to eligible participants
in Puerto Rico. Moody's notes that the combined companies
currently enjoy being the market leader in providing Medicare
Advantage products in Puerto Rico. NAMM is a medical management
company that operates in California and Illinois. Its regulated
operating subsidiary, PrimeCare Medical Network, Inc., consists
of 10 owned IPAs in Southern California that contract with major
health care benefit companies on a capitated basis to provide
medical care to commercial and Medicare members.
Aveta, Inc. is headquartered in Fort Lee, New Jersey. As of
Sept. 30, 2006, Aveta reported stockholders' equity of US$73
million and approximately 230,000 Medicare members. For the
first nine months of 2006, pro-forma total revenues were US$1.4
billion.
Moody's health insurance financial strength ratings are opinions
about the ability of life and health insurance companies to
punctually repay senior policyholder claims and obligations.
Moody's corporate family rating is an opinion of a corporate
family's ability to honor all of its financial obligations and
is assigned to a corporate family as if it had a single class of
debt and a single consolidated legal entity structure.
UNITED AIRLINES: Inks Mileage Promo Partnership with Shop4Miles
---------------------------------------------------------------
United Airlines has entered a partnership with Shop4Miles to
offer United Mileage Plus members the opportunity to double the
miles earned with online purchases using the search engine
http://www.shop4miles.com/
As one of the largest international airlines, United Airlines
operates 3,700 flights each day to more than 210 destinations
around the world. The announcement came several weeks after the
launch of http://www.shop4miles.com/on Nov. 27, 2006.
Additional airlines are expected to join the groundbreaking
program to better serve frequent flyers. Comparison shopping on
http://www.shop4miles.com/is not for "the highest bidder"
because retailers are not charged for inclusion and cannot pay
for position privileges on the site. Instead consumers can
search over three million products by price, model number,
category, or product name. Shop4Miles users earn miles from
three major frequent flyer programs while comparing prices on
products for purchase online.
"Rewarding 'Mileage Junkies' for savvy shopping habits is the
bottom line," Shop4Miles President Evan Strauss explained.
The "double-dipper advantage" holds true for other Shop4Miles
partnering mileage programs including Delta Airlines and Alaska
Airlines. Finding the lowest price is the consumer's purpose
for online shopping convenience. Earning miles for buying
online through merchants offering competitive prices is just an
added bonus for smart shoppers. Shop4Miles' "online democracy"
is used by the consumer and focuses on giving back to the
consumer.
About Shop4Miles
Shop4Miles is a pro-consumer, online, comparison shopping search
engine with mileage rewards for every purchase from a choice of
airline partners including Delta Airlines, Alaska Airlines, and
now United Airlines mileage programs.
About United Airlines
United Airlines operates more than 3,600 flights a day on
United, United Express and Ted to more than 210 U.S. domestic
and international destinations from its hubs in Los Angeles, San
Francisco, Denver, Chicago and Washington, D.C. With key global
air rights in the Asia-Pacific region, Europe and Latin America,
United is one of the largest international carriers based in the
United States. United also is a founding member of Star
Alliance, which provides connections for its customers to 841
destinations in 157 countries worldwide. United's more than
55,000 employees reside in every U.S. state and in many
countries around the world.
* * *
As reported in the Troubled Company Reporter on Jan. 19, 2007,
Moody's Investors Service assigned B1, LGD-3 42% ratings to the
United Air Lines Inc. US$2.1 billion Senior Secured Revolving
Credit and Term Loan.
Moody's also assigned the B2 corporate family and probability of
default rating and a stable outlook at UAL Corporation. At the
same time, Moody's withdrew its corporate family and probability
of default ratings assigned at the United level and affirmed its
SGL-2 speculative grade liquidity rating. Moody's will withdraw
the ratings on United's existing $3 billion of revolving credit
and term loans once the new Bank Facilities close.
=================
V E N E Z U E L A
=================
DAIMLERCHRYSLER: Reports EUR3.2 Bil. Preliminary 2006 Net Income
----------------------------------------------------------------
DaimlerChrysler AG has reported its preliminary Group and
divisional results for the year 2006.
DaimlerChrysler recorded an operating profit of EUR5.517 billion
in 2006, compared with EUR5.185 billion in 2005.
The development of the Group's operating profit was primarily
impacted by the significant decline in earnings at the Chrysler
Group. This was more than offset by the substantial earnings
improvement at the Mercedes Car Group and the repeated increase
in earnings at the Truck Group and the Financial Services
division. The contribution to earnings from the Van, Bus, Other
segment was lower than in the prior year.
Net income increased by EUR4 million to EUR3.2 billion (2005:
EUR2.8 billion). Based on the reported net income, earnings per
share amounted to EUR3.16 compared with EUR2.80 in 2005.
Dividend
The Board of Management proposes to the Supervisory Board that a
dividend of EUR1.50 per share should be distributed for the year
2006 (2005: EUR1.50). This proposal takes account not only of
the development of operating profit and cash flow in 2006, but
also of expectations for the coming years.
Unit Sales and Revenues
DaimlerChrysler sold a total of 4.7 million vehicles in 2006
(2005: 4.8 million), while the Group's total revenues increased
by 1% to EUR151.6 billion. Adjusted for exchange-rate effects
and changes in the consolidated Group, the increase in revenues
amounted to 2%.
The Workforce
As of Dec. 31, 2006, DaimlerChrysler employed a workforce of
360,385 people worldwide (2005: 382,724). Of this total,
166,617 were employed in Germany (2005: 182,060) and 94,792 in
the United States (2005: 97,480).
The implementation of the new management model is running
according to plan. By the end of January 2007, approximately
2,000 employees worldwide had either signed voluntary severance
agreements or had already left the Group.
DaimlerChrysler has been working with the new structures since
Aug. 1, 2006. Important processes have been made faster and
more efficient, allowing substantial efficiency gains. The
total expenditure for the implementation of the program in the
years 2006 through 2008 is likely to be in the region of EUR2
billion. Of this total, EUR393 million was incurred in the year
2006.
Investing to Safeguard Future
Worldwide, the DaimlerChrysler Group invested a total of
EUR5.9 billion in property, plant and equipment in 2006 (2005:
EUR6.6 billion). Capital expenditure at the Mercedes Car Group
of EUR1.7 billion was slightly higher than in the prior year
(EUR1.6 billion). To continue its product offensive and to make
its production facilities more flexible, the Chrysler Group
invested EUR2.9 billion in property, plant and equipment (2005:
EUR3.1 billion). The Truck Group invested EUR907 million in
2006, mainly related to new technologies, powertrains, and
safety concepts (2005: EUR966 million).
Expenditure for research and development totaled EUR5.3 billion
in 2006 (2005: EUR5.6 billion). The most important projects at
the Mercedes Car Group were the new generation of the E-Class,
the new version of the CL-Class, and preparations for the model
change for the C-Class in 2007.
The Chrysler Group's focus was on the development of the new
minivan generation as well as on hybrid vehicles. The Truck
Group's major projects included the successor models for the
Mercedes-Benz Actros and Axor, for the Freightliner Premium
Class and for the Mitsubishi Fuso Super Great.
Additional key areas of R&D activities at DaimlerChrysler were
the further development of powertrain technologies, alternative
propulsion systems such as hybrid drive and fuel cells, and
electronic systems for the improvement of vehicle safety.
During the planning period of 2007 through 2009, DaimlerChrysler
will presumably invest a total of EUR17.5 billion in property,
plant and equipment and EUR16.2 billion in research and
development activities. This adds up to total of investment in
safeguarding the future of EUR33.7 billion.
Mercedes Car Group
The Mercedes Car Group division, comprising the brands Mercedes-
Benz, Maybach, smart, Mercedes-Benz AMG, and Mercedes-Benz
McLaren, sold 1,251,800 vehicles in 2006 (2005: 1,216,800).
Revenues of EUR54.6 billion were 9% higher than the prior year's
level.
The Mercedes Car Group achieved an operating profit of
EUR2.415 billion in 2006, compared with an operating loss of
EUR505 million in the prior year. The results of both years
were significantly affected by special items.
There were expenses of EUR946 million in connection with the
discontinuation of production of the smart for four in 2006,
while the realignment of the smart business model in 2005
resulted in charges of EUR1.111 billion.
Charges relating to staff reductions at Mercedes-Benz Passenger
Cars in the context of the CORE program decreased to
EUR286 million in 2006 (2005: EUR570 million).
The substantial increase in the division's operating profit is
due in particular to the efficiency improvements achieved in the
context of the CORE program. Other positive factors were the
higher unit sales of Mercedes-Benz passenger cars and the
improved model mix due to the launch of the new S-Class as well
as the M- and GL-Class models. A negative impact on operating
profit in 2006 resulted from currency effects.
The Mercedes-Benz brand increased unit sales in the year under
review by 5% to 1,149,100 vehicles. As a result, the brand was
able to boost its market share in key regions, despite tougher
competition. This positive result was primarily due to the very
successful new model launches in 2005, particularly of the new
S-Class, which went on sale in the United States in February
2006. Like the new CL- and GL-Class models, the updated E- and
SL-Class vehicles launched in 2006 were also very well received
by the market and contributed to the Mercedes-Benz brand's
success in the year under review. On Oct. 15, 2006, the
division launched the E320 BLUETEC -- the world's cleanest
diesel passenger car -- in the United States and Canada.
The extensive measures being implemented to further improve the
quality of DaimlerChrysler's vehicles are having very positive
effects. This claim is supported by internal analyses and many
external studies. The J.D. Power Initial Quality Study 2006
concluded that the Mercedes-Benz brand has a positive trend in
the category of initial quality. Improvements were achieved in
nearly all of the issues that were addressed in last year's
study (IQS 2005).
Unit sales of the smart brand totaled 102,700 vehicles in the
year under review (2005: 124,300). Unit sales of the smart
fortwo developed especially well throughout the year, with the
model's production volume once again exceeding the planned
target in the vehicle's ninth year of production.
More than 750,000 smart fortwos have been sold since the
vehicle's market launch. Despite an increase in production at
the beginning of the year, nearly all smart fortwo models built
had been sold by the end of 2006. Sales of the last smart
roadsters and smart forfour models proceeded according to plan;
nearly all remaining stocks of these vehicles had been sold by
the end of the year under review.
In November 2006, smart unveiled the new smart fortwo, which
will be launched in Europe in April 2007. Starting in 2008, the
new smart fortwo will also be available in the United States,
which has become a promising market for smart due to increasing
traffic volumes and rising fuel prices. The second-largest
automobile retail organization in the United States -- the
UnitedAuto Group -- will act as the exclusive importer of smart
brand vehicles.
Chrysler Group
Worldwide, the Chrysler Group shipped 2.7 million Chrysler,
Jeep(R) and Dodge branded passenger cars, sports tourers,
minivans, SUVs, and light trucks to its dealerships in 2006
(2005: 2.8 million). Worldwide retail sales decreased by 5% in
2006 to 2.7 million units.
As a result of lower volumes and a weaker US dollar on average
for the year, the Chrysler Group's revenues for the year of
EUR47.1 billion were significantly lower than in 2005
(EUR50.1 billion).
The Chrysler Group posted an operating loss of EUR1.118 billion
in 2006, compared with an operating profit of EUR1,534 million
in 2005.
The deterioration in operating results was primarily the result
of negative net pricing, unfavorable product, and sales market
mix, and a decline in factory unit sales in the United States.
These factors reflect the continuing difficult market
environment in the United States during 2006 marked by an
overall decline in market volume, a shift in consumer demand
towards smaller, more fuel-efficient vehicles due to higher fuel
prices, as well as the impact of higher interest rates.
These negative factors were partially offset by the market
success of the new models, most of which were launched in the
second half of the year. Several of these vehicles target this
shift in consumer demand, resulting in a positive contribution
to earnings in the fourth quarter of the year.
In addition, the financial support provided to supplier Collins
& Aikman led to a charge of EUR66 million in 2006, compared to
EUR99 million in 2005. The Chrysler Group's prior-year
operating profit was positively impacted by a EUR240 million
gain on the sale of the Arizona Proving Grounds vehicle testing
facility.
The Chrysler Group launched a total of 10 attractive new models
in 2006, and significantly expanded its sales outside the NAFTA
region (+22% to 214,400 vehicles). Dodge launched its compact
five-door car -- the Dodge Caliber, as well as its first mid-
size SUV -- the Dodge Nitro, and the new Dodge Ram 3500 Chassis
Cab. The new positioning of the Jeep(R) brand portfolio
continued with the launch of the compact Jeep(R) Compass. Other
new models launched were the Jeep(R) Grand Cherokee SRT8, the
new Jeep(R) Wrangler, the four-door Jeep(R) Wrangler Unlimited
and the Jeep(R) Patriot. The Chrysler brand launched the Aspen,
its first full-size SUV, while the new Chrysler Sebring is
intended to strengthen the Chrysler Group's competitive position
in the mid-size sedan category.
The Chrysler Group also made more progress in the field of
vehicle quality in 2006. Internal measurements show that the
quality of the division's vehicles is better than ever before, a
fact which is confirmed by external quality studies: The
Chrysler brand ranked in the top ten in the 2006 J.D. Power
Initial Quality Study.
All three Chrysler Group brands also made gains in the 2006 J.D.
Power Vehicle Dependability Study, showing that customer
perception of quality continues to improve as new vehicles
replace older models in the product range.
The new manufacturing flexibility strategies have helped to
improve the Chrysler Group's efficiency, allowing the division
to better utilize its assets, such as the Belvidere (Illinois)
Assembly Plant, where the Dodge Caliber is built with the use of
highly flexible robots and free of vehicle-specific heavy
tooling. Over the four years of 2002 through 2005, the Chrysler
Group posted a cumulative 24% productivity improvement, with a
6% improvement in 2005, as confirmed by the 2006 Harbour Report,
a recognized industry study that measures the productivity of
North American automotive manufacturers.
One year after the start of production by the Global Engine
Manufacturing Alliance, the second World Engine plant opened in
Dundee (Michigan) in October 2006. The two plants in Dundee are
part of a five-factory global venture developed by
DaimlerChrysler, Hyundai Motor and Mitsubishi Motors.
Truck Group
In 2006, the Truck Group built on the very successful
developments of the prior year, increasing unit sales by 1% to a
new record of 537,000 vehicles.
The higher sales volume and an improved model mix also led
revenues to rise sharply by 5% to EUR32.0 billion.
The Truck Group achieved an operating profit of EUR2.020 billion
in 2006, a significant increase from the previous year's result
of EUR1.606 billion. The operating profit posted in 2005
included exceptional income of EUR276 million from the
settlement reached with Mitsubishi Motors Corporation relating
to expenditure for quality actions and recall campaigns at
Mitsubishi Fuso Truck and Bus Corporation.
The increase in operating profit was primarily the result of
efficiency improvements realized in the context of the Global
Excellence Program as well as improved product positioning and
model mix. In addition, higher unit sales, which were mainly
the result of purchases brought forward because of stricter
emission limits in important markets, contributed to the higher
earnings. Higher expenses for new vehicle projects, for the
fulfillment of future emission regulations as well as currency
effects had a negative impact on operating profit.
Trucks Europe/Latin America (Mercedes-Benz) once again increased
its unit sales in the core markets of Western Europe. However,
due to a market downturn in Brazil and lower sales in the Near
and Middle East, total unit sales of 142,100 vehicles were
slightly below the prior year's high level. Operating in a very
positive market environment, the Trucks NAFTA unit
(Freightliner, Sterling, Western Star, Thomas Built Buses)
increased its sales by 3% in 2006 to the record level of 208,300
vehicles. Trucks Asia (Mitsubishi Fuso) sold 186,600 vehicles
in 2006, a sharp increase (+4%) on the prior year.
In the summer of 2006, as part of a roadshow through 12 major
European cities the division presented the Mercedes-Benz Safety
Truck, which combines all of the currently available assistance
and safety systems, including Active Brake Assist (emergency
braking support), Lane Assistant, Adaptive Cruise Control, and
the Stability Program.
Large-scale trials have shown that accident frequency can be
reduced by 50% by the Mercedes-Benz Safety Package.
Furthermore, The Truck Group's Hybrid Technology Competence
Center passed one of its first milestones with the introduction
of Fuso's Canter Eco Hybrid in Japan. In 2006, to ensure that
it is ideally prepared to face future challenges, the Truck
Group began to build a Development and Testing Center in the
vicinity of the Worth, Germany, truck assembly plant. The first
stage of construction is scheduled to be completed during the
year 2007.
Coinciding with Group-wide implementation of the new management
model, the Truck Group was launched on Aug. 1, 2006, with a
modified organizational structure. The division now consists of
three operating units: Trucks Europe/Latin America, Trucks
NAFTA, and Trucks Asia, each of which is responsible for
production and sales operations in its respective region.
In order to more extensively exploit synergies as early as the
product creation phase -- and to allow the enhanced
harmonization of parts and components -- the former Truck
Product Creation unit was split into two powerful units: Truck
Product Engineering, which is responsible for the three vehicle
development centers in Stuttgart, Portland and Kawasaki as well
as the integrated development of large components, and Truck
Powertrain Operations & Manufacturing Engineering, which
oversees worldwide component production and production planning
for vehicle and component plants.
Financial Services
The Financial Services division once again developed positively
and further improved its market position in 2006. Financial
Services significantly improved its operating profit from
EUR1.468 billion in 2005 to EUR1.714 billion in 2006, thus
achieving record earnings for the fifth consecutive year. The
increase in operating profit was the result of higher new
business and ongoing efficiency improvements. These factors
more than offset higher expenses resulting from higher interest
rates and increased cost of risk. In addition, the business
development at Toll Collect also contributed to the positive
earnings trend.
New business increased by 10% to EUR53 billion, while contract
volume of EUR113.3 billion was 4% lower than in the prior year.
Adjusted for exchange-rate effects, contract volume rose by 5%.
At the end of 2006, Financial Services' portfolio comprised
6.5 million leased and financed vehicles.
The Americas region (North and South America) managed a total
contract volume of EUR80.4 billion at the end of 2006 (end of
2005: EUR85.9 billion). This was once again the highest volume
recorded by any Financial Services region, accounting for 71% of
the total portfolio. Adjusted for exchange-rate effects, the
portfolio in the region expanded by 4%.
The Europe, Africa & Asia/Pacific region also developed
positively in 2006. Contract volume of EUR32.9 billion was 3%
higher than the prior year's level. In Germany, DaimlerChrysler
Bank further improved its market position: contract volume at
the biggest European national company rose by 5% to EUR16
billion. DaimlerChrysler Bank welcomed its one-millionth
customer in May 2006.
DaimlerChrysler Financial Services expanded its financing
activities for commercial vehicles in Japan by establishing the
new Fuso Financial business unit. Since September 2006, Fuso
Financial is in charge of Mitsubishi Fuso's entire dealer
network in Japan.
Van, Bus, Other
Within the framework of the new management model,
DaimlerChrysler decided that the vans and buses activities,
which until 2005 were part of the Commercial Vehicles division,
would be directly managed as separate units. In addition, the
Corporate Research department and the development departments of
the Mercedes Car Group were merged; as a result, they are now
directly allocated to the Mercedes Car Group.
The Van, Bus, Other segment recorded an operating profit of
EUR913 million in 2006 (2005: EUR1.091 billion). Operating
profit in 2006 includes charges of EUR393 million for the
implementation of the new management model. These charges were
mainly incurred for workforce reductions in the DaimlerChrysler
Group's administrative areas. Exceptional income was achieved
in 2006 from the sale of real estate not required for operating
purposes (EUR133 million) and the consummation of the sale of
the off-highway business (EUR248 million).
Operating profit for 2005 included a positive contribution from
the off-highway business of EUR144 million. The Van and Bus
operating units again achieved positive results.
Unit sales at the Vans unit totaled 256,900 vehicles worldwide
in the year under review (2005: 267,200). This slight decrease
in sales was due to the Sprinter model changeover and associated
production bottlenecks at the Dusseldorf plant. DaimlerChrysler
Buses comprises the bus operations of the Mercedes-Benz, Setra,
and Orion brands. The unit sold 36,200 buses and chassis
worldwide in 2006 (2005: 36,200). The Buses unit thus repeated
the high level of unit sales it achieved in the prior year and
maintained its position as the global market leader.
EADS contributed EUR649 million to the segment's operating
profit, which was below the prior-year result of EUR757 million.
The reduction is primarily related to delays with the delivery
of the Airbus A380. EADS will publish its results for the 2006
financial year on March 9, 2007.
Outlook
On the basis of the divisions' planning, DaimlerChrysler expects
the Group's total unit sales to increase slightly in the year
2007. DaimlerChrysler assumes that total revenues in 2007 will
be at least in the magnitude of the prior year.
Based on the divisions' projections, DaimlerChrysler should
achieve a significant increase in profitability in the planning
period of 2007 through 2009.
A fundamental condition for the targeted increase in earnings is
a generally stable economic and political situation, as well as
the moderate rise in the worldwide demand for passenger cars and
commercial vehicles expected for the years 2007 through 2009.
Opportunities and risks may arise from the development of
currency exchange rates and raw-material prices.
In the year 2007, DaimlerChrysler will change over its
accounting and financial reporting to the International
Financial Reporting Standards. The present main performance
measure, operating profit according to US GAAP, will then be
replaced with EBIT (earnings before interest and taxes). The
earnings outlook will be put into more detail with the
publication of the interim report on the first quarter of 2007.
A full-text copy of the company's 2006 results is available for
free at http://ResearchArchives.com/t/s?19dc
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company has operations in Venezuela, among other Latin
American countries.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
DAIMLERCHRYSLER: Chrysler Discloses Recovery/Transformation Plan
----------------------------------------------------------------
DaimlerChrysler AG's Chrysler Group disclosed a three-year
Recovery and Transformation Plan that seeks a return to
profitability by 2008 while also taking steps to change its
business model for the long run. The plan will result in an
employee reduction of 13,000 people from 2007 to 2009.
Chrysler Group President and Chief Executive Officer Tom LaSorda
outlined the plan at the DaimlerChrysler AG Annual Press
Conference, held in Auburn Hills, Mich.
DaimlerChrysler Chairman of the Board of Management Dr. Dieter
Zetsche said: "The Chrysler Team worked out a comprehensive
Recovery and Transformation Plan using all resources within
DaimlerChrysler. In addition to that and in order to optimize
and accelerate the presented plan we are looking into further
strategic options with partners beyond the business cooperation
partners mentioned. In this regard, we do not exclude any
option in order to find the best solution for both the Chrysler
Group and DaimlerChrysler."
Overall, the Recovery and Transformation Plan is aimed at a
return to profitability with a primary focus on costs. It is
structured to over-achieve in order to offset potential
unforeseen market headwinds, resulting in a target of EUR3.5
billion (US$4.5 billion) of financial improvements -- or a
return on sales of 2.5% -- by 2009.
"There are two integrated parts to the plan," Mr. LaSorda said.
"First, the Chrysler Group needs to solidify its position in the
North American marketplace. In addition, the key to our long-
term success will be our ability to transform the organization
into a different company to achieve and sustain long-term
profitability."
The program will be supported by a EUR2.3 billion (US$3 billion)
investment in new engines, transmissions, and axles, which will
set the table for a product offensive of more than 20 all-new
and 13 refreshed vehicles from 2007 to 2009.
Recovery
The Recovery plan is aimed at a return to profitability through
a combination of revenue programs and by sharply focusing on
costs.
The key measures include:
A. Revenue Management
* Continue the product offensive with eight new and five
refreshed products in 2007. Key products include the new
Chrysler Town and Country and Dodge Grand Caravan minivans,
midsize Dodge Avenger sedan, Chrysler Sebring convertible,
and a Jeep Liberty that completes the revamping and
expansion of the Jeep family.
* Improve the retail-to-fleet mix, build momentum with new
offerings in global markets, and improve the effectiveness
of marketing and incentive spending.
* Reduce and optimize the dealer network to improve dealer
profitability.
B. Material and Fixed Costs
* Reduce material costs by up to EUR1.15 billion (US$1.5
billion) by 2009.
* Explore the sale of support operations, including
transportation services.
C. Capacity & Efficiency
* Reduce total production capacity by 400,000 units per year.
* In 2007, eliminate a shift at Newark (Delaware) Assembly
Plant and the Warren (Michigan) Truck Plant. In 2008,
eliminate a shift at St. Louis (Missouri) South Assembly
Plant.
* Idle Newark Assembly Plant in 2009.
* Idle the Cleveland (Ohio) Parts Distribution Center in
December 2007.
* Adjust powertrain, stamping, and component operations to
reflect reduced capacity.
D. Employee Reduction
* Overall, Chrysler Group will reduce the number of employees
by 13,000, or approximately 16%.
* Hourly employment will be reduced by 11,000 over three
years, with 9,000 in the U.S., and 2,000 in Canada (4,700
in the U.S. and 1,100 in Canada in 2007 alone).
* Of the U.S. hourly total, 4,000 employees will be impacted
by assembly plant actions; 1,000 by reduced capacity in
powertrain, stamping and other component operations, 1,000
by other actions including the potential sale of support
functions and 3,000 through technology, efficiency, and
productivity.
* Salaried employment will be reduced by 2,000 over the next
two years, with 1,000 each in 2007 and 2008.
* Special retirement programs and other termination and
attrition programs will be announced separately.
Mr. LaSorda said these actions complement significant other
restructuring measures taken since 2001. Previous to this
announcement, the company closed, idled, or sold 16 plants (five
assembly, 11 component) and reduced its workforce by one-third.
The financial impact of these Recovery measures will be seen
beginning in 2007 with a restructuring charge of up to
EUR1 billion (US$1.3 billion), with the net cash impact for the
year of about EUR800 million (US$1 billion). The impact of the
balance will be in the following two years.
In 2007, the Chrysler Group expects to further reduce dealer
inventories to align with market demand, which will result in a
reduction in operating profit of approximately EUR230 million
(US$300 million).
Transformation
Key parts of the Transformation will be a greater global
footprint and a shift in the product mix to smaller, more fuel-
efficient vehicles.
Currently, North America represents some 90% of the Chrysler
Group's business, and its product line-up has historically been
heavily weighted toward minivans, trucks and sport utility
vehicles.
"Those two factors were advantages for Chrysler Group once upon
a time," Mr. LaSorda said, "but the rules of the global
marketplace have changed. High fuel prices and other dramatic
shifts in the market have driven a shift in consumer preferences
to smaller, more fuel-efficient vehicles. We must make some
strategic adjustments to build off our historic strengths, but
not rely on them so much so that we are put at a competitive
disadvantage," he said.
"That will require a redesigned business model, with three
primary areas of strategic focus," Mr. LaSorda said. "First,
the Chrysler Group will add a more robust customer and brand
focus while continuing to stress product leadership. In
addition, we must achieve better global balance and rely more
heavily on leveraging partnerships to manage costs while finding
growth opportunities."
Specifically, Mr. LaSorda pointed to the following initiatives:
A. Customer and Brand Focus
* Continue the product offensive through 2009, with more than
20 all-new vehicles and 13 refreshed vehicles.
* Build on its existing product strengths through new entries
in the minivan, pick-up truck, and select rear-drive
full-size vehicles. At the same time, the company will
learn to do more with less with a plan to reduce product
platforms from the current 12 to seven by the year 2012.
* Expand into new commercial vehicle segments, including
entering the Class 4 & 5 truck segments for the first time.
* Continue the shift to a car/truck mix that is less reliant
on trucks.
* Invest in powertrain with EUR2.3 billion (US$3 billion)
dedicated to new engines, transmissions, and axles, in
order to move toward a portfolio that is more fuel
efficient. That will include a common axle program for all
vehicles, plus work on a new transmission technology. Last
week, the company signed a non-binding memorandum of
understanding with Getrag (a German-based supplier) to
develop this more fuel efficient "dual clutch" transmission
technology.
* As part of that powertrain offensive, the company has under
development a new V-6 engine platform (dubbed "Phoenix")
which is targeted to reduce the number of six-cylinder
engine families from four to one.
* In addition, Chrysler Group will introduce its first two-
mode full hybrid with the 2008 Dodge Durango, and is also
evaluating a mild hybrid for future applications.
* Finally, it will expand its line-up of diesel engines,
including several BLUETEC-labeled vehicles, a designation
emblematic of the cleanest diesel in its class.
B. Increase Global Presence
* Avoid nameplate redundancies in North America and develop
and introduce vehicle programs aimed at global markets.
* Use third parties where possible to access regional
products and markets where it makes economic sense.
* Balance supplier purchasing globally by targeting
EUR3.8 billion (US$5 billion) of additional purchasing to
low-cost sources to complement the company's global growth.
C. Partnerships
* Better use of alliances and partnerships around the world,
such as the Chrysler Group does currently with:
-- In manufacturing, an agreement with Volkswagen to build
minivans in North America for VW's dealers.
-- In retail, such as in Mexico where it sells a
Hyundai-produced vehicle as the Dodge Atos, and soon
will sell a small cargo van produced in Taiwan.
-- In import opportunities, such as the recently-announced
agreement in principle with Chery Automobile Company of
China (contingent upon approvals from the
DaimlerChrysler Supervisory Board and the Chinese
government) produce a small car for sale in North
America and Europe.
-- And in focused partnerships, such as the GEMA World
Engine project with Hyundai and Mitsubishi in Dundee,
Mich., or the DaimlerChrysler consortium with General
Motors and BMW to develop hybrids.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company has operations in Venezuela, among other Latin
American countries.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
ELECTRICIDAD DE CARACAS: S&P Revises Outlook to Developing
----------------------------------------------------------
Standard & Poor's Ratings Services revised the CreditWatch
implications for its 'B' foreign currency corporate credit
rating on C.A. La Electricidad de Caracas to developing from
negative.
In addition, Standard & Poor's revised the CreditWatch
implications for its 'B' senior unsecured debt rating on
Electricidad de Caracas Finance B.V.'s notes due 2014 to
developing from negative.
The revised CreditWatch follows the preliminary agreement
between the AES Corp. (BB-/Stable/--) and the Bolivarian
Republic of Venezuela (BB-/Stable/B) for the purchase of AES'
82.14% stake in EDC for US$740 million (after 2007 dividends).
The government will acquire the company through Petroleos de
Venezuela S.A. (PDVSA; B+/Watch Pos/--).
This agreement, in S&P's view, removes some of the downside risk
in the credit, in that the Venezuelan government would be
providing meaningful compensation to AES for the nationalization
of EDC. The agreement also introduces upside rating potential,
since the new owner is rated higher than EDC and the new asset
may be considered strategic for PDVSA.
"Resolving the CreditWatch will depend on our view of Venezuela
country risk and its effect on EDC's stand-alone reditworthiness
going forward and whether EDC is successfully sold to PDVSA and
under what terms," said Standard & Poor's credit analyst Fabiola
Ortiz.
S&P may raise its rating on EDC to 'B+' if it views potential
PDVSA support for EDC debt as material; the rating agency could
lower the rating if either EDC's debt is disadvantaged in any
way as a result of the nationalization process or we perceive a
significant deterioration in EDC's stand-alone creditworthiness
related to increased Venezuela country risk.
Alternatively, S&P could affirm the ratings if it determines
that EDC's stand-alone creditworthiness has not changed and
there is little support to be expected from PDVSA.
S&P expects to resolve the CreditWatch listing upon the
completion of the sale to PDVSA, which is contingent on
completion of a definitive agreement and satisfactory due
diligence.
EDC is the largest private-sector electric utility in Venezuela
and generates, transmits, distributes, and markets electricity
primarily to metropolitan Caracas and its surrounding areas.
The AES Corp. owns 86% of EDC and acquired its stake in June
2000, through a public-tender offer.
PETROLEOS DE VENEZUELA: Increasing Daily Output to 80K Barrels
--------------------------------------------------------------
Petroleos de Venezuela SA plans to raise daily oil production by
10,000 barrels to 80,000 in the country's western state, Prensa
Latina reports.
The production increase is part of the company's plan to hike
total oil production to 847,000 barrels daily in 2012, the same
reports says.
Jose Luis Parada, Petroleos de Venezuela's general manager for
the western region, told Panorama de Maracaibo, that new
investments for US$1.2 billion will be poured in the region and
the Chinese technology will be implemented.
Petroleos de Venezuela SA -- http://www.pdv.com/--
isVenezuela'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, 2006, 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: Using U.S. Dollars in Payments
------------------------------------------------------
Petroleos de Venezuela SA's anti-inflation plan involves paying
taxes, royalties and dividends in U.S. dollars to lower excess
liquidity and curb inflation, Theresa Bradley at Bloomberg News
reports.
According to Bloomberg, Petroleos de Venezuela moved its dollar
income for 2006 to the central bank and to Fonden, President
Hugo Chavez's special spending fund.
"We're not dollarizing transactions," Venezuelan Finance
Minister Rodrigo Cabezas was quoted by Bloomberg as saying.
"Public spending will continue to be carried out in bolivars,
once the government decides how to use them."
The central bank's efforts to drain the market of excess
liquidity was dampened by the administration's use of oil income
to boost social spending, resulting to too much bolivars in
circulation.
Bloomberg says the latest move further strips the central bank
of its control over the administration of foreign exchange, and
is likely to make it harder for the government to stem annual
inflation. Inflation was 18.4% in January.
* VENEZUELA: Moody's Affirms B1 Ratings on Orinoco Projects
-----------------------------------------------------------
Moody's Investors Service has affirmed the B1 rating for all
four "Extra Heavy Crude Oil" projects operating in Venezuela and
changed the rating outlook to negative from stable. The outlook
change follows recent political developments in Venezuela that
appear to give the executive branch power, by decree, to
nationalize, in part, or in whole, the operations of the four
projects located in the Orinoco region of Venezuela.
Specifically, the negative outlook considers the lack of clarity
surrounding any negotiations by the government and the sponsors
regarding how lenders may be affected by such a change in
ownership. Also significantly weighing into consideration are
the recent mandated cutbacks in production due to Venezuela's
OPEC commitments. The cutbacks, unlike the potential changes in
equity ownership, can have a direct negative impact on the level
of cash flow available for debt service.
Although certain structural protections remain at the projects,
the potential for increasing levels of government ownership has
hardened Moody's view that the credit risk involved is analogous
to the risk implied by the current rating of government-owned
Petroleos de Venezuela S.A. or PDVSA, currently a minority
partner at all of the projects. Moody's negative outlook for
the ratings considers the potential negative impact if any, of
any change of control on the debt service ability of the
projects going forward, as well as the impact of production
cutbacks on current and future operating results.
Rating outlooks changed to negative from stable include:
-- Cerro Negro Finance Ltd.
-- Petrozuata Finance Inc.
-- Sincrudos de Oriente SINCOR C.A.
-- Hamaca Holding LLC
On Jan. 31, 2007, the National Assembly in Venezuela approved a
measure that allowed the President to enact certain changes to
the economy of Venezuela, including the energy sector. This
followed several months where announcements by representatives
of PDVSA and the Venezuelan government have indicated that a
future change in the ownership structure will be carried out at
each of the Orinoco projects, in which PDVSA currently holds
interests ranging from 30% to 49%. In accordance with the newly
enacted measures, government representatives have now announced
that Venezuela, through PDVSA, will take at least a 60%
ownership stake in all four of the projects by May 1, 2007.
Currently, PDVSA does not hold a majority interest in any of the
four projects, but comments by the government have made it clear
that taking majority control is the desired outcome.
Moody's believes the project sponsors are in negotiations with
the Venezuelan Ministry of Energy and Petroleum about what form
the future ownership structure will take. Under certain
circumstances, Moody's believes the project owners will be
required to seek lender approval before ownership transfers are
effected. Moody's believes that changes in the equity ownership
of the projects should not, in isolation, negatively affect cash
flows available for debt service. Nevertheless, the impending
changes in ownership could represent a significant weakening of
the contractual agreements underlying these projects and present
some uncertainty regarding how operational, capital spending,
and distribution decisions will be made going forward.
In June 2006, Moody's downgraded the senior secured ratings of
all four of the projects to B1. The rating action reflected
Moody's concerns over the impact that increased tax and royalty
rates at the projects would have on the cash flows available
before debt service. Nevertheless, the projects are still
operating well and providing cash flows at levels appropriate
for the rating category, and are also currently generating
needed cash flows for the Venezuelan government. We note the
current high oil price environment has somewhat mitigated the
negative impact of the additional tax payments. A growing
concern of Moody's is the potential for further production
cutbacks due to the Venezuelan government's OPEC obligations.
Commentary by the government has indicated that aggregate
production from the four projects is now approximately
500,000/bpd (barrels per day), or around 80% of the envisioned
600,000 bpd. The cutbacks come at a time when pre-debt service
cash flows are already negatively affected by increased taxes
and royalties.
Despite the ownership and production uncertainties, the projects
continue to exhibit inherent strengths in their structures --
including secured offshore accounts, strong foreign partners,
and significant reserve dedications and guaranteed off take
agreements, which overall, help to mitigate the likelihood of
diversion by the Venezuelan government of the product or cash
flow. Also, the economic importance of PDVSA to Venezuela,
coupled with the need for continued foreign investment in the
oil sector, remain important factors. At B1, the project
ratings are now in line with the B1 global local currency rating
of PDVSA and the foreign currency ceiling of Venezuela. The
ratings could be downgraded if the tax, royalty, and production
changes begin to fundamentally weaken the economics of the
projects further or if a technical event of default caused by
the change in ownership is not cured or resolved in a timely
manner.
The Petrozuata, Sincor, Hamaca, and Cerro Negro projects
produce, upgrade and export heavy oil in the Orinoco region in
Southeastern Venezuela. The four projects are separately owned
and operated, with current shareholdings by their ultimate
owners as:
-- Petrozuata (ConocoPhillips 50.1%, PDVSA 49.9%);
-- Cerro Negro (ExxonMobil 41.67%, PDVSA 41.67%, BP Plc
16.67%);
-- Hamaca (ConocoPhillips 39.9%, Chevron 30.1%, PDVSA
30%); and
-- Sincor (Total 47%, Statoil 15%, PDVSA 38%).
* IDB Okays New Regional Strategy for Support to CARICOM
--------------------------------------------------------
The Inter-American Development Bank aka IDB has approved a new
strategy for support to the regional integration process of the
Caribbean Community or CARICOM in the 2007-2010 period.
CARICOM is one of the oldest and most advanced integration
arrangements in the Western Hemisphere. It is the largest in
terms of membership yet by far the smallest in economic size.
Member of the CARICOM include:
-- The Bahamas,
-- Barbados,
-- Belize,
-- Guyana,
-- Haiti,
-- Jamaica,
-- Suriname,
-- Trinidad and Tobago,
-- Antigua and Barbuda,
-- Dominica,
-- Grenada,
-- Montserrat,
-- St. Kitts and Nevis,
-- St. Lucia, and
-- St. Vincent and the Grenadines.
Eight of CARICOM's 15 member states are also borrowing members
of the IDB. The bank has established a partnership with the
Caribbean Development Bank to extend technical and financial
support to the remaining seven member states of CARICOM, which
comprise the Organization of Eastern Caribbean States.
The main objective of the strategy is to help Caribbean
countries transform their regional integration process into an
effective instrument of global integration, competitiveness and
economic growth.
"The approval of this strategy by the Board of Directors
strengthens the Bank's role as an important partner in the
region's social and economic progress," said Jerry Butler, IDB
Executive Director for the Bahamas, Barbados, Guyana, Jamaica,
and Trinidad and Tobago.
The strategy proposes two main areas of strategic focus. The
first is full intra-regional market liberalization, aligned with
CARICOM's external liberalization efforts and effectively
managing the distributional risks of liberalization.
IDB will support CARICOM in its efforts to:
-- eliminate remaining restrictions to the free flow
of goods, services, capital and people within the
CARICOM Single Market and Economy;
-- align its regional and global integration agendas;
-- establish effective regional mechanisms for
adjustment support to help disadvantaged countries,
regions and sectors in CARICOM manage the
integration process; and
-- facilitate private sector development within a more
open trading environment.
The second strategic area is regional cooperation to improve
CARICOM's social and economic infrastructure in critical areas
of development. The aim is to support horizontal initiatives
that benefit all productive sectors, and to focus on initiatives
that can improve, at a lower costs to members, the region's
existing infrastructure and related services.
Following these objectives, IDB will offer support to five
specific areas of regional cooperation:
-- information and communications technology,
-- energy,
-- disaster risk management,
-- statistics, and
-- initiatives aimed at strengthening the management of
the integration process itself, in terms of
planning, monitoring and awareness building.
IDB will work with regional authorities in CARICOM to develop a
specific pipeline of projects in support of the strategy. In the
last five years, the bank and its Multilateral Investment Fund
have provided grant funding of US$2.7 million a year on average
for regional integration and cooperation programs in CARICOM.
IDB is supporting 30 regional projects in the Caribbean, with
contributions totaling over US$14 million in grant funding. The
Bank's regional programs complement national activities in its
Caribbean borrowing member countries.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
February 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
3rd Annual Martini Networking Event
Gibson's Steakhouse, Chicago, IL
Contact: 815-469-2935 or http://www.turnaround.org/
February 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Valuation Outlook - What's in Store for 2007
University Club, Portland, OR
Contact: http://www.turnaround.org/
February 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Window of Opportunity: Maximizing Value in a Retail
Bankruptcy
Denver Athletic Club, Denver, CO
Contact: http://www.turnaround.org/
February 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Men's College Basketball & Networking
Wachovia Center, Philadelphia, PA
Contact: 215-657-5551 or http://www.turnaround.org/
February 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Wharton Restructuring Conference
The Wharton School
Philadelphia, PA
Contact: http://www.turnaround.org/
February 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Professional Development
Brisbane, Australia
Contact: http://www.turnaround.org/
February 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Member Appreciation FREE Happy Hour
Gordon Biersch Brewery Restaurant, Miami, FL
Contact: 561-882-1331 or http://www.turnaround.org/
February 21-22, 2007
EUROMONEY
Euromoney Pakistan Conference
Perceptions & Realities
Marriott Hotel, Islamabad, Pakistan
Contact: http://www.euromoneyplc.com/
February 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA-NOW Networking & Panel: Discussing Women's Networking
Issues
PBI, Philadelphia, PA
Contact: 215-657-5551 or
http://www.turnaround.org/
February 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA PowerPlay - Atlanta Thrashers
Philips Arena, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
February 22, 2007
EUROMONEY
2nd Annual Euromoney Japan Forex Forum
Mandarin Oriental, Tokyo, Japan
Contact: http://www.euromoneyplc.com/
February 25-26, 2007
NORTON INSTITUTES
Norton Bankruptcy Litigation Institute
Marriott Park City, UT
Contact: http://www2.nortoninstitutes.org/
February 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Member Appreciation FREE Happy Hour
Maggianos, Tampa, FL
Contact: 561-882-1331 or http://www.turnaround.org/
February 27, 2007
PRACTISING LAW INSTITUTE
Intercreditor Agreements & Bankruptcy Issues Workshop
San Francisco, CA
Contact: http://www.pli.edu/
February 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Devil Rays Turnaround
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
February 27-28, 2007
EUROMONEY INSTITUTIONAL INVESTOR
5th Annual Corporate Restructuring Summit
Sheraton Park Lane Hotel, London, U.K.
Contact: http://www.euromoneyplc.com/
March 1, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - West
Regency Beverly Wilshire, Los Angeles, CA
Contact: http://www.abiworld.org/
March 2, 2007
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Bankruptcy Battleground West
Regency Beverly Wilshire, Los Angeles, CA
Contact: http://www.abiworld.org/
March 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
The Great Debate
Sydney, Australia
Contact: http://www.turnaround.org/
March 14-15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Atlanta, GA
Contact: http://www.turnaround.org/
March 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
LI Turnaround Management Event
Long Island, NY
Contact: http://www.turnaround.org/
March 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Martini Madness Cocktail Reception with Geraldine Ferraro
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
March 15-18, 2007
NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES
NABT Spring Seminar
Ritz-Carlton Buckhead, Atlanta, GA
Contact: http://www.NABT.com/
March 18-21, 2007
INSOL
Annual Europe, Africa & Middle East Conference
Cape Town, South Africa
Contact: http://www.insol.org/CapeTown07/
March 20, 2007
THOMSON WEST LEGALWORKS
Insurance and Reinsurance Allocation Superbowl
New York, NY
Contact: http://www.westlegalworks.com/
March 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
The Next Wave of Distressed Businesses: A Panel Discussion
South Florida
Contact: http://www.turnaround.org/
March 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
March 21-22, 2007
EUROMONEY
2nd Annual Vietnam Investment Forum
Melia, Hanoi, Vietnam
Contact: http://www.euromoneyplc.com/
March 21-22, 2007
EUROMONEY
Euromoney Indian Financial Market Congress
Grand Hyatt, Mumbai, India
Contact: http://www.euromoneyplc.com/
March 22-23, 2007
EUROMONEY INSTITUTIONAL INVESTOR
Euromoney Indonesian Financial Markets Congress
Bali, Indonesia
Contact: http://www.euromoneyplc.com/
March 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
"The Six Keys of Sustained Profitable Growth"
Rodney Page, Senior Partner of Blue Springs Partners
Citrus Club, Orlando, FL
Contact: http://www.turnaround.org/
March 27-31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Spring Conference
Four Seasons Las Colinas, Dallas, Texas
Contact: http://www.turnaround.org/
March 29-31, 2007
ALI-ABA
Chapter 11 Business Reorganizations
Scottsdale, Arizona
Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/
April 5, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Case Study "When Everything Goes Wrong"
University of Florida, Gainesville, FL
Contact: http://www.turnaround.org/
April 11-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
ABI Annual Spring Meeting
J.W. Marriott, Washington, DC
Contact: 1-703-739-0800; http://www.abiworld.org/
April 12, 2007
INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING
CONFEDERATION
IWIRC 4th Spring Luncheon and Founders Awards
Washington, DC
Contact: http://www.iwirc.org/
April 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
Contact: 561-882-1331 or http://www.turnaround.org/
April 12, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - East
JW Marriott, Washington, DC
Contact: http://www.abiworld.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Wine Tasting Social
TBA, Long Island, NY
Contact: 631-251-6296 or http://www.turnaround.org/
April 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast meeting with Chapter President, Bruce Sim
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
April 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
"Why Prospects Become Clients"
Mark Fitzgerald, President of Sales Training Institute Inc
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Jacksonville Zoo Turnaround
University Club, Jacksonville, FL
Contact: http://www.turnaround.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
1st Annual Credit & Bankruptcy Symposium Golf/Spa Outing
Fox Hopyard Golf Club, East Haddam, CT
Contact: 203-265-2048 or http://www.turnaround.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Spa Outing
Mohegan Sun, Uncasville, CT
Contact: 203-265-2048 or http://www.turnaround.org/
April 26-27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
1st Annual Credit & Bankruptcy Symposium
Mohegan Sun, Uncasville, CT
Contact: http://www.turnaround.org/
April 26-28, 2007
ALI-ABA
Fundamentals of Bankruptcy Law
Philadelphia, PA
Contact: http://www.ali-aba.org/
April 29 - May 1, 2007
INTERNATIONAL BAR ASSOCIATION
International Insolvency Conference
Zurich, Switzerland
Contact: http://www.ibanet.org/
May 4, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - NYC
Alexander Hamilton U.S. Custom House, SDNY
New York, NY
Contact: http://www.abiworld.org/
May 7, 2007
AMERICAN BANKRUPTCY INSTITUTE
9th Annual New York City Bankruptcy Conference
Millennium Broadway Hotel & Conference Center
New York, NY
Contact: http://www.abiworld.org/
May 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual TMA Atlanta Golf Outing
White Columns, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
May 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
May 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Bankruptcy Judges Panel
Marriott North, Fort Lauderdale, FL
Contact: http://www.turnaround.org/
May 17-18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
6th Annual Great Lakes Regional Conference
Renaissance Quail Hollow Resort, Painesville, OH
Contact: http://www.turnaround.org/
May 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Bankruptcy Judges Panel
Citrus Club, Orlando, FL
Contact: http://www.turnaround.org/
May 30-31, 2007
FINANCIAL RESEARCH ASSOCIATES
Distressed Debt
Harvard Club, New York, NY
Contact: http://www.frallc.com/
June 6-8, 2007
TURNAROUND MANAGEMENT ASSOCIATION
5th Annual Mid-Atlantic Regional Symposium
Borgata Hotel Casino & Spa, Atlantic City, NJ
Contact: http://www.turnaround.org/
June 6-9, 2007
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
23rd Annual Bankruptcy & Restructuring Conference
Westin River North, Chicago, Illinois
Contact: http://www.airacira.org/
June 14-17, 2007
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
June 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Bankruptcy Judges Panel
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
June 28 - July 1, 2007
NORTON INSTITUTES
Norton Bankruptcy Litigation Institute
Jackson Lake Lodge, Jackson Hole, WY
Contact: http://www2.nortoninstitutes.org/
July 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Bankruptcy Judges Panel
University Club, Jacksonville, FL
Contact: http://www.turnaround.org/
July 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
Contact: 561-882-1331 or http://www.turnaround.org/
July 12-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Marriott, Newport, RI
Contact: 1-703-739-0800; http://www.abiworld.org/
July 18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
July 25-28, 2007
AMERICAN BANKRUPTCY INSTITUTE
12th Annual Southeast Bankruptcy Workshop
The Sanctuary, Kiawah Island, SC
Contact: http://www.abiworld.org/
August 9-11, 2007
AMERICAN BANKRUPTCY INSTITUTE
3rd Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, MD
Contact: http://www.abiworld.org/
August 23-26, 2007
NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES
NABT Convention
Drake Hotel, Chicago, IL
Contact: http://www.nabt.com/
August 28, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Healthcare Panel
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
September 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Southwest Bankruptcy Conference
Four Seasons
Las Vegas, NV
Contact: http://www.abiworld.org/
September 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
September 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Buying and Selling Troubled Companies
Marriott North, Fort Lauderdale, FL
Contact: http://www.turnaround.org/
September 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Retail Panel
Citrus Club, Orlando, FL
Contact: http://www.turnaround.org/
October 10-13, 2007
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Orlando, Florida
Contact: http://www.ncbj.org/
October 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
Contact: 561-882-1331 or http://www.turnaround.org/
October 16-19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Copley Place, Boston, Massachusetts
Contact: 312-578-6900; http://www.turnaround.org/
October 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Crisis Communications With Employees,Vendors and Media
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
October 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
Centre Club, Tampa, FL
Contact: 561-882-1331 or http://www.turnaround.org/
November 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Dinner
South FL
Contact: 561-882-1331 or http://www.turnaround.org/
December 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Westin Mission Hills Resort, Rancho Mirage, California
Contact: 1-703-739-0800; http://www.abiworld.org/
December 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
TBA 2008
INSOL
Annual Pan Pacific Rim Conference
Shanghai, China
Contact: http://www.insol.org/
January 10, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
March 25-29, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Ritz Carlton Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
April 3-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
26th Annual Spring Meeting
The Renaissance, Washington, DC
Contact: http://www.abiworld.org/
June 4-7, 2008
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
24th Annual Bankruptcy & Restructuring Conference
JW Marriott Spa and Resort, Las Vegas, NV
Contact: http://www.airacira.org/
June 12-14, 2008
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, MI
Contact: http://www.abiworld.org/
August 16-19, 2008
AMERICAN BANKRUPTCY INSTITUTE
13th Annual Southeast Bankruptcy Workshop
Ritz-Carlton, Amelia Island, FL
Contact: http://www.abiworld.org/
September 24-27, 2008
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Scottsdale, Arizona
Contact: http://www.ncbj.org/
October 28-31, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Copley Place, Boston, Massachusetts
Contact: 312-578-6900; http://www.turnaround.org/
December 4-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
20th Annual Winter Leadership Conference
Westin La Paloma Resort & Spa
Tucson, AZ
Contact: http://www.abiworld.org/
June 21-24, 2009
INSOL
8th International World Congress
TBA
Contact: http://www.insol.org/
October 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Desert Ridge, Phoenix, Arizona
Contact: 312-578-6900; http://www.turnaround.org/
2009 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Las Vegas, Nevada
Contact: http://www.ncbj.org/
October 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
2010 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
New Orleans, Louisiana
Contact: http://www.ncbj.org/
BEARD AUDIO CONFERENCES
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Real Estate under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changes to Cross-Border Insolvencies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Healthcare Bankruptcy Reforms
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Calpine's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Validating Distressed Security Portfolios: Year-End Price
Validation and Risk Assessment
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Employee Benefits and Executive Compensation under the New
Code
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Dana's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Reverse Mergers-the New IPO?
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Privacy Rights, Protections & Pitfalls in Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
When Tenants File -- A Landlord's BAPCPA Survival Guide
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Clash of the Titans -- Bankruptcy vs. IP Rights
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Market Opportunities
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Homestead Exemptions under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
BAPCPA One Year On: Lessons Learned and Outlook
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Surviving the Digital Deluge: Best Practices in E-
Discovery and Records Management for Bankruptcy
Practitioners and Litigators
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Deepening Insolvency - Widening Controversy: Current
Risks, Latest Decisions
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
KERPs and Bonuses under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Diagnosing Problems in Troubled Companies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Equitable Subordination and Recharacterization
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Reyes, Christian Toledo, and Junald Ango, Editors.
Copyright 2076. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *