/raid1/www/Hosts/bankrupt/TCRLA_Public/070309.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, March 9, 2007, Vol. 8, Issue 49
Headlines
A R G E N T I N A
EL PASO: Subsidiary Intends to Redeem US$400 Million in Notes
YPF SA: Parent Seeks New Shareholder for Argentine Operations
B A R B A D O S
DIGICEL LTD: Grants Pay Hike to Non-Union Members, Says BWU Head
B E R M U D A
DESERT INSURANCE: Supreme Court Orders Liquidators' Release
IPOC INT'L: Swiss Court Rejects Appeal on Claim Rejection Order
B R A Z I L
AES TIETE: Reports BRL614.1 Mil. Net Income in Fiscal Year 2006
AFFILIATED COMPUTER: S&P Lifts Corporate Credit Rating to BB
ALLIANCE ONE: Closes US$150-Million Sale of 8.5% Senior Notes
BANCO ITAU: May Start Expanding in Latin America in 2009
BANCO DO BRASIL: Agricultural Premiums to Help Boost Profits
BANCO NACIONAL: Okays BRL2.14-Million Loan to Cooperativa Mista
DIRECTV: Executives Leaving for Fox Spurs Series of Promotions
DRESSER-RAND: Commences 11.5 Million Shares Secondary Offering
ELETROPAULO METROPOLITANA: Earns BRL373.4 Million in 2006
ISA CAPITAL: S&P Lifts US$554MM Sr. Notes' Rating to BB from BB-
TK ALUMINUM: Soliciting Consents to Planned Indenture Amendments
VARIG: U.S. Bankruptcy Court to Rule on Permanent Injunction
* BRAZIL: Fitch Says Insurance Regulation Favorable to Players
C A Y M A N I S L A N D S
COMBINATORICS FOCUS: Proofs of Claim Must be Filed by March 19
COMBINATORICS FOCUS MASTER: Claims Filing Ends on March 19
COOPERNEFF GLOBAL: Proofs of Claim Filing Deadline Is March 14
EASTERN OLYMPIAD: Proofs of Claim Filing Ends on March 14
GOLDMAN SACHS (CURRENCY): Final Shareholders Meeting Is Mar. 23
GOLDMAN SACHS (FIXED): Final Shareholders Meeting Is on Mar. 23
NORTHBRIDGE LTD: Sets Final Shareholders Meeting for March 23
ORYX NATURAL: Court to Hear Wind Up Petition on March 16
SITHE ASIA: Sets Last Shareholders Meeting for March 26
TOSHIN HOLDING: Sets Last Shareholders Meeting for March 23
VOORBURG INVESTMENTS: Sets Last Shareholders Meeting for Mar. 28
C O L O M B I A
BANCO DE COMERCIO: S&P Lifts Sr. Unsec. Debt Ratings to BB+
COMPANIA DE DESARROLLO: S&P Lifts Foreign Cur. Ratings to BB+
FINANCIERA ENERGETICA: S&P Lifts Sr. Unsec. Debt Ratings to BB+
TOWER RECORDS: Selects Hilco Merchant as Liquidation Consultant
C O S T A R I C A
ARMSTRONG WORLD: Wants Partial Summary Ruling on Sea-Pac's Claim
C U B A
* CUBA: Trade with Venezuela Expected to Reach US$1B Under ALBA
D O M I N I C A N R E P U B L I C
JETBLUE AIRWAYS: Hires Russell Chew as Chief Operating Officer
* DOMINICAN REPUBLIC: Leased State Sugar Mills Collapsed
E C U A D O R
PETROECUADOR: Unit Starts Drilling Block 15's Limoncocha 02 Well
G U A T E M A L A
BRITISH AIRWAYS: Completes Sale of BA Connect to Flybe
BRITISH AIRWAYS: Open Skies Deal Favors U.S., Chairman Says
H O N D U R A S
* HONDURAS: Cuts Power Supply to 700 Delinquent Businesses
J A M A I C A
AIR JAMAICA: Cricket World Cup Bookings Increasing
DIGICEL LIMITED: Rival Telecom Firm Can't Block Calls
DYOLL Group: Continues to Experience Severe Cash Flow Problems
GOODYEAR TIRE: Unit Reports US$120 Million in Losses Due to Fire
NATIONAL COMMERCIAL: Workers Hold Protest on Pay Increase
NATIONAL WATER: Implementing More Strict Measures to Save Water
SUGAR COMPANY: Gov't Criticized for Slow Divestment Process
* JAMAICA: Fiscal Discipline Cues S&P to Affirm B Ratings
M E X I C O
CELLSTAR CORP: Inks Pact with Raul Marcelo Over Proxy Voting
CINEMARK USA: Commences Tender Offer for 9% Senior Sub. Notes
CINEMARK USA: Tender Offer Cues Moody's to Review Ratings
CONSOLIDATED CONTAINER: Moody's Lifts Corp. Family Rating to B2
DAIMLERCHRYSLER: Offers US$100,000 Buyouts to Shed 13,000 Jobs
DAIMLERCHRYSLER AG: Zetsche Confirms Proposed SUV Deal with GM
DELTA AIR: Wants Until June 1 To Solicit Plan Acceptances
DELTA AIR: Wants More Time to Decide on 400 Unexpired Leases
FORD MOTOR: Eyes 2007 Profit for European Divisions
FORD MOTOR: In Talks with Navistar on Engine Pricing Clash
GENERAL MOTORS: Further Delays Filing of Reports Until March 16
PLASTICON INT'L: Profits Soar to US$3.4 Mil. in 2nd Quarter 2006
P U E R T O R I C O
DEVELOPERS DIVERSIFIED: Prices Offering of US600MM Senior Notes
FIRST BANCORP: Settles Securities Lawsuit in P.R. for US$74.25M
U R U G U A Y
INTERPUBLIC GROUP: Posts US$31.7 Million Net Loss in FY 2006
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Bond Issue to Ease ForEx Demand
PETROLEOS DE VENEZUELA: Ministry Awards Two Natural Gas Licenses
PETROLEOS DE VENEZUELA: Offers to Pay Debts with Crude Oil
PETROLEOS DE VENEZUELA: To Pay Total, BP for Jusepin Takeover
WILLBROS GROUP: Incurs US$105.4 Mil. Net Loss in Full Year 2006
* VENEZUELA: Seeks Energy Negotiations with Trinidad & Tobago
* VENEZUELA: Trade with Cuba Expected to Reach US$1B Under ALBA
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A R G E N T I N A
=================
EL PASO: Subsidiary Intends to Redeem US$400 Million in Notes
-------------------------------------------------------------
Southern Natural Gas Company, a subsidiary of El Paso
Corporation will redeem for cash the entire US$400 million
aggregate principal amount outstanding of its 8-7/8% notes due
2010. The redemption date will be March 30, 2007.
Southern Natural will pay a redemption price of US$1,044.38 per
US$1,000 principal amount of the notes, plus any accrued and
unpaid interest to March 30, 2007.
Payment of the redemption price will be made on or after
Mar. 30, 2007 upon presentation and surrender of the notes by
mail or hand delivery to:
The Bank of New York
Attention: Corporate Trust Administration
101 Barclay Street
Floor #8
New York, NY 10286
Unless Southern Natural defaults in making the redemption
payment, interest on the notes will no longer accrue on or after
the redemption date and the only remaining right of the holders
thereof is to receive payment of the redemption price upon
surrender to The Bank of New York of the notes.
Southern Natural said that a notice of redemption has been sent
to all currently registered holders of the notes by the trustee,
The Bank of New York. Copies of the notice of redemption and
additional information relating to the procedure for redemption
may be obtained from The Bank of New York by calling 1-800-254-
2826 (toll-free).
Headquartered in Houston, Texas, El Paso Corp. (NYSE:EP)
-- http://www.elpaso.com/-- provides natural gas and related
energy products in a safe, efficient, and dependable manner.
The company owns North America's largest natural gas pipeline
system and one of North America's largest independent natural
gas producers. The company has operations in Argentina.
As reported in the Troubled Company Reporter-Latin America on
March 7, 2007, Fitch Ratings has initiated rating coverage on El
Paso Corp. as:
-- Issuer Default Rating (IDR) 'BB+'; and
-- Senior Unsecured 'BB+'.
Fitch has also assigned new rating to El Paso's core pipeline
subsidiaries:
El Paso Corp.
-- Issuer Default Rating (IDR) 'BB+';
-- US$500 million secured letter of credit facility (2011)
'BBB-';
-- US$1.25 billion senior secured revolving credit facility
(2009) 'BBB-';
-- US$500 million senior unsecured credit facility (2011)
'BB+';
-- Senior unsecured notes and debentures 'BB+'; and
-- Perpetual preferred stock 'BB-'.
El Paso Energy Capital Trust I
-- Trust convertible preferred securities 'BB-'.
Colorado Interstate Gas Co.
-- Issuer Default Rating 'BBB-'; and
-- Senior unsecured debt 'BBB-'.
El Paso Natural Gas Company
-- Issuer Default Rating (IDR) 'BBB-'; and
-- Senior unsecured debt 'BBB-'.
Southern Natural Gas Company
-- Issuer Default Rating 'BBB-'; and
-- Senior unsecured debt 'BBB-'.
Tennessee Gas Pipeline Company
-- Issuer Default Rating 'BBB-'; and
-- Senior unsecured debt 'BBB-'.
El Paso Exploration & Production Company (EEPC)
-- Issuer Default Rating 'BB';
-- Senior secured revolving credit facility (2011)'BB+'; and
-- Senior unsecured debt 'BB'.
Fitch said the rating outlook for all ratings is stable.
YPF SA: Parent Seeks New Shareholder for Argentine Operations
-------------------------------------------------------------
Repsol YPF Chairman Antoni Brufau said in reports that the
company is looking for another shareholder for its Argentine
branch, YPF SA, Merco Press reports.
"We're studying other alternatives for YPF such as incorporating
another shareholder," Mr. Brufau said when asked about the
postponement of plans to list part of the Argentine unit, the
same report says.
"We prefer to wait a few months to see if the gap between prices
in Argentina and international price narrows," the chairman
said. With regards to state oil firm Petroleo Brasileiro as a
potential shareholder, Mr. Brufau noted that such partnership
could create anti-trust problems.
* * *
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.
===============
B A R B A D O S
===============
DIGICEL LTD: Grants Pay Hike to Non-Union Members, Says BWU Head
----------------------------------------------------------------
The Barbados Workers' Union Deputy General Secretary Robert
Morris has accused Digicel Ltd. of granting pay hikes to workers
who weren't members of the union, The Nation Newspaper reports.
As reported in the Troubled Company Reporter-Latin America on
Nov. 16, 2006, BWU accused Digicel of asking some of its workers
to leave the union and let the firms address any issues. The
union claimed that after requesting Digicel for union
recognition, the firm began to ask workers individually whether
they are members of the union or not. The union said that their
members started getting unusually low merit ratings in their
appraisals.
Mr. Morris told The Nation that Digicel hired a local firm to
conduct a salary survey and then give the workers pay hikes as
high as 45%. However, the raises were exclusive to workers who
weren't members of BWU.
The matter has been referred to the Chief Labor Officer and to
other ministries, The Nation Newspaper says, citing Mr. Morris.
Faye Gill, Digicel head of marketing, admitted to The Nation
Newspaper that the firm requested PriceWaterhouseCoopers to
carry out a "benchmarking exercise" to compare its salaries to
other utility firms.
However, Ms. Gill explained to The Nation Newspaper that as a
result of the survey, salaries of most workers -- except for
senior managers, temporary staff and those whose salaries were
already at an appropriate level -- were increased.
Mr. Morris also complained to The Nation Newspaper that the
works council that Digicel Ltd.'s management established was an
"in-house union" that prohibits discussions of matters like pay,
benefits, employee grievances and promotions.
Ms. Gill told The Nation Newspaper that the works council, which
was made up entirely of staff members, wasn't allowed to speak
on certain issues to protect privacy.
This had nothing to do with BWU. Digicel was in the process of
improving staff conditions, The Nation Newspaper says, citing
Ms. Gill.
"Right now we understand and respect what the BWU is all about,
but they have to respect our position as well. All we want is
to try to address staff concerns in-house, but if we cannot do
so, then we have no objection to staff going to the union," Ms.
Gill commented to The Nation Newspaper.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- Proposed US$1.4 billion senior subordinated notes
due 2015 assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings was stable.
* * *
Fitch Ratings assigned on July 14, 2006, a 'B' rating to Digicel
Ltd.'s proposed add-on offering of US$150 million 9.25% senior
notes due 2012. These notes are an extension of the US$300
million notes issued in July 2005. In addition, Fitch also
affirms Digicel's foreign currency Issuer Default Rating and the
existing US$300 million senior notes due 2012 at 'B'. Fitch
said the rating outlook is stable.
* * *
On July 12, 2006, Moody's Investors Service assigned a B3 senior
unsecured rating to the US$150 million add-on Notes offering of
Digicel Ltd. and affirmed Digicel's existing B3 senior unsecured
and B1 Corporate Family Ratings. Moody's changed the outlook to
stable from positive.
=============
B E R M U D A
=============
DESERT INSURANCE: Supreme Court Orders Liquidators' Release
-----------------------------------------------------------
The Supreme Court of Bermuda has ordered the release of
Christopher J. Hughes and Peter C B Mitchell as Desert Insurance
Company Ltd.'s joint liquidators, in accordance with Section 178
of The Companies Act 1981.
Mr. Hughes can be reached at:
Kroll's European Headquarters
10 Fleet Place
London EC4M 7RB
United Kingdom
Mr. Mitchell can be reached at:
Pricewaterhouse Coopers
Dorchester House
7 Church Street
Hamilton HM 11
Bermuda
The attorneys for the joint liquidators can be reached at:
Appleby Hunter Bailhache
Canon's Court
22 Victoria Street
Hamilton HM 12, Bermuda
IPOC INT'L: Swiss Court Rejects Appeal on Claim Rejection Order
---------------------------------------------------------------
The Swiss Federal Tribunal has rejected IPOC International
Growth Fund's appeal on the order of International Court of
Arbitration of the International Chamber of Commerce in Zurich,
which rejected IPOC's claim to a 19.4% stake in MegaFon, The
Royal Gazette reports.
The Swiss court has ruled that IPOC does not own rights to a
long-disputed stake in MegaFon, Royal Gazette says.
The court directed IPOC to pay LV Finance court costs of 80,000
Swiss francs or US$65,680 and compensation costs of 100,000
Swiss francs or US$82,112. LV Finance is the former owners of
the stake.
MegaFon Dispute
Royal Gazette states that for four years, IPOC has been claiming
in the Bahamas, the British Virgin Islands and Switzerland court
rooms, over a 25.1% stake in Russia's third largest mobile
operator, MegaFon.
The dispute began when Russia's Alfa Group bought CT-Mobile from
LV Finance. CT-Mobile holds the 25.1% stake in MegaFon.
IPOC asserted it had a pre-emptive right to buy the stake from
LV Finance. In 2004, a Geneva court upheld the Fund's claim on
a 5.575% stake in MegaFon, Royal Gazette adds.
May 2006 Decision
The Zurich tribunal, in May 2006, spotted Russian IT and
Telecommunications Minister Leonid Reiman as IPOC's beneficiary
owner. Mr. Reiman has denied this. However, Danish lawyer
Jeffrey Galmond has insisted he is the sole beneficial owner.
The tribunal opined that the money in the Bermuda fund included
the laundered proceeds of crime. The tribunal disclosed that
Mr. Reiman, a close ally of Russian President Vladimir Putin,
used his position in public office to steal personal wealth,
which was held in the IPOC Fund, Royal Gazette relates.
Wind-Up Request
As reported in the Troubled Company Reporter on Feb. 15, 2007,
the Bermuda Supreme Court is considering the liquidation of IPOC
International Growth Fund Ltd. based on the recommendations of
the Registrar of Companies at the direction of Finance Minister
Paula Cox.
In its report, the finance minister pushed for the liquidation
of IPOC and eight of its affiliates after auditing their
finances, Telegeography relates.
About IPOC International
Headquartered in Bermuda, IPOC International Growth Fund Ltd.
was founded in 2000. Its primary objective is to identify
emerging business trends and capitalize on international growth
opportunities.
===========
B R A Z I L
===========
AES TIETE: Reports BRL614.1 Mil. Net Income in Fiscal Year 2006
---------------------------------------------------------------
AES Tiete S.A. disclosed its financial results in full year
2006.
AES Tiete's 2006 EBITDA totaled BRL1,096.9 million, representing
an improvement of 16.8% in comparison with the previous year,
mainly due to a larger volume of sales made through the
Bilateral Contract. The EBITDA margin expanded by 2.1
percentage points, going from 77.0% in 2005 to 79.1% in 2006.
The fourth quarter 2006 EBITDA totaled BRL278.0 million, up
35.6% from fourth quarter 2005, with a margin of 80.2%.
2006 net income amounted BRL614.1 million, 10.4% superior than
2005, resulting in a net margin of 44.3%. The net income in
fourth quarter 2006 totaled BRL165.1 million, up 14.0% from
fourth quarter 2005 and the net margin grew from 45.2% in fourth
quarter 2005 to 47.7% in fourth quarter 2006.
Distribution of dividends relative to fourth quarter 2006
earnings were approved during the Board Meeting held on
March 5, 2007, and will be deliberated in the Shareholders'
Meeting scheduled for April 9, 2007. The payment of BRL165.1
million corresponds to BRL1.65 per 1,000 common shares and
BRL1.82 per 1,000 preferred shares. As a consequence, the
distribution of dividends for FY 2006 corresponds to BRL614.1,
which is equivalent to 100% of that year's net income.
AES Tiete S.A. is controlled by the Brasiliana holding company,
which is a joint venture between U.S.-based AES Corp. and
Brazil's National Development Bank aka BNDES. It is a ten-dam
hydroelectric generating company located in the State of Sao
Paulo, Brazil. The company has been granted the right to
operate the dams pursuant to a 30-year concession agreement.
* * *
Moody's Investors Service upgraded on Aug. 1, 2006, the foreign
currency rating for the senior secured certificates due 2016
issued by Tiete Certificates Grantor Trust to B1 from B3. The
rating outlook is stable. This rating action concludes the
review that was initiated on Jan. 17, 2006.
AFFILIATED COMPUTER: S&P Lifts Corporate Credit Rating to BB
------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
and senior secured ratings on Affiliated Computer Services Inc.
to 'BB' from 'B+' and removed the ratings from CreditWatch
positive (the initial CreditWatch placement with negative
implications was on Jan. 27, 2006). The outlook is stable.
"The rating actions reflect the filing of audited financial
reports and the elimination of any triggering events that might
have caused a payment acceleration on the company's US$2 billion
of term debt," said Standard & Poor's credit analyst Philip
Schrank. The company has completed its internal investigation
into its historical stock option practices. In response to the
investigation's findings, the company recognized a noncash,
cumulative pretax restatement for previously unrecognized stock-
based compensation expense of US$51.2 million.
The current ratings incorporate the capacity Affiliated Computer
has put in place to add significantly more debt through both a
US$1 billion debt revolver, and uncommitted accordion loans,
with very flexible loan covenants. "At the 'BB' rating level,
our expectation is that Affiliated Computer will manage its debt
leverage at between 3x-5x times over the intermediate term, and
may pursue further repurchases or acquisitions," said Mr.
Schrank.
Affiliated Computer has maintained higher margins than many of
its information technology outsourcing peers; some competitors
have experienced revenue deceleration and margin contraction.
While Affiliated Computer faces competitive threats from larger,
more globally positioned information technology providers, the
company's very strong position in state and local government
outsourcing services provides a measure of ratings stability.
Dallas-based Affiliated Computer Services Inc. has global
operations in Brazil, China, Dominican Republic, India,
Guatemala, Ireland, Philippines, Poland and Singapore.
ALLIANCE ONE: Closes US$150-Million Sale of 8.5% Senior Notes
-------------------------------------------------------------
Alliance One International Inc. has closed on the sale of US$150
million in aggregate principal amount of unsecured 8.5% senior
notes due 2012. The senior notes were sold at 99.507% of their
face amount. Alliance One will use the proceeds of the issuance
to repay outstanding borrowings under its existing senior
secured term loans.
The senior notes have not been and will not be registered under
the Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption
from the registration requirements of the Securities Act and
applicable state securities laws.
Based in Morrisville, North Carolina, Alliance One
International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a
leaf tobacco merchant. The company has worldwide operations in
Argentina, Bangladesh, Brazil, Bulgaria, Canada, China, France,
Philippines, Malaysia, and Singapore.
* * *
As reported in the Troubled Company Reporter on Sept. 27, 2006,
Moody's Investors Service's confirmed its B2 Corporate Family
Rating for Alliance One International, Inc., and upgraded its B2
rating on the Company's US$300 million senior secured revolver
to B1. In addition, Moody's assigned an LGD3 rating to notes,
suggesting noteholders will experience a 37% loss in the event
of a default.
BANCO ITAU: May Start Expanding in Latin America in 2009
--------------------------------------------------------
Banco Itau Holding Financeira SA Chief Operating Officer for
Latin America Natalisio de Almeida told Business News Americas
that the bank could consider expansions in Latin America
beginning 2009, after it consolidates its acquisitions in Chile
and Uruguay.
BNamericas relates that in May 2006, Banco Itau acquired
BankBoston Brazil from Bank of America for BRL4.50 billion. It
then paid US$633 million in August 2006 for BankBoston units in
Chile and Uruguay.
Mr. de Almeida commented to BNamericas, "After we succeed in
consolidating our existing operations, we will evaluate where
else can we go. We can certainly grow in Latin America."
Banco Itau will likely concentrate on the "better economies" in
Latin America, BNamericas says, citing Mr. de Almeida.
Banco Itau will try to reap the benefits of its large payment
network system in Latin America as well as growing trade flows
between the region and Asia and the US. Banco Itau will keep
focusing on higher-income clients as well the more profitable
small and medium-sized enterprise segments in Argentina, Chile
and Uruguay, BNamericas states, citing Mr. de Almeida.
Banco Itau Holding Financeira SA -- http://www.itau.com.br/--
is a private bank in Brazil. The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA (Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan. Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, Fitch changed the outlook of these ratings of
Banco Itau Holding Financiera SA:
-- foreign currency IDR at 'BB+'; outlook to positive from
stable;
-- local currency IDR at 'BBB-'; outlook to positive
from stable; and
-- national Long-term rating at 'AA+(bra)'; outlook to
positive from stable.
BANCO DO BRASIL: Agricultural Premiums to Help Boost Profits
------------------------------------------------------------
Jaime Kalsing -- chief executive officer of Alianca do Brasil,
an insurer controlled by Banco do Brasil -- told Business News
Americas that the firm expects increased agricultural premiums
will help raise profits by 10% in 2007, compared to 2006.
Mr. Kalsing said that higher sales of agricultural coverage will
contribute to expected billing growth of up to 15% in 2007,
BNamericas notes.
According to BNamericas, Alianca do Brasil's direct premiums
rose 16.9% to BRL1.37 billion in 2006, compared to 2005. Its
net profits increased 8.90% to BRL169 million.
BNamericas underscores that agricultural premiums grew 44.4% to
BRL38.6 million in 2006, from 2005, accounting for 18% of all
premiums.
Mr. Kalsing told BNamericas, "We expect agricultural premiums to
grow around 44% again this year and they could become a
significant part of our portfolio, considering the government's
aggressive subsidies program."
The Brazilian government will make BRL99.5 million available in
premiums subsidies, which could raise agricultural premiums to
BRL200 million, BNamericas says, citing Mr. Kalsing.
Banco do Brasil told BNamericas that agribusinesses must
purchase insurance coverage before they can secure a loan from
the bank.
However, farmers aren't required to buy insurance from Alianca
do Brasil to get Banco do Brasil funding, Mr. Kalsing explained
to BNamericas.
BNamericas underscores that the government also offers the
subsidies through:
-- AGF Seguros,
-- Mapfre Seguros,
-- Nobre Seguradora, and
-- Seguradora Brasileira Rural.
The report says that for low-income earners, Alianca do Brasil
will launch "cut-price" life and payment protection products
together with Banco do Brasil for up to BRL10 per month.
Mr. Kalsing told BNamericas that Alianca do Brasil sells most
policies at Banco do Brasil units. However, it wants to market
policies through the financial services partnerships that Banco
do Brasil has with national and regional retailers.
"We're already selling products through a few of these
partnerships and expect to add more this year," Mr. Kalsing
commented to BNamericas.
Alicanca do Brasil expects to boost its combined ratio to around
86% in 2007, from 88.3% in 2006. The loss ratio will likely
stay at 35%, BNamericas states, citing Mr. Kalsing.
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings upgraded Banco do Brasil S.A.'s
Support rating to '3' from '4', and affirmed its other ratings:
-- Foreign currency Issuer Default Rating (IDR) at 'BB+';
-- Short-term foreign currency at 'B';
-- Local currency IDR at 'BB+';
-- Short-term local currency at 'B';
-- Individual rating at 'C/D';
-- National Long-term rating at 'AA(bra)'; and
-- Short-term rating at 'F1+(bra)'.
BANCO NACIONAL: Okays BRL2.14-Million Loan to Cooperativa Mista
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's board
approved a BRL2.14 million financing to Cooperativa Mista dos
Pequenos Agricultores da Regiao Sul Ltda., which will be
directed to the installation of an diary product industry in the
Municipality of Sao Lourenco do Sul/RS (State of Rio Grande do
Sul).
The financing has been carried out in the ambit of Program for
Collective Productive Investments -- PROINCO -- which was
created in 2005, with the objective of supporting investment
projects which benefit national workers, producers and/or
enterprises with joint operation. With emphasis on less-
developed places, the expansion of these enterprises influences
decisively in the social and economic growth of the region,
sectors and involved communities.
It is Coopar's case, which is comprised by 1,700 members, mostly
small family rural workers. The cooperative operates in the
technical assistance and commercialization of agricultural
products and inputs to the members.
BNDES's share will amount to 91.5% of the BRL2.34 million total
investment. Out of the total released by BNDES to the
cooperative, 39.7% will be directed to financeable items, such
as coverage of pre-operational expenditures in the carrying out
of civil works, assemble and acquisition of furniture, utensils
and working capital. The other 51.7% will be non-reimbursable
resources, arising from the Social Fund, to directed to
supportable items, which will be applied in the acquisition of
national vehicle, machinery and equipment.
Coopar directs its operation to the small property and family
rural worker, supporting and promoting the social and economic
development in its embodied area, using the regional capacity,
besides expanding the commercialized volume.
Adding value to products is another merit, diversifying the
agricultural production and supporting the creation and
expansion of technologies for sustainable production, operating
in the organic product market.
In the last years, the cooperative has been promoting the milk
activity in its members' properties. The cattle raising
generates income and occupation to the worker, contributing to
his/her nutritional and diet safety. The cooperative's
operation area is one of the milk producers in the South of the
State of Rio Grande do Sul.
The cooperative has a strong and social importance to the make
feasible the operation of small milk producers, who would be
excluded from the productive chain for not supplying the minimum
volumes requested by the large milk producers.
One of the Proinco's successful project was the BRL1.89 million
financing to the Cooperativa Cachacaboa, in Vale do
Jequitinhonha, which is comprised by 28 members. With PROINCO's
support, the goal is to increase the production, within three
years, from the current 400 thousand liters to 1.2 million
liters per year/crop. It is expected that the operation will
contribute to the increase of the Municipality's average family
income, which currently amounts to BRL347.00 per month. The
Municipality of Aracuai, which is located in the center of Vale
do Jequitinhonha, in Minas Gerais, one of the Brazil's poorest
regions, discovered in the production of cachaca an important
income and job source.
Proinco has already seven approved projects in a portfolio with
69 operations, in a total amount of BRL101.3 million financings.
Out of this total, BRL75.6 million is for non-reimbursable
financings.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
DIRECTV: Executives Leaving for Fox Spurs Series of Promotions
--------------------------------------------------------------
DIRECTV made a series of promotions in its programming and
entertainment departments. Derek Chang has been promoted to
executive vice president of Content Strategy and Development and
Dan Hartman has been promoted to senior vice president,
Programming Acquisition. Mr. Chang will report to Chase Carey,
president and CEO of DIRECTV. Mr. Hartman will report to Mr.
Chang.
In his new role, Mr. Chang will oversee all programming
strategy, development and acquisitions for the domestic DIRECTV
business. Mr. Hartman will assume day-to-day responsibilities
for interfacing with major programmers and negotiating DIRECTV's
core programming rights.
It was also announced that Eric Shanks, executive vice president
of Entertainment, will now lead all of DIRECTV's entertainment
efforts and will also report directly to Mr. Carey. Together,
Shanks and Chang will oversee the content, programming
operations and content strategy for DIRECTV.
These changes are being made as David Hill, who was in a dual
role as President of DIRECTV Entertainment and Chairman and CEO
of Fox Sports, returns to Fox on a full-time basis and Dan
Fawcett, who is DIRECTV's Executive Vice President of
Programming Acquisition and Business & Legal Affairs, leaves
DIRECTV to take on a new position as President of Fox Digital
Media. Mr. Hill will remain involved with DIRECTV as an advisor
in select key entertainment and content initiatives.
"In his time with the company, Derek has brought tremendous
expertise and insight critical to the development of our
programming strategy and operations, and will be valuable as
leader of our programming group," Mr. Carey said. "Eric Shanks
has been the architect behind the development of original
content and integrating interactive services with our sports and
other programming. He will continue to apply his considerable
skill and talent to drive new and unique programming initiatives
and enhance our growing advertising sales effort. Together,
they are a formidable team to bring compelling programming and
exciting new content innovations to our customers.
"Dan Hartman has proven himself, playing a point role with our
content providers and his expertise will be a true asset as we
tackle an even wider array of programming challenges," Carey
added. "He will employ his substantial legal expertise and
ability to work hand-in-hand with Derek to continue to drive
programming efficiencies while securing unique and industry
leading content for our customers."
Mr. Chang joined DIRECTV in March of last year as senior vice
president, Strategy and Development, and was responsible for
developing strategic business opportunities for DIRECTV.
Hartman, who joined DIRECTV in 1998, was responsible for program
acquisition activities for all general entertainment and premium
cable networks and was programming liaison for DIRECTV's
Advanced Products group.
In addition, Mr. Carey added, "I'd like to take the opportunity
to thank David and Dan for their significant contributions over
the past few years; they have played such an important role in
our success. I'm particularly excited David will be available
to us in the future and that we'll continue to benefit from his
unique talent and vision. I congratulate Dan and wish him well
in the future."
Headquartered in El Segundo, California, The DIRECTV Group
(NYSE:DTV) -- http://www.directv.com/--, Inc. provides digital
television entertainment in the United States and Latin America.
It has two segments, DIRECTV U.S. and DIRECTV Latin America.
The DIRECTV U.S. segment provides direct-to-home digital
television services in the multichannel video programming
distribution industry in the United States. The DIRECTV Latin
America segment provides digital direct-to-home digital
television services to approximately 1.6 million subscribers in
27 countries, including Brazil, Argentina, Venezuela, and Puerto
Rico.
* * *
As reported on Jan. 10, 2007, Standard & Poor's Ratings Services
affirmed its ratings on satellite direct-to-home TV provider The
Directv Group Inc., including the 'BB' corporate credit rating.
S&P said the outlook is stable.
DRESSER-RAND: Commences 11.5 Million Shares Secondary Offering
--------------------------------------------------------------
Dresser-Rand Group Inc. had commenced a secondary offering of
11,596,981 shares of its common stock to be sold by its
stockholder, D-R Interholding, LLC, pursuant to its existing
automatic shelf registration statement. Dresser-Rand will not
receive any proceeds from the sale of shares in the offering.
The net proceeds will be distributed by the selling stockholder
to affiliates of First Reserve Corporation and to certain
members of Dresser-Rand management.
Morgan Stanley is acting as the sole underwriter for the
offering.
A prospectus supplement relating to the offering will be filed
with the Securities and Exchange Commission. When available,
copies of the prospectus supplement and the accompanying base
prospectus may be obtained by contacting:
Morgan Stanley & Co. Incorporated
Prospectus Department
180 Varick Street, 2nd Floor
New York, NY 10014
Tel: (866) 718-1649
Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries. It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.
* * *
Standard & Poor's Ratings Services raised on Sept. 13, 2006, its
corporate credit rating on rotating equipment maker Dresser-Rand
Group Inc. to 'BB-' from 'B+' and revised the outlook on the
rating to stable from positive.
ELETROPAULO METROPOLITANA: Earns BRL373.4 Million in 2006
---------------------------------------------------------
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
announced its financial results in year ended 2006.
Britaldo Soares, the company's Chief Financial Officer and
Investor Relations Director, said: "2006 was a year of positive
results for Eletropaulo. The company obtained an EBITDA of
BRL1,763.4 million, up 57% from 2005's EBITDA, while net income
totaled BRL373.4 million, compared to a loss of BRL155.5 million
in the previous year. With this result, the company reversed
accumulated losses of BRL262.1 million up until 2005 and now is
proposing payment of BRL130.4 million in dividends."
"In 2006, Eletropaulo reduced its net debt by 20%, besides
extending maturity terms, reducing costs and eliminating the
foreign exchange exposure."
"In recognition of the company's improved financial and
operating performance, rating agencies increased Eletropaulo's
domestic rating from BBB+ to A (Fitch) and A- (S&P) in fourth
quarter 2006."
"Moreover, Eletropaulo's secondary share conducted by AES
Transgas was successful and raised the free float from 18% to
56%, and consequently the daily average trading volume climbed
4.3 times when compared to 2005."
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA --
http://www.eletropaulo.com.br/-- provides electricity to more
than 5 million customers in the Brazilian state of Sao Paulo.
Part of the privatization trend in Brazil, the company is one of
four created by the split of the former state-owned generation,
transmission, and distribution utility. Brasiliana Energia, a
company jointly held by US independent power producer AES and
Brazilian national development bank BNDES through Brasiliana,
owns approximately 99% of Eletropaulo.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2006, Standard & Poor's Ratings Services raised the
ratings on Brazilian electric utility Eletropaulo Metropolitana
Eletricidade de Sao Paulo SA and its BRL474 million senior
unsecured and unsubordinated euro bonds to 'BB-' from 'B+'. On
the Brazil national scale, the 'brBBB+' corporate credit rating
was raised to 'brA-'. S&P said the outlook is stable.
ISA CAPITAL: S&P Lifts US$554MM Sr. Notes' Rating to BB from BB-
----------------------------------------------------------------
Standard & Poor's Ratings Services has raised its corporate
credit rating on ISA Capital do Brasil SA to 'BB+' from 'BB'.
Standard & Poor's also raised the rating on the company's US$554
million senior notes to 'BB' from 'BB-'. The outlook is stable.
"The rating action follows the rating upgrade on ISA Capital's
parent, Interconexion Electrica S.A. E.S.P. to 'BB+' from 'BB'
as a result of the rating upgrades on the Republic of Colombia's
long-term local and foreign currency," noted Standard & Poor's
credit analyst Fabiola Ortiz. "Standard & Poor's believes that
ISA Capital will receive implicit support from Interconexion
Electrica, its majority owner, mainly because of the company's
important role in Brazil's electricity sector."
The stable outlook reflects the implicit support from
Interconexion Electrica. However, the rating is constrained by
Standard & Poor's lower perception of country risk associated
with the company's economic and working environment. A positive
rating action for Interconexion Electrica does not necessarily
indicate a positive rating action for ISA Capital. Conversely,
a deterioration of ISA Capital's financial risk profile could
result in a negative rating action.
ISA Capital do Brasil, is a pure holding company organized under
the laws of Brazil formed on April 28, 2006. The company's
revenues and principal sources of cash are derived from
dividends and other distributions in respect of shares in CTEEP.
The company owns 89.4% of CTEEP's total issued and outstanding
common stock representing 37.46% of CTEEP's total capital stock.
Interconexion Electrica SA ESP, an electricity transmission
company controlled by the government of Colombia, owns 99.99% of
ISA Capital do Brasil SA. CTEEP is the largest electricity
transmission company in the State of Sao Paulo and the largest
privately owned transmission company in Brazil.
TK ALUMINUM: Soliciting Consents to Planned Indenture Amendments
----------------------------------------------------------------
Teksid Aluminum Luxembourg S.a r.l., S.C.A., an indirect
subsidiary of TK Aluminum Ltd., has commenced a solicitation
of consents from each holder of its outstanding 11.375% Senior
Notes due 2011 pursuant to a consent solicitation statement
dated March 2, 2007, to implement proposed amendments to the
indenture governing the Senior Notes. The consent solicitation
will expire today, March 8, 2007, at 10:00 a.m., New York City
time (3:00 p.m., London time), unless extended.
In order to execute a supplemental indenture giving effect to
the proposed amendments, consents from holders of at least a
majority of the then aggregate outstanding principal amount of
Senior Notes must be obtained on or prior to the Expiration
Date. Once the company receives the Requisite Consents, it will
execute the Supplemental Indenture.
Noteholders who consent at or prior to the execution of the
Supplemental Indenture may revoke their consents at any time
prior to the execution of the Supplemental Indenture, but not
thereafter.
The company is making the consent solicitation in connection
with the sale of certain assets and operations to Tenedora
Nemak, S.A. de C.V., a subsidiary of Alfa, S.A.B. de C.V. As
previously announced, the company has been negotiating with
Nemak to amend the terms of the Nemak Sale. Under the terms of
the letter of understanding with Nemak as to the proposed terms
of an amended Nemak Sale, the company would sell its operations
in North America and South America and 30% of its equity
interests in a joint venture, Nanjing Teksid Aluminum Foundry,
in the initial closing and would sell its operations in Poland
and the remaining 40% equity interests in Nanjing Teksid
Aluminum Foundry in one or more subsequent closings. However,
the letter of understanding with Nemak places Nemak under no
obligation to consummate a transaction until a definitive
agreement to amend the transaction has been executed. Closing
of the amended Nemak transaction is subject to various
conditions, including the receipt of the Requisite Consents by
the company and other customary conditions, including regulatory
approvals.
The proposed indenture amendments would permit the Nemak Sale,
as it is proposed to be amended, and implement the other terms
that were agreed to with the financial and legal advisors to the
adhoc committee of Noteholders.
The advisors to the adhoc committee of bondholders have informed
the company that holders of approximately 55% of the outstanding
principal amount of Senior Notes have indicated that they will
provide their consent in the Consent Solicitation. Assuming
these holders do consent as they have indicated, the Requisite
Consents will be obtained.
There will not be any consent fee offered to holders of Senior
Notes in conjunction with the consent solicitation.
The completion of the consent solicitation is subject to, among
other things, these conditions: the valid receipt, prior to the
Expiration Date, of the Requisite Consents, and the due
execution of the Supplemental Indenture; and certain other
general conditions described in the Statement.
These conditions are for the company's sole benefit and the
company may waive them in whole or in part at any or at various
times prior to the expiration of the consent solicitation in its
sole discretion. In addition, subject to the terms set forth in
the Statement, the company expressly reserves the right, but
will not be obligated, at any time or from time to time, on or
prior to the Expiration Date, to extend or amend the consent
solicitation in any respect, subject to applicable law.
For further information please contact the Consent Solicitation
Agent:
Lazard Freres & Co. LLC
Attention: Investment Banking Department
30 Rockefeller Plaza
New York, New York 10020
Telephone (212)-632-6000 or 1-800-LAZ-F144 (toll-free)
Copies of the Statement may be obtained from Information Agent
and Tabulation Agent in Luxembourg:
The Bank of New York (Luxembourg) S.A.
Attention: Corporate Trust Administration
One Canada Square
London E14 5AL, England
Telephone +44-207-964-6461
About Teksid Aluminum
Headquartered in Bermuda, Teksid Aluminum --
http://www.teksidaluminum.com/-- is a leading independent
manufacturer of aluminum engine castings for the automotive
industry. Principal products include cylinder heads, engine
blocks, transmission housings and suspension components. The
company operates 15 manufacturing facilities in Europe, North
America, South America and Asia. The company maintains
operations in Italy, Brazil and China.
* * *
On Jan. 16, 2007, Moody's Investors Service placed TK Aluminum
Ltd.'s long-term corporate family rating at Caa3.
VARIG: U.S. Bankruptcy Court to Rule on Permanent Injunction
------------------------------------------------------------
The U.S. Bankruptcy Court of the Southern District of New York
will decide on March 16, 2007, at 10:00 a.m. whether to enter a
permanent injunction order on Varig S.A., as well as on Rio Sul
Linhas Aereas SA and Nordeste Linhas Aereas SA.
On Dec. 28, 2005, the Commercial Bankruptcy and Reorganization
Court in Rio de Janeiro, Brazil, issued an order sanctioning and
approving the judicial recovery plan of Varig, Rio Sul and
Nordeste Linhas in their reorganization proceedings pending in
the Brazilian Court pursuant to the New Bankruptcy and
Restructuring Law of Brazil.
The Initial Plan was supplemented by a Detailed Judicial
Reorganization Plan -- approved by the general assembly of
creditors in the Foreign Proceedings on Feb. 23, 2006 -- and a
Restated in-Court Reorganization, which was approved by the
general assembly of creditors in the Foreign Proceedings on
July 17, 2006.
On Dec. 15, 2006, the Brazilian Court issued a decision that
declared the sale of certain operations of the foreign debtors
under the Plan and Article 60 of Brazil's New Bankruptcy and
Restructuring Law.
A permanent injunction order will allow for the full enforcement
of the Plan, Approval Order and the Sale Approval Order in the
U.S. and elsewhere within the jurisdiction of the Bankruptcy
Court, and with regard to all parties subject to the Court's
jurisdiction, and will be binding on and against all of the
foreign debtors' creditors and all other relevant parties.
The Permanent Injunction Order will enjoin and restrain parties
from taking various actions against the foreign debtors with
respect to:
(a) claims arising prior to the commencement of the
foreign proceedings,
(b) various contracts and other agreements with the
foreign debtors, and
(c) various other matters.
Objections to the proposed permanent injunction order were
allowed to be filed with the Court until noon on March 9, 2007.
The counsel to the foreign representative of Varig, Rio Sul and
Nordeste Linhas can be reached at:
Pillsbury Winthrop Shaw Pittman LLP
Rick B. Antonoff, Esq.
Lara R. Sheikh, Esq.
1540 Broadway, New York
New York 10036, USA
Phone: (212) 858-1000
About Varig
Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America. VARIG's principal business is the transportation of
passengers and cargo by air on domestic routes within Brazil and
on international routes between Brazil and North and South
America, Europe and Asia. VARIG carries approximately 13
million passengers annually and employs approximately 11,456
full-time employees, of which approximately 133 are employed in
the United States.
The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage.
The Debtors may be the first case under the new law, which took
effect on June 9, 2005. Similar to a chapter 11 debtor-in-
possession under the U.S. Bankruptcy Code, the Debtors remain in
possession and control of their estate pending the Judicial
Reorganization. Sergio Bermudes, Esq., at Escritorio de
Advocacia Sergio Bermudes, represents the carrier in Brazil.
Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative. In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States. As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts.
Volo do Brasil, which purchased VARIG's cargo unit, VARIG
Logistica S.A., and partially controlled by U.S. investment fund
MatlinPatterson Global Advisors, bought VARIG for US$600 million
in July 2006.
* BRAZIL: Fitch Says Insurance Regulation Favorable to Players
--------------------------------------------------------------
Fitch Ratings released March 6 a special report entitled
"Brazilian Reinsurance Market: The Beginning of a New Era?"
which addresses the approval of regulations in Brazil to open
the reinsurance market to private competition.
Fitch believes that the approval is significant because the
Brazilian reinsurance market is the largest and one of the most
relevant markets in Latin America.
Fitch's Latin America Insurance Group Director Franklin
Santarelli said, "Over time, the regulation will provide
reinsurers and cedants with several benefits including enhanced
market efficiency, wider product offerings, and better risk
diversification. It also may lead to significant foreign
participation in the market and assist improvements in market
efficiency."
Despite these favorable aspects, the Brazilian reinsurance
sector continues to face several challenges including heightened
competition from new participants entering the market, adapting
to on-going changes in the regulatory framework, coping with the
fragmented primary market's consolidation trend, and changing
practices to adapt to the new environment.
===========================
C A Y M A N I S L A N D S
===========================
COMBINATORICS FOCUS: Proofs of Claim Must be Filed by March 19
--------------------------------------------------------------
Combinatorics Focus Fund, Ltd.'s creditors are given until
March 19, 2007, to prove their claims to DMS Corporate Services
Ltd, 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.
Combinatorics Focus' shareholders agreed on Dec. 29, 2006, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
DMS Corporate Services Ltd.
Attention: Angela Nightingale
Ansbacher House
P.O. Box 31910 SMB
Grand Cayman, Cayman Islands
Telephone: (345) 946 7665
Fax: (345) 946 7666
COMBINATORICS FOCUS MASTER: Claims Filing Ends on March 19
----------------------------------------------------------
Combinatorics Focus Master, Ltd.'s creditors are given until
March 19, 2007, to prove their claims to DMS Corporate Services
Ltd., 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.
Combinatorics Focus Master's shareholders agreed on
Dec. 29, 2006, to place the company into voluntary liquidation
under The Companies Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
DMS Corporate Services Ltd.
Attention: Angela Nightingale
Ansbacher House
P.O. Box 31910 SMB
Grand Cayman, Cayman Islands
Telephone: (345) 946 7665
Fax: (345) 946 7666
COOPERNEFF GLOBAL: Proofs of Claim Filing Deadline Is March 14
--------------------------------------------------------------
Cooperneff Global Manifold, Ltd.'s creditors are given until
March 14, 2007, to prove their claims to John Cullinane and
Derrie Boggess, the company's liquidators, 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.
Cooperneff Global's shareholders agreed on March 14, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd., Walker House
87 Mary Street, George Town
Grand Cayman KY1 9002
Cayman Islands
Telephone: (345) 914-6305
EASTERN OLYMPIAD: Proofs of Claim Filing Ends on March 14
---------------------------------------------------------
Eastern Olympiad Fund II, Ltd.'s creditors are given until
March 14, 2007, to prove their claims to John Cullinane and
Derrie Boggess, the company's liquidators, 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.
Eastern Olympiad's shareholders agreed on March 14, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd., Walker House
87 Mary Street, George Town
Grand Cayman KY1 9002
Cayman Islands
Telephone: (345) 914-6305
GOLDMAN SACHS (CURRENCY): Final Shareholders Meeting Is Mar. 23
---------------------------------------------------------------
Goldman Sachs Quantitative Currency Strategies Master Fund
Offshore, Ltd., will hold its final shareholders meeting on
March 23, 2007, at 12:00 p.m., at the company's offices.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd.
Walker House, 87 Mary Street
P.O. Box 908
Grand Cayman KY1-9002
Cayman Islands
GOLDMAN SACHS (FIXED): Final Shareholders Meeting Is on Mar. 23
---------------------------------------------------------------
Goldman Sachs Quantitative Fixed Income Strategies Master Fund
Offshore, Ltd., will hold its final shareholders meeting on
March 23, 2007, at 12:30 p.m., at the company's offices.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd.
Walker House, 87 Mary Street
P.O. Box 908
Grand Cayman KY1-9002
Cayman Islands
NORTHBRIDGE LTD: Sets Final Shareholders Meeting for March 23
-------------------------------------------------------------
Northbridge, Ltd., will hold its final shareholders meeting on
March 23, 2007, at 10:00 a.m., at:
P.O. Box 1109
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
Cereita Lawrence
Janet Crawshaw
P.O. Box 1109
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-7755
Fax: (345) 949-7634
ORYX NATURAL: Court to Hear Wind Up Petition on March 16
--------------------------------------------------------
The Grand Court of the Cayman Islands will hear a petition to
wind up Oryx Natural Resources, on March 16, 2007, at 10:00 a.m.
at Law Courts, George Town, Grand Cayman, Cayman Islands.
Beagle Equities Ltd., a company registered in the British Virgin
Islands, filed the petition on Feb. 8, 2007.
Any creditor or contributory of Oryx Natural who wants to
support or oppose the winding-up petition may attend the hearing
in person or by an attorney.
Any person who intends to appear on the hearing must write to
Appleby Hunter Bailhache, Beagle Equities' legal representative,
no later than 4:00 p.m. on March 15, 2007, at:
Clifton House
75 Fort Street
P.O. Box 190, George Town
Grand Cayman KY1-1104, Cayman Islands
Phone: (+1)(345) 949 4900
Fax: (+1) (345) 949 4901
The petitioner can be reached at:
Beagle Equities Ltd.
Akara Building
24 De Castro Street
Wickhams Cay I, Road Town
Tortola, British Virgin Islands
The debtor can be reached at:
Oryx Natural Resources
Campbell Corporate Services Ltd.
Scotiabank Building
P.O. Box 268, George Town
Grand Cayman KY1-1104
Cayman Islands
SITHE ASIA: Sets Last Shareholders Meeting for March 26
-------------------------------------------------------
Sithe Asia Holdings, Ltd., will hold its final shareholders
meeting on March 26, 2007, at 10:30 a.m., at the office of the
company.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
K.D. Blake
Attention: Dorra Mohammed
P.O. Box 493
Grand Cayman KY1-1106
Cayman Islands
Telephone: 345-949-4800
Fax: 345-949-7164
TOSHIN HOLDING: Sets Last Shareholders Meeting for March 23
-----------------------------------------------------------
Toshin Holding, Ltd., will hold its final shareholders meeting
on March 23, 2007, at 12:00 p.m., at the office of the company.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
P.O. Box 908
Grand Cayman KY1-9002
Cayman Islands
VOORBURG INVESTMENTS: Sets Last Shareholders Meeting for Mar. 28
----------------------------------------------------------------
Voorburg Investments (1980), Ltd., will hold its final
shareholders meeting on March 28, 2007, at 10:00 a.m., at:
4th Floor, Harbour Place
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Jeff Arkley
Attention: Neil Gray
Close Brothers (Cayman) Ltd.
Fourth Floor, Harbor Place
P.O. Box 1034
George Town, Grand Cayman
Cayman Islands
Telephone: (345) 949 8455
Fax: (345) 949 8499
===============
C O L O M B I A
===============
BANCO DE COMERCIO: S&P Lifts Sr. Unsec. Debt Ratings to BB+
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency issuer credit and senior unsecured debt ratings on
Banco de Comercio Exterior de Colombia SA aka BANCOLDEX to 'BB+'
from 'BB'. The outlook is stable.
According to Standard & Poor's credit analyst Richard Francis,
the upgrade mirrors that on the foreign currency sovereign
rating on Republic of Colombia (BB+/Stable/B foreign currency
sovereign credit ratings).
"The ratings incorporate the support of the sovereign and the
bank's record of good financial performance since its inception
in 1992," Mr. Francis said. "BANCOLDEX is 99.7% owned by the
Colombian government, and the remaining portion is owned by the
private sector. The bank, which remains the government's key
vehicle to supporting small and mid-sized enterprises, will
likely remain under almost full government control, at least
over medium term."
COMPANIA DE DESARROLLO: S&P Lifts Foreign Cur. Ratings to BB+
-------------------------------------------------------------
Standard & Poor's has raised its long-term foreign currency
rating on Companhia de Desarrollo Aeropuerto Eldorado to BB+
from BB, Business News Americas reports.
According to BNamericas, Compania de Desarrollo holds a
concession for the first and second runways at the El Dorado
airport in Bogota. Spanish company Abertis controls the firm.
Compania de Desarrollo credit analyst Fabiola Ortiz told
BNamericas that the rating action on the firm is due to the
raising of Colombia's ratings.
As reported in the Troubled Company Reporter-Latin America on
March 7, 2007, Standard & Poor's Ratings Services raised its
long-term foreign currency sovereign credit rating on the
Republic of Colombia to 'BB+' from 'BB'. At the same time,
Standard & Poor's raised its long-term local currency sovereign
credit rating on Colombia to 'BBB+' from 'BBB'. Standard &
Poor's also raised its short-term local currency rating on the
republic to 'A-2' from 'A-3'. The outlooks on the long-term
ratings were revised to stable from positive.
FINANCIERA ENERGETICA: S&P Lifts Sr. Unsec. Debt Ratings to BB+
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency issuer credit and senior unsecured debt ratings on
Financiera Energetica Nacional to 'BB+' from 'BB'. The outlook
is stable.
According to Standard & Poor's credit analyst Richard Francis,
the upgrade mirrors that on the foreign currency sovereign
rating on Republic of Colombia (BB+/Stable/B foreign currency
sovereign credit ratings).
"The rating balances the support of the government and
Financiera Energetica's weaker financial condition, relative to
that of other Colombian public sector financial institutions,"
Mr. Francis said. "About 61% of Financiera Energetica's assets
and 39% of its liabilities are guaranteed directly by Colombia
as of year-end 2006. Most other public sector entities, such as
Banco de Comercio Exterior de Colombia S.A. (BANCOLDEX;
BB+/Stable/--), do not benefit from such extensive direct
sovereign guarantees."
TOWER RECORDS: Selects Hilco Merchant as Liquidation Consultant
---------------------------------------------------------------
MTS Inc. dba Tower Records and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware for authority
to employ Hilco Merchant Resources LLC as their retail inventory
liquidation consultant.
Hilco will serve as consultant with respect to the potential
dispute that the Debtors have with the joint venture of the
Great American Group LLC and Hudson Capital Group LLC.
Specifically, Hilco will assist the Debtors and its
professionals in analyzing the appropriate adjustment to the
retail price of merchandise, if any, due to the agent under the
agency agreement and applicable documents governing the conduct
of store closing or going-out-of-business sales for the Debtors.
At the Debtors' request, Hilco will also communicate with the
Debtors' creditor constituencies and will provide expert witness
testimony on the matter in connection with applicable court
proceedings.
Hilco will be compensated through a percentage fee basis:
Final Guaranteed Amount (millions) Percentage Fee
---------------------------------- --------------
US$99.5 - US$100.0 0%
US$100.0 - US$101.0 5%
US$101.0 - US$102.0 9%
US$102.0 - US$103.0 13%
US$103.0 - US$104.0 17%
US$104.0 + 20%
To the best of the Debtors' knowledge, Hilco does not hold
any interest adverse to their estates.
About Tower Records
Headquartered in West Sacramento, California, MTS, Inc., dba
Tower Records -- http://www.towerrecords.com/-- is a retailer
of music in the U.S., with nearly 100 company-owned music, book,
and video stores. The company has stores in the United Kingdom,
the Philippines and Colombia.
The Company and its affiliates previously filed for chapter 11
protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No.
04-10394). The Court confirmed the Debtors' plan on
March 15, 2004.
The Company and seven of its affiliates filed their second
voluntary chapter 11 petition on Aug. 20, 2006 (Bankr. D. Del.
Case Nos. 06-10886 through 06-10893). Richards, Layton &
Finger, P.A. and O'Melveny & Myers LLP represent the Debtors.
The Official Committee of Unsecured Creditors is represented by
McGuirewoods LLP and Cozen O'Connor. When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than US$100 million. The Debtors' exclusive period to
file a chapter 11 plan expires on Dec. 18, 2006.
Moody's Investors Service gave the company's issuer rating and
long-term corporate family rating a Ca, and its senior
subordinated rating a C.
===================
C O S T A R I C A
===================
ARMSTRONG WORLD: Wants Partial Summary Ruling on Sea-Pac's Claim
----------------------------------------------------------------
Armstrong World Industries, Inc., asks the U.S. Bankruptcy Court
for the District of Delaware for a partial summary judgment on
Sea-Pac Sales Company's Claim No. 4854 relating to AWI's alleged
breaches of the parties' commercial flooring products
distributorship agreement, and residential flooring products and
distributorship agreement and sales/service center agreement to
the extent Sea-Pac asserts a prepetition claim.
AWI also asks the Court to find as a matter of law that:
* Sea-Pac waived AWI's alleged breach of the Commercial
Agreement in appointing a second distributor; and
* Sea-Pac waived, by withdrawing the original Sea-Pac Claim,
Claim No. 3528, with prejudice, any claim for prepetition
damages relating to AWI's alleged breach of the
Residential Agreement.
Pursuant to Rule 56 of the Federal Rules of Civil Procedure,
made applicable through Rules 7056 and 9014 of the Federal Rules
of Bankruptcy Procedure, summary judgment is warranted when
"there is no genuine issue as to any material fact. . .," Jason
M. Madron, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, states.
"It is hornbook law that when one party to a contract has actual
knowledge of the other party's breach and continues to perform
under the contract and accepts the benefits of the contract,
such continuing performance constitutes a waiver of the breach,"
Mr. Madron says.
Similarly, the fact that a party is on notice of a breach of
contract and renews or extends that contract also waives the
prior breach and resulting claims, Mr. Madron adds.
It is undisputed that AWI gave Sea-Pac notice of its appointment
of a second distributor in the Pacific Northwest sales
territory, and that Sea-Pac had actual knowledge of the
appointment, Mr. Madron tells the Court. After learning of the
alleged breach in February 2003, Sea-Pac:
-- failed to invoke the dispute resolution procedures of the
Commercial Agreement;
-- withdrew with prejudice the Aug. 30, 2001 Claim No. 3528
on May 28, 2003;
-- failed to file any administrative expense claim before
the Nov. 24, 2003 bar date;
-- failed to file any motion to compel AWI to assume or
reject the Commercial Agreement;
-- failed to terminate the Commercial Agreement for breach;
-- failed to seek relief form the stay to cancel the
Commercial Agreement without cause;
-- negotiated an extension from the expiration of the
contract on Feb. 15, 2004, until March 31;
-- continued the commercial relationship from
March 31, 2004, until August 27;
-- entered into a new interim contract from Aug. 27, 2005,
until Dec. 31; and
-- continued the commercial relationship after
Dec. 31, 2004.
Mr. Madron points out that Sea-Pac's voluntary withdrawal of the
Original Sea-Pac Claim with prejudice precludes Sea-Pac from now
asserting the portion of the second Sea-Pac Claim, Claim No.
4854, alleging prepetition obligations of AWI under the
Residential Agreement.
As a result, Mr. Madron asserts, Sea-Pac waived any alleged
prepetition breach by AWI of the Residential Agreement and any
related claim, including the US$400,000 prepetition claim Sea-
Pac asserts in the Second Sea-Pac Claim.
About Armstrong
Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- the major operating
subsidiary of Armstrong Holdings, Inc., designs, manufactures
and sells interior floor coverings and ceiling systems, around
the world. The company has operation in Colombia, Costa Rica,
Greece, Iceland and Asia among others.
The company and its affiliates filed for chapter 11 protection
on Dec. 6, 2000 (Bankr. Del. Case No. 00-04469). Stephen
Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell
C.Silberglied, Esq., at Richards, Layton & Finger, P.A.,
represent the Debtors in their restructuring efforts. The
company and its affiliates tapped the Feinberg Group for
analysis, evaluation, and treatment of personal injury asbestos
claims.
Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured
Creditors. The Creditors Committee tapped Houlihan Lokey for
financial and investment advice. The Official Committee of
Asbestos Personal Injury Claimant hired Ashby & Geddes as
counsel.
The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003. The
District Court Judge Robreno confirmed AWI's Modified Plan on
Aug. 14, 2006. The Clerk entered the formal written
confirmation order on Aug. 18, 2006. The company's "Fourth
Amended Plan of Reorganization, as Modified," has become
effective and AWI has emerged from Chapter 11. (Armstrong
Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Oct. 9, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on Armstrong World Industries Inc. to 'BB' from 'D',
following the Company's emergence from bankruptcy on
Oct. 2, 2006. S&P said the outlook is stable.
=======
C U B A
=======
* CUBA: Trade with Venezuela Expected to Reach US$1B Under ALBA
---------------------------------------------------------------
Venezuela and Cuba, both founding members of the Bolivarian
Alternative for the Americas -- a trade bloc that aims to
counter the U.S. Free Trade Agreements, reported US$700 million
in trade exchange in 2006.
For this year, the two countries cooperation is expected to
reach US$1 billion, Cuban Minister of Foreign Investment and
Economic Cooperation Marta Lomas was quoted as saying by AFP
news agency.
The investment minister added that both countries are to
undertake 300 projects this year, and underscored that both
nations are working to organize 15 joint ventures, El Universal
relates.
* * *
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
===================================
JETBLUE AIRWAYS: Hires Russell Chew as Chief Operating Officer
--------------------------------------------------------------
JetBlue Airways Group announced that Russell G. Chew has agreed
to join JetBlue as Chief Operating Officer, effective March 19.
Mr. Chew joins JetBlue after four years with the Federal
Aviation Administration as Chief Operating Officer, and 17 years
with American Airlines as Managing Director of its System
Operations Center.
"We are very pleased to have Russ join our team," said David
Neeleman, JetBlue's Founder and CEO. "Russ brings a wealth of
industry and government experience that will help lead JetBlue
into a new era of customer service, comfort and operational
reliability. Our leadership team is strengthened, and will
better serve JetBlue's 11,000 crewmembers as we continue to grow
our airline."
Mr. Chew will be responsible for the airline's safe and reliable
operations of 550 daily flights to 50 cities in six countries,
leading JetBlue's Airports, Operational Planning, System
Operations Center, Flight Operations, Technical Operations,
Inflight Service, and Safety departments.
"JetBlue truly is a remarkable customer service company, with an
impressive track record of earning customers' loyalty through
friendly service and low fares," Mr. Chew said. "I look forward
to meeting the JetBlue crewmembers who made this success
possible, and serving their needs so that they may continue to
provide the best service to our customers."
Mr. Chew will report to Dave Barger, JetBlue's President. "We
are excited to have Russ join JetBlue's Executive Leadership
team, with his experience managing the system operations center
for the world's largest airline, and also overseeing the world's
most heavily traveled air system as COO of the FAA," Mr. Barger
said. "As our airline grows into new markets, it is even more
important to keep one eye on the future while making sure
today's customers and our crewmembers are well served with
reliable and comfortable flights, the foundation of the JetBlue
Experience."
Mr. Chew served as Chief Operating Officer of the Federal
Aviation Administration from 2003 until February of this year,
after 17 years with American Airlines in a variety of roles of
increasing responsibility, including Managing Director of the
world's largest airline's System Operations Center and Strategic
Operations Planning. A native of Los Angeles, California, Chew
attended Stanford University for his undergraduate studies and
earned his doctoral degree at the University of Southern
California.
Based in Forest Hills, New York, JetBlue Airways Corp.
(Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger
air transportation services primarily in the United States. As
of Feb. 14, 2006, the Company operated approximately 369 daily
flights serving 34 destinations in 15 states, Puerto Rico, the
Dominican Republic, and the Bahamas. The Company also provides
in-flight entertainment systems for commercial aircraft,
including live in-seat satellite television, digital satellite
radio, wireless aircraft data link service, and cabin
surveillance systems and Internet services, through its wholly
owned subsidiary, LiveTV, LLC.
* * *
As reported in the Troubled Company Reporter on Nov. 23, 2006,
Moody's Investors Service assigned ratings of Caa1 (LGD5, 88%)
to the approximately US$40 million of Special Facility Revenue
Bonds, Series 2006 (JetBlue Airways Corporation Project or the
JFK Facility Bonds) to be issued by the New York City Industrial
Development Agency. Moody's affirmed the B2 corporate family
rating for JetBlue Airways Corp. Moody's said the outlook
remains negative.
Standard & Poor's Ratings Services assigned its 'B' rating to
US$40 million of New York City Industrial Development Agency
special facility revenue bonds, series 2006 maturing on
May 15, 2021, and May 15, 2030; the amount for each maturity
have yet to be determined. The bonds, which will be used to
finance a hangar and other facilities, will be serviced by
payments made by JetBlue Airways Corp. (B/Stable/B-3) under a
lease between the airline and the agency.
* DOMINICAN REPUBLIC: Leased State Sugar Mills Collapsed
--------------------------------------------------------
The Dominican Republic's group of state sugar mills rented to
private companies has collapsed due to lack of capital,
Dominican Today reports, citing the Dominican Sugar Institute.
Dominican Today relates that a report presented to the congress
on Feb. 27 indicated that the 2005-2006 sugar milling cycle
produced 490,350 metric tons, which didn't meet the local
consumption nor comply with the export quota to the US
preferential market.
According to Dominican Today, the Barahona mill obtained the
highest output of 48,634 metric tons in the last 18 years.
The 48,634 metric tons produced, plus the 10,374 collected in
the Porvenir mill, which is under the administration of the
State Sugar Council or CEA, totaled about 59,008 metric tons.
This was the only production of CEA's rented mills during the
2006 campaign, Dominican Today says, citing the report.
The report also showed that the total represents only 12% of the
490,350 metric tons produced in the 2005-2006 sugar milling
cycle, Dominican Today notes.
The Central Romana and the Vicini mills obtained 88% of the
total national sugar output. Central Romana produced 75%, while
Vicini 12.3%, Dominican Today states.
* * *
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.
=============
E C U A D O R
=============
PETROECUADOR: Unit Starts Drilling Block 15's Limoncocha 02 Well
----------------------------------------------------------------
UB-15, the temporary administration unit that operates state-run
oil firm Petroecuador's block 15, said in a statement that it
has started drilling the Limoncocha 02 well.
The drilling works are aimed at raising oil output on block 15
to an average 90,000 barrels per day by the end of 2007, UB-15
Chief Executive Officer Wilson Pastor said in a statement.
Block 15's production will reach its lowest level of 81,000
barrels per day in April. It will then reach 95,000 barrels per
day in December, Business News Americas relates, citing Mr.
Pastor.
Mr. Pastor told BNamericas, "Production will increase to 105,000
barrels per day in 2008 and 110,000 barrels per day in 2009,
thanks to the incorporation of the Quilla, Pacay, Aguajal and
Dumbique fields."
A UB-15 spokesperson said that the first well is being drilled
with the Sinopec 128 tower, one of three drilling towers
contracted by the unit, BNamericas notes.
BNamericas underscores that Sinopec 129, the second drilling
tower, will start drilling the Eden Yuturi field on March 20. A
third tower, belonging to China's Changqing Petroleum
Exploration Bureau or CPEB, will launch operations at the end of
March.
The spokesperson told BNamericas that the Sinopec towers are
under contract for two years, while the CPEB is for one year.
The drilling of the first well was supposed to start in the
first days of March. However, it was delayed due to an incident
that resulted to a worker's death, BNamericas states.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Completes Sale of BA Connect to Flybe
------------------------------------------------------
British Airways plc has completed the sale of the regional
operation of its subsidiary airline BA Connect to Flybe.
As previously disclosed, British Airways has already taken a
charge with respect to the sale. This will be increased by
around GBP20 million as a result of losses incurred by BA
Connect to Feb. 28.
As reported in the TCR-Europe on Nov. 7, 2006, British Airways
will have a 15 percent investment in Flybe on completion of the
disposal.
A policy has been issued for customers affected by BA Connect
services cancelled as a result of the sale.
These changes are planned as part of the sale of BA Connect to
Flybe and involve routes and services, which will be cancelled
post-acquisition.
All passengers will be offered alternative flights with Flybe or
British Airways mainline to minimize inconvenience, or offered
the choice of a full refund.
All of the routes being cancelled are substantial loss makers
for the current BA Connect business. These routes need to be
cancelled to protect the on-going viability of the business.
Post-acquisition, Flybe will become Europe's largest regional
airline, offering 152 routes to 36 European destinations, flying
from more U.K. airports than any other airline and offering
passengers competitive fares and high levels of customer
service.
This policy applies to BA Connect flights which were due to
operate in the period March 4 to March 24 and which have now
been cancelled.
About the Company
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited. BA has offices in India and Guatemala.
* * *
British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.
BRITISH AIRWAYS: Open Skies Deal Favors U.S., Chairman Says
-----------------------------------------------------------
British Airways Plc Chairman Martin Broughton has urged the EU
Transport Council not to sell Europe short but to keep its
sights high and push for a new aviation treaty with the US that
can change the future not cement in the past.
He made his comments in a speech in London on Monday, March 5,
at an industry conference called "Turbulent Times: Regulation,
Security and Profitability in the Airline Industry".
The conference comes after the end of talks between the EU and
the US, which recommended a new draft aviation agreement that
will be considered by the Transport Council later this month.
Mr. Broughton said the draft agreement was based on a US open
skies model which was a template designed to bolster US
interests that offered miniscule concessions dressed up as
significant breakthroughs.
The draft agreement is significantly imbalanced in favor of the
US, and is no different in economic terms to deals previously
rejected by the Transport Council in June 2004 and November
2005.
Far from a step towards truly liberalizing aviation it was more
likely to be a "dead end" that would put back the prospect of a
real breakthrough for many years and set the US model of open
skies in concrete.
"Once the US have achieved their prime negotiating objectives of
achieving an open skies deal, its motivation to liberalize
further will evaporate," he said.
At the heart of the US model are unlimited traffic rights for US
airlines to fly not just between the US and the EU, but onwards
into the EU single market and beyond to the rest of the world.
But access to the US domestic market, the biggest in the world,
remains closed to EU airlines, and the opportunities for them to
fly beyond the US are limited.
What is more, the Fly America program, which reserves US
government and government-funded traffic for US airlines only,
has been maintained. The only concession that the US was able
to make was the derisory one of allowing EU airlines to carry
government traffic on routes with less than 60 passengers a
year.
"In aggregate these crumbs don't come anywhere near balancing up
the inherent imbalance in the open skies model," Mr. Broughton
added.
"The commission is putting its legal obligation to get the US to
recognize the EU single market ahead of the EU's economic
interest.
"BA supports the commission's mandate to negotiate not an open
skies deal but an open aviation area based on the model of the
EU internal aviation market," he said.
The key difference is the issue of relaxing the regulations
surrounding the ownership and control of US airlines. The US
negotiators had ruled this out, however, by refusing to consider
any item that would require the endorsement of Congress.
The negotiators had been left to "creatively scrape the barrel
by including existing US policy on ownership limits and
franchising into the draft agreement".
Implicit in the Commission's mandate is the freedom to offer 100
per cent ownership and control of EU airlines to US interests so
long as it is reciprocated. "But only Congress can deliver what
the EU has been mandated to negotiate, so ultimately the
discussions will have to go to Congress, he said.
"Chancellor Merkel of Germany, the current president of the EU,
has recently proposed to President Bush that the EU and the US
should form a transatlantic economic area, a single market in
which the regulatory barriers to the movement of people, goods
and capital across the Atlantic would be minimized.
"A transatlantic open aviation area could represent an important
component of such an agreement. Settling for a US model open
skies deal now would be selling Europe short.
"The German presidency and the rest of the council must not be
satisfied with a bad deal. So my message to the council is to
continue to keep its sights high and push the negotiators to
deliver a deal that can change the future, not cement in the
past," he said.
About the Company
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited. BA has offices in India and Guatemala.
* * *
British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.
===============
H O N D U R A S
===============
* HONDURAS: Cuts Power Supply to 700 Delinquent Businesses
----------------------------------------------------------
National Electric Energy Co., Honduras' state owned power
company, has cut power supply to some businesses and residential
homes that were not current on their bills in a bid from keeping
bankruptcy at bay, the Associated Press reports.
The move, which began Feb. 25, saved the power company
US$300,000 (EUR230,000), AP says, citing Defense Minister
Aristides Mejia. There were about 700 clients who got affected.
Among those with cut services is Management Engineering, a
business owned by ex-presidential candidate Arturo Corrales of
the Democratic Christian party, the defense minister underscored
to AP. He added that the company lacked a meter and was tied
into the public electric system, receiving electricity without
paying for it.
Furthermore, former President Rafael Leonardo Callejas' office
building and hotel, which owed US$20,000 (EUR15,200) in electric
bills dating back five years, were also affected, AP continues.
Government figures show a total of US$20 million of unpaid
electricity bill for the past 15 years, the same report says.
As previously reported, President Manuel Zelaya said in reports
he'd personally run the power company to curb its losses. The
firm barely has 600,000 customers and is unable to meet demand
from 7.5 million citizens. The president blamed tax evasion and
the monthly bills 49% tax that make 10% of the clients avoid
payment, Prensa Latina stated.
Empresa Nacional de Energia Electrica is the national electric
firm of Honduras. The utility firm is undergoing several
reforms aimed at reducing its HNL3 million deficit and lower the
annual loss of almost HNL500 million lempiras due to
insufficient billing.
* * *
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
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AIR JAMAICA: Cricket World Cup Bookings Increasing
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Air Jamaica told Radio Jamaica that bookings for clients flying
into the Caribbean for the 2007 ICC Cricket World Cup are
increasing steadily.
As reported in the Troubled Company Reporter-Latin America on
March 7, 2007, Air Jamaica launched special flights from South
Florida and around the Caribbean region for the Cricket World
Cup. The implementation of the special service was in response
to demand from Caribbean nationals in South Florida.
According to Radio Jamaica, Air Jamaica forged alliances with
regional carriers LIAT and Caribbean Airlines for the transport
of teams and other officials of the tournament.
Richard Lue, Air Jamaica's director of Cricket World Cup and
special events, admitted to Radio Jamaica that the airline's
bookings had been low until the beginning of the warm-up phase
of the tournament.
However, Air Jamaica's bookings are now increasing, RJR News
notes, citing Mr. Lue.
Mr. Lue commented to Radio Jamaica, "We have been getting so
many calls to request tickets for the opening ceremony for the
West Indies and Pakistan game and even now we are still getting
calls for the West Indies versus India game in Trelawny. So we
expect that there will be a lot of West Indians coming to
Jamaica."
Mr. Lue told Radio Jamaica that plans were made to deal with the
increased loads for:
-- the cricket tournament's opening ceremony,
-- the preliminary round games involving the West
Indies, and
-- the semi final match.
"What we have done to facilitate that is that out of Fort
Lauderdale we have rescheduled our flight 38 to leave Fort
Lauderdale at 6:45 in the morning and our flight 39 to leave
Kingston at 7:30 in the night to allow our West Indian fans to
be able to go down and see the game and come back on the same
day so this is just for the March 19 and for the March 23 which
are the West Indies games. Also rescheduled are flights out of
south Florida to facilitate the semi-final in Jamaica on
April 24," Mr. Lue explained to Radio Jamaica.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private in
1994. The Jamaican government does not plan to own Air Jamaica
permanently.
* * *
On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.
DIGICEL LIMITED: Rival Telecom Firm Can't Block Calls
-----------------------------------------------------
Justice Nolan Bereaux of the Port of Spain Sixth Civil Court at
the Hall of Justice issued an order favoring Digicel Ltd. in a
case against the Telecommunications Services of Trinidad and
Tobago.
According to Judge Bereuax's ruling, Digicel's argument that
it's being discriminated by acts of unfair treatment by the
state's telecom comany has merit. Digicel has accused
Telecommunications Services of deliberately blocking its calls
on its cellular network, the Jamaica Observer reports.
The judge ordered the state telecom to allow Digicel calls to
flow freely through its network, to both land and mobile
customers, by repairing its equipment and removing any
restrictions that blocked Digicel's calls, the Observer relates.
Additionally, the judge asked Telecommunications Services to add
circuits to their network to accommodate the increased traffic
to its mobile and land lines and to also allow a Digicel
representative limited access to TSTT's database to search for
evidence to substantiate its claims of sabotage, the Observer
relates.
Meanwhile, the court rejected Digicel's argument that it has an
implied contract with the state telecom regarding
interconnection services. It sides with Telecommunications
Services in its position that in the absence of such an
agreement, rates and technical and other terms required under
the Telecommunications Act, Digicel had no unqualified right to
interconnection with TSTT, the Observer says. The judge added
that despite the absence of an interconnection agreement, TSTT
is still obliged to treat Digicel's calls fairly.
Judge Bereaux granted TSTT's request for a 21-stay before
providing additional circuits.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- Proposed US$1.4 billion senior subordinated notes
due 2015 assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings was stable.
DYOLL Group: Continues to Experience Severe Cash Flow Problems
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Dyoll Group Ltd. said in a filing with the Jamaica Stock
Exchange that it continues to experience severe cash flow
problems since Dec. 15, 2006.
According to Dyoll Group's filing, it has been unable to meet
its financial obligations, which include:
-- payment of its statutory obligations,
-- payment of salaries, and
-- payment of its commercial debt.
Dyoll Group said in the filing that to its monetary problems, it
is not in a position to finalize its Unaudited Financial
Statements for the quarter ended Dec. 31, 2006, and to retain
its auditors to commence the Audited Financial Statements for
the year ended 2006.
With the resignation of three directors in December 2006, the
remaining directors have not had the chance to hold a meeting
due to the problems.
Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business. Jamaica's Financial Services
Commission has assumed temporary management of the Jamaica-based
Dyoll Insurance Co. Ltd. in March 7, 2005, in order to establish
the true position of the Company, address the matter of
settlement to its claimants and ensure that its policies will
remain in force after a high level of insurance claims were
leveled on the company as a result of the hurricane Ivan.
Kenneth Tomlinson was appointed temporary manager. Jamaica's
Supreme Court ordered for the distribution of a US$653 million
fund held by the FSC in accordance with the Insurance Act 2001,
section 59, which says that the prescribed deposit, on the
winding up of an insurance company, should be applied first to
settle the claims of local policyholders.
GOODYEAR TIRE: Unit Reports US$120 Million in Losses Due to Fire
----------------------------------------------------------------
Goodyear Jamaica Ltd., The Goodyear Tire & Rubber Co.'s Jamaican
subsidiary, has lost an estimated US$120 million from the recent
fire at its Spanish Town Road plant, Radio Jamaica reports.
Goodyear Jamaica said in its audited financial statements for
2006 that inventories totaling US$120 million and office
equipment that cost US$250,000 were lost in the fire.
Goodyear Jamaica told Radio Jamaica that the inventories and
office equipment were insured through Goodyear Tire's Global
Insurance Policy.
Goodyear Jamaica's revenue increased by US$122 million to US$1.3
billion in 2006, from 2005. However, a 20% boost in the cost of
sales brought down its profit to US$25.2 million in 2006,
compared to US$73 million in 2005, Radio Jamaica states.
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear Tire has marketing operations in almost
every country around the world including Chile, Colombia,
Guatemala, Jamaica and Peru in Latin America. Goodyear employs
more than 80,000 people worldwide.
* * *
As reported in the Troubled Company Reporter on Jan. 9, Fitch
Ratings affirmed its ratings on Goodyear Tire & Rubber Co. and
removed them from Rating Watch Negative where they were placed
on Oct. 18, 2006, when the company announced a US$975 million
drawdown of its bank revolver. Fitch affirmed Goodyear's Issuer
Default Rating at B. Fitch said the Rating Outlook is Negative.
NATIONAL COMMERCIAL: Workers Hold Protest on Pay Increase
---------------------------------------------------------
Over 200 porters, nursery and canteen workers of the National
Commercial Bank Jamaica Ltd. have held demonstrations against
the bank, Radio Jamaica reports.
According to Radio Jamaica, the employees, who are represented
by the Bustamante Industrial Trade Union or BITU, blocked the
entrance to the National Commercial's head office on Trafalgar
Road to demand for pay hike and fringe benefits offer.
The workers told Radio Jamaica that they were upset at the
National Commercial's insulting wage offer.
Radio Jamaica underscores that BITU had asked for a 39% raise on
wages. However, the National Commercial offered a 17% increase
over two years.
The National Commercial management made a better offer to other
categories of workers, RJR News relates, citing BITU Senior
Negotiating Officer Clayson Panton. He said that the bank
should do the same for this category.
Mr. Panton commented to Radio Jamaica, "So what we are saying is
that the responses of the management are arrogant. They are
also callous, insensitive and the staff is just expressing their
frustration at the lack of respect being shown to them by the
management of the bank. We will assess what our actions will be
but certainly we are on strike for today. We will update the
media... at the end of this work day."
Radio Jamaica emphasizes that the strikers, the National
Commercial and the Ministry of Labor will be meeting next week.
Meanwhile, Sheree Martin, the National Commercial's Assistant
General Manager in charge of Marketing and Communication, told
the RJR News that the bank has implemented several measures to
guarantee that its operations aren't affected.
"We have made arrangements for there not to be any disruptions
to our services at this time. The Ministry of Labor has
intervened in the matter and we have a meeting set up with them.
Ancillary workers primarily serve our employees at this time so
as far as the nursery is concerned we have asked parents to make
other arrangements for their children, as far as the canteen
resources are concerned we have outsourced that for today and we
have made provisions for our employees will have access to lunch
facilities and the driver services will also be handled by our
individual units," Radio Jamaica states, citing Ms. Martin.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd. S&P said the outlook is stable.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2006, Fitch initiated rating coverage on Jamaica's
National Commercial Bank Jamaica, Ltd., by assigning 'B+'
ratings on the bank's long-term foreign currency. Other ratings
assigned by Fitch include:
-- Long-term local currency 'B+';
-- Short-term foreign currency 'B';
-- Short-term local currency 'B';
-- Individual 'D';
-- Support '4'.
Fitch said the ratings had a stable rating outlook.
NATIONAL WATER: Implementing More Strict Measures to Save Water
---------------------------------------------------------------
Jamaica's National Water Commission told Radio Jamaica that it
is implementing more strict measures to conserve water during
the "extended dry spell."
Service to customers served by the Hermitage/Constant Spring
Water Supply System will be disrupted between 8:00 p.m. and 4:00
a.m., Radio Jamaica says, citing the National Water. Clients in
at least 20 corporate area communities will have no piped water
or low water pressure during the period of restriction.
Hughenden, Smokey Vale, Half-Way-Tree Road and Barbican
residents are then being encouraged to store water, Radio
Jamaica states.
* * *
As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
SUGAR COMPANY: Gov't Criticized for Slow Divestment Process
-----------------------------------------------------------
The All-Island Jamaica Cane Farmers Association and other
stakeholders have criticized the Jamaican government for the
slow divestment of the Sugar Company of Jamaica's five
factories, Radio Jamaica reports.
The Sugar Company's sugar factories include:
-- Monymusk,
-- Frome,
-- Bernard Lodge,
-- St. Thomas, and
-- Long Pond.
However, Agriculture Minister Roger Clarke told Radio Jamaica
that the government won't be rushed into signing deals with the
interested buyers. The divestment team is proceeding carefully
in conducting the sale to prevent a recurrence of the problems
to the sugar industry in the 1990's.
"What we want to do at this point in time is to make sure that
when we divest, it is done in such a way that the government
doesn't have to go back and buy it back again and incur more
debt," Minister Clarke explained to Radio Jamaica.
Sugar Company of Jamaica registered a net loss of almost
US$1.1 billion for the financial year ended Sept. 30, 2005, 80%
higher than the US$600 million reported in the previous
financial year. Sugar Company blamed its financial
deterioration to the reduction in sugar cane production.
* JAMAICA: Fiscal Discipline Cues S&P to Affirm B Ratings
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' ratings on
Jamaica's long-term and short-term sovereign credit. The
outlook is stable.
According to Standard & Poor's credit analyst Olga Kalinina, the
ratings are supported by the government's ongoing commitment to
fiscal discipline and debt reduction. "This, together with the
favorable external situation in 2006 (both in terms of the
access to the global financial markets and uneventful hurricane
season), helped maintain macroeconomic stability and boost the
growing confidence of domestic businesses and international
investors," she said.
Supported by lower interest rates, rising investment resulted in
higher economic growth. Real GDP grew by an estimated 2.6% in
2006, the best performance over the past decade. At the same
time, strong foreign currency inflows further increased the Bank
of Jamaica's reserves and helped stabilize the local currency.
Average inflation decreased to less than 9% in 2006 (year-end
inflation was below 6%), down from 15% a year ago. This
stability allowed the central bank to ease its monetary policy
and led to a decrease in interest rates that reduced the
government's interest costs to 43% of revenue in fiscal 2006
(ending March 31, 2007), down from 47% one year earlier.
"Standard & Poor's expects continuation of these prudent
macroeconomic policies in 2007, which would build upon last
year's good performance," explained Mrs. Kalinina. "Real GDP
growth is expected to hover at around 3% on the back of strong
investments," she added.
At the same time, the 2006-2007 fiscal deficit is likely to be
worse than that budgeted due to the lower revenue and higher-
than-expected expenditure. The general government deficit is
projected at 6.1% of GDP in fiscal 2006, according to Standard &
Poor's methodology, compared to 5.4% of GDP in fiscal 2005.
This includes the direct government deficit of 4% of GDP, the
central bank's cash losses of 2.5% of GDP, and a Social Security
surplus of 0.4% of GDP. Given these fiscal setbacks, the
government's debt decline (to 131% of GDP in 2006 from 137% in
2005) would be smaller than expected.
"The stable outlook balances recent positive developments in the
real economy and the ongoing commitment to reasonable fiscal and
monetary stances with continuing difficulties in achieving
fiscal targets and sustainably reducing the debt," noted Mrs.
Kalinina. "Should the government be successful in bringing down
the debt more decisively, the upward revision of Jamaica's
ratings will be considered. Conversely, any sign of fiscal
loosening would undermine business confidence, pressure the
Jamaican dollar and domestic interest rates, and ultimately
hinder the debt decline and hard-won macroeconomic stability of
past years," she concluded.
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M E X I C O
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CELLSTAR CORP: Inks Pact with Raul Marcelo Over Proxy Voting
------------------------------------------------------------
CellStar Corporation has entered into an agreement with
Brightstar Corp. and its President and CEO, Raul Marcelo Claure
under the terms of which Mr. Claure has agreed to grant to
CellStar his proxy to vote all of his shares of CellStar common
stock.
On Feb. 2, 2007, Mr. Claure filed a Form 13D with the Securities
and Exchange Commission reporting that he had purchased
1,060,000 shares of CellStar Corporation's stock totaling 5% of
the total shares outstanding. The company intends to use the
proxy granted by Mr. Claure to vote in favor of the proposed
transactions regarding the sale of substantially all of the
Company at its upcoming stockholder meeting on March 28, 2007.
Mr. Claure has also agreed to not buy, or seek to control,
advise or influence any person with respect to CellStar stock.
"Marcelo's willingness to transfer his proxy to the Company
reflects his support of the proposed transactions," said Robert
Kaiser, Chairman of the Board and CEO. "The agreement gives the
Company a 5% vote in favor of the transactions."
Headquartered at Coppell, Texas, CellStar Corp. (OTC Pink
Sheets: CLST) -- http://www.cellstar.com/-- provides logistics
and distribution services to the wireless communications
industry. CellStar Corp. has operations in North America and
Latin America, including Mexico, and distributes handsets,
related accessories and other wireless products from
manufacturers to a network of wireless service providers,
agents, MVNOs, insurance/warranty providers and big box
retailers. CellStar Corp. specializes in logistics solutions,
repair and refurbishment services, and in some of its markets,
provides activation services.
* * *
CellStar Corp.'s 5% Convertible Subordinated Notes due 2002
carry Moody's Investors Service's Ca2 rating.
CINEMARK USA: Commences Tender Offer for 9% Senior Sub. Notes
-------------------------------------------------------------
Cinemark USA Inc. has commenced a cash tender offer for any and
all of its 9% Senior Subordinated Notes due 2013 of which
US$332,250,000 principal amount remains outstanding.
In conjunction with the Tender Offer, the company is also
soliciting consents to adopt proposed amendments to the
indenture under which the Notes were issued that would eliminate
substantially all restrictive covenants and certain event of
default provisions. Any holder who tenders Notes pursuant to
the Offer must also deliver a consent. The Offer is being made
upon the terms and subject to the conditions set forth in the
Offer to Purchase and Consent Solicitation Statement dated
March 6, 2007.
Holders who validly tender their Notes and deliver their
consents at or prior to 12:00 midnight, New York City time, on
March 19, 2007, unless extended, will be eligible to receive the
Total Consideration. 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 a price per US$1,000
principal amount of the Notes that will be determined by pricing
the Notes using standard market practice to the first call date
at a fixed spread of 50 basis points over the bid-side yield on
the 4-5/8% U.S. Treasury Notes due Feb. 29, 2008, determined as
of 2:00 p.m., New York City time, on the Price Determination
Date. The Total Consideration for each Note so tendered
includes a consent payment of US$30.00 for each US$1,000
principal amount.
Holders whose valid tenders are received after 12:00 midnight,
New York City time, on the Consent Date, but at or prior to
12:00 midnight, New York City time, on April 2, 2007, will
receive the Tender Offer Consideration but will not receive the
Consent Payment. The "Tender Offer Consideration" is the Total
Consideration less the Consent Payment.
Holders of Notes who validly tender and do not validly withdraw
their Notes in the Offer will also receive accrued and unpaid
interest from the last interest payment date to, but not
including, the applicable settlement date, payable on the
applicable settlement date.
The company's obligation to accept for purchase and to pay for
the Notes validly tendered and consents validly delivered, and
not validly withdrawn, pursuant to the Offer is subject to and
conditioned upon the satisfaction of or, where applicable, the
company's waiver of, certain conditions including:
(1) the tender of at least a majority in principal amount of
the outstanding Notes at or prior to the Consent Date
(and, thereby, obtaining the requisite consents for the
proposed amendments to the underlying indenture),
(2) the execution and delivery of an amendment and waiver to
the company's credit facility by each of the lenders
on terms and conditions satisfactory to the company and
(3) certain other general conditions, each as described in
more detail in the Offer to Purchase.
Holders who desire to tender their Notes must consent to the
proposed amendments, and holders may not deliver consents
without tendering the related Notes. Holders may not revoke
consents without withdrawing the Notes tendered pursuant to the
Tender Offer.
The company has retained Lehman Brothers Inc. to serve as sole
Dealer Manager and Solicitation Agent and D.F. King & Co., Inc.
to serve as Information Agent and Tender Agent for the Offer.
Requests for documents may be directed to
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, NY 10005
Telephone (888) 628-8208 (toll free) or
(212) 269-5550 (collect)
Questions regarding the terms of the Offer should be directed to
Lehman Brothers Inc. at (800) 438-3242 (toll free) or (212) 528-
7581 (collect), attention: Liability Management Group.
Cinemark Inc. -- http://www.cinemark.com/-- operates 202
theatres and 2,469 screens in 34 states in the United States and
operates 112 theatres and 932 screens internationally in 13
countries, mainly Mexico, South and Central America. Cinemark
was founded in 1987 by its Chief Executive Officer and Chairman
of the Board, Lee Roy Mitchell. In 2004 a controlling interest
in Cinemark was sold to Madison Dearborn Capital Partners.
Cinemark was among the first theatre exhibitors to offer
advanced real-time Internet ticketing at its own website.
CINEMARK USA: Tender Offer Cues Moody's to Review Ratings
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Moody's Investors Service placed Cinemark USA Inc.'s bank rating
on review for possible downgrade following the announced tender
offer by Cinemark USA for its 9% Senior Subordinated Notes. In
accordance with Moody's Loss Given Default Methodology, the
elimination of the junior capital currently provided by the 9%
Senior Subordinated Notes would lead to a one notch downgrade of
the bank debt if all the notes are repaid. Moody's also
affirmed the B1 corporate family rating and positive outlook for
Cinemark, Inc. -- parent company of Cinemark USA. Moody's
changed the outlook for Cinemark, Inc. to positive on Feb. 2.
Cinemark, Inc.
-- B1 Corporate Family Rating Affirmed
-- Positive Outlook
Cinemark USA, Inc.
-- Senior Secured Bank Credit Facility, Placed on Review
for Possible Downgrade, currently Ba2
-- Outlook, Changed To Rating Under Review From Positive
Cinemark Inc. -- http://www.cinemark.com/-- operates 202
theatres and 2,469 screens in 34 states in the United States and
operates 112 theatres and 932 screens internationally in 13
countries, mainly Mexico, South and Central America. Cinemark
was founded in 1987 by its Chief Executive Officer and Chairman
of the Board, Lee Roy Mitchell. In 2004 a controlling interest
in Cinemark was sold to Madison Dearborn Capital Partners.
Cinemark was among the first theatre exhibitors to offer
advanced real-time Internet ticketing at its own website.
CONSOLIDATED CONTAINER: Moody's Lifts Corp. Family Rating to B2
---------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating
of Consolidated Container Company LLC to B2. Concurrently,
Moody's assigned a B1 rating to the US$390 million PP&E term
loan facility and a Caa1 rating to the US$250 million second
lien term loan facility of Consolidated Container. The ratings
outlook was affirmed at stable.
On March 5, 2007, Consolidated Container announced the issuance
of a US$740 million credit facility which consists of a US$390
million PP&E term loan facility, a US$250 million second lien
term loan facility and a US$100 million asset based revolver.
Proceeds are expected to be used to refinance all existing rated
debt, to fund the Whitmire Container acquisition and cover
tender costs, accrued interest and related fees and expenses.
The new asset-based revolver will not be rated by Moody's.
The upgrade of the corporate family rating to B2 reflects
Consolidated Container's demonstrated ability to generate free
cash flow and repay debt over the last few quarters. The
company has successfully generated EBITDA improvements through
cost reductions and the successful integration of tuck-in
acquisitions. The upgrade also acknowledges the new debt
structure, which extends maturities until 2014 and enhances
liquidity. Consolidated Container's national footprint, diverse
and stable end markets and long standing customer relationships
with large, brand name companies also support the ratings and
outlook. The rating is constrained by a largely commoditized
product line, a decline in volumes over the last few years,
customer concentration, and uncertainty, surrounding expiring
contracts of top customers in the near term.
Moody's took these rating actions:
-- Assigned US$390 million PP&E term loan facility due 2014,
rated B1 (LGD 3, 38%)
-- Assigned US$250 million second lien term loan due 2014,
rated Caa1 (LGD 5, 78%)
-- Withdrew US$45 million senior secured first lien revolver
due 2008, rated Ba3 (LGD 2, 18%)
-- Withdrew US$216.2 million senior secured first lien term
loan due 2008, rated Ba3 (LGD 2, 18%)
-- Affirmed US$182 million 10.75% senior secured second lien
discount PIK notes due 2009, rated B3 (LGD 4, 53%)
-- Affirmed US$185 million 10.125% senior subordinated notes
due 2009, rated Caa2 (LGD 5, 85%)
The US$182 million 10.75% senior secured second lien discount
PIK notes due 2009 and the US$185 million 10.125% senior
subordinated notes due 2009 will be withdrawn at the close of
the tender offer.
-- Upgraded corporate family rating, to B2 from B3
-- Upgraded probability of default rating, to B2 from B3
The ratings are subject to the finalization and review of the
credit agreements.
The rating outlook is affirmed at stable.
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.
DAIMLERCHRYSLER: Offers US$100,000 Buyouts to Shed 13,000 Jobs
--------------------------------------------------------------
DaimlerChrysler AG's Chrysler Group will offer as much as
US$100,000 to some of its 49,600 hourly workers at 11 U.S.
plants to leave the company as part of its recovery plan, the
Associated Press relates.
Published reports claim that the company intends to eliminate
11,000 hourly positions and 2,000 salaried jobs in an effort to
return to profitability following its US$1.475 billion loss in
2006.
As reported in the TCR-Europe on March 1, Chrysler and the
United Auto Workers agreed to two special programs that will
provide retirement and separation incentives for the company's
bargaining-unit employees in the United States as part of the
Chrysler Group's Recovery and Transformation Plan.
The negotiated programs include an Incentive Program for
Retirement with US$70,000 cash lump-sum amount for employees
with 30 or more years of credited service, or who meet a
combination of age and years-of-service eligibility, and an
Enhanced Voluntary Termination of Employment Program, which
provides a lump sum payment of US$100,000 for employees with at
least one year of credited service.
Chrysler wants to slash production by 400,000 vehicles per year
and plans to offer the buyouts to workers in select plants in
the U.S. and Canada, including one slated for closure in Newark,
Delaware, the Associated Press states.
About DaimlerChrysler
Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
DAIMLERCHRYSLER AG: Zetsche Confirms Proposed SUV Deal with GM
--------------------------------------------------------------
DaimlerChrysler AG Chief Executive Officer Dieter Zetsche
confirmed his company is talking to General Motors Corp. about
sharing the costs of future sport-utility vehicles, but he and
GM's CEO stayed mum about whether GM could try to buy its
Chrysler arm outright, Stephen Power and Neal E. Boudette of the
Wall Street Journal report.
According to the source, Mr. Zetsche reiterated that the auto
maker is considering "all options" for Chrysler, including a
possible sale, which move came amid rising investor frustration
over the division's losses.
Possible buyers that have expressed interest in Chrysler include
auto-parts maker Magna International Inc. and private-equity
groups Blackstone Group LP and Cerberus Partners LP, the Journal
said citing people familiar with the matter.
Sources said early this week that Blackstone Group topped in its
bid to buy DaimlerChrysler's Chrysler Group. The private equity
firm, the reports said, is moving forward with a detailed
analysis of Chrysler's finances and operations with an eye
toward making a formal bid.
Lower February Sales
As reported in the Troubled Company Reporter on Mar. 2, 2007,
DaimlerChrysler AG's Chrysler Group reported sales for February
2007 of 174,506 units; down 8% compared with February 2006 with
190,367 units. All sales figures are reported unadjusted.
"In a generally soft market environment in February, the
Chrysler Group had good traffic and solid customer interest
especially for our newly launched, fuel efficient models like
the Dodge Avenger, Dodge Caliber, and Jeep(R) Compass. Also,
the Jeep Wrangler had its best February ever," Chrysler Group
Vice President for Sales and Field Operations Steven Landry
said.
About DaimlerChrysler
Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company's worldwide locations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.
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.
DELTA AIR: Wants Until June 1 To Solicit Plan Acceptances
---------------------------------------------------------
Delta Air Lines, Inc., and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Southern District of New York to
further extend, pursuant to Section 1121(d) of the Bankruptcy
Code, their exclusive period during which they may solicit
acceptances of their reorganization, and no competing plans may
be filed, from April 16, 2007, to June 1, 2007.
The Debtors seek to allow sufficient time to solicit acceptances
of their Joint Plan of Reorganization through the Court-approved
solicitation process, and thereafter, confirmation of the Plan.
The confirmation hearing is currently scheduled for
April 25, 2007.
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, in New
York, relates that since the most recent extension of the
Debtors' Exclusive Solicitation Period, the Debtors have made
and continue to make substantial progress in their Chapter 11
cases, including the Court's approval of the disclosure
statement to their Plan and the distribution of solicitation
packages to creditors.
The Official Committee of Unsecured Creditors supported the
Debtors' request for an extension.
Mr. Huebner contends that ample cause exists to extend the
Debtors' Exclusive Solicitation Period:
(a) the Debtors' Chapter 11 cases are large and complex;
(b) the Debtors need more time to solicit acceptances of a
consensual plan of reorganization;
(c) the Debtors have made good faith progress toward
reorganization;
(d) the Debtors have been paying their postpetition debts
when due;
(e) the Debtors have demonstrated reasonable prospects for
filing a viable plan of reorganization and have made
progress in negotiating with their creditors;
(g) the Debtors' Chapter 11 cases have been pending for a
relatively short period compared to other large
reorganization cases;
(h) the Debtors' motive in requesting the extension is not to
pressure the creditors;
(i) an extension of the Debtors' exclusive period will enable
the Debtors to resolve certain contingencies that will
affect a plan of reorganization; and
(j) the requested extension is consistent with those granted
in other large chapter 11 cases.
Headquartered in Atlanta, Georgia, Delta Air Lines (OTC: DALRQ)
-- http://www.delta.com/-- is the world's second-largest
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners. The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors. As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities. (Delta Air Lines
Bankruptcy News, Issue No. 64; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
Plan Update
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the adequacy
of the Debtors' disclosure statement. The hearing to consider
confirmation the Debtors' plan is scheduled on April 25, 2007.
DELTA AIR: Wants More Time to Decide on 400 Unexpired Leases
------------------------------------------------------------
Delta Air Lines, Inc., and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Southern District of New York, pursuant
to Section 365(d)(4) of the Bankruptcy Code, to further extend
the time for any Debtor to assume or reject more than 400
unexpired leases of non-residential real property and related
agreements, to the date the Court confirms a plan of
reorganization, without prejudice to their right to seek a
further extension.
The Official Committee of Unsecured Creditors supports the
Debtors' request, Marshall S. Huebner, Esq., at Davis Polk &
Wardwell, in New York, tells the Court.
The Debtors' request falls well within the parameters of Section
365(d)(4) deadline extensions granted by courts in other chapter
11 cases of comparable size and complexity, Mr. Huebner says.
Since the Petition Date, the Debtors have rejected or sought
authority to reject several dozen Leases, and have negotiated
modifications of other Leases, Mr. Huebner relates.
The Debtors will continue to analyze their need for premises
covered by the Leases. The completion of the analysis, however,
requires a further extension of the Section 365(d)(4) Deadline
because a substantial number of the Leases can be properly
evaluated only in the context of the Debtors' exit strategy,
Mr. Huebner avers.
The Debtors' Joint Plan of Reorganization preserves the valuable
and necessary flexibility regarding their Lease decisions by
contemplating that the lists of most unexpired leases to be
assumed or rejected may be amended until the day before the
confirmation hearing, presently scheduled for April 25, 2007.
Mr. Huebner asserts that sufficient cause exists in the instant
case to extend the Section 365(d)(4) Deadline:
(a) the Debtors' Chapter 11 cases are complex and involves a
large number of Leases;
(b) many of the Leases are among the Debtors' most important
assets and are vital to their operations. Thus, it is
imperative to their ability to successfully reorganize
that they and their professionals have sufficient time to
carefully identify and evaluate each of the Leases in the
time remaining before confirmation; and
(c) it is critical that the Debtors retain financial,
operational, network and fleet planning flexibility that
comes from not yet having to decide whether to assume or
reject certain Leases, and the future decisions in those
areas are expected to affect whether to assume or reject
the Leases.
Headquartered in Atlanta, Georgia, Delta Air Lines (OTC: DALRQ)
-- http://www.delta.com/-- is the world's second-largest
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners. The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors. As of June 30, 2005, the
company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities. (Delta Air Lines
Bankruptcy News, Issue No. 64; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
Plan Update
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the adequacy
of the Debtors' disclosure statement. The hearing to consider
confirmation the Debtors' plan is scheduled on April 25, 2007.
FORD MOTOR: Eyes 2007 Profit for European Divisions
---------------------------------------------------
Ford of Europe and Premier Automotive Group, the European
divisions of Ford Motor Co., are expected to report a profit in
2007, after posting a US$455 million pretax profit last year,
Terry Kosdrosky writes for The Wall Street Journal.
According to the Journal, the positive expectation spurred from
a growth in new markets, such as Russia, and a good response to
new products and benefits from past cost-cutting measures.
Ford of Europe head Lewis Booth indicated the two divisions
won't be a drag on pretax profits as its "fundamental business
structure" in the region is improving, WSJ relates.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F)
-- http://www.ford.com/-- manufactures and distributes
automobiles in 200 markets across six continents. With more
than 324,000 employees worldwide, the company's core and
affiliated automotive brands include Aston Martin, Ford, Jaguar,
Land Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.
* * *
As reported on Dec. 11, 2006, Standard & Poor's Ratings Services
affirmed its 'B' bank loan and '2' recovery ratings on Ford
Motor Co. after the company increased the size of its proposed
senior secured credit facilities to between US$17.5 billion and
US$18.5 billion, up from US$15 billion.
As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.
As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.
FORD MOTOR: In Talks with Navistar on Engine Pricing Clash
----------------------------------------------------------
Ford Motor Co. and Navistar International Corp. are in
negotiation to temporarily settle a long-running pricing dispute
over diesel engines Navistar supplies for Ford's heavy-duty F-
Series pickups, Jeff McCracken of The Wall Street Journal
reports.
The negotiation follows the automaker and the engine supplier's
motion Wednesday last week asking Oakland County Circuit Court
Judge John McDonald to delay ruling on the companies' pricing
dispute.
Judge McDonald ordered the two sides to negotiate yesterday and
today, the Journal said.
According to the source, Navistar will for now continue to ship
diesel engines to Ford, which are used in the Ford Super Duty F-
Series pick-up truck line.
The dispute, the report said, goes back over a year, involving a
previous diesel truck engine Navistar built for Ford from 2002
through the end of 2006. It also involves a new engine Navistar
began shipping last month with the launch of the redesigned Ford
F-Series Super Duty pick-up truck.
The F-series pick-up truck is Ford's best-selling and most
profitable line of vehicles, the Journal relates.
Navistar, the Journal says, is the sole supplier of diesel
engines to Ford, producing 225,000 to 300,000 of them a year.
Last week, Ford estimated US$11,182 million in total life-time
costs for restructuring actions.
Of the total US$11,182 million of estimated costs, Ford said
that US$9,982 million has been accrued in 2006 and the balance,
which is primarily related to salaried personnel-reduction
programs, is expected to be accrued in the first quarter of
2007.
The company expects a curtailment gain for other postretirement
employee benefit obligations related to hourly personnel
separations that occur in 2007, which gain the company expects
to record in 2007. Of the estimated costs, those relating to
job bank benefits and personnel-reduction programs also
constitute cash expenditure estimates.
The restructuring cost estimates relate to the automaker's
previously announced commitment to accelerate its restructuring
plan, referred to as Way Forward plan.
The "Way Forward" plan includes closing plants and laying off up
to 45,000 employees.
Ford, which incurred a US$12,613 million net loss on US$160,123
million of total sales and revenues for the year ended
Dec. 31, 2006, said in a regulatory filing with the U.S.
Securities and Exchange Commission that its overall market share
in the United States has declined in each of the past five
years, from 21.1% in 2002 to 17.1% in 2006. The decline in
overall market share primarily reflects a decline in the
company's retail market share, which excludes fleet sales,
during the past five years from 16.3% in 2002 to 11.8% in 2006,
the automaker said.
Ford also reported a US$16.9 billion decrease in its
stockholders' equity at Dec. 31, 2006, which, according to the
company, primarily reflected 2006 net losses and recognition of
previously unamortized changes in the funded status of the
company's defined benefit postretirement plans as required by
the implementation of Statement of Financial Accounting
Standards No. 158, offset partially by foreign currency
translation adjustments.
About Navistar International Corp.
Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp. The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market. The company
also provides truck and diesel engine parts and service sold
under the International brand. A wholly owned subsidiary offers
financing services.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents. With more than 324,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.
* * *
As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.
As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.
As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.
GENERAL MOTORS: Further Delays Filing of Reports Until March 16
---------------------------------------------------------------
General Motors Corp. has pushed back the filing of its Annual
Report on Form 10-K with the U.S. Securities and Exchange
Commission until March 16 after failing to make the March 1
filing deadline.
The delay is due to the issues regarding the accounting for
deferred income tax liabilities and certain hedging activities
under the Statement of Financial Accounting Standards.
GM also intends to report restated results for the years ended
Dec. 31, 2002, to Dec. 31, 2005, and for the first three
quarters of 2006.
"As disclosed in prior [SEC] filings the current estimate of the
cumulative impact of the accounting adjustments under SFAS No.
133 to retained earnings, as of Sept. 30, 2006, is an increase
of approximately US$200 million," the company disclosed in its
SEC filing.
"In addition, GM previously disclosed that retained earnings as
of December 31, 2001 and subsequent periods are understated by a
range of US$450 million to US$600 million due to an
overstatement of deferred tax liabilities. GM currently
estimates that the deferred income tax liability overstatement
is approximately US$1 billion. This impact is partially offset
by an estimated US$500 million adjustment to stockholders'
equity related to taxation of foreign currency translation,
arising primarily prior to 2002, and affects all periods through
the third quarter of 2006. The estimate net effect of such tax
adjustments results in an understatement of stockholders' equity
as of Dec. 31, 2001, and subsequent periods of approximately
US$500 million," the company said.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries, including Mexico, and its vehicles are sold in 200
countries.
* * *
Standard & Poor's Ratings Services, on Dec. 13, 2006, affirmed
its 'B' corporate credit rating and other ratings on General
Motors Corp. and removed them from CreditWatch with negative
implications, where they were placed on March 29, 2006.
On Jan. 29, 2007, S&P said that the company's announcement that
it is restating financial results from 2002 through the third
quarter of 2006 raises new concerns about the integrity of the
company's financial reporting and internal controls, but has no
immediate effect on the ratings on GM, GMAC LLC
(BB+/Developing/B-1), or GMAC unit Residential Capital LLC
(ResCap; BBB/Negative/A-3).
On Nov. 14, 2006, Moody's Investors Service assigned a Ba3,
LGD1, 9% rating to the proposed US$1.5 Billion secured term
loan. The term loan is expected to be secured by a first
priority perfected security interest in all of the US machinery
and equipment, and special tools of GM and Saturn Corporation.
PLASTICON INT'L: Profits Soar to US$3.4 Mil. in 2nd Quarter 2006
----------------------------------------------------------------
Plasticon International Inc. has increased its revenues by
US$3,431,647 for the six months ending June 30, 2006, to
US$3,566,891 from US$135,244 recorded for the six months period
ending June 30, 2005. This is over 2537% increase in revenues,
the company reported in its financial results for the second
quarter ended June 30, 2006.
The company reduced its current liabilities by US$8,972,085
through a reduction of notes payable for the six months period
ending June 30, 2006, as compared to June 30, 2005. The company
has increased their assets by US$1,903,350 for the six months
period ending June 30, 2006, as compared to June 30, 2005. The
company and its wholly owned subsidiaries increased their
finished goods inventory by US$242,126 for the six months period
ending June 30, 2006, as compared to June 30, 2005.
"We are very pleased to provide our shareholders with our
financial statements for the second quarter of 2006. We are
currently working on the third and fourth quarter, as well as,
the year-end financial statements for 2006. It is our goal to
become current in our financial statements in order to up list
to the OTC Bulletin Boards," stated Jim Turek, the company's
chief executive officer and president.
Plasticon International Inc. (PINKSHEETS: PLNI) --
http://www.plasticonintl.com/-- designs, produces, and
distributes high-quality concrete accessories (rebar supports),
informational and directional signage, and plastic lumber, which
are all produced from recycled and recyclable plastics. The
Company's line of plastic concrete accessories has been approved
or accepted in all 50 states and several foreign countries
including Poland, Israel, Canada, Mexico, and Egypt.
As of June 30, 2006, the company had stockholders' equity
deficit of US$214,233 compared to US$6,840,176 of deficit in
Dec. 31, 2005.
=====================
P U E R T O R I C O
=====================
DEVELOPERS DIVERSIFIED: Prices Offering of US600MM Senior Notes
---------------------------------------------------------------
Developers Diversified Realty Corporation has priced its
offering of US$600 million aggregate principal amount of
convertible senior unsecured notes due 2012 and will repurchase
US$117.0 million of its common shares.
The notes will pay interest semiannually at a rate of 3.00% per
annum and mature on March 15, 2012. The notes will have an
initial conversion rate of approximately 13.3783 common shares
per US$1,000 principal amount of the notes, representing a
conversion price of approximately US$74.75 per common share and
a conversion premium of approximately 20.00% based on the last
reported sale price of US$62.29 per common share on
March 7, 2007. The initial conversion rate is subject to
adjustment under certain circumstances. The notes will be
convertible, upon the occurrence of specified events and during
the period beginning on Jan. 15, 2012, and ending on the second
business day prior to the maturity date, into cash up to their
principal amount and Developers Diversified's common shares in
respect of the remainder, if any, of the conversion value in
excess of such principal amount. Closing of the sale of the
notes and repurchase by Developers Diversified of US$117.0
million of its common shares is expected to occur on
March 13, 2007. Net proceeds from this offering are estimated
to be approximately US$587.5 million, after deducting estimated
fees and expenses of approximately US$12.5 million.
Developers Diversified has entered into three capped convertible
note hedge transactions with affiliates of the initial
purchasers of the notes to increase the effective conversion
price of the notes to US$87.21 per common share, which
represents a 40.0% premium based on the March 7, 2007, closing
price of US$62.29 per common share. The net cost of the three
capped convertible note hedge transactions was approximately
US$32.6 million and is recorded in the equity section of
Developers Diversified's balance sheet and therefore not
included in interest expense.
The counterparties have advised Developers Diversified that, in
connection with hedging the three capped convertible note hedge
transactions and simultaneously with the pricing of the notes,
the counterparties or their respective affiliates have purchased
Developers Diversified common shares and/or have entered into
various derivative transactions with respect to Developers
Diversified common shares and that they may continue to do so
shortly after pricing of the notes. These activities could have
had the effect of increasing or preventing a decline in the
price of Developers Diversified common shares concurrently with
or shortly after the pricing of the notes. In addition,
following pricing of the notes in connection with the dynamic
hedging of the capped convertible note hedge transactions, the
counterparties and/or their respective affiliates may enter into
or unwind various derivatives or purchase or sell Developers
Diversified common shares in secondary market transactions,
including during the observation period relating to any
conversion of the notes.
Developers Diversified expects to use the net proceeds from the
offering to repurchase US$117.0 million of its common shares at
a price of US$62.29 per common share, to fund the US$32.6
million cost of the capped convertible note hedge transactions
and to pay off floating rate borrowings, including borrowings
outstanding under various credit facilities.
The notes will be sold through an offering to qualified
institutional buyers in accordance with Rule 144A under the
Securities Act of 1933, as amended.
Based in Beachwood, Ohio, Developers Diversified Realty
Corp. (NYSE: DDR) -- http://www.ddr.com/-- owns or manages
approximately 800 operating and development retail properties in
45 states, plus Puerto Rico and Brazil, comprising approximately
162 million square feet. Developers Diversified is a self-
administered and self-managed real estate investment trust
operating as a fully integrated real estate company, which
develops, leases and manages shopping centers.
The company elected to be treated as a Real Estate Investment
Trust under the Internal Revenue Code of 1986, as amended,
commencing with its taxable year ended Dec. 31, 1993. As a real
estate investment trust, the company must meet a number of
organizational and operational requirements, including a
requirement that the company distribute at least 90% of its
taxable income to its stockholders. As a real estate investment
trust the company generally will not be subject to corporate
level federal income tax on taxable income it distributes to its
stockholders.
* * *
As reported in the Troubled Company Reporter on Oct. 31, 2006,
Fitch Ratings affirmed Developers Diversified Realty
Corporation's BB+ preferred stock rating.
FIRST BANCORP: Settles Securities Lawsuit in P.R. for US$74.25M
---------------------------------------------------------------
First BanCorp reached an agreement in principle to settle all
claims with lead plaintiffs in a shareholder class action
pending in the U.S. District Court for the District of Puerto
Rico.
Under the terms of the settlement, which is subject to notice
being provided to the class and final approval by the U.S.
District Court for the District of Puerto Rico, First BanCorp
will pay the plaintiffs US$74,250,000.
Initially, the company and certain of its officers and directors
and former officer and directors were named as defendants in
five separate securities class actions filed between
Oct. 31, 2005, and Dec. 5, 2005, alleging violations of Sections
10(b) and 20(a) of the U.S. Securities Exchange Act of 1934.
All securities class actions have been consolidated into one
case, "In Re: First BanCorp Securities Litigations" pending
before the U.S. District Court for the District of Puerto Rico.
As previously announced, in anticipation of the settlement,
First BanCorp recorded an accrual of US$74,250,000 in its
financial statements for the year ended Dec. 31, 2005. First
BanCorp had been in discussions, led by a mediator, with the
lead plaintiff regarding a settlement.
"I am pleased with the speed and appropriateness of the
settlement that we reached with the plaintiffs," said Luis
Beauchamp, president and chief executive officer of First
BanCorp. "[It] is another significant step in our efforts to
fully address our pending legal and regulatory matters, and we
look forward to continuing to build a leading banking franchise
for our customers, shareholders and employees."
Financial Reporting
First BanCorp plans to file its annual report on Form 10-K for
the fiscal year ended Dec. 31, 2006 in the summer of 2007. As
soon as practicable thereafter, First BanCorp expects to file
with the U.S. Securities and Exchange Commission the financial
information required for its fiscal quarters ended
March 31, 2005, June 30, 2005, Sept. 30, 2005, March 31, 2006,
June 30, 2006, Sept. 30, 2006 and the corresponding quarters for
2007.
The suit is "In Re: First BanCorp Securities Litigations, Case
No. 3:05-cv-02148-GAG," filed in the U.S. District Court for the
District of Puerto Rico under Judge Gustavo A. Gelpi.
Representing the plaintiffs are:
(1) Charles S. Hey-Maestre of De Jesus, Hey & Vargas Law
Office, 1060 Borinquena St., Santa Rita Bldg., Suite C-
8, San Juan, PR 00925, Phone: 787-758-8950, Fax: 787-
758-8911, E-mail: fedcases@djhv-derechopr.com;
(2) Glenn Carl James-Hernandez of James Law Offices, PMB
501, 1353 Rd. 19, Guaynabo, PR 00966-2700, Phone: 787-
763-2888, Fax: 787-763-2881, E-mail:
jameslawoffices@centennialpr.net;
(3) Andres W. Lopez of Andres W. Lopez Law Office, 207 Del
Parque St., Third Floor, San Juan, PR 00912, Phone:
787-406-9075, Fax: 787-641-4544, E-mail:
andreswlopez@yahoo.com; and
(4) PHV Kevin McGee of Zwerling, Schachter & Swerling, LLP,
595 South Federal Highway, Suite 600, Boca Raton, FL
33432, US, Phone: 561-544-2500, Fax: 561-544-2501, E-
mail: kmcgee@zsz.com.
Representing the defendants are:
(i) PHV Joseph S. Allerhand of Weil, Gotshal & Manges, 767
Fifth Avenue, New York, NY 10153, US, Phone: (212) 310-
8945, Fax: (212) 310-8007, E-mail:
joseph.allerhand@weil.com; and
(ii) Eyck O. Lugo-Rivera of Martinez Odell & Calabria, P.O.
Box 190998, San Juan, PR 00919-0998, Phone: 787-274-
2903, Fax: 787-764-5664, E-mail: elugo@mocpr.com.
First BanCorp (NYSE: FBP) -- http://www.firstbankpr.com/-- is
the parent corporation of FirstBank Puerto Rico, a state
chartered commercial bank with operations in Puerto Rico, the
Virgin Islands and Florida; of FirstBank Insurance Agency; and
of Ponce General Corporation. First BanCorp, FirstBank Puerto
Rico and FirstBank Florida, formerly UniBank, the thrift
subsidiary of Ponce General, all operate within U.S. banking
laws and regulations.
* * *
As reported in the Troubled Company Reporter on March 22, 2006,
Fitch Ratings affirmed the ratings and Outlook for First Bancorp
and FirstBank Puerto Rico: long-term Issuer Default Rating
'BB'/short-term 'B'. Fitch said the rating outlook remains
negative.
As reported on June 30, 2006, Moody's Investors Service
confirmed the ratings of FirstBank Puerto Rico at Ba1 for
deposits. The bank's D+ rating for financial strength was also
confirmed. Moody's placed the ratings' outlook at negative.
=============
U R U G U A Y
=============
INTERPUBLIC GROUP: Posts US$31.7 Million Net Loss in FY 2006
------------------------------------------------------------
The Interpublic Group of Cos., Inc., reported total revenues of
US$6.19 billion for the year ended Dec. 31, 2006, down from
total revenues of US$6.27 billion in 2005.
For the year ended Dec. 31, 2006, the company incurred a net
loss of US$31.7 million compared to a US$262.9 million net loss
in 2005.
The company's balance sheet as of Dec. 31, 2006, showed total
assets of US$11.86 billion, total liabilities of US$9.92
billion, and US$1.94 billion in stockholders' equity.
As of Dec. 31, 2006, cash and cash equivalents and marketable
securities were US$1.95 billion, versus US$2.07 billion as of
Dec. 31, 2005. The decrease is primarily due to working capital
usage, as well as costs associated with capital markets activity
and capital expenditures, partially offset by improved operating
results.
Material Weaknesses in 2005
Management initiated a comprehensive remediation program, aimed
at remediating the material weaknesses disclosed in the
company's 2005 Annual Report on Form 10-K by Dec. 31, 2007.
Cross-functional teams were established to focus on the material
weaknesses. During 2006, the company combined multiple agency
controller organizations by region, except in North America,
into a central unit. These actions and specific changes in
internal control over financial reporting resulted in the
remediation of certain material weaknesses during the fourth
quarter of 2006.
The company continues to have remaining material weaknesses
attributable partly to its decentralized structure and the
number of disparate accounting systems of varying quality and
sophistication that it utilizes across the company. It has
developed a work plan with the goal of remediating all of the
identified material weaknesses by the time the company files its
Annual Report on Form 10-K for the year ending Dec. 31, 2007.
A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1ad3
About Interpublic Group of Cos., Inc.
New York-based, Interpublic Group of Companies Inc. (NYSE:IPG)
-- http://www.interpublic.com/-- is one of the world's leading
organizations of advertising agencies and marketing services
companies. The Interpublic Group has over 43,000 employees
working in offices in more than 130 countries around the world,
including Argentina, Brazil, Barbados, Belize, Chile, Colombia,
Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala,
Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Puerto
Rico, Peru, Uruguay and Venezuela.
* * *
As reported in the Troubled Company Reporter on Mar 8, 2007,
Moody's Investors Service changed The Interpublic Group of
Companies, Inc.'s outlook to stable from negative and affirmed
its Ba3 corporate family rating, its Ba3 debt ratings, and its
SGL-1 assessment.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Bond Issue to Ease ForEx Demand
-------------------------------------------------------
Guillermo Parra-Bernal at Bloomberg News reports that state oil
company Petroleos de Venezuela SA's planned US$3.5 billion bond
sale will help the currency in unregulated trading and ease
demand for foreign exchange.
Petroleos de Venezuela is promoting bonds to encourage citizens
to save more and to absorb excess liquidity that is increasing
inflation by 2% per month.
Banking Superintendent Trino Diaz told Bloomberg in an interview
that the bolivar's current exchage rate of 4,000 per dollar
fails to reflect the Venezuelan economy's strength.
"The bond sales will bring some tranquility to the market and
quash currency speculation," Mr. Diaz told Bloomberg. "The
announcement and what seems the imminent sale of the Petroleos
bond will continue easing pressure on the currency in the
parallel market."
According to Bloomberg, the currency climbed 1% on speculation
Petroleos de Venezuela will ask ABN Amro Bank NV and Econoinvest
Casa de Bolsa CA, which are managing the sale, to start taking
bids from domestic investors this week. Additionally, the
Foreign Exchange Administration Commission told the same news
agency authorizations for dollar sales fell 4% to US$3 billion
last month, after January's 40% reduction.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
PETROLEOS DE VENEZUELA: Ministry Awards Two Natural Gas Licenses
----------------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA said
in a statement that the energy and oil ministry has awarded
Petroquiriquire and Petroguarico natural gas licenses.
Business News Americas relates that Repsol YPF controls 60% of
Petroquiriquire while PDVSA Gas, Petroleos de Venezuel's unit,
owns 40%. Teikoku holds 70% of Petroguarico and PDVSA Gas
controls 30%.
Petroquiriquire's license is for 93.2-square-kilometer
Quiriquire Profundo in Monagas, while Petroguarico's license is
for 290-square-kilometer Copa Macoya in Guarico, BNamericas
notes.
According to Petroleos de Venezuela's statement, Quiriquire
Profundo's potential production is expected at 280 million cubic
feet per day. Meanwhile, about 120 million cubic feet per day
of gas is produced in Copa Macoya.
The licenses allowed production from existing reserves and the
search for new reserves in the areas for 20 years.
Petroquiriquire and Petroguarico will pay the Venezuelan
government a 20% base royalty on non-associated natural gas
output, BNamericas states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
PETROLEOS DE VENEZUELA: Offers to Pay Debts with Crude Oil
----------------------------------------------------------
Petroleos de Venezuela SA will pay with crude oil some debts
incurred with partners to the 21 joint ventures resulting from
migration through operational contracts, El Universal reports,
citing Reuters.
El Universal relates that the joint ventures organized in 2006
have received no compensation for lost production since April.
Under Venezuelan laws, the joint ventures are forced to sell
their whole production of crude oil only to the state company
preventing them from placing their output in the market. As a
result, firms including Chevron, Conoco Phillips and ExxonMobil
ruled out the proposal.
According to Analyst Enrique Sira at Cambridge Energy Research
Associates, the deal expressed a lack of cash flow in Petroleos
de Venezuela.
Petroleos de Venezuela's US$10.15 billion of social expenses in
2006 and AES Corporation's shares buyout in La Electricidad de
Caracas could have cleared the company's vault to pay its
partners. The company's Chief Executive Officer Rafael Ramirez
has conceded some payments have been delayed, but he pointed the
problem to bureaucracy, El Universal notes.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
PETROLEOS DE VENEZUELA: To Pay Total, BP for Jusepin Takeover
-------------------------------------------------------------
Petroleos de Venezuela S.A. agreed to compensate Total SA and
British Petroleum, the operators of the Jusepin oilfield, in
exchange for ceeding control of the field to the state.
The move came after President Hugo Chavez declared the
nationalization of the country's hydrocarbons sector effective
April 1, 2006. Under this decree, state oil firm Petroleos de
Venezuela will have majority stakes in 32 operating contracts.
Of the total, seven refused to this scheme and chose to
discontinue operations in the country.
According to the company's head and energy minister Rafael
Ramirez, Petroleos de Venezuela will pay US$250 million to Total
and BP, which will be in the form of oil shipments.
"I appreciate the visit of Christophe De Margerie, CEO of Total.
This gesture shows his willingness and interest in businesses in
Venezuela. This terminates the Jusep¡n chapter. Following a
frank negotiation, there was no need to take this issue to an
international court," Minister Ramirez was quoted by El
Universal as saying.
Mr. De Margerie said: "Today, we are turning a page in a story
that is not ending. All societies face ups and downs, and today
we have to open the door to the future. Neither Total nor BP
will ever forget this beautiful adventure Jusep¡n was. We
believe we have reached a wise agreement and we needed to do so
in order to continue working in good terms."
Meanwhile, the state has also mandated the transfer of majority
control in the four heavy-crude projects in the Orinoco oil
belt. President Chavez has set May 1 as the deadline for the
heavy-crude operators to migrate their operating contracts into
joint ventures with Petroleos de Venezuela.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
WILLBROS GROUP: Incurs US$105.4 Mil. Net Loss in Full Year 2006
---------------------------------------------------------------
Willbros Group Inc. reported its financial results for the
fourth quarter and the full year 2006. On revenue of US$543.3
million, from continuing operations, the net loss for the full
year 2006 was US$22.0 million, an improvement over the loss of
US$30.5 million in 2005. Net loss from discontinued operations
for the full year 2006 was US$83.4 million compared to US$8.3
million in 2005. Total net loss for the full year 2006 was
US$105.4 million compared to a net loss of US$38.8 million in
2005.
Randy Harl, President and Chief Executive Officer, commented,
"While our annual results were disappointing, 2006 was a year of
change and transition for Willbros. We spent much of our time,
effort and resources reducing the risks in our portfolio and
positioning the Company to take advantage of one of the most
robust markets we have seen in years. As a result, in the
fourth quarter of 2006, the revenue from North America and Oman
operations increased 52% compared to the third quarter of 2006
with improved contract margins. An important milestone in 2006
included deciding to sell the Nigerian operations. The Nigerian
sale and recent awards in North America, which exhibit better
terms and conditions and contract margins, resulted in
significantly improving the risk profile of our backlog.
Equally important was implementing more sophisticated business
processes and controls and obtaining the capital and financial
resources necessary to win projects that fit our risk profile.
Our markets in North America, where we are well positioned,
continue to exhibit strength. We are achieving our objective to
reduce general and administrative costs and are continuing to
refine our business processes and controls."
"In summary, we accomplished the goals we established in the
fourth quarter 2006 which are as follows:
* We sold Nigerian operations in February 2007.
* We reduced our G&A to a run rate to 6-8% of revenue going
forward.
* We delivered the revenue and contract margins per our
previous guidance."
Fourth Quarter 2006 Continuing Operations
The company reported revenue from continuing operations of
US$191.1 million in the fourth quarter of 2006 compared to
US$125.5 million in the third quarter of 2006 which represented
a 52% increase quarter over quarter. The increase in revenue
was due primarily to the startup of new projects in the fourth
quarter of 2006, which were delayed from starting in the third
quarter of 2006. Despite heavy rains and flooding at multiple
job sites, contract margin in the fourth quarter 2006 increased
to 11.6% from 9.6% in the third quarter of 2006.
General and Administrative expenses were US$20.2 million, 10.6%
of revenue, for the fourth quarter of 2006. G&A expenses
included severance charges of US$5.0 million related to
executive management changes. With the reductions made during
the fourth quarter of 2006, the Company expects its G&A expense
as a percentage of revenue to be in line with guidance of 6-8%
beginning in 2007.
The net loss from continuing operations from the fourth quarter
of 2006 was US$3.4 million compared to a net loss of US$5.0
million in the third quarter of 2006.
2006 Full Year Continuing Operations
The company reported revenue from continuing operations of
US$543.3 million for the full year 2006 compared to US$294.5
million in 2005, an 84% increase year over year. The increase
in revenue was due to higher levels of activity in engineering,
construction and engineering, procurement and construction
projects primarily in North America. Contract margin for 2006
increased to 9.9%, which was an improvement over 2005 contract
margin of 9.6%. G&A expenses were US$53.4 million, 9.8% of
revenue, in 2006 compared to US$42.4 million, 14.4% of revenue,
in 2005.
2006 Discontinued Operations
Discontinued operations reported an US$83.4 million loss for the
full year of 2006 and US$37.2 million loss for the fourth
quarter of 2006. Losses from discontinued operations are almost
entirely attributable to our Nigeria operations. The operating
results in Nigeria for 2006 were negatively impacted by:
* schedule delays;
* increasing costs related to labor, equipment, materials,
and security;
* disputes with clients related to change orders; and
* the lack of revenues on certain projects due to force
majeure.
While in the process of selling our Nigerian operations, the
company incurred costs to protect the value of our franchise in
Nigeria by continuing to qualify for future projects and by
maintaining a certain level of workforce.
Willbros Group, Inc. (NYSE:WG) -- http://www.willbros.com/-- is
an independent contractor serving the oil, gas and power
industries, providing engineering and construction, and
facilities development and operations services to industry and
government entities worldwide. The company has been active in
South America since 1939. Its subsidiary, CAMSA, provides
construction services to Venezuela and monitors activities
elsewhere in South America.
Long-Term Debt Waivers
During the period from Nov. 23, 2005, to June 14, 2006, the
Company entered into four additional amendments and waivers to
the 2004 Credit Facility with its syndicated bank group to waive
non-compliance with certain financial and non-financial
covenants. Among other things, the amendments provided that:
(1) certain financial covenants and reporting obligations were
waived and/or modified to reflect the Company's current and
anticipated future operating performance; (2) the ultimate
reduction of the facility to USUS$70,000 for issuance of letter
of credit obligations only; and (3) a requirement for the
Company to maintain a minimum cash balance of USUS$15,000.
* VENEZUELA: Seeks Energy Negotiations with Trinidad & Tobago
-------------------------------------------------------------
Venezuela's President Hugo Chavez has invited Trinidad and
Tobago's Prime Minister Patrick Manning for discussions on
energy security and other issues, Caribbean Net News reports.
Caribbean Net relates that President Chavez and Prime Minister
Manning recently agreed to share the natural gas reserves in the
Platforma Deltana gas field along the border between Venezuela
and Trinidad and Tobago. The field was initially claimed as
Venezuela's property. However, under the new arrangement, 25%
of the estimated reservoir of 10 trillion cubic feet of natural
gas will now be available to Trinidad and Tobago.
Venezuelan Foreign Minister Nicolas Maduro told Caribbean Net
that the two leaders will also likely to discuss some of the
social problems affecting their nations.
A team is coming up with the agenda for the next meeting of
President Chavez and Prime Minister Manning, Caribbean Net says,
citing Minister Maduro.
President Chavez and Prime Minister Manning could hold the talks
in Caracas, Venezuela, on March 20, Caribbean Net 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: Trade with Cuba Expected to Reach US$1B Under ALBA
---------------------------------------------------------------
Venezuela and Cuba, both founding members of the Bolivarian
Alternative for the Americas -- a trade bloc that aims to
counter the U.S. Free Trade Agreements, reported US$700 million
in trade exchange in 2006.
For this year, the two countries cooperation is expected to
reach US$1 billion, Cuban Minister of Foreign Investment and
Economic Cooperation Marta Lomas was quoted by AFP news agency.
The investment minister added that both countries are to
undertake 300 projects this year, and underscored that both
nations are working to organize 15 joint ventures, El Universal
relates.
* * *
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 remained stable.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
March 9, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Forum
Mid-Day Club, Chicago, IL
Contact: http://www.turnaround.org/
March 13, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Association for Corporate Growth AZ Chapter Meeting
Biltmore Hotel, Phoenix, AZ
Contact: http://www.turnaround.org/
March 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
The Great Debate
Sydney, Australia
Contact: http://www.turnaround.org/
March 14-15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Atlanta, GA
Contact: http://www.turnaround.org/
March 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Dinner Event - "Judges Panel"
Athletic Club
Seattle, WA
Contact: http://www.turnaround.org/
March 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
LI Turnaround Management Event
Long Island, NY
Contact: http://www.turnaround.org/
March 15-18, 2007
NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES
NABT Spring Seminar
Ritz-Carlton Buckhead, Atlanta, GA
Contact: http://www.NABT.com/
March 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Martini Madness Cocktail Reception with Geraldine Ferraro
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
March 20, 2007
THOMSON WEST LEGALWORKS
Insurance and Reinsurance Allocation Superbowl
New York, NY
Contact: http://www.westlegalworks.com/
March 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
The Cost of Government with Kevin P. Gaughan
Buffalo Club, Buffalo, NY
Contact: http://www.turnaround.org/
March 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Happy Hour
TBD, St. Louis, MO
Contact: 314-333-3815 or http://www.turnaround.org/
March 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Automotive Conference
Atheneum Hotel, Detroit, MI
Contact: http://www.turnaround.org/
March 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Joint Event with Institute of Management Accountants -
Role of Consultants in the Turnaround Industry
Cherry Creek Holiday Inn, Denver, CO
March 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
The Next Wave of Distressed Businesses: A Panel Discussion
South Florida
Contact: http://www.turnaround.org/
March 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
March 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Toot Your Own Horn - This event is for members only.
Pronto Cena, Newark, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
March 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Reception Co-Sponsored with IWIRC
Hartford Club, Hartford, CT
Contact: 203-265-2048 or http://www.turnaround.org/
March 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA AZ Chapter Meeting
TBA
Contact: http://www.turnaround.org/
March 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Australia Launch
Melbourne Hotel, Perth, WA, Australia
Contact: http://www.turnaround.org/
March 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Lunch Seminar
Kansas City, MO
Contact: http://www.turnaround.org/
March 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
"The Six Keys of Sustained Profitable Growth"
Rodney Page, Senior Partner of Blue Springs Partners
Citrus Club, Orlando, FL
Contact: http://www.turnaround.org/
March 27-31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Spring Conference
Four Seasons
Las Colinas, Dallas, TX
Contact: http://www.turnaround.org/
March 28-31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Four Seasons Las Colinas, Dallas, TX
Contact: http://www.turnaround.org/
March 29-31, 2007
AMERICAN LAW INSTITUTE - AMERICAN BAR ASSOCIATION
Chapter 11 Business Reorganizations
Scottsdale, AZ
Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/
March 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
10th Annual April Fools' Networking Cocktail Reception
University Club, New York, NY
Contact: 646-932-5532 or http://www.turnaround.org/
March 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Zinifex/Pasminco - What a ride?
Ferriers, Melbourne, Australia
Contact: http://www.turnaround.org/
April 5, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Case Study "When Everything Goes Wrong"
University of Florida, Gainesville, FL
Contact: http://www.turnaround.org/
April 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
Pal's Cabin, West Orange, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
April 11-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
ABI Annual Spring Meeting
J.W. Marriott, Washington, DC
Contact: 1-703-739-0800; http://www.abiworld.org/
April 12, 2007
INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING
CONFEDERATION
IWIRC 4th Spring Luncheon and Founders Awards
Washington, DC
Contact: http://www.iwirc.org/
April 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon University Club
Jacksonville, FL
Contact: 561-882-1331 or http://www.turnaround.org/
April 12, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - East
JW Marriott, Washington, DC
Contact: http://www.abiworld.org/
April 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Association for Corporate Growth AZ Chapter Meeting
Biltmore Hotel, Phoenix, AZ
Contact: http://www.turnaround.org/
April 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Joint Breakfast with Association for Corporate Growth
Woodbridge Hilton, Iselin, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Personnel Issues in Bankruptcy
University Club, Portland, OR
Contact: http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast: Program on Fraud and Forensic Investigations
Athletic Club, Denver, CO
Contact: http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
Tyson's Corner Marriott, Vienna, VA
Contact: 215-657-5551 or http://www.turnaround.org/
April 19-20, 2007
BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES
Eighth Annual Conference on Healthcare Transactions
Successful Strategies for Mergers, Acquisitions,
Divestitures, and Restructurings
The Millennium Knickerbocker Hotel - Chicago
Contact: 800-726-2524;
http://renaissanceamerican.com/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Wine Tasting Social
TBA, Long Island, NY
Contact: 631-251-6296 or http://www.turnaround.org/
April 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast meeting with Chapter President, Bruce Sim
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
April 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
"Why Prospects Become Clients"
Mark Fitzgerald, President of Sales Training Institute
Inc
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Jacksonville Zoo Turnaround
University Club, Jacksonville, FL
Contact: http://www.turnaround.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
1st Annual Credit & Bankruptcy Symposium Golf/Spa Outing
Fox Hopyard Golf Club, East Haddam, CT
Contact: 203-265-2048 or http://www.turnaround.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Spa Outing
Mohegan Sun, Uncasville, CT
Contact: 203-265-2048 or http://www.turnaround.org/
April 26-27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
1st Annual Credit & Bankruptcy Symposium
Mohegan Sun, Uncasville, CT
Contact: http://www.turnaround.org/
April 26-28, 2007
ALI-ABA
Fundamentals of Bankruptcy Law
Philadelphia, PA
Contact: http://www.ali-aba.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA AZ Chapter Meeting - Working Effectively with
the Media to Create Publicity for Your Business
TBA
Contact: http://www.turnaround.org/
April 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
13 Week CF Program
Washington University, St. Louis, MO
Contact: http://www.turnaround.org/
April 29 - May 1, 2007
INTERNATIONAL BAR ASSOCIATION
International Insolvency Conference
Zurich, Switzerland
Contact: http://www.ibanet.org/
May 2-4, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Association for Corporate Growth AZ Chapter Meeting
Washington University, AZ
Contact: http://www.turnaround.org/
May 4, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - NYC
Alexander Hamilton US Custom House, SDNY
New York, NY
Contact: http://www.abiworld.org/
May 7, 2007
AMERICAN BANKRUPTCY INSTITUTE
9th Annual New York City Bankruptcy Conference
Millennium Broadway Hotel & Conference Center
New York, NY
Contact: http://www.abiworld.org/
May 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual TMA Atlanta Golf Outing
White Columns, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
May 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Corporate Restructuring Workshop
Cable Center, Denver, CO
Contact: http://www.turnaround.org/
May 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
May 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Bankruptcy Judges Panel
Marriott North, Fort Lauderdale, FL
Contact: http://www.turnaround.org/
May 17-18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
6th Annual Great Lakes Regional Conference
Renaissance Quail Hollow Resort, Painesville, OH
Contact: http://www.turnaround.org/
May 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Enterprise Valuation / Sale of the Distressed Business
Athletic Club, Seattle, WA
Contact: http://www.turnaround.org/
May 18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
13 Week CF Program
Kansas City, MO
Contact: http://www.turnaround.org/
May 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
LI-TMA Annual Golf Outing
TBD, Long Island, NY
Contact: 631-251-6296 or http://www.turnaround.org/
May 24-25, 2007
BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES
Fourth Annual Conference on Distressed Investing Europe
Maximizing Profits in the European Distressed Debt
Market
Le Meridien Piccadilly Hotel - London, UK
Contact: 800-726-2524;
http://renaissanceamerican.com/
May 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA AZ and RMA Joint Meeting
Hotel Valley Ho, Scottsdale, AZ
Contact: http://www.turnaround.org/
May 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Bankruptcy Judges Panel
Citrus Club, Orlando, FL
Contact: http://www.turnaround.org/
May 30-31, 2007
FINANCIAL RESEARCH ASSOCIATES
Distressed Debt
Harvard Club, New York, NY
Contact: http://www.frallc.com/
May 31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Wine Tasting and Casino Night
Mayfair Farms, West Orange, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
May 31 - June 1, 2007
TURNAROUND MANAGEMENT ASSOCIATION
2nd Annual TMA Southeast Regional Conference
Marriott Resort at Grande Dunes
Myrtle Beach, SC
Contact: http://www.turnaround.org/
June 4-7, 2008
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
24th Annual Bankruptcy & Restructuring Conference
JW Marriott Spa and Resort, Las Vegas, NV
Contact: http://http://www.airacira.org/
June 6-8, 2007
TURNAROUND MANAGEMENT ASSOCIATION
5th Annual Mid-Atlantic Regional Symposium
Borgata Hotel Casino & Spa
Atlantic City, NJ
Contact: http://www.turnaround.org/
June 6-9, 2007
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
23rd Annual Bankruptcy & Restructuring Conference
Westin River North, Chicago, IL
Contact: http://www.airacira.org/
June 7-8, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Mealey's Asbestos Bankruptcy Conference
Intercontinental Hotel, Chicago, IL
Contact: http://www.turnaround.org/
June 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Association for Corporate Growth AZ Chapter Meeting
Biltmore Hotel, Phoenix, AZ
Contact: http://www.turnaround.org/
June 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Economic Update at the 1/2 Year Mark
University Club, Portland, OR
Contact: http://www.turnaround.org/
June 14-17, 2007
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort, Traverse City, MI
Contact: 1-703-739-0800; http://www.abiworld.org/
June 21-22, 2007
BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES
Tenth Annual Conference on Corporate Reorganizations
Successful Strategies for Restructuring Troubled
Companies
The Millennium Knickerbocker Hotel - Chicago
Contact: 800-726-2524;
http://renaissanceamerican.com/
June 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Bankruptcy Judges Panel
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
June 28 - July 1, 2007
NORTON INSTITUTES
Norton Bankruptcy Litigation Institute
Jackson Lake Lodge, Jackson Hole, WY
Contact: http://www2.nortoninstitutes.org/
July 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Bankruptcy Judges Panel
University Club, Jacksonville, FL
Contact: http://www.turnaround.org/
July 12-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Marriott, Newport, RI
Contact: 1-703-739-0800; http://www.abiworld.org/
July 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Young Professionals Billiards Night
TBD, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
July 13, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Body of Knowledge - CTP Review Class
Chicago, IL
Contact: http://www.turnaround.org/
July 18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
July 25-28, 2007
AMERICAN BANKRUPTCY INSTITUTE
12th Annual Southeast Bankruptcy Workshop
The Sanctuary, Kiawah Island, SC
Contact: http://www.abiworld.org/
July 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA AZ Chapter Meeting
Contact: http://www.turnaround.org/
July 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual Golf Outing
Raritan Valley Country Club, Bridgewater, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
July 31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Enterprise Florida: Improving Florida's
Business Climate and Helping Florida Companies
Market Overseas
Citrus Club, Orlando, FL
Contact: http://www.turnaround.org/
August 3, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Women's Spa Event
Short Hills Hilton, Livingston, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
August 10, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Body of Knowledge - CTP Review Class
Chicago, IL
Contact: http://www.turnaround.org/
August 9-11, 2007
AMERICAN BANKRUPTCY INSTITUTE
3rd Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, MD
Contact: http://www.abiworld.org/
August 23-26, 2007
NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES
NABT Convention
Drake Hotel, Chicago, IL
Contact: http://www.nabt.com/
August 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual Fishing Trip
Point Pleasant, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
August 28, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Healthcare Panel
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
August 29-30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
3rd Annual Northeast Regional Conference
Gideon Putnam Resort and Spa, Saratoga Springs, NY
Contact: http://www.turnaround.org/
September 6-7, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Complex Financial Restructuring Program
Four Seasons, Las Vegas, NV
Contact: http://www.turnaround.org/
September 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Southwest Bankruptcy Conference
Four Seasons
Las Vegas, NV
Contact: http://www.abiworld.org/
September 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Body of Knowledge - CTP Review Class
Chicago, IL
Contact: http://www.turnaround.org/
September 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Buying and Selling Troubled Companies
Marriott North, Fort Lauderdale, FL
Contact: http://www.turnaround.org/
September 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
September 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Retail Panel
Citrus Club, Orlando, FL
Contact: http://www.turnaround.org/
September 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Joint Educational & Networking Reception
TBD, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
September 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA AZ Chapter Meeting
Contact: http://www.turnaround.org/
September 27-30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
8th Annual Cross Border Business
Restructuring & Turnaround Conference
Contact: http://www.turnaround.org/
October 2, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
TBD, Bridgewater, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
October 9-10, 2007
IWIRC
Orlando, FL
IWIRC Annual Fall Conference
Contact: http://www.iwirc.org/
October 10-13, 2007
NCBJ
81st Annual National Conference of Bankruptcy Judges
Contact: http://www.ncbj.org/
October 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
Contact: 561-882-1331 or http://www.turnaround.org/
October 10-13, 2007
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Orlando, FL
Contact: http://www.ncbj.org/
October 16-19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Copley Place
Boston, MA
Contact: 312-578-6900; http://www.turnaround.org/
October 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Capital Markets Case Study
Contact: http://www.turnaround.org/
October 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA AZ Chapter Meeting
Contact: http://www.turnaround.org/
October 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
Centre Club, Tampa, FL
Contact: 561-882-1331 or http://www.turnaround.org/
October 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Crisis Communications With Employees,Vendors and Media
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
November 1, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
TBD, Hackensack, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
November 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Dinner
South FL
Contact: 561-882-1331 or http://www.turnaround.org/
November 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Portland Holiday Party
University Club, Portland, OR
Contact: 206-223-5495 or http://www.turnaround.org/
November 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Real Estate Panel
Citrus Club, Orlando, FL
Contact: http://www.turnaround.org/
November 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Special Speaker
TBD, NJ
Contact: 908-575-7333 or http://www.turnaround.org/
November 29, 2007
TMA AZ Chapter Meeting
TURNAROUND MANAGEMENT ASSOCIATION
Contact: http://www.turnaround.org/
December 6, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Seattle Holiday Party
Athletic Club, Seattle, WA
Contact: 206-223-5495 or http://www.turnaround.org/
December 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Westin Mission Hills Resort, Rancho Mirage, CA
Contact: 1-703-739-0800; http://www.abiworld.org/
December 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
January 10, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
March 25-29, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Ritz Carlton Grande Lakes, Orlando, FL
Contact: http://www.turnaround.org/
April 3-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
26th Annual Spring Meeting
The Renaissance, Washington, DC
Contact: http://www.abiworld.org/
June 12-14, 2008
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, MI
Contact: http://www.abiworld.org/
July 10-13, 2008
TURNAROUND MANAGEMENT ASSOCIATION
16th Annual Northeast Bankruptcy Conference
Ocean Edge Resort
Brewster, MA
Contact: http://www.turnaround.org/
July 31 - August 2, 2008
AMERICAN BANKRUPTCY INSTITUTE
4th Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, MD
Contact: http://www.abiworld.org/
August 16-19, 2008
AMERICAN BANKRUPTCY INSTITUTE
13th Annual Southeast Bankruptcy Workshop
Ritz-Carlton, Amelia Island, FL
Contact: http://www.abiworld.org/
September 24-27, 2008
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Scottsdale, AZ
Contact: http://www.ncbj.org/
October 28-31, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott New Orleans, LA
Contact: 312-578-6900; http://www.turnaround.org/
December 4-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
20th Annual Winter Leadership Conference
Westin La Paloma Resort & Spa
Tucson, AZ
Contact: http://www.abiworld.org/
May 7-10, 2009
AMERICAN BANKRUPTCY INSTITUTE
27th Annual Spring Meeting
Gaylord National Resort & Convention Center
National Harbor, MD
Contact: http://www.abiworld.org/
September 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
17th Annual Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, NV
Contact: http://www.abiworld.org/
October 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Desert Ridge, Phoenix, AZ
Contact: 312-578-6900; http://www.turnaround.org/
2009 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Las Vegas, NV
Contact: http://www.ncbj.org/
June 21-24, 2009
INSOL
8th International World Congress
TBA
Contact: http://www.insol.org/
October 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, FL
Contact: http://www.turnaround.org/
2010 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
New Orleans, LA
Contact: http://www.ncbj.org/
BEARD AUDIO CONFERENCES
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Real Estate under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changes to Cross-Border Insolvencies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Healthcare Bankruptcy Reforms
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Calpine's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Validating Distressed Security Portfolios: Year-End Price
Validation and Risk Assessment
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Employee Benefits and Executive Compensation under the
New Code
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Dana's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Reverse Mergers-the New IPO?
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Privacy Rights, Protections & Pitfalls in Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
When Tenants File -- A Landlord's BAPCPA Survival Guide
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Clash of the Titans -- Bankruptcy vs. IP Rights
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Market Opportunities
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Homestead Exemptions under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
BAPCPA One Year On: Lessons Learned and Outlook
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Surviving the Digital Deluge: Best Practices in E-
Discovery and Records Management for Bankruptcy
Practitioners and Litigators
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Deepening Insolvency - Widening Controversy: Current
Risks, Latest Decisions Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
KERPs and Bonuses under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Diagnosing Problems in Troubled Companies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Equitable Subordination and Recharacterization
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, Christian Toledo, and Junald Ango, Editors.
Copyright 2076. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *