/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070221.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, February 21, 2007, Vol. 8, Issue 37 Headlines A R G E N T I N A BANCO GALICIA: Reports ARS109-Mil. Loss in Fourth Quarter 2006 DISTRIBUIDORA ENERGY: Asks Court for Reorganization Approval FIRST MEDICAL: Court Approves Reorganization of Business GAONA EXPRESS: Trustee Will Verify Claims Until March 20 LIBERIAN SRL: Trustee Verifies Proofs of Claim Until March 7 LIMPIEZA EXPRESS: Court Okays Reorganization of Business MEDAM BA: Court Approves Reorganization Case NOSWAR SA: Trustee Will Verify Proofs Of Claim Until May 3 OESTE VISION: Trustee Verifies Proofs of Claim Until April 17 SANTAX SRL: Court Approves Reorganization of Business SECURITY CONSULTANTS: Trustee Verifies Claims Until March 16 STARPET SA: Trustee Will Verify Proofs of Claims Until April 12 VILLANES JONES: Proofs of Claim Verification Is Until April 16 B E R M U D A BRITISH AIRWAYS: Lowers London-Bermuda Roundtrip Fares by 30% CONSTRUCTION INSURANCE: Proofs of Claim Filing Is Until March 22 DEPOMED DEVELOPMENT: Proofs of Claim Filing Is Until Feb. 28 GLOBAL CROSSING: Inks Pact with ESnet to Support IPV6 Exchange GREEN SHOE: Proofs of Claim Filing Is Until March 2, 2007 IMATION INSURANCE: Proofs of Claim Filing Is Until March 2, 2007 SCOTTISH RE: Hovde Capital Opposes MassMutual-Cerberus Proposal SCOTTISH RE: Advisors Recommend 'Yes' Vote to MassMutual Deal SCOTTISH RE: Notifies Holders of 5.875% Hybrid Capital Units SEA CONTAINERS: Services Panel Taps Kroll as Financial Advisor SEA CONTAINERS: Services Panel Selects Willkie Farr as Counsel B R A Z I L ALCATEL-LUCENT: Inks Network Upgrade Deal with OJSC VimpelCom BANCO CRUZEIRO: Will Launch IPO This Year BANCO DO BRASIL: Brasilcap Raises 2006 Billing to BRL1.76 Bil. BANCO NACIONAL: Has US$477 Million for Digital TV Until 2013 BANCO ITAU: Posts BRL6.20 Billion Net Profits in 2006 BANCO ITAU: Itautec Reports BRL50 Million Net Profits in 2006 COMPANHIA DE SANEAMENTO: Prioritizing River Tiete Cleanup PETROLEO BRASILEIRO: Earns BRL25.9 Million in 2006 Fiscal Year PETROLEO BRASILEIRO: Sees No Impact on NatGas Deal, Analyst Says PETROLEO BRASILEIRO: Will Launch Four Oil Rigs This Year ZIM CORP: Posts US$507,117 Net Loss in Quarter Ended December 31 C A Y M A N I S L A N D S CCP ALLIED: Final Shareholders Meeting Is Set for March 9 KEYNES LEVERAGED: Final Shareholders Meeting Is Set for March 9 KEYNES LEVERAGED MASTER: Final Shareholders Meeting on March 9 KEYNES MASTER: Final Shareholders Meeting Is Set for March 9 MILLENNIUM GROWTH: Final Shareholders Meeting Is Set for March 9 OECHSLE NIPPON: Final Shareholders Meeting Is Set for March 9 PARMALAT SPA: Inks EUR25-Mil. Settlement with Popolare di Milano PARMALAT SPA: Milan Prosecutors Want Trial for Five Banks PARMALAT SPA: Sells Soccer Club to Tommaso Ghirardi for EUR30MM PERENNIAL INVESTMENTS: Sets Final Shareholders Meeting on Mar. 9 REFLECTIONS LTD: Proofs of Claim Must be Filed by March 11 C O L O M B I A BRIGHTPOINT INC: Secures US$165 Mil. Revolving Credit Facility C O S T A R I C A * COSTA RICA: Venezuela May Shut Down Alcasa Due to Conflict * COSTA RICA: Will Launch Tender for Construction of New Lines C U B A * CUBA: Worries on Power Cable & Steel Theft from Towers D O M I N I C A PETROLEOS DE VENEZUELA: Building Dominican Distribution Complex D O M I N I C A N R E P U B L I C COMPLETE RETREATS: Ct. OKs Sale of Dominican Assets for US$940K COMPLETE RETREATS: Grand Summit Property Sale for US$260K Okayed COMPLETE RETREATS: Court Approves Intagio Settlement Agreement E C U A D O R PETROECUADOR: Petroproduccion Loses Over 2,000 Barrels of Crude * ECUADOR: Former Oxy Fields to Produce 88,461 Barrels Daily * ECUADOR: Venezuelan Loan Not Needed to Ease Liquidity Troubles J A M A I C A AIR JAMAICA: Will Launch Montego-Curacao Sunday Flights M E X I C O ADVANCED MARKETING: Amends Wells Fargo DIP Loan Facility ARROW ELECTRONICS: Names John McMahon as Human Resources Sr. VP GENERAL MOTORS: Collaborates with Colorado State on E85 Ethanol KANSAS CITY: Mexican Unit to Invest US$380MM on Infrastructure RYERSON INC: Posts US$4.4 Mil. Net Loss in 2006 Fourth Quarter RYERSON INC: S&P Cuts Corporate Credit Rating to B+ from BB- RYERSON INC: Harbinger Capital Comments on 2006 Financials TK ALUMINUM: Proposes Amendments to Nemak Transaction Terms VISTEON CORP: Posts US$39 Mil. Net Loss in Fourth Quarter 2006 P U E R T O R I C O ADELPHIA COMM: Bondholders Oppose 2007 Workers Incentive Program ADELPHIA COMM: Bondholders Want IPO Material Info Disclosed ADELPHIA COMMS: Court Sets March 26 as Admin. Claims Bar Date T R I N I D A D & T O B A G O DIGICEL LTD: Gets Favorable Ruling on Interconnection Dispute V E N E Z U E L A ELECTRICIDAD DE CARACAS: Net Profits Increased to US$118.4 Mil. * VENEZUELA: Ecuador Doesn't Need US$1 Billion Loan from Nation * VENEZUELA: Sincor Acquisition Talks May Not End in 2007 * VENEZUELA: To Divide Loran Field with Trinidad & Tobago - - - - - ================= A R G E N T I N A ================= BANCO GALICIA: Reports ARS109-Mil. Loss in Fourth Quarter 2006 -------------------------------------------------------------- Banco Galicia said in its earnings release that it incurred ARS109-million loss in the fourth quarter 2006, compared to a ARS13.6-million profit in the fourth quarter 2005. Banco Galicia told BNamericas that the loss was due to ARS134- million charge related to the revaluation of public sector assets. Excluding the charge, the bank had ARS25.1 million profit in the fourth quarter 2006. BNamericas relates that Banco Galicia incurred ARS126 million loss in the full year 2006. According to BNamericas, Banco Galicia reduced its exposure to public sector assets to ARS8.97 billion in 2006, from ARS16.4 billion in 2005. It decreased its debt to the Argentine central bank to ARS3.03 billion from ARS8.61 billion. The report says that Banco Galicia's lending to the private sector increased 42.7% to ARS10.2 billion in 2006, compared to 2005. Past-due loans as a percentage of private sector loans declined to 3.49% from 6.77%. Meanwhile, deposits increased 30.7% to ARS10.6 billion in 2006, compared to 2005, BNamericas states. Headquartered in Buenos Aires, Argentina, Banco de Galicia y Buenos Aires SA -- http://www.e-galicia.com/-- is an Argentinean private bank that is engaged in commercial banking, providing general banking services to large corporations, small and medium-sized companies, agricultural and cattle farms and individuals. The company controls an extensive and diverse network of subsidiaries, which include Banco Galicia Uruguay SA, Galicia Capital Markets SA, Galicia Factoring y Leasing SA, Agro Galicia SA, Galicia Administradora de Fondos SA, Galicia Valores SA, Galicia Warrants SA, Net Investments SA, Sudamericana Holding SA and Tarjetas Regionales SA. Through its subsidiaries the company offers accounting, investment and insurance services, loans, checks and debit and credit cards. It also finances the development of real estate, acts as a fiduciary and leases properties to interested parties. It operates over 400 branches across the country and provides e-banking services to customers via its Internet site. * * * As reported on Apr. 12, 2006, the Argentine arm of Standard & Poor's assigned these ratings to Banco de Galicia y Buenos Aires' debts: -- Obligaciones negociables, series 6, issued on July 19, 2002, for US$73,000,000, emitted under the program for US$1000 million * Last due: Aug. 3, 2007 * Rate: raA -- Obligaciones Negociables, class 7 for US$43,000,000, included under the US$1000 million program * Last due: Aug. 3, 2007 * Rate: raA -- Program of obligaciones negociables, media term, for US$2,000,000,000 * Rate: raA -- Obligaciones Negociables simples 8-11-93, for US$21,400,000 * Last due: Nov. 1, 2004 * Rate: raD -- Obligaciones negociables simples for US$21,400,000 * Last due: Nov. 1, 2004 * Rate: raD -- Obligaciones Negociables issued for US$9,000,000, included under the US$1000 million program. * Last due: Dec. 20, 2005 * Rate: raD DISTRIBUIDORA ENERGY: Asks Court for Reorganization Approval ------------------------------------------------------------ Distribuidora Energy Drinks de Argentina SA, a company operating in Buenos Aires, has requested for reorganization after failing to pay its liabilities since Jan. 29, 2007. The reorganization petition, once approved by the court, will allow the Distribuidora Energy to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending before Court No. 12. Clerk No. 24 assists the Court on this case. The debtor can be reached at: Distribuidora Energy Drinks de Argentina SA Migueletes 1717 Buenos Aires, Argentina FIRST MEDICAL: Court Approves Reorganization of Business -------------------------------------------------------- Court No. 19 of Buenos Aires' civil and commercial tribunal approved a petition for reorganization filed by First Medical SA, according to a report from Argentine daily La Nacion. Trustee Carlos Menendez will verify claims from the First Medical's creditors until April 25, 2007. After verification period, the trustee will submit the individual and general reports in court. Dates for submission of these reports are yet to be disclosed. The informative assembly will be held on August 31, 2007. Creditors will vote to ratify the completed settlement plan during the said assembly. The city's Clerk No. 37 assists the court on the case. The debtor can be reached at: First Medical SA Venezuela 1552 Buenos Aires, Argentina The trustee can be reached at: Carlos Menendez Riobamba 340 Buenos Aires, Argentina GAONA EXPRESS: Trustee Will Verify Claims Until March 20 -------------------------------------------------------- Natalio Kinsbruner, the court-appointed trustee for Gaona Express SA's bankruptcy proceeding, will verify creditors' proofs of claim until March 20, 2007. Under the Argentine bankruptcy law, Mr. Kinsbruner 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 Gaona Express and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Kinsbruner will also submit a general report that contains an audit of Gaona Express's accounting and banking records. The report submission dates have not been disclosed. Gaona Express was forced into bankruptcy at the behest of Zanjitas SA, whom it owes US$15,000. Clerk No. 2 assists the court in the proceeding. The debtor can be reached at: Gaona Express SA Yerbal 5699 Buenos Aires, Argentina The trustee can be reached at: Natalio Kinsbruner Marcelo T. de Alvear 1671 Buenos Aires, Argentina LIBERIAN SRL: Trustee Verifies Proofs of Claim Until March 7 ------------------------------------------------------------ Angel Vello Vazquez, the court-appointed trustee for Liberian S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until March 7, 2007. Mr. Vazquez will present the validated claims in court as individual reports on April 23, 2007. A court in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Liberian S.R.L. 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 Liberian S.R.L.'s accounting and banking records will follow on June 4, 2007. Mr. Vazquez is also in charge of administering Liberian S.R.L.'s assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Liberian S.R.L. Salguero 3172 Buenos Aires, Argentina The trustee can be reached at: Angel Vello Vazquez Parana 275 Buenos Aires, Argentina LIMPIEZA EXPRESS: Court Okays Reorganization of Business -------------------------------------------------------- Court No. 15 of Buenos Aires' civil and commercial tribunal approved a petition for reorganization filed by Limpieza Express SA, according to a report from Argentine daily La Nacion. Trustee Estudio Acosta will verify claims from the Limpieza Express' creditors until April 24, 2007. After verification period, the trustee will submit the individual and general reports in court. Dates for submission of these reports are yet to be disclosed. The informative assembly will be held on Feb. 12, 2008. Creditors will vote to ratify the completed settlement plan during the said assembly. The city's Clerk No. 29 assists the court on the case. The debtor can be reached at: Limpieza Express SA Hipolito Yrigoyen 615 Buenos Aires, Argentina The trustee can be reached at: Estudio Acosta Tucuman 1545 Buenos Aires, Argentina MEDAM BA: Court Approves Reorganization Case -------------------------------------------- Medam B.A. S.R.L. will begin reorganization following the approval of its petition by a civil and commercial court in Buenos Aires. The opening of the reorganization will allow Medam B.A. to negotiate a settlement with its creditors in order to avoid a straight liquidation. Estudio Fizzani y Asociados Contadores Publicos will oversee the reorganization proceedings as the court-appointed trustee. The trustee will verify creditors' claims until March 29, 2007. The validated claims will be presented in court as individual reports on May 16, 2007. Estudio Fizzani is also required by the court to submit a general report essentially auditing Medam B.A.'s accounting and business records as well as summarizing important events pertaining to the reorganization. The report will be presented in court on June 29, 2007. An Informative Assembly, the final stage of a reorganization where the settlement proposal is presented to Medam B.A.'s creditors for approval, is scheduled on Dec. 13, 2007. The debtor can be reached at: Medam B.A. S.R.L. 25 de Mayo 293 Buenos Aires, Argentina The trustee can be reached at: Estudio Fizzani y Asociados Contadores Publicos Peron 1509 Buenos Aires, Argentina NOSWAR SA: Trustee Will Verify Proofs Of Claim Until May 3 ---------------------------------------------------------- Roberto Di Martino, the court-appointed trustee for Noswar SA's bankruptcy proceeding, will verify creditors' proofs of claim until May 3, 2007. Under the Argentine bankruptcy law, Mr. Martino is required to present the validated claims in court as individual reports. Court No. 3 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 Noswar SA and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Martino will also submit a general report that contains an audit of Noswar SA's accounting and banking records. The report submission dates have not been disclosed. Noswar SA was forced into bankruptcy at the behest of Cesar Kleiner Codero, whom it owes US$ 70,000. Clerk No. 5 assists the court in the proceeding. The debtor can be reached at: Noswar SA Florida 833/35 Buenos Aires, Argentina The trustee can be reached at: Roberto Di Martino Avenida Callao 449 Buenos Aires, Argentina OESTE VISION: Trustee Verifies Proofs of Claim Until April 17 ------------------------------------------------------------- Bernardino Kopcow, the court-appointed trustee for Oeste Vision S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until April 17, 2007. Mr. Kopcow will present the validated claims in court as individual reports. A court in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Oeste Vision 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 Oeste Vision's accounting and banking records will follow. Infobae did not say when the reports are due in court. Mr. Kopcow is also in charge of administering Oeste Vision's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Oeste Vision Carlos Pellegrini 1277 Buenos Aires, Argentina The trustee can be reached at: Bernardino Kopcow Lavalle 1527 Buenos Aires, Argentina SANTAX SRL: Court Approves Reorganization of Business ----------------------------------------------------- Court No. 2 of Buenos Aires' civil and commercial tribunal approved a petition for reorganization filed by Santax SRL, according to a report from Argentine daily La Nacion. Trustee Aldo Emilio Cambiasso will verify claims from the Santax's creditors until Feb. 28, 2007. After verification period, the trustee will submit the individual and general reports in court. Dates for submission of these reports are yet to be disclosed. The informative assembly will be held on Oct. 15, 2007. Creditors will vote to ratify the completed settlement plan during the said assembly. The city's Clerk No. 4 assists the court on the case. The debtor can be reached at: Santax SRL Mendoza 5875 Buenos Aires, Argentina The trustee can be reached at: Aldo Emilio Cambiasso Cerrito 1070 Buenos Aires, Argentina SECURITY CONSULTANTS: Trustee Verifies Claims Until March 16 ------------------------------------------------------------ Angel Miragaya, the court-appointed trustee for Security Consultants Office S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until March 16, 2007. Mr. Miragaya will present the validated claims in court as individual reports on March 30, 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 Security Consultants 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 Security Consultants' accounting and banking records will follow on May 3, 2007. Mr. Miragaya is also in charge of administering Security Consultants' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Angel Miragaya Parana 774 Buenos Aires, Argentina STARPET SA: Trustee Will Verify Proofs of Claims Until April 12 --------------------------------------------------------------- Magdalena de la Quintana, the court-appointed trustee for Starpet SA's bankruptcy proceeding, will verify creditors' proofs of claim until April 12, 2007. Under the Argentine bankruptcy law, Ms. Quintana 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 Starpet SA and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Ms. Quintana will also submit a general report that contains an audit of Starpet SA's accounting and banking records. The report submission dates have not been disclosed. Clerk No. 2 assists the court in the proceeding. The debtor can be reached at: Starpet SA Avenida Callao 322 Buenos Aires, Argentina The trustee can be reached at: Magdalena de la Quintana Cerrito 1136 Buenos Aires, Argentina VILLANES JONES: Proofs of Claim Verification Is Until April 16 -------------------------------------------------------------- Oscar Alberto Vertzman, the court-appointed trustee for Villanes Jones SRL's bankruptcy proceeding, will verify creditors' proofs of claim until April 16, 2007. Under the Argentine bankruptcy law, Mr. Vertzman is required to present the validated claims in court as individual reports. Court No. 21 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 Villanes Jones and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Ms. Vertzman will also submit a general report that contains an audit of Villanes Jones's accounting and banking records. The report submission dates have not been disclosed. Villanes Jones was forced into bankruptcy at the behest of Nuevo Banco Industrial de Azul SA, whom it owes US$27,712.50. Clerk No. 41 assists the court in the proceeding. The debtor can be reached at: Villanes Jones SRL Thames 15 Buenos Aires, Argentina The trustee can be reached at: Oscar Alberto Vertzman Bartolome Mitre 3120 Buenos Aires, Argentina ============= B E R M U D A ============= BRITISH AIRWAYS: Lowers London-Bermuda Roundtrip Fares by 30% ------------------------------------------------------------- British Airways has decreased Roundtrip World Traveller fares to London from Bermuda by 30% to US$352, Royal Gazette reports. British Airways told Royal Gazette that fares have been reduced during a special sale period. Tickets must be purchased by Feb. 23. According to Royal Gazette, prices start at US$352 and are valid until March 25. Tickets for roundtrip fares, which are available in Bermuda and US Dollars, must be bought three days in advance. They are non-refundable. Royal Gazette underscores that fares may be higher for other travel dates and beyond London destinations. Weekend -- Thursday to Sunday -- surcharge is at US$30 each way. Fares are yet to be approved. They do not include: -- insurance, -- security, -- fuel surcharges, -- airport fees, and -- taxes ranging from US$235. "The timing of this offer makes London a perfect opportunity for a quick getaway as restaurants, museums, theater and some of the best shops in the world are all in full swing," Marianne Wilcox, British Airways' customer service manager in Bermuda, told Royal Gazette. 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, 2007, 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. CONSTRUCTION INSURANCE: Proofs of Claim Filing Is Until March 22 ---------------------------------------------------------------- Construction Insurance Services Ltd.'s creditors are given until March 22, 2007, to prove their claims to Mike Morrison, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Daniel A. Hoffler, Sole Shareholder of Construction Insurance Services Ltd., decided on Feb. 5, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Mike Morrison KPMG Financial Advisory Services Ltd. Crown House, 4 Par-la-Ville Road Hamilton, Bermuda DEPOMED DEVELOPMENT: Proofs of Claim Filing Is Until Feb. 28 ------------------------------------------------------------ DepoMed Development Ltd.'s creditors are given until Feb. 28, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. DepoMed Development's shareholder decided on Feb. 9, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda GLOBAL CROSSING: Inks Pact with ESnet to Support IPV6 Exchange -------------------------------------------------------------- Global Crossing has established a new peering agreement with Energy Sciences Network. The new peering agreement will utilize dedicated interconnections to support the exchange of Internet Protocol version 6 traffic between ESnet's users via Global Crossing. "ESnet has long been a proponent of leading edge technology and was an early provider of native IPv6 services to its users," said Bill Johnston, department head of ESNet. "This new peering agreement with Global Crossing is another way we're forging the path of technology by increasing the exchange of IPv6 traffic among carriers and major networks." IPv6 is a new version of Internet Protocol, which is the designated replacement for today's Internet Protocol version 4. IPv6 is interoperable with IPv4 and provides a platform for new Internet. IPv6 is needed to support mixed levels of quality and security through a single Internet connection. It also allows for the exponential growth in Internet connectivity driven by new users in rapidly-developing economies as well as the deployment of new services and devices for all users. IPv6 peering works by exchanging IPv6 routes at the peering session and allowing IPv6 traffic to transit between the two Autonomous Systems. The peering agreement provides ESnet greater carrier diversity and traffic flow on their network. "IPv6 peering between Global Crossing and ESnet is one more step that will accelerate the adoption rate of this new protocol into federal agencies, increasing traffic flows to give scientists on ESnet's networks greater access to all the tremendous benefits that IPv6 offers," said Alan Rosenberg, vice president of federal solutions, Global Crossing. "IPv6 has much greater inherent security than IPv4 with the inclusion of authentication and encryption extension headers. When combined with the unprecedented security of Global Crossing's network, it's a powerful combination for ESnet or any other security-minded organization." In June 2005, the Office of Management and Budget mandated that all federal civilian agencies add IPv6 technology to their network backbones by June 2008. ESnet began utilizing IPv6 in 2000. Global Crossing has been pioneering the adoption of IPv6 since 2001 and has fully deployed IPv6 across its network. The company has maintained a leadership role influencing the evolution of the IPv6 standard through its involvement in industry organizations such as the American Council for Technology's Industry Advisory Council. Global Crossing was the first-and remains the only-global communications provider with IPv6 natively installed on all IP services access routers; the company is uniquely qualified to enable a transition to IPv6. About ESnet Managed and operated by the ESnet staff at Lawrence Berkeley National Laboratory, ESnet provides direct connections to all major DOE sites with high performance speeds, as well as fast interconnections to more than 100 other networks. Funded principally by DOE's Office of Science, ESnet services allow scientists to make effective use of unique DOE research facilities and computing resources, independent of time and geographic location. About Global Crossing Headquartered in Florham Park, New Jersey, Global Crossing Ltd. (NASDAQ: GLBC) -- 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 $25,511,000,000 in total assets and US$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. At Sept. 30, 2006, Global Crossing Ltd.'s balance sheet showed a US$131 million stockholders' deficit, compared to a US$173 million stockholders' deficit at Dec. 31, 2005. GREEN SHOE: Proofs of Claim Filing Is Until March 2, 2007 --------------------------------------------------------- Green Shoe Ltd.'s creditors are given until March 2, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Green Shoe's shareholders decided on Feb. 12, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda IMATION INSURANCE: Proofs of Claim Filing Is Until March 2, 2007 ---------------------------------------------------------------- Imation Insurance Ltd.'s creditors are given until March 2, 2007, to prove their claims to Ernest A. Morrison, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Imation Insurance's shareholder decided on Feb. 15, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Ernest A. Morrison Cox Hallett Wilkinson Milner House, 18 Parliament Street Hamilton, Bermuda SCOTTISH RE: Hovde Capital Opposes MassMutual-Cerberus Proposal --------------------------------------------------------------- Hovde Capital Advisors LLC will not vote in favor of the proposals relating to a proposed investment in Scottish Re Group Limited by MassMutual Capital Partners LLC and an affiliate of Cerberus Capital Management, L.P. at the upcoming Extraordinary General Meeting of Shareholders of Scottish Re later this month. In an earlier letter to Scottish Re's Board of Directors in November 2006, Hovde Capital stated that it would resist any sale of the company at a price that did not fairly reflect the true implied value of Scottish Re and would resist any capital raising initiative that dilutes existing shareholders at a depressed valuation through a sale of stock to one or more large institutional investors. "The concern we expressed in November, 2006, about the outcome of Scottish Re's evaluation of its strategic alternatives has materialized in a recommendation to shareholders of a proposal by MassMutual and Cerberus," Eric Hovde, Portfolio Manager of Hovde Capital, stated. "The Board of Scottish Re has recommended that the company's shareholders accept a deal that is far more dilutive and more grossly unfair to existing shareholders of Scottish Re than we ever could have imagined. When factoring in the extremely dilutive original issuance price of US$4.50 per share or lower, coupled with the 7.25% special preferred dividend attached to those convertible shares that will siphon off a significant amount of any future earnings, in our opinion, the ordinary common shareholders will be left with little or no value." Hovde Capital also pointed out that under the MassMutual- Cerberus proposal, possible adjustments to the conversion ratio for the convertible shares that they will receive could push the per share price into the US$2.00 range -- further diluting the common shareholders. Mr. Hovde said that the proposal recommended by the Board "flies in the face of the company's own independent third-party valuation performed by Tilinghast." On Sept. 11, 2006, Scottish Re reported that the Tilinghast valuation had concluded that the company's aggregate value was in excess of its last reported GAAP book value; according to the company's September 30th 10-Q, the most recently reported GAAP book value is US$19.13. Hovde Capital said it will vote against the MassMutual-Cerberus proposal because it believes the proposal treats existing shareholders inequitably and represents a significant and unacceptable level of dilution and because Hovde believes the Board of Scottish Re should be pursuing other courses of action that were clearly available to the company, including: -- a liquidation run-off, which Hovde Capital believes could capture more of the true imbedded value of the company for the existing shareholders that is not being recognized in the current proposal and will be lost by the existing shareholders; or -- a shareholder-backed rights offering in which all existing shareholders would have an opportunity to participate, such as the proposal made by Brandes Investment Partners, L.P. which included a "backstop" of the US$600 million in capital to be raised but which the Board of Scottish Re rejected. Mr. Hovde went on to say that Hovde Capital believes the recommendation of the Board of Scottish Re ignores the best interests of the company's existing shareholders and that "Hovde Capital cannot support such an egregious proposal." Hovde Capital is a registered investment advisor that advises a series of hedge funds focused on the financial services sector. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- provides reinsurance of life insurance, annuities and annuity- type products through its operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. * * * Moody's Investors Service continues to review the ratings of Scottish Re Group Ltd. with direction uncertain following the announcement by the company that it has entered into an agreement to sell a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Ratings under review include Scottish Re Group Limited's senior unsecured debt which is rated at Ba3 and preferred stock rated at B2. Standard & Poor's Ratings Services has also revised the CreditWatch status of its ratings on Scottish Re Group Ltd., Scottish Re's operating companies, and dependent unwrapped securitized deals to positive from negative. Scottish Re has a 'CCC' counterparty credit rating, and Scottish Re's operating companies have 'B+' counterparty credit and financial strength ratings. These ratings were placed on CreditWatch negative on July 31, when Scottish Re announced poor second-quarter results and that liquidity was tight. Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain on Rating Watch Negative following the announcement that SCT has entered into an agreement which will result in a new equity investment into the company of US$600 million. SCT's ratings were placed on Rating Watch Negative on July 31, due to concerns regarding the company's ability to repay US$115 million of senior convertible notes that are expected to be put to the company on Dec. 6. Ratings on Rating Watch Negative include the company's BB issuer default rating and the BB- rating on its 4.5% US$115 million senior convertible notes. A.M. Best Co. has downgraded the Financial Strength Rating to B from B+ and the issuer credit ratings to "bb+" from "bbb-" of the primary operating insurance subsidiaries of Scottish Re Group Limited. A.M. Best has also downgraded the ICR of Scottish Re to "b" from "bb-" and all of Scottish Re's debt ratings. All ratings remain under review with negative implications. SCOTTISH RE: Advisors Recommend 'Yes' Vote to MassMutual Deal ------------------------------------------------------------- Scottish Re Group Ltd. disclosed that Institutional Shareholder Services and Glass Lewis & Co., both independent proxy advisory firms, have recommended that Scottish Re shareholders vote for each of the proposals described in Scottish Re's proxy statement dated Jan. 19 relating to its proposed transaction with MassMutual Capital Partners LLC and certain affiliates of Cerberus Capital Management, L.P. Scottish Re's board of directors previously unanimously approved the proposed transaction with MassMutual Capital and Cerberus and recommends that shareholders vote for each of the proposals relating to the proposed transaction. In making its recommendation to Scottish Re's shareholders, ISS said, "there is no guarantee that the company will find an equal or superior offer from another party. Scottish Re appears to have completed a thorough bid process, as well as conducted financial due diligence on the feasibility of conducting a rights issuance or run-off scenario." "Based on our analysis and the unanimous support of the board, we believe that the approval of the Securities Purchase Agreement is in the interests of shareholders," The Glass Lewis report stated. "Accordingly, we believe that shareholders should vote FOR the proposal." "We are pleased that ISS and Glass Lewis have advised our shareholders to vote in favor of the proposed transaction with MassMutual Capital and Cerberus, which will stabilize Scottish Re, provide long-term liquidity benefits and offers the best opportunity to deliver long-term value to our shareholders," Paul Goldean, chief executive of Scottish Re, said. On Nov. 27, 2006, Scottish Re announced it had entered into an agreement whereby MassMutual Capital and Cerberus would each invest US$300 million into Scottish Re, resulting in a total new equity investment of US$600 million. Under the terms of the agreement, MassMutual Capital and Cerberus will purchase a total of 1,000,000 newly issued convertible preferred shares of Scottish Re, which may be converted into 150,000,000 ordinary shares of Scottish Re at any time, subject to certain adjustments, representing a 68.7% ordinary share ownership on a fully diluted basis at the time of investment. The transaction has cleared U.S. antitrust review, but remains subject to additional regulatory approvals, including approvals by certain insurance regulators, as well as various state and foreign regulatory authorities and self-regulatory organizations, and approval by the holders of 66-2/3% of Scottish Re's outstanding ordinary shares entitled to vote at the extraordinary general meeting of shareholders that will be held in Bermuda on Feb. 23, 2007. All shareholders of record are urged to return their proxy card or to vote by following the instructions for phone or Internet voting that appear on the proxy card. If a shareholder does not vote, the effect will be the same as if he voted against the transaction. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- provides reinsurance of life insurance, annuities and annuity- type products through its operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * Moody's Investors Service continues to review the ratings of Scottish Re Group Ltd. with direction uncertain following the announcement by the company that it has entered into an agreement to sell a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Ratings under review include Scottish Re Group Limited's senior unsecured debt which is rated at Ba3 and preferred stock rated at B2. Standard & Poor's Ratings Services has also revised the CreditWatch status of its ratings on Scottish Re Group Ltd., Scottish Re's operating companies, and dependent unwrapped securitized deals to positive from negative. Scottish Re has a 'CCC' counterparty credit rating, and Scottish Re's operating companies have 'B+' counterparty credit and financial strength ratings. These ratings were placed on CreditWatch negative on July 31, when Scottish Re announced poor second-quarter results and that liquidity was tight. Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain on Rating Watch Negative following the announcement that SCT has entered into an agreement which will result in a new equity investment into the company of US$600 million. SCT's ratings were placed on Rating Watch Negative on July 31, due to concerns regarding the company's ability to repay US$115 million of senior convertible notes that are expected to be put to the company on Dec. 6. Ratings on Rating Watch Negative include the company's BB issuer default rating and the BB- rating on its 4.5% US$115 million senior convertible notes. A.M. Best Co. has downgraded the Financial Strength Rating to B from B+ and the issuer credit ratings to "bb+" from "bbb-" of the primary operating insurance subsidiaries of Scottish Re Group Limited. A.M. Best has also downgraded the ICR of Scottish Re to "b" from "bb-" and all of Scottish Re's debt ratings. All ratings remain under review with negative implications. SCOTTISH RE: Notifies Holders of 5.875% Hybrid Capital Units ------------------------------------------------------------ Scottish Re Group Limited reiterated its notification to all holders of the company's 5.875% Hybrid Capital Units that it is unable to satisfy certain conditions precedent to the Remarketing that are contained in the Remarketing Agreement, as defined in the Purchase Contract Agreement Scottish Re entered into with The Bank of New York on Dec. 17, 2003. As a result, Scottish Re's Convertible Preferred Shares will not be remarketed. The Company caused a notice to be forwarded to all holders of the HyCUs on Jan. 25, 2007, outlining this event, and filed a Form 8-K with the Securities and Exchange Commission on Jan. 26, 2007. Scottish Re Hybrid Capital Unit holders should note the following dates: May 18, 2007 * Last day for Holders of Convertible Preferred Shares to give notice of conversion May 21, 2007 * Mandatory Redemption Date of Convertible Preferred Shares In the case of HyCU Holders who elect not to settle in cash, the company will, in accordance with applicable law and as contemplated by the Purchase Contract Agreement, exercise its rights as secured party to foreclose on its security interest in the Convertible Preferred Shares in satisfaction of such holder's obligation to purchase Ordinary Shares under the Purchase Contract Agreement, and will deliver to such holders Ordinary Shares pursuant to the Purchase Contract Agreement. About Scottish Re Group Scottish Re Group Limited -- http://www.scottishre.com/-- provides reinsurance of life insurance, annuities and annuity- type products through its operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. * * * Moody's Investors Service continues to review the ratings of Scottish Re Group Ltd. with direction uncertain following the announcement by the company that it has entered into an agreement to sell a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Ratings under review include Scottish Re Group Limited's senior unsecured debt which is rated at Ba3 and preferred stock rated at B2. Standard & Poor's Ratings Services has also revised the CreditWatch status of its ratings on Scottish Re Group Ltd., Scottish Re's operating companies, and dependent unwrapped securitized deals to positive from negative. Scottish Re has a 'CCC' counterparty credit rating, and Scottish Re's operating companies have 'B+' counterparty credit and financial strength ratings. These ratings were placed on CreditWatch negative on July 31, when Scottish Re announced poor second-quarter results and that liquidity was tight. Fitch Ratings added that Scottish Re Group Ltd.'s ratings remain on Rating Watch Negative following the announcement that SCT has entered into an agreement which will result in a new equity investment into the company of US$600 million. SCT's ratings were placed on Rating Watch Negative on July 31, due to concerns regarding the company's ability to repay US$115 million of senior convertible notes that are expected to be put to the company on Dec. 6. Ratings on Rating Watch Negative include the company's BB issuer default rating and the BB- rating on its 4.5% US$115 million senior convertible notes. A.M. Best Co. has downgraded the Financial Strength Rating to B from B+ and the issuer credit ratings to "bb+" from "bbb-" of the primary operating insurance subsidiaries of Scottish Re Group Limited. A.M. Best has also downgraded the ICR of Scottish Re to "b" from "bb-" and all of Scottish Re's debt ratings. All ratings remain under review with negative implications. SEA CONTAINERS: Services Panel Taps Kroll as Financial Advisor -------------------------------------------------------------- The Official Committee of Unsecured Creditors in Sea Containers Services Ltd. and its debtor-affiliates' Chapter 11 cases asks authority from the U.S. Bankruptcy Court for the District of Delaware to retain Kroll Ltd. as its financial advisor, nunc pro tunc to Oct. 26, 2006, pursuant to the terms and conditions of a letter agreement between the parties dated Feb. 8, 2007. According to Jane Kathryn Fryer, a director at Aspen Trustees Limited, Kroll has significant financial advisory skills and 7expertise in the pensions covenant field, among other things. Kroll has advised the trustees of the Trinity Retirement Benefit Scheme, The Rank Group Plc, Mowlem Plc, Alliance Unichem Plc, Gala Group and Coral Group, Capita Group Plc, Galliford Try Plc, and HCA International Limited. In addition, the firm has significant experience in cross-border restructurings and has been involved as administrator of the Federal-Mogul U.K. Group and Collins & Aikman. Kroll has acted to protect and advance the interests of the Official Services Committee in the Debtors' bankruptcy cases since its formation on Oct. 26, 2006. Ms. Fryer notes that Kroll's services have materially benefited the unsecured creditors of Sea Containers Services, and have served to protect their rights until Kroll's formal retention. As a result of its services, Kroll has become directly familiar with the facts and circumstances surrounding Sea Containers Services and the issues that the Official Services Committee will face during the bankruptcy cases. Kroll and its professionals are uniquely qualified to advise the Official Services Committee, Ms. Fryer relates. As the Official Services Committee's financial advisor, Kroll will: a. evaluate the assets and liabilities of the Debtors and their affiliates; b. analyze and review the financial and operating statements of the Debtors and their affiliates; c. analyze the business plans and forecasts of the Debtors and their affiliates; d. provide specific valuation or other financial analysis as the Official Services Committee may require; e. help with the claim resolution process and related distributions; f. provide consideration of and advice on financial and commercial aspects of any plan of reorganization proposed as part of the Debtors' bankruptcy cases, including preparation, analysis and explanation of the plan to the Official Services Committee; g. attend meetings of the Official Services Committee and their advisors; h. assist as required with negotiations among the various creditors and stakeholders in the bankruptcy cases; i. coordinate Kroll's work with that of other professional advisors and assist the Official Services Committee in the understanding and interpretation of the work; j. coordinate regular communications among the Official Services Committee, its professionals, and other parties as required, to discuss ongoing matters; k. provide accounting advice and expertise to the Official Services Committee as required; and 1. any other matters for which the Official Services Committee seeks the financial advisory services of Kroll and for which Kroll agrees to provide. Kroll will be paid for its services based on its standard hourly rates: Designation Hourly Rate ----------- ----------- Partner US$550 Director US$425 Senior Associate US$400 Other Senior Professional US$200 - US$295 Other Staff US$75 - US$150 The firm will also be reimbursed for necessary expenses incurred. Ms. Fryer discloses that the Kroll Agreement provides for a limitation of liability, in certain circumstances, for Kroll in connection with its engagement. The terms and conditions of the firm's engagement will be governed and interpreted in accordance with the laws of England and Wales and, as applicable, the Bankruptcy Code. Gary Squires, Esq., a partner in the corporate advisory and restructuring group at Kroll, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Kroll does not represent or hold an interest adverse to the Debtors or any other party-in- interest in the matters regarding its engagement, Mr. Squires adds. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA, SCRB) -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, 2006, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Debtors' exclusive period to file a chapter 11 plan will expire on June 12, 2007. SEA CONTAINERS: Services Panel Selects Willkie Farr as Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors in Sea Containers Services, Ltd., and its debtor-affiliates' chapter 11 cases asks authority from the U.S. Bankruptcy Court for the District of Delaware to retain Willkie Farr & Gallagher LLP as its counsel, nunc pro tunc to Jan. 22, 2007. The Official Services Committee represents the interests of Sea Containers 1983 Pension Scheme and Sea Containers 1990 Pension Scheme in the Debtors' bankruptcy cases. Jane Kathryn Fryer, a director at Aspen Trustees Limited, says WF&G's attorneys have extensive experience and knowledge in the fields of debtors' and creditors' rights, debt restructuring and corporate reorganizations, tax, real estate, employee benefits, and commercial litigation, among others. WF&G's Business Reorganization and Restructuring Department regularly represents debtors, official and unofficial committees, and groups of creditors or equity security holders in Chapter 11 cases and financial restructurings. Ms. Fryer adds that the Official Services Committee engaged WF&G as its counsel on Jan. 22, 2007, and has since acted to protect and advance the interests of the Committee. The firm's attorneys have conducted, and continue to conduct, due diligence in conjunction with its engagement. WF&G's services have materially benefited the Official Services Committee and have served to protect its rights. Hence, WF&G is well qualified to represent the Official Services Committee's interests in the Debtors' bankruptcy cases. Among other things, WF&G will: a. provide legal advice with respect to the Official Services Committee's rights, powers, claims, and duties in the bankruptcy cases; b. represent the Services Committee at all negotiations, hearings, and other proceedings; c. advise and assist the Services Committee in discussions with the Debtors and other parties-in-interest, as well as professionals retained by any of the parties, regarding the overall administration of the Chapter 11 cases; d. assist with the Services Committee's investigation of the assets, liabilities, and financial condition of the Debtor, and of the operations of the Debtors' businesses; e. assist and advise the Services Committee with respect to its communications with other creditors; f. review and analyze on behalf of the Services Committee all pleadings, orders, statements of operations, schedules, and other legal documents; g. prepare on behalf of the Services Committee all pleadings, motions, orders, reports, and other papers in furtherance of its interests and objectives; and h. perform all other legal services for the Services Committee that may be necessary and proper. The firm will be paid for its services based on its standard hourly rates, plus reimbursement of actual and necessary expenses incurred by WF&G. Designation Hourly Rate ----------- ----------- Attorneys US$265 - US$885 Paralegals US$150 - US$235 The current hourly rates of the professionals that are likely to be engaged in the Debtors' Chapter 11 cases are: Professionals Designation Hourly Rate ------------- ----------- ----------- Marc Abrams, Esq. Partner US$885 Michael J. Kelly, Esq. Partner US$725 Casey Boyle, Esq. Associate US$460 Seth Kleinman, Esq. Law Clerk US$260 Marc Abrams, Esq., a member of WF&G, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The members and associates of WF&G do not represent or hold an interest adverse to the Debtors, their creditors, or any other party-in-interest in the matters regarding WF&G's engagement, Mr. Abrams adds. Mr. Abrams can be contacted at: Marc Abrams, Esq. Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, NY 10019-6099 Tel: (212) 728-8000 Fax: (212) 728-8111 http://www.willkie.com/ About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA, SCRB) -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, 2006, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they reported US$1.7 billion in total assets and US$1.6 billion in total debts. (Sea Containers Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Debtors' exclusive period to file a chapter 11 plan will expire on June 12, 2007. =========== B R A Z I L =========== ALCATEL-LUCENT: Inks Network Upgrade Deal with OJSC VimpelCom ------------------------------------------------------------- OJSC Vimpel-Communications has selected Alcatel-Lucent to upgrade and enhance the operator's wireless network with the latest generation of Alcatel-Lucent's GSM/EDGE radio platform, which is based on the industry most advanced hardware architecture. With its compact new design and high performance, this platform will leverage VimpelCom's existing radio access network investments while reducing operating expenses. Following intensive and successful testing carried out jointly with VimpelCom, the new platform is planned for commercial deployment for the first time throughout Russia and the Commonwealth of Independent States on the operator's existing network built on Alcatel-Lucent systems. Alcatel-Lucent's 9130 Base Station Controller/Multi-BSC Fast Packet Server is a new BSS (Base Station Sub-System) controller platform that supports the ever-increasing market-driven volume of voice and data traffic. This state-of-the art equipment based on the field-proven Advanced Telecom Computing Architecture will enable VimpelCom to create a more centralized and optimized GSM/EDGE network architecture, thereby bringing significant cost savings in network deployments and extensions. "Rapidly evolving market conditions combined with the ongoing introduction of innovative subscriber services and applications dictate the need for a high degree of flexibility and scalability within network infrastructures," said Sergey Avdeev, VimpelCom executive vice-president of business development in the CIS and VimpelCom CTO. "We are confident that with Alcatel- Lucent's 9130 BSC/MFS we are geared for future network evolutions, including full IP connectivity." "This is the first commercial deployment of Alcatel-Lucent's 9130 BSC/MFS, and we are very proud of that and of being selected once again by VimpelCom to provide the technology needed to further develop its network," said Johan Vanderplaetse, President of Alcatel-Lucent's activities in CIS. "This further demonstrates Alcatel-Lucent's commitment in delivering the most advanced GSM/EDGE solution for network expansion. As VimpelCom's network grows and evolves, the requirement for more base station controllers will increase, requiring state-of-the art equipment that can deliver the new services and IP-based applications that VimpelCom's customers will expect." Mr. Vanderplaetse added that Alcatel-Lucent's solution will prepare VimpelCom for a next-generation network architecture that will ease the introduction of new advanced services while decreasing operating expenses and optimizing the ability of their network to accommodate growth. Alcatel-Lucent has more than 170 GSM/EDGE customers in more than 90 countries, making it a leading provider of mobile communications solutions. Alcatel-Lucent is boosting its GSM/EDGE portfolio by introducing the field-proven ATCA-based BSC Evolution associated with the powerful TWIN Transceiver module About VimpelCom Headquartered in Moscow, Russia, OJSC Vimpel-Communications (NYSE: VIP) -- http://www.vimpelcom.com/-- provides mobile telecommunications services in Russia and Kazakhstan with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The Company operates under the 'Beeline' brand in Russia and Kazakhstan. In addition, VimpelCom is continuing to use 'K- mobile' and 'EXCESS' brands in Kazakhstan. The group wholly owns Mobitel in Georgia. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As of Feb. 7, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB- rating. It's Short-Term Corporate Credit rating stands at B. Moody's, on the other hand, put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. BANCO CRUZEIRO: Will Launch IPO This Year ----------------------------------------- Banco Cruzeiro do Sul filed a request with Securities regulator CVM to launch an initial public offering, Business News Americas reports. According to the news, the Bank will follow Banco Pine as the second midsize bank to list on the Sao Paulo stock exchange Bovespa. UBS Pactual is reported to coordinate the offer. However, the total number of shares to be offered is undetermined. Midsize banks BicBanco and Panamericano were likely speculated to launch IPOs this year. Banco Cruzeiro do Sul is headquartered in Sao Paulo, Brazil and had BRL2.6 billion (US$880 million) in total assets and BRL162.6 million (US$84.6 million) in shareholders' equity as of June 2006. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 4, 2006, Moody's Investors Service upgraded Banco Cruzeiro do Sul SA's long-term foreign currency deposits to Ba3 from Ba1. Moody's said the rating outlook is stable. BANCO DO BRASIL: Brasilcap Raises 2006 Billing to BRL1.76 Bil. -------------------------------------------------------------- Brasilcap, Banco do Brasil's savings bond unit, has last year's billing increased by 2.3% to BRL1.76 billion or US$841 million compared to 2005, Business News Americas reports. Insurance federation Fenaseg diclosed the technical reserves rose 1.2% to BRL2.79 billion. In terms of contributions, Brasilcap leads the Brazilian savings bond market with a 25% market share, BNAmericas says. Citing insurance regulator Susep, the report shows that last year's savings bond market tallied BRL7.1 billion in contributions, up to 2.9% on 2005 results. Inflation came to 3.14% while reserves climbed 6.6% to BRL11.2 billion in 2006. Susep anticipates billing in the segment to go up 4.7% and reserves to rise 7.7% for this year compared to 2006. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and over 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings upgraded Banco do Brasil S.A.'s Support rating to '3' from '4', and affirmed its other ratings: -- Foreign currency Issuer Default Rating (IDR) at 'BB+'; -- Short-term foreign currency at 'B'; -- Local currency IDR at 'BB+'; -- Short-term local currency at 'B'; -- Individual rating at 'C/D'; -- National Long-term rating at 'AA(bra)'; and -- Short-term rating at 'F1+(bra)'. BANCO NACIONAL: Has US$477 Million for Digital TV Until 2013 ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social has allocated BRL1 billion or US$477 million to implement digital TV in Brazil until 2013, Business News Americas reports. BNamericas relates that President Luiz Inacio Lula da Silva signed a deal in Japan at the end of June 2006. He selected the country's digital TV standard over competing standards. The first commercial transmission will be assigned for this December. The BNDES program allows broadcasters to modernize their equipment to: -- transmit digital TV signals, -- assist manufactures in developing suitable equipment, and -- encourage national content producers. BNamericas states that the bank would allocate another BRL14.5 million to develop the first Brazilian semiconducter chip to be used in digital TV transmission. 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 to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. BANCO ITAU: Posts BRL6.20 Billion Net Profits in 2006 ----------------------------------------------------- Banco Itau Holding Financiera SA's recurring net profits increased 13.8% to BRL6.20 billion in 2006, compared with BRL5.44 billion in 2005, Business News Americas reports. BNamericas relates that Banco Itau's return on equity dropped to 32.6% in 2006, from 36.6% in 2005. According BNamericas, Banco Itau's net profits -- including goodwill amortization from last year's acquisitions of BankBoston operations in Brazil, Chile and Uruguay from Bank of America -- decreased 17.9% in 2006 to BRL4.31 billion, compared with 2005. Banco Itau Head of Accounting Silvio de Carvalho told reporters that Banco Itau took a BRL1.76-billion charge in the third quarter of 2006 and a BRL408-million charge in the fourth quarter of 2006 from the BankBoston acquisitions. Banco Itau earned BRL178 million after taxes in the fourth quarter of 2006 from the sale of the brand name of local credit card issuer Credicard to Citigroup, BNamericas notes, citing Mr. Carvalho. BNamericas emphasizes that Banco Itau's recurring income in the fourth quarter 2006 increased 14.2% to BRL1.63 billion, compared with the same quarter in 2005. Return on equity in the fourth quarter 2006 dropped to 28.8%, from 37.0% in the fourth quarter 2005 and 32.5% in the third quarter 2006. The report says that including the BankBoston write-off, fourth quarter 2006 earnings decreased 10.2% on the fourth quarter 2005. Return on equity declined to 22.6%. BNamericas emphasizes that Banco Itau's total lending, including BankBoston Brazil operations, increased 38.2% to BRL93.6 billion in 2006. Retail lending grew 42.2% to BRL40.5 billion, while commercial lending rose 36.0% BRL47.3 billion. Banco Itau's vehicle-financing operations increased 64.7% to BRL18.0 billion in 2006, according to BNamericas. The bank's personal loans grew 28.7% to BRL13.3 billion, while credit card operations rose 27.3% to BRL9.19 billion. The report underscores that Banco Itau's loans to small and medium-sized enterprises and microenterprises increased 59.9% to BRL20.4 billion, compared to 2005. Meanwhile, loans to large corporations rose 22.1% to BRL26.8 billion. Lending -- excluding BankBoston BankBoston Brazil -- increased 24.7% to BRL84.5 billion. Retail lending grew 37.5% to BRL39.2 billion, while commercial lending rose 15.9% to BRL40.3 billion. Banco Itau's loan-loss provision increased 80.9% to BRL7.43 billion in 2006, the report says. Banco Itau Chief Executive Officer Roberto Setubal told BNamericas that the non-performing loan (NPL) ratio for loans overdue more than 60 days increased to 5.3% from roughly 4% in 2005. The NPL ratio came to 8.3% for retail loans and 2.2% for commercial loans. Mr. Setubal commented to BNamericas, "The NPL ratio became considerably worse with our change in the mix of products and customers, but for 2007 we expect a slight reduction in the default rate. We've also become more selective in the process of granting loans." Banco Itau is considering expanding in the payroll and retirement loan segment, BNamericas says, citing Mr. Setubal. When asked by BNamericas on whether Banco Itau was interested in acquiring Banco BMG, Mr. Setubal said, "If they want to sell, we have right of first refusal." Mr. Setubal told BNamericas that Banco Itau will make a record amount available for home loans in 2007, attending to growing demand. Mr. Setubal commented to BNamericas, "Our home loan portfolio is still small, a bit more than BRL2.000 billion. Even if it grows 30, 40 or 50%, it's starting from a small base." Banco Itau's home loan portfolio could reach up to BRL30.0 billion in the next 5-10 years, BNamericas says, citing Mr. Setubal. Banco Itau's total assets increased 37.6% to BRL210 billion in 2006, compared with 2005, BNamericas states. Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA (Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of these ratings of Banco Itau Holding Financiera SA: -- foreign currency IDR at 'BB+'; outlook to positive from stable; -- local currency IDR at 'BBB-'; outlook to positive from stable; and -- national Long-term rating at 'AA+(bra)'; outlook to positive from stable. BANCO ITAU: Itautec Reports BRL50 Million Net Profits in 2006 ------------------------------------------------------------- Itautec, Banco Itau Holding Financiera SA's division that makes personal computers, said in a statement that its net profits increased 7.66% to BRL50 million in 2006, compared to BRL46.5 million in 2005. Business News Americas relates that Itautec's gross revenues rose to BRL1.64 billion in 2006, compared to BRL1.69 billion in 2005. Itautec's operating expenses declined 7.8% to BRL251 million in 2006, from 2005, BNamericas notes. Itautec's Ebitda was BRL69.9 million in 2006. Its Ebitda margin was 4.8%, BNamericas states. Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA (Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of these ratings of Banco Itau Holding Financiera SA: -- foreign currency IDR at 'BB+'; outlook to positive from stable; -- local currency IDR at 'BBB-'; outlook to positive from stable; and -- national Long-term rating at 'AA+(bra)'; outlook to positive from stable. COMPANHIA DE SANEAMENTO: Prioritizing River Tiete Cleanup --------------------------------------------------------- Companhia de Saneamento Basico do Estado de Sao Paulo President Gesner de Oliveira told local paper Gazeta Mercantil that the firm's priorities in the first half of 2007 include the cleanup of the river Tiete. Business News Americas relates that Tiete is one of the most polluted waterways in Brazil. It receives a high amount of untreated sewage from the slums lining the riverbanks. The cleanup of the river started in 2002 and will conclude in July 2007. Mr. de Oliveira told BNamericas that in the second stage of the project, about US$400 million was invested in: -- construction of 960 kilometers of a new wastewater collection network, -- connection of 290,000 homes to the system, -- construction of 110 kilometers of main collection pipelines, and -- construction of 65 pumping stations. "Another priority will be the integrated work with the councils, with society and other government organizations on slum urbanization programs and tributary recuperation," Mr. de Oliveira told BNamericas. Companhia de Saneamento Basico do Estado de Sao Paulo is one of the largest water and sewage service providers in the world based on the population served in 2005. It operates water and sewage systems in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2006, Standard & Poor's Ratings Services has raised its Brazilian national-scale corporate credit rating on Companhia de Saneamento Basico do Estado de Sao Paulo to 'brA+' from 'brA'. At the same time, it affirmed the company's global-scale ratings at 'BB-'. S&P said the outlook is stable. PETROLEO BRASILEIRO: Earns BRL25.9 Million in 2006 Fiscal Year -------------------------------------------------------------- Petroleo Brasileiro SA aka Petrobras announced its fourth quarter and full year 2006 financial and operational results. In 2006, Petrobras had a net profit of BRL25.9 billion, surpassing the record achieved in 2005 due, mainly, to increased oil and byproduct production and, also, because of the domestic and foreign market price levels. This result was the biggest profit growth (in dollars) among the sector' s major corporations. In this regard, the BRL5.2-billion fourth quarter net profit reflected the commodity's variations in the international market, which decreased 14%, on average, compared to the third quarter. The BRL52.1-billion EBITDA secured resources for investments, improved the financial profile, and ensured dividend payment. Thus, the Board of Directors proposed total dividends of BRL7.9 billion to the General Shareholder Assembly (scheduled to be held on April 2). This total includes BRL6.4 billion in interest on self-owned capital, of which BRL4.4 billion were made available on Jan. 15, 2007. Investments prioritize production capacity -- Of the BRL33.7 billion that were invested (31% more than in 2005), BRL15.3 billion (45% of the total) were used to boost domestic production capacity. The company's internationalization strategy led to a 127% increase in the investments made in the International area, the highlight of which was the acquisition of the Pasadena refinery, for US$370 million. Sales rise The sales volume in the domestic market was 3% above 2005's mark, particularly as a result of the larger volumes of gasoline (+7%), naphtha (+5%), and natural gas (+7%) sales. Overseas, exports grew 11%, and international sales spiked 31%, due, mainly, to the heightened offshore operations (the objective of which is to seize trade opportunities abroad) and to the inclusion of the sales made by companies that were purchased during 2006. This rise wasn't even bigger because of the reduced sales in Venezuela, due to the declining production in Angola, and because the main fields on the Gulf of Mexico were shut down after hurricanes Rita and Katrina. Lifting and Refining Costs In Brazil, the unit lifting cost, not including government participations, rose 15% in Dollars compared to 2005. This was caused by the higher drill expenses (tied to international quotes) and staff (hiring and Collective Labor Agreement), as well as by the FPSO -- Capixaba and the P-34 kicking their operations off, with higher initial unit costs that are partially offset by the higher oil & gas lifting rates. Figuring government participation in, lifting costs rose 20% since, in addition to the higher operation costs, government participations keep up with the international oil quotes. Increased productivity and a few fields going online also raised royalties and special participations. Internationally, lifting costs surged 16% in 2006 because of the cost inflation and of the higher costs in Argentina and Angola. The unit refining cost grew 21% in Brazil, in Dollars (8% in Reais) due to the greater complexity that resulted from the investments made to process heavy oil and to improve fuel quality, in addition to the higher labor costs derived from the Collective Labor Agreement. Abroad, the average international refining cost surged 33% due to the inclusion of the Pasadena Refinery. If this unit's costs were not figured, the increase would be 16% due to the operations in Argentina. Another positive year for Petrobras in the stock market was an excellent year for Petrobras' stocks. In spite of oil quote volatility, the ordinary stocks valued 32%, while the preferred ones rose 34%, in line with Ibovespa's performance (+33%). In New York, due to the influence of the exchange rate, Petrobras' ADRs performed even better, topping at 44.51% (ordinary) and 44.10% (preferred). Petrobras closed the year as the most negotiated non-American company at the New York Stock Exchange. The total financial result registered by its ADRs was the highest among foreign companies. In late 2006, Petrobras' market value topped at BRL230 billion, 33% more than last year's mark. In December, Petrobras reached a monthly average of BRL103 billion, an unprecedented achievement that ranks it among the world's most valuable corporations. New Decrease in Indebtedness In spite of its major investments, Petrobras' net indebtedness decreased to BRL18.8 billion, 24% less than in late 2005, because of the strong operational cash flow and due to the appreciation of the Real, considering that 75% of the company's long -term debt is indexed based on the Dollar. As Brazil's biggest taxpayer, Petrobras paid BRL50.9 billion in taxes, fees and social contributions, 11% more than in 2005, and BRL16.1 billion in participations and royalties, up 17% from last year and adding up to BRL67.1 billion, a 13% increase. Petrobras' contribution increased 6% abroad, to BRL3.8 billion. Government participations in Brazil grew 17%, a reflex of the higher reference price. Government participations surged 67% abroad, particularly as a result of regulation changes made in Venezuela and Bolivia. 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. PETROLEO BRASILEIRO: Sees No Impact on NatGas Deal, Analyst Says ---------------------------------------------------------------- The price increase of Bolivian natural gas won't raise any impact on Petroleo Brasileiro SA aka Petrobras, analysts quoted by Bernd Radowitz at Dow Jones Newswire. Citing oil analyst Marc McCarthy, Dow Jones relates that Petrobras was able to keep gas prices the same. The agreement resulted to a face-saving deal for Bolivian President Evo Morales. Mr. Morales encountered various protests across Bolivia and the deal might help convince political opposition that he is able to secure better deals for Bolivian resources abroad. As reported in the Troubled Company Reporter-Latin America on Feb. 16, 2007, Mr. Morales and Brazilian President Luiz Inacio Lula da Silva reached an agreement regarding the price Petrobras will pay for Bolivia's natural gas but didn't disclosed how much prices would go up. The Brazilian stated its spending could be up 3.5% to 4% from last year, while the Bolivians expected an extra US$144 million revenues this year. According to Banco Safra oil analyst Victor Martins, those amounts are insignificant for Petrobras even if Bolivians' expectations were right. Dow Jones reports that while the gas price amount is still unclear, it appears that it would fall well short of the US$5 per million British thermal units, or mBTUs, a fair price that Mr. Morales hoped for. Petrobras reportedly pays US$3.75 per mBTU in Bolivia. Georgetown University Brazilianist Bryan McCann considered the negotiation as very advantageous for Bolivia, which includes a steep hike of gas price supplied to a thermoelectric power plant in the western Brazilian city of Cuiaba, to US$4.20 per million BTU from US$1.09, Dow Jones relates. Dow Jones adds that Bolivia supplies about 1 million cubic meter of gas per day to the Cuiaba plant, compared to sales of about 24 mcm/d to Petrobras. 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. PETROLEO BRASILEIRO: Will Launch Four Oil Rigs This Year -------------------------------------------------------- A manager of Brazil's state-owned oil firm Petroleo Brasileiro SA told Dow Jones Newswires that the firm will launch two oil rigs in May, and two other large platforms in September. According to Dow Jones, the four rigs will have a combined production capacity of 480,000 barrels of oil daily. Eduardo Molinari, Petroleo Brasileiro's coordinator for strategy and portfolio management of exploration and production, said in a Web cast that a small platform that will produce 20,000 barrels per day from the Piranema field off the coast of northeastern Sergipe will be on stream in May. Petroleo Brasileiro initially planned to launch the Piranema rig in April, the report says. Dow Jones underscores that Petroleo will begin by the end of May production at its floating production storage and offloading Cidade de Vitoria platform, which is expected to add 100,000 barrels per day to production from the Golfinho light oil field. Petroleo Brasileiro will bring the P-52 and P-54 new rigs on stream in September. The rigs will each have a capacity to pump 180,000 barrels of oil per day from the Roncador field, Mr. Molinari told Dow Jones. 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. ZIM CORP: Posts US$507,117 Net Loss in Quarter Ended December 31 ---------------------------------------------------------------- ZIM Corporation reported a US$507,117 net loss on US$517,969 of revenues for the third quarter of fiscal 2007 ended Dec. 31, 2006, compared with a US$2.4 million net loss on US$789,844 of revenues for the same period ended Dec. 31, 2005. The decrease in revenues is primarily attributable to the decline in revenues from the company's SMS aggregation services caused by the continued saturation of the aggregation market. "Consistent with prior quarters, our revenues continued to decrease as a direct result of our decision to move away from the low margin SMS aggregation services market. We continue to be encouraged with the opportunities available to ZIM within the Internet TV industry." said ZIM president and chief executive officer, Michael Cowpland. At Dec. 31, 2006, the company's balance sheet showed US$1.5 million in total assets, US$939,256 in total liabilities, and US$567,151 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?19f5 ZIM had cash of US$342,973 as at Dec. 31, 2006, with no outstanding amounts due to shareholders or financial institutions. Going Concern Doubt As reported in the Troubled Company Reporter on July 5, 2006, Raymond Chabot Grant Thornton LLP expressed substantial doubt about ZIM Corporation's ability to continue as a going concern after auditing the company's financial statements for the fiscal years ended March 31, 2006, and 2005. The auditing firm pointed to the company's net loss of US$3,388,493 for the year and negative cash flows from operations during each of the last five years. About ZIM Corporation Ottawa, Canada-based ZIM Corporation (OTCBB: ZIMCF) -- http://www.zim.biz/ -- is a mobile entertainment and Internet TV service provider. Through its global infrastructure, ZIM provides publishing and licensing services for market-leading mobile content and for peer-to-peer Internet TV broadcasting. The company has offices in Brazil and London. =========================== C A Y M A N I S L A N D S =========================== CCP ALLIED: Final Shareholders Meeting Is Set for March 9 --------------------------------------------------------- CCP Allied, LDC, will hold its final shareholders meeting on March 9, 2007, at 9:00 a.m., at the company's registered office. These agendas will be followed 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 will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Ltd. Walker House, 87 Mary Street P.O. Box 908 Grand Cayman KY1-9002 Cayman Islands KEYNES LEVERAGED: Final Shareholders Meeting Is Set for March 9 --------------------------------------------------------------- The Keynes Leveraged Fund, Ltd., will hold its final shareholders meeting on March 9, 2007, at 9:00 a.m., at: Harbour Place, 4th Floor George Town, Grand Cayman Cayman Islands These agendas will be followed 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 will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: John Sutlic Thiry Gordon Close Brothers (Cayman) Ltd. Fourth Floor, Harbour Place P.O. Box 1034 George Town, Grand Cayman Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 KEYNES LEVERAGED MASTER: Final Shareholders Meeting on March 9 -------------------------------------------------------------- The Keynes Leveraged Master Fund, Ltd. will hold its final shareholders meeting on March 9, 2007, at 9:00 a.m., at: Harbour Place, 4th Floor George Town, Grand Cayman Cayman Islands These agendas will be followed 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 will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: John Sutlic Thiry Gordon Close Brothers (Cayman) Ltd. Fourth Floor, Harbour Place P.O. Box 1034 George Town, Grand Cayman Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 KEYNES MASTER: Final Shareholders Meeting Is Set for March 9 ------------------------------------------------------------ The Keynes Master Fund, Ltd., will hold its final shareholders meeting on March 9, 2007, at 9:00 a.m., at: Harbour Place, 4th Floor George Town, Grand Cayman Cayman Islands These agendas will be followed 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 will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: John Sutlic Thiry Gordon Close Brothers (Cayman) Limited Harbour Place, 4th Floor P.O. Box 1034 George Town, Grand Cayman Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 MILLENNIUM GROWTH: Final Shareholders Meeting Is Set for March 9 ---------------------------------------------------------------- Millennium Growth Fund will hold its final shareholders meeting on March 9, 2007, at 10:00 a.m., at the registered office of the company. These agendas will be followed 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 will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Ltd. Walker House 87 Mary Street, George Town Grand Cayman KY1 9002 Cayman Islands OECHSLE NIPPON: Final Shareholders Meeting Is Set for March 9 ------------------------------------------------------------- Oechsle Nippon Offshore Fund, Ltd., will hold its final shareholders meeting on March 9, 2007, at 10:00 a.m., at: Queensgate House, South Church Street Grand Cayman, Cayman Islands These agendas will be followed 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 will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Ogier Attention: Andrew Moreshouse Telephone: (345) 949 9876 Fax: (345) 949 9877 PARMALAT SPA: Inks EUR25-Mil. Settlement with Popolare di Milano ---------------------------------------------------------------- Parmalat S.p.A. and Banca Popolare di Milano reached a settlement agreement on Feb. 2, in relation to revocatory actions against BPM and Cassa di Risparmio di Alessandria; to an action for damages against Banca Akros; and to Banca Akros' opposition to Parmalat's list of creditors. All actions have been settled through two contracts. First Contract BPM, also on behalf of Cassa di Risparmio di Alessandria, has agreed to pay Parmalat a total of EUR25 million in relation to revocatory actions brought by Parmalat, also adjusted by EUR34 million in relation to transactions that were subsequently found not to have been honored. Further, BPM and Cassa di Risparmio di Alessandria have renounced their right to be included in Parmalat's list of creditors for an equivalent of the amount repaid under the settlement of revocatory actions and have also forgone the possibility of requesting any future admission to the list of creditors of Parmalat and of other companies in the Parmalat Group. Second Contract Banca Akros has agreed to forego its opposition to Parmalat's list of creditors in return for Parmalat ceasing to pursue its action for damages against Banca Akros. This settlement covers only Banca Akros' alleged share of responsibility for the transactions that are subject to Parmalat's action for damages. Both Parmalat and BPM express their satisfaction at the reaching of the agreement. About BPM Headquartered in Milan, Italy, Banca Popolare di Milano -- http://www.bpm.it/-- offers cooperative banking services through its private banking division, business services division, home banking services division and its foreign banking services division. Its subsidiaries include banking groups, such as Banca di Legnano, Banca Akros and Cassa di Risparmio di Alessandria; finance groups, including BPM Fund Management Ltd, Bipiemme Gestioni SGR SpA, BPM Ireland and We@service SpA, and other companies specializing in insurance. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. PARMALAT SPA: Milan Prosecutors Want Trial for Five Banks --------------------------------------------------------- Three Milan prosecutors have asked a judge in Italy to commence trial against five banks and 13 individuals on market rigging charges related to the collapse of Parmalat S.p.A., Sabrina Cohen writes for the Wall Street Journal. WSJ relays, citing a judicial source, those facing trial are: -- Citigroup Inc., -- UBS AG, -- Morgan Stanley, -- Deutsche Bank AG, -- Nextra, and -- 13 individuals related to the banks. The prosecutors told the judge that Parmalat's case "is not just a trial regarding the bankruptcy of a company but also about the abuse of corporate bonds." The prosecutors added that though Parmalat has EUR4.5 billion in market capital, it failed to repay a EUR150-million bond, alleging that the banks released false information regarding the bonds and were acting in concert with Parmalat's former management, WSJ relays. Public prosecutors are pursuing a number of local and foreign banks for alleged corruption that caused Parmalat's EUR14 billion collapse in December 2003. A Citigroup spokeswoman told WSJ that the bank "is itself a victim of the Parmalat fraud and we look forward to responding to these baseless allegations." About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. PARMALAT SPA: Sells Soccer Club to Tommaso Ghirardi for EUR30MM --------------------------------------------------------------- Parmalat S.p.A. has sold soccer club Parma AC to a consortium led by Tommaso Ghirardi for EUR30 million, Reuters says. Previously, Parmalat called for non-binding offers indicating how much capital potential buyers are willing to inject to "reinforce the team's financial structure and guarantee its competitiveness." Parmalat set an initial price of EUR4 million. The Italian Ministry for Economic Development has approved the sale, which transfers the club's ownership from Parmalat to the consortium of Mr. Ghirardi, Angelo Meneghini and Banca Monte di Parma. Parma AC has been in temporary administration since Parmalat's multi-billion euro collapse in December 2003. "We believe in the sport and we believe we can operate well," Mr. Ghirardi told the Associated Press. "We're not just passing by. We want to give a lot to Parma and Italian soccer." Two-time UEFA Cup champion Parma AC is currently third from bottom in the Series A division with 15 points. The team is trying to avoid relegation by not landing at the bottom three. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. PERENNIAL INVESTMENTS: Sets Final Shareholders Meeting on Mar. 9 ---------------------------------------------------------------- Perennial Investments Corp. will hold its final shareholders meeting on March 9, 2007, at 9:30 a.m., at the registered office of the company. These agendas will be followed 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 will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street P.O. Box 908 Grand Cayman KY1-9002 Cayman Islands REFLECTIONS LTD: Proofs of Claim Must be Filed by March 11 ---------------------------------------------------------- Creditors of Reflections, Ltd., which is being voluntarily wound up, are required to present proofs of claim by March 11, 2007, to MBT Trustees Limited, 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: MBT (Trustees) Ltd. Attention: Cherrie Graham P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands Telephone: 945-8859 Fax: 949-9793/4 =============== C O L O M B I A =============== BRIGHTPOINT INC: Secures US$165 Mil. Revolving Credit Facility -------------------------------------------------------------- Brightpoint Inc. has secured a new global US$165 million five- year senior secured revolving credit facility from a consortium of nine major U.S. and international lenders led by Banc of America Securities LLC, as lead arranger. The revolving credit facility allows for expansion of up to US$240 million. This new credit facility replaces Brightpoint's existing US$70 million North American asset based credit facility and $50 million Australian Dollar (approximately US$39 million) asset based credit facility in Australia. "This new revolving credit facility will allow Brightpoint flexible access to capital throughout its entire global footprint," said Anthony W. Boor, Executive Vice President, Chief Financial Officer and Treasurer, Brightpoint Inc. Headquartered in Plainfield, Indiana, Brightpoint, Inc. (NASDAQ: CELL) -- http://www.brightpoint.com/-- engages in the distribution of wireless devices and accessories, as well as provision of customized logistic services to the wireless industry. The company primarily operates in Australia, Colombia, Finland, Germany, India, New Zealand, Norway, the Philippines, the Slovak Republic, Sweden, United Arab Emirates and the United States. The Company's customers include mobile operators, mobile virtual network operators, resellers, retailers and wireless equipment manufacturers. Brightpoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint Inc. in 1995. * * * On April 12, 2006, Standard & Poor's placed the company's long- term local and foreign issuer credit ratings at BB- with a stable outlook. =================== C O S T A R I C A =================== * COSTA RICA: Venezuela May Shut Down Alcasa Due to Conflict ------------------------------------------------------------ Published reports say that Venezuelan President Hugo Chavez may close down Alunasa, a Costa Rican unit of the nation's state heavy industry holding CVG, due to differences with Oscar Arias, his Costa Rican counterpart. According to the reports, President Arias said that the special powers granted to President Chavez were "the antithesis of democracy." The statement has upset the Venezuelan leader. Business News Americas relates that on Feb. 4, Venezuela's national assembly granted President Chavez the power to rule by decree in a wide range of areas. Due to President Arias' statement, President Chavez then allegedly decided to transfer Alunasa to another nation in Central America. He also ordered the immediate suspension of his country's aluminum shipments to Costa Rica, BNamericas notes. Reports say that the presidential press office in Costa Ricahas not yet received any official communication. Meanwhile, workers in Alunasa sent a letter to Arias expressing their concern on the firm's shutdown, BNamericas states. * * * As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa Rica's country ceiling to BB+ from BB. * COSTA RICA: Will Launch Tender for Construction of New Lines -------------------------------------------------------------- Costa Rican state-owned firm Instituto Costarricense de Electricidad said in a statement that it will launch in March a tender for an equipment provider for its planned 1.3 million lines. According to Instituto Costarricense's statement, the firm will add the lines using a third generation mobile network standard. Business News Americas relates that the network will allow Instituto Costarricense to offer mobile data services. It will also be used in addition to the firm's current time division multiple access and GSM networks. Ericsson and Alcatel provided the telecoms equipment for the existing networks. Instituto Costarricense expects to be able to begin offering services through the network at the end of this year, BNamericas notes. Instituto Costarricense told BNamericas that it also launched a wireless local loop network in the rural area to provide wireless Internet and rural telephony. The network required investment of CRC45 million. * * * As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa Rica's country ceiling to BB+ from BB. ======= C U B A ======= * CUBA: Worries on Power Cable & Steel Theft from Towers -------------------------------------------------------- Cuban power authorities are worried on the theft of power cables and steel from high-tension towers as it resulted to significant economic losses, Agence France-Presse reports. Daily news Granma relates that theft of galvanized steel affected over 2,000 towers in 2006 when about 36 kilometers of cable were stolen. Grandma daily relates that technical, administrative and legal measures applied have not stopped the stealing of the cables and steel. Cuba is suffering significant economic and social damage because of the theft, Granma states. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1 foreign-currency issuer rating reflects the debt moratorium that has been in place for more than 15 years, leading to the accumulation of principal and interest arrears. Moody's assigned these ratings on Cuba: -- CC LT Foreign Bank Deposit, Caa2 -- CC LT Foreign Currency Debt, Caa1 -- CC ST Foreign Bank Deposit, NP -- CC ST Foreign Currency Debt, NP -- Issuer Rating, Caa1 =============== D O M I N I C A =============== PETROLEOS DE VENEZUELA: Building Dominican Distribution Complex --------------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA will construct an expanded fuel storage and distribution complex in Dominica, news agency Agencia Bolivariana de Noticias reports. According to Agencia Bolivariana, the complex is part of the Petrocaribe energy cooperation pact. Business News Americas relates that the project will resolve insufficient storage and transportation that is hindering Petrocaribe. The expansion will build on the Belfast river facility, which can store up to 5,000 barrels of diesel, BNamericas states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * Standard & Poor's said on July 17, 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. =================================== D O M I N I C A N R E P U B L I C =================================== COMPLETE RETREATS: Ct. OKs Sale of Dominican Assets for US$940K --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Connecticut gave Complete Retreats LLC and its debtor-affiliates authority to sell their real property in Casa de Campo in the Dominican Republic to William and Birdie Levine for US$940,000, free and clear of all liens, claims, and encumbrances. The Dominican Republic Property, which happens to be owned by Debtor DR Cerezas LLC, spans 7.5 acres and contains a 2,810 square foot home with four bedrooms, four full bathrooms, and one swimming pool. The Dominican Republic Property is not popular among the Debtors' members, is not necessary for the Debtors' operations, and is not part of the global sale of assets to Ultimate Resort, LLC, Jeffrey K. Daman, Esq., at Dechert LLP, in Hartford, Connecticut, avers. The Proposed Sale will, therefore, maximize the Property's value for the benefit of the Debtors' estates and creditors, Mr. Daman says. The Debtors do not believe any higher and better offers for the Property will surface. The only party currently holding a lien on the Dominican Republic Property is postpetition lender Ableco Finance, LLC, Mr. Daman informs the Court. The Debtors believe that Ableco has consented, or will consent, to the Proposed Sale. The Debtors anticipate closing the sale of the Dominican Republic Property in early February. The Debtors also sought the Court's permission to pay real estate advisor CIT Capital USA, Inc., a 7% transaction fee equal to US$65,800 for its substantial marketing efforts to sell the Dominican Republic Property. From the Transaction Fee, CIT will pay local broker Luci Morales Troncoso US$47,000, Mr. Daman relates. Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor- affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed US$308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). As reported in the Troubled Company Reporter on Feb. 19, 2007, the Court further extended the Debtors' exclusive periods to file a plan of reorganization through and including April 19, 2007, and solicit votes on that plan through and including June 18, 2007. COMPLETE RETREATS: Grand Summit Property Sale for US$260K Okayed ---------------------------------------------------------------- The Honorable Alan H.W. Shiff of the U.S. Bankruptcy Court for the District of Connecticut authorized Complete Retreats LLC and its debtor-affiliates to sell their real property located at the Grand Summit Resort Hotel in Park City, Utah, to Jerry and Carolyn Holleran for US$260,000, free and clear of all liens, claims, and encumbrances. Private Retreats Summit, LLC, owns a fractional interest in the Grand Summit Property. The Debtors' fractional interest in the Grand Summit Property provides them with access to a 2,000 square foot, three-bedroom, and three-bathroom unit at the Grand Summit Resort Hotel. The Grand Summit Resort Hotel is located at the lower base of The Canyons Ski Resort and has skiing, golfing, and spa facilities. On Jan. 2, 2007, the Debtors entered into an agreement to sell the Grand Summit Property to Jerry and Carolyn Holleran, pursuant to which the Hollerans agree to purchase the Property for US$260,000. The Hollerans have provided the Debtors with a US$5,000 deposit, according to Jeffrey K. Daman, Esq., at Dechert LLP, in Hartford, Connecticut, informs the Court. The Hollerans will pay the remaining US$255,000 at the closing of the Sale. According to Mr. Daman, the Grand Summit Property is not popular among the Debtors' members. Moreover, the Property is not necessary for the Debtors' operations, and is not part of the global sale of assets to Ultimate Resort, LLC. The only party currently holding a lien on the Grand Summit Property is Ableco Finance, LLC, Mr. Daman says. The Debtors believe that Ableco has consented, or will consent, to the proposed Sale. The Debtors' had sought Court approval to pay CIT Capital USA, Inc., a 7% Transaction Fee equal to US$18,200 for CIT's efforts in marketing the Property. From the Transaction Fee, CIT will pay The Canyons Resort Realty, a local broker, US$13,000. Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor- affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed US$308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). As reported in the Troubled Company Reporter on Feb. 19, 2007, the Court further extended the Debtors' exclusive periods to file a plan of reorganization through and including April 19, 2007, and solicit votes on that plan through and including June 18, 2007. COMPLETE RETREATS: Court Approves Intagio Settlement Agreement -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Connecticut approved, in its entirety, a settlement agreement resolving, among others, Intagio Corp.'s US$1,754,122 claim against Complete Retreats LLC and its debtor-affiliates, and Ultimate Resort LLC. As reported in the Troubled Company Reporter on Jan. 25, 2007, Intagio had strongly disagreed with the Court's basis on overruling its objection to the Debtors' request to sell substantially all of their assets. Consequently, Intagio had indicated to the Debtors and Ultimate Resort LLC that it intended to appeal the Sale Order. Subsequent to the Sale Hearing, the Debtors, Ultimate and Intagio, with the assistance of counsel for the Official Committee of Unsecured Creditors, entered into negotiations for purposes of settling all outstanding disputes between them with respect to the Sale, Joel H. Levitin, Esq., at Dechert LLP, in New York, told the Court, on the Debtors' behalf. Intagio, Ultimate, and the Debtors have agreed to a settlement that would obviate Intagio's need to appeal the Sale Order and resolve all issues among the parties, Mr. Levitin informed the Court. Terms of the Settlement The Intagio Settlement provides that Ultimate and Intagio will enter into a membership agreement and a media contract. Under the Membership Agreement, Intagio will receive a Lifetime Corporate Membership in Ultimate Resort ELITE, along with credit redeemable to pay for four calendar years of annual fees. Under the Media Contract, Intagio will provide Ultimate with media agency services. A full-text copy of the Intagio Membership Agreement is available for free at http://ResearchArchives.com/t/s?18e4 A full-text copy of the Intagio Media Contract is available for free at http://ResearchArchives.com/t/s?18e5 The Debtors and Intagio further agreed that Claim No. 1752 for US$1,754,122 will be reduced and allowed as an unsecured claim for US$1,500,000, which will be the only claim Intagio will have against the Debtors and their estates. Intagio agreed to withdraw Claim No.1349 for US$1,754,122. Mr. Levitin asserted that the Intagio Settlement is appropriate for these reasons: -- The significant cost and expense to be incurred by each party in the presence of material disputes of the law, facts and issues raised in Intagio's Objection, and the possibility of an appeal by Intagio; -- The future cost and expense to be borne by the Debtors' estates obviating the need to object to and litigate the nature and amount of Intagio's claim against the Debtors; and -- The delay and disruption in the administration of the bankruptcy estates. Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor- affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed US$308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). As reported in the Troubled Company Reporter on Feb. 19, 2007, the Court further extended the Debtors' exclusive periods to file a plan of reorganization through and including April 19, 2007, and solicit votes on that plan through and including June 18, 2007. ============= E C U A D O R ============= PETROECUADOR: Petroproduccion Loses Over 2,000 Barrels of Crude --------------------------------------------------------------- Ecuadorian state-run Petroecuador said in a statement that its Petroproduccion subsidiary has lost over 2,000 barrels of crude due to demonstrations by workers in oil service firms. Business News Americas relates that service companies Julcosur and Monet allegedly failed to pay workers, who then launched a strike against the firms on Feb. 13. Due to the strike, personnel were unable to enter Petroproduccion's Sacha and Shushufindi fields in Amazon, BNamericas notes. Petroproduccion Vice President Oscar Garzon called for a series of meetings between employees and company representatives to resolve the situation, BNamericas states. Petroecuador, according to published reports, is faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much-needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. * ECUADOR: Former Oxy Fields to Produce 88,461 Barrels Daily ------------------------------------------------------------ Ecuadorian Energy Minister Alberto Acosta told reporters that the country expects an average daily production of 88,461 barrels at the oil fields stripped from US firm Occidental Petroleum Corp. aka Oxy, Reuters reports. Production at the fields was previously estimated at 95,800 barrels per day, Reuters notes, citing Minister Acosta. As reported in the Troubled Company Reporter-Latin America on June 12, 2006, the Ecuadorian government revoked Oxy's contract in May 2006 for transferring assets without informing the proper authorities and for being involved in directional drilling. Reuters underscores that that the fields' output averaged around 100,000 barrels per day before Petroecuador confiscated them. Minister Acosta told reporters that Oxy was over-exploiting fields in the Amazon jungle region. Oxy has struggled with operational difficulties and red tape to keep up production levels, Reuters states, citing some officials of Ecuadorian state oil Petroecuador. On Feb. 13, output at the fields decreased to 85,594 barrels per day from 100,718 barrels per day in May 2006. Wilson Pastor, the manager of the Petroecuador unit operating the fields, told Reuters that the firm's investment could be decreased by up to 20% this year. * * * As reported on Jan. 25, 2007, Fitch Ratings downgraded the long- term foreign currency Issuer Default Rating of Ecuador to 'CCC' from 'B-', indicating that default is a real possibility in the near term. In addition, these ratings were downgraded: -- Uncollateralized foreign currency bonds to 'CCC/RR4' from 'B-/RR4'; -- Collateralized foreign currency Par and Discount Brady bonds to 'CCC+/RR3' from 'B/RR3'; and -- Short-term foreign currency IDR to 'C' from 'B'. Fitch also affirmed the Country ceiling rating at 'B-'. * ECUADOR: Venezuelan Loan Not Needed to Ease Liquidity Troubles ---------------------------------------------------------------- Ecuadorian Minister of Economy Ricardo Patino told El Universal that the country doesn't need the US$1 billion loan from Venezuela to help alleviate liquidity troubles in Ecuador. As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2007, Minister Patino said that Rodrigo Cabezas, his Venezuelan counterpart, offered the nation a loan of up to US$1 billion with a top interest rate of 7% with no preemptive conditions. "We do not need it for the time being. Whenever we require the kind offer from Venezuela, we will make them know," Minister Patino told Reuters. * * * As reported on Jan. 25, 2007, Fitch Ratings downgraded the long- term foreign currency Issuer Default Rating of Ecuador to 'CCC' from 'B-', indicating that default is a real possibility in the near term. In addition, these ratings were downgraded: -- Uncollateralized foreign currency bonds to 'CCC/RR4' from 'B-/RR4'; -- Collateralized foreign currency Par and Discount Brady bonds to 'CCC+/RR3' from 'B/RR3'; and -- Short-term foreign currency IDR to 'C' from 'B'. Fitch also affirmed the Country ceiling rating at 'B-'. ============= J A M A I C A ============= AIR JAMAICA: Will Launch Montego-Curacao Sunday Flights ------------------------------------------------------- Air Jamaica will launch Sunday flights between Montego Bay and Curacao on March 11, the Jamaica Observer reports. Air Jamaica said in a statement, "This is in direct response to increased demand, especially from the local business community, as well as travel agents in North America wishing to sell Curacao through the Montego Bay hub." Air Jamaica Chief Revenue Officer Tom Hill commented to The Observer that he believed that the new service would complement Air Jamaica's existing service and would make a more convenient and efficient schedule for travelers. Air Jamaica told The Observer that it will continue its Montego- Curacao service every Tuesday and Thursday, with the Tuesday return flight operating non-stop to Kingston. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * On July 21, 2006, Standard & Poor's Rating Services assigned B long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, is based on the government's unconditional guarantee of both principal and interest payments. =========== M E X I C O =========== ADVANCED MARKETING: Amends Wells Fargo DIP Loan Facility -------------------------------------------------------- Advanced Marketing Services Inc. and its debtor-affiliates filed with the Court on February 8 an amendment letter to the DIP Loan Facility modifying certain terms and parts of the DIP Facility. The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware has authorized the debtors, on an interim basis, to access the DIP financing facility arranged by Wells Fargo Foothill Inc. for a consortium of lenders. The Senior Facility provides for a revolving line of credit up to a maximum commitment level of US$90,000,000. Among other things, the Debtors, Wells Fargo Foothill as agent to the Debtors' DIP Lenders, and a consortium of lenders agree to amend the definition of: (1) Qualified Transaction Timeline to mean the schedule of events by which the Qualified Transaction is to occur and be accomplished, specifically: (a) On or before 10 calendar days after the Petition Date, the Debtors will have filed in their bankruptcy Cases the Qualified Transaction Motion; (b) On or before 35 calendar days after the filing of the Qualified Transaction Motion, an order, in form and substance acceptable to Wells Fargo and each Lender, will be entered in the Debtors' bankruptcy cases approving the Qualified Transaction Procedures and also on or before 35 calendar days after the filing of the Qualified Transaction Motion, in the event the Qualified Transaction contemplates the sale or disposition of substantially all or a significant portion of the Debtors' assets, the Debtors will (i) designate a buyer as the "stalking horse" bidder for the purchase of the assets -- which will include an executed, definitive asset purchase agreement in form and substance acceptable to Wells Fargo and each Lender -- containing a minimum "stalking horse" bid, without contingencies other than approval of the bid or a higher and better bid by the Court; or (ii) schedule the other sale hearing or procedures as are acceptable to Wells Fargo and each Lender, on conditions approved by Wells Fargo and each Lender; (c) On or before 60 calendar days after the filing of the Qualified Transaction Motion, an order acceptable to Wells Fargo and each Lender will be entered in the Debtors' bankruptcy cases approving the Qualified Transaction Motion; and (d) On or before 75 calendar days after the filing of the Qualified Transaction Motion, Wells Fargo, for the benefit of the Lenders, will have received cash proceeds from the Qualified Transaction in an aggregate amount sufficient to indefeasibly pay all Obligations and all Senior Obligations in full; (2) Budget to mean the week-by-week Projections for the Debtors, delivered to Wells Fargo setting forth the Projected Information, in form and substance satisfactory to Wells Fargo; and (3) Maximum Revolver Amount to mean US$45,000,000, provided, however, that during the period commencing on the date of the entry of the Interim Financing Order through and including the date of entry of the Final Financing Order, the Maximum Revolver Amount will not exceed, as of the Friday of any week, the lesser of (i) US$45,000,000, or (ii) the amount set forth in the Budget as Loan Outstanding for that Friday. A full-text copy of the amendment letter to the DIP Loan Facility is available for free at: http://bankrupt.com/misc/advanced_DIPamendment.pdf 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 April 28, 2007. (Advanced Marketing Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ARROW ELECTRONICS: Names John McMahon as Human Resources Sr. VP --------------------------------------------------------------- Arrow Electronics, Inc., has appointed John P. McMahon as senior vice president, Corporate Human Resources, effective March 12. Mr. McMahon will have responsibility for Arrow's global human resources function, including compensation, benefits, talent management, professional development and human resources policy for the company's nearly 12,000 employees worldwide. He will be a member of the company's Executive Committee, and report to William E. Mitchell, Arrow chairman, president and chief executive officer. "We are delighted to welcome such a seasoned professional to Arrow," Mr. Mitchell said. "With 25 years of experience in human resources, John will be instrumental in formulating and implementing effective human resources policies and programs in support of our employees and businesses worldwide. John will create a framework that supports Arrow's short- and long-term growth and business strategy, which includes driving shared leadership to the next level of success." Prior to joining Arrow, Mr. McMahon served as senior vice president and chief human resource officer at UMass Memorial Health Care System, the largest health care system in Central and Western Massachusetts. He held the position of senior vice president, Global Human Resources, at Fisher Scientific, a division of Thermo Fisher Scientific that provides laboratory equipment, chemicals, supplies and services, and at Terra Lycos, S.A., a provider of telecommunications and Internet services worldwide. Earlier in his career, Mr. McMahon held leadership roles in human resources at companies that included ITT Corporation, a world leader in engineering and manufacturing, and Raytheon Corporation, an industry leader in defense and aerospace systems. Mr. McMahon holds a Master of Science degree in human resource management from Upsala College and a Bachelor of Science degree from Mercy College. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. In Latin America, Arrow Electronics has operations in Argentina, Brazil and Mexico. * * * Arrow Electronics carries Fitch's 'BB+' issuer default rating. The Company's senior unsecured notes and senior unsecured bank credit facility also carry Fitch's 'BB+' rating. Fitch said the rating outlook is positive. GENERAL MOTORS: Collaborates with Colorado State on E85 Ethanol --------------------------------------------------------------- General Motors Corp. and Governor Bill Ritter's Colorado E85 Coalition have announced plans for the addition of 40 new E85 ethanol-fueling locations to be opened throughout the state by the end of 2007. GM will promote the new fueling locations as part of a broader, ongoing national GM campaign to boost the use and awareness of ethanol-based E85 fuel in the United States. The announcement was made at the State Capitol during an event presided over by Colorado Governor Bill Ritter, GM executives, and the U.S. Department of Energy. "I commend General Motors, our retail partners, the Coalition, and local organizations including the Colorado Corn Growers for making alternative fuels more widely available to Colorado drivers. The Coalition's goal to increase alternative fuel awareness and infrastructure statewide bring Coloradans more options and reasons for choosing biofuels. These are the necessary steps to support new energy economies and decrease our oil dependence," Gov. Ritter said. Colorado's plans for adding an additional forty stations to the existing 13 E85 fueling locations is significant since it is the largest one-time announcement made by GM and any state partner to-date. Noteworthy to Colorado's efforts, and which other states will benefit from, is how collaboration with state government leadership is important to help ensure E85 ethanol can be made more widely available to consumers at a time when Underwriters Laboratories has temporarily suspended authorization for manufacturers to use UL Markings on E85 fuel dispensing devices. Working together, the Fire Marshals' Association of Colorado, the Colorado Division of Oil and Public Safety, the Colorado Division of Fire Safety and the Office of Energy Management and Conservation were able to develop appropriate guidelines for local jurisdictions to continue to use E85 fuel dispensers until UL resumes listing fuel-dispensing equipment. "We appreciate the efforts of Governor Ritter and the OEMC to support E85 ethanol and we commend the fire marshals for developing a state-wide plan to continue to make this great fuel alternative available in Colorado as UL progresses with testing and certification," General Motors Vice President of Environment and Energy Elizabeth Lowery said. "At GM, we believe that the biofuel with the greatest potential to displace petroleum-based fuels in the U.S. is ethanol and we have made a major commitment to vehicles that can run on E85 ethanol-with over two million of our FlexFuel vehicles on the road today and plans to expand production going forward. We will continue to work with government, organizations and retailers to promote increased use and awareness of E85 ethanol across the country." As part of the partnership, GM will promote the availability of the fuel with consumer and dealer outreach. Local GM dealers will help promote these new refueling stations whenever customers purchase flex-fuel vehicles. [Thi]s announcement is part of a nationwide effort by GM to help grow the E85 ethanol fueling station infrastructure. Since May of 2005, GM has announced partnerships in 12 states (South Dakota, California, Texas, Illinois, Minnesota, Michigan, Indiana, Ohio, Pennsylvania, Florida, New York, and Virginia) to locate more than 200 E85 fueling pumps at stations around the country. The goals of the Colorado E85 Coalition depend upon strategic partnerships with key retailers like Pester Marketing and Western Convenience. These two retailers announced that they are committed to respectively opening 12 and 10 E85 ethanol-as well as some biodiesel-fueling sites this year. Rich Spresser, Executive Vice President, Pester Marketing added, "As the number of flex fuel vehicles on Colorado roads continues to increase, Pester is pleased to be able to provide our customers with convenience while supporting the use of cleaner burning fuels, like E85 ethanol." "Western Convenience is proud to offer its customers and the many Colorado motorists greater access to E85 fuel," Western Convenience Director of Operations Bob Van Meter said. "Our 10 sites will make alternative fuels available across the state." "The Department of Energy congratulates Governor Ritter's Colorado E85 Coalition and General Motors in the formation of this partnership to promote renewable biofuels for consumers at more retail locations," the Department of Energy Principal Deputy Assistant Secretary John Mizroch said. "Recently, DOE awarded the Coalition nearly $400,000 for increasing alternative fuel infrastructure development and usage in Colorado. All of these efforts will help our nation to wean itself from its addiction to oil by providing consumers with domestically grown and produced fuel choices like E85 ethanol." GM's E85 partnership and marketing campaign are designed to encourage greater E85 use and showcase GM's E85 FlexFuel vehicle leadership to U.S. consumers. E85 FlexFuel vehicles can run on any combination of gasoline and/or E85, a fuel blend of 85% ethanol and 15% gasoline. E85 can contribute to energy independence because it diversifies the source of transportation fuels beyond petroleum, and it provides positive environmental benefits in the form of reduced greenhouse gas emissions. Currently, GM has more than 2 million E85 FlexFuel vehicles on the road in all 50 states, and will produce more this year. For the 2007 model year, GM is offering 16 E85 ethanol-capable vehicle models, with an annual production of more than 400,000 vehicles. This is more than any other manufacturer. GM believes that developing alternative sources of energy and propulsion is the key to mitigating many of the issues surrounding energy availability. Producing E85 FlexFuel vehicles is one part of GM's strategy to help reduce the use of petroleum and also reduce vehicle emissions. GM's strategy also includes improving the efficiency of the traditional internal combustion engine with technologies available today; and developing electrically driven vehicles such as hybrids, plug-in hybrids, fuel cell vehicles, and electric vehicles. About General Motors General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader since 1931. Founded in 1908, GM employs about 284,000 people around the world. It has manufacturing operations in 33 countries, including Mexico, and its vehicles are sold in 200 countries. GM sells cars and trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed March 29, 2006. S&P said the outlook is negative. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 billion secured term loan of General Motors Corp. The term loan is expected to be secured by a first priority perfected security interest in all of the US machinery and equipment, and special tools of General Motors and Saturn Corp. KANSAS CITY: Mexican Unit to Invest US$380MM on Infrastructure -------------------------------------------------------------- Kansas City Southern de Mexico S. de R.L. de C.V., Kansas City Southern's Mexican subsidiary, told the Associated Press that it will invest US$380 million on equipment and infrastructure. The Mexican unit said in a news release that it will: -- lease 90 new locomotives valued at US$190 million, -- invest US$103 million on infrastructure upgrade in seven states, and -- lease US$7 million in new railcars and maintenance equipment. Kansas City Southern de Mexico told AP that it will invest US$80 million for the construction of a new intermodal container- handling terminal in the Lazaro Cardenas port. "With this new intermodal terminal, the port of Lazaro Cardenas will stand out as one of the most important logistics centers in the world, and a more attractive Pacific port for exporters," Jose Zozaya, Kansas City Southern de Mexico's president, commented to AP. Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding includes KCSR, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, serving northeastern and central Mexico and the port cities of L zaro C rdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Standard & Poor's Ratings Services affirmed its ratings on Kansas City Southern, including the 'B' corporate credit rating, and removed the ratings from CreditWatch, where they were placed Jan. 29, 2007. The 'D' rating on the preferred stock was not on CreditWatch. RYERSON INC: Posts US$4.4 Mil. Net Loss in 2006 Fourth Quarter -------------------------------------------------------------- Ryerson Inc. has reported results for the fourth quarter and full year ended Dec. 31, 2006. Net income was US$71.8 million for 2006, compared with US$98.1 million for 2005. For the fourth quarter of 2006, Ryerson reported a net loss of US$4.4 million compared with net income of US$6.3 million for the fourth quarter of 2005. "Fourth quarter 2006 volume, as anticipated, reflected the typical year-end slowdown, exacerbated by high inventories in a variety of products throughout the supply chain," Ryerson Chairman, President, and Chief Executive Officer Neil S. Novich said. "Additionally, this excess industry-wide inventory, coupled with an extraordinary run up in stainless steel prices, due to nickel surcharges (up an average of approximately US$700 per ton from the third quarter to the fourth), exerted margin pressure in the quarter. "For the full year, we accomplished a great deal," Mr. Novich continued. "By year-end, we reached annualized cost savings of US$42 million from the Integris integration. "Additionally, we identified increased cost savings opportunities and raised our target for total synergy savings from US$50 million to US$60 million. "We made steady progress toward consolidating multiple software platforms, shutting down one legacy platform and beginning the SAP conversion of service centers formerly part of the Integris network. "We acquired Lancaster Steel Service Company Inc., which complements our existing capabilities in western New York and creates cross-selling opportunities. "With the establishment of VSC-Ryerson China Limited, we participate in the world's largest and fastest growing metals consuming market. And we've improved our procurement capabilities with a new global sourcing office in Hong Kong." With stainless steel and aluminum accounting for roughly one- half of Ryerson's revenues, rising material costs for these metals-up 84% and 25%, respectively, in 2006-had a significant effect on reported earnings. The effect of rising materials costs on reported earnings is more immediate under the LIFO method of inventory accounting than FIFO, as LIFO matches current selling prices with the current replacement cost. Under FIFO inventory accounting, profits would have been higher than reported under LIFO by approximately US$190 million pretax in 2006, and US$70 million pretax in the fourth quarter of 2006. Fourth-Quarter Performance Fourth quarter sales increased 8.5% from the fourth quarter of 2005, as the average selling price per ton increased 21.2%, partially offset by a 10.5% decline in tons shipped. Sequentially, sales decreased 8% from the third quarter of 2006. While the average selling price per ton increased 3.1%, sequentially, tons shipped declined 10.8%, consistent with industry trends. Gross profit per ton was US$249 in the fourth quarter of 2006, compared with US$240 in the fourth quarter of 2005 and $267 in the third quarter of 2006. Gross margin declined to 12.9% in the fourth quarter of 2006, compared with 15.1% in the fourth quarter of 2005 and 14.3% in the third quarter of 2006, due to both the impact of rising nickel surcharges on stainless steel, which are passed through without mark-up, and competitive pricing pressure. Operating expenses per ton were US$234 in the fourth quarter of 2006, compared with US$207 in the fourth quarter of 2005 and $204 in the third quarter of 2006. The year-over-year increase in operating expenses per ton was primarily due to the effect of reduced shipments as well as higher spending on the SAP conversion and inflationary pressure, particularly in energy and employee benefit costs, partially offset by synergy cost savings associated with the Integris integration. Sequentially, fourth quarter expenses per ton increased due to lower volume and a favorable credit loss adjustment in the third quarter. Interest expense was US$21.1 million in the fourth quarter of 2006, compared with US$16.3 million in the fourth quarter of 2005 and US$18.8 million in the third quarter of 2006. Full-Year Performance For the full year, sales increased 2.2% to US$5.9 billion on an 8.7% increase in the average selling price per ton, offset by a 5.9% decline in tons shipped. Gross profit per ton increased to US$261 in 2006, compared with US$254 in 2005. Gross margin declined to 14.5% in 2006, compared with 15.3% in 2005. 2006 operating expenses per ton were US$205, compared with US$187 in 2005. 2006 results included a US$4.5 million pre-tax restructuring charge and a US$21.6 million pre-tax gain on the sale of assets. 2005 results included a US$4 million pre-tax restructuring charge a US$21 million pre-tax pension curtailment gain and a US$6.6 million pre-tax gain on the sale of assets. Volume declined primarily because of two previously reported first quarter 2006 events -- the sale of the oil and gas business and the loss of two large accounts. Operating expenses increased, primarily due to greater spending on the SAP rollout, higher employee costs, and inflationary pressure, principally in energy, partially offset by synergy cost savings associated with the Integris integration. Financial Condition Ryerson ended 2006 with a debt-to-capital ratio of 65%, compared with 62.7% at the end of the third quarter and 61.6% at year-end 2005. Availability under the revolving credit facility was US$188 million at the end of the fourth quarter of 2006, compared with US$323 million at the end of the third quarter and US$575 million at year-end 2005. Higher debt levels in 2006 were driven by increased inventory levels, consistent with trends in the service center industry. However, the company has made progress reducing inventories in 2007, which are down approximately US$50 million in January, from year-end 2006 levels of US$1.6 billion, as measured on a current value basis. In January 2007, Ryerson refinanced its existing US$1.1 billion revolving credit facility, replacing it with a 5-year, US$750 million revolving credit facility and a 5-year, US$450 million accounts receivable securitization. The new securitization facility will result in annualized interest expense savings of approximately US$5 million, compared with interest costs under the prior facility. In the first quarter of 2007, there will be a one-time, US$2.7 million write off of unamortized expense associated with the prior credit facility. Outlook "Higher inventories throughout the supply chain will continue to affect the industry for at least the first quarter of 2007," Mr. Novich concluded. "But we are optimistic that our initiatives will improve the operating performance of the company." 2007 initiatives include: -- Reducing current value of inventory at least US$100 million by the end of the first quarter of 2007, compared to year-end 2006 levels; achieving inventory turnover of 5 turns by year end. -- Addressing under-performing service centers, targeting operating profit improvement of US$30 million in 2007, exclusive of any potential restructuring charges. -- Completing the SAP conversion of Integris; consolidating 15 service centers; capturing additional savings of US$10 million to achieve annualized Integris synergy savings of US$60 million by year-end 2007. The company has already implemented organizational and management changes in January consistent with the ongoing performance initiatives. In addition to these specific initiatives for 2007, Ryerson remains on schedule to complete the conversion to SAP by the end of 2008. Moving to a single, modern platform allows the company to manage inventories in a uniform fashion, significantly reduce overall IT expense, and complete the integration of Integris. Ryerson now expects total project costs for the 2004 to 2008 time frame of US$80 million, compared with the earlier estimate of US$65 million. The increase is largely to enhance system functionality and productivity and provide additional savings opportunities. The company will also continue to pursue long- term profitable growth based on its three fundamental principles: achieve world-class operations, drive organic growth, and enhance competitive position domestically and globally through targeted acquisitions and joint ventures. Shareholder Proposal On Jan. 2, 2007, Harbinger Capital Partners announced it is seeking to elect seven nominees, which would be a majority, to Ryerson's Board of Directors at the company's 2007 Annual Meeting. Ryerson's Board of Directors and its advisors conducted a thorough evaluation of Harbinger's analysis and proposal compared to Ryerson's short-term and long-term plans. Based on this evaluation, Ryerson's Board disagrees with Harbinger's analysis and will oppose its efforts to obtain control of Ryerson's Board and consequently, the company. The Board believes that implementing the company's current strategic plan will significantly enhance value for all shareholders. UBS Investment Bank Retention In addition, the Board has retained UBS Investment Bank as its financial advisor to assist in comparing the company's current plan with other strategic alternatives, which may create additional value. Ryerson may not update its process or disclose developments with respect to potential strategic initiatives unless the Board has approved a definitive course of action or transaction. The company will elaborate on its opposition to Harbinger's efforts to obtain control of the Board in appropriate filings with the SEC. About Ryerson Inc. Ryerson Inc. (NYSE: RYI) -- http://www.ryerson.com/-- is a distributor and processor of metals in North America, with 2006 revenues of US$5.9 billion. The company services customers through a network of service centers across the United States and in Canada, Mexico, India, and China. On Jan. 1, 2006, the company changed its name from Ryerson Tull, Inc. to Ryerson Inc. RYERSON INC: S&P Cuts Corporate Credit Rating to B+ from BB- ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating to 'B+' from 'BB-' on Chicago, Illinois-based metals processor and distributor Ryerson Inc., and lowered its senior unsecured rating to 'B-' from 'B'. The outlook is developing, reflecting the uncertainties associated with Ryerson's decision to retain an investment bank to explore strategic alternatives. A developing outlook means ratings can be either raised, lowered, or affirmed. "We believe Ryerson's decision is in response to the intention of hedge-fund Harbinger Capital to take control of the board of directors," said Standard & Poor's credit analyst Thomas Watters. "The downgrade reflects the persistence of poor operating performance by Ryerson relative to its some of its peers, high debt leverage, softening end-market demand, weak credit measures that have not met our expectations, and concerns about working capital management -- a critical factor in companies with this type of working-capital-intensive business model." In a highly fragmented industry, Ryerson is one of the leading North American metal service centers with an approximate 5% market share and about US$5.9 billion in revenues. RYERSON INC: Harbinger Capital Comments on 2006 Financials ---------------------------------------------------------- Harbinger Capital Partners Master Fund I Ltd. and Harbinger Capital Partners Special Situations Fund L.P. has commented on Ryerson Inc.'s fourth quarter and full year 2006 results. Larry Clark, Managing Director of Harbinger Capital Partners said: "There has also been no improvement to Ryerson's dismal execution of steel service center basics -- buying and selling steel profitably. Management's plan to fix Ryerson's serious inventory problem is linked to a technology conversion that is escalating in cost and will not be complete for almost two years. "Considering this team's long history of substantial underperformance on the basic service center operating metrics of inventory management and cash generation, we harbor substantial doubts that they will deliver on this or any of their other stated initiatives to turn this business around." Mr. Clark added, "As [Ryerson]'s largest shareholder, we are very disappointed with but not surprised by today's announced fourth quarter and full year 2006 results. "They are significantly below consensus estimates and certainly make the case for change in [Ryerson]'s Board even more compelling. Along with a precipitous decline in net income, which resulted in a 17 cent per share loss, [Ryerson]'s gross margins are lower than they have been in almost a decade. "We found it particularly troublesome to hear CEO Neil Novich attempt to minimize Ryerson's poor profit performance on [its] quarterly call, when he stated that 'looking at gross margin percent ... is just not very useful' in gauging a company's financial health and relative performance." Specifically, Harbinger Capital noted that, based on the Ryerson earnings announcement and its previous public filings: -- Despite a slight increase in fourth quarter revenue, Ryerson's net income declined precipitously from a year-ago profit of US$6.3 million, or 24 cents a share, to a loss of US$4.5 million, or 17 cents a share; -- Ryerson' came in below consensus estimates on both the top and bottom line; -- Tons shipped decreased 10.5% year-over-year from 820 thousand tons in fourth quarter of 2005 to 734 thousand tons in fourth quarter of 2006; -- Operating profit per ton decreased 55% year-over-year from US$33 to US$15 for fourth quarter 2006; -- EBITDA margin decreased to 1.5% in fourth quarter of 2006 from 2.7% in fourth quarter 2005; -- Total debt increased 37.5% year-over-year from approximately US$877.2 million to US$1.2 billion; -- Debt to total capitalization stood at 65% at end of 2006 versus 61.6% at end of 2005; -- LIFO adjusted inventory increased 47.4% from US$1.11 billion to US$1.63 billion, with 50% of that increase related to increased volume, not pricing; -- Inventory turns for fourth quarter of 2006 were 3.1x vs. 3.9x in fourth quarter of 2005; -- The SAP conversion is now expected to cost US$80 million instead of original estimate of US$65 million; and -- Ryerson failed to provide meaningful financial guidance for the next quarter or for the 2007 full-year. "Management continues to fail to execute their business plan and the Board is unable or unwilling to provide the appropriate guidance to enhance value for shareholders. [Ryerson]'s cursory dismissal of Harbinger's proposals and failure to detail what elements of Harbinger's analysis they disagree with demonstrate their complete disregard for shareholders concerns, especially considering that [its] performance issues we noted in January have only worsened. The bottom line is [its] announcement clearly demonstrates a real need for change at the board level," Mr. Clark concluded. Harbinger's Proposal Harbinger, which owns a 9.7% stake in Ryerson, is seeking the election of seven independent directors to replace the majority of the existing Board of Directors of Ryerson Inc. at Ryerson's 2007 Annual Meeting of shareholders. Harbinger's experienced and independent director nominees include Keith E. Butler, Eugene I. Davis, Daniel W. Dienst, Richard Kochersperger, Larry J. Liebovich, Gerald Morris, and Allen Ritchie. About Harbinger Capital Partners The Harbinger Capital Partners investment team located in New York City manages in excess of US$5 billion in capital through two complementary strategies. Harbinger Capital Partners Master Fund I Ltd. is focused on restructurings, liquidations, event- driven situations, turnarounds, and capital structure arbitrage, including both long and short positions in highly leveraged and financially distressed companies. Harbinger Capital Partners Special Situations Fund L.P. is focused on distressed debt securities, special situation equities, and private loans/notes in a predominantly long-only strategy. About Ryerson Inc. Ryerson Inc. (NYSE: RYI) -- http://www.ryerson.com/-- is a distributor and processor of metals in North America, with 2006 revenues of US$5.9 billion. The company services customers through a network of service centers across the United States and in Canada, Mexico, India, and China. On Jan. 1, 2006, the company changed its name from Ryerson Tull, Inc. to Ryerson Inc. TK ALUMINUM: Proposes Amendments to Nemak Transaction Terms ----------------------------------------------------------- TK Aluminum Ltd., the indirect parent of Teksid Aluminum Luxembourg S.A R.L., S.C.A., is continuing to work with its major creditor constituencies, to facilitate the consummation of both its transaction with Tenedora Nemak, S.A. de C.V., a subsidiary of ALFA, S.A.B. de C.V. and the sale of all of its equity interests in its subsidiaries located in France, Italy and Germany to one or more affiliates of BAVARIA Industriekapital AG. Proposed Amendments to Nemak Transaction TK Aluminum is requesting amendments to the existing agreements with Nemak that would accelerate the receipt of a portion of the Nemak sale proceeds by providing for separate closings for the businesses in respect of which regulatory approvals have been obtained or are expected to be obtained in the near term, with the balance of the transaction being completed, in one or more stages, once the remaining regulatory approvals have been obtained. In addition, other elements of the definitive agreement are expected to change as a result of the ongoing discussions. In response to its request, the Company received a signed non-binding letter from Nemak outlining terms and conditions on which Nemak is currently willing to consider and engage in the negotiation of certain amendments. Key features of the amendments to the definitive agreement include: * Cash purchase price for the assets to be purchased under the amended definitive agreement to be decreased from US$495.9 million to US$485 million; * Inclusion of Teksid's lost-foam operations in North America among assets to be purchased; * Obligation to assume liabilities in connection with the reorganization of the company's remaining operations reduced from up to US$7 million to up to US$2 million; * An escrow of cash proceeds at each of the initial closing and the closing of the Teksid Poland sale of US$20 million and US$5 million, respectively, to fund potential short fall of working capital or excess net debt at such closings; * Allocation of purchase price and certain other economic terms according to relative value of the various components of the asset purchase; and * No adjustment to the number of shares based on Nemak's acquisition of Norsk Hydro. In addition, the proposed amendments would eliminate any obligation of the company with respect to minimum aggregate consideration payable in connection with any offer to purchase the Senior Notes. The company has also proposed a cash settlement of certain loans extended by its French operating subsidiaries to its Brazilian, Mexican and United States subsidiaries, which Nemak has indicated it is reviewing. The letter of understanding places Nemak under no obligation until a definitive agreement to amend the transaction has been executed. Any amendment to the transaction must be approved by both the board of directors of TK Aluminum Ltd. and Nemak. Closing of the amended deal is subject to various conditions, including the receipt by seller of certain consents and waivers from the company's bondholders and other customary conditions, including regulatory approvals. On Feb. 1, 2007, the Mexican antitrust commission granted approval in respect of the sale of the assets in Mexico. Existing Terms of Nemak Transaction On Nov. 2, 2006, the company entered into a definitive agreement to sell certain assets to Nemak. Under the terms of the existing agreement, the company agreed to sell its operations in North America, except for its lost-foam operations in Alabama, and its operations and interests in South America, China and Poland. As consideration for the operations being purchased, the company would receive US$495.9 million in cash, subject to working capital and net debt adjustments, along with a synthetic equity interest in the Nemak business post-closing. Pursuant to the existing agreement, Nemak also agreed to provide certain limited assistance to TK Aluminum, including the assumption of up to US$7 million in liabilities in connection with the reorganization of the company's remaining operations and provide a US$25 million loan to be issued in connection with the transaction. In addition, pursuant to the existing agreement, ALFA agreed to provide credit enhancement to support up to US$42 million of letters of credit in favor of commercial counter parties to replace existing arrangements under the company's existing senior credit facilities. Proposed Consent Solicitation TK Aluminum intends to launch a solicitation of its bondholders for the consent to both the Nemak and Bavaria transactions. In addition, the contemplated solicitation would provide for the waiver of the company's obligation to offer to purchase bonds at 101% of par under change of control provisions, amend the indenture to release certain guarantors of the bonds relevant to the specified sales transactions and would oblige the company to offer to repurchase the bonds at 100% of par with available asset sale proceeds net of satisfying secured debt obligations, unpaid interest, other operating obligations and maintenance of adequate corporate liquidity. The contemplated solicitation would also augment the allowed borrowings under the revolving credit facility by EUR20 million, and would provide that consenting bondholders shall not take any action to accelerate the maturity of the bonds or to enforce remedies under the indenture until April 30, 2007. Pursuant to the contemplated solicitation, consenting bondholders would release all claims against the management, directors, officers, advisers and stockholders, as such, of the Company, the Parent Guarantor and its subsidiaries, and would receive a fee in the amount of EUR20 for every EUR1,000 principal amount of bonds. If the Nemak transaction is consummated with the proposed amendments, the company estimates that the maximum amount of cash available for distribution to bondholders would decrease from that estimated on Feb. 2, 2007 by approximately EUR70 per every EUR1000 of principal amount of bonds. However, including the proceeds from the US$25 million loan to be issued in connection with the Nemak transaction, the company estimates that the maximum amount of cash available to bondholders would be approximately EUR500 to EUR560 per every EUR1000 of principal amount of bonds. The company's estimate assumes completion of the Nemak sale, other than the sale of the company's operations in China and Poland, by Feb. 28, 2007, completion of the sale of the company's operations in China and Poland by March 31, 2007 and completion of the Bavaria transaction by March 31, 2007 and excludes any cash that may be subsequently realized from the synthetic equity interest. About Teksid Aluminum Headquartered in Turin, Italy, TK Aluminum Ltd. -- http://www.teksidaluminum.com/-- manufactures light metal castings for the automotive industry. The company's core products are cylinder heads and blocks, and transmission and suspension components produced with a wide range of technologies: semipermanent mold gravity casting, high-pressure die casting, low pressure, precision sand core and lost foam. The company also operates in France, Poland, U.S.A., Mexico, Brazil, Argentina and China. As reported in the Troubled Company Reporter on Jan. 18, 2007, Moody's Investors Service downgraded the Corporate Family Rating of Teksid Aluminum Ltd. aka TK Aluminum to Caa3 from Caa1 and the senior unsecured rating of Teksid Aluminum Luxembourg Sarl SCA to Ca from Caa3. The ratings remain on review with an uncertain direction; the rating review was initiated on Nov. 3, 2006. VISTEON CORP: Posts US$39 Mil. Net Loss in Fourth Quarter 2006 -------------------------------------------------------------- Visteon Corp. reported a net loss of US$39 million on total sales of US$2.84 billion for the fourth quarter 2006. For full year 2006, Visteon reported a net loss of US$163 million on total sales of $11.4 billion. Visteon's balance sheet at Dec. 31, 2006, showed total assets of US$6,938 million and total liabilities of US$6,750 million resulting in a total shareholders' deficit of US$188 million. The company's total shareholders' deficit as of Dec. 31, 2005, stood at US$48 million. Commenting on the results, Michael F. Johnston, the company's chairman and chief executive officer, said, "[o]ur full year results demonstrate solid progress in achieving our multi- year improvement plan, even while facing significant production declines from a number of our customers. We're leaner, more efficient and better positioned from a product, customer and footprint perspective than we were a year ago." "This new business reflects the strength of our product portfolio and our manufacturing and engineering footprints, which are already among the best in the industry," said Donald J. Stebbins, president and chief operating officer. "We also continued to diversify our customer base which will enable us to better withstand global production shifts." Fourth Quarter 2006 Sales for fourth quarter 2006 totaled US$2.84 billion. Fourth quarter 2006 product sales were US$2.7 billion, essentially unchanged from fourth quarter 2005, as favorable currency and increased sales in Asia were offset by lower production volumes, principally in North America. Product sales to non-Ford customers of US$1.62 billion rose 13 percent, or US$188 million, over fourth quarter 2005 and represented 60 percent of total product sales. Services sales of $131 million decreased US$33 million from the same period in 2005, reflecting the transfer of about 1,000 Visteon salaried employees associated with two Automotive Components Holdings (ACH) manufacturing facilities to Ford in early 2006. Visteon reported a net loss of US$39 million for the fourth quarter of 2006, which included reimbursable restructuring expenses and other qualified costs of US$71 million and a net tax benefit of US$32 million. The net tax benefit resulted primarily from tax effecting current year U.S. operating losses to the extent of increases in other comprehensive income in 2006, principally attributable to favorable foreign currency translation. For the fourth quarter 2005, Visteon reported net income of US$1.3 billion, which included a gain of US$1.8 billion related to the ACH transactions, US$335 million of non-cash asset impairments, US$34 million of restructuring expenses and other qualified reimbursable costs. Reimbursements from the escrow account totaled US$51 million, which included reimbursements for qualified costs recognized in previous periods. Cash provided by operating activities for the fourth quarter of 2006 was US$239 million, an increase of US$197 million over the same period a year ago. Fourth quarter 2005 was adversely impacted by the unwinding of the retained negative working capital associated with the ACH transactions. Capital expenditures for the fourth quarter of 2006 of US$108 million were US$77 million lower than the same period a year ago. Free cash flow for the fourth quarter of 2006 was positive US$131 million, compared with negative US$143 million in the same period of 2005. Full Year 2006 Sales for full year 2006 totaled US$11.4 billion, including product sales of US$10.9 billion and services sales of US$547 million. Product sales to non-Ford customers totaled US$6.0 billion, or 55% of total product sales. Sales for the same period a year ago totaled $17.0 billion, including product sales of US$16.8 billion and services sales of US$164 million. Of the total product sales for 2005, 62% were to Ford and 38% were to non-Ford customers. The transfer of 23 North American facilities on Oct. 1, 2005, as part of the ACH transactions decreased year-over-year product sales by US$6.1 billion. Visteon's net loss of US$163 million for full year 2006 represents an improvement of US$107 million over 2005's net loss of US$270 million despite lower sales levels. The net loss for full year 2006 included US$22 million of non- cash asset impairments related to the company's restructuring actions and an extraordinary gain of US$8 million associated with the acquisition of a lighting facility in Mexico. Restructuring expenses for full year 2006 were US$95 million, all of which qualified for reimbursement from the escrow account. The net loss of US$270 million for full year 2005 included asset impairments of US$1.5 billion, a US$1.8 billion gain on the ACH transactions, and US$26 million of restructuring expenses, partially offset by US$51 million of reimbursements from the escrow account. Cash provided by operating activities was US$281 million for full year 2006 compared with US$417 million for full year 2005. Capital expenditures of US$373 million for the full year 2006 were US$212 million lower than 2005. Free cash flow for full year 2006 was negative US$92 million compared with negative US$168 million for full year 2005. Cash and Debt As of Dec. 31, 2006, cash and equivalents totaled US$1.057 billion as compared to US$865 million at the end of 2005. Total debt of US$2.2 billion as of Dec. 31, 2006, compared with US$2.0 billion at the end of 2005, principally reflecting the closing of an additional US$200 million secured term loan under its existing term loan credit agreement in November 2006. Restructuring In connection with the company's salaried reduction program announced in October 2006, about 800 salaried positions have been identified as of Dec. 31, 2006. Restructuring expenses in the fourth quarter of 2006 for these salaried reductions were US$19 million and qualified for reimbursement from the escrow account. The company expects to complete the salaried reduction program by the end of March 2007 and anticipates achieving per annum savings of about US$65 million. Visteon also recognized US$20 million of restructuring expenses and US$8 million of pension curtailment losses during the fourth quarter of 2006 related to the company's plan to close a U.S. climate control manufacturing facility in 2007 in response to lower sales volumes and cost pressures. In addition, in 2006 the company completed 11 restructuring actions in connection with its multi-year improvement plan. Reimbursable restructuring expenses and other qualified costs from the escrow account totaled US$106 million for the full year 2006. As of Dec. 31, 2006, the escrow account had a balance of US$319 million, US$55 million of which related to expenses incurred in the fourth quarter of 2006, which were reimbursed from the escrow account in February 2007. About Visteon Corp. Headquartered in Van Buren Township, Mich., Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the company has more than 170 facilities in 24 countries, including Mexico, and employs approximately 50,000 people. At Sept. 30, 2006, the company's balance sheet showed total assets of US$6.721 billion and total liabilities of US$6.823 billion resulting in a total shareholders' deficit of US$102 million. Total shareholders' deficit at Dec. 31, 2005 stood at US$48 million. * * * As reported in the Troubled Company Reporter on Sept. 13, 2006, Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Visteon Corp. to 'B' from 'B+' and its short-term rating to 'B-3' from 'B-2'. These actions stem from the company's weaker-than-expected earnings and cash flow generation, caused by vehicle production cuts, inefficiencies at several plant locations, sharply lower aftermarket product sales, continued pressure from high raw material costs, and several unusual items that will impact 2006 results. As reported in the Troubled Company Reporter on Nov. 24, 2006, Moody's Investors Service has downgraded Visteon Corporation's Corporate Family Rating to B3 from B2, changed the ratings outlook to stable from under review for possible downgrade and affirmed the company's liquidity rating of SGL-3. ===================== P U E R T O R I C O ===================== ADELPHIA COMM: Bondholders Oppose 2007 Workers Incentive Program ---------------------------------------------------------------- The Bondholders of Adelphia Communications Corp. and its debtor- affiliates ask the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York to deny the ACOM Debtors and its Official Committee of Unsecured Creditors' request to implement the 2007 Key Employee Retention Program. As reported in the Troubled Company Reporter on Feb, 13, 2007, the ACOM Debtors and the Creditors Committee sought authority from the U.S. Bankruptcy Court for the Southern District of New York to implement an incentive and retention program for certain key employees who remain employed by the Debtors after confirmation of the ACOM Debtors' Modified Fifth Amended Joint Chapter 11 Plan. Under the terms of the 2007 KERP, the ACOM Debtors seek to provide incentives to the Covered Employees to remain in the their employ through the end of May 2007, and in a few cases through the end of July 2007. Shelley C. Chapman, Esq., at Willkie Farr & Gallagher LLP, in New York, related that the Covered Employees continue to face uncertainty regarding their employment. This uncertainty, occasioned by the appeal and subsequent stay of the Confirmation Order, likely will cause a mass exodus of the Covered Employees at a critical juncture, Ms. Chapman asserted. On behalf of the ACC Bondholder Group, Sylvia Mayer, Esq., at Weil, Gotshal & Manges LLP, in New York, argues that there is no evidence that the ACOM Debtors' proposed key employee retention and incentive program is in the best interest of the estate and the creditors. The ACC Bondholder Group is comprised of holders or investment advisors to certain holders of over US$1,100,000,000 of notes and debentures issued by Adelphia Communications Corp. in the principal amount of US$4,900,000,000. Ms. Mayer states the courts in the Second Circuit in Comm. of Equity Security Holders v. Lionel Corp. (In re Lionel Corp.), 722 F.2d 1063, 1071 (2d Cir. 1983), hold that transactions should be approved pursuant to Section 363(b) of the Bankruptcy Code only when supported by evidence of a sound business reason and management's sound business judgment. Based upon the facts and analysis presented in the joint request of the ACOM Debtors and the Official Committee of Unsecured Creditors, the approval of the proposed 2007 KERP should be denied because the need or basis for it was not sufficiently explained, Ms. Mayer argues. Ms. Mayer notes that the ACOM Debtors and the Creditors Committee's primary contention is that, because the Modified Fifth Amended Joint Chapter 11 Plan is not effective, the ACOM Debtors need to retain certain personnel to complete a yearend audit and prepare a Form 10-K for 2006 for filing with the Securities and Exchange Commission by March 31, 2007. It is unclear, Ms. Mayer notes, why the ACOM Debtors need to retain a large number of staff, consisting of 46 individuals, to work on a project that was started several months ago. Ms. Mayer points out that the ACOM Debtors' executive vice president and chief financial officer, Vanessa Wittman, testified at the confirmation hearing in December 2006 that the ACOM Debtors already had begun preparing their Form 10-K for 2006, and by Dec. 31, 2006, would have accrued US$2,500,000 in expenses related to the preparation. Ms. Mayer argues that the ACOM Debtors and the Creditors Committee have failed to disclose critical information necessary to assess the reasonableness of their 2007 KERP proposal, including: (i) the amount of work already completed with respect to the Form 10-K; (ii) the amount of expenses incurred to date; (iii) the exact number of employees required to complete the project; and (iv) whether any of these employees would have been required to be retained, or would have voluntarily stayed, in any event. Ms. Mayer contends that the Extended Employee Post-Closing Incentive Program contemplates certain "Key Managers" to remain employed through April or May 2007. Moreover, there are 80 individuals currently employed by the ACOM Debtors who are not covered by the proposed 2007 KERP, some of whom already are scheduled to remain with the Debtors through July 31, 2007, she adds. Any delay caused by the ACC Bondholders' appeal to the confirmation order approving the ACOM Debtors' Plan was immaterial and was their lawful effort to assert their appellate rights, Ms. Mayer contends. The ACOM Debtors and the Creditors Committee have unjustifiably attempted to blame the ACC Bondholders for the ACOM Debtors' alleged need to retain personnel, in an apparent attempt to further prejudice the ACC Bondholder Group's appellate rights and create a record of costs to apply against the bond, if one is posted and lost, Ms. Mayer contends. 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. (Adelphia Bankruptcy News, Issue No. 164; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). The Court confirmed the ACOM Debtors' First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization on Jan. 3, 2007. That Plan became effective Feb. 13, 2007. ADELPHIA COMM: Bondholders Want IPO Material Info Disclosed ----------------------------------------------------------- The Bondholders of Adelphia Communications Corp. and its debtor- affiliates want the U.S. Bankruptcy Court for the Southern District of New York to compel the ACOM Debtors to make full disclosure of the material aspects of the proposed Time Warner Cable Inc. IPO with an adequate opportunity for creditors to take discovery and review and object if appropriate. As reported in the Troubled Company Reporter on Feb. 13, 2007, the ACOM Debtors have anticipated that their Fifth Amended Plan of Reorganization will enable them to distribute the Time Warner Cable Inc. Class A Common Stock to creditors pursuant to Section 1145 of the Bankruptcy Code, and without the need for a public sale. To comply with existing contractual obligations under the Registration Rights Agreement previously approved by the Honorable Robert E. Gerber, the ACOM Debtors must pursue a "dual track" strategy until the commencement of distributions under the Fifth Amended Plan: (a) seek confirmation of the Fifth Amended Plan; and (b) pursuant to the Registration Rights Agreement, under certain circumstances, sell the TWC Stock pursuant to a public sale. Accordingly, the ACOM Debtors sought the Court's authority to: (a) approve certain procedures relating to their potential sale pursuant to a firm fully underwritten public sale of no less than 33-1/3% -- inclusive of any shares sold pursuant to the over allotment options granted to the Underwriters -- of the TWC Stock received by the ACOM Debtors and the Escrow Agent in connection with the Sale Transaction; (b) allow the Debtors to enter into an underwriting agreement with certain underwriters, in connection with the Public Sale and other agreements as necessary or advisable to effectuate the Public Sale; and (c) allow the sale of the TWC Stock to be offered in the Public Sale to the Underwriters free and clear of Interests. Material Information Not Disclosed, ACC Bondholders Say The ACC Bondholders group maintains that while an initial public offering of the Time Warner Cable Inc. Class A Common Stock will be received by investors as one of the most desired IPOs in years, the ACOM Debtors have failed to demonstrate that the terms of the proposed underwriting agreement are the best ones that could be negotiated with investment banks or reasonable under the circumstances of the desirability of the IPO. The ACC Bondholder Group consists of Aurelius Capital Management, LP, Banc of America Securities LLC, Catalyst Investment Management Co., LLC, Drawbridge Global Macro Advisors LLC, Drawbridge Special Opportunities Advisors LLC, Elliott Associates, LP, Farallon Capital Management, L.L.C., Noonday Asset Management, L.P., Perry Capital LLC and Viking Global Investors LP. The ACC Bondholders complain that the ACOM Debtors' failure to disclose critical terms of the Proposed Underwriter Agreement makes it impossible for creditors or the Court to understand the economics of the proposal and approve the ACOM Debtors' request. Representing the ACC Bondholders, Sylvia Mayer, Esq., at Weil, Gotshal & Manges LLP, in New York, argues that the ACOM Debtors: (a) provided the Proposed Underwriting Agreement with "significant holes" -- key provisions and schedules were to be added later, presumably after the approval by the Court; (b) failed to disclose material information related to the Proposed Underwriting Agreement; (c) failed to disclose the identity of the Underwriters; and (d) have not submitted any information justifying the key economic terms of the Proposed Underwriting Agreement. Ms. Mayer contends that the ACOM Debtors' lack of disclosure is particularly egregious in light of the their request that "any holders of [claims] who failed to object to [the] Motion may and shall be deemed to have consented to the sale of the TWC Stock pursuant to the Public Sale free and clear." The ACC Bondholders expressly reserve all of their rights to further object to the ACOM Debtors' request on any basis. 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. (Adelphia Bankruptcy News, Issue No. 164; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). The Court confirmed the ACOM Debtors' First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization on Jan. 3, 2007. That Plan became effective Feb. 13, 2007. ADELPHIA COMMS: Court Sets March 26 as Admin. Claims Bar Date ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York set 5:00 p.m. E.S.T. on March 26, 2007, as the deadline for holders of administrative claims in Adelphia Communications Corp. and its debtor-affiliates' Chapter 11 case to file their proofs of claim. Administrative claim holders can send their proofs of claim to: Adelphia Communication Corp. Claims Processing Center c/o U.S. Bankruptcy Court for the Southern District of New York One Bowling Green New York, NY 10004-1408 Adelphia Communications Corp. Claims Processing Center P.O. Box 5059 Bowling Green Station New York, NY 10274-5059 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. (Adelphia Bankruptcy News, Issue No. 164; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). The Court confirmed the ACOM Debtors' First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization on Jan. 3, 2007. That Plan became effective Feb. 13, 2007. ================================= T R I N I D A D & T O B A G O ================================= DIGICEL LTD: Gets Favorable Ruling on Interconnection Dispute ------------------------------------------------------------- Justice Nolan Bereaux of the Port of Spain Sixth Civil court in Trinidad & Tobago has ruled in favor of Digicel Ltd. in the firm's interconnection dispute with Telecommunications Services of Trinidad & Tobago aka TSTT, The Trinidad Express reports. As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2006, Kevin White, the chief executive officer of Digicel Trinidad and Tobago, said that the company filed on Oct. 30 an injunction to stop the TSTT from blocking calls from the firm's clients. The Express relates that the court ordered TSTT to provide additional circuits to their network to accommodate the increased traffic to its mobile and land lines. According to The Express, TSTT must grant a Digicel representative limited access to its database to search for proof that TSTT was sabotaging connections coming from its network. TSTT may file an appeal on the court's decision, The Express states. Digicel Ltd. is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Bermuda, Cayman, and Curacao among others. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings has taken these rating actions for Digicel Group Ltd., Digicel Ltd. and Digicel International Finance Ltd.: Digicel Group Ltd. -- Proposed US$1.4 billion senior subordinated notes due 2015 assigned 'CCC+/RR5' Digicel Ltd. -- Foreign currency Issuer Default Rating downgraded to 'B-' from 'B'; and -- US$450 million senior notes due 2012 downgraded to 'B-/RR4' from'B/RR4'. Digicel International Finance Ltd. --US$850 million senior secured credit facility assigned 'B/RR3'. Fitch said the outlook on all ratings is stable. ================= V E N E Z U E L A ================= ELECTRICIDAD DE CARACAS: Net Profits Increased to US$118.4 Mil. --------------------------------------------------------------- Electricidad de Caracas' net profits has increased to US$118.4 million in 2006, compared to US$92.8 million in 2005, El Universal reports. El Universal relates that Electricidad de Caracas net profits decreased 14.96% to US$34.4 million in the fourth quarter of 2006, compared to US$40.7 million in the same quarter of 2005. Electricidad de Caracas said in a statement that the balance was due to: -- a drop in depreciation, -- securing of an integral facility, and -- a continued program on cost rationalization. Electricidad de Caracas' financial debt in the fourth quarter of 2006 decreased US$89.25 million, or 22.38%, to US$309.52 million, compared to the fourth quarter of 2005, El Universal states. Electricidad de Caracas 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. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 16, 2007, 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. Standard & Poor's also 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. * VENEZUELA: Ecuador Doesn't Need US$1 Billion Loan from Nation --------------------------------------------------------------- Ecuadorian Minister of Economy Ricardo Patino told El Universal that the country doesn't need the US$1 billion loan from Venezuela to help alleviate liquidity troubles in Ecuador. As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2007, Minister Patino said that Rodrigo Cabezas, his Venezuelan counterpart, offered the nation a loan of up to US$1 billion with a top interest rate of 7% with no preemptive conditions. "We do not need it for the time being. Whenever we require the kind offer from Venezuela, we will make them know," Minister Patino told Reuters. * * * As reported on Jan. 25, 2007, Fitch Ratings downgraded the long- term foreign currency Issuer Default Rating of Ecuador to 'CCC' from 'B-', indicating that default is a real possibility in the near term. In addition, these ratings were downgraded: -- Uncollateralized foreign currency bonds to 'CCC/RR4' from 'B-/RR4'; -- Collateralized foreign currency Par and Discount Brady bonds to 'CCC+/RR3' from 'B/RR3'; and -- Short-term foreign currency IDR to 'C' from 'B'. Fitch also affirmed the Country ceiling rating at 'B-'. * VENEZUELA: Sincor Acquisition Talks May Not End in 2007 --------------------------------------------------------- Talks between the Venezuelan government and French oil firm Total regarding the nationalization of Sincor may not end this year, El Universal reports, citing Total Chief Executive Officer Christophe de Margerie. Reuters relates that Sincor is one of the projects for heavy oil improvement in the Orinoco oil belt in southern Venezuela. Total owns 47% stake in the project, while Venezuelan state oil firm Petroleos de Venezuela owns 38%. Norwegian Statoil holds 15% in Sincor. Venezuela's President Hugo Chavez disclosed in January plans of nationalizing firms in the electricity sector as well as the oil projects foreign firms operate in the Orinoco River basin. The president said that those firms that were privatized would be nationalized. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. Fitch said the outlook on the ratings remains stable. * VENEZUELA: To Divide Loran Field with Trinidad & Tobago --------------------------------------------------------- The Venezuelan energy and oil ministry said in a statement that the country has agreed to divide the Loran field with Trinidad & Tobago. According to the ministry's statement, the Loran field straddles Venezuela and Trinidad Tobago. Loran holds an estimated 10 billion cubic feet of natural gas, of which 7.3 billion cubic feet is owned by Venezuela. The agreement with Trinidad & Tobago will give Venezuela about 73% of the natural gas asset. Business News Americas relates that the accord is part of a 2003 pact to negotiate ways to divide offshore gas properties to avoid conflicts between Venezuela and Trinidad & Tobago. US firm Chevron runs Loran as part of its Deltana Platform block 2 project, the report says. Meanwhile, Venezuela and Trinidad & Tobago also agreed that the Dragon gas field in Caribbean waters won't be included in the bilateral agreement. Venezuela then can begin drilling in the field when it wants, BNamericas states. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. Fitch said the outlook on the ratings remains stable. *********** 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 Santos, 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 * * *