/raid1/www/Hosts/bankrupt/TCRLA_Public/070227.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
Tuesday, February 27, 2007, Vol. 8, Issue 41
Headlines
A R G E N T I N A
BBVA BANCO FRANCES: Moody's Withdraws All Ratings
GETTY IMAGES: Gets Notice of Event of Default for Filing Failure
GETTY IMAGES: To Acquire WireImage for US$200 Million in Cash
YPF SA: Repsol May Work with State Firm for Malvinas Exploration
* ARGENTINA: Launches Ayacucho 6 Block Drilling with Venezuela
* ARGENTINA: Enarsa May Work with Repsol for Malvinas Drilling
* ARGENTINA: To Make Second Joint Debt Issuance with Venezuela
* ARGENTINA: Will Create Banco del Sur with Venezuela
B A H A M A S
GENERAL NUTRITION: S&P Rates Proposed US$750-Million Loan at B-
B E R M U D A
INTELSAT: Extends Distribution Contract with Uniao Norte
LESLIE W. WILSON: Final General Meeting Is Set for March 27
METROMEDIA FIBER: Final General Meeting Is Set for March 26
NEW PEMBROKE: Proofs of Claim Filing Is Until March 29
REFCO INC: RCM Trustee Wants to Disallow B. Reifler's Claim
SCOTTISH: Facing Bankruptcy Without MassMutual/Cerberus Takeover
SEA CONTAINERS: Committee Taps Kroll as Financial Advisor
B O L I V I A
BRASKEM: In Talks with Bolivian Authorities for Petrochem Plant
PETROLEO BRASILEIRO: Mulls Biodiesel Plant Works in Bolivia
* BOLIVIA: Sisab Fails to Control Rates Epsas Charges
* BOLIVIA: State Firm Inks MOU with Gazprom
B R A Z I L
ALCATEL-LUCENT: Inks GSM Network Improvement Deal with T-Mobile
ALCATEL-LUCENT: Provides Content Platform for Partner Comms
AMR CORP: Brazilian Cargo Facilities Searched by Authorities
ASHMORE ENERGY: Fitch Assigns BB Issuer Default Rating
ASHMORE ENERGY: Moody's Rates US$1.5 Bil. Credit Facility at Ba3
ASHMORE ENERGY: S&P Assigns B+ Ratings on US$1.5-Bil. New Debts
BANCO BRADESCO: Sets March 12 as Annual Stockholders' Meeting
COMMSCOPE: Earns US$127.2 Million in Quarter Ended Dec. 31, 2006
EMI GROUP: Seeking Possible Alternatives to Warner Music's Offer
EMI GROUP: Warner Music Says Takeover Offer Likely to be in Cash
ITRON INC: Makes US$235 Million Private Placement of Equity
ITRON: Buying Actaris Metering's Bonds & Stock for US$1.6 Bil.
PETROLEO BRASILEIRO: Ceara Plant Construction Starts in March
PETROLEO BRASILEIRO: Inks Oil & Gas Pact with Gazprom
C A Y M A N I S L A N D S
ABSCDO-1 WAREHOUSE: Final Shareholders Meeting Is on April 5
AMERIQUEST NIM: Sets Final Shareholders Meeting for Feb. 22
ASCEND MANAGED: Final Shareholders Meeting Is on April 6
ASPECT DIVERSIFIED: Final Shareholders Meeting Is on April 6
BALLYROCK CDO: Final Shareholders Meeting Is on April 5
CLINTON CONVERTIBLE: Final Shareholders Meeting Is on April 6
CLINTON FIXED: Final Shareholders Meeting Is on April 6
CONCORDIA MANAGED: Final Shareholders Meeting Is on April 6
INFOR GLOBAL: S&P Affirms B- Corporate Credit Rating
OPTIMAL JAPAN: Final Shareholders Meeting Is on April 6
ORIGIN MANAGED: Final Shareholders Meeting Is on April 6
PAGODA HOLDINGS: Final Shareholders Meeting Is on March 30
PARMALAT SPA: Court Orders Deloitte to Pay US$130 Mln by Feb. 23
SHARMAC MANAGED: Final Shareholders Meeting Is on April 6
UT TECHNOLOGY: Final Shareholders Meeting Is on April 6
VEGA ASSET: Final Shareholders Meeting Is on March 30
VEGA INT'L: Final Shareholders Meeting Is on March 30
VEGAPLUS ASSET: Final Shareholders Meeting Is on March 30
ZAIS MATRIX CDO I: Final Shareholders Meeting Is on April 5
ZAIS MATRIX CDO II-A: Final Shareholders Meeting Is on April 5
ZAIS MATRIX CDO II-B: Final Shareholders Meeting Is on April 5
C H I L E
ALCATEL-LUCENT: Will Build WiMax Network for Telmex Chile
COEUR D'ALENE: Earns US$88.5 Million in 2006 Fiscal Year
C O L O M B I A
CENTRAL PARKING: KCPC Holdings Acquires Firm for US$733 Million
CENTRAL PARKING: Moody's Ba3 Corp. Rating on Merger Agreement
C U B A
* CUBA: Assisting Dominican Republic on Atlantic Oil Exploration
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Reports Sustained Foreign Investment
H O N D U R A S
* HONDURAS: Fourth Mobile Concession License Auction Expected
* HONDURAS: Rejects Mining Sector's Request for New Concessions
J A M A I C A
SUGAR COMPANY: Incurs Escalating Losses
* JAMAICA: Cane Growers Unexcited by Sugar Deal with Brazil
M E X I C O
ADVANCED MARKETING: Court OKs Sale of PGW's Distribution Rights
ALESTRA SA: Eyes US$400 Million Revenues This year
AMERICAN TOWER: S&P Assigns BB+ Corporate Credit Rating
DOMINO'S INC: Gets Consents from 8-1/4% Senior Noteholders
DOMINO'S PIZZA: Net Revenues Down by 4.8% in 2006 Fourth Quarter
CONSOLIDATED CONTAINER: Commences US$392MM Senior Notes Offering
GENERAL MOTORS: Inks US$1-Bln Global Networking Deal with AT&T
INNOPHOS INC: S&P Revises Outlook to Positive from Stable
VALASSIS COMMUNICATIONS: Earns US$51.3 Mln in Year Ended Dec. 31
VALASSIS COMM: S&P Puts B- Rating on US$590-Mln Unsecured Notes
P E R U
XEROX CORPORATION: Increases Share Repurchase Program by US$500M
* PERU: Will Start Constructing Interceptor Norte in Two Months
U R U G U A Y
* URUGUAY: US Trade Agency to Decide on Gov't Projects Funding
V E N E Z U E L A
ARVINMERITOR: Repays in Full US$169.5MM Outstanding Term Loan B
ARVINMERITOR: Investors to Acquire Additional US$25MM Sr. Notes
DAIMLERCHRYSLER: Chrysler CEO LaSorda Communicates with Workers
* VENEZUELA: Bandes' Uruguayan Unit Cutting Loan Interest Rates
* VENEZUELA: Installs Eight Power Generators in Nicaragua
* VENEZUELA: Launches Ayacucho 6 Block Drilling with Argentina
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A R G E N T I N A
=================
BBVA BANCO FRANCES: Moody's Withdraws All Ratings
-------------------------------------------------
Moody's Investors Service has withdrawn all of its ratings for
BBVA Banco Frances S.A. for business reasons.
BBVA Banco Frances S.A. is a universal bank, and it held
ARS16.7 billion in assets and ARS12.6 billion in deposits as of
Dec. 31, 2006.
These ratings were withdrawn:
-- Bank financial strength rating: D-, stable outlook
-- Long term foreign currency deposit rating: Caa1,
Positive Outlook
-- Short term foreign currency deposit rating: Not Prime,
Stable Outlook
Headquartered in Buenos Aires, Argentina, BBVA Banco Frances SA
-- http://www.bancofrances.com-- conducts capital markets and
securities operations directly, in the over-the-counter market,
and through a subsidiary, in the Buenos Aires Stock Exchange.
The bank operates 227 branches, 512 automated teller machines, a
telephone banking service and an Internet banking service,
called Frances Net. Banco Frances has a market share in the
mutual fund portfolio management industry in Argentina through
Frances Administradora de Inversiones SA, and in the pension
fund industry through Consolidar AFJP SA. Banco Frances is a
subsidiary of Banco Bilbao Vizcaya Argentaria.
GETTY IMAGES: Gets Notice of Event of Default for Filing Failure
----------------------------------------------------------------
Getty Images Inc. disclosed in a regulatory filing with the U.S.
Securities and Exchange Commission that on Feb. 21, 2007, it
received notice of an Event of Default related to the Company's
failure to file its Third Quarter Report.
The company had, on Nov. 29, 2006, received two notices of a
purported default from certain holders of the Company's
US$265 million aggregate principal amount of 0.50% Convertible
Subordinated Debentures, Series B due 2023.
The notices were received from holders who claimed to hold more
than 25% in principal amount of the outstanding Debentures
asserting that the company's failure to file its Quarterly
Report on Form 10-Q for the third quarter of 2006 with the SEC
by the prescribed filing date under SEC regulations was a
default under Section 17.01 of the Indenture dated as of
Dec. 16, 2004, between the company, as issuer, and The Bank of
New York, as Trustee, relating to the Debentures.
Section 17.01 incorporates by reference Section 314(a) of the
Trust Indenture Act of 1940. The notices of default demanded
that the company cure the purported default within 60 days from
their receipt, after which such default would allegedly develop
into an "Event of Default," as defined in the Indenture. The
company did not cure the purported default within 60 days from
receipt of the notices of purported default.
The company does not believe that it has failed to perform any
of its obligations under the Indenture because the Indenture
does not contain an express covenant requiring the company to
provide the Trustee or the bondholders with periodic reports
such as the Quarterly Report on Form 10-Q for the third quarter
of 2006. While Section 314(a) of the TIA is incorporated into
the Indenture by virtue of Section 17.01 thereof, the company
does not believe that the TIA requires periodic reports to be
filed with the SEC or provided within any prescribed period of
time. Consequently, in the company's view, these notices of
default are without merit.
Because the company has received a notice of an "Event of
Default" from the Trustee, the Trustee or holders of at least
25% in aggregate principal amount of the Debentures then
outstanding could declare all unpaid principal and accrued
interest on the Debentures then outstanding to be immediately
due and payable. The company believes that if the Debentures
were to be accelerated, it would have adequate financial
resources to pay any unpaid principal and any interest that
would then be due on the Debentures and also would have the
option of contesting the legal basis for the notices of default
and any such acceleration.
About Getty Images
Getty Images Inc. -- http://gettyimages.com/-- (NYSE: GYI)
creates and distributes visual content and the first place
creative professionals turn to discover, purchase and manage
imagery. The company's award-winning photographers and imagery
help customers create inspiring work which appears every day in
the world's most influential newspapers, magazines, advertising
campaigns, films, television programs, books and Web sites.
Headquartered in Seattle, WA and serving customers in more than
100 countries, Getty Images believes in the power of imagery to
drive positive change, educate, inform, and entertain. The
company has corporate offices in Australia, the United Kingdom
and Argentina.
* * *
As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services lowered its ratings on
Seattle, Washington-based visual imagery company Getty Images
Inc., including lowering the corporate credit rating to 'B+'
from 'BB', and placed the ratings on CreditWatch with developing
implications.
GETTY IMAGES: To Acquire WireImage for US$200 Million in Cash
-------------------------------------------------------------
Getty Images Inc. has entered into an agreement to purchase
WireImage for approximately US$200 million in cash. The deal
also will include MediaVast Inc., the owner of WireImage, and
sub-brands FilmMagic and Contour Photos. The acquisition is
subject to regulatory review and other customary closing
conditions.
Getty Images says that the acquisition is expected to support
the company's stated strategy of accelerating the growth of its
editorial imagery business.
"The demand for entertainment, event and celebrity imagery is
growing exponentially, and Getty Images has determined that
there are great growth opportunities in the category," said
Jonathan Klein, co-founder and CEO of Getty Images. "A key
focus for us in the last several years has been to grow our
editorial imagery business, particularly in international
markets. The proposed acquisition of WireImage will enable us
to develop new products and services, including podcasts,
editorial video, multimedia, mobile, consumer offerings and
exclusive imagery. We are confident that the proposed
acquisition will help us expand our global entertainment and
celebrity imagery business, allowing us to satisfy growing
customer demand in the U.S. and abroad."
Under the agreement, WireImage's founding photographers and key
executives have signed long term agreements to remain with
WireImage and Getty Images following the acquisition.
The acquisition will bring together two leading innovators
within the entertainment imagery category. Getty Images has
made entertainment and celebrity imagery accessible to a growing
global entertainment marketplace through its industry-leading
Web site, featuring search in local languages and purchase in
local currencies, and leads the industry in delivery speed,
service and international distribution. WireImage has built a
reputation for depth and breadth of entertainment coverage and
has an innovative and customer-friendly Web site.
Several of the companies' product offerings complement each
other. For example, Getty Images' Exclusive by Getty Images
offering, launched in 2006, and MediaVast's Contour Photos will
combine to give customers unprecedented access to celebrity
portraiture and compelling editorial features.
The business of entertainment imagery has grown significantly in
recent years, and like the many other players in the space,
Getty Images has benefited. The company has targeted this
category for continued growth, especially in non-English
speaking countries, and the acquisition of WireImage is expected
to help the company expand the entertainment and celebrity
imagery segment.
Getty Images plans to maintain MediaVast's three brands:
WireImage, FilmMagic, and Contour Photos, and its Web sites.
WireImage's team and Getty Images will continue to generate new
imagery for their respective collections and make it available
for online distribution, both in the U.S. and globally.
"We are very excited to be joining Getty Images," said Jason
Nevader, co-founder and CEO of MediaVast. "Under the Getty
Images umbrella our customers will be able to take advantage of
Getty Images' global, localized e-commerce platform. Getty
Images' breadth of products and services, including their vast
archival collections, will give our customers more choice and
richer, more accessible content."
The company estimates, on a preliminary basis, that the
acquisition will be neutral to earnings per share, excluding
amortization, in 2007 and accretive to earnings per share on a
GAAP basis in 2008. WireImage's portfolio includes an online
archive of over 8.5 million images. The company has about 230
employees and offices in New York, Los Angeles, Miami, Atlanta,
Las Vegas, London, Hamburg, Tokyo, Shanghai, Sydney, Madrid, and
Amsterdam.
About Getty Images
Getty Images Inc. -- http://gettyimages.com/-- (NYSE: GYI)
creates and distributes visual content and the first place
creative professionals turn to discover, purchase and manage
imagery. The company's award-winning photographers and imagery
help customers create inspiring work which appears every day in
the world's most influential newspapers, magazines, advertising
campaigns, films, television programs, books and Web sites.
Headquartered in Seattle, WA and serving customers in more than
100 countries, Getty Images believes in the power of imagery to
drive positive change, educate, inform, and entertain. The
company has corporate offices in Australia, the United Kingdom
and Argentina.
* * *
As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services lowered its ratings on
Seattle, Washington-based visual imagery company Getty Images
Inc., including lowering the corporate credit rating to 'B+'
from 'BB', and placed the ratings on CreditWatch with developing
implications.
YPF SA: Repsol May Work with State Firm for Malvinas Exploration
----------------------------------------------------------------
A spokesperson of Repsol, YPF SA's parent company, told Business
News Americas that the firm could collaborate with Argentine
state oil Energia Argentina to explore hydrocarbons in the
offshore Malvinas basin.
Local paper El Cronista relates that the basin exploration is
set for 2008.
Repsol previously disclosed plans to invest US$4.6 million for
exploration and production in Argentina in 2007-2009, BNamericas
states.
* * *
Fitch Ratings assigned BB+ long-term issuer default rating on
YPF SA. Fitch said the outlook is stable.
Moody's Investors Service assigned these ratings on YPF SA:
-- B2 long-term foreign currency corporate family
rating; and
-- Ba2 foreign currency senior unsecured rating;
Moody's said the outlook is negative.
* ARGENTINA: Launches Ayacucho 6 Block Drilling with Venezuela
--------------------------------------------------------------
Argentina said in a statement that it has started drilling the
Ayacucho 6 block in Venezuela's Orinoco extra-heavy crude belt
in Anzoategui.
Venezuelan state-run oil firm Petroleos de Venezuela SA told
Business News Americas that drilling is focused on the MFD-29E
well in the area of MFD-AJ (A604). The project is part of
Venezuela's Magna Reserva reserve assessment plan that Petroleos
de Venezuela and its partners are making.
Xinhua News relates that Petroleos de Venezuela and Energia
Argentina, its Argentine counterpart, will exploit the MFD-29E
heavy crude well.
The Argentine planning ministry said in a statement that Energia
Argentina and Petroleos de Venezuela aim for a September
certification of the reserves in the Orinoco area.
Petroleos de Venezuela and Enarsa could produce 300,000 barrels
per day of oil in the Orinoco area. The figure is almost 50% of
Argentina's 700,000-barrel per day production. First results
are expected for 2009, according to the Argentine ministry's
statement.
The Argentine government said in a statement that the heads of
state signed accords related to:
-- vehicular natural gas,
-- oil,
-- natural gas, and
-- diesel.
Argentina's President Nestor Kirchner and Hugo Chavez, his
Venezuelan counterpart, also signed a deal for the export of
Argentine meat to Venezuela, Xinhua states.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
* ARGENTINA: Enarsa May Work with Repsol for Malvinas Drilling
--------------------------------------------------------------
A spokesperson of Repsol, YPF SA's parent company, told Business
News Americas that the firm could collaborate with Argentine
state oil Energia Argentina SA to explore hydrocarbons in the
offshore Malvinas basin.
Local paper El Cronista relates that the basin exploration is
set for 2008.
Repsol previously disclosed plans to invest US$4.6 million for
exploration and production in Argentina in 2007-2009, BNamericas
states.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
* ARGENTINA: To Make Second Joint Debt Issuance with Venezuela
--------------------------------------------------------------
Argentina will make the second issuance of the Bond of the South
with Venezuela for US$1.5 billion, El Universal reports.
The Bond of the South is an instrument combining debt titles of
Argentina and Venezuela. It was formed by a treaty between the
two countries that resulted in the purchase of the debt of
Argentina by Venezuela. It was first proposed earlier in 2006
by Argentine President Nestor Kirchner as part of a plan to make
new lines of financing in South America.
The report says that Venezuela sold on Nov. 13, 2006, about US$1
billion in the Bond of the South, which include:
-- US$500 million covered interest and capital
titles of Venezuela,
-- US$300 million Argentine Boden 2012, and
-- US$200 million Argentine Boden 2015.
A Boden is a federal bond issued after the 2002 default.
According to El Universal, Venezuela's legislature has ratified
a debt issuance of US$2.4 billion. Part of the US$2.4 billion
debt issue will be used to launch the second issuance.
The Associated Press relates that Venezuela and Argentina will
each issue US$750 million of the bond in its local market.
The bond will have an excellent coupon rate, the Associated
Press relates, citing President Kirchner.
According to El Universal, the bonds are attractive for
Venezuelan investors. They allow for the legal purchase of
foreign currency amidst stringent exchange controls. The bnods
would also help Venezuela absorb liquidity, a factor that
increases inflation in the nation.
Argentina and Venezuela believed that the bonds will strengthen
their alliance and make new lines of financing in South America,
AP says.
Meanwhile, the Argentine government is facing debt maturity for
US$13.5 billion this year. Argentina has made two debt
issuances for US$500 million each, with yield at 7.71%.
Venezuela Purchases US$750 Million in Argentine Debt Bonds
Argentine Minister of Finance Felisa Miceli told the Argentine
daily news Clarin that Venezuela bought US$750 million in
Argentine debt bonds maturing in 2015.
Argentine reporters say that Venezuela's Ministry of Finance has
already paid Argentina for the Boden 15 titles.
The bonds will be resold in the US$1.5-billion issuance of the
Bond of the South, according to El Universal.
Reuters reports that Venezuela has become the Argentine
government's major source of funds, with direct purchases of
debt titles surpassing US$3 billion.
Venezuela deposited about US$750 million on Feb. 16, Minister
Miceli told Clarin.
The minimum investment to buy the Bond of the South will be
US$1,000. The operation is open to small investors, small
savers, savings associations and cooperatives, El Universal
says, citing President Chavez.
President Chavez commented to El Universal, "This operation is a
good example for other countries, as this is not dependent upon
the international financial architecture, we are becoming
independent."
The Venezuelan leader told El Universal that the transaction
amounts to democratization of public finances.
El Universal emphasizes that in 18 months, Venezuela has bought
US$3.7 billion in Argentinean debt bonds, and then sold US$3
billion to domestic banks.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
* ARGENTINA: Will Create Banco del Sur with Venezuela
-----------------------------------------------------
Argentine reporters say that Argentina will create with
Venezuela a regional development bank, which will be called
Banco del Sur.
Business News Americas relates that Banco del Sur will provide
financing for regional projects in areas like infrastructure and
human development.
Bolivia, Brazil, Ecuador and Paraguay will join the bank as
members, Argentine daily El Cronista notes.
El Universal underscores that Argentina's President Nestor
Kirchner will visit Venezuela to promote the creation of the
bank.
President Kirchner and Venezuela's President Hugo Chavez will
also sign trade agreements, define the Venezuelan financial aid
to Argentine dairy cooperative Sancor and disclose the first
joint drilling of an oil well by Venezuelan state oil Petroleos
de Venezuela and Argentine counterpart Enarsa, El Universal
states.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
=============
B A H A M A S
=============
GENERAL NUTRITION: S&P Rates Proposed US$750-Million Loan at B-
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
General Nutrition Centers Inc. The corporate credit rating was
lowered to B- from B. All ratings were removed from CreditWatch
with negative implications, where they were placed on
Dec. 22, 2006. The outlook is stable.
At the same time, S&P assigned its bank loan and recovery
ratings to the company's proposed US$750 million bank facility.
The facility is rated 'B-' (the same as the corporate credit
rating on General Nutrition) with a recovery rating of '3',
indicating the expectation for meaningful (50%-80%) recovery of
principal in the event of payment default.
In addition, Standard & Poor's assigned General Nutrition's
proposed US$300 million senior unsecured floating-rate notes due
2014 and US$125 million senior subordinated notes due 2015 a
credit rating of 'CCC' (two notches below the corporate credit
rating).
Proceeds, along with a US$589 million equity investment, will be
used to fund the purchase of General Nutrition by an investor
group comprised of Ares Management LLC and Ontario Teachers'
Private Capital and to refinance existing debt.
"The rating action," said Standard & Poor's credit analyst
Jackie Oberoi, "reflects a resulting capital structure that is
highly leveraged and cash flow protection measures are weak."
General Nutrition Centers, Inc., with headquarters in
Pittsburgh, Pennsylvania, retails and manufactures vitamins,
minerals, and nutritional supplements domestically and
internationally through about 5850 company-operated and
franchised stores. Revenue for the twelve months ended
September 2006 approached US$1.5 billion. General Nutrition's
Latin American operations are in the Bahamas, Cayman Islands,
Chile, Colombia, Costa Rica, among others.
=============
B E R M U D A
=============
INTELSAT: Extends Distribution Contract with Uniao Norte
--------------------------------------------------------
Intelsat Ltd. said in a statement that it has extended a
contract with Brazilian university Uniao Norte do Parana de
Ensino to broaden distribution of the school's distance learning
program.
Business Americas relates that the increased capacity will come
through Intelsat's IS-1R satellite.
According to Intelsat's statement, Uniao Norte officials said
demand for distance learning is increasing. Throughout the past
year, the school increased the number of "teleclassrooms" it
operates to over 1,000. About 70,000 students were enrolled in
its Connected Presence Teaching System.
BNamericas underscores that Uniao Norte operates a Very Small
Aperture Terminal or VSAT satellite network with Hughes
Telecomunicacoes do Brasil. Hughes Network Systems provides the
network.
More satellite capacity from Intelsat allows Uniao Norte's
Connected Education Center to expand its VSAT network,
BNamericas states.
Headquartered in Bermuda, Intelsat, Ltd. --
http://www.intelsat.com/-- offers telephony, corporate network,
video and Internet solutions around the globe via capacity on 25
geosynchronous satellites in prime orbital locations. Customers
in approximately 200 countries rely on Intelsat's global
satellite, teleport and fiber network for high-quality
connections, global reach and reliability. It is owned by
Apollo Management, Apax Partners, Madison Dearborn, and Permira.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2007, Fitch Ratings has affirmed Intelsat, Ltd.'s
Issuer Default Rating at 'B'. Fitch said the rating outlook is
stable.
Fitch has assigned these new ratings on Intelsat, Ltd.
(Bermuda):
-- US$600 million senior unsecured floating-rate notes due
2015 'CCC+/RR6'; and
-- Proposed US$1 billion guaranteed senior unsecured term
loan due 2014 'BB-/RR2'.
Fitch affirmed these ratings:
Intelsat (Bermuda), Ltd.:
-- Issuer Default Rating 'B';
-- Senior unsecured guaranteed notes 'BB-/RR2'; and
-- Senior unsecured non-guaranteed notes 'CCC+/RR6'.
Intelsat Intermediate Holding Company, Ltd:
-- Issuer Default Rating 'B'; and
-- Senior unsecured discount notes 'B-/'RR5'.
Intelsat Subsidiary Holding Company, Ltd.:
-- Issuer Default Rating 'B';
-- Senior secured credit facilities 'BB/RR1'; and
-- Senior unsecured notes 'BB-/RR2'.
Intelsat Corp:
-- Issuer Default Rating 'B';
-- Senior secured credit facilities 'BB/RR1';
-- Senior secured notes 'BB/RR1'; and
-- Senior unsecured notes 'B/RR4'.
In addition, Fitch has withdrawn these ratings due to its
refinancing:
Intelsat (Bermuda), Ltd:
-- US$600 million senior unsecured credit facility CCC+/RR6'.
Intelsat Holding Corporation (PanAmSat Holding Corporation):
-- Issuer Default Rating 'B.
LESLIE W. WILSON: Final General Meeting Is Set for March 27
-----------------------------------------------------------
Leslie W. Wilson Cycle Shop Ltd.'s final general meeting will be
at 9:00 a.m. on March 27, 2007, or as soon as possible, at the
liquidator's place of business.
Leslie W. Wilson's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company will be disposed.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
METROMEDIA FIBER: Final General Meeting Is Set for March 26
-----------------------------------------------------------
Metromedia Fiber Network (Bermuda) Ltd.'s final general meeting
will be at 9:00 a.m. on March 26, 2007, or as soon as possible,
at the liquidator's place of business.
Metromedia Fiber's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company will be disposed.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
NEW PEMBROKE: Proofs of Claim Filing Is Until March 29
------------------------------------------------------
New Pembroke Insurance's creditors are given until
March 29, 2007, to prove their claims to Joel Czember, 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.
New Pembroke's sole member decided on Feb. 8, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Joel Czember
Thistle House
4 Burnaby Street
Hamilton, Bermuda
REFCO INC: RCM Trustee Wants to Disallow B. Reifler's Claim
-----------------------------------------------------------
Marc S. Kirschner, as the duly appointed Plan Administrator of
Refco Capital Markets Ltd., pursuant to the Reorganized Debtors'
Chapter 11 Plan, and as Chapter 11 Trustee of the RCM estate,
asks the Hon. Lewis A. Kaplan of the U.S. Southern District of
New York to disallow Claim No. 11424 filed by Bradley C. Reifler
against RCM for US$5,851,504.
Mr. Reifler is the grandson of the founder of Refco Inc., and
the son-in-law of Refco's former chief executive officer, Thomas
Dittner. Mr. Reifler was a long-standing broker at Refco and
ran a business through Refco's trading platform.
Tina L. Brozman, Esq., at Bingham McCutchen LLP, in New York,
relates that in 1996, Mr. Reifler evidently opened, without
documentation, RCM Account No. 2403, entitled "Reifler Trading
Mark-Up Account," through which he traded currencies.
In July 2000, Mr. Reifler transferred to Refco Group Ltd. LLC,
all of the commodities customers, doing business by and through
Reifler Trading Corp., for whom he acted as broker. The
transaction took the form of a merger of Reifler Trading into
RGL. Mr. Reifler was the sole shareholder of Reifler Trading
and received US$13,700,000 for the transfer.
Ms. Brozman states that at about the closing of the sale of the
commodities business, Mr. Reifler resigned from RCM. However,
after resignation, he continued to do business with RCM, under
Account No. 4087, for his foreign exchange and emerging market
customers. Mr. Reifler also maintained four additional accounts
at RCM, entitled Reifler Capital Advisors; Reifler Capital
Advisors LLC; Reifler Trading Corp.; and Reifler, Bradley.
According to Ms. Brozman, Mr. Reifler alleged that in June 2000,
Philip Bennett, former CEO of Refco, froze Account 2403, to the
extent that no amounts could be debited or credited to that
account, and no interest would be earned on any amount in the
account.
The RCM Administrator, however, believes that the account was
frozen as part of an equity investment or joint venture
enterprise.
Moreover, Mr. Reifler said that after his resignation, he
entered into an oral agreement with Mr. Bennett, in which
Refco's obligation to Mr. Reifler -- evidenced by a US$5,800,000
account balance in Account 2403 -- would serve as an inducement
and overall safety net for RCM to continue to do business with
Mr. Reifler's foreign exchange and emerging market customers at
Refco.
To the contrary, the RCM Administrator believes that Mr. Reifler
entered into the agreement to gain access to lucrative
commission-based business he expected to continue to operate
through the Refco platform.
The RCM Administrator avers that there was no payment schedule
created for Account No. 2403 in 2000 or otherwise, and Mr.
Reifler never demanded for the payment of interest or principal
from the account until the claimant filed proofs of claim in
RCM's case.
The RCM Administrator notes that when Mr. Reifler traded through
the Refco platform, Mr. Reifler charged further markups to his
clients generating significant profits for Mr. Reifler.
Accordingly, the RCM Administrator insists that the Reifler
Claim should be disallowed because:
(a) Mr. Reifler cannot establish any basis for or evidentiary
proof of his claim;
(b) any loan that may have existed must be recharacterized as
an equity contribution to RCM or a contribution to a
joint venture with RCM;
(c) Mr. Reifler had previously waived any claim to the funds;
(d) Mr. Reifler is estopped by his inaction from pursuing any
claim to the funds; and
(e) Mr. Reifler is obligated to return to RCM preferential
payments aggregating US$2,509,712 pursuant to Section 502
of the Bankruptcy Code.
About Refco Inc.
Headquartered in New York City, Refco Inc. (OTC: RFXCQ) --
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 LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada. Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc. Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner
is represented by Bingham McCutchen LLP. RCM is Refco's
operating subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).
Refco Commodity Management Inc., formerly known as CIS
Investments Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436). (Refco Bankruptcy News, Issue No. 57; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
Plan Update
On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries,
along with Marc S. Kirschner, the Chapter 11 Trustee for the
estate of Refco Capital Markets, Ltd., delivered a Chapter 11
plan of reorganization and accompanying Disclosure Statement to
the Court.
On Oct. 10, 2006, the Debtors filed an Amended Plan and
Disclosure Statement and on Oct. 13, filed a Modified Amended
Disclosure Statement. On Oct. 16, 2006, the Court gave its
tentative approval on the Disclosure Statement and the Court
Clerk entered an order on Oct. 20, 2006.
On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and
certain of its direct and indirect subsidiaries, including Refco
Capital Markets, Ltd., and Refco F/X Associates LLC, was
confirmed by the Court. That Plan became effective on
Dec. 26, 2006.
SCOTTISH: Facing Bankruptcy Without MassMutual/Cerberus Takeover
----------------------------------------------------------------
Scottish Re Group Ltd. has moved to March 2 a shareholders
meeting to vote on a US$600 million takeover bid proposed by
U.S. companies MassMutual Capital Partners LLC and Cerberus
Capital Management, L.P.
The meeting has been delayed to allow shareholders an
opportunity to consider an amendment that would indemnify
MassMutual/Cerberus by US$68.5 million should they be approved
the majority owners, the company's chief executive officer said
in a statement.
Institutional Shareholder Services and Glass Lewis & Co., both
independent proxy advisory firms, recommended to Scottish Re's
shareholders to accept the offer. In an article written by
Scott Neil at the Royal Gazette, he quoted company executives as
saying that shareholders should accept the takeover offer, or
seek bankruptcy protection.
The company's fourth quarter release doesn't bode well for its
future. Its US$231.6 million quarter loss prompted ratings
downgrade from Fitch. The rating agency said in its release
that should the Cerberus/MassMutual deal goes down the drain,
the company's Insurer Financial Strength could suffer a further
downgrade to junk level from its BB+ rating.
In last week's conference call, Chief Executive Officer Paul
Goldean was quoted by the Royal Gazette as saying: "Without a
transaction such as MassMutual/Cerberus, further rating
downgrades are certain. The rating agencies have also indicated
that simply raising additional capital will not result in an
increase in our ratings. This was a significant consideration
in evaluating a potential rights offering.
"An increase in our ratings is critical not only in order to
write new business but more importantly for us to be able to
successfully to complete financing facilities in order to meet
our significant collateral.
"If the MassMutual/Cerberus transaction or a similar transaction
is not completed in the very near term the company will have no
alternative but to seek protection under applicable bankruptcy
and insolvency laws almost immediately.
"2006 was a difficult year for all the stakeholders of
ScottishRe. With the closing the MassMutual/Cerberus
transaction we look forward to returning our full attention of
the company to our reinsurance business to regain our former
status as one of the industries leading participants."
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: Committee Taps Kroll as Financial Advisor
---------------------------------------------------------
The Official Committee of Unsecured Creditors in Sea Containers
Services Ltd. and its debtor-affiliates' Chapter 11 cases asks
authority from the U.S. Bankruptcy Court for the District of
Delaware to retain Kroll Ltd. as its financial advisor, nunc pro
tunc to Oct. 26, 2006, pursuant to the terms and conditions of a
letter agreement between the parties dated Feb. 8, 2007.
According to Jane Kathryn Fryer, a director at Aspen Trustees
Ltd., Kroll has significant financial advisory skills and
7expertise in the pensions covenant field, among other things.
Kroll has advised the trustees of the Trinity Retirement Benefit
Scheme, The Rank Group Plc, Mowlem Plc, Alliance Unichem Plc,
Gala Group and Coral Group, Capita Group Plc, Galliford Try Plc,
and HCA International Ltd. In addition, the firm has
significant experience in cross-border restructurings and has
been involved as administrator of the Federal-Mogul U.K. Group
and Collins & Aikman.
Kroll has acted to protect and advance the interests of the
Official Services Committee in the Debtors' bankruptcy cases
since its formation on Oct. 26, 2006. Ms. Fryer notes that
Kroll's services have materially benefited the unsecured
creditors of Sea Containers Services, and have served to protect
their rights until Kroll's formal retention.
As a result of its services, Kroll has become directly familiar
with the facts and circumstances surrounding Sea Containers
Services and the issues that the Official Services Committee
will face during the bankruptcy cases. Kroll and its
professionals are uniquely qualified to advise the Official
Services Committee, Ms. Fryer relates.
As the Official Services Committee's financial advisor, Kroll
will:
a. evaluate the assets and liabilities of the Debtors and
their affiliates;
b. analyze and review the financial and operating statements
of the Debtors and their affiliates;
c. analyze the business plans and forecasts of the Debtors
and their affiliates;
d. provide specific valuation or other financial analysis as
the Official Services Committee may require;
e. help with the claim resolution process and related
distributions;
f. provide consideration of and advice on financial and
commercial aspects of any plan of reorganization proposed
as part of the Debtors' bankruptcy cases, including
preparation, analysis and explanation of the plan to the
Official Services Committee;
g. attend meetings of the Official Services Committee and
their advisors;
h. assist as required with negotiations among the various
creditors and stakeholders in the bankruptcy cases;
i. coordinate Kroll's work with that of other professional
advisors and assist the Official Services Committee in
the understanding and interpretation of the work;
j. coordinate regular communications among the Official
Services Committee, its professionals, and other parties
as required, to discuss ongoing matters;
k. provide accounting advice and expertise to the Official
Services Committee as required; and
1. any other matters for which the Official Services
Committee seeks the financial advisory services of Kroll
and for which Kroll agrees to provide.
Kroll will be paid for its services based on its standard hourly
rates:
Designation Hourly Rate
----------- -----------
Partner US$550
Director US$425
Senior Associate US$400
Other Senior Professional US$200 - US$295
Other Staff US$75 - US$150
The firm will also be reimbursed for necessary expenses
incurred.
Ms. Fryer discloses that the Kroll Agreement provides for a
limitation of liability, in certain circumstances, for Kroll in
connection with its engagement.
The terms and conditions of the firm's engagement will be
governed and interpreted in accordance with the laws of England
and Wales and, as applicable, the Bankruptcy Code.
Gary Squires, Esq., a partner in the corporate advisory and
restructuring group at Kroll, assures the Court that his firm is
a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code. Kroll does not represent or
hold an interest adverse to the Debtors or any other party-in-
interest in the matters regarding its engagement, Mr. Squires
adds.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE:
SCRA, SCRB) -- http://www.seacontainers.com/-- provides
passenger and freight transport and marine container leasing.
Registered in Bermuda, the company has regional operating
offices in London, Genoa, New York, Rio de Janeiro, Sydney, and
Singapore. The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, 2006, the
company's common shares and senior notes were suspended from
trading on the NYSE and NYSE Arca after the company's failure to
file its 2005 annual report on Form 10-K and its quarterly
reports on Form 10-Q during 2006 with the U.S. Securities and
Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. (Sea Containers Bankruptcy News, Issue No. 11;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The Debtors' exclusive period to file a chapter 11 plan expires
on June 12, 2007.
=============
B O L I V I A
=============
BRASKEM: In Talks with Bolivian Authorities for Petrochem Plant
---------------------------------------------------------------
Brazil's largest petrochemical company, Braskem SA, is
reportedly negotiating with Bolivian authorities for a new
investment in the Andean nation.
Petrochemical Plant
As widely reported, Braskem plans to build a US$1.4 billion
plant in Bolivia, a project that has the Brazilian government's
support. Fresh investments from Brazil were put on hold because
of a gas price dispute between the two countries.
"There is a concrete proposal from the company Braskem. The
largest petrochemical company in Brazil has presented a project
... it's an investment worth US$1.4 billion, and it has the
backing of Petrobras and the Brazilian government," Bolivian
hydrocarbons minister Carlos Villegas was quoted by Reuters as
saying to local radio Illimani. He added that the proposal has
been the most important project the government has received so
far.
Reuters says state-owned oil firm Petroleo Brasileiro is mulling
a partnership with Braskem in the petrochemical project. The
plant would use natural gas to make polyethylene.
Gas Price Accord
Brazil agreed to pay a higher price for the natural gas it buys
from Bolivia, as well as the derivatives extracted from the
fuel. Their old agreement allowed Brazil to pay for the gas and
its derivative a fixed price.
On Feb. 15, the two nations inked a deal that puts an 11% price
hike on natural gas that Brazil buys from Bolivia.
According to the Wall Street Journal, Bolivia will get an
additional US$144 million per year from Brazil. Brazil bought
Bolivian fuel for approximately US$1.3 billion in 2006.
Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins producer
in Latin American, and is among the three largest Brazilian-
owned private industrial companies. The company operates 13
manufacturing plants located throughout Brazil, and has an
annual production capacity of 5.8 million tons of resins and
other petrochemical products.
* * *
Standard & Poor's Ratings Services assigned on Sept. 22, 2006,
its 'BB' senior unsecured debt rating to the proposed up to
US$275 million bonds due Jan. 2017 to be issued by Brazil-based
petrochemical company Braskem S.A. (BB/Stable/--). The bonds
will rank pari passu with the company's other senior unsecured
notes.
Fitch assigned on Sept. 20, 2006, a rating of 'BB+' to Braskem
S.A.'s proposed issuance of US$275 million senior unsecured
notes due to 2017. The notes are being offered under Rule 144A
Regulation S. The proceeds of the offering are expected to be
used to prepay existing debts and extend debt maturities. Fitch
also maintains foreign currency and local currency Issuer
Default Ratings of 'BB+' and a national scale rating of
'AA(bra)' for Braskem. Fitch said the Rating Outlook is Stable.
PETROLEO BRASILEIRO: Mulls Biodiesel Plant Works in Bolivia
-----------------------------------------------------------
Petroleo Brasileiro SA is reportedly negotiating with Bolivian
authorities for a new investment in the Andean nation.
Biodiesel Plant
With a gas price agreement in place, state-owned oil firm
Petroleo Brasileiro is in talks to open a biodiesel plant in
Bolivia, the Associated Press reports.
The state oil firm's investments in Bolivia were put on hold
pending a resolution to the price dispute.
Bolivian authorities did not provide AP details of the upcoming
project, which is still in its early planning stage.
Gas Price Accord
Brazil agreed to pay a higher price for the natural gas it buys
from Bolivia, as well as the derivatives extracted from the
fuel. Their old agreement allowed Brazil to pay for the gas and
its derivative a fixed price.
On Feb. 15, the two nations inked a deal that puts an 11% price
hike on natural gas that Brazil buys from Bolivia.
According to the Wall Street Journal, Bolivia will get an
additional US$144 million per year from Brazil. Brazil bought
Bolivian fuel for approximately US$1.3 billion in 2006.
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.
* BOLIVIA: Sisab Fails to Control Rates Epsas Charges
-----------------------------------------------------
Tony Condori, a Bolivian lower house legislator for El Alto, has
accused basic service regulator Sisab of failing to control the
rates state water utility Epsas charges, news daily El Diario
reports.
Mr. Condori told El Diario that Epsas' rates continue to be
dollar-indexed. This has been ruled illegal.
Business News Americas relates that Mr. Condori also alleged
that Sisab failed to intervene in the dispute between Epsas and
El Alto residents.
According to BNamericas, the residents complained that water
bills rose to 100% from 40% in January, when Epsas took the
place of former concessionaire Aguas del Illimani as state water
utility.
Bolivian water minister Abel Mamani asked for an audit of Epsas'
water bills after El Alto protesters complained to government
officials about the increases that are not based on higher
rates, but on a sudden increase in water consumption, 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
* BOLIVIA: State Firm Inks MOU with Gazprom
-------------------------------------------
Bolivian state-run oil firm Yacimientos Petroliferos Fiscales
Bolivianos said in a statement that it has signed a memorandum
of understanding with natural gas major Gazprom OAO to develop a
formal joint work framework.
Business News Americas relates that Bolivia has vast gas
reserves. The government wants to boost its output and add
value to its gas, rather than exporting gas to neighboring
nations.
According to BNamericas, Yacimientos Petroliferos and Gazprom
will form a coordination committee in March to identify projects
that could be jointly developed.
Yacimientos Petroliferos and Gazprom are keen on developing
Bolivia's gas reserves throughout the hydrocarbons chain, as
well as marketing products outside the country, BNamericas
states.
About Gazprom
Headquartered in Moscow, Russia, OAO Gazprom --
http://www.gazprom.ru/eng-- produces 94% of the country's
natural gas, controls 25% of the world's reserves, and is also
the world's largest gas producer. It focuses on gas
exploration, processing, transport, and marketing. Standard &
Poor's Ratings Services raised on Jan. 17, 206, its long-term
corporate credit rating on OAO Gazprom to 'BB+' from 'BB'.
* * *
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 GSM Network Improvement Deal with T-Mobile
---------------------------------------------------------------
Alcatel-Lucent received a contract from T-Mobile, the wireless
business unit of Deutsche Telekom, one of the world's largest
service providers, to enhance its GSM network with the latest
generation of GSM/EDGE technology, dramatically increasing its
speed.
EDGE technology enables data rates of up to 220 kbit/s, and this
upgrade will significantly increase today's GPRS data rates and
offers data transmission rates of nearly four times that offered
by ISDN. This deployment will enable T-Mobile to provide its
German mobile subscribers with advanced multimedia services in
all areas including expanding the availability of its
"Web'n'Walk" mobile Internet service. The latest generation of
base stations being deployed also will help T-Mobile reduce its
operating costs.
The GSM/EDGE network to be upgraded by Alcatel-Lucent will be
operational by the end of 2007. This contract acknowledges
Alcatel-Lucent's commitment to effectively meet customers'
requirements and will further contribute to expanding its
footprint in the German market.
"Our aim is to continue to offer the best quality of any
available network, by additionally growing its performance and
reliability," Joachim Horn, CTO at T-Mobile International said.
"Thanks to the high speed of EDGE technology, T-Mobile will be
the only operator in Germany to offer broadband mobile Internet
access outside densely populated regions."
Under the agreement, Alcatel-Lucent will replace several
thousand existing GSM base stations in T-Mobile's network with
its latest 9100 Multi-standard Base Station product line. It
will upgrade the existing base stations with EDGE capability and
replace several hundred base station controllers with Alcatel-
Lucent's latest Advanced-TCA based BSC. Alcatel-Lucent will be
responsible for overall project management, including network
integration, removing old equipment and installing the new
equipment, and subcontractor management.
"This contract is the result of many years of faithful
cooperation with T-Mobile, and we are proud to have been
selected as the supplier," Philippe Keryer, President of
Alcatel-Lucent's GSM/W-CDMA/WiMAX activities, said. "We will
devote all our efforts to delivering the best-in-class turnkey
solution to T-Mobile to help it enhance the high quality of
service it insists on providing its subscribers. This new
contract shows that the flexibility and scalability of our
latest line of GSM/EDGE equipment is a key asset for optimizing
large network deployments while enabling operators to minimize
capital expenditures and reduce operating expenses."
Alcatel-Lucent has more than 170 GSM/EDGE customers in over 90
countries, making it a leading provider of mobile communications
solutions. Alcatel-Lucent is boosting its GSM/EDGE portfolio by
introducing the field-proven ATCA-based BSC Evolution associated
with the powerful TWIN Transceiver module.
About 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: Provides Content Platform for Partner Comms
-----------------------------------------------------------
Alcatel-Lucent disclosed that Partner Communications Co. Ltd.,
operating the Orange mobile network in Israel, has launched
enhanced content services using Alcatel-Lucent's delivery and
management solution.
Partner Communications consolidated its existing content
management platforms onto the Alcatel-Lucent mPower Content
Management and Delivery System enabling the service provider to
deliver more compelling television, video and music experiences
to its customers.
The software platform, obtained by Alcatel-Lucent through the
Mobilitec acquisition, enables Partner Communications to
decrease the time to market for content and reduce operating and
content management expenses.
"We are pleased to launch the new platform which we consider to
be a further enhancement of our leadership status in the content
arena in Israel," said Alon Berman, Vice President, Technology,
Partner Communications. "As a leader in 3G in Israel, this
sophisticated platform allows us the flexibility to launch a
large number of services with a shorter time to market."
The Alcatel-Lucent platform can help broadband and mobile
providers such as Partner Communications increase the operators'
average revenue per subscriber by faster delivery of more
relevant mobile and broadband content.
"The Alcatel-Lucent platform consolidates all content services
under a unified framework providing real end-to-end multimedia
experience to their subscribers," Olivier Picard, President of
Alcatel-Lucent's activities in Europe & South. "This enhanced
capability enables Partner Communication to continuously provide
attractive new services to their customers and easily manage
delivery of a large variety of new content."
The Alcatel-Lucent mPower system enables Partner Communications
to create a more personalized experience for its subscribers
because the software can handle any data format and ensure
delivery to any handset, regardless of manufacturer.
Additionally, new workflow and management tools will eliminate
manual tasks, add security and enable content providers to
easily add large numbers of new content items into the system.
The Alcatel-Lucent system will also ensure full digital rights
management for content partners.
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.
AMR CORP: Brazilian Cargo Facilities Searched by Authorities
------------------------------------------------------------
The cargo facilities of AMR Corp., American Airlines, Inc.'s
parent company, in Brazil were searched late last month by
authorities in connection with a price-fixing probe, the
Associated Press reports, citing a filing with the U.S.
Securities and Exchange Commission.
Brazilian authorities are investigating airline carriers whether
they violated the country's competition laws by conspiring to
set fuel surcharges on cargo shipments, AP relates.
The same report says AMR has been named in 44 intended class-
action suits over the cargo charges. The airline has levied
surcharges on cargo and passengers in recent years to recover
the high cost of jet fuel.
American Airlines, Inc. -- http://www.AA.com/-- American Eagle,
and the AmericanConnection regional airlines serve more than 250
cities in over 40 countries with more than 3,800 daily flights.
The combined network fleet numbers more than 1,000 aircraft.
American Airlines, Inc. and American Eagle are subsidiaries of
AMR Corporation.
* * *
As reported in the Troubled Company Reporter on Nov. 21, 2006,
Moody's Investors Service confirmed its B3 Corporate Family
Rating of AMR Corp. and its subsidiary, American Airlines Inc.,
in connection with the rating agency's implementation of its
Probability-of-Default and Loss-Given-Default rating
methodology.
ASHMORE ENERGY: Fitch Assigns BB Issuer Default Rating
------------------------------------------------------
Fitch Ratings has assigned these ratings to Ashmore Energy
International, with a Stable Outlook:
-- Issuer Default Rating of 'BB';
-- Proposed US$1 billion senior term loan; and
-- US$500 million senior revolver credit facility 'BB'.
Proceeds will be used to refinance US$1 billion of existing
senior bridge loan facilities associated with the acquisition of
Prisma Energy International in a two-stage transaction that was
completed in September 2006. The US$1 billion senior term loan
will be secured by equity shares of Ashmore Energy's top-level
holding companies. A portion of the term loan (US$300 million)
will amortize on a straight-line basis over the seven-year term
(US$42 million annually) with the remainder (US$700 million) due
at maturity, as well as a fully committed, five-year revolver of
US$500 million to fund working capital and general corporate
needs.
The ratings reflect a solid portfolio of energy companies with
predictable cash flow and moderate leverage. The assets are
focused in three primary lines of business including: electric
distribution, power generation, and natural gas distribution and
transportation. Ashmore Energy's assets consist of 16 energy
companies in which Ashmore Energy has direct or indirect control
of the operation, as well as three minority stakes. All of the
assets are operating and generally performing well. Ashmore
Energy's operating assets have a relatively stable base of
revenues and cash flows as more than 90% of its revenues are
either from contracted Power Purchase Agreements or PPAs, or
from regulated energy businesses. Contracted and regulated
revenues and cash flows tend to be more stable and have lower
business risk. Contracted revenues from long-term PPAs are
primarily with government-owned off-takers. In addition,
Ashmore Energy has an experienced operating management team.
Cash flows are geographically concentrated in Brazil (rated
'BB', with a Positive Outlook by Fitch) and more generally in
Latin America. From a portfolio standpoint, 87% of consolidated
cash flows can be attributed to companies located in Latin
America and 64% of consolidated cash flows are derived from
Brazilian assets. Cash flow is concentrated in non-investment-
grade countries and is generally rated in the 'BB/BB-' range.
Additionally, Ashmore Energy's cash flow is concentrated in five
key assets: Elektro (Brazil), Cuiaba (Brazil), San Felipe
(Dominican Republic), Promigas (Colombia), and Trakya (Turkey).
The largest cash flow contributor is Brazilian power
distribution company, Elektro, which at the end of fiscal 2006,
represented 43% of consolidated EBITDA and approximately 55.3%
of Ashmore Energy's dividend cash flow. Elektro is a moderately
low risk electric distribution business serving 1.9 million
customers in the State of Sao Paulo. Elektro operating company
leverage is low, with net debt to EBITDA of 1.1x for fiscal
year-end 2006. Concentrations somewhat limit the benefits of
diversification.
Ashmore Energy is moderately leveraged with debt and cash flow
levels consistent with the rating category. Leverage as
measured by consolidated debt to EBITDA is currently around
3.7x. Consolidated debt approximates US$2.5 billion and
consolidated EBITDA is currently estimated to be between US$650
million-US$675 million; the company also generates an additional
US$100 million-US$125 million in interest income from current
cash balances. Over the next few years, leverage is expected to
trend lower as total consolidated debt to EBITDA should drop
below 3x by 2010.
AEI's liquidity is strong as exemplified in both cash flow to
debt service coverage and net debt to EBITDA ratios. Healthy
levels of consolidated cash (approximately US$1 billion), as
well as the US$500 million revolver, permit the company to
weather any potential downturns in the business, and will enable
the company to continue to carry out strategic initiatives.
Fitch expects that the company will continue to maintain
sufficient cash on the balance sheet to provide adequate
liquidity in the business for future investment purposes.
Ashmore Energy anticipates that parent company balance sheet
cash will decrease to approximate US$800 million by fiscal year-
end 2007 and then continue to build absent any additional
investment.
Parent-level free cash flow is solid and at levels sufficient to
manageably service debt. Dividends and other cash flows (after
withholding and other transfer taxes) from the operating
companies to the holding company should exceed US$450 million
annually over the next several years. Parent company debt
currently totals US$1.6 billion and consists of US$976 million
of senior term loan and approximately US$560 million of payment-
in-kind or PIK notes. Parent company debt is expected to
gradually increase as the par value of the subordinated PIK
notes increases. Parent company debt service (interest and
principal amortization) is expected to be approximately US$125
million. Over the next several years free cash flow to debt
service should remain stable, ranging between 3.0x-3.5x.
The ratings incorporate the structural subordination of the bank
facility to operating company debt. Parent company debt of
US$1.6 billion represents 62% of consolidated debt; Elektro
third-party debt is US$417 million or 17% of consolidated debt.
Total consolidated debt of US$2.5 billion is balanced between
the operating and parent company at US$929 million and US$1.5
billion, respectively. Consolidated EBITDA for fiscal 2006 is
estimated to be between US$650 million-US$675 million; current
interest income is running between US$100 million-US$125 million
annually. Operating company debt is generally funded in local
currencies, reducing foreign exchange risk. The term loan and
revolver are structurally subordinate to operating company debt
and rely on dividends from the key assets. Parent company debt
also includes US$560 million of subordinate PIK notes which have
limited acceleration rights. Over the medium term, projected
2008 dividend cash flows to Ashmore Energy are expected to cover
debt service by slightly more than 4x on average.
Ashmore Energy International -- http://www.ashmoreenergy.com--
owns and operates a portfolio of energy infrastructure assets in
power generation, transmission, and distribution of natural gas,
gas liquids, and electric power. Ashmore Energy's portfolio,
directly or indirectly, consists of 19 companies in 14
countries, most of which are located in Latin America. The
company's largest asset is Brazilian electric distribution
company, Elektro, which represents approximately 43% of EBITDA,
and 55.3% of fiscal 2006 consolidated cash flow to parent
company Ashmore Energy. Consolidated revenues and EBITDA are
approximately US$2.5 billion and US$650 million-US$675 million,
respectively. Consolidated debt and balance sheet cash are
expected to be US$2.5 billion and US$1.0 billion, respectively,
at fiscal year-end 2006.
ASHMORE ENERGY: Moody's Rates US$1.5 Bil. Credit Facility at Ba3
----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to the proposed
senior secured credit facilities of Ashmore Energy
International. The proposed credit facilities include a US$500
million revolving credit facility due 2012 and a US$1 billion
term loan due 2014. Moody's also assigned a B1 corporate family
rating to the company. The ratings assigned to the senior
secured facilities reflect both the overall probability of
default of the company, for which Moody's assigns a probability
of default rating or PDR of B1 and loss given default or LGD
assessments of LGD 3 (35%) for the term loan and the revolving
credit facility. The rating outlook for AEI is stable.
Proceeds from the credit facilities will be used to refinance
existing indebtedness, pay transaction fees, and for general
corporate purposes. The credit facilities will be secured by a
pledge on the shares of the top tier holding companies of
Ashmore Energy's operating companies (including any operating
companies or other entities acquired after the closing date) and
a pledge on all secured loans made by Ashmore Energy to any of
its subsidiaries. Ashmore Energy's capital structure also
includes subordinated PIK notes in the amount of approximately
US$560 million (including accrued interest) that are not rated.
Ashmore Energy is a diversified energy company with equity
interests in energy infrastructure assets, including: natural
gas distribution, transportation, and services; power
generation; and power distribution. Ashmore Energy is majority
owned by investment funds that have directly or indirectly
appointed Ashmore Investment Management Limited as their
investment manager. The company (formerly known as Prisma
Energy International) was acquired from Enron and certain of its
affiliates in 2006.
The Ba3 rating on Ashmore Energy's proposed credit facilities
reflects the security afforded these facilities under the credit
agreement. The company's B1 CFR reflects the following credit
challenges:
1) Ashmore Energy's focus on equity investments in energy
assets located primarily in speculative grade emerging
markets, including some countries where the risk of
nationalization or adverse changes to the contractual
arrangements underlying several projects is particularly
high;
2) Structural subordination of the credit facilities to
existing project level debt of approximately
US$900 million;
3) Concentration risk associated with Ashmore Energy's
Brazilian power distribution company, which generates
over 50% of the parent company's cash inflows; and
4) Risks associated with the company's current acquisitive
growth strategy.
These credit challenges are mitigated by the following credit
strengths:
1) The stable and predictable cash flows provided by most
of the company's operating companies;
2) Ashmore Energy's moderately leveraged financial profile,
including the relatively low amount of debt at key
subsidiaries; and
3) The supportive regulatory frameworks and contractual
arrangements governing most of the company's operating
companies, which mitigate or insulate them against a
number of risks, including inflation, fuel price
volatility, volume risk, and, in some cases, currency
fluctuations.
Ashmore Energy's stable outlook reflects Moody's expectation
that the company will maintain a moderate financial profile and
prudent risk management practices, including financing
acquisitions with an appropriate mix of debt and equity.
Moody's ratings are predicated upon the final structure and
documentation being consistent with our current understanding of
the transaction.
Ashmore Energy International -- http://www.ashmoreenergy.com--
owns and operates a portfolio of energy infrastructure assets in
power generation, transmission, and distribution of natural gas,
gas liquids, and electric power. Ashmore Energy's portfolio,
directly or indirectly, consists of 19 companies in 14
countries, most of which are located in Latin America. The
company's largest asset is Brazilian electric distribution
company, Elektro, which represents approximately 43% of EBITDA,
and 55.3% of fiscal 2006 consolidated cash flow to parent
company Ashmore Energy. Consolidated revenues and EBITDA are
approximately US$2.5 billion and US$650 million-US$675 million,
respectively. Consolidated debt and balance sheet cash are
expected to be US$2.5 billion and US$1.0 billion, respectively,
at fiscal year-end 2006.
ASHMORE ENERGY: S&P Assigns B+ Ratings on US$1.5-Bil. New Debts
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating to Ashmore Energy International.
At the same time, Standard & Poor's assigned its 'B+' secured
debt rating and '3' recovery rating to Ashmore Energy's US$500
million revolving credit facility due 2012 and the company's
US$1.0 billion term loan due in 2014. The outlook is stable.
Ashmore Energy will use the proceeds from the term loan to
refinance its original debt from when it acquired its assets
from Enron Corp., provide for working capital, and other general
corporate purposes.
The '3' recovery rating assigned to the term loan indicates
expectations of meaningful recovery (50%-80%) of principal in a
payment default scenario.
"We view Ashmore Energy's significant asset concentration in
emerging markets and its reliance on distributions from
investments in companies focused on the energy sector in
jurisdictions with considerable regulatory and operating
uncertainties and potential currency devaluation to be material
risks," said Standard & Poor's credit analyst Kenneth L. Farer.
Standard & Poor's also said that the stable outlook reflects
that Ashmore should maintain sufficient liquidity and dividends
from its investment portfolio to meet its obligations over the
near term.
Ashmore Energy International -- http://www.ashmoreenergy.com--
owns and operates a portfolio of energy infrastructure assets in
power generation, transmission, and distribution of natural gas,
gas liquids, and electric power. Ashmore Energy's portfolio,
directly or indirectly, consists of 19 companies in 14
countries, most of which are located in Latin America. The
company's largest asset is Brazilian electric distribution
company, Elektro, which represents approximately 43% of EBITDA,
and 55.3% of fiscal 2006 consolidated cash flow to parent
company Ashmore Energy. Consolidated revenues and EBITDA are
approximately US$2.5 billion and US$650 million-US$675 million,
respectively. Consolidated debt and balance sheet cash are
expected to be US$2.5 billion and US$1.0 billion, respectively,
at fiscal year-end 2006.
BANCO BRADESCO: Sets March 12 as Annual Stockholders' Meeting
-------------------------------------------------------------
Banco Bradesco S.A. notified all its stockholders to gather at
the Annual and Special Stockholders' Meetings, to be held
cumulatively on March 12, 2007, at 4:00 p.m., at the company's
headquarters in Cidade de Deus, Vila Yara, Osasco, Sao Paulo,
5th floor, Salao Nobre, Predio Novo, in order to:
Annual Stockholders' Meeting:
1. approve the Administration's accounts, examine, discuss and
vote the Management Report, the Financial Statements,
including the allocation of Net Income, the Independent
Auditors and Fiscal Council's Reports and the Summary of
the Audit Committee Report, related to the fiscal year
ended on Dec. 31, 2006;
2. elect the Board of Directors' members, being necessary,
pursuant to Instructions #165, as of Dec. 11, 1991, and
#282, as of June 26, 1998, issued by CVM (Brazilian
Securities and Exchange Commission), a minimum percentage
of 5% of the voting capital so that stockholders may
request the adoption of the multiple vote process;
3. elect the Fiscal Council's members, pursuant to Article 161
of Law #6,404/76;
4. establish the Administration's global annual compensation,
pursuant to the provisions of the Company's Bylaws.
Special Stockholders' Meeting:
1. examine the Board of Directors' proposal to increase the
capital stock in the amount of BRL3,800,000,000.00, from
BRL14,200,000,000.00 to BRL18,000,000,000.00, by using part
of the balance of the "Profit Reserve - Statutory Reserve"
account, attributing to the Company's stockholders, free of
charge, as stock bonus, one new stock, of the same type,
for each stock held. The stock bonus will be granted on a
date to be disclosed to the market, after the process is
approved by the Brazilian Central Bank. Simultaneously to
the Brazilian Market operation, and in the same proportion,
the stock bonus will benefit DR (Depositary Receipts)
holders in the U.S. (NYSE) and European (Latibex) Markets;
2. amend the "caput" of Article 6 of the company's By-Laws,
as a result of the previous item.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. --
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.
COMMSCOPE: Earns US$127.2 Million in Quarter Ended Dec. 31, 2006
----------------------------------------------------------------
CommScope Inc. announced strong fourth quarter results for the
period ended Dec. 31, 2006. The company reported fourth quarter
sales of US$393.7 million and net income of US127.2 million. The
reported net income includes after-tax charges of US$1.1 million
related to restructuring costs. Excluding this special item,
adjusted fourth quarter earnings were US$28.3 million.
For the fourth quarter of 2005, CommScope reported sales of
US$345.8 million and net income of US$16.6 million. The
reported net income included total after-tax charges of US$11.6
million related to restructuring costs and an after-tax gain of
US$8.3 million related to recovery of accounts receivable that
had previously been written off. Excluding these special items,
adjusted earnings were US$19.9 million.
"We are very pleased to celebrate our 30th anniversary with
record performance," said Frank M. Drendel, CommScope Chairman
and Chief Executive Officer. "During 2006, we increased sales
21%, improved operating income by more than 75% and grew cash
flow from operations by 38% to US$118.8 million. I am
particularly proud of CommScope's team for creating profitable
growth while successfully implementing the global manufacturing
initiatives."
"Powerful drivers are changing the face of global
telecommunications," stated Mr. Drendel. "Higher-bandwidth
network applications, broadband video growth and 'IP-everywhere'
business models continue to drive global demand for
infrastructure solutions. We believe that each of our business
segments is well positioned for ongoing success due to the
expanding demand for communications bandwidth."
Sales Overview
Sales for the fourth quarter of 2006 increased 13.9% year over
year, primarily driven by higher prices and increased customer
demand in both the Enterprise and Broadband segments.
Enterprise sales rose 15.0% year over year to US$187.5 million,
primarily due to higher prices and higher sales volume.
Enterprise sales rose across essentially all geographic regions
with particular strength in the Europe, Middle East and Africa
and Central and Latin American regions. As previously expected,
sales declined sequentially primarily due to strong shipments in
the third quarter and the typical seasonal slowdown. The
Enterprise segment continues to experience year-over-year growth
as businesses invest in higher capacity infrastructure solutions
and continue to consolidate data centers.
Broadband segment sales rose to US$144.0 million, up 20.7% year
over year primarily due to price increases implemented in the
first half of 2006, higher sales volume and a product line
acquisition announced in early 2006. The Broadband sales volume
reflects continued competition between cable television
operators and telephone companies that provide bundled services
for residential and commercial customers.
Carrier sales decreased 2.5% year over year to US$62.4 million.
The year-over-year and sequential decrease is due primarily to
the anticipated fourth quarter slowdown in spending by a major
telecommunications company. Despite this volatility, the
Carrier segment was the fastest growing segment for CommScope
during calendar year 2006. CommScope believes that the outlook
for ongoing Carrier growth is positive as telephone companies
continue investing in their infrastructure to support video and
high-speed data services.
Total international sales for the fourth quarter of 2006 rose
11.4% year over year to US$135.0 million, or approximately 34.3%
of total company sales.
External orders booked in the fourth quarter of 2006 were
US$354.4 million, up 15.5% from the year-ago quarter.
Global Manufacturing Initiatives
CommScope's fourth quarter 2006 results reflect net pretax
restructuring charges of US$1.8 million (US$1.1 million after
tax) for costs associated with the previously announced global
manufacturing initiatives. These initiatives have been
substantially completed.
Other Highlights:
-- CommScope, in collaboration with Solarflare(TM)
Communications, recently demonstrated the first standards-
compliant 10GBASE-T server adapter at Cisco Networkers 2007
in Cannes, France. The demonstration featured CommScope's
SYSTIMAX(R) GigaSPEED(R) X10D Solution and Solarflare
Solarstorm(TM) 10GBASE-T server adapters.
-- Gross margin for the fourth quarter was 28.2%, up 240 basis
points year over year. The gross margin improvements were
primarily due to price increases, higher sales volume,
favorable mix and the positive impact of the company's
global manufacturing initiatives.
-- SG&A for the fourth quarter of 2006 was US$64.8 million,
compared to US$40.5 million in the year-ago quarter. The
increase in SG&A results primarily from increased selling
and marketing expenses related to higher sales and the
impact of a US$13.2 million pretax benefit recognized in
2005 related to the recovery of accounts receivable from
Adelphia that had been written off in 2002.
-- Fourth quarter 2006 results include US$1.5 million of
pretax, equity-based compensation expense in accordance
with SFAS No. 123(R).
-- Operating income for the fourth quarter of 2006 was US$36.3
million or 9.2% of sales. Excluding restructuring costs,
operating income would have been US$38.1 million or 9.7% of
sales. In the year-ago quarter, operating income was
US$21.8 million or 6.3% of sales. Excluding special
items, operating income would have been US$27.0 million or
7.8% of sales for the quarter.
-- Total depreciation and amortization expense was US$13.7
million for the fourth quarter of 2006.
-- Net cash provided by operating activities in the fourth
quarter of 2006 was US$87.4 million. Capital spending in
the quarter was US$8.9 million.
Full Year 2006 Results
CommScope reported sales of US$1,623.9 million for calendar year
2006, and net income of US$130.1 million. The company's
2006 results included an after-tax charge of US$8.1 million
related to restructuring costs and an after-tax benefit of
US$18.6 million related to a recovery on a note receivable from
OFS BrightWave, LLC.
CommScope reported sales of US$1,337.2 million for calendar year
2005, and net income of US$50.0 million. The company's
2005 results included an after-tax charge of US$24.6 million
related to restructuring costs, an after-tax benefit of US$8.3
million related to recovery of accounts receivable from
Adelphia, and other net after-tax charges totaling US$0.5
million.
Gross margin for calendar year 2006 was 27.3% and operating
margin was 9.8%. Excluding pre-tax restructuring costs of
US$12.6 million, operating margin was 10.5%.
Cash flow from operations in 2006 was US$118.8 million and
reflects depreciation and amortization of US$55.6 million.
Capital spending was US$31.6 million for the year and the
company ended 2006 with US$427.9 million in cash, cash
equivalents and short-term investments.
Outlook
CommScope management provided the following guidance for the
first quarter of 2007 and calendar year 2007:
First Quarter 2007
-- For the first quarter of 2007, revenue is expected to be
US$390-US$410 million and operating margin is expected to
be 10.5% - 11.5%, excluding special items.
-- Effective tax rate of approximately 30%-34%.
Calendar Year 2007
-- For calendar year 2007, the company has increased its
revenue and operating margin guidance. CommScope now
expects revenue in the range of US$1.72-US$1.76 billion and
operating margin around the 12% level, excluding special
items.
-- Effective tax rate of approximately 30%-34%.
-- Depreciation and amortization expense of approximately
US$50 million.
-- Capital spending of approximately US$30-US$40 million.
"We are pleased with our record financial performance in 2006,"
said Jearld L. Leonhardt, Executive Vice President and Chief
Financial Officer. "We believe CommScope ended the year with a
solid financial foundation and expect to continue the positive
momentum in 2007.
"Despite volatile raw material costs, we continue to believe
that we can achieve reasonable sales growth while increasing
operating income by more than 20%, excluding special items,"
Mr. Leonhardt concluded.
Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) --
http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R)
Solutions brands CommScope is the global leader in structured
cabling systems for business enterprise applications. It is
also the world's largest manufacturer of coaxial cable for
Hybrid Fiber Coaxial applications. Backed by strong research
and development, CommScope combines technical expertise and
proprietary technology with global manufacturing capability to
provide customers with high-performance wired or wireless
cabling solutions.
CommScope, to serve the growing Latin American market, has begun
manufacturing coaxial cable for broadband wireless and wireless
networks in its plant in Jaguariuna, Brazil. It has over
283,000 sq. ft. of manufacturing space.
* * *
As reported in the Troubled Company reporter on Aug. 23, 2006,
Standard & Poor's Rating Services removed its rating on Hickory,
North Carolina-based CommScope, Inc., from CreditWatch with
negative implications from CreditWatch, where they were placed
with negative implications on Aug. 7, 2006, and affirmed the
existing 'BB' corporate credit rating. S&P said the outlook is
stable.
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 as its
source.
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 concern about the regulatory risk 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.
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.
EMI GROUP: Warner Music Says Takeover Offer Likely to be in Cash
----------------------------------------------------------------
Warner Music Group Corp. clarified Feb. 21 that any possible
takeover offer for EMI Group PLC is likely to be solely in cash,
thus, WMG's shareholders will not be required to notify their
interests in WMG securities under Rule 8 of the U.K. Takeover
code.
Under the U.K. Takeover Code, interested parties in relevant
securities of a company are required to disclose of their
dealings.
WMG further stated that it would not be required to disclose of
details under Rule 2.10 of the U.K. Takeover Code relating to
the number of its relevant securities in issue.
WMG 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,
reports say.
Warner disclosed that it saw a compelling, strategic, commercial
and financial logic to a merger with EMI.
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.
Analysts believed that an EMI-Warner merger could generate cost
savings of about GBP150 million a year, Nick Bevens writes for
The Scotsman.
In 2006, EMI and Warner were locked in a GBP2.3 billion takeover
battle. The deal was halted in June 2006 following the
annulment of the 2004 Sony-BMG tie-up by a European Court.
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 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, 2007, 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, 2007, 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.
ITRON INC: Makes US$235 Million Private Placement of Equity
-----------------------------------------------------------
Itron Inc. has agreed to sell 4,086,958 shares of its common
stock to ten institutional investors in a private placement at a
price of US$57.50 per share, based on a 5% discount from the
five-day average share closing price during the week of
Feb. 12, 2007, of US$60.52. The transaction is expected to
generate gross proceeds to Itron of US$235 million before fees
and other offering expenses. Net proceeds will be used to
partially fund the acquisition of Actaris Metering Systems. The
sale will be completed on March 1, 2007, subject to customary
closing conditions.
The shares being sold have not been registered under the
Securities Act of 1933 or any state securities laws and, until
so registered, may not be offered or sold in the United States
or any state absent an applicable exemption from registration
requirements. This announcement does not constitute an offer to
sell, nor is it a solicitation of an offer to buy, these
securities. Pursuant to the terms of the securities purchase
agreement with the private placement investors, the Company has
agreed to register re-sales of the shares not more than 75 days
from the date of closing of the Actaris acquisition.
Itron Inc. (NASDAQ: ITRI) -- http://www.itron.com/-- is a
technology provider and critical source of knowledge to the
global energy and water industries. Nearly 3,000 utilities
worldwide rely on Itron technology to provide the knowledge they
require to optimize the delivery and use of energy and water.
Itron creates value for its clients by providing industry-
leading solutions for electricity metering; meter data
collection; energy information management; demand response; load
forecasting, analysis and consulting services; distribution
system design and optimization; web-based workforce automation;
and enterprise and residential energy management. Effective
April 2006, Itron has acquired Brazil's ELO Tecnologia. Itron
Tecnologia has offices and a manufacturing assembly facility in
Campinas and offices in Santiago.
* * *
As reported in the Troubled Company Reporter on Oct. 27, 2006,
Moody's Investors Service confirmed Itron Inc.'s Ba3 Corporate
Family Rating in connection with the rating agency's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology.
As reported in the Troubled Company Reporter on Sept. 1, 2006,
Standard & Poor's Ratings Services assigned its 'B' rating to
Itron Inc.'s $345 million convertible senior subordinated notes
due Aug. 1, 2026, and affirmed all of its other ratings,
including its 'BB-' corporate credit rating.
ITRON: Buying Actaris Metering's Bonds & Stock for US$1.6 Bil.
--------------------------------------------------------------
Itron Inc. has signed an agreement to acquire all of the stock
and convertible bonds of Actaris Metering Systems. The purchase
price is EUR800 million plus the retirement of approximately
EUR445 million of debt, which, at an exchange rate of 1.30,
totals approximately US$1.6 billion. The acquisition is
expected to close in the second quarter of 2007.
This acquisition will allow Actaris to offer Itron's industry
leading AMR and advanced metering infrastructure technologies,
software and systems expertise to customers outside of North
America, and expand Actaris gas and water meter opportunities in
North America.
For the twelve months ended Dec. 31, 2006, Actaris generated
revenue of approximately US$1 billion and adjusted earnings
before interest, taxes, depreciation and amortization (Adjusted
EBITDA) of approximately US$159 million.
"This acquisition, which will more than double Itron's annual
revenues, brings together two industry leaders and reunites two
former Schlumberger divisions," said LeRoy Nosbaum, chairman and
CEO. "We have been looking for an investment that would allow
Itron to bring its superior AMR technology and systems expertise
to customers outside of North America. Our acquisition of
Actaris is the perfect choice to combine their quality meters
and established distribution channels with our expertise, which
will ultimately bring more value to customers around the globe.
No other meter or AMR provider offers a similar breadth and
depth of solutions to their customers in the utility industry.
This deal combines two companies that share a heritage, vision
and passion for this industry and our combined customers."
The acquisition of Actaris will be funded by approximately
US$1.1 billion of fully-committed senior secured debt
facilities, the net proceeds of the private placement of
approximately US$235 million of common stock, which was
completed February 25, 2007, and cash on hand.
Based on management's expectation for closing in the second
quarter, Itron expects that in 2007 the acquisition will add
approximately US$720 - US$730 million in revenue, US$0.20 -
US$0.30 in non-GAAP EPS and US$110 - US$115 million Adjusted
EBITDA. These estimates are subject to financing terms and
dependent on the closing date of the transaction and do not take
into effect any intangible amortization expenses, in-process
research and development expenses, charges related to inventory
revaluation required under purchase accounting or other
acquisition expenses.
"This acquisition brings together two very talented management
teams, including many individuals who have worked together in
previous careers with Schlumberger," said Mr. Nosbaum. "These
are both well-run companies that produce the highest quality
products in very efficient and productive factories around the
world. Bringing these companies together unites research and
development, manufacturing and business synergies that no other
provider can match.
"There can be no doubt that this acquisition represents a
historical turning point in the life of our company and a
significant commitment on the part of our investors," commented
Mr. Nosbaum. "But as I look at the strength of our businesses
and cash flow, the talent of our combined management team and
employee base, the synergies in our technology offerings, and
the expanding opportunities in the global marketplace, I have no
doubt that this is the right move - both strategically and
financially - and the right time to take Itron to an entirely
new level and drive strong future growth in our business on a
global scale."
Conditions
The acquisition is not subject to U.S. regulatory review.
However, it will be subject to review by several regulatory
bodies in countries outside the U.S., including, Ukraine,
Germany, Brazil, Spain and Portugal, which require filings
regardless of competitive product overlap.
Itron has received a senior secured underwritten agreement from
UBS to finance the transaction. Additionally, UBS acted as
exclusive financial advisor to the Company and sole placement
agent for the private placement of common stock. Gibson, Dunn &
Crutcher LLP and Perkins Coie LLP acted as legal advisors to
Itron. Mayer, Brown, Rowe & Maw LLP acted as legal advisor to
Actaris.
About Actaris
Actaris Metering Systems -- http://www.actaris.com/-- designs
and manufactures meters and associated systems for the
electricity, gas, water and heat markets, providing innovative
products and systems that integrate the latest technologies to
meet the evolving needs of public or private energy and water
suppliers, utility services and industrial companies worldwide.
Actaris is active in more than 30 countries, employs
approximately 6,000 people in 60 locations and has 29
manufacturing sites worldwide. The company has a cumulative
installed base of some 300 million electricity, gas and water
meters throughout the world.
About Itron
Itron Inc. (NASDAQ: ITRI) -- http://www.itron.com/-- is a
technology provider and critical source of knowledge to the
global energy and water industries. Nearly 3,000 utilities
worldwide rely on Itron technology to provide the knowledge they
require to optimize the delivery and use of energy and water.
Itron creates value for its clients by providing industry-
leading solutions for electricity metering; meter data
collection; energy information management; demand response; load
forecasting, analysis and consulting services; distribution
system design and optimization; web-based workforce automation;
and enterprise and residential energy management. Effective
April 2006, Itron has acquired Brazil's ELO Tecnologia. Itron
Tecnologia has offices and a manufacturing assembly facility in
Campinas and offices in Santiago.
* * *
As reported in the Troubled Company Reporter on Oct. 27, 2006,
Moody's Investors Service confirmed Itron Inc.'s Ba3 Corporate
Family Rating in connection with the rating agency's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology.
As reported in the Troubled Company Reporter on Sept. 1, 2006,
Standard & Poor's Ratings Services assigned its 'B' rating to
Itron Inc.'s $345 million convertible senior subordinated notes
due Aug. 1, 2026, and affirmed all of its other ratings,
including its 'BB-' corporate credit rating.
PETROLEO BRASILEIRO: Ceara Plant Construction Starts in March
-------------------------------------------------------------
Brazilian state oil firm Petroleo Brasileiro SA expects that the
construction of a BRL76-million biodiesel plant in Ceara will
start in March, news daily Gazetta Mercantil reports.
Business News Americas relates that Petroleo Brasileiro hired
engineering firm Intecnial in 2006 to construct the plant and
two other plants:
-- Candeias in Bahia, and
-- Montes Claros in Minas Gerais.
According to BNamericas, Candeias and Montes Claros are already
being constructed.
BNamericas underscores that the Ceara plant will be situated in
Juatama in Quixada.
Petroleo Brasileiro project official Joa Augusto Araujo Paiva
told Business News Americas that the plant will start running in
January 2008. It will have the capacity to produce almost 56
million liters per year of biodiesel.
Petroleo Brasileiro is preparing to meet the compulsory 2%
admixture of biodiesel into diesel from January 2008, BNamericas
states.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Inks Oil & Gas Pact with Gazprom
-----------------------------------------------------
Petroleo Brasileiro SA aka Petrobras and gas-company Russian
corporation Gazprom OAO signed a memorandum of understanding
seeking to identify cooperation opportunities for oil & gas
project deployment, on Feb. 23, 2006, at the Brazilian company's
main office building. With the agreement, three initiatives
that may include cooperation possibilities have already been
identified in the LNG, natural gas storage, and natural gas
transportation system operation optimization areas.
Although the activity schedule will extend through next year,
Petrobras and Gazprom expect to materialize actual partnerships,
particularly in the LNG area, in 2007. Potential improvements
to the Brazilian gas pipeline implementation processes,
incorporating Gazprom's experience in this field, were also
discussed during the meeting.
Petrobras' Gas & Energy Director, Ildo Sauer, and Gazprom's
International Business Director, Stanislav Tsygankov, signed the
agreement. Petrobras' acting president and also Exploration &
Production Director, Guilherme Estrella, and the Russian
Federation's General Consul in Rio de Janeiro, Alexey Labetskiy
also attended the meeting. This is the third meeting held
between the companies who, exactly a year ago, commenced
conversations to ripen a future agreement.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
===========================
C A Y M A N I S L A N D S
===========================
ABSCDO-1 WAREHOUSE: Final Shareholders Meeting Is on April 5
------------------------------------------------------------
Abscdo-1 Warehouse, Ltd., will hold its final shareholders
meeting on April 5, 2007, at:
Queensgate House
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:
Jan Neveril
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
AMERIQUEST NIM: Sets Final Shareholders Meeting for Feb. 22
-----------------------------------------------------------
Ameriquest NIM 2004-FRN1 will hold its final shareholders
meeting on Feb. 22, 2007, at:
Queensgate House
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:
Joshua Grant
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
ASCEND MANAGED: Final Shareholders Meeting Is on April 6
--------------------------------------------------------
Ascend Managed Account, Ltd., will hold its final shareholders
meeting on April 6, 2007, at 11:00 a.m. at the registered office
of the company.
These agendas will be followed during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
ASPECT DIVERSIFIED: Final Shareholders Meeting Is on April 6
------------------------------------------------------------
Aspect Diversified Managed Account (1), Ltd., will hold its
final shareholders meeting on April 6, 2007, at 11:30 a.m., at
the registered office of the company.
These agendas will be followed during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
BALLYROCK CDO: Final Shareholders Meeting Is on April 5
-------------------------------------------------------
Ballyrock CDO I, Ltd., will hold its final shareholders meeting
on April 5, 2007, at:
Queensgate House
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:
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
CLINTON CONVERTIBLE: Final Shareholders Meeting Is on April 6
----------------------------------------------------------------
Clinton Convertible Managed Trading Account (1), Ltd., will hold
its final shareholders meeting on April 6, 2007, at 12:30 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 liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
CLINTON FIXED: Final Shareholders Meeting Is on April 6
-------------------------------------------------------
Clinton Fixed Income Managed Account, Ltd., will hold its final
shareholders meeting on April 6, 2007, at 1:00 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 liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
CONCORDIA MANAGED: Final Shareholders Meeting Is on April 6
-----------------------------------------------------------
Concordia (C) Managed Account, Ltd. will hold its final
shareholders meeting on April 6, 2007, at 1:30 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 liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
INFOR GLOBAL: S&P Affirms B- Corporate Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' corporate
credit rating on Infor Global Solutions Holdings Ltd. At the
same time, Standard & Poor's revised its ratings outlook on the
company to stable from positive. Standard & Poor's also lowered
its bank loan and recovery ratings on Infor Global's first-lien
senior secured debt to 'B-' (the same as the corporate credit
rating) with a '2' recovery rating, reflecting our expectation
for substantial (80%-100%) recovery of principal in the event of
a payment default. Standard & Poor's affirmed its 'CCC' rating
and '5' recovery rating on Infor Global's second-lien senior
secured term loan.
"The revision of the outlook to stable follows the company's
decision to increase debt balances to fund a US$500 million
dividend to shareholders," said Standard & Poor's credit analyst
Ben Bubeck. To fund the transaction, which will be completed as
part of the previously rated refinancing of Infor Global's
senior subordinated bridge facility, Infor will add an
additional US$175 million to its first-lien term loan and US$100
million to its second-lien term loan. A new US$235 million
senior PIK term loan (not rated) will also be included in the
financing. Pro forma for the proposed transaction, the company
will have approximately US$4.3 billion in total funded debt
outstanding.
The ratings reflect Infor Global's limited track record
following a very aggressive acquisition strategy, its high debt
leverage, and a very aggressive financial policy. These factors
are only partially offset by the company's leading presence in
its selected mid-market niche, a largely recurring revenue base,
and a broad and diverse customer base.
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.
OPTIMAL JAPAN: Final Shareholders Meeting Is on April 6
-------------------------------------------------------
Optimal Japan Managed Account will hold its final shareholders
meeting on April 6, 2007, at 2:00 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 liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
ORIGIN MANAGED: Final Shareholders Meeting Is on April 6
--------------------------------------------------------
Origin Managed Account, Ltd. will hold its final shareholders
meeting on April 6, 2007, at 10:00 a.m. at the registered office
of the company.
These agendas will be followed during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
PAGODA HOLDINGS: Final Shareholders Meeting Is on March 30
----------------------------------------------------------
Pagoda 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
PARMALAT SPA: Court Orders Deloitte to Pay US$130 Mln by Feb. 23
----------------------------------------------------------------
The Hon. Denise Cote of the U.S. District Court for the Southern
District of New York ordered Deloitte Touche Tohmatsu to pay
US$130 million to Parmalat S.p.A. by Feb. 23 as part of a
settlement deal signed in January, according to published
reports.
In a TCR-Europe report on Jan. 18, Deloitte and Dianthus S.p.A.
-- the firm that operated in Italy under the Deloitte & Touche
name until July 2003 -- agreed to a US$149 million settlement to
Parmalat, binding the parties to withdraw all pending actions
and allegations between them. Parmalat had accused Deloitte and
Dianthus of abetting the company's collapse in December 2003.
Judge Cote also granted Deloitte and Dianthus protection against
further claims by Parmalat, the Financial Times relays.
Parmalat, headed by chief executive Enrico Bondi, has filed
multi-billion euro claims against a number of financial
institutions it accused of playing major roles in its
EUR13-billion bankruptcy. Mr. Bondi has reached US$775 million
in settlements in the U.S. and Italy, FT states. The company
still has pending claims against Citigroup Inc., Bank of America
Corp. and Grant Thornton International.
Legal experts, however, said BoA would rather stand trial than
settle with Parmalat, FT reports. The experts said that even if
BoA is found guilty, the Deloitte ruling would influence the
amount of damages. BoA called the Deloitte ruling a "fair and
equitable ruling that comports with established legal practice."
The legal experts also noted that firms with pending cases
against Parmalat could still settle for less than Mr. Bondi is
seeking.
About Parmalat
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months. It also has 40-
some brand product line, which includes yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.
The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Parmalat Capital Finance
Ltd., Dairy Holdings, Ltd., and Food Holdings, Ltd. Dairy
Holdings and Food Holdings are Cayman Island special-purpose
vehicles established by Parmalat S.p.A.
The Finance Companies are under separate winding up petitions
before the Grand Court of the Cayman Islands. Gordon I. MacRae
and James Cleaver of Kroll (Cayman) Ltd. serve as Joint
Provisional Liquidators in the cases.
On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York. In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators. Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey,
Gordon, Herlands Randolph, represent the Finance Companies in
the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.
SHARMAC MANAGED: Final Shareholders Meeting Is on April 6
---------------------------------------------------------
Sharmac Managed Account, Ltd., will hold its final shareholders
meeting on April 6, 2007, at 2:30 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 liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
UT TECHNOLOGY: Final Shareholders Meeting Is on April 6
-------------------------------------------------------
UT Technology Managed Account, Ltd., will hold its final
shareholders meeting on April 6, 2007, at 3:00 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 liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 949 4590
VEGA ASSET: Final Shareholders Meeting Is on March 30
-----------------------------------------------------
Vega Asset Management II, 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
VEGA INT'L: Final Shareholders Meeting Is on March 30
-----------------------------------------------------
Vega International Distributors, 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
VEGAPLUS ASSET: Final Shareholders Meeting Is on March 30
---------------------------------------------------------
Vegaplus Asset Management Partners, 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
ZAIS MATRIX CDO I: Final Shareholders Meeting Is on April 5
-----------------------------------------------------------
Zais Matrix CDO I will hold its final shareholders meeting on
April 5, 2007, at:
Queensgate House
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:
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
ZAIS MATRIX CDO II-A: Final Shareholders Meeting Is on April 5
--------------------------------------------------------------
Zais Matrix CDO II-A will hold its final shareholders meeting on
April 5, 2007, at:
Queensgate House
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:
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
ZAIS MATRIX CDO II-B: Final Shareholders Meeting Is on April 5
--------------------------------------------------------------
Zais Matrix CDO II-B will hold its final shareholders meeting on
April 5, 2007, at:
Queensgate House
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:
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
=========
C H I L E
=========
ALCATEL-LUCENT: Will Build WiMax Network for Telmex Chile
---------------------------------------------------------
Alcatel-Lucent said in a statement that it has been awarded a
contract to construct a WiMax network for the Chilean unit of
Mexico's Telmex.
Business News Americas relates that the Telmex Chile network
will comply with the IEEE 802.16e-2005 standard for fixed,
nomadic and mobile usage in the 3.5 gigahertz frequency band
using the Alcatel-Lucent's 9100 WiMax end-to-end solution.
The network will be operational in the second half of this year,
BNamericas notes.
Telmex Chile General Manager Eduardo Diaz-Corono told the press
that the firm will invest US$15 million this year in the
network.
Telmex Chile expects that the network will cover 90% of Chile's
municipalities by the end of the year. With the network, Telmex
Chile will target the business market, particularly the small
and medium-sized enterprises, BNamericas states.
About Telmex
Telefonos de Mexico, SA, aka Telmex owns and operates
telecommunications system in Mexico. It is a nationwide
provider of fixed-line telephony services, as well as fixed
local and long-distance telephone services. It also provides
other telecommunications and telecommunications-related
services, such as corporate networks, Internet services,
directory services, information network management, telephone
equipment sales, satellite services, paging services and
interconnection services to other carriers. It offers voice,
data and Internet services in Brazil, Chile, Argentina, Peru and
Colombia. In January 2006, together with Alcatel and SBC
International, Inc., a subsidiary of AT&T Inc., Telefonos de
Mexico, S.A. acquired an aggregate 51% interest in the capital
stock of 2Wire. In October 2006, it acquired an 80% interest in
the affiliate of Blue Equity, LLC that publishes Enlace Spanish
Yellow Pages. In connection with the acquisition, such
affiliate changed its name to SECCION AMARILLA USA, LLC.
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.
COEUR D'ALENE: Earns US$88.5 Million in 2006 Fiscal Year
--------------------------------------------------------
Coeur d'Alene Mines Corporation reported record net income for
2006 of US$88.5 million compared to net income of US$10.6
million for 2005. Results for 2006 include a gain of US$11.1
million from the strategic sale of Coeur Silver Valley, as well
as US$1.9 million of income generated from CSV prior to the
sale. Cash provided by operating activities increased more than
13-fold to US$91.2 million for the full year 2006 as compared to
US$6.7 million in 2005.
For the fourth quarter of 2006, the company reported net income
of US$23.2 million compared to net income of US$9.9 million for
the year-ago period. Cash provided by operating activities
increased 47% to US$21.2 million in the fourth quarter of 2006
as compared to US$14.5 million in the year-ago quarter.
Metal sales in the fourth quarter and full year of 2006 were
US$67.1 million and US$216.6 million, respectively, compared to
US$51.3 million and US$156.3 million for the year-ago periods.
In commenting on the company's full-year performance, Dennis E.
Wheeler, Chairman, President and Chief Executive Officer, said,
"For the full year 2006, Coeur reported record-setting
performance in terms of revenues, net income and cash flow, and
gold reserves. Silver production from continuing operations was
up by 10%, while our silver cash production cost per ounce
declined by nearly 6%. In addition, we reported a 16% increase
in our gold reserves. We remain focused on additional growth
initiatives designed to build upon this momentum in the areas of
silver and gold production, exploration, potential acquisition,
and continued management of our cash costs."
Mr. Wheeler added, "Net income in the fourth quarter of 2006 was
more than double that of the year-ago period due largely to
higher silver and gold prices, aided by stronger performance at
the Martha and Endeavor mines."
Mr. Wheeler said, "We expect silver and gold markets to remain
robust during 2007. We believe that strong demand for silver is
likely to support healthy market prices well beyond this year.
Such market conditions, combined with our ongoing strategic
initiatives, should enable the company to continue to generate
attractive earnings and cash flows. In addition, we are
actively evaluating acquisition opportunities that would bring
additional low-cost silver production into our system."
Coeur currently expects its existing mines to produce
approximately 13 million ounces of silver in 2007 with a cash
cost of approximately US$2.35 per ounce, which would represent
the lowest cash operating cost at Coeur in at least a decade.
The company expects full-year gold production to increase
roughly 17% to approximately 136,000 ounces, including
approximately 21,000 ounces from the Kensington gold mine, which
is expected to begin producing metal near the end of 2007.
During 2007, Coeur expects to complete construction of the San
Bartolome project, which will significantly contribute to the
company's silver production commencing in 2008. With the
commencement of production at San Bartolome and Kensington, the
company's production profile in 2008 would be sharply higher
than 2007.
Highlights by Individual Property
Rochester (Nevada)
The silver cash cost per ounce for the fourth quarter and full
year of 2006 were well below the cash costs reported for the
full year 2005 and 2004, reflecting the company's continued
efforts to improve operating efficiency and the benefit of
higher gold by-product credits. Fourth-quarter silver and gold
production were below the levels of the year-ago period due to
normal variations in the recovery of metal from the heap. The
moderate increase in the silver production cash cost per ounce
relative to that of the year-ago quarter was the result of the
lower production.
Cerro Bayo (Chile)
Quarterly silver production increased 53 % and gold production
more than doubled relative to the levels of the preceding
quarter as the company continued to develop the new high-grade
Cascada vein system. Cascada, in particular, contributed to a
51% increase in silver grade and a 100 % increase in gold grade
on a sequential-quarter comparison. Silver production cash cost
per ounce dropped 91% relative to the preceding quarter due in
part to the higher production volumes. Relative to the year-ago
quarter, silver production cash cost per ounce declined 28 % due
to increased byproduct credits for gold. Quarterly silver
production was below the level of the fourth quarter of 2005 due
to fewer tons milled and modestly lower silver grades. The
company expects quarterly production levels to trend upward at
Cerro Bayo as the year progresses as mining continues in the
high-grade Cascada vein system.
Martha (Argentina)
Silver production increased 36% relative to the year-ago period
due to an increase in tons milled and modestly higher silver
grades. In particular, Martha's silver production during the
fourth quarter of 2006 reached its second-highest level in the
mine's history. Silver production cash cost per ounce increased
relative to the year-ago quarter due to higher royalties
resulting from higher metal prices. In addition, the company is
completing a feasibility study regarding possible construction
of a flotation mill at Martha. Currently, Martha's ore is
shipped to Cerro Bayo for processing. If approved by the
company's board of directors, the new mill would enable Martha
to process ore on site and would support the continued expansion
of reserves and resources at Martha and at recently acquired
interests in the Santa Cruz province.
Endeavor (Australia)
Quarterly silver production increased almost five-fold relative
to the year-ago period and 32% relative to the preceding
quarter, due to improvement in mine performance. Silver cash
production cost per ounce was higher than that of both
comparable periods due primarily to higher smelting and refining
charges.
Broken Hill (Australia)
Quarterly silver production declined relative to the year-ago
and preceding quarters due to fewer tons milled and modestly
lower grades. Silver cash production cost per ounce was above
the levels of both comparable periods due mainly to higher
smelting and refining charges.
Update on San Bartolome Project
Coeur estimates the capital cost (excluding political risk
insurance premiums and capitalized interest) at San Bartolome to
be approximately US$174 million, as compared to the previous
cost estimate of US$135 million. The increase is due to overall
inflation impacting capital costs since the updated feasibility
study was completed in 2005. Based upon an initial estimated
cash cost of US$4.00 per ounce and current metal prices, the
company expects the project will provide attractive returns.
Commercial production is expected to commence in January 2008,
with approximately 9 million ounces produced that year.
At San Bartolome, capital expenditures totaled US$7.0 million
and US$14.6 million for the fourth quarter and full year of
2006, respectively. Recent activity has focused on construction
of the tailings facility and preparations for pouring concrete
at the mill site.
Based on available information, the company believes that the
Government of Bolivia has no intention to assume ownership of
the San Bartolome project. The Government has expressed a
desire to increase taxes in the mining sector but has not yet
submitted any formal proposals in this regard, partly because
the country's mining cooperatives are opposed to such a move.
Coeur remains confident that the San Bartolome project will
proceed on schedule.
Update on Kensington Project
Coeur currently estimates the total cost of construction of the
Kensington Gold Mine to be approximately US$238 million, as
compared to the previous cost estimate of US$190 million. The
increase is due to overall inflation that has impacted capital
costs as well as higher expenses associated with a legal
challenge to one of the mine's existing permits. The company
estimates the cash production cost will be US$310 per ounce in
the initial years of operation. The recent improvement in grade
at Kensington is expected to enable the mine to produce as much
as 150,000 ounces of gold annually in its early years of
operation. Coeur believes that commercial production could
commence in late 2007, subject to successful resolution of
litigation concerning an existing permit.
At Kensington, capital expenditures totaled US$35.0 million and
US$121.5 million for the fourth quarter and full year of 2006,
respectively. Recent activity has focused on completion of the
mill and crusher buildings.
Balance Sheet and Capital Investment Highlights
The company had US$341 million in cash and short-term
investments as of Dec. 31, 2006. Capital expenditures during
the fourth quarter and full year of 2006 amounted to US$45.5
million and US$148 million, respectively. The company's capital
investment is focused on the Kensington and San Bartolome
projects.
Exploration Spending Results in
Increased Gold Mineral Reserves
Consistent with the company's objective to steadily increase its
reserves and grow its production profile, Coeur expects to
invest approximately US$15.3 million in exploration and reserve
development in 2007, largely to continue to increase mineral
resources and reserves at its properties in Alaska, Argentina,
and Chile, where the company has multiple prospective vein
systems that have already yielded attractive drill-hole results.
The budget also includes a record-level of spending devoted to
"greenfields" exploration to discover new silver and gold
deposits in prospective regions of the world. The greenfields
exploration targets, which account for nearly 40% of the budget,
are located primarily in Argentina, Tanzania and in parts of
Chile and Mexico where the company has not previously been
active.
The company's 2006 investment of US$9.5 million in exploration
contributed to an increase of 16% in proven and probable gold
mineral reserves as of Dec. 31, 2006, in comparison to the prior
year. In addition, silver mineral reserves increased at year-
end 2006 at Martha, Endeavor, and Broken Hill. Proven and
probable silver mineral reserves for continuing operations also
increased.
Highlights of the company's exploration program and updated
mineral reserve position:
Cerro Bayo -- reported a 21% increase in silver grade, to 9.69
ounces per ton, in its proven and probable mineral reserves.
Recent exploration focus has been on the Cascada and Marcela Sur
vein systems, both of which have shown higher grades than have
previously been seen at Cerro Bayo. Core drilling in 2006
totaled 232,000 feet.
Kensington -- reported 29% increase in gold mineral reserves, to
1.35 million ounces. Kensington also achieved a 24% increase in
gold grade, to 0.31 ounces per ton. Core drilling totaled more
than 32,000 feet at Kensington and 13,500 feet on the adjacent
Jualin property. In addition, at the end of 2006, Kensington
had 866,000 ounces of gold mineral resources (623,000 ounces of
indicated resources and 243,000 ounces of inferred resources).
Martha -- reported a 50% increase in proven and probable silver
mineral reserves to 6.1 million ounces, as well as an increase
in silver grade. Recent focus has been on the Martha, R4,
Catalina, and Francisca veins. All drilling at Martha totaled
87,000 feet.
Argentina Greenfields Activity -- As part of its initial
greenfields exploration in other parts of Argentina, in 2006,
the company acquired four new exploration properties referred to
as the El Aguila, Costa, Sascha and Joaquin properties. Core
drilling commenced on El Aguila in eastern Santa Cruz late in
the year and totaled 3,300 feet.
Australian interests -- Endeavor and Broken Hill both reported
mid-year 2006 increases in silver mineral reserves in relation
to 2005: 37% at Endeavor and 20% at Broken Hill.
Tanzania -- in 2006 the company completed more than 44,000 feet
of shallow, rotary air blast drilling in gold-in-soil anomalies
at Kiziba Hill property, which includes a large zone of
anomalous gold-in-soil values, measuring over 1.2 miles long in
a west-northwest direction by over 0.3 miles wide in an east-
northeast direction. In December of 2006, the company began
core drilling on the nearby Saragurwa property and at year-end
had completed more than 1,300 feet of core drilling. Drilling
will continue at both locations in 2007.
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poors' B- rating.
===============
C O L O M B I A
===============
CENTRAL PARKING: KCPC Holdings Acquires Firm for US$733 Million
---------------------------------------------------------------
Central Parking Corp. entered into an agreement and plan of
merger with KCPC Holdings Inc., a company formed by affiliates
of Kohlberg & Company LLC, Lubert-Adler L.P., and Chrysalis
Capital Partners L.P.
Under the terms of the merger agreement, Central Parking's
shareholders will receive US$22.53 per share in cash,
representing a premium of approximately 30.8% over Central
Parking's closing share price on Nov. 27, 2006, the day before
the Company announced that it had engaged The Blackstone Group
L.P. to assist it in evaluating strategic alternatives.
Central Parking's Board of Directors, following the unanimous
recommendation of a Special Committee composed entirely of
independent directors, has approved the merger agreement and
also will recommend approval by Central Parking's shareholders.
"I believe this transaction is very exciting for our
shareholders," Monroe J. Carell, Executive Chairman and founder
of Central Parking, said. "This Company has been so important
to me for many years. It has been a real joy to work with many
talented employees and our business associates. I believe the
Company will continue to prosper under the new ownership."
"We are pleased to be entering into this transaction, which
provides important benefits to our shareholders, clients,
employees, and other stakeholders," Emanuel J. Eads, Central
Parking's president and chief executive officer, said. "This
agreement represents a strong endorsement of our strategic plan
and the significant progress we have made in executing the plan.
With the full backing of private equity partners who recognize
our growth potential and share our vision for the future, we
will be in an even stronger position to deliver outstanding
service to our management clients, landlords and parking
customers."
KCPC Holdings, Inc. has received equity and debt financing
commitments totaling US$903 million, and the closing is not
subject to a financing contingency. Closing of the transaction
will be completed in the second calendar quarter of 2007. The
merger is subject to the approval of Central Parking's
shareholders, requisite regulatory approvals and customary
closing conditions. Mr. Carell, his family and related
entities, who are collectively the largest shareholder of
Central Parking, have entered into voting agreements to vote in
favor of the merger agreement unless the merger agreement is
terminated or materially amended.
The Blackstone Group served as exclusive financial advisor to
the Company in connection with the transaction and provided the
Special Committee with an opinion that the consideration to be
received by Central Parking's shareholders is fair from a
financial point of view.
About Kohlberg & Company
Headquartered in Mt. Kisco, New York, Kohlberg & Company L.L.C.
-- http://www.kohlberg.com/-- is a leading U.S. private equity
firm with offices in Mt. Kisco, New York and Palo Alto,
California. Since its inception in 1987, Kohlberg has completed
over 90 platform and add-on acquisitions as the control investor
in a variety of industries, including infrastructure,
manufacturing, healthcare, consumer products and service
industries. Kohlberg has invested a total of US$1.6 billion in
equity across five private equity funds with an aggregate
transaction value of approximately US$6 billion.
About Chrysalis Capital Partners
Chrysalis Capital Partners L.P. -- http://www.ccpfund.com/-- is
a private equity firm managing US$300 million of committed
capital and focused on control investments in special situations
involving middle-market companies in a wide variety of
industries across the United States.
About Lubert-Adler Partners
Lubert-Adler Partners, L.P. -- http://www.lubertadler.com/-- is
a real estate private equity firm headquartered in Philadelphia
with offices in New York, Los Angeles, London, Atlanta, and
Baltimore. Lubert-Adler was founded in 1997 and has raised over
US$4 billion of equity across five funds and has invested in
over US$20 billion of real estate assets. Lubert-Adler's
current fund -- Fund V -- represents US$1.7 billion of equity
and commenced in 2006.
About Central Parking
Nashville, Tenn.-based Central Parking Corporation (NYSE: CPC)
-- http://www.parking.com/-- owns, operates, and manages
parking and related services including surface and multi-level
parking facilities, design consultation, customer and employee
shuttle services, valet and special event parking, parking meter
enforcement, toll-road collections, and parking notice and
collection services. As of Dec. 31, 2006, Central Parking
operates more than 3,100 parking facilities containing over
1.5 million spaces at locations in 37 states, the District of
Columbia, Canada, Puerto Rico, the United Kingdom, the Republic
of Ireland, Chile, Colombia, Peru, Spain, Switzerland, and
Greece.
* * *
As reported in the Troubled Company Reporter on Dec. 4, 2006,
Standard & Poor's Ratings Services placed its rating on Central
Parking Corp., including the B+ corporate credit rating, on
CreditWatch with negative implications.
CENTRAL PARKING: Moody's Ba3 Corp. Rating on Merger Agreement
-------------------------------------------------------------
Moody's Investors Service placed the Ba3 Corporate Family Rating
and B2 rating on the convertible trust issued preferred
securities of Central Parking Corp. on review for possible
downgrade following the company's announcement that it entered
into a definitive agreement to be acquired by a consortium of
private investment funds.
Under the terms of the merger agreement, Central Parking's
common equity shareholders will receive US$22.53 per share in
cash or about US$745 million.
The transaction has been approved by the Board of Directors of
Central Parking based on the unanimous recommendation of a
special committee of the board consisting of independent
directors. The merger is subject to the approval of Central
Parking's shareholders, requisite regulatory approvals and
customary closing conditions. The chairman of the company, his
family and related entities, who collectively own 47% of the
common stock of Central Parking, have entered into voting
agreements to vote in favor of the merger agreement unless the
merger agreement is terminated or materially amended.
Central Parking may terminate the merger agreement under certain
circumstances, including if its board of directors determines in
good faith that it has received a superior proposal, and
otherwise complies with certain terms of the merger agreement.
In connection with such termination, the company must pay a fee
of US$22.4 million to the equity sponsors. If the merger
agreement is terminated because the equity sponsors fail to
obtain sufficient financing, then a US$30 million payment will
be due to the company.
Moody's affirmed the Baa3 rating on the US$299-million senior
secured credit facility of Central Parking since the merger
agreement provides that the credit facility will be repaid in
connection with the closing of the buyout. The merger agreement
also provides that at the effective time of the merger, each
outstanding share of the Trust Issued Preferred Securities
issued by Central Parking Finance Trust, a statutory business
trust and wholly-owned subsidiary of Central Parking, shall
remain outstanding and shall thereafter be convertible at the
election of the holder of the TIPS into an amount equal to the
product of the common stock merger consideration times the
number of shares of company common stock into which the TIPS
could have been converted at the effective time. Any TIPS, which
remain outstanding after the buyout, may be notched to two
notches below the Corporate Family Rating.
Moody's review will focus on the expected capital structure,
liquidity position and operating strategy of Central Parking
upon completion of the buyout transaction, including any
disposition strategies for owned real estate. Moody's expects
key credit metrics to deteriorate substantially if the buyout
transaction is consummated. Therefore, a multiple notch
downgrade of the Corporate Family Rating is possible if the
transaction is financed primarily with debt. The review will be
completed when a transaction is completed or substantially
completed.
Moody's placed these ratings on review for possible downgrade:
-- US$78-million 5.25% convertible trust issued preferred
securities (issued by the Central Parking Finance Trust),
rated B2 (LGD 6, 93%);
-- Corporate family rating, Ba3; and
-- Probability of default rating, Ba3.
Moody's affirmed these ratings:
-- US$225-million senior secured revolving credit facility
due 2008, rated Baa3 (LGD 2, 15%)
-- US$74 million senior secured term loan facility due 2010,
rated Baa3 (LGD 2, 15%)
Central Parking Corp., headquartered in Nashville, Tennessee, is
a leading provider of parking and transportation-related
services. As of Dec. 31, 2006, the Company operated more than
3,100 parking facilities containing around 1.5 million spaces at
locations in 37 states, the District of Columbia, Canada, Puerto
Rico, Chile, Colombia, Peru, the United Kingdom, the Republic of
Ireland, Spain, Greece, Italy and Switzerland. Revenues for the
12-month period ending Dec. 31, 2006, were about US$1.1 billion.
=======
C U B A
=======
* CUBA: Assisting Dominican Republic on Atlantic Oil Exploration
----------------------------------------------------------------
Cuban engineers are 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.
* * *
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: Reports Sustained Foreign Investment
----------------------------------------------------------
The Foreign Investment Firms Association Executive Director
Pablo Linares told Dominican Today that investments in the
Dominican Republic have been increasing at a sustained rate.
New projects are disclosed "constantly," Dominican Today says,
citing Mr. Linares.
Mr. Linares denied to Dominican Today that there is a lack of
legal compliance with regards to foreign investments in the
Dominican Republic.
* * *
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 issuer default rating is Stable.
===============
H O N D U R A S
===============
* HONDURAS: Fourth Mobile Concession License Auction Expected
-------------------------------------------------------------
Former Hondutel Chief Executive Officer Jacobo Regalado told the
Costa Rican news daily Capital Financiero that a fourth mobile
concession license is likely to be auctioned in Honduras in the
second half of this year.
The two operators in Honduras are:
-- Tigo, which is run by Millicom International
Cellular; and
-- Alo, which is owned by America Movil.
BNamericas relates that Hondutel plans to launch its own mobile
service soon. Hondutel said it will concentrate on primarily on
the lower income segment.
Mr. Regalado told BNamericas that Hondutel holds a third mobile
license, which was granted in compensation for losing
international long distance monopoly in December. However, the
company lacks US$100 million to fund its mobile entry.
According to BNamericas, several options have been suggested to
make up for Hondutel's lack of funds, among them are:
-- a strategic partnership with a foreign firm, or
-- government subsidies.
Capital Financiero states that the possible candidates for the
partnership with Hondutel are:
-- Spain's Telefonica,
-- Europe's Telecom Italia, and
-- Germany's Siemens.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
* HONDURAS: Rejects Mining Sector's Request for New Concessions
---------------------------------------------------------------
Santos Carvajal, the Honduran national mining association
Asociacion Nacional de Mineria de Honduras president, told
Business News Americas that the government has rejected the
mining industry's request to grant new concessions to firms.
BNamericas relates that Mr. Carvajal, along with other industry
players, met with government officials to ask that new
concessions be allowed. However, the executive branch of the
government plans to maintain a 2004 decree that prohibits the
granting of new metallic mining concessions.
The Honduran congress disclosed in 2005 that it would search for
a way to allow metallic mining through law reforms. But
Honduran President Manuel Zelaya said in his inaugural address
in January 2006 that there would be no more mining concessions.
Only the established mines can operate, BNamericas notes.
Mr. Zelaya told the international press, "I do not want to see
more permits for open-pit mines in Honduras. Not one more until
we have the guarantees needed for the conservation and
preservation of our natural wealth."
"The government hasn't made it clear if they will allow mining
in the future or not. There is no security for investments in
mining, and without new concessions the four companies can't
even continue to explore. We miners say that mining has
environmental impacts, its undeniable. But the answer is not to
prohibit exploration, rather to logically create methods to
control the negative impacts and avoid damage," Mr. Carvajal
complained to BNamericas.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
SUGAR COMPANY: Incurs Escalating Losses
---------------------------------------
Sugar Company of Jamaica has accumulated more than US$4 billion
in operating losses since the government took control of the
company five years ago, Radio Jamaica reports, citing
Agriculture Minister Roger Clarke.
The agriculture minister believes that losses will further
increase by US$478 million for the current financial year, the
same report says. Mr. Clarke added that the company's long-term
debt is at US$12.5 billion at Dec. 30, 2006. The company's
short-term debt, which comprises trade creditors and suppliers
of goods and services, was US$1.7 billion at Nov. 30, 2006.
Sugar Company of Jamaica operates five factories in Jamaica that
normally produces about 60% of the island's sugar output and
earn roughly US$100 million per year. But for the past five
years, Sugar Company's hasn't been able to realize profit. Its
losses have accumulated to more than US$4 billion, according to
Agriculture Minister Roger Clarke. For the fiscal financial
year ended Sept. 30, 2005, Sugar Company registered a net loss
of almost US$1.1 billion, 80% higher than the US$600 million
reported in the previous financial year. Sugar Company blamed
its financial deterioration to the reduction in sugar cane
production. According to published reports, the Jamaican
government has taken responsibility for payment of the firm's
debts.
* JAMAICA: Cane Growers Unexcited by Sugar Deal with Brazil
-----------------------------------------------------------
Jamaica has recently signed two agreements with Brazil
concerning the modernization of the former's sugar sector, as
well as the development of ethanol and technical cooperation in
tropical fruit processing.
The news, however, was not enough for Jamaica's cane farmers who
expected more action from the government to revive the
struggling sugar industry.
"The news item about an agreement with Brazil and Mr. Hylton, I
am afraid that 'underwhelms' me because this is something that
should have been implemented long ago. So for me to hear a news
item about it, I really cannot do any song and dance," Allan
Rickards, chairman of the All Island Jamaica Cane Farmers
Association, was telling the RJR News Centre last week.
"I have to say that if we are serious about an industry or any
aspect of our economy and this is the rate at which fundamental
things are implemented it seems to me that as a country we are
not serious," he added.
Mr. Rickards has also been critical of the government's
privatization of state owned sugar estates, particularly that of
Sugar Company of Jamaica.
* * *
On May 26, 2006, Moody's Investors Service upgraded Jamaica's
rating under a revised foreign currency ceiling:
-- Long-term foreign currency rating: Ba3 from B1 with
stable outlook.
===========
M E X I C O
===========
ADVANCED MARKETING: Court OKs Sale of PGW's Distribution Rights
---------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
gave Advanced Marketing Services Inc. and its debtor-affiliates
authority to sell Publishers Group West Inc.'s rights under its
distribution agreements with various publishers to Perseus Books
LLC and Client Distribution Services Inc.
AMS and its debtor-affiliates also obtained the Court's approval
of the purchase agreement between the Debtors and Perseus, and
the Court's authority to assume and assign the contracts to CDS.
As reported in the Troubled Company Reporter on Jan. 31, 2007,
Debtors asked the Court for authority to sell PGW's rights under
its distribution agreements with various publishers to Perseus
and CDS. Debtors also asked the Court to authorize PGW to
assume and assign the Distribution Agreements, and sell certain
other assets related to its distribution business to Perseus.
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 clarifies 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 reports.
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 says 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 adds.
Amber-Allen Contract Deemed Rejected
To address the objection filed by Amber-Allen Publishing, Inc.,
Judge Sontchi rules 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
repetition 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)
ALESTRA SA: Eyes US$400 Million Revenues This year
--------------------------------------------------
Alestra SA de CV General Manager Rolando Zubiran told reporters
that the company expects that its revenues will increase to
US$400 million in 2007, compared to US$392 million in 2006.
Business News Americas relates that Alestra also expects
investments to increase to US$50 million this year, from US$43
million last year.
Alestra is considering focusing its strategy around "a triple
play offering and a possible WiMax rollout" in the second half
of this year, local daily La Jornada notes.
Alestra had spoken with several cable operators for a triple
play alliance, Mr. Zubiran told BNamericas.
Alestra provides national and international long distance
services in Mexico.
* * *
Fitch Ratings placed these ratings on Alestra, SA de CV
-- B- long-term issuer default rating; and
-- B- local currency long-term issuer default rating.
Fitch said the outlook is negative.
AMERICAN TOWER: S&P Assigns BB+ Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BBB' bank loan
rating and '1' recovery rating on Boston-based wireless tower
operator American Tower Corp.'s two upsized secured bank loans.
The upsized loans represent US$375 million in net additional
commitments from the original facility amounts, which are not
sufficiently material to change recovery prospects in the event
of a bankruptcy or default.
The ratings are on US$1.6 billion of bank loan facilities at
American Towers Inc., and US$1.225 billion of bank loan
facilities at SpectraSite Communications Inc. The loan ratings
are two notches above the corporate credit rating on parent
company American Tower, and the '1' recovery ratings indicate
our expectation for full recovery of principal in the event of a
payment default.
"The credit facilities allow American Tower to use borrowings
for general corporate purposes, including repurchasing its
equity securities and refinancing other indebtedness," said
Standard & Poor's credit analyst Catherine Cosentino.
American Towers Inc.'s US$1.6 billion of bank loan facilities
consist of a US$600 million revolving credit, a US$750 million
term loan A, and a US$250 million delayed-draw term loan.
SpectraSite Communications' US$1.225 billion of bank loan
facilities consist of a US$500 million revolving credit, a
US$700 million term loan A, and a US$25 million delayed-draw
term loan.
Ratings List
American Tower Corp.
-- Corporate Credit Rating BB+/Stable/--
Ratings Affirmed
American Towers Inc.
-- US$1.6 Billion Secured Bank Loan Facilities BBB
-- Recovery Rating 1
SpectraSite Communications Inc.
-- US$1.225 Billion Secured Bank Loan Facilities BBB
-- Recovery Rating 1
Headquartered in Boston, Massachusetts, American Tower Corp.
(NYSE: AMT) -- http://www.americantower.com/-- is an
independent owner, operator and developer of broadcast and
wireless communications sites in the United States, Mexico and
Brazil. American Tower owns and operates over 22,000 sites in
the United States, Mexico, and Brazil. Additionally, American
Tower manages approximately 2,000 revenue producing rooftop and
tower sites.
DOMINO'S INC: Gets Consents from 8-1/4% Senior Noteholders
----------------------------------------------------------
Domino's Inc. has received consents from noteholders
representing in excess of a majority in principal amount of its
outstanding 8-1/4% Senior Subordinated Notes due 2011 and that
the consent condition related to the pending tender offer for
all of the outstanding Notes has been satisfied. Following
receipt of the consents, the company, certain of its
subsidiaries and BNY Midwest Trust Company, as trustee, executed
the supplemental indenture to the indenture governing the Notes
providing for the amendments to the indenture described in the
Offer to Purchase and Consent Solicitation Statement dated
Feb. 7, 2007, and the related Consent and Letter of Transmittal.
These amendments will become operative on the date that Domino's
accepts for purchase Notes that are validly tendered in the
tender offer. As of 5:00 p.m., New York City time, on
Feb. 23, 2007, more than 99.9% of the outstanding principal
amount of the Notes has been tendered.
Requests for Tender Offer Documents or questions concerning the
procedures for tendering Notes may be directed to:
Global Bondholder Services Corporation
Information Agent
65 Broadway, Suite 723
New York, NY 10006
Tel: (866) 804-2200
(212) 430-3774 (collect)
The Dealer Managers for the tender offer are J.P. Morgan
Securities Inc., Lehman Brothers Inc. and Merrill Lynch & Co.
Questions regarding the tender offer and consent solicitation
may be directed to:
J.P. Morgan Securities Inc.
Attn: Liability Management Group
Tel: (866) 834-4666 (toll-free)
(212) 834-4077 (collect)
Domino's Inc is a pizza delivery company. The company has more
than 500 stores in Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 19, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the restaurant sector, the rating
agency held its Ba3 Corporate Family Rating for Domino's Inc.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$610M Sr. Sec.
Term Loan
Due 6/2010 Ba3 Ba2 LGD3 36%
US$125M Sr. Sec.
Revolver
Due 6/2009 Ba3 Ba2 LGD3 36%
US$100M Sr. Sec.
Term Loan
Due 10/2011 Ba3 Ba2 LGD3 36%
US$403M 8.25%
Sr. Sub. Notes
Due 7/2011 B2 B2 LGD5 87%
DOMINO'S PIZZA: Net Revenues Down by 4.8% in 2006 Fourth Quarter
----------------------------------------------------------------
Domino's Pizza Inc. reported its financial results for the
fourth quarter and fiscal 2006, each ended Dec. 31, 2006.
Revenues were down 4.8% for the fourth quarter and 4.9% for the
full year. Management noted that several factors other than
sales volume affected this number, and that its 2006 global
retail sales were up 2.0% for the year. As an example, domestic
distribution revenues decreased 4.9% for the quarter and 6.9%
for the full year; this was driven not only by a decrease in
domestic sales volumes, but also by lower food prices, primarily
cheese, which constituted about half of the 4.9% full-year
decrease. International revenues decreased 14.7% in the fourth
quarter and 4.8% for the full year, driven by the sale of
company-owned operations in France and the Netherlands during
2006. The company noted that international retail sales were up
13.5% for the fourth quarter and 11.4% for the full year.
Net income was down 22.8% for the fourth quarter and 1.9% for
the full year, driven primarily by a gain recognized in the
fourth quarter of 2005 on the sale of an equity investment in
the company's master franchisee in Mexico, as well as increases
in interest expense in 2006. This was offset in part by the
positive impact on net income from selling company-owned
operations in France and the Netherlands during 2006.
David A. Brandon, Domino's Chairman and Chief Executive Officer,
said: "2006 was a difficult and challenging year for our
domestic business. Some of our difficulties were self-imposed.
Our national marketing and promotions under performed during the
first half of the year. Following those disappointments, too
many of our operators went into 'cost-cutting mode' and our
store operations suffered. As a result, when we moved into the
second half of the year, our stores were not well positioned
with the staffing and energy required to effectively execute
against our stronger second-half marketing calendar. This was
disappointing, but we have already taken corrective actions.
Our job is to drive positive same store sales year after year in
any and every market condition. We have a proven track record
of doing this consistently over many years. I take personal
pride in this, as does my team. We are committed to learning
from 2006 and re-establishing our track record of producing
annual domestic same store sales increases of 1%-3%. However,
it is important to emphasize that despite this short-term
domestic problem, we were successful in driving both
international same store sales growth and global store growth in
2006, helping us to increase global retail sales by 2% and
exceed the US$5 billion mark."
Mr. Brandon continued: "This top line growth enabled us to, once
again, generate significant free cash flow of US$113 million
that we deployed for the benefit of our shareholders. Our
announced recapitalization plan is further evidence that we will
continue this practice and take aggressive approaches to
returning capital to our shareholders. Looking toward 2007, our
goal will be to continue to build upon our strong international
business, boost domestic same store sales and store growth and,
as always, do all we can to help grow the profitability of our
franchisees."
Items Affecting Comparability
The company's reported financial results in 2006 are not
comparable to the reported financial results in 2005 due to
several factors, including:
(i) the 2006 impact of the sale of Company-owned France and
Netherlands operations,
(ii) charges incurred in 2005 related to the Netherlands
operations,
(iii) expenses incurred in 2005 related to the departure of the
company's former CFO, primarily comprised of non-cash
compensation expenses and a cash separation obligation,
and
(iv) the gain in 2005 on the sale of the equity investment in
the company's Mexican master franchisee.
About Domino's Pizza
Headquartered in Ann Arbor, Michigan, Domino's Pizza Inc.
(NYSE: DPZ) -- http://www.dominos.com/-- through its primarily
franchised system, operates a network of 8,190 franchised and
company-owned stores in the United States and more than 50
countries. Founded in 1960, the company has more than 500
stores in Mexico. The Domino's Pizza(R) brand, named a
Megabrand by Advertising Age magazine, had global retail sales
of nearly USUS$5 billion in 2005, comprised of USUS$3.3 billion
domestically and USUS$1.7 billion internationally.
As of Sept. 10, 2006, Domino's Pizza's balance sheet showed a
USUS$592,435,000 stockholders' deficit compared with a
USUS$609,112,000 at June 18, 2006.
CONSOLIDATED CONTAINER: Commences US$392MM Senior Notes Offering
----------------------------------------------------------------
Consolidated Container Company has commenced tender offers to
purchase for cash any and all of the outstanding US$207,000,000
aggregate principal amount at maturity of 10-3/4% Senior Secured
Discount Notes due 2009 of CCC and Consolidated Container
Capital, Inc. and the outstanding US$185,000,000 principal
amount of 10-1/8% Senior Subordinated Notes due 2009 of CCC and
Capital and consent solicitations for certain proposed
amendments to the indentures pursuant to which the Notes were
issued, as well as the release of liens related to the Senior
Discount Notes.
Holders of Notes must tender their Notes and deliver their
consents at or prior to 5:00 p.m., New York City time, on
March 8, 2007, unless such time and date is extended or earlier
terminated to be eligible to receive the applicable Total
Consideration. Holders of Notes who tender their Notes after
the Consent Date but at or prior to 11:59 p.m., New York City
time, on March 22, 2007, unless such time and date is extended
or earlier terminated will be eligible to receive the applicable
Tender Offer Consideration. Holders who tender Notes must also
deliver consents to the proposed amendments with respect to such
Notes and the indenture which governs such Notes, as well as the
release of liens related to the Senior Discount Notes. Holders
may not deliver consents without also tendering their Notes, and
holders who have validly tendered their Notes will be deemed by
such tender to have delivered their consents.
The "Total Consideration" to be paid for each Note validly
tendered and accepted for payment at or prior to the Consent
Date, will be equal to:
(i) US$1,040 for each US$1,000 principal amount at maturity
of Senior Secured Notes and
(ii) US$1,014 for each US$1,000 principal amount of Senior
Subordinated Notes.
The Total Consideration for each note so tendered includes a
consent premium of US$30 per US$1,000 principal amount at
maturity or principal amount, as applicable.
The "Tender Offer Consideration" to be paid for each Note
validly tendered and accepted for payment after the Consent Date
but at or prior to the Expiration Date, will be equal to:
(i) US$1,010 for each US$1,000 principal amount at maturity
of Senior Secured Discount Notes and
(ii) US$984 for each US$1,000 principal amount of Senior
Subordinated Notes.
Holders of Notes who validly tender and do not validly withdraw
their Notes in the Offers will also be eligible to receive
accrued and unpaid interest from the last interest payment to,
but not including, the settlement date, payable on the
settlement date.
The settlement date is expected to occur promptly after the
Expiration Date.
The Offers will be conditioned upon, among other things, the
consummation of new senior secured credit facilities in an
aggregate principal amount of US$740.0 million (consisting of a
US$100.0 million asset-based revolving credit facility, a
US$390.0 million first lien term loan facility and a US$250.0
million second lien term loan) or other similar financing, on
certain terms and conditions satisfactory to CCC, which terms
may be revised in CCC's sole discretion. CCC intends to use a
portion of the proceeds from such financing to fund the purchase
of the Notes in connection with the Offers, to refinance CCC's
other secured indebtedness and for working capital, acquisitions
and other corporate purposes.
Headquartered in Atlanta, Georgia, Consolidated Container
Company LLC -- http://www.cccllc.com/-- develops, manufactures
and markets rigid plastic containers for many of the largest
branded consumer products and beverage companies in the world.
The company has a network of 55 strategically located
manufacturing facilities and a research, development and
engineering center located in Atlanta, Georgia. In addition,
the company has three international manufacturing facilities in
Canada and Mexico. The company sells containers to the dairy,
water, juice & other beverage, household chemicals & personal
care, agricultural & industrial, food and automotive sectors.
The company's container product line ranges in size from two-
ounce to six-gallon containers and consists of single and multi-
layer containers made from a variety of plastic resins,
including high-density polyethylene, polycarbonate,
polypropylene, and polyethylene terephthalate.
* * *
As reported in the Troubled Company Reporter on Nov. 6, 2006,
Standard & Poor's Ratings Services affirmed its ratings on
Consolidated Container and removed all ratings from CreditWatch
with negative implications, where they were placed on
Aug. 23, 2006. The corporate credit rating on Consolidated
Container is 'B-'.
GENERAL MOTORS: Inks US$1-Bln 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 Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries.
* * *
As reported in the Troubled Company Reporter-Europe on
Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its
'B' corporate credit rating and other ratings on General Motors
Corp. and removed them from CreditWatch with negative
implications, where they were placed March 29, 2006. S&P said
the outlook is negative.
As reported in the TCR-Europe on Nov. 16, 2006, Standard &
Poor's Ratings Services assigned its 'B+' bank loan rating to
General Motors Corp.'s proposed US$1.5 billion senior term loan
facility, expiring 2013, with a recovery rating of '1'. The
'B+' rating was placed on Creditwatch with negative
implications, consistent with the other issue ratings of GM,
excluding recovery ratings.
At the same time, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the proposed US$1.5 Billion secured term loan
of General Motors Corp. The term loan will be secured by a
first priority perfected security interest in all of the U.S.
machinery and equipment, and special tools of GM and Saturn
Corp.
INNOPHOS INC: S&P Revises Outlook to Positive from Stable
---------------------------------------------------------
Standard & Poor's Ratings Services revised the outlook on
Innophos Inc. to positive from stable. Standard & Poor's
affirmed the 'B' corporate credit and other ratings on the
company. Standard & Poor's also raised the bank loan rating to
'B+' from 'B' and revised the recovery rating to '1' from '4'.
The bank loan rating is one notch higher than the corporate
credit rating. This and the '1' recovery rating indicate the
expectation for full recovery of principal in a payment default.
The revised outlook reflects improving internal funds generation
and prospects for further debt reduction during the next two
years.
"Standard & Poor's expect management's leverage policies to
remain supportive of the key funds from operations to total debt
ratio, which should continue to strengthen during the next
several years," said Standard & Poor's credit analyst Wesley E.
Chinn.
The ratings of Innophos, a specialty chemical manufacturer 49%
owned by affiliates of Bain Capital LLC, reflect strengthening
cash flow protection measures that benefited in part from debt
reduction using proceeds from a November 2006 IPO. Credit
quality also incorporates a moderate sales base of over US$535
million, a narrow product line in a niche, mature market,
aggressive debt leverage, and litigation related to Mexican tax
claims and compliance with wastewater discharge limits at a
plant in Mexico. These negatives overshadow the company's solid
position in the production of specialty phosphates, good
operating margins, improving earnings, and prospects for
additional debt reduction from discretionary cash flows.
Innophos, Inc. -- http://www.innophos.com/-- is a leading North
American manufacturer of specialty phosphates serving a diverse
range of customers across multiple applications, geographies and
channels. Innophos offers a broad suite of products used in a
wide variety of food and beverage, consumer products,
pharmaceutical and industrial applications. The Company's
market-leading positions derive from its experience and
dedication to customer service and innovation. Headquartered in
Cranbury, New Jersey, Innophos has plant operations in
Tennessee, Illinois, Ontario and Mexico.
VALASSIS COMMUNICATIONS: Earns US$51.3 Mln in Year Ended Dec. 31
----------------------------------------------------------------
Valassis Communications Inc. earned US$51.3 million of net
income on US$1 billion of revenues for the year ended
Dec. 31, 2006, compared with US$95.4 million of net income on
US$1.1 billion of revenues for the year ended Dec. 31, 2005.
The significant decrease in net income is primarily due to the
negative effects of the intense competitive pricing pressure in
the Free-standing Inserts segment and lower volumes and
competitive pricing pressure in the Neighborhood Targeted
segment.
Results for 2006 also include after-tax charges of US$24.6
million related to the pending ADVO Inc. acquisition and related
litigation which was settled in December 2006 and US$1.4 million
related to the close-down of both the French agency business and
eSettlement business unit of NCH Marketing Services Inc.
The decrease in revenues is mainly attributable to the decline
in Free-standing Inserts segment revenues, which continues to be
negatively impacted by an intense competitive pricing
environment. Valassis also experienced a significant decline in
the Neighborhood Targeted segment.
Cost of sales was US$789.6 million in 2006 compared to
US$836.3 million in 2005. Gross margin in 2006 was 24.3%,
compared to 26.1% in 2005. The continued decrease in gross
margin percentage from 2006 compared to 2005 was primarily the
result of competitive pricing issues in the FSI segment.
Additionally, the gross margin percentage was negatively
impacted by a change in mix resulting in a larger percentage of
sales from lower margin products.
Selling, general and administrative expenses increased in 2006
to US$151.4 million versus US$142.7 million in 2005, primarily
due to US$16.1 million in legal and professional expenses
related to the merger agreement and related litigation between
Valassis and ADVO incurred during 2006 as well as US$3.6 million
in expenses related to the close-down of the French agency
business and eSettlement business unit of NCH.
These expenses were partly offset by restructuring charges of
US$6.9 million in 2005 related to the full integration of the
components of the Household Targeted business segment, which
resulted in the elimination of PreVision as a stand-alone
entity, right-sizing of coupon-clearing operations primarily in
Europe and other efficiency-related headcount reductions.
Interest expense was US$24.7 million in 2006, compared to
US$10.9 million in 2005. The increase in expense is due largely
to US$13.8 million in charges related to the termination of a
US$400 million interest-rate swap contract and premiums paid for
two separate US$400 million interest-rate swap contracts. These
contracts were entered into as a bridge hedge for a portion of
the acquisition financing related to the pending ADVO
acquisition.
Included in other income for 2004 is a US$6.5 million gain due
to the settlement of a property claim related to a fire at the
Corby, England facility.
Income tax expense represents 38.6% of earnings before income
taxes in 2006 compared to 34.8% in 2005 and 35.8% in 2004. The
increase in the effective tax rate is the result of the majority
of the US$16.1 million in legal and professional expenses
incurred in 2006 related to the litigation between Valassis and
ADVO, which was settled in December 2006, not being deductible.
At Dec. 31, 2006, the company's balance sheet showed
US$801.4 million in total assets, US$633.8 million in total
liabilities, and US$167.6 million in total stockholders' equity.
Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1a0a
Acquisition of ADVO Inc.
On July 5, 2006, Valassis Communications, Inc. signed a Merger
Agreement with ADVO Inc. a Delaware corporation, and Michigan
Acquisition Corp., a wholly owned subsidiary of Valassis. Under
the Merger Agreement, Michigan Acquisition Corp. will merge with
ADVO. After the merger, ADVO will become a wholly owned
subsidiary of Valassis.
Valassis filed suit on Aug. 30, 2006, seeking to rescind its
US$1.3 billion merger agreement with ADVO based on fraud and
material adverse changes.
On Dec. 19, 2006, the companies agreed to dismiss, with
prejudice, the lawsuit between the parties. Pursuant to the
amended Merger Agreement, the company will acquire all of the
outstanding shares of common stock of ADVO for US$33.00 in cash
per share.
The company's obligations under the amended Merger Agreement are
not conditioned on obtaining financing and there are no
conditions to close other than the approval of ADVO's
stockholders and the absence of any injunction or other legal
restraint to the merger.
Sources and Uses of Cash
Cash and cash equivalents totaled US$52.6 million at
Dec. 31, 2006, versus US$64.3 million at Dec. 31, 2005.
Cash flow from operating activities was US$49.8 million in 2006,
compared to US$116.2 million in 2005.
Net cash used in investing activities was US$50.6 million
primarily as a result of US$30.5 million in net purchases of
auction-rate securities and capital expenditures of US$16.3
million. This compared with US$133,000 net cash provided by
investing activities in 2005.
Cash used in financing activities was US$12.6 million for 2006,
primarily driven by repayment of US$14.4 million of debt. This
compared with net cash used in financing activities of
US$135.4 million in 2005. The company suspended its share
repurchase program in February 2006, therefore cash used in
financing activities was significantly lower in 2006 than in
2005.
At Dec. 31, 2006, Valassis' debt was US$259.9 million, which
consisted of US$100.0 million of its 6 5/8% Senior Notes due
2009 and US$160 million of Senior Convertible Notes due 2033.
About Valassis
Headquartered in Livonia, Michigan, Valassis Communications Inc.
(NYSE: VCI) -- http://www.valassis.com/-- provides marketing
services to consumer-packaged goods manufacturers, retailers,
technology companies and other customers with operations in the
United States, Europe, Mexico and Canada. Valassis' products
and services portfolio includes: newspaper-delivered promotions
and advertisements such as inserts, sampling, polybags and on-
page advertisements; direct-to-door advertising and sampling;
direct mail; Internet-delivered marketing; loyalty marketing
software; coupon and promotion clearing; and promotion planning
and analytic services. Valassis subsidiaries include Valassis
Canada, Promotion Watch, Valassis Relationship Marketing
Systems, LLC and NCH Marketing Services Inc.
The company also operates in France, Germany, Italy, Spain,
U.K., Mexico and Canada.
* * *
As reported in the Troubled Company Reporter-Europe on Feb. 19,
Moody's Investors Service assigned a B3 rating to Valassis
Communications Inc.'s proposed US$590-million of fixed and
floating rate senior unsecured notes due 2015.
Moody's Feb. 12, 2007 rating action on Valassis contemplated the
issuance of US$590-million of junior debt in conjunction with
the acquisition of ADVO and the company's existing ratings are
not affected by the issuance of the new senior unsecured notes.
Valassis' Corporate Family rating is B1 and the rating outlook
remains stable.
VALASSIS COMM: S&P Puts B- Rating on US$590-Mln Unsecured Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' rating to
Valassis Communications Inc.'s proposed US$590 million senior
unsecured notes.
The notes are rated two notches below the 'B+' corporate credit
rating on Valassis, reflecting the sizable amount of secured
debt in the company's proposed capital structure. Proceeds from
the proposed notes would be used to partially finance Valassis'
US$1.2 billion acquisition of ADVO, including the refinancing of
about US$125 million in debt at ADVO.
The 'B+' corporate credit rating on Valassis was affirmed, and
the rating outlook is stable. Also, Standard & Poor's affirmed
all other ratings on Valassis, including its 'BB-' rating on
Valassis' existing US$160 million senior unsecured convertible
notes due 2033 and US$100 million senior unsecured notes due
2009. These issues are rated one notch above the corporate
credit rating, reflecting springing liens that are expected to
secure both issues upon the close of the proposed senior secured
facility. The rating on these issues remains on CreditWatch
with negative implications, pending the close of the company's
proposed credit facility, at which time Standard & Poor's
expects to affirm them. Pro forma for proposed debt issuance,
Valassis had US$1.5 billion in lease-adjusted debt as of
December 2006.
"The ratings reflect high levels of pro forma leverage and
challenges that Valassis will face as it reverses trends of
declining profitability in each of its and ADVO's respective
businesses," said Standard & Poor's credit analyst Emile
Courtney.
Headquartered in Livonia, Michigan, Valassis Communications Inc.
(NYSE: VCI) -- http://www.valassis.com/-- provides marketing
services to consumer-packaged goods manufacturers, retailers,
technology companies and other customers with operations in the
United States, Europe, Mexico and Canada. Valassis' products
and services portfolio includes: newspaper-delivered promotions
and advertisements such as inserts, sampling, polybags and
on-page advertisements; direct-to-door advertising and sampling;
direct mail; Internet-delivered marketing; loyalty marketing
software; coupon and promotion clearing; and promotion planning
and analytic services.
=======
P E R U
=======
XEROX CORPORATION: Increases Share Repurchase Program by US$500M
----------------------------------------------------------------
Xerox Corporation's board of directors, on Feb. 15, 2007,
authorized the company to repurchase another US$500 million in
Xerox stock. This increases the company's stock buyback program
to US$2.5 billion since it launched in October 2005. In that
time, Xerox to date has repurchased about 108 million shares,
totaling US$1.6 billion.
"Expanding our share repurchase program is consistent with
Xerox's steady progress in generating strong cash flow," said
Lawrence A. Zimmerman, Xerox senior vice president and chief
financial officer. "Last year, we generated US$1.6 billion in
operating cash and we expect continued solid performance this
year. We're using the cash to deliver value for shareholders by
buying back stock and investing in growth through acquisitions,
innovation and a services-led approach to winning in the
marketplace."
About Xerox Corp.
Headquartered in Stamford, Connecticut, Xerox Corp. --
http://www.xerox.com/-- develops, manufactures, markets,
services and finances a range of document equipment, software,
solutions and services. Xerox operates in over 160 countries
worldwide and distributes products in the Western Hemisphere
through divisions, wholly owned subsidiaries and third-party
distributors. The company has operations in Japan, Italy and
Nicaragua.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 1, 2007, Standard & Poor's Ratings Services revised its
rating outlook on Stamford, Conn.-based Xerox Corp. to positive
from stable. Ratings on the company, including the 'BB+' long-
term and 'B-1' short-term corporate credit ratings, were
affirmed.
* PERU: Will Start Constructing Interceptor Norte in Two Months
---------------------------------------------------------------
Published reports say that the Peruvian ministry of housing,
construction and sanitation will launch in two months a public
tender process for the construction of wastewater treatment
plant Interceptor Norte in San Miguel, Lima.
Business News Americas relates that four international companies
have presented proposals for Interceptor Norte. ProInversion,
the state agency for promoting private investment, will evaluate
the proposals.
According to BNamericas, the Interceptor Norte project is part
of the plan to end ocean contamination coming from Lima and
Callao wastewater discharges.
Interceptor Costanero, the pipeline the district currently uses
that leads directly to the sea, will be closed down one year
after the Interceptor Norte project is awarded, BNamericas
states, citing Peruvian officials.
* * *
As reported in the Troubled Company Reporter on Nov. 22, 2006,
Standard & Poor's Ratings Services raised its long-term foreign
currency sovereign credit rating on the Republic of Peru to
'BB+' from 'BB' and its long-term local currency sovereign
credit rating to 'BBB-' from 'BB+'. Standard & Poor's also
raised its short-term local currency sovereign credit rating to
'A-3' from 'B', and affirmed its 'B' short-term foreign currency
sovereign credit rating on the republic. The outlook on the
ratings was revised to stable from positive. Standard & Poor's
also raised its assessment of the risk of transfer and
convertibility to 'BBB' from 'BBB-'.
=============
U R U G U A Y
=============
* URUGUAY: US Trade Agency to Decide on Gov't Projects Funding
--------------------------------------------------------------
The US Trade and Development Agency said in a statement that it
has published a pre-solicitation notice for consultants for
assistance in deciding whether to provide financing for the two
projects that the Uruguayan government proposed.
Business News Americas relates that the Uruguayan state power
company UTE wants to develop a US$560-million coal-fired plant.
The project would have a 400-megawatt installed capacity and
will use clean-coal technology. UTE has asked the trade agency
to fund the feasibility study.
According to BNamericas, the Uruguayan Antarctic Institute also
requested the trade agency's assistance in assessing the
viability of a hybrid renewable energy-diesel project to supply
power to Artigas Scientific Research Station in Antarctica. The
project would combine wind turbines, solar generators and a
back-up diesel system.
The trade agency said in a statement that a US firm contracted
by the institute developed the project proposal, terms of
reference and the feasibility study budget.
BNamericas underscores that the trade agency will accept bids
from consultants through March 7.
The report says that the winning bidder will help the trade
agency in analyzing the two projects as well as in assessing
alternative activities that could be viable options for the
agency.
The consulting works won't cost over US$35,000, BNamericas
states.
* * *
On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.
=================
V E N E Z U E L A
=================
ARVINMERITOR: Repays in Full US$169.5MM Outstanding Term Loan B
---------------------------------------------------------------
ArvinMeritor Inc. has repaid in full the US$169.5 million
aggregate principal amount of its outstanding Term Loan B due in
2012. Net proceeds from the recent issue of convertible senior
unsecured notes along with other sources were used to fund the
repayment.
The company also announced that lenders participating in the
Senior Secured Revolving Credit Facility due in 2011 have
unanimously approved amendments to the facility. The amendments
include a reduction of the revolving credit facility from US$980
million to US$900 million in addition to less restrictive
financial covenant levels. Jim Donlon, senior vice president
and CFO said, "While the reductions and improvements to our
revolving credit facility were not required, they demonstrate
our ongoing effort to continuously improve our balance sheet."
He continued, "With the recently announced agreement to sell our
Emissions Technologies Group, the need for facilities of more
than US$1 billion is no longer necessary. We believe the
enhancements will provide additional financial flexibility as we
focus on transforming our company and we are pleased with the
support of our bank group in helping us achieve our goals."
Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier US$8.8 billion
global supplier of a broad range of integrated systems, modules
and components to the motor vehicle industry. The company
serves light vehicle, commercial truck, trailer and specialty
original equipment manufacturers and certain aftermarkets.
ArvinMeritor employs approximately 29,000 people at more than
120 manufacturing facilities in 25 countries. It maintains 23
facilities in Venezuela, Brazil and Argentina. ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb 9, 2007, Standard & Poor's Ratings Services assigned its
'B+' rating to ArvinMeritor Inc.'s proposed US$175 million
convertible senior unsecured notes due 2027. The notes rank
equally with all of ARM's existing and future senior unsecured
indebtedness. The company will pay cash interest on the notes
semiannually until Feb. 15, 2019. After that date, no cash
interest will be paid, and the principal amount will be subject
to accretion at a rate that provides holders with an aggregate
annual yield to maturity to be determined. ARM is expected to
use the net proceeds to repay the US$169.5 million outstanding
under the term loan B due 2012 or to retire debt or fund debt
like obligations such as pension liabilities.
As reported in the Troubled Company Reporter-Latin America on
Feb. 14, 2007, Dominion Bond Rating Service assigned a rating of
BB (low) to the US$175 million Convertible Senior Unsecured
Notes of ArvinMeritor Inc. The trend is Stable.
ARVINMERITOR: Investors to Acquire Additional US$25MM Sr. Notes
---------------------------------------------------------------
ArvinMeritor Inc. disclosed that the initial purchasers in the
company's previously announced private offering of US$175
million aggregate principal amount of 4% convertible senior
unsecured notes due 2027 have exercised in full their option to
acquire up to US$25 million additional principal amount of the
notes, bringing to US$200 million the aggregate principal amount
of 4% convertible senior unsecured notes due 2027 sold by the
company in the private offering to qualified institutional
buyers. The additional purchase and sale is scheduled to close
on Feb. 28, 2007, subject to customary closing conditions.
The securities have not been registered under the Securities Act
of 1933, as amended, or applicable state securities laws, and
unless so registered, may not be offered or sold in the United
States except pursuant to an exemption from the registration
requirements of the Securities Act and applicable state
securities laws.
Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier USUS$8.8 billion
global supplier of a broad range of integrated systems, modules
and components to the motor vehicle industry. The company
serves light vehicle, commercial truck, trailer and specialty
original equipment manufacturers and certain aftermarkets.
ArvinMeritor employs approximately 29,000 people at more than
120 manufacturing facilities in 25 countries. It maintains 23
facilities in Venezuela, Brazil and Argentina. ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb 9, 2007, Standard & Poor's Ratings Services assigned its
'B+' rating to ArvinMeritor Inc.'s proposed US$175 million
convertible senior unsecured notes due 2027. The notes rank
equally with all of ARM's existing and future senior unsecured
indebtedness. The company will pay cash interest on the notes
semiannually until Feb. 15, 2019. After that date, no cash
interest will be paid, and the principal amount will be subject
to accretion at a rate that provides holders with an aggregate
annual yield to maturity to be determined. ARM is expected to
use the net proceeds to repay the US$169.5 million outstanding
under the term loan B due 2012 or to retire debt or fund debt
like obligations such as pension liabilities.
As reported in the Troubled Company Reporter-Latin America on
Feb. 14, 2007, Dominion Bond Rating Service assigned a rating of
BB (low) to the US$175 million Convertible Senior Unsecured
Notes of ArvinMeritor Inc. The trend is Stable.
DAIMLERCHRYSLER: Chrysler CEO LaSorda Communicates with Workers
---------------------------------------------------------------
Chrysler Group Chief Executive Tom LaSorda has sent an e-mail
message to employees saying that a "frenzy of rumors" circulated
that DaimlerChrysler AG is seeking partners and strategic
options for the group.
In his message posted on a media Web site, Mr. LaSorda said,
"The board of management has a duty to consider all options, but
while this process is ongoing, the board -- including myself --
can't comment on developments because of strict legal
requirements."
He added that, "It may take weeks or months before official
comments can be made on some issues."
He stressed that: "Meanwhile, our job is very clear. Our
mission is to produce great cars and trucks, to take care of our
customers and to restore profitability ... Whatever fork in the
road we may take, we first have to make sure we're on the road
-- and the recovery and transformation plan is that road."
As reported in the Troubled Company Reporter on Feb. 15, 2007,
Chrysler Group disclosed a three-year Recovery and
Transformation Plan that will result in an employee reduction of
13,000 people from 2007 to 2009 and US$4.5 billion financial
improvements by 2009.
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.
* VENEZUELA: Bandes' Uruguayan Unit Cutting Loan Interest Rates
---------------------------------------------------------------
Luis Pacheco, the Venezuelan state-owned Economic and Social
Development Bank or Bandes chairperson, told news agency Agencia
Bolivariana de Noticias that the bank's Uruguayan unit is
cutting loan interest rates to be competitive again.
According to El Universal, Bandes Uruguay began operations
ending August 2006, after the acquisition of assets and
liabilities from bankrupt savings and loan cooperative Cofac.
Mr. Pacheco told El Universal that Bandes Uruguay overhauled in
January information technology equipment exceeding US$3 million
to allow the bank to reduce operational risks. The bank has
also scheduled a second phase of technological upgrade that will
entail minor disbursements.
There are positive expectations on Bandes Uruguay, and a new
capitalization is scheduled for this year, El Universal states,
citing sources.
* * *
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: Installs Eight Power Generators in Nicaragua
---------------------------------------------------------
Cuban news agency ACN reports that Cuban and Venezuelan
specialists have installed the first eight power generators
donated by Venezuela to Nicaragua.
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 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: Launches Ayacucho 6 Block Drilling with Argentina
--------------------------------------------------------------
Venezuela said in a statement that it has started drilling the
Ayacucho 6 block in its Orinoco extra-heavy crude belt in
Anzoategui.
Venezuelan state-run oil firm Petroleos de Venezuela SA told
Business News Americas that drilling is focused on the MFD-29E
well in the area of MFD-AJ (A604). The project is part of
Venezuela's Magna Reserva reserve assessment plan that Petroleos
de Venezuela and its partners are making.
Xinhua News relates that Petroleos de Venezuela and its
Argentine counterpart Energia Argentina will exploit the MFD-29E
heavy crude well.
The Argentine planning ministry said in a statement that its
state oil Energia Argentina and Petroleos de Venezuela aim for a
September certification of the reserves in the Orinoco area.
Petroleos de Venezuela and Enarsa could produce 300,000 barrels
per day of oil in the Orinoco area. The figure is almost 50% of
Argentina's 700,000-barrel per day production. First results
are expected for 2009, according to the Argentine ministry's
statement.
The Argentine government said in a statement that the heads of
state signed accords related to:
-- vehicular natural gas,
-- oil,
-- natural gas, and
-- diesel.
Argentina's President Nestor Kirchner and Hugo Chavez, his
Venezuelan counterpart, also signed a deal for the export of
Argentine meat to Venezuela, Xinhua 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.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Shareholders Total
Equity Assets
Company Ticker (US$MM) (US$MM)
------- ------ ------------ -------
Kuala ARTE3 (33.57) 11.86
Kuala-Pref ARTE4 (33.57) 11.86
Bombril BOBR3 (781.53) 473.67
Bombril-Pref BOBR4 (781.53) 473.67
CIC CIC (1,883.69) 22,312.12
SOC Comercial PL COME (743.79) 459.53
CIMOB Partic SA GAFP3 (44.38) 121.74
CIMOB Part-Pref GAFP4 (44.38) 121.74
DOC Imbituba IMBI3 (19.84) 192.80
DOC Imbitub-Pref IMBI4 (19.84) 192.80
IMPSAT Fiber Networks IMPTQ N.A. N.A.
Kepler Weber KEPL3 (22.20) 478.81
Paranapanema SA PMAM3 (53.36) 3,268.96
Paranapanema-PREF PMAM4 (53.36) 3,268.96
Telebras-CM RCPT RCTB30 (59.79) 228.35
Telebras-PF RCPT RCTB40 (59.79) 228.35
Telebras-PF RCPT RCTB40 (59.79) 228.35
Teka TEKA3 (236.45) 540.81
Teka-PREF TEKA4 (236.45) 540.81
Telebras SA TELB3 (59.79) 228.35
Telebras SA-PREF TELB4 (59.79) 228.35
Telebras-CM RCPT TELE31 (59.79) 228.35
Telebras-PF RCPT TELE41 (59.79) 228.35
Telebras SA TLBRON (59.79) 228.35
Telebras SA-PREF TLBRPN (59.79) 228.35
Varig SA VAGV3 (8,194.58) 2,169.10
Varig SA-PREF VAGV4 (8,194.58) 2,169.10
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, Francois Albarracin, and Christian Toledo,
Editors.
Copyright 2076. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *