/raid1/www/Hosts/bankrupt/TCRLA_Public/070226.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, February 26, 2007, Vol. 8, Issue 40
Headlines
A R G E N T I N A
ALABAMA TRADE: Trustee Verifies Proofs of Claim Until April 12
BANCO HIPOTECARIO: Reports 148% Increase in 2006 Consumer Loans
CLAIM SA: Trustee Verifies Proofs of Claim Until April 9
EL PASO: Closes US$4.135 Billion ANR Pipeline Asset Sale
GARBY SRL: Trustee Verifies Proofs of Claim Until April 27
NIKMAZE SA: Gets Court Approval to Reorganize Business
PLAPEL SA: Claims Verification Is Until May 7
TELEFONICA HOLDING: Fitch Withdraws Ratings After Debt Repayment
TRIAVET SA: Asks for Court Approval to Reorganize Business
WENDY'S INT: Inks US$300-Million Share Purchase Pact with Broker
B A R B A D O S
SR TELECOM: Will Redeem 10% Secured Debentures on March 6
B E R M U D A
GLOBAL CROSSING: GC Impsat Completes US$225MM Sr. Notes Offering
LESLIE W. WILSON: Proofs of Claim Filing Is Until March 7
METROMEDIA FIBER: Proofs of Claim Filing Is Until March 8
REFCO INC: Refco LLC Trustee Pays Cure Amounts Totaling US$38.3M
REFCO INC: LLC Trustee Pays US$9.6 Mil. in Exchange Memberships
SCOTTISH RE: Hovde Capital Opposes MassMutual-Cerberus Proposal
SEA CONTAINERS: Services Panel Selects Willkie Farr as Counsel
B O L I V I A
* BOLIVIA: Regulator to Transfer Adriatica's Client Portfolio
B R A Z I L
ALCATEL-LUCENT: Inks Cooperation Deal with NXP Semiconductors
ALCATEL-LUCENT: Inks Partnership Deal with Orange Business
BANCO BRADESCO: Board Wants Payment of Complimentary Dividends
BANCO BRADESCO: Regulator Fines Bank BRL8.4MM for Capital Raise
EMI GROUP: Awaits Formal Offer from Warner Music
EMI GROUP: Seeking Possible Alternatives to Warner Music's Offer
NOVELIS INC: To Create Environmental Preservation Area
PETROLEO BRASILEIRO: Reports Oil & Gas Production in January
SADIA SA: S&P Affirms BB Long-Term Corporate Credit Rating
C A Y M A N I S L A N D S
ASCEND MANAGED: Proofs of Claim Must be Filed by March 30
ASPECT DIVERSIFIED: Proofs of Claim Must be Filed by March 30
AZUR HOLDINGS: Final Shareholders Meeting Is on March 30
BUETHE CRABEL: Final Shareholders Meeting Is on March 30
BUETHE CRABEL: Proofs of Claim Must be Filed by March 30
CLINTON CONVERTIBLE: Proofs of Claim Must be Filed by March 30
CLINTON FIXED: Proofs of Claim Must be Filed by March 30
CONCORDIA MANAGED: Proofs of Claim Must be Filed by March 30
FUND INVESTMENTS: Proofs of Claim Must be Filed by March 27
INFOR GLOBAL: Moody's Affirms B3 Rating Due to Debt Refinancing
LYRA LTD: Final Shareholders Meeting Is on March 30
OPTIMAL JAPAN: Proofs of Claim Must be Filed by March 30
ORIGIN MANAGED: Proofs of Claim Must be Filed by March 30
SHARMAC MANAGED: Proofs of Claim Must be Filed by March 30
UT TECHNOLOGY: Proofs of Claim Must be Filed by March 30
C H I L E
NORSKE SKOGINDUSTRIER: Posts NOK3-Billion Net Loss for 2006
REVLON INC: Operating Unit Completes 8-5/8% Sr. Notes Redemption
C O L O M B I A
BRIGHTPOINT INC: Inks Agreement to Purchase Dangaard Telecom
C O S T A R I C A
HILTON HOTELS: Fights Accor for Newly Sold Macdonald Hotels
* COSTA RICA: Blames Arias' Spat with Chavez on Plant Closure
C U B A
* CUBA: Helps in Installation of 8 Power Generators in Nicaragua
* CUBA: Venezuelan Bank to Offer Funding for Travels to Nation
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Cuba Assists on Atlantic Oil Exploration
* DOMINICAN REPUBLIC: To Borrow Funds for Bani Aqueduct
E C U A D O R
PETROECUADOR: Accepting Bids for NatGas Project Until April 24
* ECUADOR: Will Decide on OPEC Membership in Second Quarter
G U A T E M A L A
BRITISH AIRWAYS: Orders Four Longhaul Boeing 777-200 ER Aircraft
G U Y A N A
PETROLEOS DE VENEZUELA: To Provide Guyana 50% of Its Oil Needs
J A M A I C A
DIGICEL GROUP: Prices Private Placement of 8-7/8% Senior Notes
DIGICEL LTD: Will Need US$240MM Yearly to Pay Bank Debt Interest
DYOLL INSURANCE: Coffee Farmers Hope for Quick Settlement
SUGAR COMPANY: Gets Five More Bidders for Auctioned Assets
SUGAR COMPANY: Must Stop Burning of Canes at Bernard Lodge
M E X I C O
ADVANCE FOOD: Moody's Places Ba3 Rating on New Senior Bank Loan
ADVANCE FOOD: S&P Assigns B+ Rating on US$315-Mil. New Debts
ADVANCED MARKETING: Court OKs Sale of PGW's Distribution Rights
ADVANCED MARKETING: Panel Seeks Court Nod on Traxi Retention
AMERICAN AXLE: Fitch Places BB Rating on New Sr. Notes Due 2017
AMERICAN AXLE: Moody's Puts Ba3 Rating on US$300-Mil. New Notes
AMERICAN AXLE: S&P Assigns BB Rating on US$300-Mil. Senior Notes
CABLEMAS SA: Alvarez Family Issues US$258-Mil. Notes to Televisa
DYNAMIC LEISURE: Inks Tour Operator Agreement with Hertz Rental
ENTRAVISION COMM: Revenues Climb to US$74.2MM in Fourth Quarter
GENERAL MOTORS: Inks US$1 Bil. Global Networking Deal with AT&T
NORTEL NETWORKS: Declares Preferred Share Dividends
ODYSSEY RE: Earns US$83.8 Million in Quarter Ended Dec. 31, 2006
ODYSSEY RE: Board Declares Preferred Share Dividends
SUNGARD DATA: Posts Adjusted Income of US$994M in Full Year 2006
N I C A R A G U A
* NICARAGUA: Cuba & Venezuela Installs Eight Power Generators
P A N A M A
CABLE & WIRELESS: Trustees Sell 30,118 Ordinary Shares
CHIQUITA BRANDS: Incurs US$42 Mil. Net Loss in 2006 Fiscal Year
P E R U
BIO-RAD LABS: Board Names Louis Drapeau as Director
P U E R T O R I C O
INTERLINE BRANDS: Sales Rise 25% to US$1 Bil. in Full Year 2006
U R U G U A Y
ROYAL & SUNALLIANCE: Gets Conditional Approval to Sell U.S. Unit
V E N E Z U E L A
DAIMLERCHRYSLER: Volkswagen & Renault-Nissan Not Interested
PETROLEOS DE VENEZUELA: Western Division Output Increases
* VENEZUELA: Oil Shipments to U.S. Drop to 1.14M Barrels Daily
* VENEZUELA: State Bank to Offer Funding for Travels to Cuba
* BOOK REVIEW: Life, Death and the Law
- - - - -
=================
A R G E N T I N A
=================
ALABAMA TRADE: Trustee Verifies Proofs of Claim Until April 12
--------------------------------------------------------------
Mabel Alba Herrera, the court-appointed trustee for Alabama
Trade S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until April 12, 2007.
Ms. Herrera will present the validated claims in court as
individual reports on May 28, 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 Alabama Trade 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 Alabama Trade's
accounting and banking records will be submitted in court on
July 10, 2007.
Ms. Herrera is also in charge of administering Alabama Trade's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Mabel Alba Herrera
Rodriguez PeAņa 694
Buenos Aires, Argentina
BANCO HIPOTECARIO: Reports 148% Increase in 2006 Consumer Loans
---------------------------------------------------------------
Banco Hipotecario SA said in its latest earnings release that
consumer loan portfolio has increased 148% to ARS394 million in
2006, compared to ARS159 million in 2005.
Business News Americas relates that Banco Hipotecario's total
private sector loans increased 48% to ARS2.94 billion in 2006,
compared to 2005.
BNamericas underscores that due to strong loan growth and
improved efficiency, Banco Hipotecario's net profit increased
84% to ARS135 million in the fourth quarter of 2006 and 36% to
ARS344 million for the full year 2006.
According to BNamericas, Banco Hipotecario's return on equity
increased to 14.6% in 2006, from 12.3% in 2005. Its return on
assets increased to 3.9% from 2.9%.
Banco Hipotecario's past-due loan ratio dropped to 4.8% in 2006,
from 7.5% in 2005, BNamericas states.
Headquartered in Buenos Aires, Argentina, Banco Hipotecario SA
-- http://www.hipotecario.com.ar-- is an Argentinean commercial
bank and specialty mortgage provider. Banco Hipotecario'
business lines include credit lines for consumers, short-term
financing for exporting companies, factoring services, deposit
accounts, purchase and sale of foreign currency, custodial
services, safe deposit box rentals, payroll bank accounts,
securities brokerage services and sales of insurance through
authorized agents and companies. The bank launched this new
series of products and services as an alternative to its
mortgage loans business, which as a result of the economic
crisis, came to a temporary halt in 2002. In late 2003, and in
the light of the favorable trends shown by economic variables,
Banco Hipotecario started to offer new housing mortgage loans.
The bank's subsidiaries consist of BHN Sociedad de Inversion
Sociedad Anonima.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 22, 2007, Moody's Investors Service placed these ratings on
Banco Hipotecario SA:
-- long-term foreign currency deposit rating of Caa1, outlook
to positive from stable; and
-- long-term national scale foreign currency deposit rating
of Ba1.ar, outlook to positive from stable.
CLAIM SA: Trustee Verifies Proofs of Claim Until April 9
--------------------------------------------------------
Donato Antonio Sarcuno, the court-appointed trustee for Claim
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until April 9, 2007.
Mr. Sarcuno will present the validated claims in court as
individual reports on May 22, 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 Claim S.A. 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 Claim S.A.'s
accounting and banking records will be submitted in court on
July 4, 2007.
Mr. Sarcuno is also in charge of administering Claim S.A.'s
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Donato Antonio Sarcuno
Bdo. de Irigoyen 330
Buenos Aires, Argentina
EL PASO: Closes US$4.135 Billion ANR Pipeline Asset Sale
--------------------------------------------------------
El Paso Corporation has completed the sale of ANR Pipeline
Company, its Michigan storage assets, and its 50% interest in
Great Lakes Gas Transmission to TransCanada Corporation and TC
PipeLines, LP for US$4.135 billion. The sale includes the
assumption of US$744 million of debt as of Dec. 31, 2006 --
US$269 million of which has been retired.
"We are very pleased with the timely closing of this important
transaction," said Doug Foshee, president and chief executive
officer of El Paso Corporation. "This sale restores our
financial flexibility and improves our credit statistics to a
level that is at or near investment grade, while maintaining the
company's earnings outlook."
Headquartered in Houston, Texas, El Paso Corp. (NYSE:EP)
-- http://www.elpaso.com/-- provides natural gas and related
energy products in a safe, efficient, and dependable manner.
The company owns North America's largest natural gas pipeline
system and one of North America's largest independent natural
gas producers. The company has operations in Argentina.
* * *
As reported in the Troubled Company Reporter on Oct. 17, 2006,
Moody's Investors Service revised its corporate family rating on
El Paso Corp. to B2 in connection with its implementation of
the new Probability-of-Default and Loss-Given-Default rating
methodology for the broad energy midstream sector.
GARBY SRL: Trustee Verifies Proofs of Claim Until April 27
----------------------------------------------------------
Norma Elida Fistzen, the court-appointed trustee for Garby
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until April 27, 2007.
Ms. Fistzen will present the validated claims in court as
individual reports on June 12, 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 Garby 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 Garby S.R.L.'s
accounting and banking records will be submitted in court on
Aug. 8, 2007.
Ms. Fistzen is also in charge of administering Garby S.R.L.'s
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Norma Elida Fistzen
Viamonte 1446
Buenos Aires, Argentina
NIKMAZE SA: Gets Court Approval to Reorganize Business
------------------------------------------------------
Nikmaze S.A. will begin reorganization following the approval of
its petition by a court in Buenos Aires. The opening of the
reorganization will allow the company to negotiate a settlement
with its creditors in order to avoid a straight liquidation.
Estudio Penna y Steinhaus 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.
The trustee is also required by the court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. The report will be presented
in court on June 27, 2007.
An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on Oct. 3, 2007.
The trustee can be reached at:
Estudio Penna y Steinhaus
Defensa 649
Buenos Aires, Argentina
PLAPEL SA: Claims Verification Is Until May 7
---------------------------------------------
Miriam Colmegna, the court-appointed trustee for Plapel SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until May 7, 2007.
Under the Argentine bankruptcy law, Ms. Colmegna is required to
present the validated claims in court as individual reports.
Court No. 22 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 Plapel SA
and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Colmegna will also submit a general report that contains an
audit of Plapel SA's accounting and banking records. The report
submission dates have not been disclosed.
Plapel SA was forced into bankruptcy at the behest of
Cooperativa Financoop Ltda., whom it owes US$1,094.00.
Clerk No. 43 assists the court in the proceeding.
The debtor can be reached at:
Plapel SA
Amenabar 3455
Buenos Aires, Argentina
The trustee can be reached at:
Miriam Colmegna
Sarmiento 1179
Buenos Aires, Argentina
TELEFONICA HOLDING: Fitch Withdraws Ratings After Debt Repayment
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Telefonica Holding de
Argentina S.A., and simultaneously withdrawn them due to the
full repayment of all outstanding notes:
-- Foreign currency Issuer Default Rating of 'B+';
-- Local currency IDR of 'B+'; and
-- National scale rating of 'A+(arg)'.
Telefonica Holding does not anticipate any future debt issues at
the holding company level and therefore Fitch will no longer
provide its coverage for the company.
Fitch will continue to maintain and provide analytical coverage
for Telefonica Holding's operating company Telefonica de
Argentina S.A., and currently rates Telefonica de Argentina:
Telefonica de Argentina (all with a Stable Outlook)
-- International scale local IDR of 'BB-';
-- International scale foreign currency IDR of 'B+'; and
-- National scale rating of 'AA-(arg)'.
Telefonica de Argentina S.A. is the incumbent local exchange
carrier in the southern region of Argentina providing local
service, long distance, broadband services, and dial-up Internet
access with revenues and EBITDA during 2006 of approximately
US$1,216 million and US$593 million, respectively. Telefonica
S.A. of Spain controls, either directly or indirectly, 98% of
Telefonica de Argentina. Telefonica Holding de Argentina S.A.
controls 50% of Cointel, which in turn controls 64.8% of
Telefonica de Argentina S.A.
TRIAVET SA: Asks for Court Approval to Reorganize Business
----------------------------------------------------------
Triavet SA, a company operating in Buenos Aires, has requested
for reorganization after failing to pay its liabilities since
Jan. 16, 2007. The company reported US$2,441,667.10 in total
assets and US$3,051,723.17 in total liabilities.
The reorganization petition, once approved by the court, will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
The case is pending before Court No. 18, with assistance from
Clerk of Court No. 36.
The debtor can be reached at:
Triavet SA
Esmeralda 684
Buenos Aires, Argentina
WENDY'S INT: Inks US$300-Million Share Purchase Pact with Broker
----------------------------------------------------------------
Wendy's International Inc. has entered into an agreement to
purchase up to US$300 million of its common shares from a
broker-dealer in an accelerated share repurchase transaction as
part of the company's plan to return capital to its
shareholders. The common shares purchased will be placed into
treasury to be used for general corporate purposes.
The Board of Directors of the company had approved a share
repurchase program of up to 35.4 million shares. As part of
that authorization, the company repurchased 22.4 million shares
for US$803.4 million in a modified "Dutch Auction" tender offer
in the fourth quarter of 2006. The company repurchased a total
of 26.2 million shares during 2006.
"The ASR enables us to utilize our strong balance sheet to
return capital to shareholders in an efficient manner," said
Chief Executive Officer and President Kerrii Anderson. "We are
confident [that the company's] business will continue to produce
improving results and generate positive cash flow as we execute
our strategic plan, revitalize the Wendy's brand and improve
restaurant operations across the entire system."
The number of shares that the company may repurchase pursuant to
the ASR will not be known until conclusion of the transaction,
which is expected to occur during the company's first quarter;
however, the company expects to repurchase up to approximately
9 million shares. The price per share to be paid by the company
will be determined by reference to the weighted average price
per share actually paid by the broker-dealer to purchase shares
during a hedge period expected to be approximately one month,
subject to a cap and a floor.
Headquartered in Dublin, Ohio, Wendy's International Inc.
-- http://www.wendysintl.com/-- and its subsidiaries operate,
develop, and franchise a system of quick service and fast casual
restaurants in the United States, Canada, Mexico, Argentina,
among others.
* * *
As reported in the Troubled Company Reporter on Oct. 17, 2006,
Moody's Investors Service held its Ba2 Corporate Family Rating
for Wendy's International Inc.
Additionally, Moody's held its Ba2 ratings on the company's
US$200 million 6.25% Senior Unsecured Notes Due 2011 and US$225
million 6.2% Senior Unsecured Notes Due 2014. Moody's assigned
the debentures an LGD4 rating suggesting noteholders will
experience a 54% loss in the event of default.
===============
B A R B A D O S
===============
SR TELECOM: Will Redeem 10% Secured Debentures on March 6
---------------------------------------------------------
SR Telecom will redeem its outstanding 10% secured convertible
debentures due Oct. 15, 2011. The debentures will be redeemed
on March 6, 2007, for an amount equal to US$1,038.63 per
US$1,000 of principal amount, representing the principal amount
plus US$38.63 of accrued and unpaid interest to the redemption
date.
As of Feb. 14, 2007, there is US$2,650,372 principal amount of
debentures outstanding out of US$75,539,018 originally issued on
Aug. 22, 2005. The balance of the debentures was previously
converted into common shares in 2006.
Up to the business day immediately preceding March 6, 2007,
debenture holders may elect to convert all or a portion of the
outstanding principal amount of debentures that they hold,
together with accrued and unpaid interest, into common shares at
an effective amended rate of C$0.15 per common share. Debenture
holders can complete and deliver a conversion notice to
Computershare Trust Company of Canada, as indicated in the
redemption notice.
"This redemption of SR Telecom's outstanding debentures is
another important step in our renewal process," said Serge
Fortin, SR Telecom's president and chief executive officer. "It
allows us to further streamline our financial structure through
the elimination of the company's remaining second-ranking
creditors while freeing up restricted cash on our balance
sheet."
Over the last several months, SR Telecom has moved aggressively
to re-establish itself as an organization that creates value for
shareholders, employees, partners and customers. The company
has made substantial progress in its restructuring initiatives;
solidified its financial footing with support from its
shareholders; and refocused its energies on core business
activities with the sale of its telecommunications service
provider subsidiary in Chile, Comunicacion y Telefonia Rural.
SR Telecom remains committed to the high-growth global WiMAX
market, where it expects to play an important role as the market
develops.
About SR Telecom
Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) --
http://www.srtelecom.com/-- delivers broadband wireless access
(BWA) solutions that enable service providers to deploy voice,
Internet and next-generation services in urban, suburban and
remote areas. The company has offices in Mexico, Barbados and
Brazil.
SR Telecom's long-term credit rating carries Standard & Poor's
Ratings Services' D rating.
=============
B E R M U D A
=============
GLOBAL CROSSING: GC Impsat Completes US$225MM Sr. Notes Offering
----------------------------------------------------------------
GC Impsat Holdings I Plc, a wholly owned subsidiary of Global
Crossing Limited, has successfully closed its reported offering
of US$225 million in aggregate principal amount of its 9.875%
senior notes due 2017.
The proceeds of the offering will be used to finance a portion
of the purchase price of Global Crossing's proposed acquisition
of Impsat Fiber Networks, Inc. The company deposited the
proceeds of the offering into an escrow account pending
consummation of the acquisition. If the merger agreement is
terminated or the acquisition is not consummated by
May 25, 2007, GC Impsat Holdings I Plc will be required to
redeem the notes with the proceeds held in the escrow account.
The notes were offered to qualified institutional buyers under
Rule 144A of the Securities Act of 1933, as amended, and outside
the United States in compliance with Regulation S under the Act.
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.
LESLIE W. WILSON: Proofs of Claim Filing Is Until March 7
---------------------------------------------------------
Leslie W. Wilson Cycle Shop Ltd.'s creditors are given until
March 7, 2007, to prove their claims to Jennifer Y. Fraser, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Leslie W. Wilson's shareholders agreed on Feb. 15, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
METROMEDIA FIBER: Proofs of Claim Filing Is Until March 8
---------------------------------------------------------
Metromedia Fiber Network (Bermuda) Ltd.'s creditors are given
until March 8, 2007, to prove their claims to Jennifer Y.
Fraser, the company's liquidator, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Metromedia Fiber's shareholders agreed on Feb. 16, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
REFCO INC: Refco LLC Trustee Pays Cure Amounts Totaling US$38.3M
----------------------------------------------------------------
Pursuant to an order authorizing him to (i) assume and perform
an Acquisition Agreement with Man Financial, Inc., (ii) sell
regulated futures commission merchant business, and (iii) assume
and assign related executory contracts to Man Financial, Albert
Togut, the Chapter 7 Trustee overseeing the liquidation of
Refco, LLC's estate, reports that he has paid $38,354,067 in
cure amounts on account of more than 700 contracts:
Date Description Amount
---- ----------- ------
11/28/05 Pioneer Futures-Viola Contract Cure US$27,225,000
03/17/06 Currenex Cure Payment 1,422,137
04/28/06 Broker Cure Payments 5,397,005
05/23/06 Nyfix Overseas Cure Payment 251,196
06/02/06 Gombas Cure Payment 319,899
07/07/06 Broker Cure Payments 759,591
09/21/06 Broker Cure Payments 2,973,855
Various Dates Property Lease Cure Payments 5,384
Refco LLC is a debtor-affiliate of Refco Inc.
A schedule detailing all counterparties to assumed contracts and
leases and the Cure Amounts paid is available at no charge at
http://ResearchArchives.com/t/s?1a1e
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases. (Refco Bankruptcy News, Issue No. 57; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
REFCO INC: LLC Trustee Pays US$9.6 Mil. in Exchange Memberships
---------------------------------------------------------------
Albert Togut, the Chapter 7 Trustee overseeing the liquidation
of the Refco LLC estate, discloses that more than 90 claims were
satisfied from the US$9,601,267 proceeds of the Debtor's
exchange memberships in accordance with an order authorizing him
to assume and perform the Acquisition Agreement with Man
Financial, Inc.
To facilitate the transfer of Refco LLC's Exchange Memberships
to Man Financial free and clear of liabilities pursuant to the
Acquisition Agreement, the Chapter 7 Trustee posted deposits
with commodity exchanges totaling approximately US$87,100,000.
The deposits served as a proxy for the exchange memberships that
were transferred to Man Financial, and secured payment of any
claims that were made in accordance with applicable exchange
rules.
Consequently, a number of exchanges and exchange members
asserted claims against the deposits that had been posted by the
Chapter 7 Trustee.
The Chapter 7 Trustee states that all claims asserted at
commodity exchanges have now been resolved, and all claims
allowed at the exchanges have been paid from the proceeds of the
deposits used to secure the transfer of the Exchange Memberships
to Man Financial free and clear of liens and liabilities.
The consolidated amounts paid for Exchange Fees & Member Claims
are:
Fee Type Exchange Amount
-------- -------- ------
Exchange Fees Chicago Board Options Exchange US$1,369,273
Member Claims Chicago Board Options Exchange 765,869
Exchange Fees Chicago Mercantile Exchange 4,261,488
Member Claims Chicago Mercantile Exchange 1,200,888
Exchange Fees New York Mercantile Exchange, Inc. 1,815,810
Exchange Fees New York Board Of Trade 26,937
Exchange Fees Kansas City Board of Trade 23,444
Member Claims Kansas City Board of Trade 128,794
Exchange Fees Mineapolis Grain Exchange 8,763
Refco LLC is a debtor-affiliate of Refco Inc.
A detailed report of claims paid from the deposits used to
secure the transfer of Exchange Memberships is available at no
charge at http://ResearchArchives.com/t/s?1a1f
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases. (Refco Bankruptcy News, Issue No. 57; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
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
Ltd. 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.
* * *
As of Feb. 15, Scottish Re's Senior Unsecured Debt carry Moody's
Ba3 rating and its Preferred Stock carry Moody's B2 rating. The
company's Long-Term Local Issuer Credit rating carry Standard &
Poor's B rating.
Fitch rates the company's Long-Term Issuer Default at BB; Senior
Unsecured Debt at BB-; and Preferred Stock at B+.
A.M. Best rates the company's Long-Term Issuer Credit at b-.
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 case 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 Ltd., 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
Web site: http://www.willkie.com/
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 expires
on June 12, 2007.
=============
B O L I V I A
=============
* BOLIVIA: Regulator to Transfer Adriatica's Client Portfolio
-------------------------------------------------------------
Superintendencia de Pensiones, Valores y Seguros -- the Bolivian
pension, securities and insurance regulator -- will transfer
intervened property and casualty insurance firm Adriatica de
Seguros' client portfolio to another insurer, news daily El
Deber reports.
Business News Americas relates that Adriatica de Seguros was
intervened on Jan. 12, 2007.
The regulator fined Adriatica de Seguros 10 times over the past
couple of years, BNamericas states.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
ALCATEL-LUCENT: Inks Cooperation Deal with NXP Semiconductors
-------------------------------------------------------------
Alcatel-Lucent and NXP Semiconductors signed an agreement
strengthening their collaboration in the framework of Alcatel-
Lucent's Unlimited Mobile TV solution.
This solution will allow the delivery of broadcast mobile TV in
the S-band (2.2GHz) based on the forthcoming DVB-SH standard.
NXP's reception modules family for UHF and L-Band will be
extended to the S-Band. This will enable users to further
upgrade their existing media players, smartphones and other
portable or mobile devices to support digital Mobile TV
reception in the S-Band.
The delivery of the first release of NXP's S-Band-compatible
Radio Frequency chipset, currently under development, is
scheduled before June 2007. Both companies agreed to develop
plans to market NXP DVB-SH chipsets in line with market
expectations.
Furthermore, based on their current contribution to the
definition of the DVB-SH Mobile TV standard in the framework of
the DVB Project, both companies will collaborate to enlarge the
ecosystem associated with the forthcoming standard through
selected co-marketing activities spanning the mobile industry
and the TV broadcast industry at large.
"We are happy to collaborate with Alcatel-Lucent to accelerate
the availability of chipsets in the S-Band to enable the advent
of mass market Mobile TV," GertJan Kaat, Senior Vice-President
and General Manager, Mobile & Personal Business Unit of NXP
Semiconductors declared. "As one of the biggest customer-
focused semiconductor brands in the industry, NXP is committed
to deliver better sensory experiences for mobile communications
and to take advantage of the promising business potential
brought about by Alcatel-Lucent's solution in the S-Band."
"Alcatel-Lucent's Unlimited Mobile TV solution based on the
forthcoming DVB-SH standard is clearly gaining strong momentum.
We are happy to be in a position to profit from NXP's RF chipset
technology expertise and market-leading baseband performance,"
Olivier Coste, President of Alcatel-Lucent's mobile broadcast
activities, added. "This strengthened partnership will allow us
to further enlarge the reach of our solution onto all types of
mobile terminals, thus enriching the Mobile TV users' experience
on a global basis."
About NXP Semiconductors
NXP is a top 10-semiconductor company founded by Philips more
than 50 years ago. Headquartered in the Netherlands, the
company has 37,000 employees working in 26 countries across the
world. NXP creates semiconductors, system solutions and
software that deliver better sensory experiences in mobile
phones, personal media players, TVs, set-top boxes,
identification applications, cars and a wide range of other
electronic devices.
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.
ALCATEL-LUCENT: Inks Partnership Deal with Orange Business
----------------------------------------------------------
Alcatel-Lucent and Orange Business Services inked a global
agreement that enables enterprises around the world to harness
the power and economics of IP-based communications solutions as
part of an overall network and business transformation effort.
With mainstream adoption of IP technologies underway today,
industries are changing the way they use communications to
competitively transform their businesses. Together, Orange and
Alcatel-Lucent are partnering to help drive this transformation.
Both companies will provide enterprises with a comprehensive set
of end-to-end business critical solutions, supported from design
to global implementation, which will enable businesses to
utilize the new technologies available to drive new business
opportunities, improve employee productivity and deliver
enhanced customer service.
Key services emphasized in this agreement include:
* Business telephony services
* IP VPNs
* Fixed-mobile convergence solutions
* Unified Communication software applications
* Contact centers with multimedia traffic processing
Customers of Orange will have the choice to deploy end-to-end
Alcatel-Lucent technologies as either a traditional network that
is owned and operated by the enterprise, or as part of a Managed
Communications Services model where the technologies are owned
and managed by Orange as part of an innovative service offering.
About Orange Business Services
Orange Business Services represents the business communications
solutions and services provided by the France Telecom Group as
of June 1, 2006. They were previously sold under the France
Telecom, Orange, Equant, Etrali, Almerys, EGT, Expertel
Consulting, France Telecom Intelmatique, SETIB and Solicia
brands. The offers include converged voice, data and mobile
services as well as IT expertise and managed services, all
designed to transform business processes and improve
productivity. Orange Business Services is present in 166
countries and territories and serves customers in 220.
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 BRADESCO: Board Wants Payment of Complimentary Dividends
--------------------------------------------------------------
Banco Bradesco S.A.'s board of executive officers, in a meeting
held last week, decided to propose to the board of directors,
which shall resolve on a meeting on March 5, 2007, the payment
to the company's stockholders of complementary dividends, to the
Interest on Own Capital and Dividends related to the fiscal year
2006, in the amount of BRL0.038062452 per common stock and
BRL0.041868697 per preferred stock, benefiting the stockholders
registered in the Bank's books on that date.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco --
http://www.bradesco.com.br/-- prides itself on serving low-and
medium-income individuals in Brazil since the 1960s. Bradesco
is Brazil's largest private bank, with more than 3,000 banking
branches, and also a leader in insurance and private pension
management. Bradesco has branches throughout Brazil as well as
one in New York, and Japan. Bradesco offers Internet banking,
insurance, pension plans, annuities, credit card services
(including football-club affinity cards for the soccer-mad
population), and Internet access for customers. The bank also
provides personal and commercial loans, along with leasing
services.
* * *
As reported on Jan. 26, 2007, Fitch Ratings placed these ratings
assigned to Banco BMC SA on Rating Watch Positive:
-- Local foreign currency long-term Issuer Default Rating
'B-';
-- Foreign currency long-term IDR 'B-';
-- Local currency short-term 'B';
-- Fixed-rate notes issuance maturing 2008 'B-/RR4';
-- Support '5';
-- National Short-Term rating 'F3(bra)'; and
-- National long-term rating 'BBB-(bra)'.
In addition, Fitch affirmed BMC's:
-- Individual rating at 'D/E'; and
-- Foreign currency short-term at 'B'.
At the same time, Fitch also affirmed these IDRs on Bradesco,
with a Stable Outlook:
-- Long-term foreign currency at 'BB+';
-- Long-term local currency at 'BBB-';
-- Individual rating at 'B/C';
-- Local currency short-term at 'F3';
-- Short-term at 'B';
-- Support rating of '4';
-- National short-term rating 'F1+(bra)'; and
-- National long-term rating 'AA+(bra)'.
As reported on Nov. 30, 2006, Moody's Investors Service upgraded
these ratings of Banco Bradesco SA:
-- long-term foreign currency deposits to Ba3 from B1; and
-- long- and short-term global local currency deposit
ratings to A1/Prime from A3/Prime-2.
Moody's said the ratings outlook is stable.
BANCO BRADESCO: Regulator Fines Bank BRL8.4MM for Capital Raise
---------------------------------------------------------------
Published reports say that the Brazilian securities Comissao de
Valores Mobiliarios has fined Banco Bradesco SA BRL8.4 million.
for breaching rules governing capital increases in 1998.
Banco Bradesco can file an appeal on the regulator's decision
through the finance ministry, Business News Americas reports.
BNamericas did not provide further details regarding Banco
Bradesco's capital increase.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco --
http://www.bradesco.com.br/-- prides itself on serving low-and
medium-income individuals in Brazil since the 1960s. Bradesco
is Brazil's largest private bank, with more than 3,000 banking
branches, and also a leader in insurance and private pension
management. Bradesco has branches throughout Brazil as well as
one in New York, and Japan. Bradesco offers Internet banking,
insurance, pension plans, annuities, credit card services
(including football-club affinity cards for the soccer-mad
population), and Internet access for customers. The bank also
provides personal and commercial loans, along with leasing
services.
* * *
As reported on Jan. 26, 2007, Fitch Ratings placed these ratings
assigned to Banco BMC SA on Rating Watch Positive:
-- Local foreign currency long-term Issuer Default Rating
'B-';
-- Foreign currency long-term IDR 'B-';
-- Local currency short-term 'B';
-- Fixed-rate notes issuance maturing 2008 'B-/RR4';
-- Support '5';
-- National Short-Term rating 'F3(bra)'; and
-- National long-term rating 'BBB-(bra)'.
In addition, Fitch affirmed BMC's:
-- Individual rating at 'D/E'; and
-- Foreign currency short-term at 'B'.
At the same time, Fitch also affirmed these IDRs on Bradesco,
with a Stable Outlook:
-- Long-term foreign currency at 'BB+';
-- Long-term local currency at 'BBB-';
-- Individual rating at 'B/C';
-- Local currency short-term at 'F3';
-- Short-term at 'B';
-- Support rating of '4';
-- National short-term rating 'F1+(bra)'; and
-- National long-term rating 'AA+(bra)'.
As reported on Nov. 30, 2006, Moody's Investors Service upgraded
these ratings of Banco Bradesco SA:
-- long-term foreign currency deposits to Ba3 from B1; and
-- long- and short-term global local currency deposit
ratings to A1/Prime from A3/Prime-2.
Moody's said the ratings outlook is stable.
EMI GROUP: Awaits Formal Offer from Warner Music
------------------------------------------------
EMI Group PLC is yet to receive a formal offer from Warner Music
Group Corp. for its Board to consider after confirming Tuesday
of a takeover approach from its U.S. rival, according to
published reports.
According to EMI, proposals will be considered with a particular
focus on conditionality, the regulatory and operational risk
profile, and on valuation in relation to the company's stand
alone value and the value creation available from a combination.
Warner approached EMI on Jan. 24, after it obtained the support
of Brussels-based Impala, a trade group for independent European
record labels ending its opposition to a Warner-EMI merger,
Aaron Patrick and Ethan Smith writes for the Wall Street
Journal.
Warner CEO Edgar Bronfman Jr. has been negotiating with Impala
for almost a year to allow Warner's purchase of EMI. To obtain
Impala's support, Mr. Bronfman agreed to sell parts of combined
EMI-Warner to Impala's members and to provide funding to a new
licensing agency for independent labels, WSJ reported citing
people familiar with the situation.
According to the report, the European Commission will decide on
whether an EMI-Warner merger is anticompetitive but Impala's
support will make approval possible. Antitrust authorities in
the U.S are not expected to object because EMI does not have a
strong position there.
About EMI
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20. The group has operations in Brazil,
China, and Hungary. The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.
At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.
* * *
On Jan. 15, Moody's Investors Service downgraded EMI Group Plc's
Corporate Family and senior debt ratings to Ba3 from Ba2. All
ratings remain under review for possible further downgrade.
As reported in the TCR-LA on Feb. 19, Standard & Poor's Ratings
Services kept the U.K.-based music major EMI Group PLC's ratings
at BB-/Watch Neg/B, after the company announced it expects
revenues in its recorded music division to decline by 15% in the
fiscal year ended March 31, 2007, at constant currencies. The
ratings also remain on CreditWatch with negative implications,
where they were placed on Feb. 5, 2007.
EMI GROUP: Seeking Possible Alternatives to Warner Music's Offer
----------------------------------------------------------------
EMI Group Plc is in talks with One Equity Partners and other
private equity firms over potential alternatives to Warner Music
Group Corp.'s US$6 billion offer for the U.K. music group,
Bloomberg News reports, citing the Financial Times.
According to Bloomberg, unidentified people familiar with the
matter told the FT that no firm offers appear imminent from the
companies as Warner and other suitors are demanding the right to
conduct extensive research on EMI's operations after the company
issued two profit warnings since the start of the year.
Regulatory Risks
EMI still believes that a merger with Warner could face
regulatory issues despite its rival's work convincing the
independent music body IMPALA that the merger would benefit the
music sector, Nic Fildes of The Independent reports.
According to The Independent, EMI's board has sent a formal
letter to Warner Music saying that it would consider a proposal
dependent on the price on offer and whether the merger could be
achieved. Warner Music approached EMI about a possible
transaction last month, but a formal offer is said to be weeks
away following EMI's profit warning last week, the report said.
EMI's concern on regulatory risks relates to the European
Commission's evaluation of its original clearance of the 2004
merger between Sony and BMG after a complaint from IMPALA that
the merger has stifled competition. The Commission is expected
to reveal its findings next week after further meetings with
IMPALA, the source said.
Warner Music Says Offer Will Be in Cash
As reported yesterday in the Troubled Company Reporter, Warner
Music clarified in a press statement that its shareholders will
not be required to notify their interests in Warner securities
under Rule 8 of the U.K. Takeover Code relating to dealings by
interested persons in its relevant securities.
Warner Music confirmed that any possible offer for EMI Group is
likely to be solely in cash.
As a further result of the clarification, Warner will not be
required to disclose details under Rule 2.10 of the UK Takeover
Code relating to the number of its relevant securities in issue.
Warner Music also confirmed that it has approached EMI Group
about a possible acquisition of its entire equity on
Jan. 24, 2007, after it obtained the Independent Music
Publishers and Labels Association's agreement to support it
before the European Commission and other relevant regulatory
authorities.
If Warner Music were to make an offer for EMI Group within the
meaning of the U.K. Takeover Code, Warner Music has agreed with
IMPALA to implement some measures, including:
* providing specified funding for (but taking no equity
participation in) the recently announced Merlin initiative,
the new global digital rights licensing platform established
by the independent music labels to represent the world's
independent music sector;
* ensuring the divestiture of certain recorded music assets to
reinforce the market power of the independent sector; and
* pursuing various other behavioral commitments, which have
the aim of benefiting the recorded music market as a whole
and, in particular, the independent music sector.
By setting a new framework for the relationship between a
combined Warner Music and EMI Group and the independent music
sector, Warner Music believes that the agreement reached with
IMPALA and the measures envisaged under it improves the
prospects for regulatory approval of WMG and EMI's combination.
The agreement between Warner and IMPALA does not require IMPALA
to change its position in relation to any other pending
regulatory and legal proceedings. IMPALA will maintain its
position that the Sony/BMG and Universal/BMG transactions
continue to raise competition issues unless suitable remedies
are offered.
Warner believes that there is a compelling strategic,
commercial, and financial logic in a combination of the two
companies and that such a combination should maximize benefits
for the shareholders of both companies.
Warner's approach to EMI, however, remains in the preliminary
stages and there can be no certainty that the discussions will
result in any specific transaction.
About IMPALA
The Independent Music Publishers and Labels Association was
established in April 2000 as a non-profit making organization
with the purpose of ensuring assistance and fair market access
to independent record companies and music publishers.
IMPALA has an all-independent membership, which represents the
interests of the independent music sector. IMPALA members
include main independent companies such as Beggars Group (UK),
!K7 (Germany), Epitaph (US/NL), Naive (France), PIAS Group
(Belgium), Wagram (France), as well as national trade
associations from the UK (AIM), France (UPFI), Germany (VUT),
Spain (UFI), Italy (PMI), Denmark (DUP), Norway (FONO), Israel
(PIL), Sweden (SOM), and the Catalonian association APECAT.
About Warner Music Group
Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/--
became the only stand-alone music company to be publicly traded
in the United States in May 2005 that operates through numerous
international affiliates and licensees in more than 50
countries. Warner Music is home to a collection of record
labels in the music industry including Asylum, Atlantic, Bad
Boy, Cordless, East West, Elektra, Lava, Maverick, Nonesuch,
Reprise, Rhino, Rykodisc, Sire, Warner Bros., and Word.
About EMI Group
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20. The group has operations in China,
Brazil, and Hungary. The group employs over 6,600 people.
Revenues in 2005 were near GBP2 billion and operating profit
generated was over GBP225 million.
EMI Music operates the world famous recording facilities Abbey
Road Studios in London and Capitol Studios in Los Angeles.
* * *
As reported in the Troubled Company Reporter on Feb. 7, 2007,
Standard & Poor's Ratings Services lowered its long-term
corporate credit and senior unsecured debt ratings on U.K.-based
music group EMI Group PLC to 'BB-' from 'BB'. The 'B' short-
term rating was affirmed. At the same time, the long-term
corporate credit rating and debt ratings were put on CreditWatch
with negative implications.
NOVELIS INC: To Create Environmental Preservation Area
------------------------------------------------------
The Minas Gerais state government has allowed Novelis Inc. to
create an environmental preservation area, news daily O Estado
de S Paulo reports.
According to Estado de S, the 190-hectare area owned by Novelis
is near two state preservation units.
Business News Americas relates that Novelis is considering
whether to turn the area over to scientific research.
Novelis government relations manager Mauricio Martins told
BNamericas, "Another alternative would be to set up a structured
environmental education program."
Novelis has bauxite, primary aluminum and rolled products
complexes in Brazil. However, these complexes will be acquired
by Hindalco Industries for US$6 billion, including a
US$2.4-billion debt, BNamericas states.
Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America. The
company operates in 11 countries and has approximately 13,000
employees. Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.
Novelis South America operates two rolling plants and primary
production facilities in Brazil. The company's Pindamonhangaba
rolling and recycling facility in Brazil is the largest aluminum
rolling and recycling facility in South America and the only one
capable of producing can body and end stock. The plant recycles
primarily used beverage cans, and is engaged in tolling recycled
metal for its customers.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Fitch Ratings placed the Issuer Default Ratings
or IDR of 'B' for Novelis Inc. and its subsidiary Novelis Corp.
on Rating Watch Negative. The company's senior secured bank
debt ratings and senior unsecured debt ratings that were
affirmed are:
Novelis Inc.
-- Senior secured revolver and term loan at 'BB/
Recovery Rating (RR) 1'; and
-- Senior unsecured notes at 'B/RR4'.
Novelis, Corp.
-- Senior secured revolver and term loan B at 'BB/RR1'.
PETROLEO BRASILEIRO: Reports Oil & Gas Production in January
------------------------------------------------------------
Petrobras' oil and natural gas production in January 2007, in
Brazil and abroad, averaged 2,284,160 barrels of oil equivalent
per day. This result is 2.2% below the previous month's, but
0.8% above January 2006.
Only taking domestic fields into account, the average oil & gas
production reached 2,056,093 boe per day, 2.1% more than a year
ago, and 2.3% less than in December 2006, i.e., 2,105,182 boe.
In this same unit, oil & natural gas production in the eight
countries where Petrobras has assets topped-out at 228,067
barrels per day, 1.0% less than last month.
In January, oil production in Brazilian fields summed-up to
1,785,690 barrels per day, on average, 2.5% less than the volume
lifted in December 2006 (1,832,148 bpd). The 46,000 barrel
decrease compared to the previous month's average resulted from
the scheduled shutdown of platform P-37, in the Marlim field, in
the Campos Basin, as of January 19.
Brazilian natural gas field production totaled 42,991 thousand
cubic meters per day, 2.7% more than a year ago, but 0.9% less
than last December.
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.
SADIA SA: S&P Affirms BB Long-Term Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit rating on Brazil-based food producer Sadia S.A.
The outlook is stable.
The ratings on Sadia, relates Standard & Poor's credit analyst
Jean-Pierre Cote Gil reflect these factors:
-- the company's operations in the highly volatile and
competitive meat and food-processing industries;
-- its exposure to the Brazilian market environment, where
the company sells a larger share of its industrialized,
higher value-added product line; and
-- the company's high gross debt level, which results from
its significant financial arbitrage position and a large
capital budget.
These negative factors, according to Mr. Gil are balanced by:
-- Sadia's leading market position in Brazil and
its competitive and solid track record in exports;
-- the company's low-cost position and profitability levels
compared to peers;
-- its progressively more diversified product and client
mixes;
-- its rigorous operating and financial risk-control
measures; and
-- the company's sound liquidity position.
The stable outlook reflects Sadia's competitiveness in both
domestic and export market, which should allow it to perform
relatively well throughout the cycles of the meat industry.
Raising the ratings or positively revising the outlook depend on
Sadia's ability to manage the inherent volatility in the local
and domestic market, and reach higher operating margins along
the following quarters, which would allow for convergence of
debt coverage ratios to historical levels. Conversely, the
ratings could be lowered if the performance of the local economy
lags amid depressed local demand and consumption levels, and if
international markets do not offer a profitable sales
alternative.
Sadia, headquartered in Sao Paulo, Brazil, exports over 1,000
different products to more than 100 countries and is the largest
slaughterer and distributor of poultry and pork products, as
well as the leading refrigerated and frozen protein products
company in Brazil. For the last twelve months ending in
December 2006, the company had net sales of BRL 6.9 billion
(ca. US$3 billion) with approximately 45% of revenues derived
from exports.
===========================
C A Y M A N I S L A N D S
===========================
ASCEND MANAGED: Proofs of Claim Must be Filed by March 30
---------------------------------------------------------
Creditors of Ascend Managed Account, Ltd., which is being
voluntarily wound up, are required to present proofs of
claim by March 30, 2007, to David A.K. Walker and Lawrence
Edwards, the company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
ASPECT DIVERSIFIED: Proofs of Claim Must be Filed by March 30
-------------------------------------------------------------
Creditors of Aspect Diversified Managed Account (1), Ltd., which
is being voluntarily wound up, are required to present proofs of
claim by March 30, 2007, to David A.K. Walker and Lawrence
Edwards, the company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
AZUR HOLDINGS: Final Shareholders Meeting Is on March 30
--------------------------------------------------------
Azur Holdings, Ltd. will hold its final shareholders meeting on
March 30, 2007, at 10:00 a.m., at:
One Capital Place
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 liquidator can be reached at:
Peter D. Anderson
P.O. Box 897
George Town, Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949-7576
Fax: (345) 949-8295
BUETHE CRABEL: Final Shareholders Meeting Is on March 30
--------------------------------------------------------
Buethe Crabel Managed Account, Ltd. will hold its final
shareholders meeting on March 30, 2007, at 12:00 p.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:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
BUETHE CRABEL: Proofs of Claim Must be Filed by March 30
--------------------------------------------------------
Creditors of Buethe Crabel Managed Account, Ltd., which
is being voluntarily wound up, are required to present proofs of
claim by March 30, 2007, to David A.K. Walker and
Lawrence Edwards, the company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
CLINTON CONVERTIBLE: Proofs of Claim Must be Filed by March 30
--------------------------------------------------------------
Creditors of Clinton Convertible Managed Trading Account (1),
Ltd., which is being voluntarily wound up, are required to
present proofs of claim by March 30, 2007, to David A.K. Walker
and Lawrence Edwards, the company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
CLINTON FIXED: Proofs of Claim Must be Filed by March 30
--------------------------------------------------------
Creditors of Clinton Fixed Income Managed Account, Ltd., which
is being voluntarily wound up, are required to present proofs of
claim by March 30, 2007, to David A.K. Walker and Lawrence
Edwards, the company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
CONCORDIA MANAGED: Proofs of Claim Must be Filed by March 30
------------------------------------------------------------
Creditors of Concordia (C) Managed Account, Ltd., which is being
voluntarily wound up, are required to present proofs of claim by
March 30, 2007, to David A.K. Walker and Lawrence Edwards, the
company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
FUND INVESTMENTS: Proofs of Claim Must be Filed by March 27
-----------------------------------------------------------
Creditors of Fund Investments I, Ltd., which is being
voluntarily wound up, are required to present proofs of claim by
March 27, 2007, to Alain Andrey, 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:
Alain Andrey
c/o Maples and Calder
P.O. Box 309
Ugland House, South Church Street
George Town, Grand Cayman
Cayman Islands
INFOR GLOBAL: Moody's Affirms B3 Rating Due to Debt Refinancing
---------------------------------------------------------------
Moody's affirmed Infor Global Solutions Holdings Ltd.'s B3
corporate family rating and updated the company's individual
debt ratings with a stable outlook in response to management's
decision to add US$510 million in new debt to its current debt
offerings to refinance a US$1.425 senior subordinated bridge
facility rated Caa2. The additional US$510 million will provide
shareholders a one-time dividend. In total, the transactions
increase the company's existing first lien term loan rated B1 by
an additional US$375 million to US$2.6 billion, increase its new
second lien term loan rated Caa2 by an additional US$100 million
to US$1.4 billion, and include the addition of an unrated US$235
million senior unsecured PIK term loan.
Below are updates to Infor Global's individual debt ratings:
-- US$150 million Senior Secured Revolving Credit Facility
due 2012, from B1, LGD3, 31% to B1, LGD2, 29%
-- US$2.641 billion Senior Secured First Lien due 2012,
from B1, LGD3, 31% to B1, LGD2, 29%
-- US$1.409 billion Senior Secured Second Lien due 2014,
from Caa2, LGD5, 84% to Caa2, LGD5, 81%
This rating will be withdrawn upon close of the transactions:
-- US$1.675 billion Senior Subordinated Notes,
from Caa2, LGD5, 80%
Although the additional US$510 million in new debt increases
Infor Global's total leverage, the PIK nature of the senior
unsecured term loan minimizes the impact to cash interest
expense in the near term. Additionally, the company's B3
corporate family rating provides room for the additional
leverage.
Infor Global Solutions Holdings Ltd.,-- http://www.infor.com/--
headquartered in Alpharetta, Georgia and a Cayman Islands
exempted company, is a global provider of financial and
enterprise applications software. The company has locations in
Japan, Australia, Austria, Brazil, Chile, China, France, India,
Mexico, Netherlands, Singapore, and Spain, among others.
LYRA LTD: Final Shareholders Meeting Is on March 30
---------------------------------------------------
Lyra, Ltd., will hold its final shareholders meeting on
March 30, 2007, at 10:00 a.m., at:
One Capital Place
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 liquidator can be reached at:
Peter D. Anderson
P.O. Box 897
George Town, Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949-7576
Fax: (345) 949-8295
OPTIMAL JAPAN: Proofs of Claim Must be Filed by March 30
--------------------------------------------------------
Creditors of Optimal Japan Managed Account, Ltd., which is being
voluntarily wound up, are required to present proofs of claim by
March 30, 2007, to David A.K. Walker and Lawrence Edwards, the
company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
ORIGIN MANAGED: Proofs of Claim Must be Filed by March 30
---------------------------------------------------------
Creditors of Origin Managed Account, Ltd., which is being
voluntarily wound up, are required to present proofs of claim by
March 30, 2007, to David A.K. Walker and Lawrence Edwards, the
company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
SHARMAC MANAGED: Proofs of Claim Must be Filed by March 30
----------------------------------------------------------
Creditors of Sharmac Managed Account, Ltd., which is being
voluntarily wound up, are required to present proofs of claim by
March 30, 2007, to David A.K. Walker and Lawrence Edwards, the
company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
UT TECHNOLOGY: Proofs of Claim Must be Filed by March 30
--------------------------------------------------------
Creditors of UT Technology Managed Account, Ltd., which is being
voluntarily wound up, are required to present proofs of claim by
March 30, 2007, to David A.K. Walker and Lawrence Edwards, the
company's liquidators.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidators can be reached at:
Lawrence Edwards
David A.K. Walker
Attention: Jodi Jones
P.O. Box 258
Strathvale House, George Town
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
=========
C H I L E
=========
NORSKE SKOGINDUSTRIER: Posts NOK3-Billion Net Loss for 2006
-----------------------------------------------------------
Norske Skogindustrier ASA released its financial results for the
full year and fourth quarter ended Dec. 31, 2006.
Norske Skog registered NOK3.02 billion in net losses on
NOK28.83 billion in revenues for the full year 2006, compared
with NOK848 million in net losses on NOK25.73 billion in
revenues for 2005.
Norske Skog posted NOK209 million in net profit on
NOK7.72 billion in revenues for the fourth quarter 2006,
compared with NOK1 billion in net losses on NOK7.11 billion in
revenues for the same period in 2005.
As of Dec. 31, 2006, Norske Skog had NOK45.23 billion in total
assets, NOK26.28 billion in total liabilities and NOK18.55
billion in shareholders' equity.
"Major changes that will have long-term effects for Norske Skog
characterized 2006," Christian Rynning-Tonnesen, chief
executive, said.
"The company acquired a new corporate management and a changed
organizational structure, an extensive turnaround was launched,
we closed five paper machines and resolved to transfer one of
these to Brazil. The turnaround is intended to improve profits
by NOK3 billion by the end of 2008. With the commitment now
being made by the whole organization, I am very optimistic about
reaching our target."
Earnings Improvement Plan
The plan aims to achieve an increase of NOK3 billion in gross
operating earnings for the Norske Skog group by the end of 2008,
compared with the 2005 level and 2005 market and cost
conditions.
Roughly speaking, the plan comprises these elements:
-- cost reductions based on restructuring the mill portfolio,
with effects from the closure of Norske Skog Union largely
realized in 2006. The remainder will primarily come in
2007;
-- de-manning by 1,000 jobs in addition to more than 600
employees who have left as a result of implemented
closures. Reductions at head office and regional offices
have largely been completed, while the process is under
way in the various business units. It is due for
completion during 2008; and
-- measures to improve productivity and cost reductions in
procurement, energy optimization, sales and logistics.
Measures were originally identified in more than 40
areas, but a number of other improvement proposals have
been made in the subsequent process which involves the
business units. To the extent that improvement measures
require investment, this will fall within the framework of
normal capital spending by the group.
A team of productivity experts has carried out a design study at
Norske Skog Jeonju. A pilot has since been carried out at
Norske Skog Golbey, with good result. The program, Norske
Skog Production Systems, will later be rolled out at the other
mills.
The profit improvement program is progressing as planned. Gross
operating earnings for 2006 were positively affected by
NOK400 million compared with 2005 as a result of initiatives
already implemented. Detailed plans exist at each business unit
for implementing the program, and these plans are incorporated
in the group's system for performance measurement.
Performance-based remuneration is practiced to a considerable
extent in Norske Skog, and takes the form of bonus payments if
specified targets are met. In connection with the plan to
improve earnings, a special bonus program will be established
for all group employees.
This program will be based on the overall improvement in the
group's earnings.
About Norske Skog
Headquartered in Lysaker, Norway, Norske Skogindustrier ASA --
http://www.norskeskog.com/-- manufactures paper and pulp. It
produces long and short fiber sulphate pulp, newsprint, bleached
Kraft paper and others. The Company owns and operates paper
mills in Europe, Asia, Australia, Africa and North and South
America. Norske has posted three consecutive annual net losses
of EUR116.3 million in 2004, EUR315.4 million in 2003, and
EUR849 million in 2002. It has paper mills in Chile and Brazil.
* * *
As of Feb. 14, Norske Skog carries these ratings:
Moody's:
-- Long-Term Corporate Family: Ba1
-- Senior Unsecured Debt: Ba1
-- Outlook: Stable
Standard & Poor's:
-- Long-Term Foreign Issuer Credit: BB+
-- Long-Term Local Issuer Credit: BB+
-- Short-Term Foreign Issuer Credit: B
-- Short-Term Local Issuer Credit: B
-- Outlook: Stable
REVLON INC: Operating Unit Completes 8-5/8% Sr. Notes Redemption
----------------------------------------------------------------
Revlon Inc.'s wholly-owned operating subsidiary, Revlon Consumer
Products Corporation has completed its previously-announced
redemption of US$50 million aggregate principal amount of Revlon
Consumer's 8-5/8% Senior Subordinated Notes due 2008. Revlon
Consumer redeemed the Notes using US$50 million of the proceeds
from Revlon's highly successful US$100 million rights offering
completed in January 2007, which was significantly over-
subscribed for by public shareholders.
The aggregate redemption price for the Notes was approximately
US$50.3 million, consisting of US$50 million aggregate principal
amount of the Notes, plus an additional approximately US$0.3
million of accrued and unpaid interest on the Notes up to, but
not including, the redemption date.
The redemption was completed in accordance with the terms of the
notice of redemption mailed on Jan. 23, 2007, to the holders of
the Notes that were redeemed when the redemption amount
previously deposited with U.S. Bank National Association, the
trustee under the indenture governing the Notes, was released to
the holders of such Notes. Following the redemption, there
remained outstanding approximately US$167.4 million in aggregate
principal amount of the Notes.
Revlon, Inc. (NYSE:REV) -- http://www.revloninc.com/-- is a
worldwide cosmetics, skin care, fragrance, and personal care
products company. The company's vision is to deliver the
promise of beauty through creating and developing the most
consumer preferred brands. The company's brands include
Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R),
Flex(R), and Mitchum(R). The company's Latin American
operations are located in Argentina, Brazil, Chile, Mexico and
Venezuela.
At March 31, 2006, the company's balance sheet showed
US$1,085,400,000 in total assets and US$2,127,500,000 in total
liabilities, resulting in a stockholders' deficiency of
US$1,042,100,000.
===============
C O L O M B I A
===============
BRIGHTPOINT INC: Inks Agreement to Purchase Dangaard Telecom
------------------------------------------------------------
Brightpoint Inc. disclosed last week that it has entered into a
definitive Stock Purchase Agreement to acquire all of the
outstanding shares of Dangaard Telecom A/S.
"This transaction will join together two of the most prominent
players in the wireless handset distribution and logistics
industry to create the true global leader," stated Robert J.
Laikin, Chief Executive Officer and Chairman of the Board of
Brightpoint, Inc. "I firmly believe our two companies
complement each other perfectly in terms of geography, service
offerings and shared commitment to operational excellence. Our
vendors, customers, employees and shareholders will all benefit
from the global platform created by this transaction."
"Our combined resources will allow us to leverage the
capabilities and best practices from both companies in order to
offer advanced wireless services to our customers and business
partners in the many attractive markets around the world in
which we operate," stated Michael Koehn Milland, Chief Operating
Officer of Dangaard Telecom.
"We believe that the combined group will have the best in class
platform to deliver the most innovative, efficient and effective
solutions to global wireless handset manufacturers, network
operators and retailers. The proposed transaction is extremely
compelling and we believe that the combined company will enjoy
substantial synergies and unique growth prospects," stated
Christian Dyvig, Partner, Nordic Capital.
The executive management team of the combined company post-
closing will be:
Brightpoint, Inc.
-----------------
* Robert J. Laikin
Chairman of the Board and Chief Executive Officer
* J. Mark Howell
Co-Chief Operating Officer and President, Americas
* Michael Koehn Milland
Co-Chief Operating Officer and President of International
* Anthony W. Boor
Executive Vice President and Chief Financial Officer
* Steven E. Fivel
Executive Vice President, General Counsel and Secretary
Regional
--------
Americas:
* J. Mark Howell, Co-Chief Operating Officer and President,
Americas
* John J. Ludwig, Chief Financial Officer, Americas
Europe:
* Steen F. Pedersen, President Europe
* Hans Peter Alnor, Chief Financial Officer, Europe
Asia Pacific:
* Bruce Thomlinson, President, Asia Pacific
* Paul Ringrose, Chief Financial Officer, Asia Pacific
Emerging Markets:
* Jac Currie, President, Emerging Markets
Overview of the Proposed Transaction
The Boards of Directors of Brightpoint, Inc. and Dangaard
Holding, A/S have unanimously approved the proposed transaction.
The proposed transaction is subject to customary closing
conditions including, without limitation, certain regulatory
approvals and the approval by Brightpoint's shareholders. Under
the terms of the proposed transaction, Brightpoint, Inc. will
issue 30 million newly issued shares of its common stock and
$100,000 to Dangaard Holding A/S, an affiliate of Nordic Capital
Fund VI, in exchange for all of the outstanding shares of
Dangaard Telecom A/S. The Shareholder will have the right to
nominate up to 3 members to serve on the Brightpoint, Inc. Board
of Directors (subject to approval by the Board's Corporate
Governance and Nominating Committee). The number of directors
the Shareholder can nominate will decline if their ownership
percentage in Brightpoint, Inc. falls below certain agreed upon
thresholds. The Brightpoint, Inc. Board of Directors will
continue to have 9 total Board Members. Deutsche Bank
Securities acted as sole financial advisor and Blank Rome LLP
acted as legal counsel to Brightpoint.
Latham & Watkins LLP acted as legal counsel to Dangaard.
About Dangaard Telecom
Dangaard Telecom -- http://www.dangaard.com/-- is a privately
held portfolio company of Nordic Capital Fund VI. Dangaard is a
distributor of mobile phones, smartphones and original
accessories for mobile phones. The company is the preferred
Value Adding Distributor for a number of the world's largest
manufacturers of mobile phones, Mobile Network Operators,
Service Providers, retail chains and enterprise customers. The
strong position, gained through many years of experience, is
achieved by being flexible, proactive and innovative in the
relationship with its cooperation partners. Today, Dangaard
Telecom is represented by subsidiaries in 14 countries. The
company has approximately 1,000 employees.
About Brightpoint
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.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2007, Standard & Poor's Ratings Services affirmed its
'BB' corporate credit rating on Brightpoint Inc. and revised the
outlook to negative from stable. The actions followed the
company's recent announcement that it has agreed to acquire
Dangaard Telecom A/S for approximately US$308 million in stock.
===================
C O S T A R I C A
===================
HILTON HOTELS: Fights Accor for Newly Sold Macdonald Hotels
-----------------------------------------------------------
Hilton Hotels Corp. is competing with French rival Accor for the
contract to run 24 of the former Macdonald hotels acquired by
Moorfield Real Estate, the Scotsman reports.
Accor plans to convert the hotels to its Mercure brand, whereas
Hilton intends to establish its DoubleTree brand for the first
time in Europe through the hotels, the Scotsman states.
Moorfield, which purchased the properties for about GBP400
million, said upon acquisition that it would let Macdonald run
the hotels on an interim basis pending the result of a three-way
bidding process among "two international hotel companies" and
Macdonald, The Times relates.
About Accor
Based in Cedex, France, Accor -- http://www.accor.com/-- is a
global leader in corporate services that operates in nearly 100
countries with 160,000 employees. It offers to its individual
and corporate clients nearly 40 years of expertise in its two
core businesses, Hotels and Services to corporate clients and
public institutions.
About Hilton Hotels
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Barbados, Costa Rica and Trinidad and Tobago in Latin
America.
Hilton Hotels also operates in the United Kingdom,
Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland,
Italy, The Netherlands, Sweden, Indonesia, Australia, Austria,
India, Philippines, Vietnam.
* COSTA RICA: Blames Arias' Spat with Chavez on Plant Closure
-------------------------------------------------------------
The Costa Rican government has reportedly accused the Venezuelan
government of closing down an aluminum plant because President
Hugo Chavez did not like Pres. Oscar Arias' criticisms against
him.
"It seems to us that there is a political motivation," Rodrigo
Arias, Costa Rica's chief of staff and Oscar Arias's brother was
quoted by the Financial Times as saying.
The two leaders' relations were strained after Pres. Arias
criticized Pres. Chavez for assuming extraordinary powers,
calling the Venezuelan leader's special powers "the antithesis
of democracy."
The Venezuelan leader has said in reports that the closure of
the Alunasa aluminum plant was caused by geopolitical, technical
and economic reason. He denied that the move was precipitated
by the Costa Rican leader's comments. However, President Chavez
said that the Costa Rican president shouldn't meddle in
Venezuela's affairs, according to Prensa Latina.
The plant has been operating for more than 25 years in Costa
Rica. It was bought by Venezuela's state-owned heavy industries
conglomerate, Corporacion Venezolana de Guyana, in 1990, the FT
relates.
According to Costa Rican lawmaker Bienvenido Venegas, the
plant's closure could not be economically motivated since it
produces about 10,000 tons a year and employs 400 people, the FT
says.
"It's a completely crazy idea to remove the company from Costa
Rica. Last year it had record production," Mr. Venegas was
quoted by the FT as saying.
Costa Rica's trade minister, Marco Vinicio Ruiz, told FT that
the company has become more profitable since its inception in
2000. He said that exports rose to US$47 million in 2006,
compared with US$26 million in 2000.
"The company is not only profitable, it is very profitable," the
trade minister told FT. "It has an excellent reputation in
Costa Rica. It has improved its financial position in recent
years and it is producing efficiently."
* * *
As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa
Rica's country ceiling to BB+ from BB.
=======
C U B A
=======
* CUBA: Helps in Installation of 8 Power Generators in Nicaragua
----------------------------------------------------------------
Cuban and Venezuelan specialists have installed the first eight
power generators donated by Venezuela to Nicaragua, Cuban news
agency ACN reports.
ACN underscores that the plants each have a capacity of 2.3
megawatts. They were installed in Las Brisas.
According to ACN, the generators will then be linked to the
national power grid.
The generators work perfectly after long-duration tests, Web
site www.lavozdelsandinismo.com/Nicaragua relates, citing
Gabriel Alvarado, one of the technicians supervising the
installation.
ACN emphasizes that another 22 power plants will be deployed in
Los Brasiles in Ciudad Sandino to contribute a total of 60
megawatts to the system.
The report says that for years Nicaragua has suffered from a
power deficit of 100 megawatts.
The collaboration between Venezuela and Cuba for Nicaragua is
part of accords signed under the Bolivarian Alternative for the
Americas, ACN 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
* CUBA: Venezuelan Bank to Offer Funding for Travels to Nation
--------------------------------------------------------------
Venezuelan state-run Banco Industrial de Venezuela will offer
low-interest loans for those who will travel to Cuba, El
Universal reports.
El Universal underscores that the Venezuelan government is
encouraging travels to Cuba by offering four plans to visit
towns like:
-- Havana,
-- Varadero,
-- Trinidad,
-- Santiago,
-- Camaguey,
-- Guardalavaca, and
-- Holguin.
Quality and Tourism Services Vice Minister Rafael Rivolta Rincon
told El Universal, "The goal this year is to benefit 100,000
Venezuela from all social strata by offering them financing at
lower interest rates through Banco Industrial de Venezuela."
The program's head, Josmar Garcia, invited Venezuelans to
participate in the plans, El Universal 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 N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Cuba Assists on Atlantic Oil Exploration
--------------------------------------------------------------
Engineers from Cuba is assisting the government of the Dominican
Republic in exploring for oil along the coastline and bordering
Atlantic waters, Dominican Today reports, citing Aristides
Fernandez Zucco, the Dominican National Energy Commission head.
Mr. Zucco told Dominican Today that a delegation of Cuban
experts has visited the Dominican Republic on two occasions to
explore conditions aimed at exploiting petroleum in the nation.
Cuba is sharing its expertise on oil exploration at the Atlantic
waters, as geological conditions there are similar to the areas
exploited by Cuba.
Dominican Today underscores that the two countries will then
determine sources of funds for exploring activities, which are
expected to cost US$83 million.
"They say that what took them 30 years they can do for us in 3,
with the experience acquired by their own pursuit," Mr. Zucco
told Dominican Today.
* * *
The Troubled Company Reporter-Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
* DOMINICAN REPUBLIC: To Borrow Funds for Bani Aqueduct
-------------------------------------------------------
DR1 Newsletter reports that the government of the Dominican
Republic will need to borrow funds as it has no money for the
building of the Bani acqueduct.
According to DR1, the aqueduct could cost US$80 million.
Inhabitants of Bani told DR1 that a new aqueduct is needed
urgently, as the city has been experiencing a serious water
shortage in recent months.
However, the government may have to abandon the idea of
borrowing for the aqueduct project due to a borrowing limit
imposed by the Stand-by Agreement with the International
Monetary Fund. The government also has other construction
priorities, Listin Diario relates.
Victor Diaz, the director of the Dominican water authority
Instituto Nacional de Aguas Potables y Alcantarillados, told
Listin Diario that he expects the loan to be possible in 2008.
* * *
The Troubled Company Reporter-Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
=============
E C U A D O R
=============
PETROECUADOR: Accepting Bids for NatGas Project Until April 24
--------------------------------------------------------------
Petroecuador told Dow Jones Newswires that it has moved the
deadline of the submission of bids for a natural gas storage
project to April 24.
Petroecuador said in a notice published in local papers that
bidders may make inquiries until April 9 before submitting
offers.
Dow Jones underscores that the storage project could cost US$98
million. The storage terminal's construction will take 18
months from the time the contract is signed. It will include:
-- a marine facility for gas tankers carrying up to
40,000 tons of cargo, and
-- a pipeline and a secondary storage facility, among
other components.
The Ecuadorian government told Dow Jones that nine firms bought
bidding rules to participate in the tender. Interested parties
include Argentine industrial conglomerate Techint and Puma
Energy International.
The investment should be recovered between three to four years
due to savings generated from using the underground storage unit
instead of a floating facility in the Guayaquil Gulf, Dow Jones
notes, citing Petroecuador.
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: Will Decide on OPEC Membership in Second Quarter
-----------------------------------------------------------
Ecuadorian Energy Minister Alberto Acosta told Dow Jones
Newswires that the country will decide in the second quarter of
2007 whether it will rejoin the Organization of Petroleum
Exporting Countries or OPEC.
Minister Acosta said in a news conference that Ecuador's
departure from OPEC in 1992 was a "historical mistake." The
nation had been a member of the organization for almost 20
years.
Minister Acosta told Dow Jones, "To be an OPEC member is
important to Ecuador so it can be in a better political
situation and take advantage of all the potentials given by the
group."
Minister Acosta admitted to Dow Jones that he has been in touch
with officials in Venezuela -- the sole South American
representative in OPEC -- to ask about reentering the
organization.
Dow Jones underscores that Ecuador is wants to join OPEC for:
-- political and technical support,
-- the ability to form joint ventures, and
-- access to loans, among other benefits of
membership.
According to Dow Jones, the main problem in Ecuador's reentry to
OPEC is its almost EUR4 million debt with the organization.
"The economy minister has to place the means. The (OPEC) quota
system would not hamper us," Minister Acosta told Dow Jones.
* * *
As reported in the Troubled Company Reporter 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-'.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Orders Four Longhaul Boeing 777-200 ER Aircraft
----------------------------------------------------------------
British Airways Plc has taken the first step towards expanding
its longhaul fleet by ordering four Boeing 777-200 ER aircraft
for delivery during early 2009.
The airline has also taken out options on four Boeing 777-200 ER
aircraft for delivery in 2010.
Robert Boyle, British Airways' commercial director, said: 'These
new aircraft will enable us to grow our longhaul business after
we move to Terminal 5.
"It was a close decision between the Boeing 777s and Airbus
A330s. However, the ease of assimilating up to eight aircraft
into our existing 777 fleet, rather than having a small number
of A330s, swung the balance in Boeing's favor.
"We are confident of a similarly competitive approach from both
manufacturers as we move towards our major longhaul fleet
renewal and expansion order later this year."
Negotiations continue with GE and Rolls Royce about which
engines will be used on the new Boeing 777 aircraft.
The airline's competition for additional and replacement
longhaul aircraft to be delivered in the next decade is
considering the Airbus A330, Airbus A350, Airbus
A380, Boeing 787, Boeing 777 and Boeing 747-8. The first
aircraft to be replaced will be 20 Boeing 747s and 14 Boeing
767s, the oldest of which are currently 17 years old.
About the Company
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As reported on Feb. 7, Moody's Investors Service changed the
outlook on the Ba1 corporate family and Ba2 senior unsecured
debt ratings of British Airways Plc and its guaranteed
subsidiaries to positive from negative.
===========
G U Y A N A
===========
PETROLEOS DE VENEZUELA: To Provide Guyana 50% of Its Oil Needs
--------------------------------------------------------------
Venezuelan state oil Petroleos de Venezuela SA will provide 50%
of Guyana's fuel needs, Stabroek News reports, citing Guyanese
Prime Minister Sam Hinds.
Prime Minister Sam Hinds explained to Stabroek News that
Trinidad and Tobago, which has supplied Guyana with fuel since
2002, will provide the remaining 50% of its oil needs.
Stabroek News underscores that Venezuela is willing to provide
Guyana over 50% of the latter's oil needs under the energy
cooperation accord, Petrocaribe.
Published reports also say that Guyana was willing to purchase
all of its fuel supplies from Venezuela.
However, Guyana insisted on taking only 50% of its fuel needs
from Venezuela, Stabroek News relates.
Guyana would be buying 5,200 barrels per day from Venezuela on
concessionary terms under the Petrocaribe accord from
May 1, 2007, Guyana Energy Authority Chief Executive Officer
Joseph O'Lall confirmed to Stabroek News. No other decision was
made.
Mr. O'Lall told Stabroek News that any boost in supply would
depend on the demands of the local firms:
-- Guyana Oil Company,
-- SOL,
-- Esso Standard Oil, and
-- Texaco Oil Company.
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.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de Venezuela
S.A. at 'BB-'. Fitch has also affirmed the
'AAA(ven)' national scale rating of the company. Fitch said the
rating outlook is stable.
=============
J A M A I C A
=============
DIGICEL GROUP: Prices Private Placement of 8-7/8% Senior Notes
--------------------------------------------------------------
Digicel Group Limited disclosed the pricing of a private
placement of US$1.0 billion of 8-7/8% senior notes due 2015 and
US$400 million of 9-1/8% senior notes due 2015.
Digicel Group Limited is a newly created Bermuda incorporated
company formed by Mr. Denis O'Brien, who currently owns 78% of
the shares of Digicel Limited on a fully diluted basis.
In connection with the notes offering, Digicel Group Limited is
offering to acquire all of the outstanding shares of Digicel
Limited in exchange for cash. The share purchase offer will be
financed by funding from Mr. O'Brien and the issuance of the
senior notes. Closing of the notes offering and the share
purchase offer will be conditional upon each other and are
expected to occur on Feb. 27, 2007.
The notes will be obligations of Digicel Group Limited only and
will not be guaranteed by Digicel Limited or any of its
subsidiaries. Interest on the notes will be payable in cash,
subject to a right by the issuer to pay interest on the 9 1/8%
notes in kind at a higher interest rate of 9 7/8%.
The notes have not been and will not be registered under the
Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption
from registration.
Digicel is a leading wireless services provider in the Caribbean
region. The Digicel assets are control by Digicel
International, which in turn is controlled by Digicel Ltd.,
which is controlled by Digicel Group and owned by Denis O'Brien
after the proposed transaction is closed. The company started
operations in Jamaica in April 2001 and now offers GSM mobile
services in 22 markets primarily in the Caribbean including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and
Haiti among others. For the LTM ended Dec. 31, 2006, Digicel
consolidated revenues and EBITDA were approximately USUS$948
million and USUS$132 million, respectively. Restricted group
EBITDA for that same period approximately USUS$270 million and
total subscribers as of Dec. 31, 2006 amounted to 4.1 million,
including recently launched and or acquired operations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings has taken these rating actions for
Digicel Group Limited, Digicel Limited and Digicel International
Finance Limited:
Digicel Group Limited
-- Proposed US$1.4 billion senior subordinated notes
due 2015 assigned 'CCC+/RR5'
Digicel Limited
-- 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 Limited
-- US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the Outlook on all ratings is stable.
DIGICEL LTD: Will Need US$240MM Yearly to Pay Bank Debt Interest
----------------------------------------------------------------
Sources told the Sunday Business Post that Digicel Ltd. will
have to make about US$240 million in cash per year to pay
interest on new bank debt.
A US$1.4-billion bond would be raised, Sunday Business says,
citing Digicel owner Denis O'Brien. He said that he would set
up Digicel Group to purchase all the shares in Digicel. After
the deal, Digicel Group will have a US$2.7 billion debt, which
will attract interest of about 9% yearly, or almost US$240
million.
According to Sunday Business, Digicel Group would acquire 78% of
Digicel that Mr. O'Brien owns, as well as the minority stakes
that other firm directors own. Mr. O'Brien's stake in Digicel
was valued at US$1.87 billion.
Mr. O'Brien will take US$800 million from Digicel and reinvest
up to US$1.1 billion in Digicel Group. He will avoid a massive
capital gains tax bill, as he has moved to Malta from Portugal
in 2006, Sunday Business 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 took 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 was stable.
* * *
Fitch Ratings assigned on July 14, 2006, a 'B' rating to Digicel
Ltd's proposed add-on offering of US$150 million 9.25% senior
notes due 2012. These notes are an extension of the US$300
million notes issued in July 2005. In addition, Fitch also
affirms Digicel's foreign currency Issuer Default Rating and the
existing US$300 million senior notes due 2012 at 'B'. Fitch
said the rating outlook is stable.
* * *
On July 12, 2006, Moody's Investors Service assigned a B3 senior
unsecured rating to the US$150 million add-on Notes offering of
Digicel Ltd. and affirmed Digicel's existing B3 senior unsecured
and B1 Corporate Family Ratings. Moody's changed the outlook to
stable from positive.
DYOLL INSURANCE: Coffee Farmers Hope for Quick Settlement
---------------------------------------------------------
Jamaican coffee farmers are hoping that an out-of-court
settlement will be reached with Dyoll Insurance Company's
liquidators soon, Radio Jamaica reports.
As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2007, Kenneth Krys and John Lee at RSM Cayman, the
appointed liquidators of Dyoll Insurance, met with coffee
farmers to negotiate an out-of-court settlement for the payment
of US$200 million that the farmers demand for the damage they
suffered during the Hurricane Ivan in 2004. Senator Norman
Grant, Jamaica Agricultural Society president, said that the
farmers are requesting to end the court battle in favor of a
mutually acceptable plan. The coffee growers are worried of
getting swamped with the legal costs of a court battle.
Previously, the coffee farmers got a favorable court ruling
calling for payment for losses incurred as a result of the
Hurricane Ivan. But the liquidators applied for leave to appeal
the decisions.
According to Radio Jamaica, an accord on a US$3 million to
farmers who suffered losses during Hurricane Ivan in 2004 was
not reached in the meeting.
Senator Grant told Radio Jamaica that the farmers are demanding
that the parties reach a consensus before the Appeal Court
hearing in March.
Progress has been made and negotiations are at a "sensitive
stage," RJR News states, citing Senator Grant.
Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business. Jamaica's Financial Services
Commission has assumed temporary management of the Jamaica-based
Dyoll Insurance Co. Ltd. in Mar. 7, 2005, in order to establish
the true position of the Company, address the matter of
settlement to its claimants and ensure that its policies will
remain in force after a high level of insurance claims were
leveled on the company as a result of the hurricane Ivan.
Kenneth Tomlinson was appointed temporary manager. Jamaica's
Supreme Court ordered for the distribution of a US$653 million
fund held by the FSC in accordance with the Insurance Act 2001,
section 59, which says that the prescribed deposit, on the
winding up of an insurance company, should be applied first to
settle the claims of local policyholders.
SUGAR COMPANY: Gets Five More Bidders for Auctioned Assets
----------------------------------------------------------
Jamaican Agriculture and Lands Minister Roger Clarke told the
Jamaica Gleaner that at least five more foreign firms have shown
interest in acquiring the assets of the Sugar Company of
Jamaica.
Minister Clarke commented to Farmers Weekly, "We have been
getting quite a few more enquiries. So far, probably about five
more out of Brazil again and the States (US) mostly. Some seem
quite attractive and some seem to have quite a bit of resources
and the others are already in the business so it is an
interesting mix."
The government is considering how to facilitate the new
interests now that the pre-qualification period has ended, The
Gleaner says, citing Minister Clarke.
Radio Jamaica relates that these firms prequalified for the
bidding process:
-- Angostora Ltd. of Trinidad,
-- Cormex of Brazil,
-- Dampur Sugar Mills of India,
-- Energen Development Ltd., and
-- J. Wray and Nephew Ltd. from Jamaica.
According to The Gleaner, the firms are bidding for sugar
factories:
-- Monymusk,
-- Frome,
-- Bernard Lodge,
-- St. Thomas, and
-- Long Pond.
Minister Clarke told The Gleaner that the government will start
inviting bids next month.
Meanwhile, the current sugar crop was outperforming that of
2006, The Gleaner says, citing Minister Clarke. The factories
were performing better this year, compared to last year.
The Gleaner underscores that the Sugar Company has incurred
losses over the years, bringing in over US$14 billion in debt,
despite several interventions by government.
The debt will be taken over by the Ministry of Finance ahead of
the pending divestment of assets. The Sugar Company was given
US$200 million to continue with operations at the five factories
until the divestment is finalized, Minister Clarke told The
Gleaner.
Sugar Company of Jamaica registered a net loss of almost
US$1.1 billion for the financial year ended Sept. 30, 2005, 80%
higher than the US$600 million reported in the previous
financial year. Sugar Company blamed its financial
deterioration to the reduction in sugar cane production.
SUGAR COMPANY: Must Stop Burning of Canes at Bernard Lodge
----------------------------------------------------------
St. Catherine Parish Council Physical and Infrastructure
Committee Chairperson Hyman Smith told Radio Jamaica that the
Sugar Company of Jamaica must find another way to harvest
sugarcane to stop the burning of the field in Bernard Lodge.
Radio Jamaica relates that the council wrote to the National
Environment and Planning Agency about the menace caused by the
burning of canes in Bernard Lodge.
Residents along the Old Harbor Road, sections of Spanish Town,
Ebony Vale and Fairview Park on St. John's Road are being
affected by soot coming from the burning cane field, Radio
Jamaica notes, citing Mr. Smith.
Residents at Portmore and Greater Portmore also complained to
RJR News about soot from the cane field.
Sugar Company of Jamaica registered a net loss of almost
US$1.1 billion for the financial year ended Sept. 30, 2005, 80%
higher than the US$600 million reported in the previous
financial year. Sugar Company blamed its financial
deterioration to the reduction in sugar cane production.
===========
M E X I C O
===========
ADVANCE FOOD: Moody's Places Ba3 Rating on New Senior Bank Loan
---------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to Advance Food
Company's new senior secured first lien bank facilities, as well
as a B3 rating to a new second lien term loan. Moody's also
assigned a B1 corporate family rating to the company. The
rating outlook is stable. The ratings assigned are based on
preliminary terms as outlined by the company, and are subject to
receipt and final review of executed documents. These represent
first time ratings to Advance Food Company, a leading full
service manufacturer and marketer of a wide variety of value-
added, portion-controlled meat products sold primarily into the
foodservice distribution channel. These ratings are assigned:
Advance Food Company:
-- Corporate family rating at B1
-- Probability of default rating at B1
-- US$40 million first-lien revolving credit facility
due 2012 at Ba3 (LGD 3, 42%)
-- US$210 million first-lien Term Loan B, including a
US$50 million delayed draw term loan, due 2014 at Ba3
(LGD 3, 42%)
-- US$65 million second-lien Term Loan due 2014 at B3
(LGD 6, 90%)
The company plans to use proceeds from the above rated debt
instruments to refinance existing indebtedness, pay a US$94
million dividend to shareholders, and pay related fees and
expenses. Included in the US$210 million first lien term loan B
is a US$50 million delayed draw term loan to be used to finance
the construction of a new processing facility in Enid, Oklahoma.
Proceeds from the US$40 million revolver will be used for
ongoing working capital requirements, capital expenditures, and
other general corporate purposes.
Advance Food Company's ratings are constrained by its small
scale and limited product diversification relative to other
consumer products companies, its increasingly aggressive
financial policy as demonstrated by the current debt-financed
dividend, and the modestly-weak credit metrics which will result
following the transaction. Ratings are supported by the
company's strong organic growth rates driven by new product
introductions, increasing customer penetration and an ongoing
trend in away-from-home meal consumption, its broad customer
diversity, moderate geographic diversity, and its solid EBITDA
margins and asset returns, which have resulted in historically
strong cash flow generation.
The stable ratings outlook reflects Moody's expectation that,
despite some expected weakening in 2007 credit metrics as a
result of the transaction, the company's operating performance
will moderately improve over intermediate term as it continues
to expand new product offerings and its customer base, and as it
realizes cost savings from opening the new plant in Oklahoma at
the end of 2007.
Given the expectation that credit metrics will moderately weaken
in 2007 as a result of incremental borrowing to fund the
dividend and new plant construction, it may take some time for
the rating to become more solidly positioned at the current
rating level. Upward pressure in the ratings could result from
profitable growth and greater scale, as well as the company's
ability to demonstrate that it can sustain debt/EBITDA below 4.0
times and EBIT/interest above 3.0 times (both incorporating
Moody's standard analytic adjustments).
The rating could come under downward pressure if credit metrics
deteriorate more than expected, either through cost overruns
associated with building the new plant and/or moving production,
raw material price increases, additional dividends to
shareholders, or acquisitions before significant debt reduction
has occurred. More specifically, downward pressure would result
if debt/EBITDA were to increase above 5.0 times or if
EBIT/interest approaches 1.5 times.
The US$40 million revolving credit facility and US$210 million
Term Loan B are secured by a first-priority lien on all assets,
including all capital stock of the borrower and its direct and
indirect domestic subsidiaries and 65% of the voting and 100% of
the non-voting stock of its first tier foreign subsidiaries.
The US$65 million second lien Term Loan benefits from a second
priority lien on the same collateral.
Headquartered in Enid, Oklahoma, Advance Food Company is a
leading full service manufacturer and marketer of a wide variety
of value-added, portion-controlled meat products sold primarily
into the foodservice distribution channel. It operates nine
manufacturing facilities in five states, a nationwide
distribution network and sells internationally to Canada,
Mexico, Germany, Japan and the Caribbean. Advance currently
produces nearly 2200 center-of-the-plate products made from
beef, pork, poultry, lamb and veal. Pro forma 2006 revenues
exceed US$530 million.
ADVANCE FOOD: S&P Assigns B+ Rating on US$315-Mil. New Debts
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating to Advance Food Co. In addition, Standard &
Poor's assigned its bank loan and recovery ratings to Advance
Food's proposed US$250 million first-lien senior secured credit
facility and US$65 million second-lien term loan facility. The
first-lien facility was rated 'B+' (at the same level as the
corporate credit rating), with a recovery rating of '2',
indicating the expectation of substantial (80%-100%) recovery of
principal in the event of a payment default. The second-lien
facility was rated 'B-' (two notches below the corporate credit
rating), with a recovery rating of '5', indicating the
expectation that second-lien lenders can expect negligible (0%-
25%) recovery of principal in the event of a payment default.
The ratings are based on preliminary terms and are subject to
review upon final documentation. The outlook is negative.
"The ratings reflect Advance Food's highly leveraged capital
structure, aggressive financial policy, high customer and
supplier concentration, and narrow business focus," said
Standard & Poor's credit analyst Mark Salierno. He added that
these factors are partially mitigated by the company's leading
position in its niche markets and existing long-term
relationships with its distributors and end users.
Advance Food is a developer, manufacturer, and marketer of
processed food items, including meat products and ready-to-serve
non-meat products. Restaurants represent a majority of the
company's end users, although the company is a niche player in
the US$460 billion food-prepared-away-from-home market in the
U.S. This market includes many larger, financially stronger
competitors, particularly vertically integrated processors and
suppliers of meat such as Tyson Foods and Smithfield Foods.
Advance Food Company, based in Enid, Oklahoma, operates nine
manufacturing facilities in five states, a nationwide
distribution network and sells internationally to Canada,
Mexico, Germany, Japan and the Caribbean. Advance currently
produces nearly 2200 center-of-the-plate products made from
beef, pork, poultry, lamb and veal. Proforma 2006 revenues
exceed US$530 million.
ADVANCED MARKETING: Court OKs Sale of PGW's Distribution Rights
---------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates
obtained authority from the United States Bankruptcy Court for
the District of Delaware to sell Publishers Group West Inc.'s
rights under its distribution agreements with various publishers
to Perseus Books LLC and Client Distribution Services Inc.
The Court also approved the Debtors' purchase agreement with
Perseus including the assumption and assignment of contracts to
CDS.
As reported in the Troubled Company Reporter on Feb. 13, 2007,
National Book Network Inc. made a competing and superior bid to
purchase PGW's rights under its distribution agreements with
various publishers, as disclosed by Rich Publishing LLC in its
objection to the proposed sale to Perseus and CDI. NBN offered
to pay 85 cents on the dollar for the claims of all PGW
publishers, Rich Publishing said.
As reported in the Troubled Company Reporter on Feb. 14, 2007,
Amber-Allen Publishing Inc. disclosed that it will not enter
into a Publisher Agreement with Perseus. Consequently, it asked
the Court to include these provisions in the order approving the
sale of PGW's rights under its distribution agreements to
Perseus and CDS:
(a) The Amber-Allen Distribution Agreement is deemed rejected,
effective immediately upon entry of the ruling granting
the PGW Sale; and
(b) Within five business days of entry of that Court ruling,
PGW will cooperate with Amber-Allen to return Amber-
Allen's books, and Amber-Allen will pay the reasonable
freight and handling charges.
Judge Christopher S. Sontchi clarified in its order that nothing
will constitute an exercise of jurisdiction over an approval by
the Court of any of the Consenting Publisher Distribution
Agreements or the New Publisher Agreements other than to
authorize the Debtors to assume and assign the Assigned
Contracts to CDS, including the requirement of the execution of
the Agreements.
Upon the closing of the PGW Sale, the Distribution Agreements of
all Consenting Publishers will be deemed assumed and assigned
subject to the terms of the Purchase Agreement and the
Assignment Agreement. Upon the assumption and assignment, no
payments made to Consenting Publishers prepetition on account of
obligations due under the Assumed Contracts will be recoverable
by, or for the benefit of, the Debtors' estates under the
Bankruptcy Code including Sections 547 or 550.
"We are excited to move forward as quickly as possible to write
checks to PGW clients and to provide some certainty for PGW
employees," said David Steinberger, president and chief
executive of Perseus, The New York Times reported.
National Book Network Inc., which formally delivered its
competing bid to the Court on Feb. 14, 2007, offered to pay
85 cents on the dollar for the claims of all PGW publishers.
Perseus, on the other hand, offered 70 cents on the dollar
for the claims of all Consenting publishers.
Judge Sontchi said the consideration under the PGW Sale is fair
and reasonable and provides reasonably equivalent value in
exchange for the assets transferred. The sale process was fair.
The competitive sales process was not stifled. The price was
negotiated at arm's-length between commercially sophisticated
entities represented by counsel. The price was not the product
of collusion or unfair or inequitable conduct and was the
highest price offered.
Perseus Books acted in good faith within the meaning of Section
363(m) of the Bankruptcy Code, Judge Sontchi added.
Amber-Allen Contract Deemed Rejected
To address the objection filed by Amber-Allen Publishing, Inc.,
Judge Sontchi ruled that:
(a) the marketing and distribution agreement between PGW and
AAP will be deemed rejected and terminated effective upon
closing of the PGW Sale;
(b) PGW will cooperate with AAP to enable AAP to retrieve all
Products in PGW's possession, custody or control within 15
days after the closing of the PGW Sale with AAP paying all
freight and handling charges for the retrieval;
(c) upon the closing of the PGW Sale, AAP will be deemed to
have waived any claim for damages arising out of the
rejection of the AAP Agreement; and
(d) notwithstanding the rejection and termination of the AAP
Agreement, AAP will continue to accept returns of Products
from PGW's trade accounts until the earlier of the
effective date of any confirmed Plan in the Debtors'
Chapter 11 cases, conversion to Chapter 7, or the date
that is one year from the rejection and termination, and
will credit the returns dollar for dollar against AAP's
prepetition unsecured claim.
All objections to the Sale that were not previously withdrawn
are overruled.
A full-text copy of the Court-approved Purchase Agreement
between the Debtors and Perseus Books is available at no charge
at:
http://researcharchives.com/t/s?1a2d
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. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
ADVANCED MARKETING: Panel Seeks Court Nod on Traxi Retention
------------------------------------------------------------
The Official Committee of Unsecured Creditors in Advanced
Marketing Services Inc. and its debtor-affiliates' bankruptcy
cases has selected Traxi LLC to serve as its financial advisors
because of the firm's experience and knowledge. The Committee
believes that Traxi is well qualified to represent it in the
Debtors' bankruptcy cases.
Accordingly, the Creditors Committee asks the United States
Court for the District of Delaware to approve Traxi's retention,
effective as of Jan. 12, 2007.
As the Creditors Committee's financial advisors, Traxi will:
(a) provide financial analysis related to the proposed
debtor-in-possession financing motion and other first
day motions, including assistance in negotiations,
attendance at hearings, and testimony;
(b) review all financial information prepared by the Debtors
or its consultants as requested by the Committee,
including a review of the Debtors' financial statements
of the Petition Date showing in detail all assets and
liabilities and priority and secured creditors;
(c) monitor the Debtors' activities regarding cash
expenditures, receivable collections, asset sales and
projected cash requirements;
(d) attend at meetings including the Committee, the Debtors,
creditors, their attorneys and consultants, federal and
state authorities, if required;
(e) review the Debtors' periodic operating and cash flow
statements;
(f) review the Debtors' books and records for intercompany
transactions, related party transactions, potential
preferences, fraudulent conveyances and other potential
prepetition investigations;
(g) investigate any prepetition acts, conduct, property,
liabilities and financial condition of the Debtors,
their management, creditors including the operation of
their business, and as appropriate, avoidance actions;
(h) review any business plans prepared by the Debtors or
their consultants;
(i) review and analyze proposed transactions for which the
Debtors seek Court approval;
(j) assist in the Debtors' sale process, collectively or in
segments, parts or other delineations, if any;
(k) assist the Committee in developing, evaluating,
structuring and negotiating the terms and conditions of
all potential plans of reorganization;
(l) estimate the value of the securities, if any, that may
be issued to unsecured creditors under any the Plan;
(m) provide expert testimony on the results of the
Committee's findings;
(n) analyze potential divestitures of the Debtors'
operations;
(o) assist the Committee in developing alternative Plans,
including contacting potential Plan sponsors if
appropriate; and
(p) provide the Committee with other and further financial
advisory services with respect to the Debtors, including
valuation, general restructuring and advice with respect
to financial, business and economic issues, as may arise
during the course of the restructuring as requested by
the Committee.
Traxi will be paid on an hourly basis, plus reimbursement of the
actual and necessary expenses that Traxi incurs in accordance
with the ordinary and customary rates, which are in effect on
the date the services are rendered, William Sinnott of Random
House, the Committee Chairperson, says.
Traxi's hourly rates are:
Professional Hourly Rate
------------ -----------
Partners/Managing Directors US$450 - US$525
Managers/Directors US$275 - US$425
Associate/Analysts US$125 - US$275
According to Mr. Sinnott, the charges set forth are based on
actual time charges on an hourly basis and based on the
experience and expertise of the professional involved. The
hourly rates set forth are subject to periodic adjustments to
reflect economic and other conditions.
Anthony J. Pacchia, senior managing director and unit holder at
Traxi, assures the Court that Traxi represents no other entity
in connection with the Debtors' bankruptcy cases, is a
"disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code, and does not hold or represent
any interest adverse to the Creditors Committee with respect to
the matters on which it is to be employed.
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. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
AMERICAN AXLE: Fitch Places BB Rating on New Sr. Notes Due 2017
---------------------------------------------------------------
Fitch has assigned a 'BB' rating to American Axle &
Manufacturing's (NYSE: AXL) new senior unsecured notes due 2017.
Fitch has also affirmed American Axle's existing ratings:
-- Issuer Default Rating (IDR) 'BB';
-- Senior unsecured bank facility 'BB'; and
-- Senior unsecured 'BB'.
The Outlook remains Negative. Including the new issuance, the
ratings cover approximately US$972 million of debt.
Fitch's affirmation reflects the risks associated with American
Axle's dependence on General Motors (Fitch IDR 'B'; Watch
Negative) for roughly 75% of its total revenue and in
particular, GM's passenger trucks which compete in segments that
will remain under pressure in 2007. Partially offsetting these
risks are American Axle's margin performance, solid liquidity,
competitive position, the financial benefits of recent headcount
reduction, and an expected improvement in free cash flow in
2007. Free cash flow over the next several years will benefit
from recent restructuring activities and reduced capital
expenditure levels following an extended period of higher costs
associated with the launch of GM's GMT900 trucks and
international growth initiatives. The new business backlog with
customers other than GM continues to grow.
The Negative Outlook reflects the credit condition of American
Axle's largest customer, critical labor negotiations later this
year between GM and the United Auto Workers union, a financially
stressed base of suppliers other than American Axle, and the
uncertain sustainability of large pickup truck production volume
in light of a slump in new home construction. In addition, the
uncertainty related to large sport utility vehicle volumes and
consumers reaction to fuel prices. Fitch could revise the
Outlook to Stable if GM's production outlook stabilizes or
American Axle's free cash flow materially improves in 2007,
providing increased cushion against the uncertainty of the
factors listed above.
Fitch has also assigned a rating of 'BB' to American Axle's new
senior unsecured bonds due Feb 2017. The issuance capitalizes
on favorable capital market conditions and supplements American
Axle's liquidity position through an uncertain 2007 industry
environment. Fitch anticipates that, in the absence of any
labor disruptions at American Axle's largest customer, issuance
proceeds would be used to keep revolver capacity available with
the balance held in cash. Axle will likely use the cash on the
balance sheet instead of the revolver to handle mid-period
working capital requirements during the year. Upon resolution
of General Motors/United Auto Workers-contract negotiations,
Fitch expects to see a reduction in total debt. A 'Change In
Control' clause is included in the new issue terms.
Despite a 12.7% decline from 2005 to 2006 in GM light truck
sales, American Axle 2006 revenue was off 5.8% from US$3.4
billion to US$3.2 billion. The offsets to the decline in GM's
truck sales include American Axle's business with customers
other than GM and higher content on the new GM SUVs and large
pickups. However, lower volumes and higher launch costs brought
adjusted operating income down from US$105 million last year to
US$52 million for 2006. Free cash flow was a use of US$132
million versus a use of US$56 million a year ago primarily due
to the special attrition program payments but also higher than
normal capital expenditure related to the launch of the new GM
products. To fund operations, the Special Attrition Program,
other attrition programs and US$37 million in lease buyouts, the
company's total debt rose to US$672 million in 2006 from US$489
million last year. Liquidity at the end of 2006 consisted of
US$14 million in cash and marketable securities and US$476
million in available revolver. The company also has
availability under uncommitted and foreign lines of credit
totaling US$27 million and US$92 million, respectively.
American Axle has maintained its financial discipline through a
period of heavy investment and in the midst of difficult
industry conditions. While many suppliers have chosen to take
advantage of attractive secured financing arrangements, American
Axle's funding has remained unsecured. American Axle's credit
metrics are healthy for the current rating, but American Axle 's
credit profile is currently constrained by the company's
dependence on GM, exposure to light trucks, and negative free
cash flow over the past two years. For 2006 American Axle's
Total Debt to Operating EBITDA was 2.6x, Total Adjusted Debt to
Operating EBITDA (adjusted for rent) was 2.9x, and FFO Adjusted
Leverage was 3.4x.
American Axle & Manufacturing, headquartered in Detroit,
Michigan, is engaged in the manufacture, design, engineering and
validation of driveline systems and related components and
modules, chassis systems, and metal-formed products for light
truck, SUVs and passenger cars. The company has manufacturing
locations in the U.S.A., Mexico, the United Kingdom and Brazil.
The company reported revenues of US$3.4 billion in 2005 and has
approximately 10,900 employees.
AMERICAN AXLE: Moody's Puts Ba3 Rating on US$300-Mil. New Notes
---------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating (LGD-4, 56%)
to American Axle & Manufacturing, Inc.'s new issue of US$300
million of unsecured notes. At the same time, the rating agency
raised the company's Speculative Grade Liquidity rating to SGL-1
and affirmed the company's existing Corporate Family Rating of
Ba3 and negative outlook. Although the company's leverage
measurements will initially increase as a result of the new
debt, its margins, cash flows and coverage ratios should improve
during 2007 as a result of restructuring initiatives and
employee buy-out programs initiated during 2006. The company's
liquidity profile will be strengthened from the combination of
retention of a portion of the proceeds as corporate cash,
increased availability under its bank revolving credit facility,
and free cash flow generation. The result of improved liquidity
and expected trends in key metrics help maintain the company's
position in the Ba3 rating category despite the modest initial
increase in debt levels. The negative outlook recognizes the
considerable near-term uncertainty posed by the September 2007
expiration of the Big-3 United Auto Workers contract and the
possibility of any related strikes or work actions. In
addition, due to its significant supply contracts relating to
General Motors' T900 trucks and SUVs, American Axle remains
vulnerable to further shifts in consumer preference away from
these segments.
Edwin Wiest, Vice President with Moody's said, "American Axle's
credit metrics could improve by late 2007 and into 2008 as the
benefits of its restructuring initiatives begin to take hold.
However, the company and the entire automotive supplier sector
will face considerable near-term uncertainty until the Big-3
United Auto Workers contract negotiations are finalized." Wiest
went on to say that, "Given this uncertainty, the company's
effort to strengthen is liquidity position is constructive."
American Axle will use a portion of the proceeds from the issue
to reduce outstanding under its bank revolving credit facility
and money market borrowings, which collectively amounted to
US$134 million at the end of December 2006. The balance will be
retained as cash. On a pro forma basis for year end 2006,
debt/EBITDA on a trailing basis would increase from roughly 3.0
times to 3.5 times. Following its Special Attrition Program and
other restructuring actions in the fourth quarter of 2006, the
company is expected to achieve significant savings in its cost
structure. This should facilitate higher EBITDA generation,
and, along with lower capital expenditures, produce positive
free cash flow over the intermediate period. In turn, coverage
and leverage metrics should exhibit positive trends and help
position the company in the Ba3 rating category.
Nonetheless, American Axle remains vulnerable to a challenging
industry environment, faces ongoing correlation of its results
with GM's production of light trucks, and continues with its
revenues concentrated in North America. Those issues along with
uncertainties on the ultimate application of higher cash
balances warrant maintaining a negative outlook until OEM labor
contract issues are resolved and final consumer demand for
vehicles based on the GM T900 in a higher fuel cost environment
is confirmed beyond an introductory period.
The Speculative Grade Liquidity rating of SGL-1 represents
excellent liquidity over the coming twelve months. This
develops from the increase in internal resources from the
retention of a portion of the note proceeds, minimal, if any,
near term debt maturities, and expectations of free cash flow of
at least US$100 million in 2007. External sources will
effectively increase as a result of the repayment of revolving
credit borrowings. The company should have ample room under its
principal financial covenants, which measure debt net of cash
and exclude certain non-recurring charges from the measurement
of EBITDA and their related impact on deemed net worth. All of
the company's bank obligations and notes are currently
unsecured, which establishes some flexibility to generate
alternative liquidity, if needed, subject to lien baskets and
sale/leaseback limitations in their respective indentures.
The notes will be issued under the company's existing shelf
registration. However, the indenture will include a change in
control provision. As with American Axle's existing bank debt
and unsecured notes, the issue will be guaranteed by American
Axle's holding company parent. Given the unsecured nature of
the debt claims in the company's capital structure, recovery
rates in Moody's Loss Given Default assessment have not
materially changed from earlier measurement dates and are LGD-4,
56%.
Ratings assigned:
American Axle & Manufacturing, Inc.
-- $300 million of guaranteed senior unsecured notes
due 2017, Ba3 (LGD-4, 56%)
Ratings changed:
American Axle & Manufacturing, Inc.
-- Speculative Grade Liquidity rating to SGL-1 from SGL-2
Loss Given Default Assessments revised:
American Axle & Manufacturing, Inc.
and American Axle & Manufacturing Holdings, Inc.
-- Senior unsecured term loan and Senior Unsecured notes
to LGD-4, 56% from LGD-4, 57%
Ratings affirmed:
American Axle & Manufacturing Holdings, Inc.
-- Corporate Family Rating, Ba3
-- Senior Unsecured Convertible Notes, Ba3
American Axle & Manufacturing, Inc.
-- Senior Unsecured Term Loan, Ba3
-- Senior Unsecured Notes, Ba3
American Axle's revolving credit facility is not rated. The
last rating action was on Dec. 8, 2006, at which time all of the
company's ratings were confirmed after being placed under review
for downgrade on Oct. 5, 2006.
American Axle & Manufacturing, Inc., headquartered in Detroit,
MI, is a world leader in the manufacture, design, engineering
and validation of driveline systems and related components and
modules, chassis systems, and metal-formed products for light
truck, SUV's and passenger cars. The company has manufacturing
locations in the USA, Mexico, the United Kingdom, and Brazil and
has recently opened new plants in Poland and China. The company
reported revenues of US$3.2 billion in 2006.
AMERICAN AXLE: S&P Assigns BB Rating on US$300-Mil. Senior Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' rating to
American Axle & Manufacturing Inc.'s proposed US$300 million
senior unsecured notes due 2017, which are guaranteed by parent
company, American Axle & Manufacturing Holdings Inc. Proceeds
are expected to be used to increase cash balances, and in the
longer term, for debt reduction.
The 'BB' corporate credit ratings on American Axle and its
parent company were affirmed. The rating outlook is negative.
The ratings could be lowered if free cash flow generation
remains negative during 2007, reducing the company's cash
balances. Potential causes for negative cash flow would include
substantially weaker demand for GM's light trucks. We could
also lower the rating if GM's credit profile were to
substantially weaken. On the other hand, the outlook could be
revised to stable if the company improves its customer and
product diversity through acquisitions or investments that do
not cause credit measures to weaken, or if demand for light
trucks stabilizes or strengthens.
American Axle & Manufacturing, headquartered in Detroit,
Michigan, is engaged in the manufacture, design, engineering and
validation of driveline systems and related components and
modules, chassis systems, and metal-formed products for light
truck, SUVs and passenger cars. The company has manufacturing
locations in the U.S.A., Mexico, the United Kingdom and Brazil.
The company reported revenues of US$3.4 billion in 2005 and has
approximately 10,900 employees.
CABLEMAS SA: Alvarez Family Issues US$258-Mil. Notes to Televisa
----------------------------------------------------------------
Cablemas S.A. de C.V. disclosed that in November 2006, the
Alvarez Family, founders and owners of 100% of the stock of
Cablemas, issued US$258 million in long-term notes to Televisa.
The proceeds were used to finance the transaction by which the
Alvarez family purchased the 52.7% stake of Cablemas held at the
time by Olmeca Investments B.V., Nautilus Gibraltar, S.P.R.L.
and Citicorp International Finance Corporation, as announced on
Sept. 30, 2006. The notes are convertible into 99.99% of the
equity of Alvafig S.A. de C.V., which holds 49% of the equity of
Cablemas S.A. de C.V. The notes have a five-year maturity with
a coupon rate of 8% in the first year and 10% in subsequent
years. The conversion of the long-term notes into equity is
subject to approval by the regulatory authorities in Mexico.
Cablemas SA de CV -- http://www.cablemas.com-- is the
second-largest cable television operator in Mexico based on the
number of subscribers and homes passed. As of June 30, 2005,
the company's network served over 546,000 cable subscribers and
in excess of 87,000 high-speed Internet subscribers, with more
than 1,647,000 homes passed. It is the concessionaire with the
broadest coverage in Mexico, operating in 46 cities throughout
the country's oil, maquiladora and tourist regions.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Fitch Ratings has affirmed these ratings for
Cablemas with a Stable Rating Outlook:
-- Foreign Currency Issuer Default Rating 'BB-';
-- Local Currency Issuer Default Rating 'BB-';
-- US$175 million senior notes due 2015 'BB-'; and
-- National scale 'A(mex)'.
DYNAMIC LEISURE: Inks Tour Operator Agreement with Hertz Rental
---------------------------------------------------------------
Dynamic Leisure Corporation has signed a tour operator agreement
with Hertz Rental Car Corporation for vacation travel related
rentals.
The agreement, effective immediately, allows Dynamic Leisure to
offer Hertz Rental Cars to its customers in the US and Europe,
which strengthens Dynamic's international presence in line with
the existing hotel and airline agreements.
"We are pleased to add the Hertz name to our growing list of
worldwide partners that include airlines, hotels and cruise
lines. Our association with these global brands is noteworthy
as it demonstrates our growing strength in the market and our
ability to continue broadening our service offering to consumers
and travel agents," said Dan Brandano, CEO of Dynamic Leisure
Corporation.
About Dynamic Leisure
Headquartered in Tampa, Florida, Dynamic Leisure Corp. (OTCBB:
DYLI) -- http://www.dylicorp.com/-- operates as an
international online travel package technology company. It
provides packaged domestic and international vacations to travel
agencies and other travel resellers using proprietary packaging
computer software and broadband communication technology. Its
featured destinations include the Caribbean, Mexico, and Europe,
as well as leisure U.S. destinations, such as Florida,
California, and Las Vegas.
Going Concern Doubt
Salberg & Company, PA, expressed substantial doubt about
Dynamic Leisure's ability to continue as a going concern after
it audited the company's financial statements for the year ended
Dec. 31, 2005. The auditing firm pointed to the company's
losses, working capital deficit, accumulated deficit,
stockholders' deficit and loan defaults.
ENTRAVISION COMM: Revenues Climb to US$74.2MM in Fourth Quarter
---------------------------------------------------------------
Entravision Communications Corporation reported financial
results for the three- and twelve-month periods ended
Dec. 31, 2006.
Commenting on the Company's earnings results, Walter Ulloa,
Chairman and Chief Executive Officer, said, "Our record results
for the fourth quarter and full-year demonstrate the strength of
our platform, our ability to capitalize on our audience shares
and the dedication of all our employees. Once again we outpaced
the general market, with strength across all three of our
operating divisions as we benefited from the growth of the U.S.
Hispanic consumer and the desire of local and national
advertisers to target this expanding market. As we enter 2007
we are focused on our core strengths and the execution of our
growth strategy. With a unique group of assets positioned in
the most dynamic Hispanic growth markets in the U.S. and a sound
balance sheet we remain well positioned to generate long-term
value for our shareholders."
Net revenue increased to US$74.2 million for the three-month
period ended Dec. 31, 2006, from US$73.2 million for the three-
month period ended Dec. 31, 2005, an increase of US$1.0 million.
Excluding the 2006 and 2005 net revenue contributed by the
company's radio stations in the San Francisco/San Jose, Tucson
and Dallas markets that company sold in 2006, net revenue would
have increased by US$4.3 million during the three-month period
ended Dec. 31, 2006. Of the overall increase, US$1.4 million
came from the company's television segment. The increase from
this segment was primarily attributable to an increase in local
advertising sales from the company's Univision stations,
primarily attributable to an increase in inventory sold.
Additionally, US$1.0 million of the overall increase was from
the company's outdoor segment, primarily attributable to an
increase in local advertising sales as well as revenue
associated with the expansion of the company's outdoor division
in Tampa. The overall increase was partially offset by a US$1.4
million decrease in the company radio net revenue. The decrease
was primarily attributable to a decrease in net revenue of
US$3.3 million from their San Francisco/San Jose, Tucson and
Dallas radio stations that company sold, partially offset by an
increase in inventory sold.
Company operating expenses increased to US$44.5 million for the
three-month period ended Dec. 31, 2006, from US$44.3 million for
the three-month period ended Dec. 31, 2005, an increase of
US$0.2 million. Excluding the 2006 and 2005 operating expenses
incurred by the company's radio stations in the San
Francisco/San Jose, Tucson and Dallas markets that company sold
in 2006, direct operating expenses would have increased by
US$2.2 million during the three-month period ended
Dec. 31, 2006. Of the overall increase, US$0.7 million came
from the company's television segment. The increase from this
segment was primarily attributable to an increase in sales
expenses associated with the increase in net revenue and an
increase in utility and rent expense related to digital
television, partially offset by reduced expenses in accordance
with the terms of an amendment to their marketing and sales
agreement with Univision. Additionally, US$0.8 million of the
overall increase came from the company's outdoor segment and was
primarily attributable to an increase in sales expenses
associated with the increase in net revenue, higher lease rents
for the company's billboard locations and expenses associated
with the expansion of the company's outdoor division in Tampa.
The overall increase was partially offset by a US$1.3 million
decrease in the company's radio direct operating expenses. The
decrease was primarily attributable to a decrease in operating
expenses from their San Francisco/San Jose, Tucson and Dallas
radio stations that the company sold in 2006, partially offset
by an increase in commissions and other sales-related expenses
associated with the increase in net revenue.
Corporate expenses increased to US$4.9 million for the three-
month period ended Dec. 31, 2006, from US$4.5 million for the
three-month period ended Dec. 31, 2005, an increase of US$0.4
million. The increase was primarily attributable to increased
professional fees, wages and non-cash stock-based compensation.
Full Year Financial Results
Net revenue increased to US$291.8 million for the year ended
Dec. 31, 2006, from US$281.0 million for the year ended
Dec. 31, 2005, an increase of US$10.8 million. Excluding the
2006 and 2005 net revenue contributed by the company's radio
stations in the San Francisco/San Jose, Tucson and Dallas
markets that company sold in 2006, net revenue would have
increased by US$20.5 million during the year ended
Dec. 31, 2006. Of the overall increase, US$12.3 million came
from the company's television segment. The increase from this
segment was primarily attributable to an increase in both local
and national advertising sales, primarily attributable to an
increase in advertising rates, partially attributable to World
Cup and political advertising. Additionally, US$2.4 million of
the overall increase was from the company's outdoor segment,
primarily attributable to revenue associated with the expansion
of our outdoor division in Tampa and Sacramento, as well as an
increase in local advertising sales. The overall increase was
partially offset by a US$3.9 million decrease in our radio net
revenue. The decrease was primarily attributable to a decrease
in net revenue of US$9.7 million from our San Francisco/San
Jose, Tucson and Dallas radio stations that the company sold,
partially offset by an increase in inventory sold and
advertising rates.
Company operating expenses increased to US$175.8 million for the
year ended Dec. 31, 2006, from US$172.0 million for the year
ended Dec. 31, 2005, an increase of US$3.8 million. Excluding
the 2006 and 2005 operating expenses incurred by our radio
stations in the San Francisco/San Jose, Tucson and Dallas
markets that the company sold in 2006, direct operating expenses
would have increased by US$9.6 million during the year ended
Dec. 31, 2006. Of the overall increase, US$4.6 million came
from the company's television segment. The increase from this
segment was primarily attributable to an increase in national
representation fees and other sales expenses associated with the
increase in net revenue, an increase in utility and rent expense
related to digital television and an increase in syndicated
programming expense, partially offset by reduced expenses in
accordance with the terms of an amendment to the company's
marketing and sales agreement with Univision. Additionally,
US$2.2 million of the overall increase came from the company's
outdoor segment and was primarily attributable to an increase in
sales expenses associated with the increase in net revenue,
higher lease rents for their billboard locations and expenses
associated with the expansion of the company's outdoor division
in Tampa and Sacramento. The overall increase was partially
offset by a US$3.0 million decrease in their radio direct
operating expenses. The decrease was primarily attributable to
a decrease in direct operating expenses from their San
Francisco/San Jose, Tucson and Dallas radio stations that
company sold, partially offset by an increase in commissions and
other sales-related expenses associated with the increase in net
revenue.
Corporate expenses increased to US$18.9 million for the year
ended Dec. 31, 2006, from US$17.5 million for the year ended
Dec. 31, 2005, an increase of US$1.4 million. The increase was
primarily attributable to increased non-cash stock-based
compensation of US$0.8 million. The remaining increase was
primarily attributable to increased professional fees and wages.
On Nov. 1, 2006, the company's board of directors approved the
repurchase of up to US$100.0 million of its outstanding common
stock. To date, the company has repurchased approximately 1.5
million shares at an average price of US$7.50 for an aggregate
purchase price of US$11.3 million plus transaction fees.
With the sale of the Company's radio assets in Tucson and Dallas
markets in the third and fourth quarter of 2006, respectively,
the company no longer has any remaining broadcasting operations
in those two markets. As a result, in accordance with Company
policy, the Company has elected to present its guidance on a pro
forma basis by eliminating its broadcasting results from those
markets for the prior period so that the comparison between the
periods will be meaningful. The amounts excluded from net
revenue and operating expenses for the first quarter of 2006
were US$1,470,000 and US$1,224,000, respectively.
Operating expenses and corporate expenses include non-cash
stock-based compensation to comply with Statement of Financial
Accounting Standards No. 123 (Revised 2004). The company
expects approximately US$0.4 million in operating expenses and
US$0.6 million in corporate expenses related to equity
compensation in the first quarter of 2007.
For the first quarter of 2007, the company expects net revenues
to increase by high single digit percentages and operating
expenses to increase by mid single digit percentages as compared
to the first quarter of 2006. Excluding the non-cash stock-
based compensation, corporate expenses are expected to increase
by low single digit percentages as compared to the first quarter
of 2006.
Headquartered in Santa Monica, California, Entravision
Communications Corporation (NYSE: EVC) --
http://www.entravision.com/-- is a diversified Spanish-language
media company utilizing a combination of television, radio and
outdoor operations to reach approximately 75% of Hispanic
consumers across the United States, as well as the border
markets of Mexico. Entravision is the largest affiliate group
of both Univision television network and Univision's TeleFutura
network, with television stations in 20 of the nation's top 50
Hispanic markets in the United States. Entravision owns and
operates one of the nation's largest groups of primarily
Spanish-language radio stations, consisting of 54 owned and
operated radio stations in 21 U.S. markets. Entravision's
outdoor advertising operations consist of approximately 11,100
advertising faces located primarily in Los Angeles and New York.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct 4, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the US advertising and
broadcasting sector, the rating agency confirmed its Ba3
Corporate Family Rating for Entravision Communications
Corporation.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Secured Revolver Ba3 Ba3 LGD3 32%
Secured Term Loan Ba3 Ba3 LGD3 32%
GENERAL MOTORS: Inks US$1 Bil. Global Networking Deal with AT&T
---------------------------------------------------------------
General Motors Corp. has awarded AT&T Inc. a five-year global
networking contract worth nearly US$1 billion. The agreement is
one of the largest commercial contracts in AT&T history.
Under the agreement, AT&T will deliver next-generation
telecommunications capabilities that will enable GM to further
integrate its global resources. In addition, GM named AT&T a
strategic information technology supplier to support its third-
generation information technology business model, which is
designed to ensure that GM's IT suppliers are working as one
around the world. In that role, AT&T will provide network-
integration management covering all aspects of GM's worldwide
telecommunications infrastructure, including voice and data
applications and systems support.
As part of the agreement, AT&T will be responsible for managing
the performance of key regional telecommunications providers
around the world in addition to network management
responsibility for participating telephone companies to drive
consistent, uniform IT service delivery and support. In
addition, AT&T will continue to collaborate with GM's
Information Systems and Services organization to support its
global business strategy.
The contract renews and expands an existing strategic global
relationship in which AT&T provides GM with a global Virtual
Private Network solution, integrating GM locations around the
world. AT&T's solution supports a full range of capabilities
including local, long distance, global voice mail, conferencing,
high speed Internet access and telecommunications business-
continuity services.
The network, based on Multiprotocol Label Switching technology,
provides a standardized technology infrastructure that will
enable GM to integrate networks, applications and devices and to
evolve into a single streamlined, communications platform based
on Internet Protocol with consistent standards and capabilities.
As a result, employees across the enterprise will have the same
telecommunications tools, such as common voice mail and
conferencing capabilities, and will enjoy the same quality of
service whether they're sitting in the corporate headquarters in
Detroit or in a manufacturing facility in Australia.
"AT&T's networking expertise and global reach make it uniquely
qualified to meet the telecommunications needs of a global,
multinational company like ours," said Ralph Szygenda, group
vice president and chief information officer of General Motors.
"This agreement is a strategic step toward strengthening
telecommunications across our global enterprise. It ensures
that we have the basic infrastructure in place to give GM
employees anywhere in the world the ability to collaborate
online in real time on engineering, manufacturing, design and
supply-chain. It is expected to enable increased productivity
and collaboration and to maximize GM's global network."
"GM's vision for global integration using an IP-based technology
platform and uniform service standards around the world managed
by trusted technology partners is a bellwether for multinational
corporations," said Ron Spears, executive vice president of AT&T
Global Business Sales. "We are excited to be a strategic
information technology supplier to GM and are anxious to deliver
the benefits of next-generation telecommunications services."
About AT&T
AT&T Inc. (NYSE: T) -- http://www.att.com/-- is a premier
communications holding company in the United States and around
the world, with operating subsidiaries providing services under
the AT&T brand. AT&T is the recognized world leader in
providing IP-based communications services to businesses and the
U.S. leader in providing wireless, high speed Internet access,
local and long distance voice, and directory publishing and
advertising through its Yellow Pages and YELLOWPAGES.COM
organizations.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including Mexico, and its vehicles are sold in 200
countries.
* * *
Standard & Poor's Ratings Services, on Dec. 13, 2006, 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 on March 29, 2006.
On Jan. 29, 2007, S&P said that the company's announcement that
it is restating financial results from 2002 through the third
quarter of 2006 raises new concerns about the integrity of the
company's financial reporting and internal controls, but has no
immediate effect on the ratings on GM, GMAC LLC
(BB+/Developing/B-1), or GMAC unit Residential Capital LLC
(ResCap; BBB/Negative/A-3).
On Nov. 14, 2006, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the proposed US$1.5 Billion secured term
loan. 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 GM and Saturn Corporation.
NORTEL NETWORKS: Declares Preferred Share Dividends
---------------------------------------------------
The board of directors of Nortel Networks Limited declared a
dividend in respect of each of the months of January and
February on each of the outstanding Cumulative Redeemable Class
A Preferred Shares Series 5 (TSX: NTL.PR.F) and the outstanding
Non-cumulative Redeemable Class A Preferred Shares Series 7
(TSX: NTL.PR.G).
The dividend amount for each series is calculated in accordance
with the terms and conditions applicable to each respective
series, as set out in the company's articles. The annual
dividend rate for each series floats in relation to changes in
the average of the prime rate of Royal Bank of Canada and The
Toronto-Dominion Bank during the preceding month and is adjusted
upwards or downwards on a monthly basis by an adjustment factor
which is based on the weighted average daily trading price of
each of the series for the preceding month, respectively. The
maximum monthly adjustment for changes in the weighted average
daily trading price of each of the series will be plus or minus
4.0% of Prime. The annual floating dividend rate applicable for
a month will in no event be less than 50% of Prime or greater
than Prime.
The dividend on each series in respect of the month of March is
payable on April 12, 2007, to shareholders of record of such
series at the close of business on March 30, 2007. The dividend
on each series in respect of the month of April is payable on
May 14, 2007, to shareholders of record of such series at the
close of business on April 30, 2007.
About Nortel
Nortel Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.
Headquartered in Ontario, Canada, Nortel Networks Limited
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over Internet
provider, multimedia services and applications, and wireless
broadband. Nortel Networks does business in more than 150
countries, including Mexico.
* * *
As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.
ODYSSEY RE: Earns US$83.8 Million in Quarter Ended Dec. 31, 2006
----------------------------------------------------------------
Odyssey Re Holdings Corp. reported net income available to
common shareholders of US$83.8 million for the quarter ended
Dec. 31, 2006, compared to a net loss available to common
shareholders of US$79.2 million in 2005. Operating income after
tax was US$65.4 million for the fourth quarter of 2006, compared
to an operating loss after tax of US$72.6 million in 2005. The
Company's fourth quarter 2005 results include catastrophe
losses, net of applicable reinstatement premiums, of US$115.4
million after tax, or US$1.68 per diluted share principally
related to Hurricanes Katrina, Rita and Wilma. Included in the
fourth quarter 2006 net income available to common shareholders
were after tax net realized capital gains of US$18.4 million
compared to net realized capital losses of US$6.5 million, in
2005.
For the year ended Dec. 31, 2006, the net income available to
common shareholders was US$499.6 million as compared to a net
loss available to common shareholders of US$117.7 million for
the year ended Dec. 31, 2005. Operating income after tax was
US$268.0 million for the year ended Dec. 31, 2006, compared to
operating loss after tax of US$170.9 million, in 2005.
Total shareholders' equity was US$2.08 billion at Dec. 31, 2006,
compared to US$1.64 billion at Dec. 31, 2005. Book value per
common share was US$27.92 at Dec. 31, 2006, an increase of
US$5.61 from the book value per common share at 2005 of
US$22.31. At Dec. 31, 2006, total investments and cash were
US$7.07 billion, an increase of US$1.10 billion over
Dec. 31, 2005.
Fourth Quarter and Full Year Highlights
-- Net income available to common shareholders of US$499.6
million for the full year and US$83.8 million for the
fourth quarter;
-- Net operating income of US$268.0 million for the full year
and US$65.4 million for the fourth quarter;
-- Gross premiums written of US$2.34 billion for the full
year, a decrease of 11.1% from 2005, and US$538.9 million
for the fourth quarter, a decrease of 12.8% over fourth
quarter 2005;
-- Combined ratio of 94.4% for the full year, and 94.8% for
the fourth quarter;
-- Full year net investment income (excluding realized
capital gains of an equity investee) of US$319.5 million,
an increase of 66.2% over 2005;
-- Return on common shareholders' equity of 28.3% and
operating return on common shareholders' equity of 15.2%
for the full year; and
-- Total invested assets of US$7.1 billion at Dec. 31, 2006,
an increase of 18.4% over Dec. 31, 2005.
Gross premiums written for the quarter ended Dec. 31, 2006, were
US$538.9 million, a decrease of 12.8% compared to US$617.7
million for the quarter ended Dec. 31, 2005. This reflects a
decline of 15.1% in the company's worldwide reinsurance business
compared to the fourth quarter of 2005, and a 7.3% decrease in
specialty insurance business. Net premiums written during the
fourth quarter of 2006 were US$508.7 million, a decrease of 2.7%
over fourth quarter 2005 net premiums written of US$523.0
million.
Gross premiums written for the year ended Dec. 31, 2006 were
US$2.34 billion, compared to US$2.63 billion for the year ended
Dec. 31, 2005, while net premiums written over the same period
decreased to US$2.16 billion from US$2.30 billion. The combined
ratio for the year ended Dec. 31, 2006 was 94.4%, as compared to
117.6% in 2005.
Andrew A. Barnard, President and Chief Executive Officer,
stated, "OdysseyRe attained numerous milestones in 2006. Our
full year net income of US$500 million is our highest ever, as
is our return on common equity of 28.3%. Our combined ratio of
94.4% is our best underwriting performance since we became a
public company. Looking forward, our diversified portfolio and
global reach, coupled with our proven underwriting and
investment expertise, position us well for the challenges of an
uncertain market. In recognition of our balance sheet strength,
the OdysseyRe Board of Directors has decided to increase our
annual dividend to US$0.25 per share, double its present level."
Total investment results, which include net investment income
and net realized capital gains (losses), amounted to US$112.2
million before tax in the fourth quarter of 2006, compared to
US$45.9 million in the fourth quarter of 2005. Net investment
income, which excludes net realized capital gains (losses),
amounted to US$84.0 million for the fourth quarter of 2006,
compared to US$56.0 million for the fourth quarter of 2005. Net
pre-tax realized capital gains were US$28.3 million for the
fourth quarter of 2006, compared to net pre-tax realized capital
losses of US$10.1 million for the fourth quarter of 2005. For
the quarter ended Dec. 31, 2006, net cash flow from operations
was a positive US$127.9 million, a US$152.0 million increase
from negative cash flow of US$24.1 million for the quarter ended
Dec. 31, 2005, following significant catastrophe loss payments
in the fourth quarter of 2005.
In the fourth quarter of 2006 and 2005, OdysseyRe paid a cash
dividend of US$0.03125 per common share.
Odyssey Re Holdings Corp. (NYSE: ORH) is an underwriter of
property and casualty treaty and facultative reinsurance, as
well as specialty insurance. Odyssey Re operates through its
subsidiaries, Odyssey America Reinsurance Corp., Hudson
Insurance Co., Hudson Specialty Insurance Co. Clearwater
Insurance Co., Newline Underwriting Management Limited and
Newline Insurance Co. Ltd. The Company underwrites through
offices in the United States, London, Paris, Singapore, Toronto
and Mexico City. Odyssey Re Holdings Corp. is listed on the New
York Stock Exchange under the symbol ORH.
* * *
As reported in the Troubled Company Reporter on Nov. 15, 2006,
Standard & Poor's affirmed its 'BBB-' counterparty credit and
'BB' preferred stock ratings on Odyssey Re Holdings Corp. and
removed them from CreditWatch negative.
ODYSSEY RE: Board Declares Preferred Share Dividends
----------------------------------------------------
Odyssey Re Holdings Corp.'s Board of Directors declared a cash
dividend of US$0.5078125 per share on OdysseyRe's 8.125% non-
cumulative Series A preferred shares and US$0.5381250 per share
on OdysseyRe's floating rate non-cumulative Series B preferred
shares. The dividends will be payable on April 20, 2007, to
Series A and Series B preferred shareholders of record on
March 31, 2007.
Odyssey Re Holdings Corp. (NYSE: ORH) is an underwriter of
property and casualty treaty and facultative reinsurance, as
well as specialty insurance. Odyssey Re operates through its
subsidiaries, Odyssey America Reinsurance Corp., Hudson
Insurance Co., Hudson Specialty Insurance Co. Clearwater
Insurance Co., Newline Underwriting Management Limited and
Newline Insurance Co. Ltd. The Company underwrites through
offices in the United States, London, Paris, Singapore, Toronto
and Mexico City. Odyssey Re Holdings Corp. is listed on the New
York Stock Exchange under the symbol ORH.
* * *
As reported in the Troubled Company Reporter on Nov. 15, 2006,
Standard & Poor's affirmed its 'BBB-' counterparty credit and
'BB' preferred stock ratings on Odyssey Re Holdings Corp. and
removed them from CreditWatch negative.
SUNGARD DATA: Posts Adjusted Income of US$994M in Full Year 2006
----------------------------------------------------------------
SunGard Data Systems Inc. recorded adjusted income from
operations for the year 2006 of US$994 million, a 7% increase
over US$933 million for the year 2005.
Reported income from operations for the year 2006 was US$532
million compared to US$493 million for the year 2005, an
increase of 8%. Reported income from operations includes:
a) amortization of acquired intangible assets of US$399
million and US$231 million, respectively;
b) stock-based compensation and purchase accounting
adjustments of US$59 million in each period;
c) merger costs of US$4 million and US$139 million,
respectively; and,
d) in 2005, a one-time charge of US$11 million related to the
relocation of an availability services facility.
The 2005 purchase accounting adjustments were recorded in
connection with the acquisition of the company on Aug. 11, 2005,
and resulted primarily in a reduction in revenue of US$21
million.
Adjusted income from operations for the three months ended
Dec. 31, 2006, was US$299 million compared to US$282 million in
the same period in 2005, an increase of 6%. Reported income from
operations for the three months ended Dec. 31, 2006, was US$184
million compared to US$151 million in 2005, an increase of 22%.
For the year 2006, adjusted EBITDA was US$1.25 billion compared
to US$1.19 billion in 2005, an increase of 6%. For the three
months ended Dec. 31, 2006, adjusted EBITDA was US$373 million
compared to US$340 million for the three months ended
Dec. 31, 2005, an increase of 10%.
Revenue for the year 2006 was US$4.32 billion, an increase of 7%
over revenue for the year 2005. Revenue for the three months
ended Dec. 31, 2006, was US$1.19 billion, an increase of 9% over
revenue for the same period in 2005. These results exclude the
2005 reduction in revenue related to the deferred revenue
adjustment of US$21 million for the year and US$9 million for
the quarter. Reported revenue including this adjustment
increased 8% for the year and 10% for the quarter.
Internal revenue (revenue from businesses owned for at least one
year and further adjusted for the effects of businesses sold in
the previous twelve months and the deferred revenue adjustment
in 2005) grew 6% for the year and 9% for the quarter compared to
the same periods in 2005.
Cristobal Conde, president and chief executive officer,
commented, "SunGard's performance for the full year was solid.
Internal revenue growth in our software and processing
businesses was higher than it has been for more than four years.
We believe 2007 will be another solid year. The tone of
business is either steady or generally improving compared to
this time last year. The pipeline continues to be strong and
our products and services remain very competitive. Our
customers are placing equal emphasis on top line growth and on
reducing costs through operational efficiencies. Regulatory
issues, risk mitigation and compliance related initiatives are
still top priorities for many of our customers. SunGard is well
positioned to help our customers achieve their business
objectives."
Financial Systems revenue increased 15% to US$611 million for
the quarter. The deferred revenue adjustment related to
Financial Systems in the fourth quarter of 2005 was US$4
million. Internal revenue grew approximately 14%. License fees
were US$80 million for the quarter, an increase of US$4 million
from the fourth quarter of 2005.
Headquartered in Wayne, Pennsylvania, SunGard Data Systems Inc.
-- http://www.sungard.com/-- software and processing solutions
for financial services, higher education and the public sector.
The company has operations in Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 25, 2007, Fitch has affirmed these ratings for SunGard Data
Systems Inc:
-- Issuer Default Rating at 'B';
-- USUS$1 billion senior secured revolving credit facility
due 2011 at 'BB-/RR2';
-- USUS$3.9 billion senior secured term loan due 2013 at
'BB-/RR2';
-- USUS$250 million 3.75% senior notes due 2009 at 'B/RR4';
-- USUS$250 million 4.875% senior notes due 2014 at 'B/RR4';
-- USUS$2 billion senior unsecured notes due 2013 at
'B-/RR5'; and
-- USUS$1 billion 10.25% senior subordinated notes due 2015
at 'CCC+/RR6'.
Fitch said the rating outlook is stable.
=================
N I C A R A G U A
=================
* NICARAGUA: Cuba & Venezuela Installs Eight Power Generators
-------------------------------------------------------------
Cuban and Venezuelan specialists have installed the first eight
power generators donated by Venezuela to Nicaragua, Cuban news
agency ACN reports.
ACN underscores that the plants each have a capacity of 2.3
megawatts. They were installed in Las Brisas.
According to ACN, the generators will then be linked to the
national power grid.
The generators work perfectly after long-duration tests, Web
site www.lavozdelsandinismo.com/Nicaragua relates, citing
Gabriel Alvarado, one of the technicians supervising the
installation.
ACN emphasizes that another 22 power plants will be deployed in
Los Brasiles in Ciudad Sandino to contribute a total of 60
megawatts to the system.
The report says that for years Nicaragua has suffered from a
power deficit of 100 megawatts.
The collaboration between Venezuela and Cuba for Nicaragua is
part of accords signed under the Bolivarian Alternative for the
Americas, ACN states.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
===========
P A N A M A
===========
CABLE & WIRELESS: Trustees Sell 30,118 Ordinary Shares
------------------------------------------------------
The Trustees of Cable and Wireless plc Employee Share Ownership
Trust disposed of 6,626 Ordinary Shares at a price of GBP1.7625
per share on and 23,492 Ordinary Shares at a price of GBP1.77
per share on Feb 16.
In addition, it has come to the Company's attention that the
following notifications received from the Trust were not
released to the market:
* 17,128 Ordinary Shares at a price of GBP1.465 on Oct. 31,
2006; and
* 66,385 Ordinary Shares at a price of GBP1.4625 on Nov. 1,
2006.
Following the disposals, 37,585,826 Ordinary Shares are
currently held under the Trust. George Battersby, Harris Jones,
John Pluthero and Tony Rice (allbeing directors of Cable and
Wireless plc), in their capacity as members of the class of
beneficiaries under the Trust, and Towers Perrin Share Plan
Services (GSY) Ltd., in their capacity as Trustees of the Trust,
are deemed to have a non-beneficial interest in these Ordinary
Shares.
No Directors are disposing of any beneficial interests in the
Company.
About Cable & Wireless
Headquartered in London, Cable & Wireless PLC --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
Its principal operations are in the United Kingdom, continental
Europe, Asia, the Caribbean, Panama and the Middle East.
* * *
Cable & Wireless Plc carries these ratings:
* Moody's Investors Service
-- Long-Term Corporate Family Rating: Ba3
-- Senior Unsecured Debt: B1
-- Short-Term: NP
-- Outlook: Negative
* Standard & Poor's
-- Long-Term Foreign Issuer Credit Rating: BB-
-- Long-Term Local Issuer Credit Rating: BB-
-- Short-Term Foreign Issuer Credit Rating: B
-- Short-Term Local Issuer Credit Rating: B
-- Outlook: Negative
CHIQUITA BRANDS: Incurs US$42 Mil. Net Loss in 2006 Fiscal Year
---------------------------------------------------------------
Chiquita Brands International Inc. released its financial and
operating results for the fourth quarter and full-year 2006.
Fourth quarter net sales increased by 9% year-over-year to
US$1.1 billion, and the company reported a net loss of US$42
million, including a US$25 million accrual related to a
potential settlement of a previously disclosed U.S. Department
of Justice investigation. This compares to a net loss of US$19
million in the year-ago period.
For the full year, net sales increased by 15% to US$4.5 billion,
and the company reported a net loss of US$96 million compared to
net income of US$131 million in 2005.
"We continued to drive top-line growth in the fourth quarter
and, as expected, we began to overcome several significant
headwinds that had impacted our results in the third quarter,"
said Fernando Aguirre, chairman and chief executive officer.
"Net sales increased due primarily to improved banana volume in
Europe and higher banana volume and pricing in North America."
Mr. Aguirre continued, "We continue to face a challenging and
evolving environment due to competitive pressures and regulatory
changes in the European banana market as well as lingering
consumer concerns about the safety of fresh spinach and packaged
salads in the United States. However, we believe the strategic
initiatives we have put in place will effectively address these
issues and gain momentum in 2007. Moreover, we strongly believe
that our efforts to further leverage Fresh Express and develop
new innovative products are successfully positioning Chiquita
for the long-term. Our team remains focused on driving
profitable growth across our operations and on our vision to
become a consumer-driven global leader in branded, healthy,
fresh foods."
* Net Sales: Quarterly sales increased primarily due to
increased banana volume in Europe and North America,
improved banana pricing in North America, higher Fresh
Select sales and favorable foreign exchange, partly offset
by lower banana pricing in Europe. The increase in annual
sales reflects the positive full-year impact of the
acquisition of Fresh Express in mid-2005.
* Operating Income (Loss): The quarterly operating loss
increased year-over-year due to the impact of changes in
the European banana market, which have resulted in lower
pricing and increased tariffs; higher fuel and other
industry costs; and the accrual for potential settlement of
the U.S. Department of Justice investigation. These were
partially offset by lower marketing expenses in Europe and
costs from Tropical Storm Gamma in the year-ago period that
did not recur. In addition to the factors impacting the
fourth quarter operating results, operating results for the
full-year 2006 were impacted by a US$43 million goodwill
impairment charge related to Atlanta AG, while operating
income for 2005 included charges of US$23 million for
flooding in Honduras and the closure of a fresh-cut fruit
facility.
* Cash used in operations in the fourth quarter 2006 was
US$65 million compared to cash provided by operations of
US$11 million in the year-ago period. For the quarter, the
decline was due to lower operating income and increases in
seasonal working capital requirements compared to the year-
ago period. For the full year, the decline in cash flow is
attributable to lower operating income.
* Total debt was US$1.029 billion at Dec. 31, 2006, compared
to US$997 million at Dec. 31, 2005. The increase was due
to US$44 million of borrowings on the company's revolving
credit facility in the 2006 fourth quarter to fund seasonal
working capital needs.
* Cash was US$65 million at Dec. 31, 2006, compared to US$89
million at Dec. 31, 2005.
As previously disclosed, in April 2003 the company's management
and audit committee, in consultation with the board of
directors, voluntarily disclosed to the U.S. Department of
Justice that its former banana-producing subsidiary in Colombia,
which was sold in June 2004, had made payments to certain groups
in that country which had been designated under United States
law as foreign terrorist organizations. Following the voluntary
disclosure, the Justice Department undertook an investigation,
including consideration by a grand jury. In March 2004, the
Justice Department advised that, as part of its criminal
investigation, it would be evaluating the role and conduct of
the company and some of its officers in the matter. In
September and October 2005, the company was advised that the
investigation was continuing and that the conduct of the company
and some of its officers and directors was within the scope of
the investigation.
During the fourth quarter of 2006, the company commenced
discussions with the Justice Department about the possibility of
reaching a plea agreement. As a result of these discussions,
and in accordance with the guidelines set forth in SFAS No. 5,
the company has recorded a reserve of US$25 million in its
financial statements for the quarter and year ended Dec. 31,
2006. This amount reflects liability for payment of a proposed
financial sanction contained in an offer of settlement made by
the company to the Justice Department. The US$25 million would
be paid out in five equal annual installments, with interest,
beginning on the date judgment is entered. The Justice
Department has indicated that it is prepared to accept both the
amount and the payment terms of the proposed US$25 million
sanction.
Negotiations are ongoing, and there can be no assurance that a
plea agreement will be reached or that the financial impacts of
any such agreement, if reached, will not exceed the amounts
currently accrued in the financial statements. Furthermore,
such an agreement would not affect the scope or outcome of any
continuing investigation involving any individuals.
In the event an acceptable plea agreement between the company
and the Justice Department is not reached, the company believes
the Justice Department is likely to file charges, against which
the company would aggressively defend itself. The company is
unable to predict the financial or other potential impacts that
would result from an indictment or conviction of the company or
any individual, or from any related litigation, including the
materiality of such events.
Outlook
While the company does not provide specific guidance for net
sales and net income, the following information is provided to
assist investors in analyzing the company's results for 2007.
* The company expects 2007 capital expenditures to be in the
range of US$65-75 million.
* Depreciation and amortization expense is estimated to be
approximately US$90 million in 2007.
* Gross interest expense in 2007 is estimated to be in the
range of US$85-90 million, and net interest expense is
expected to be US$80-85 million, assuming an average LIBOR
rate of 5.3%.
* The company expects to apply excess cash primarily to pay
down debt until it reaches its target total debt-to-capital
ratio of 40%. At year-end 2006, this ratio was 54%.
* While the company does not offer forward-looking pricing or
volume estimates, it provides regular updates eight times
per year on year-over-year percentage changes in pricing and
volume in its major operating regions.
* In the first half of 2006, the company incurred higher
sourcing and logistics costs totaling US$24 million due to
banana volume shortfalls caused by Hurricane Stan and
Tropical Storm Gamma, which affected results by US$16
million in the first quarter and US$8 million in the second
quarter. These storm impacts are not expected to recur in
this year's first half.
* The company estimates costs for items such as raw products,
fuel, ship charters, paper and resins to be approximately
US$40-50 million higher in 2007 than in 2006. Approximately
three-quarters of the increases relate to the cost of raw
products, most of which relate to bananas and will be
heavily weighted toward the first four months of the year.
To mitigate such increases, the company continuously seeks
Cost savings across its global operations. In 2007, the
company is targeting US$40 million in gross cost savings,
most of which are expected to occur later in the year.
* Based on current euro forward rates, the company's 2007
currency hedging costs are estimated to be approximately
equal to the US$17 million of costs in 2006.
* Declining prices over the last several months have allowed
the company to increase its fuel hedge coverage to
approximately 65% through 2009. Based on current market
forward rates, the company expects a fuel hedging loss of
US$6 million in 2007, compared to a US$12 million gain in
2006.
* The company expects reduced sales and decreased margins
resulting from consumer concerns about the safety of
packaged salad products to continue to negatively affect
Fresh Cut segment results through at least the third quarter
2007. In addition, the record January freeze in Arizona is
expected to impact Fresh Cut operating results by up to US$4
million in the first quarter 2007.
About Chiquita Brands
Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and
distributes fresh food products including bananas and nutritious
blends of green salads. The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks. Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide, including
Panama.
* * *
On Nov. 6, Moody's Investors Service downgraded the ratings for
Chiquita Brands L.L.C., as well as for its parent Chiquita
Brands International, Inc. Moody's said the outlook on all
ratings is stable.
This rating action follows the company's announcement that had
incurred a USUSUS$96 million net loss for its 2006 third
quarter.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.
S&P said the ratings remain on CreditWatch with negative
implications where they were placed on Sept. 26.
=======
P E R U
=======
BIO-RAD LABS: Board Names Louis Drapeau as Director
---------------------------------------------------
The Board of Directors of Bio-Rad Laboratories appointed Louis
Drapeau as director. Mr. Drapeau will replace Philip L. Padou.
Mr. Drapeau will serve as a member of the Board's audit
committee and will stand for election to the Board along with
the Company's other directors at the Company's annual meeting of
stockholders on April 24, 2007. Additionally, Mr. Drapeau will
be a financial expert on the audit committee. There is no
arrangement or understanding pursuant to which Mr. Drapeau was
appointed director.
On the same basis as the other non-employee directors of the
company, Mr. Drapeau will be entitled to receive a fee of $2,000
per month plus an additional $100 per board meeting for any
meetings in excess of 16 per year. In addition, Mr. Drapeau
will be entitled to receive an additional $625 per month for
serving on the audit committee.
About Bio-Rad Laboratories
Bio-Rad Laboratories, Inc. (AMEX: BIO) (AMEX: BIOb) --
http://www.bio-rad.com/-- is a multinational manufacturer and
distributor of life science research products and clinical
diagnostics. Based in Hercules, California, Bio-Rad serves more
than 70,000 research and industry customers worldwide through a
network of more than 30 wholly owned subsidiary offices in
Argentina, Brazil and Peru, among others.
* * *
As reported on the Troubled Company Reporter on June 2, 2006,
Bio-Rad Laboratories, Inc.'s 7-1/2% Senior Subordinated Notes
due 2013 carry Moody's Investors Service's Ba3 rating and
Standard & Poor's BB- rating.
=====================
P U E R T O R I C O
=====================
INTERLINE BRANDS: Sales Rise 25% to US$1 Bil. in Full Year 2006
---------------------------------------------------------------
Interline Brands Inc. disclosed record sales and earnings for
2006.
Sales for the year ended Dec. 29, 2006, increased US$215.6
million, or 25%, to a record US$1.068 billion, compared to
US$851.9 million in 2005 on one less selling day. Average
organic daily sales grew 8.3% as a result of strong execution of
the company's strategic growth initiatives. The acquisition of
AmSan in July 2006 added US$129.8 million in sales in the second
half of 2006 while the acquisition of Copperfield in July 2005
added US$18.6 million in sales in the first half of 2006. As a
result, average daily sales grew 25.8% in 2006.
Gross profit for 2006 increased US$83.3 million, or 26%, to
US$408.9 million from US$325.6 million in 2005. Gross profit as
a percentage of sales increased to 38.3% in 2006 from 38.2% in
2005.
SG&A expenses increased US$63.2 million or 28% in 2006 to
US$292.8 million from US$229.6 million in 2005. SG&A expenses
as a percentage of sales increased to 27.4% in 2006 from 27.0%
in 2005. SG&A expenses in 2006 included US$3.8 million in
share-based compensation expense, which is US$2.9 million more
than in the prior year. In addition, 2006 included US$43.1
million in incremental expense related to the operations of
Copperfield and AmSan. Excluding share based compensation and
incremental expense related to new acquisitions, SG&A expenses
increased 7.5% on average organic daily sales growth of 8.3%.
Operating income increased US$19.7 million or 24% to a record
US$101.7 million in 2006 from US$82.0 million in 2005.
Operating income as a percentage of sales was 9.5% in 2006 and
9.6% in 2005. Adjusted EBITDA increased 21% to a record
US$116.7 million in 2006 from US$96.6 million in 2005.
Cash provided by operations was US$29.9 million in 2006,
compared to cash provided by operations of US$38.8 million in
2005. The decrease in 2006 cash from operations is largely the
result of an increase in net working capital deployed to support
growth.
Michael Grebe, Interline's Chairman and Chief Executive Officer,
stated, "We are extremely pleased with our performance in 2006,
which was our second full fiscal year as a publicly traded
company. I am very proud of the leadership, dedication, and
strong execution shown by the Interline team. Our strong
financial performance and high level of customer service
continues to reflect the benefits of our diversified and
proprietary business model."
In the fourth quarter of 2006, earnings per diluted share
increased 25% to US$0.35 on net income of US$11.4 million for
the fourth quarter of 2006 compared to US$0.28 on US$9.1 million
in net income in the same period last year.
Sales for the fourth quarter increased US$67.3 million, or 30%,
to US$293.3 million, compared to US$226.0 million in the
comparable 2005 period. Average daily sales growth was 29.8%.
Average organic daily sales growth was 2.6%. Interline's
facilities maintenance market, which represented 60% of sales in
the fourth quarter of 2006, grew 11.5% in the quarter on an
average organic daily sales basis and grew 70% including AmSan,
which the company acquired in July of 2006. The pro contractor
market, which represents 25% of sales, declined 2.5% in the
quarter. The specialty distributor market, which represents 15%
of sales, declined 7.9%.
William Sanford, Chief Operating Officer, commented "Revenue
growth in our facilities maintenance markets was robust, as
customer demand for our supply-chain management programs
continued to increase during the quarter. After two years of
double digit organic sales growth, our pro contractor market
began to slow during the quarter. We feel that this is
primarily a reflection of the slowing residential construction
and remodeling markets, and partially due to our exceptionally
strong performance in the fourth quarter of 2005, during which
we had unusually high sales of chimney repair products, as well
as storm-related sales which did not repeat in the 2006 fourth
quarter."
As a percentage of sales, gross profit in the fourth quarter of
2006 was 38.7% compared to 38.4% for the same period last year.
Operating income increased US$5.9 million to US$26.8 million, or
9.1% of sales in the fourth quarter of 2006 from US$20.9
million, or 9.3% of sales for the same period last year.
Business Outlook
Mr. Grebe stated, "2006 was a very successful year for Interline
Brands. We executed well across all of our markets and remain
confident in our ability to grow sales and earnings over the
long term. Despite current economic conditions in our pro
contractor and specialty distributor markets, our underlying
businesses remain strong. We plan to continue investing in our
proven growth initiatives, as well as in our operations
infrastructure, to ensure long-term revenue and earnings growth
for Interline."
"We feel very positive about our facilities maintenance business
and believe we will continue to take market share. Our multi-
family housing business is very strong and we feel that the
addition of AmSan to our portfolio will create numerous
opportunities to increase share in this very diverse market."
"The refinancing that we completed in July of 2006 significantly
strengthened our balance sheet and positions us well to make
acquisitions as opportunities arise. M&A activity remains
strong in the markets we serve, and our team is pursuing well-
run companies that represent a strategic fit with Interline."
"The integration of AmSan onto our common operating platform
will be a major focus for fiscal year 2007. As part of this
process, we will also be making upgrades to our distribution and
logistics infrastructure in order to increase our capacity and
lower our operating costs over the long-term."
"Despite soft economic conditions in our pro contractor and
specialty distributor markets, as well as a generally heavy
level of investment spending throughout the year, we project
that fiscal year 2007 earnings per share will be between US$1.49
and US$1.55."
"The first quarter of the fiscal year will be challenging given
economic conditions in the pro contractor and specialty
distributor end markets, as well as our strong performance in
the first quarter of 2006. We therefore project earnings per
share for the first quarter of 2007 to be between US$0.27 and
US$0.29."
Headquartered in Jacksonville, Florida, Interline Brands, Inc.
(NYSE: IBI) -- http://www.interlinebrands.com/-- is a leading
national distributor and direct marketer of maintenance, repair
and operations products to approximately 160,000 professional
contractors, facilities maintenance professionals, and specialty
distributors across North America and Puerto Rico.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
confirmed its B1 Corporate Family Rating for Interline Brands
Inc., as well as its B3 rating on the company's US$200 million
8.125% Senior Subordinate Notes due 2014. Those debentures were
assigned an LGD5 rating suggesting noteholders will experience
an 82% loss in the event of default.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations of the company:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$100m Sr. Sec.
Revolver Due
2012 Ba3 Ba2 LGD2 29%
US$100m Sr. Sec.
Term Loan Due
2013 Ba3 Ba2 LGD2 29%
US$130m Sr. Sec.
Delayed Draw
Term Loan Due
2013 Ba3 Ba2 LGD2 29%
=============
U R U G U A Y
=============
ROYAL & SUNALLIANCE: Gets Conditional Approval to Sell U.S. Unit
----------------------------------------------------------------
Delaware Insurance Commissioner Matthew Denn has approved the
disposal of Royal & SunAlliance Insurance Group plc's U.S. unit
to Arrowpoint Capital Corp., subject to a number of conditions
that are intended to protect policyholders, Randall Chase writes
for the Associated Press.
According to the report, Mr. Denn requires Royal & SunAlliance
to resolve any claims brought by policyholders and reimburse his
agency for the hiring of a claims monitor, who will hear
policyholder complaints and keep track of its indemnity
reserves.
Mr. Denn also prohibits any non-salary compensation, including a
final payout, to principals of Arrowpoint without the approval
of his department.
The British insurer will allocate US$287.5 million to pay
remaining U.S. unit claims, Bloomberg says.
However, critics of the deal argued the amount is insufficient
to ensure that obligations are met.
The insurance commissioner dismissed allegations by critics that
the British insurer was blackmailing his department by saying it
would cease to subsidize its ailing U.S. affiliates, AP relates.
"Were I convinced that Royal U.K. would continue subsidizing its
American subsidiaries indefinitely, in spite of its unequivocal
statements to both the department and shareholders that it will
not, I would deny the application," Mr. Denn wrote in his
decision.
Opponents of the deal are given five days to file a court
appeal.
Headquartered in London, Royal & SunAlliance Insurance Group PLC
-- http://www.royalsunalliance.com/-- is a FTSE 100 company,
listed on the London Stock Exchange and in New York. The group
consists of three regions -- U.K., Scandinavia and International
-- with operations in 30 countries, providing general insurance
products to over 20 million customers worldwide. In Latin
America, it operates in Brazil, Chile, Colombia, Mexico, Uruguay
and Venezuela. In Asia, the company operates in Hong Kong,
Singapore and Saudi Arabia.
* * *
As of Feb. 22, Royal & SunAlliance Insurance Group PLC carries
Moody's Ba1 preferred stock rating.
=================
V E N E Z U E L A
=================
DAIMLERCHRYSLER: Volkswagen & Renault-Nissan Not Interested
-----------------------------------------------------------
Volkswagen AG, Europe's biggest carmaker, said it is not
currently interested in buying or expanding its relationship
with DaimlerChrysler AG's Chrysler Group, various news agencies
report.
Volkswagen and Chrysler agreed last year to build a mini-van
model in a Chrysler facility. The car will bear the Volkswagen
brand.
The Renault-Nissan auto alliance is also uninterested in
Chrysler since it is focusing on its own financial woes, various
reports say citing Nissan spokeswoman Madoka Soma.
However, in a TCR report on Feb. 16, 2007, DaimlerChrysler and
General Motors Corp. are in talks about a possible purchase of
the Chrysler Group by GM, according to German publication
Manager Magazin.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
PETROLEOS DE VENEZUELA: Western Division Output Increases
---------------------------------------------------------
Production at the state oil firm Petroleos de Venezuela SA's
western division has increased by 10,000 barrels per day to
940,000 barrels per day in 2006, compared to 2005, news daily
Panorama reports.
Panorama underscores that division manager Jose Luis Parada
wants to boost production up to 80,000 barrels per day over
2007.
Business News Americas relates that Mr. Parada aims to have 66
rigs drilling all over Zulia. The division ended 2006 with 41
rigs active. Petroleos de Venezuela is importing rigs from
China to maintain the increase in production.
Mr. Parada told BNamericas that 80 workers are traveling to
China to receive training. The official estimated that
Venezuela will be constructing its own rigs in five years.
According to BNamericas, the western division handles 12,000
wells, both in production and inactive. Petroleos de Venezuela
will conduct a survey this year to determine which wells could
be restored to production.
Meanwhile, Petroleos de Venezuela's eastern division in Monagas
and Anzoategui is producing over one million barrels per day,
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.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de Venezuela
S.A. at 'BB-'. Fitch has also affirmed the
'AAA(ven)' national scale rating of the company. Fitch said the
rating outlook is stable.
* VENEZUELA: Oil Shipments to U.S. Drop to 1.14M Barrels Daily
--------------------------------------------------------------
Venezuela's oil shipments to the United States has decreased
8.2% to 1.14 million barrels per day in 2006, compared to 2005,
El Universal reports.
According to El Universal, oil shipments to US failed to attain
an average of 1.55 million barrels per day over the last decade,
falling short of the figures recorded in 2005.
Meanwhile, oil output in Venezuela decreased to 110,000 barrels
per day in January 2007, El Universal notes.
The Energy Information Administration, the statistical arm of
the US Department of Energy, said in its monthly report that
Venezuela's byproducts sale to the US decreased 6.25% to 270,000
barrels per day in 2006, from 2005.
EIA told El Universal that overall oil sales to the US dropped
in December 2006 due to lower Venezuelan exports and decreased
shipments from Canada and Mexico.
The US government is exploring energy sources that will lessen
its dependence on oil. Meanwhile, the Venezuelan government is
trying to diversify oil markets and has targeted countries like
Uruguay, Paraguay, Argentina and the Caribbean, as well as far
destinations like China and Iran, El Universal 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.
* VENEZUELA: State Bank to Offer Funding for Travels to Cuba
------------------------------------------------------------
Venezuelan state-run Banco Industrial de Venezuela will offer
low-interest loans for those who will travel to Cuba, El
Universal reports.
El Universal underscores that the Venezuelan government is
encouraging travels to Cuba by offering four plans to visit
towns like:
-- Havana,
-- Varadero,
-- Trinidad,
-- Santiago,
-- Camaguey,
-- Guardalavaca, and
-- Holguin.
Quality and Tourism Services Vice Minister Rafael Rivolta Rincon
told El Universal, "The goal this year is to benefit 100,000
Venezuela from all social strata by offering them financing at
lower interest rates through Banco Industrial de Venezuela."
The program's head, Josmar Garcia, invited Venezuelans to
participate in the plans, El Universal 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.
* BOOK REVIEW: Life, Death and the Law
--------------------------------------
Full Title: Life, Death and the Law: Law and Christian Morals
in England and the United States
Author: Norman St. John-Stevas
Publisher: Beard Books
Paperback: 380 pages
List Price: US$34.95
Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1587981130/internetbankru
pt
Norman St. John-Stevas' Life, Death and the Law demonstrates
that despite the current diversity in our Anglo-American
society, Christian ethics have played a major role in shaping
the law with regard to moral issues.
Many Christians still look to the law to enforce Christian
standards of morality and social behavior, particularly with
regard to respect for the human person and concern for human
rights.
This book examines such interplay in a liberal society, namely
that of the Anglo-American tradition.
After stating some general principles governing the relationship
between Christian morality and the law in England and the United
States, the author examines several contemporary legal-moral
issues: contraception, artificial insemination, human
sterilization, homosexuality, suicide, and euthanasia the role
that religion can, and sometimes does, play in their legal
interpretation.
***********
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
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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 * * *