/raid1/www/Hosts/bankrupt/TCRLA_Public/070315.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
Thursday, March 15, 2007, Vol. 8, Issue 53
Headlines
A R G E N T I N A
CONOSUR SALUD: Trustee Will Verify Proofs of Claim Until May 7
EL PASO: Moody's Raises Corporate Family Rating to Ba3 from B2
ESTUDIO DE COMUNICACION: Claims Verification Is Until May 7
PAMPA LIBRE: Seeks Reorganization Approval in Buenos Aires Court
PANIFICADOS NORTE: Claims Verification Deadline Is May 4
B A R B A D O S
INTERPOOL: Earns US$106.6 Million in Year Ended Dec. 31, 2006
B E R M U D A
REFCO INC: Ch. 7 Trustee Wants Lease-Decision Deadline Extended
REFCO INC: Plan Administrators Want May 11 Removal Period
B O L I V I A
INTERNATIONAL PAPER: Earns US$1.05 Billion in Full Year 2006
* BOLIVIA: Inks Pact with Venezuela to Join Banco del Sur
* BOLIVIA: Won't Pass Contract with Atlas Precious to Congress
B R A Z I L
BANCO NACIONAL: To Restart Foz Project Funding with CPFL Energia
COMPANHIA DE SANEAMENTO: Will Turn Sewage Sludge Into Fertilizer
DURA AUTOMOTIVE: Creditors Must File Proofs of Claim by May 1
DURA AUTOMOTIVE: Wants Lease-Decision Period Extended to May 28
EMI GROUP: Warner Music May Attempt New Takeover Approach
FIDELITY NATIONAL: Names Paul Perez as Chief Compliance Officer
GERDAU AMERISTEEL: Pays Out US$12MM to Conclude Labor Deal Talks
PETROLEO BRASILEIRO: Gov't Inks MOU with US to Promote Biofuels
C A Y M A N I S L A N D S
CASCADA CAPITAL: Sets Last Shareholders Meeting for April 10
COOPERNEFF GLOBAL: Last Shareholders Meeting Is on April 10
DOVE LTD: Proofs of Claim Filing Deadline Is April 10
EASTERN OLYMPIAD: Sets Last Shareholders Meeting for April 10
MAYMIN FUND: Last Shareholders Meeting Is on April 10
MAYMIN MASTER: Will Hold Last Shareholders Meeting on April 10
SANTA HELENA: Will hold Last Shareholders Meeting on April 10
TPC BLOCKER: Will Hold Last Shareholders Meeting on April 10
VHC EUROPEAN: Sets Last Shareholders Meeting for April 10
VHC EUROPEAN: Last Shareholders Meeting Is on April 10
VHC MASTER: Will Hold Last Shareholders Meeting on April 10
VHC RESTRUCTURING: Sets Last Shareholders Meeting for April 10
C H I L E
BELL MICROPRODUCTS: Lenders Waive SEC 10-Q Filing Until May 31
BELL MICROPRODUCTS: Has Until May 22 to Comply with Nasdaq Rules
SHAW GROUP: Unit Secures Huntsman's Geismar Plant Contract
WARNER MUSIC: May Attempt Fresh Takeover Offer for EMI Group
C O L O M B I A
ECOPETROL: Expects First Tranche of Share Sale in Third Quarter
C O S T A R I C A
US AIRWAYS: Moody's Affirms B3 Corporate Family Rating
D O M I N I C A N R E P U B L I C
JETBLUE AIRWAYS: Appoints Robert Clanin to Board of Directors
E C U A D O R
PETROECUADOR: Gets Second Venezuelan Diesel Shipment by April 8
PETROECUADOR: Unit Spots 49 Prospects in Oriente Basin
PETROLEOS DE VENEZUELA: Making Second Diesel Shipment to Ecuador
E L S A L V A D O R
DIGICEL GROUP: Will Invest US$115 Million for Network Expansion
HERBALIFE LTD: Earns US$143 Million in Year Ended Dec. 31, 2006
SPECTRUM BRANDS: S&P Affirms CCC+ Corporate Credit Rating
* EL SALVADOR: Wants Indian Investors to Explore Local Market
G U A T E M A L A
BRITISH AIRWAYS: Franchise Operates Ghost Flights to Keep Slots
J A M A I C A
AIR JAMAICA: Union Defends Airline from IMF's Closure Advice
NATIONAL COMMERCIAL: NCB Insurance to Manage Pension Funds
M E X I C O
AMERICAN AIRLINES: Completes New Turbine Blades with Chromalloy
CONSOLIDATED CONTAINER: Increases Cash Payment for Senior Notes
CONTINENTAL AIRLINES: Moody's Ups Corporate Family Rating to B2
DAIMLERCHRYSLER: CAW Local 1285 Members Vote for New Agreement
DAIMLERCHRYSLER AG: CEO Confirms Proposed SUV Deal with GM
DAIMLERCHRYSLER: Gets Order for Wireless Control from Nighthawk
FORD MOTOR: Aston Martin CEO Vows to Make It World's Number One
FORD MOTOR: Mulls Performance Bonuses to Salaried Workers
GENERAL MOTORS: To Pay US$1 Bil. in Settlement Charges to GMAC
HIPOTECARIA CREDITO: Sells MXN700MM Mortgage Backed Securities
SEMGROUP LP: Files Registration Statement for Public Offering
N I C A R A G U A
PETROLEOS DE VENEZUELA: Sets-Up Generators to Ease Energy Crisis
* NICARAGUA: Venezuela Launches Land Survey for Planned Refinery
P A R A G U A Y
PARMALAT SPA: Paraguay Unit Recalls Milk Amid Mass Poisoning
P E R U
PRIDE INT'L: Reports US$68.9MM Net Income in Qtr. Ended Dec. 31
P U E R T O R I C O
ADVANCED MEDICAL: S&P Affirms BB- Ratings with Stable Outlook
ANGIOTECH: Moody's Lowers Corporate Family Rating to B2 from B1
CENTENNIAL COMM: Completes Unit Sale to Trilogy for US$80 Mil.
HOME PRODUCTS: Panel Hires Giuliani Capital as Financial Advisor
MOTHERS WORK: Will Redeem US$90 Million of 11-1/4% Senior Notes
SPANISH BROADCASTING: Earns US$5.9 Mil. in 2006 Fourth Quarter
T R I N I D A D & T O B A G O
MIRANT CORP: Earns US$1.3 Bil. for Quarter Ended Dec. 31, 2006
U R U G U A Y
HIPOTECARIO DEL URUGUAY: Earns UYU1.61 Billion in 2006
V E N E Z U E L A
PHELPS DODGE: Freeport To Offer US$6B Notes to Fund Phelps Buy
PHELPS DODGE: Fitch Cuts 7.375% Notes' Rating to BB- from BBB
HARVEST NATURAL: Incurs US$8.6MM Net Loss in Qtr. Ended Dec. 31
PETROLEOS DE VENEZUELA: Grants Licenses to Repsol & Teikoku
PETROLEOS DE VENEZUELA: Restarts Catalytic Cracker
* VENEZUELA: Bolivia to Join Banco del Sur
* VENEZUELA: Fitch Comments on Banking Sector Amid Fin'l Surge
* VENEZUELA: Launches Land Survey for Planned Nicaraguan Plant
- - - - -
=================
A R G E N T I N A
=================
CONOSUR SALUD: Trustee Will Verify Proofs of Claim Until May 7
--------------------------------------------------------------
Luis Maria Escobar, the court-appointed trustee for Conosur
Salud S.A.'s bankruptcy proceeding, will verify creditors'
proofs of claim until May 7, 2007.
Under the Argentine bankruptcy law, Mr. Escobar is required to
present the validated claims in court as individual reports.
Court No. 14 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Conosur Salud and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Escobar will also submit a general report that contains an
audit of Conosur Salud's accounting and banking records. The
report submission dates have not been disclosed.
Conosur Salud was forced into bankruptcy at the behest of
Ragolia SRL.
Clerk No. 28 assists the court in the proceeding.
The debtor can be reached at:
Conosur Salud SA
Cerrito 484
Buenos Aires, Argentina
The trustee can be reached at:
Luis Maria Escobar
Viamonte 1646
Buenos Aires, Argentina
EL PASO: Moody's Raises Corporate Family Rating to Ba3 from B2
--------------------------------------------------------------
Moody's Investors Service upgraded the ratings on the debt and
supported obligations of El Paso Corp. (the parent company,
Corporate Family Rating to Ba3 from B2) and its four fully owned
pipeline subsidiaries (El Paso Natural Gas Company, Southern
Natural Gas Company, Tennessee Gas Pipeline Company, Colorado
Interstate Gas Company, all to Baa3 senior unsecured from Ba1).
The ratings of El Paso Exploration & Production Company or E&P
(Ba3 Corporate Family Rating) were confirmed. The rating
outlook is positive for the El Paso family of companies. The
pipelines' Corporate Family and Loss Given Default ratings were
withdrawn as a result of their upgrade to investment grade.
These rating actions end a review for possible upgrade begun on
Feb. 28, 2007, and follow El Paso's announcement of using up to
US$3.3 billion of the ANR Pipeline sale proceeds to retire
parent company debt.
"El Paso is a recovering credit," says Moody's Vice President
Mihoko Manabe. "The pace of recovery could quicken with the
decrease in interest expense that will follow the debt
retirement, if not held back by E&P."
After nearly five years of financial distress and company
restructuring, El Paso returned to profitability in 2006 and
looks capable of sustaining it, now with lower debt, its exit
from non-core businesses substantially complete, and the
elimination of a number of its contingent liabilities.
The retirement of approximately US$3 billion of debt and the
elimination of US$744 million of ANR debt (at year-end 2006)
would reduce almost a quarter of El Paso's consolidated debt and
interest expense, though the company would still be leveraged on
an absolute basis with US$12 billion of debt. Holding all else
equal with EBIT at 2006 levels, EBIT/interest coverage ratios
would improve by about a third from 1.4 times in 2006 to 1.9
times.
The upgrade in El Paso's Ba3 Corporate Family Rating reflects
its progress in decreasing parent-level debt and legacy energy
merchant assets and obligations. The gap between the parent's
and the pipelines' Corporate Family Ratings has narrowed from
four to three notches, the parent's rating more reflecting the
investment-grade credit qualities of pipeline subsidiaries that
make up the majority of El Paso's consolidated cash flow and
enterprise value. The notching of ratings among El Paso and its
pipeline subsidiaries may get closer over time if El Paso
continues to regain financial health and to progress toward
investment-grade status.
Less burdened now by parent debt, the pipelines' ratings are
lifted into investment grade. However, at Baa3 the pipelines
remain rated lower than they would be on a stand-alone basis
because of their ownership by the Ba3-rated El Paso. If the
pipelines were rated on a stand-alone basis, their strong market
positions and solid financial performance would indicate an
average rating of Baa1 according to Moody's rating methodology
for pipelines.
El Paso's ratings (Ba3 Corporate Family Rating and senior
unsecured) remain constrained by the relative operational
weaknesses of E&P and the parent debt's structural subordination
to subsidiary debt, particularly E&P's (exploratin and
production) over US$1 billion of debt (B1 senior unsecured).
E&P's Ba3 Corporate Family Rating benefits from an affiliation
with an improving parent company. On a standalone basis, E&P
would be B1 at best, based on its very high F&D costs and weak
reserve replacement record.
The positive outlook acknowledges the upward momentum in El
Paso's credit quality that could result in further upgrade of
its ratings in the next 12 months if E&P demonstrates sufficient
progress in meeting the company's production volume targets and
improving its cash-on-cash returns as measured by the leveraged
full-cycle ratio.
El Paso's credit facilities were upgraded to Ba1 (LGD 2, 26%)
from Ba3 (LGD 2, 26%) and its senior unsecured debt (medium-term
notes, notes, senior debentures, and senior notes) was upgraded
to Ba3 (LGD 4, 51%) from B2 (LGD 4, 52%). The 4.75 % Trust
Convertible Preferred Securities of El Paso Energy Capital Trust
I were upgraded to B2 (LGD 6, 96%) from Caa1 (LGD 6, 96%). The
senior unsecured debentures of El Paso Tennessee Pipeline Co.
were upgraded to Ba3 (LGD 4, 51%) from B2 (LGD 4, 52%). The
Performance-Linked Trust Securities of El Paso Performance-
Linked Trust were upgraded to Ba3 (LGD 4, 51%) from B2 (LGD 4,
52%).
Upgrades:
Issuer: Colorado Interstate Gas Co.
-- Senior Unsecured Regular Bond/Debenture, Upgraded
to Baa3 from Ba1
Issuer: El Paso CGP Co.
-- Subordinate Regular Bond/Debenture, Upgraded to B2
from Caa1
-- Senior Unsecured Conv./Exch. Bond/Debenture,
Upgraded to Ba3 from B2
-- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3
from B2
Issuer: El Paso Corp.
-- Corporate Family Rating, Upgraded to Ba3 from B2
-- Subordinate Conv./Exch. Bond/Debenture, Upgraded to B2
from Caa1
-- Senior Secured Bank Credit Facility, Upgraded to Ba1
from Ba3
-- Senior Unsecured Conv./Exch. Bond/Debenture,
Upgraded to Ba3 from B2
-- Senior Unsecured Medium-Term Note Program,
Upgraded to a range of 51 - LGD4 to Ba3
from a range of 52 - LGD4 to B2
-- Senior Unsecured Regular Bond/Debenture,
Upgraded to Ba3 from B2
Issuer: El Paso Energy Capital Trust I
-- Preferred Stock Preferred Stock, Upgraded to B2
from Caa1
Issuer: El Paso Natural Gas Co.
-- Senior Unsecured Regular Bond/Debenture, Upgraded
to Baa3 from Ba1
Issuer: El Paso Performance-Linked Trust
-- Senior Unsecured Regular Bond/Debenture, Upgraded
to Ba3 from B2
Issuer: El Paso Tennessee Pipeline Co.
-- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3
from B2
Issuer: Sonat Inc.
-- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3
from B2
Issuer: Southern Natural Gas Co.
-- Senior Unsecured Regular Bond/Debenture, Upgraded to
Baa3 from Ba1
Issuer: Tennessee Gas Pipeline Co.
-- Senior Unsecured Regular Bond/Debenture, Upgraded
to Baa3 from Ba1
Outlook Actions:
Issuer: Colorado Interstate Gas Co.
-- Outlook, Changed To Positive From Rating Under Review
Issuer: El Paso Corp.
-- Outlook, Changed To Positive From Rating Under Review
Issuer: El Paso Energy Capital Trust I
-- Outlook, Changed To Positive From Rating Under Review
Issuer: El Paso Exploration & Production Co.
-- Outlook, Changed To Positive From Rating Under Review
Issuer: El Paso Natural Gas Co.
-- Outlook, Changed To Positive From Rating Under Review
Issuer: El Paso Performance-Linked Trust
-- Outlook, Changed To Positive From Rating Under Review
Issuer: El Paso Tennessee Pipeline Co.
-- Outlook, Changed To Positive From Rating Under Review
Issuer: Southern Natural Gas Co.
-- Outlook, Changed To Positive From Rating Under Review
Issuer: Tennessee Gas Pipeline Co.
-- Outlook, Changed To Positive From Rating Under Review
Confirmations:
Issuer: El Paso Exploration & Production Co.
-- Corporate Family Rating, Confirmed at Ba3
Senior Unsecured Regular Bond/Debenture, Confirmed at B1
Withdrawals:
Issuer: Colorado Interstate Gas Co.
-- Corporate Family Rating, Withdrawn, previously rated Ba1
Issuer: El Paso Natural Gas Co.
-- Corporate Family Rating, Withdrawn, previously rated Ba1
Issuer: Southern Natural Gas Co.
-- Corporate Family Rating, Withdrawn, previously rated Ba1
Issuer: Tennessee Gas Pipeline Co.
-- Corporate Family Rating, Withdrawn, previously rated Ba1
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.
ESTUDIO DE COMUNICACION: Claims Verification Is Until May 7
-----------------------------------------------------------
Reynaldo Alberto Mateo, the court-appointed trustee for Estudio
de Comunicacion SA's bankruptcy proceeding, will verify
creditors' proofs of claim until May 7, 2007.
Under the Argentine bankruptcy law, Mr. Mateo is required to
present the validated claims in court as individual reports.
Court No. 22 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Estudio de Comunicacion and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Mateo will also submit a general report that contains an
audit of Estudio de Comunicacion's accounting and banking
records. The report submission dates have not been disclosed.
Estudio de Comunicacion was forced into bankruptcy at the behest
of Tectoy SRL, which it owes US$68,255.78.
Clerk No. 44 assists the court in the proceeding.
The debtor can be reached at:
Estudio de Comunicacion
Solis 264
Buenos Aires, Argentina
The trustee can be reached at:
Reynaldo Alberto Mateo
Piedras 153
Buenos Aires, Argentina
PAMPA LIBRE: Seeks Reorganization Approval in Buenos Aires Court
----------------------------------------------------------------
Pampa Libre SA has requested for reorganization after failing to
pay its liabilities since August 2005.
The reorganization petition, once approved by the court, will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
The case is pending before Court No. 11 in Buenos Aires. Clerk
of Court No. 21 assists on this case.
The debtor can be reached at:
Pampa Libre SA
Alicia Moreau de Justo 846
Buenos Aires, Argentina
PANIFICADOS NORTE: Claims Verification Deadline Is May 4
--------------------------------------------------------
Roberto Oscar Hermida, the court-appointed trustee for
Panificados Norte SA's bankruptcy proceeding, will verify
creditors' proofs of claim until May 4, 2007.
Under the Argentine bankruptcy law, Mr. Hermida is required to
present the validated claims in court as individual reports.
Court No. 4 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Panificados Norte and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Hermida will also submit a general report that contains an
audit of Panificados Norte's accounting and banking records.
The report submission dates have not been disclosed.
Panificados Norte was forced into bankruptcy at the behest of La
Caja Art SA, which it owes US$1,800.07.
Clerk No. 7 assists the court in the proceeding.
The debtor can be reached at:
Panificados Norte
Fernandez 540
Buenos Aires, Argentina
The trustee can be reached at:
Roberto Oscar Hermida
Tucuman 1668, Planta Baja
Buenos Aires, Argentina
===============
B A R B A D O S
===============
INTERPOOL: Earns US$106.6 Million in Year Ended Dec. 31, 2006
-------------------------------------------------------------
Interpool, Inc., reported that its net income for the year ended
Dec. 31, 2006, was a record US$106.6 million compared with
US$60.5 million of net income for the year ended Dec. 31, 2005.
Net income for 2006 included after-tax gains related to the sale
of a substantial portion of the company's container operating
lease fleet during March 2006, and the sale of the company's
interest in Container Applications International, Inc. during
October 2006. Net income for 2005 included after-tax income
from an adjustment to the fair value of warrants and a gain on
the sale of a non-transportation company in which Interpool held
a minority equity position, as well as income tax expense
associated with the repatriation of off-shore earnings and
profits. The company filed its Annual Report on Form 10-K on
March 9, 2007.
Martin Tuchman, Chairman and Chief Executive Officer, said, "We
are extremely pleased with Interpool's results for 2006. We
continued to build shareholder value through the earnings
generated by the container and Container Applications sales, and
through the significant increase in our dividend. We added a
substantial number of new containers to our portfolio during the
year, and further enhanced our strong position in the chassis
leasing and chassis pool management markets. Our total capital
expenditures during 2006 were US$352.0 million, excluding those
for Container Applications. At the same time, we were able to
maintain strong liquidity and relatively low financial leverage.
I am also tremendously proud of the efforts of all our employees
that have resulted in full remediation of the internal control
weaknesses we had disclosed previously and a clean opinion under
Section 404 of the Sarbanes-Oxley Act. We believe that
Interpool is very well-positioned to take advantage of future
opportunities as they arise."
Interpool also reported that, for the year ended Dec. 31, 2006,
total revenues were US$374.2 million compared to US$416.5
million for the year ended Dec. 31, 2005. The reduction in
revenues was primarily associated with the sale of a substantial
portion of the container operating lease fleet and the sale of
the company's interest in Container Applications, offset in part
by increased revenues from chassis operating leases and
management fees.
Unrestricted cash and cash equivalents totaled US$362.4 million
at Dec. 31, 2006, and Interpool continued to maintain a
conservative debt to equity ratio of approximately 2.6 to 1.0.
As announced previously, on Jan. 16, 2007, Interpool's Board of
Directors received a letter from Martin Tuchman, supported by
other significant Interpool stockholders and an investment fund
affiliated with Fortis Merchant Banking, proposing an
acquisition of all of the company's outstanding common stock
(other than a portion of the shares held by Mr. Tuchman and the
other supporting stockholders) for US$24.00 per share in cash.
In response to this proposal, the company's Board of Directors
formed a Special Committee of independent directors to review
and evaluate the proposal set forth in Mr. Tuchman's letter.
The Special Committee has engaged independent legal counsel and
an independent financial advisor to assist it with its work.
The Special Committee, working with its advisors, is proceeding
to evaluate the proposal available to determine whether or not
the proposal is in the best interests of Interpool's public
stockholders. The Special Committee has instructed its
financial advisor and the company's financial advisor to contact
potentially interested parties. To date, no decisions have been
made by the Special Committee or the Board of Directors with
respect to any response to the proposal. There can be no
assurance that any definitive offer will be made, that any
agreement will be executed or that this or any other transaction
will be approved or consummated.
Interpool, Inc. (NYSE: IPX) is one of the world's leading
lessors of intermodal dry containers, and the largest lessor of
intermodal container chassis in the U.S. The company also has
operations in Barbados.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 19, 2007, Fitch places these ratings on Rating Watch
Negative:
Interpool Inc.
-- Long-term Issuer Default Rating 'BB+';
-- Senior unsecured debt 'BB+'; and
-- Senior secured credit facility 'BBB-'.
Interpool Containers Limited
-- Long-term IDR 'BB+'.
Interpool Capital Trust
-- Preferred stock 'BB-'.
=============
B E R M U D A
=============
REFCO INC: Ch. 7 Trustee Wants Lease-Decision Deadline Extended
---------------------------------------------------------------
Albert Togut, the Chapter 7 Trustee overseeing the liquidation
of Refco LLC's estate, asks the Honorable Robert D. Drain of the
U.S. Bankruptcy Court for the Southern District of New York to
extend the Lease Decision Deadline until May 9, 2007, without
prejudice to the rights of (i) any non-debtor counterparties to
seek an earlier date upon which the Trustee must assume or
reject a specific contract, and (ii) the Trustee to seek a
further extension, if necessary and appropriate.
The Chapter 7 Trustee tells the Court that as of Jan. 16, 2007,
he has completed his evaluation of the Debtor's executory
contracts and contacted various parties to negotiate
modifications to certain terms and conditions of seven remaining
contracts so that they may be assumed.
The Chapter 7 Trustee expects to reach agreements to assume, or
assume as modified, the Remaining Contracts, and is hopeful that
the process can be completed within the next 60 days.
Currently, the Remaining Contracts that have not yet been
assumed or rejected pertain to document and electronic data
storage services that are continuously used in connection with
the administration of the Debtor's estate, Scott E. Ratner,
Esq., at Togut, Segal & Segal LLP, in New York, states. The
Remaining Contracts also relate to documents that may be
required to be maintained and stored under applicable
commodities or other law.
Counterparties to the Remaining Contracts are:
* Archives One, Inc. - New York,
* GRM - Chicago,
* Iron Mountain Information Management, Inc.,
* Iron Mountain Off-Site Data Protection, Inc.,
* Data Impact, also known as Speedscan, Inc.,
* Vanguard Archives, Inc. - Chicago.
Mr. Ratner asserts that the extension is necessary and
appropriate and will assist the Chapter 7 Trustee in maximizing
the value of Refco LLC's estate for the benefit of creditors.
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on Dec. 15, 2006. That Plan became effective on
Dec. 26, 2007. (Refco Bankruptcy News, Issue No. 58; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000)
REFCO INC: Plan Administrators Want May 11 Removal Period
---------------------------------------------------------
RJM, LLC, the duly appointed administrator of Refco, Inc.'s
Chapter 11 case, and Marc S. Kirschner, the duly appointed
administrator and Chapter 11 Trustee of Refco Capital Markets,
Ltd.'s estate, ask the U.S. Bankruptcy Court for the Southern
District of New York to extend until May 11, 2007, the period
within which Refco, Inc., and its debtor-subsidiaries may
file notices of removal with respect to pending actions under
Rule 9027(a)(2) of the Federal Rules of Bankruptcy Procedure.
The Plan Administrators assumed the rights, powers, and duties
of the Reorganized Debtors and RCM upon the Plan Effective Date.
Jared R. Clark, Esq., at Bingham McCutchen LLP, in New York,
relates that as of their bankruptcy filing, the Debtors were
plaintiffs in 37 actions and proceedings in a variety of state
and federal courts throughout the country.
Mr. Clark states that since the Debtors have continued to focus
primarily on winding down their businesses, administering claims
and implementing the Plan, the Debtors have not reviewed all the
Actions to determine whether any of them should be removed.
Mr. Clark asserts that extension of the Removal Period will
afford the Debtors a sufficient opportunity to assess whether
the Actions can and should be removed, hence, protecting the
Debtors' valuable right to adjudicate lawsuits under Section
1452 of the Judiciary and Judicial Procedure Code.
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on Dec. 15, 2006. That Plan became effective on
Dec. 26, 2007. (Refco Bankruptcy News, Issue No. 58; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000)
=============
B O L I V I A
=============
INTERNATIONAL PAPER: Earns US$1.05 Billion in Full Year 2006
------------------------------------------------------------
International Paper Co. reported net earnings of US$1.05 billion
for the year ended Dec. 31, 2006, compared with net earnings of
US$1.10 billion for 2005.
Net sales for 2006 were US$21.9 billion compared to net sales of
US$21.7 billion for 2005.
At Dec. 31, 2006, the company's balance sheet showed total
assets of US$24.03 billion, total liabilities of US$16.07
billion and total shareholders' equity of US$7.96 billion.
Beverage Packaging Sale
In 2006, the company recorded a gain on sale of forestlands of
US$4.78 billion, related to the sales of its Beverage Packaging
business to Carter Holt Harvey Limited for approximately US$500
million, subject to certain adjustments.
The sale of Beverage Packaging subsequently closed on Jan. 31,
with the sale of the remaining non-U.S. operations expected to
close later in the 2007 first quarter.
Lumber Mills Sale
Also during the fourth quarter, the Company entered into
separate agreements for the sale of 13 lumber mills for
approximately US$325 million, expected to close in the first
quarter of 2007, and five wood products plants for approximately
US$237 million, expected to close in the first half of 2007,
both subject to various adjustments at closing.
A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1ad2
About International Paper Co.
Based in Stamford, Connecticut, International Paper Co. (NYSE:
IP) -- http://www.internationalpaper.com/-- is in the forest
products industry for more than 100 years. The company is
currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the US, Europe, South America, and Asia. Its
South American operations include, among others, facilities in
Argentina, Brazil, Bolivia, and Venezuela. These businesses are
complemented by an extensive North American merchant
distribution system. International Paper is committed to
environmental, economic and social sustainability, and has a
long-standing policy of using no wood from endangered forests.
* * *
Moody's Investors Service assigned a Ba1 senior subordinate
rating and Ba2 Preferred Stock rating on International Paper Co.
on Dec. 5, 2005.
* BOLIVIA: Inks Pact with Venezuela to Join Banco del Sur
---------------------------------------------------------
Bolivian government news agency Agencia Boliviana de Informacion
reports that President Evo Morales has signed an accord with
Venezuelan President Hugo Chavez to join regional development
bank Banco del Sur.
As reported in the Troubled Company Reporter-Latin America on
March 7, 2007, Venezuela would create Banco del Sur with
Argentina, to provide financing for regional projects in areas
like infrastructure and human development. Bolivia, Brazil,
Ecuador and Paraguay would join the bank as members.
President Chavez promoted Banco del Sur as a source of cheap
credit for nations and as an alternative to the International
Monetary Fund and World Bank.
President Chavez and Argentine President Nestor Kirchner signed
Feb. 21 an agreement to launch Banco del Sur in four months,
BNamericas states.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
* BOLIVIA: Won't Pass Contract with Atlas Precious to Congress
--------------------------------------------------------------
Bolivian Mining Minister Guillermo Dalence told the local press
that the government won't send state miner Comibol's joint
venture contract with Canadian firm Atlas Precious Metals to
congress for ratification.
The contract was for the revival of the Karachipampa
polymetallic plant, published reports says, citing Minister
Dalence.
Karachipampa is designed to produce lead-silver concentrates
with a small amount of zinc, which is eliminated as oxide and
must be stored as waste. The 51,000 tons per year plant is in
the Potosi department.
Business News Americas relates that Atlas Precious and Combol
signed an agreement in June 2005 to revive the plant and let it
treat silver-lead concentrates. Atlas Precious then asked the
government in February 2007 to send the contract to the congress
for approval.
Luis Botani, Atlas Precious' representative in Bolivia, told
BNamericas that if the contract wouldn't be ratified by the
congress, the company could abandon plans to reactivate the
plant due to uncertainty about the government's mining policy.
However, the contract won't be sent to congress since Atlas
Precious will be processing metals, rather than mining. The
firm then doesn't need legislative authorization. The only
requisite pending for the contract's approval is a resolution
from Comibol's board, which has not yet been issued, BNamericas
states, citing Minister Dalence.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
BANCO NACIONAL: To Restart Foz Project Funding with CPFL Energia
----------------------------------------------------------------
Brazil's power group CPFL Energia Chief Executive Officer Wilson
Ferreira told Business News Americas that the firm will restart
loan negotiations with Banco Nacional de Desenvolvimento
Economico e Social for the construction of the 855-megawatt Foz
do Chapeco hydro project.
Mr. Ferreira told local reporters that CPFL Energia wants to
benefit from new conditions under the Brazilian federal
government's growth acceleration program.
BNamericas underscores that CPFL Energia and project partners
launched funding negotiations with Banco Nacion for the BRL2.2-
billion project before the Brazilian federal government's growth
acceleration program was disclosed in January.
The report says that the program, which includes new Banco
Nacional funding conditions for power generation projects,
extends loan terms to 16 years from 12-14 years.
CPFL Energia could invest 40% in Foz do Chapeco, which will
start operating in 2010, BNamericas states.
About CPFL Energia
CPFL Energia SA is a holding company that, through its
subsidiaries, distributes, generates and sells electricity in
Brazil. The company is also engaged in electricity
commercialization and provides electricity-related services to
its affiliates, as well as unaffiliated parties. The company
holds a direct participation in the distributing companies,
Companhia Paulista de Forca e Luz and Companhia Piratininga de
Forca e Luz; a direct participation in the generation company,
CPFL Geracao de Energia SA and a direct participation in the
commercialization company, CPFL Comercializacao Brasil SA. The
firm also has number of indirect investments in other
electricity generation, distribution and commercialization
companies.
About Banco Nacional
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.
COMPANHIA DE SANEAMENTO: Will Turn Sewage Sludge Into Fertilizer
----------------------------------------------------------------
Published reports say that Companhia de Saneamento Basico do
Estado de Sao Paulo is developing a program to turn "sewage
sludge" into marketable agricultural fertilizer.
Business News Americas relates that under license from the
agriculture ministry, Companhia de Saneamento already donates
treated sludge to farmers and paper and pulp producers in liquid
form.
According to the report, the donations decrease disposal costs
as well as environmental impact.
Compania de Saneamento civil engineer Marcia Nunes told
BNamericas that the firm will dry the treated sludge and make
biosolids in the form of pellets, which can be sold to the
agricultural sector. The dried form of the product is easier to
transport and apply to the earth.
BNamericas underscores that with if the product sells at BRL0.37
per kilogram and results to annual revenues of BRL4 million,
Companhia de Saneamento will recover the BRL14 million it is
investing in the project within 14 years. The first investment
in the project will go towards adapting the Barueri wastewater
treatment plant, Companhia de Saneamento's largest plant of its
kind that treats 310 tons of waste daily.
Companhia de Saneamento's biggest hindrance to the commercial
development of the product has been in securing environmental
licensing from the agriculture ministry and the Sao Paulo state
environment authority. The licenses are yet being negotiated, a
company spokesperson told BNamericas.
Companhia de Saneamento Basico do Estado de Sao Paulo is one of
the largest water and sewage service providers in the world
based on the population served in 2005. It operates water and
sewage systems in Sao Paulo, Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 23, 2006, Standard & Poor's Ratings Services has raised its
Brazilian national-scale corporate credit rating on Companhia de
Saneamento Basico do Estado de Sao Paulo to 'brA+' from 'brA'.
At the same time, it affirmed the company's global-scale ratings
at 'BB-'. S&P said the outlook is stable.
DURA AUTOMOTIVE: Creditors Must File Proofs of Claim by May 1
-------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware establishes May 1, 2007, at 6:00 p.m.
as the deadline for all creditors, including governmental units,
owed money by Dura Automotive Systems Inc. and its debtor-
affiliates on account of claims arising prior to Oct. 30, 2006,
to file their proofs of claim.
Creditors must send an original proof of claim form to:
Kurtzman Carson Consultants LLC
2335 Alaska Ave.
El Segundo, CA 90245
The company can be reached at:
Dura Automotive Systems Inc.
2791 Research Drive
Rochester Hills, MI 48309
Tel: (248) 299-7500
Judge Carey authorizes each of these labor unions to file
against the applicable Debtors a single proof of claim on behalf
of itself and all its represented persons:
(a) the International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America;
(b) National Automobile, Aerospace, Transportation and
General Workers Union of Canada;
(c) International Association of Machinists and Aerospace
Workers;
(d) Universal Employees Union, affiliated with National
Federation of Independent Unions; and
(e) Stockton Employees Independent Union, affiliated with
National Federation of Independent Unions.
The Union-represented persons are not required to file
individual proofs of claim, which were included in the Union's
omnibus claim.
About DURA Automotive Systems Inc.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.
The Debtors' exclusive plan-filing period expires on March 21,
2007. (Dura Automotive Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
DURA AUTOMOTIVE: Wants Lease-Decision Period Extended to May 28
---------------------------------------------------------------
Dura Automotive Systems Inc. and its debtor-affiliates ask the
Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware to extend their time to assume or reject
unexpired leases of nonresidential property through and
including May 28, 2007, pursuant to Section 365(d)(4) of the
Bankruptcy Code.
The Court will convene a hearing on March 21, 2007, at
10:00 a.m., to consider the Debtors' request. By application of
Rule 9006-2 of the Local Rules of Bankruptcy Practice and
Procedures of the United States Bankruptcy Court for the
District of Delaware, the Debtors' lease decision deadline is
automatically extended until the Court rules on the request.
Four months since their bankruptcy filing, the Debtors, together
with their advisors, have been focusing on a series of threshold
operational and legal issues that have required immediate
attention in advance of, and in some cases, concomitant with
developing their business plan, relates Jason M. Madron, Esq.,
at Richards, Layton & Finger, P.A., in Wilmington, Delaware.
The business plan development process is approaching completion
and will allow for meaningful negotiations with customers,
creditors and other constituencies to commence in earnest.
Finishing the business plan and making substantial progress in
the negotiations are necessary predicates for Debtors to
develop, and ultimately file, a realistic proposed Chapter 11
plan of reorganization, Mr. Madron tells the Court.
With assistance from AlixPartners, LLP, the Debtors' bottom-up
operational analysis is nearing completion. Upon completion,
the preliminary business plan will allow the Debtors to identify
where and to what extent they should maintain their
manufacturing footprint in North America. Only then will the
Debtors be able to properly assess which of the approximately
eleven real Property Leases they wish to exit or maintain, Mr.
Madron states.
Mr. Madron informs the Court that the Debtors have not yet
completed their analysis of the individual real property Leases
to determine whether efficiencies can be generated in connection
with their operational restructuring initiatives.
The requested time extension will enable the Debtors to continue
the process of restructuring their business operations in an
orderly manner, including the potential assumption or rejection
of certain Real Property Leases. The extension will also afford
the Debtors the ability to determine if there are any cost-
saving opportunities that would enable the Debtors to increase
overall operational efficiency, thus resulting in an increase of
the Debtors' overall profitability, Mr. Madron asserts.
The requested extension will not prejudice the lessors,
Mr. Madron notes. However, failure to grant the extension will
significantly prejudice the Debtors and their estates because
the Debtors will not be able to maximize the profitability of
their business operations or the value of their estates, he
points out.
About DURA Automotive Systems Inc.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.
The Debtors' exclusive plan-filing period expires on March 21,
2007. (Dura Automotive Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
EMI GROUP: Warner Music May Attempt New Takeover Approach
---------------------------------------------------------
Warner Music Group CEO Edgar Bronfman Junior is prepared to draw
a fresh takeover bid for EMI Group Plc, on condition that EMI
will consider a revised offer, reports say.
EMI rejected Warner's GBP2.1 billion non-binding takeover bid on
March 2, saying that the price of 260 pence per share in cash
for EMI is inadequate.
Warner approached EMI on Jan. 24, after it obtained the support
of Brussels-based Impala, a trade group for independent European
record labels ending its opposition to a Warner-EMI merger.
Warner clarified Feb. 21, 2007, that any possible takeover offer
for EMI is likely to be solely in cash.
Analysts believed that an EMI-Warner merger could generate cost
savings of about GBP150 million a year.
EMI issued two profit warnings since January 2007.
About Warner Music Group
Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/--
became the only stand-alone music company to be publicly traded
in the United States in May 2005 that operates through numerous
international affiliates and licensees in more than 50
countries. Warner Music is home to a collection of record
labels in the music industry including Asylum, Atlantic, Bad
Boy, Cordless, East West, Elektra, Lava, Maverick, Nonesuch,
Reprise, Rhino, Rykodisc, Sire, Warner Bros., and Word.
About EMI Group PLC
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20. The group has operations in Brazil,
China, and Hungary. The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.
At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets and GBP2.544 billion
in total liabilities, resulting in a GBP726.6 million
shareholders' deficit.
* * *
On Jan. 15, Moody's Investors Service downgraded EMI Group Plc's
Corporate Family and senior debt ratings to Ba3 from Ba2. All
ratings remain under review for possible further downgrade.
As reported in the TCR-LA on Feb. 19, Standard & Poor's Ratings
Services kept the U.K.-based music major EMI Group Plc's ratings
at BB-/Watch Neg/B, after the company announced it expects
revenues in its recorded music division to decline by 15% in the
fiscal year ended March 31, 2007, at constant currencies. The
ratings also remain on CreditWatch with negative implications,
where they were placed on Feb. 5, 2007.
FIDELITY NATIONAL: Names Paul Perez as Chief Compliance Officer
---------------------------------------------------------------
Fidelity National Financial Inc. reported that Paul Perez, the
United States Attorney for the Middle District of Florida, has
been appointed as Chief Compliance Officer for Fidelity National
Title Group.
"We're very pleased that a lawyer so highly placed and praised
by the Department of Justice as Paul Perez is joining our
company," said FNF General Counsel Peter Sadowski. "We take
compliance to codes of conduct and federal and state regulations
very seriously and we're confident that Paul will continue to
uphold our high standards of ethics and regulatory compliance."
Mr. Perez was appointed by President George Bush in January
2002, to be the United States Attorney for the Middle District
of Florida, covering 35 counties and home to 8.3 million
Floridians. As the chief of the office, he supervises more than
100 assistant U.S. Attorneys in the prosecution of criminal
cases brought by the United States, prosecutes and defends cases
to which the United States is a party, and collects debts owed
to the government. In addition, out of 93 U.S. Attorneys across
the nation, Perez is one of 18 serving on the Attorney General's
Advisory Committee. This committee advises and counsels
Attorney General Alberto Gonzales in areas such as terrorism
prevention, immigration enforcement and civil rights.
As a prosecutor in the U.S. Attorney's office from 1989 to 1992,
Mr. Perez successfully pursued significant international
forfeitures and money-laundering cases. He returned to the U.S.
Attorney's office in 2002 after a 10-year civil and criminal
trial career with the firm of Booth, Arnold and Perez.
Mr. Perez, born in Havana in 1955, immigrated to the United
States with his parents in 1960. He received a degree in
history and international affairs from Jacksonville University,
a Master's Degree in Latin American Studies from the University
of Florida and his law degree (with honors) from The George
Washington University.
Headquartered in Jacksonville, Florida, Fidelity National
Information Services, Inc. --
http://www.fidelityinfoservices.com/-- provides core processing
for financial institutions; card issuer and transaction
processing services; mortgage loan processing and mortgage-
related information products; and outsourcing services to
financial institutions, retailers, mortgage lenders and real
estate professionals. FIS has processing and technology
relationships with 35 of the top 50 global banks, including nine
of the top ten. Nearly 50% of all US residential mortgages are
processed using FIS software. FIS maintains a strong global
presence, serving over 7,800 financial institutions in more than
60 countries worldwide, including Brazil.
* * *
Standard & Poor's Ratings Services raised, on March 8, 2006, the
corporate credit and senior secured ratings of Fidelity National
Information Services Inc. to 'BB+' from 'BB', and removed it
from CreditWatch where it was placed on Sept. 15, 2005.
GERDAU AMERISTEEL: Pays Out US$12MM to Conclude Labor Deal Talks
----------------------------------------------------------------
Gerdau Ameristeel Corp. has paid US$12 million to end new labor
deal negotiations at some of its US steel mills, Brazilian daily
Valor Economico reports.
Gerdau Ameristeel agreed to create funds to help pay for pension
and health plans for its employees, Valor Economico underscores.
About US$7 million would be allotted for its workers in Texas,
while US$5 million would go to those in Iowa.
Business News Americas relates that negotiations are ongoing at
steel mills in:
-- Kentucky,
-- Illinois,
-- Oklahoma, and
-- Canada.
Headquartered in Tampa, Florida, Gerdau Ameristeel is a
subsidiary of Brazil's Gerdau SA in the United States. The
company produces rebar, merchant bar, structural shapes, wire
rod, and flat-rolled sheet at 17 North American mini mills, and
conducts downstream steel fabricating operations at 50
facilities.
* * *
As reported in the Troubled Company Reporter on Jan. 19, 2007,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB' corporate credit rating, on Tampa, Florida-based Gerdau
Ameristeel Corp. on CreditWatch with positive implications.
PETROLEO BRASILEIRO: Gov't Inks MOU with US to Promote Biofuels
---------------------------------------------------------------
Brazilian state-owned oil firm said in a statement that the
government has signed a memorandum of understanding or MOU with
the United States to promote biofuels.
As reported in the Troubled Company Reporter-Latin America on
March 13, 2007, Brazilian President Luiz Inacio Lula da Silva
considered signing the memorandum aimed at incorporating ethanol
to the American energy grid an answer to the 21st century's
energy challenge. He highlighted establishing the bases for the
global biofuel market as a huge contribution to the environment.
President Lula da Silva and his US counterpart, George W. Bush,
visited Petroleo Brasileiro's facilities in Guarulhos, Sao
Paulo. President Lula, accompanied by Petroleo Brasileiro
President Jose Sergio Gabrielli de Azevedo showed the American
president the several stages involved in ethanol and biodiesel
production.
Business News Americas relates that the MOU provides guidelines
for bilateral cooperation for the promotion of ethanol on global
markets and help transfer technology to nations that want to
produce the fuel.
President Lula da Silva said in a transcript published by the
White House press office, "The MOU about cooperation in the
biofuel area signed today [March 9] is an answer to the great
energy challenges of the 21st century."
President Bush asked the US congress to authorize a US$1.6-
billion funding over 10 years for additional ethanol research,
BNamericas states.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
===========================
C A Y M A N I S L A N D S
===========================
CASCADA CAPITAL: Sets Last Shareholders Meeting for April 10
------------------------------------------------------------
Cascada Capital Ltd. will hold its final shareholders meeting on
April 10, 2007, at 9:00 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) considering and (if thought fit) passing a resolution
pursuant to section 158(1)(b) of the Companies Law
authorizing the liquidator to retain the books, accounts,
papers and documents of the Company for a period of five
years from the dissolution of the Company after which
they may be destroyed.
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:
HM Capital Partners LLC
P.O. Box 2510
Grand Cayman KY1-1104
Cayman Islands
Tel: (345) 949 3344
Fax: (345) 949 2888
COOPERNEFF GLOBAL: Last Shareholders Meeting Is on April 10
-----------------------------------------------------------
Cooperneff Global Manifold (Cayman) Ltd. will hold its final
shareholders meeting on April 10, 2007, at 9:00 a.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) authorize the liquidator to retain the records
of the Company for a period of three years from
the dissolution of the Company, after which they
may be destroyed.
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
DOVE LTD: Proofs of Claim Filing Deadline Is April 10
-----------------------------------------------------
Dove Ltd.'s creditors are given until April 10, 2007, to
prove their claims to Dizame Consulting S.A., 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.
Dove Ltd.'s shareholder agreed on Feb. 19, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Dizame Consulting S.A.
c/o Maples and Calder
P.O. Box 309
George Town, Ugland House
South Church Street
Grand Cayman, Cayman Islands
EASTERN OLYMPIAD: Sets Last Shareholders Meeting for April 10
-------------------------------------------------------------
Eastern Olympiad Fund II Ltd. will hold its final Shareholders
meeting on April 10, 2007, at 9:30 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) authorize the liquidator to retain the records
of the Company for a period of three years from
the dissolution of the Company, after which they
may be destroyed.
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
MAYMIN FUND: Last Shareholders Meeting Is on April 10
-----------------------------------------------------
Maymin Fund International, Ltd. will hold its final shareholders
meeting on April 10, 2007, at 10:00 a.m., at:
Maymin Capital Management, LLC
222 Railroad Avenue
Greenwich, Connecticut 06830
USA
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) authorize the liquidator to retain the records
of the Company for a period of three years from
the dissolution of the Company, after which they
may be destroyed.
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:
Philip Maymin
222 Railroad Avenue
Greenwich, Connecticut 06830
USA
MAYMIN MASTER: Will Hold Last Shareholders Meeting on April 10
--------------------------------------------------------------
Maymin Master Fund Ltd. will hold its final shareholders meeting
on April 10, 2007, at 10:00 a.m., at:
Maymin Capital Management, LLC
222 Railroad Avenue
Greenwich, Connecticut 06830
USA
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) authorize the liquidator to retain the records
of the Company for a period of three years from
the dissolution of the Company, after which they
may be destroyed.
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:
Philip Maymin
222 Railroad Avenue
Greenwich, Connecticut 06830
USA
SANTA HELENA: Will hold Last Shareholders Meeting on April 10
-------------------------------------------------------------
Santa Helena will hold its final shareholder meeting on
April 10, 2007, 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, the property of the
company distributed and the debts and obligations of the
company discharged, and
2) 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:
Commerce Corporate Services Ltd.
P.O. Box 694
George Town, Grand Cayman
Cayman Islands
Tel: 949 8666
Fax: 949 7904
TPC BLOCKER: Will Hold Last Shareholders Meeting on April 10
------------------------------------------------------------
TPC Blocker Ltd. will hold its final shareholders meeting on
April 10, 2007, at 9:30 a.m., at the offices 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,
and
2) considering and (if thought fit) passing a resolution
pursuant to section 158(1)(b) of the Companies Law
authorising the liquidator to retain the books, accounts,
papers and documents of the Company for a period of five
years from the dissolution of the Company after which
they may be destroyed.
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:
HM Capital Partners LLC
P.O. Box 2510
Grand Cayman KY1-1104
Cayman Islands
Tel: (345) 949 3344
Fax: (345) 949 2888
VHC EUROPEAN: Sets Last Shareholders Meeting for April 10
---------------------------------------------------------
VHC European Restructuring Fund Ltd. will hold its final
shareholder meeting on April 10, 2007, at 11:00 a.m., at:
Deloitte
Fourth Floor, Citrus Grove
P.O. Box 1787, George Town
Grand Cayman
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) authorise the liquidator to retain the records
of the Company for a period of three years from
the dissolution of the Company, after which they
may be destroyed.
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:
Stuart Sybersma
Attention: Nicole Ebanks
Deloitte
P.O. Box 1787
George Town, Grand Cayman
Cayman Islands
Tel: (345) 949-7500
Fax: (345) 949-8258
VHC EUROPEAN: Last Shareholders Meeting Is on April 10
------------------------------------------------------
VHC European Event Driven Fund Ltd. will hold its final
Shareholder meeting on April 10, 2007, at 10:00 a.m., at:
Deloitte
Fourth Floor, Citrus Grove
P.O. Box 1787, George Town
Grand Cayman
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) authorise the liquidator to retain the records
of the Company for a period of three years from
the dissolution of the Company, after which they
may be destroyed.
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:
Stuart Sybersma
Attention: Nicole Ebanks
Deloitte
P.O. Box 1787
George Town, Grand Cayman
Cayman Islands
Tel: (345) 949-7500
Fax: (345) 949-8258
VHC MASTER: Will Hold Last Shareholders Meeting on April 10
-----------------------------------------------------------
VHC Master Fund Ltd. will hold its final shareholder meeting on
April 10, 2007, at 10:30 a.m., at:
Deloitte
Fourth Floor, Citrus Grove
P.O. Box 1787, George Town
Grand Cayman
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) authorise the liquidator to retain the records
of the Company for a period of three years from
the dissolution of the Company, after which they
may be destroyed.
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:
Stuart Sybersma
Attention: Nicole Ebanks
Deloitte
P.O. Box 1787
George Town, Grand Cayman
Cayman Islands
Tel: (345) 949-7500
Fax: (345) 949-8258
VHC RESTRUCTURING: Sets Last Shareholders Meeting for April 10
-------------------------------------------------------------
VHC Restructuring Master Fund Ltd. will hold its final
shareholder meeting on April 10, 2007, at 11:30 a.m., at:
Deloitte
Fourth Floor, Citrus Grove
P.O. Box 1787, George Town
Grand Cayman
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) authorise the liquidator to retain the records
of the Company for a period of three years from
the dissolution of the Company, after which they
may be destroyed.
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:
Stuart Sybersma
Attention: Nicole Ebanks
Deloitte
P.O. Box 1787
George Town, Grand Cayman
Cayman Islands
Tel: (345) 949-7500
Fax: (345) 949-8258
=========
C H I L E
=========
BELL MICROPRODUCTS: Lenders Waive SEC 10-Q Filing Until May 31
--------------------------------------------------------------
Bell Microproducts, Inc. received waivers last Thursday in
relation to the delivery of certain of its quarterly information
and documentation until May 31, 2007, under credit agreements
with Wachovia Capital Finance Corp., Wachovia Bank, National
Association, and the Teachers' Retirement Systems of Alabama.
On March 7, 2007, the company management provided general update
of its business at the Raymond James Institutional Investors
Conference. Consistent with a business update provided in
January, it indicated that revenue for 2006 was about
US$3.4 billion, including revenue in the fourth quarter of 2006
of about US$1 billion.
About Bell Microproducts
Headquartered in San Jose, California, Bell Microproducts Inc.
(Nasdaq: BELM) -- http://www.bellmicro.com/-- is an
international, value-added distributor of high-tech products,
solutions and services, including storage systems, servers,
software, computer components and peripherals, as well as
maintenance and professional services. Bell is a Fortune 1000
company that has operations in Argentina, Brazil, Chile and
Mexico.
* * *
As reported in the Troubled Company Reporter on Jan. 3, 2007,
Holders of US$109,475,000 aggregate principal amount of the
outstanding 3-3/4% Convertible Subordinated Notes have consented
to a waiver of defaults arising from the failure to file all
reports and other information and documents which it is required
to file with the SEC and the trustee.
Further, these holders have agreed to amend the indenture to
eliminate any provision that would trigger a default for the
failure to file or deliver any reports required to be filed with
the SEC or the trustee, and to add a provision for a special
interest payment to holders of Notes if an eligible tender offer
for the outstanding Notes is not completed prior to
Feb. 1, 2007.
BELL MICROPRODUCTS: Has Until May 22 to Comply with Nasdaq Rules
----------------------------------------------------------------
Bell Microproducts Inc. has received a written notice that the
NASDAQ Listing Qualifications Panel had granted the company's
request for continued listing on The NASDAQ Stock Market. It
was given until May 22, 2007, to become current in its
Securities and Exchange Commission filings.
However, the company said it may not be possible to complete its
SEC filings prior to May 22, 2007, and, if necessary, will
petition the NASDAQ Listing and Hearings Review Council for an
additional extension. The company is currently completing a
review of its stock option accounting practices and restatements
of prior period financials.
About Bell Microproducts
Headquartered in San Jose, California, Bell Microproducts Inc.
(Nasdaq: BELM) -- http://www.bellmicro.com/-- is an
international, value-added distributor of high-tech products,
solutions and services, including storage systems, servers,
software, computer components and peripherals, as well as
maintenance and professional services. Bell is a Fortune 1000
company that has operations in Argentina, Brazil, Chile and
Mexico.
* * *
As reported in the Troubled Company Reporter on Jan. 3, 2007,
Holders of US$109,475,000 aggregate principal amount of the
outstanding 3-3/4% Convertible Subordinated Notes have consented
to a waiver of defaults arising from the failure to file all
reports and other information and documents which it is required
to file with the SEC and the trustee.
Further, these holders have agreed to amend the indenture to
eliminate any provision that would trigger a default for the
failure to file or deliver any reports required to be filed with
the SEC or the trustee, and to add a provision for a special
interest payment to holders of Notes if an eligible tender offer
for the outstanding Notes is not completed prior to
Feb. 1, 2007.
SHAW GROUP: Unit Secures Huntsman's Geismar Plant Contract
----------------------------------------------------------
The Shaw Group Inc. reported that its Shaw Constructors, Inc.
business unit has been awarded a construction management and
services contract by Huntsman Corp. to construct a new 100-
million pound/year maleic anhydride plant at Geismar, Louisiana.
Shaw Group's services include overall construction management,
site work preparation, structural steel supply and erection, and
the installation of mechanical equipment, piping systems,
electrical components and instrumentation. The new plant will
be constructed within an existing operating area of Huntsman's
Geismar location and is expected to come on line in the fourth
quarter of 2008. The value of Shaw Group's contract was not
disclosed.
J.M. Bernhard, Jr., Chairman, President and Chief Executive
Officer of Shaw Group, said, "We are very pleased to have been
selected to construct this new maleic anhydride plant for
Huntsman. This project will allow Huntsman to meet the growing
product demand from its global customers and Shaw looks forward
to continue its support of Huntsman's production goals."
About Huntsman Corp.
Huntsman Corp. (NYSE: HUN) -- http://www.huntsman.com/--
manufactures and markets differentiated and commodity chemicals.
Its operating companies manufacture products for a variety of
global industries including chemicals, plastics, automotive,
aviation, textiles, footwear, paints and coatings, construction,
technology, agriculture, health care, detergent, personal care,
furniture, appliances and packaging. The company maintains
operations in Argentina, Australia, Brazil, China, Germany, and
the United Kingdom, among others.
* * *
As reported on Jan. 16, 2007, Standard & Poor's Ratings Services
affirmed its 'BB-' corporate credit rating and other ratings on
Salt Lake City, Utah-based chemicals producer Huntsman Corp. and
its subsidiary Huntsman International LLC.
As reported on Nov. 2, 2006, Moody's Investors Service assigned
a B3 rating to Huntsman International's proposed US$400 million
senior subordinated notes. Moody's also assigned Loss Given
Default Assessment of LGD6 to these notes in accordance with its
Loss-Given-Default rating methodology that was initially
implemented at the end of September 2006.
About The Shaw Group Inc.
Headquartered in Baton Rouge, LA, The Shaw Group Inc. --
http://www.shawgrp.com/-- is a global provider of services to
the environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers. It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries. The
company segregates its business activities into four operating
segments: Environmental & Infrastructure (E&I); Energy &
Chemicals (E&C); Maintenance, and Fabrication, Manufacturing &
Distribution (F&M). In January 2005, the company sold
substantially all of the assets of its Shaw Power Technologies,
Inc. and Shaw Power Technologies International, Ltd. units to
Siemens Power Transmission and Distribution Inc., a unit of
Siemens AG.
The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.
* * *
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
Oct. 2006. S&P said the outlook is stable.
In addition, 'BB' senior secured debt rating was affirmed after
the USUS$100 million increase to the company's revolving credit
facility.
WARNER MUSIC: May Attempt Fresh Takeover Offer for EMI Group
------------------------------------------------------------
Warner Music Group CEO Edgar Bronfman Junior is prepared to draw
a fresh takeover bid for EMI Group Plc, on condition that EMI
will consider a revised offer, reports say.
EMI rejected Warner's GBP2.1 billion non-binding takeover bid on
March 2, saying that the price of 260 pence per share in cash
for EMI is inadequate.
Warner approached EMI on Jan. 24, after it obtained the support
of Brussels-based Impala, a trade group for independent European
record labels ending its opposition to a Warner-EMI merger.
Warner clarified Feb. 21, 2007, that any possible takeover offer
for EMI is likely to be solely in cash.
Analysts believed that an EMI-Warner merger could generate cost
savings of about GBP150 million a year.
EMI issued two profit warnings since January 2007.
About EMI Group PLC
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20. The group has operations in Brazil,
China, and Hungary. The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.
At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets and GBP2.544 billion
in total liabilities, resulting in a GBP726.6 million
shareholders' deficit.
About Warner Music Group
Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/--
is a music company that operates through numerous international
affiliates and licensees in more than 50 countries, including
the Philippines. In Latin America, Warner Music has affiliates
in Argentina, Brazil, Chile, Columbia and Mexico. Warner Music
is home to a collection of record labels in the music industry
including Asylum, Atlantic, Bad Boy, Cordless, East West,
Elektra, Lava, Maverick, Nonesuch, Reprise, Rhino, Rykodisc,
Sire, Warner Bros., and Word.
* * *
On Feb. 27, Standard & Poor's Ratings Services placed its
ratings on Warner Music Group Corp., including the 'BB-'
corporate credit rating, on CreditWatch with negative
implications, following the company's statement that it is
exploring a possible merger agreement with EMI Group PLC
(BB-/Watch Neg/B), which EMI management has confirmed.
Warner Music Group Corp. carries Fitch Ratings' BB- issuer
default rating assigned in May 2006.
===============
C O L O M B I A
===============
ECOPETROL: Expects First Tranche of Share Sale in Third Quarter
---------------------------------------------------------------
A public affairs official of Colombia's state-run oil firm
Ecopetrol told Business News Americas that the company expects
the first tranche of a share sale in third quarter this year.
As reported in the Troubled Company Reporter-Latin America on
Jan. 5, 2007, Colombian President Alvaro Uribe signed into law a
bill for the sale of up to 20% of Ecopetrol. The shares would
be sold in three separate rounds:
-- in the first and second rounds, the stake would be
offered to:
* pension funds,
* cooperatives,
* Ecopetrol workers and pensioners,
* local governments, and
* individual Colombians; and
-- in the third round, shares would be available for
institutional investors.
BNamericas relates that Ecopetrol appointed US law firm Shearman
& Sterling as its adviser for the initial public offering or
IPO.
Ecopetrol will select an investment bank to conduct the IPO's
financial engineering, BNamericas states, citing the official.
Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government. The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products. Ecopetrol is Latin America's
fourth-largest integrated-oil concern. Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.
On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol SA to Positive from Stable. This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia. Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.
===================
C O S T A R I C A
===================
US AIRWAYS: Moody's Affirms B3 Corporate Family Rating
------------------------------------------------------
Moody's Investors Service affirmed the B3 corporate family
ratings of of US Airways Group, Inc. and its subsidiaries.
Moody's also assigned a B2 rating and a loss given default of
LGD3-42 to a new senior secured term loan. The outlook is
raised to positive from stable.
The change to positive outlook reflected improvement to the
operating profitability, and to the leverage and interest
coverage metrics since the merger of US Airways Inc. and America
West Airlines in September 2005. The strong current revenue
market has provided US Airways with moderate pricing power. As
a result, credit metrics improved sharply over the past year.
EBIT margin during 2006 was 10.5%, and the company is likely to
remain profitable during 2007 given the solid demand expected.
EBIT to interest expense of 1.7x and debt to EBITDA of 5.8x at
Dec. 31, 2006, are now moderately better than similarly rated
issuers, although the company's refleeting plan starting during
2008 could increase indebtedness. The B3 corporate family
rating also considers some uncertainty relating to incremental
cost savings from the merger and the ability of the airline to
expand into more profitable markets, as well as preserve the
high cash balances given the capital spending plans.
Despite much-improved profitability, US Airways has a relatively
high cost structure when compared to other Low Cost Carriers or
LCC. However, the network does produce considerably more
revenue per revenue passenger mile also when compared to other
LCC's. High costs may limit future profit gains because the
airline operates in some of the more competitive US markets,
which are susceptible to competition from other LCC's.
Productivity remains constrained by the large workforce produced
by the merger, but the company has successfully negotiated some
wage and benefit concessions through the bankruptcy process.
Profitability gains have largely been from revenue improvement,
and the company will need to address its cost structure in order
to materially enhance profitability. The senior secured term
loan will refinance a currently outstanding term loan and will
be secured by certain aircraft, spare parts, gates, route
authority, some cash and other assets.
The facility includes a covenant to maintain appraised value of
collateral to the outstanding loan amount of greater than 1.25x,
which could require the company to pledge additional assets
should the appraised value decline meaningfully over time. The
collateral package in this new loan is somewhat greater than the
collateral in the loan it refinanced, as the company has added a
modest amount of domestic slots.
Downward pressure on the ratings could occur if the EBITDA
margin is lower than 11%, if debt to EBITDA exceeds 10x or if
EBIT to interest expense weakens to approach the 1x level. The
rating could be raised if internally generated cash flows and
profits are sustained through the peak travel season, resulting
in a continued EBIT to interest expense ratio greater than 1.5x
and retained cash flow to net debt greater than 10%, along with
cash balances at approximately currently levels.
Assignments:
Issuer: US Airways Group, Inc.
-- Senior Secured Bank Credit Facility, Assigned a rating
of B2 and loss given default of LGD3 - 42
Outlook Actions:
Issuer: America West Airlines, Inc.
-- Outlook, Changed To Positive From Stable
Issuer: US Airways Group, Inc.
-- Outlook, Changed To Positive From Stable
Issuer: US Airways, Inc.
-- Outlook, Changed To Positive From Stable
Headquartered in Arlington, Virginia, US Airways Group Inc.'s
(NYSE: LCC) -- http://www.usairways.com/-- primary business
activity is the ownership of the common stock of:
* US Airways, Inc.,
* Allegheny Airlines, Inc.,
* Piedmont Airlines, Inc.,
* PSA Airlines, Inc.,
* MidAtlantic Airways, Inc.,
* US Airways Leasing and Sales, Inc.,
* Material Services Company, Inc., and
* Airways Assurance Limited, LLC.
Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for US$240 million infusion of new capital.
US Airways and its subsidiaries filed another chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts. In the Company's
second bankruptcy filing, it lists US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.
The Debtors' chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005. The Debtors completed their
merger with America West on the same date.
US Airways, US Airways Shuttle, and US Airways Express operate
approximately 3,800 flights per day and serve more than
230 communities in the U.S., Canada, Europe, the Caribbean, and
Latin America. The new US Airways is a member of the Star
Alliance, which provides connections for customers to
841 destinations in 157 countries worldwide.
US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.
===================================
D O M I N I C A N R E P U B L I C
===================================
JETBLUE AIRWAYS: Appoints Robert Clanin to Board of Directors
-------------------------------------------------------------
JetBlue Airways has appointed Robert J. Clanin to its Board of
Directors, effective March 9, 2007. Mr. Clanin is the retired
Senior Vice President and Chief Financial Officer of United
Parcel Service, the world's largest package distribution
company. Mr. Clanin will serve on the Board's Audit Committee
immediately following JetBlue's 2007 Annual Meeting of
Stockholders to be held May 9, 2007.
"Bob's experience leading UPS through key milestones in the
company's history will serve JetBlue well as we transition our
company to be a larger company that continues to provide
personalized service," said David Neeleman, JetBlue's Founder,
Chief Executive Officer and Chairman of the Board. "We are very
pleased to have Bob join our Board of Directors."
Mr. Clanin currently serves on the Board of Directors for the
following companies:
* J. Harland Company;
* Caruastar Industries; and
* Clockwork Home Services.
Mr. Clanin served on the UPS Board of Directors between
1996-2000. He is also a trustee for the following non-profit
organizations:
* Southern Catholic College;
* St. Joseph's Hospital;
* Bradley University and
* The Annie E. Casey Foundation.
Mr. Clanin currently lives in Alpharetta, Georgia, with his wife
Ruth Ann Clanin.
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.
=============
E C U A D O R
=============
PETROECUADOR: Gets Second Venezuelan Diesel Shipment by April 8
---------------------------------------------------------------
Ecuadorian state-owned oil firm Petroecuador said in a statement
that the committee supervising the exchange of Ecuadorian crude
for Venezuelan derivatives has set the arrival of the second
220,000-barrel diesel shipment for April 8-10 in Ecuador's La
Libertad port.
As reported in the Troubled Company Reporter-Latin America on
Feb. 28, 2007, Petroecuador received the first of three
shipments of 220,000 barrels of diesel from Venezuela. The
shipments are under a diesel-for-crude exchange between
Petroecuador and Venezuelan state oil firm Petroleos de
Venezuela. Petroecuador would be able to save at least US$1.5
million. The second shipment was initially set for March 15-17,
while the third delivery would be on March 22-24. Both of the
deliveries would also have 220,000 barrels.
Business News Americas relates that the schedule for the third
diesel delivery was also moved to April 23-25.
According to BNamericas, the last two shipments will have a
value per barrel of Platts plus US$3.77.
The report says that Petroecuador will swap Napo crude for
Petroleos de Venezuela's diesel in two shipments of 360,000
barrels.
The first load of Napo crude will be sent to Venezuela from
April 25-29, while the second will be on April 29, Petroecuador
said in a statement.
About 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.
About Petroecuador
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
PETROECUADOR: Unit Spots 49 Prospects in Oriente Basin
------------------------------------------------------
Petroproduccion, state-run oil firm Petroecuador's unit, has
discovered 49 prospects and pre-prospects in the Oriente basin
by using 3D seismic data, Business News Americas reports.
Petroproduccion said in a statement that it chose 33 of the 49
prospects to boost oil output by 200,000 barrels per day in the
next five years. The reserves of the areas are expected at 1.48
billion barrels. The sum net present value of the 33 prospects
and pre-prospects is US$5.219 billion, assuming a 10% discount
rate.
According to BNamericas, initial production of about 20,000
barrels per day from the first fields will start in 2010. It is
expected to total almost 200,000 barrels per day by 2014.
BNamericas underscores that as part of the development program,
Petroproduccion will start drilling vertical and directional
wells next year. About five of the nine drilling towers planned
for the program would be used at the Ishpingo-Tambochocha-
Tiputini oilfields.
BNamericas relates that the prospects and pre-prospects will
need:
-- 340 wells,
-- 391 kilometers of roads, and
-- 606 kilometers of secondary oil pipelines, among
other works.
The projects will require a US$1.55-billion investment from
2008-14, 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.
PETROLEOS DE VENEZUELA: Making Second Diesel Shipment to Ecuador
----------------------------------------------------------------
Venezuelan state-run oil company Petroleos de Venezuela SA will
make its second 220,000-barrel diesel shipment to Ecuador,
Business News Americas reports.
Ecuadorian state-owned oil firm Petroecuador said in a statement
that the committee supervising the exchange of Ecuadorian crude
for Venezuelan derivatives has set the arrival of the shipment
for April 8-10 in Ecuador's La Libertad port.
As reported in the Troubled Company Reporter-Latin America on
Feb. 28, 2007, Petroecuador received the first of three
shipments of 220,000 barrels of diesel from Venezuela. The
shipments are under a diesel-for-crude exchange between
Petroecuador and Venezuelan state oil firm Petroleos de
Venezuela. Petroecuador would be able to save at least US$1.5
million. The second shipment was initially set for March 15-17,
while the third delivery would be on March 22-24. Both of the
deliveries would also have 220,000 barrels.
BNamericas relates that the schedule for the third diesel
delivery was also moved to April 23-25.
According to BNamericas, the last two shipments will have a
value per barrel of Platts plus US$3.77.
The report says that Petroecuador will swap Napo crude for
Petroleos de Venezuela's diesel in two shipments of 360,000
barrels.
The first load of Napo crude will be sent to Venezuela from
April 25-29, while the second will be on April 29, Petroecuador
said in a statement.
About Petroecuador
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
About 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.
=====================
E L S A L V A D O R
=====================
DIGICEL GROUP: Will Invest US$115 Million for Network Expansion
---------------------------------------------------------------
A Digicel Group spokesperson told Business News Americas that
the firm will invest US$115 million to expand its network
coverage and increase client support of its El Salvador
operations.
BNamericas relates that Digicel bought El Salvador's Digicel
Holdings Limited -- a company of the same name but unrelated to
Digicel Group, in October 2006.
According to BNamericas, the US$115 million investment was part
of the process to rebrand the recently acquired firm under
Digicel's own model.
The spokesperson told BNamericas that the network expansion will
let Digicel expand its coverage to 94% of El Salvador from 89%
by the end of April.
Digicel is also in the process of increasing its client service
staff, expanding its distribution partners in El Salvador and
sponsoring a local athletic association for more marketing
exposure, BNamericas states, citing the spokesperson.
Digicel Group Limited -- http://www.digicelgroup.com/-- is a
wireless services provider in the Caribbean region. The company
is a newly created Bermuda incorporated company formed by Mr.
Denis O'Brien, who previously owned 78% of the shares of Digicel
Limited on a fully diluted basis. The company started
operations in Jamaica in April 2001 and now offers GSM mobile
services in 22 markets primarily in the Caribbean including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and
Haiti among others.
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.
-- 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.
HERBALIFE LTD: Earns US$143 Million in Year Ended Dec. 31, 2006
---------------------------------------------------------------
Herbalife Ltd. earned US$143.13 million in net income on net
sales of US$1.88 billion for the year ended Dec. 31, 2006,
compared with net income of US$93.14 million on net sales of
US$1.56 billion for the previous year. Cost of sales in 2006
totaled US$380.33 million, versus US$315.74 million in 2005.
As of Dec. 31, 2006, the company listed US$1.01 billion in total
assets and US$663.04 million in total liabilities, resulting to
US$353.89 million in total shareholder's equity.
The company held US$154.32 million in cash and cash equivalents
as of Dec. 31, 2006, up from US$88.24 million in cash and cash
equivalents as of Dec. 31, 2005.
A full-text copy of Herbalife's annual report is available for
free at http://ResearchArchives.com/t/s?1b4d
Liquidity and Capital Resources
For the year ended Dec. 31, 2006, the company generated
US$184.4 million from operating cash flows, as compared with
US$143.4 million in 2005. The increase in cash generated from
operations reflected an increase in operating income of
US$37.9 million, which was primarily driven by a growth in net
sales.
Capital expenditures, including capital leases, for the year
ended Dec. 31, 2006, were US$66.9 million, as compared with
US$32.6 million in 2005. The majority of these expenditures
represented development of Internet tools for distributors, the
relocation of our Inglewood office and warehouse facility in
Memphis, and the expansion of the company's retail stores in
China. The company expects to incur capital expenditures of up
to US$45 million in 2007.
As of Dec. 31, 2006, the company had positive working capital of
US$132.2 million and contractual obligations of US$358.5
million.
About Herbalife Ltd.
Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/--
Herbalife, now in its 26th year, conducts business in 62
countries. The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China as well as major distribution centers in Venray,
Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn.,
Guadalajara, Mexico, and El Salvador.
* * *
Standard & Poor's Ratings Services rated Herbalife Ltd.'s long-
term foreign and local issuer credit ratings at BB+.
SPECTRUM BRANDS: S&P Affirms CCC+ Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Spectrum Brands Inc. to negative from developing, and affirmed
all of the company's existing ratings, including its 'CCC+'
corporate credit rating.
"The revised outlook is based on the company's continued very
high debt leverage and weak liquidity, and follows the company's
announced refinancing plans," said Standard & Poor's credit
analyst Patrick Jeffrey.
Spectrum Brands disclosed recently that it will commence an
exchange offer and consent solicitation to refinance its US$350
million 8.5% senior subordinated notes due 2013. In addition,
the company plans to refinance its senior secured credit
facility with a new US$1.6 billion six-year bank facility. As a
result, the company will rely on internally generated cash flow
in the near term for operating liquidity until it obtains a new
revolving credit facility.
"This represents a significant near-term concern for the
company's liquidity if it faces further operating challenges,"
Mr. Jeffrey noted.
However, the company expects to have about US$100 million of
available cash upon completion of the transaction to help fund
its operations.
The ratings on Spectrum Brands reflect the company's poor
operating performance over the past year, very high leverage,
marginal liquidity, and very aggressive acquisition history.
Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world. The company operates in 13
Latin American nations including El Salvador, Guatemala, Costa
Rica, Colombia and Nicaragua.
* EL SALVADOR: Wants Indian Investors to Explore Local Market
-------------------------------------------------------------
El Salvador Minister of External Relations Mr. Francisco E.
Lainez, in a meeting organized by the Confederation of Indian
Industry, told Moneycontrol.com that market-oriented reforms and
commercial openness are the key benefits for Indian business
community to invest in El Salvador.
Moneycontrol.com reports that Mr. Lainez, who leads a
Ministerial and Business Delegation from El Salvador to promote
two-way trade with India, stated that El Salvador is among the
three countries in Central Market with investment grade and can
be trade access gate to entire market of Central America. The
government looks for Indian investors to discover new
opportunities, He added.
El Salvador could provide access to EU through System
Preferences and have favourable free trade treaty with United
States, said Mr. Lainez.
The minister mentioned possible areas of investment for trade,
which includes:
-- food processing industries,
-- IT Education,
-- Science and Technology,
-- ITES including Business process Outsourcing, Textiles,
Auto Industry, Tourism, Healthcare and Pharma, Leather goods and
Real Estate.
According to the news, Mr. R Vishwanathan, Joint Secretary -
LAC, Ministry of External Affairs, Government of India, noted
that the bilateral trade between two countries could be further
enhanced by offering multi-entry visa to Indian industry
professionals, and assisting registration of companies in El
Salvador.
Moneycontrol.com relates that Director of Corporate Affairs
Harinder Sikka of Nicholas Piramal India Limited expressed its
support with the delegation through strengthening the bilateral
trade.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Fitch Ratings affirmed these ratings on El
Salvador:
-- Foreign and Local Currency Issuer Default Ratings
at 'BB+';
-- Short-term Issuer Default Rating at 'B'; and
-- Country Ceiling at 'BBB-'.
Fitch said the rating outlook was stable.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Franchise Operates Ghost Flights to Keep Slots
---------------------------------------------------------------
British Mediterranean Airways, which operates as a franchise of
British Airways plc, has been flying an empty 124-seat Airbus
passenger plane from Heathrow to Cardiff six days a week since
October in an effort to retain landing slots at the London
airport after civil unrest in Uzbekistan forced the airline to
scrap flights to Tashkent, The Sunday Times reports.
According to the report, no tickets are sold and the ghost
flights, which will have cost BMed around GBP2 million, do not
appear on departure or arrival boards.
"The Uzbek market had really collapsed, but we knew we would
want to use those timings again this summer. It wasn't the
ideal thing to do, but we wanted to keep hold of it," David
Richardson, BMed's chief executive, was quoted by The Sunday
Times as saying.
However, Mr. Richardson told the Guardian, "It is a BMed
practice and it's not something that BMI does. It will come to
an end at the end of the winter timetable on March 24."
Environmental groups raised concerns over the airline's practice
as each 140-mile flight releases 5.21 tons of carbon dioxide
into the atmosphere.
The green campaigners are calling on the government to impose
fines on airlines that fly empty planes, The Sunday Times
relates.
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.
=============
J A M A I C A
=============
AIR JAMAICA: Union Defends Airline from IMF's Closure Advice
------------------------------------------------------------
The National Workers Union, one of Jamaica's major trade unions,
has described the International Monetary Fund's closure
recommendation on Air Jamaica as impractical, Radio Jamaica
reports.
As reported in the Troubled Company Reporter-Latin America on
March 14, 2007, IMF again recommended that the Jamaican
government close down or sell Air Jamaica and allow its routes
to be covered by private airlines. IMF had suggested the same
thing to the government last year as well as in previous
analyses of the Jamaican economy in the late 1990s. The IMF
mission reviewed the Jamaican economy's performance in February
2007 and was not convinced that Air Jamaica's latest
restructuring plans would help the airline recover.
IMF's insistence that Air Jamaica be shut down showed that its
review team was uninformed of Air Jamaica's importance to the
economy, Radio Jamaica relates, citing union head Vincent
Morrison.
"From a straight economic point of view, you can't close Air
Jamaica, because if you close Air Jamaica, you going to leave a
massive gap in terms of transporting tourists, transporting the
goods that we export, goods that we import. And there's a whole
range of economic activities, that if we're to take Air Jamaica
out of the system that would just fall flat, creating problems
for the Jamaican economy," Mr. Morrison told 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.
NATIONAL COMMERCIAL: NCB Insurance to Manage Pension Funds
----------------------------------------------------------
The National Commercial Bank Jamaica has transferred the
responsibility for pension fund management to its subsidiary NCB
Insurance Company Limited from another subsidiary, West Indies
Trust Company, The Jamaica Gleaner reports.
NCB Insurance Managing Director Ingrid Chambers told The
Gleaner, "The marketing, administration and management of
pensions both for the existing accounts, which WITCO [West
Indies] has, and for new businesses coming in, will be done by
us."
The Gleaner relates that West Indies has administered pensions
for 40 years. The change will take effect on April 1. However,
West Indies will surrender its license on June 30.
Ms. Chambers explained to The Gleaner that the National
Commercial decided to transfer the pensions portfolio to NCB
Insurance two years ago, necessitated by legislative reform of
the local pensions sector.
The Gleaner underscores that the phase one of the new Pensions
Act was passed in 2004, reorganizing the administration of
superannuation funds, to be regulated by the Financial Services
Commission.
The shifting regulatory environment made new opportunities,
which the NCB Insurance, with an asset base of US$13.5 billion,
would be in a stronger position to leverage, The Gleaner notes,
citing the National Commercial.
Ms. Chambers commented to The Gleaner, "We think the customers
will be better off because they are getting that same level of
expertise."
Ms. Chambers said that the pension portfolio was being improved
and strengthened by the change. With the processing systems,
and reports required by the FSC, NCB Insurance is in a better
position to manage the funds than West Indies, according to The
Gleaner. The transition is unlikely to make setbacks, both
units having already reorganized their back-office operations.
"It will be a seamless transition for our customers because for
the past few years, since the bank made that strategic decision,
we have been working together, waiting on the official approval
of our license from the FSC," Ms. Chambers told The Gleaner
NCB Insurance would take the chance to cross-sell products, like
the group life insurance, but it won't be forcing clients to
purchase into its products. The firm will then be developing
individual retirement plans, which will give it very good
opportunities, The Gleaner says, citing Ms. Chambers.
The Gleaner emphasizes that Ms. Chambers was aiming for a 20%
boost in NCB Insurance's customers to add to the current 40 that
West Indies manages.
"We can't dictate what size funds will come in. We manage funds
that are as small as US$100 million," Ms. Chambers told The
Gleaner.
* * *
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.
===========
M E X I C O
===========
AMERICAN AIRLINES: Completes New Turbine Blades with Chromalloy
---------------------------------------------------------------
American Airlines, an AMR Corp. unit, and Chromalloy Gas Turbine
Corp., a Sequa Corp. subsidiary, and have jointly designed and
developed PMA JT8D-200 turbine blades for use in the American
fleet, which powers over 300 American MD80 aircraft. The
American JT8D-200 fleet is the single largest large commercial
engine fleet in the world.
The collaborative effort resulted in Chromalloy receiving FAA
design and manufacturing approval for all four stages of turbine
blades after the companies completed extensive engine testing
both in Chromalloy's and American's engine overhaul facilities.
The blades, which will be manufactured in Chromalloy's Carson
City Nevada facility, are covered under a long-term supply
agreement between the companies.
"We are pleased to expand our productive and mutually beneficial
relationship with American Airlines," said Chris Richardson,
Chromalloy Gas vice chairman and chief executive officer.
"We're continuously looking for ways to reduce our costs within
our M&E organization without sacrificing our high standards of
safety and efficiency and to create competitive advantages for
American Airlines. We view the development of these parts with
Chromalloy as achieving both of these goals", said Bob Reding,
senior vice president of technical operations for American
Airlines.
About Chromalloy Gas Turbine Corp.
Chromalloy Gas Turbine Corp., headquartered in San Antonio, TX,
specializes in the repair and manufacture of turbine components
for aircraft and industrial gas turbine engines.
About American Airlines, Inc.
American Airlines, Inc. -- http://www.AA.com/-- American Eagle,
and the AmericanConnection regional airlines serve more than 250
cities in over 40 countries with more than 3,800 daily flights.
The combined network fleet numbers more than 1,000 aircraft.
American Airlines, Inc. and American Eagle are subsidiaries of
AMR Corporation. It has latin operations in Mexico, Dominican
Republic, Puerto Rico, Argentina, Bolivia, Brazil, Chile,
Colombia, Ecuador, Paraguay, Peru, Venezuela, Uruguay, Belize,
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and
Panama.
* * *
As reported in the Troubled Company Reporter on Nov. 21, 2006,
Moody's Investors Service affirmed its 'B3' Corporate Family
rating for AMR Corp. and its subsidiary, American Airlines Inc.
CONSOLIDATED CONTAINER: Increases Cash Payment for Senior Notes
---------------------------------------------------------------
Consolidated Container Company disclosed that it has:
i. received the requisite consents and tenders for the
proposed amendments to the indentures governing the
Notes,
ii. extended the Consent Date for the Offers, and
iii. increased the cash consideration at which it will
purchase the Senior Subordinated Notes,
in connection with its reported tender offers and consent
solicitations to purchase for cash any and all of the
outstanding 10-3/4% Senior Secured Discount Notes due 2009 of
CCC and Consolidated Container Capital Inc. and any and all of
the outstanding 10-1/8% Senior Subordinated Notes due 2009 of
CCC and Capital. As reported, the purpose of the consent
solicitations is to obtain the consent of the holders of the
Notes to:
i. eliminate substantially all of the restrictive covenants
and significantly amend certain events of default and
related provisions contained in the indentures governing
the Notes, and
ii. release the liens related to the Senior Discount Notes.
As of the close of business on March 8, 2007, CCC had received
the percentage of aggregate principal amount or principal amount
at maturity, as applicable, of the outstanding Notes and related
consents required to effect the Proposed Amendments and the
Proposed Lien Releases. In connection with the receipt of the
requisite consents, CCC intends to promptly execute the
supplemental indentures governing the Notes, at which point the
supplemental indentures will be effective and all withdrawal
rights of the holders of the Notes pursuant to the Offers will
be terminated. Holders who have not yet tendered their Notes
may tender at or prior to the Expiration Date.
Although the supplemental indentures described above will be
effective upon execution, the Proposed Amendments and Proposed
Lien Release will not become operative unless and until the
Notes tendered by the consenting holders are accepted for
purchase by CCC pursuant to the terms of the Offers. Once the
Proposed Amendments and Proposed Lien Release become operative,
they will also be binding upon the holders of the Notes not
purchased in the Offers.
In addition, the tender offer consideration to be paid for
each US$1,000 principal amount of Senior Subordinated Notes
validly tendered at or prior to the Expiration Date and
not validly withdrawn has been increased from US$984 to US$986.
Accordingly, the total consideration for each US$1,000 principal
amount of Senior Subordinated Notes tendered at or prior to the
Consent Date and not validly withdrawn has been increased from
US$1,014 to US$1,016, which includes a consent payment of US$30
per US$1,000 principal amount.
About Consolidated Container
Headquartered in Atlanta, Georgia, Consolidated Container
Company LLC -- http://www.cccllc.com/-- develops, manufactures
and markets rigid plastic containers for many of the largest
branded consumer products and beverage companies in the world.
The company has a network of 55 strategically located
manufacturing facilities and a research, development and
engineering center located in Atlanta, Georgia. In addition,
the company has three international manufacturing facilities in
Canada and Mexico. The company sells containers to the dairy,
water, juice & other beverage, household chemicals & personal
care, agricultural & industrial, food and automotive sectors.
The company's container product line ranges in size from two-
ounce to six-gallon containers and consists of single and multi-
layer containers made from a variety of plastic resins,
including high-density polyethylene, polycarbonate,
polypropylene, and polyethylene terephthalate.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 9, 2007, 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.
CONTINENTAL AIRLINES: Moody's Ups Corporate Family Rating to B2
---------------------------------------------------------------
Moody's Investors Service has raised the ratings of Continental
Airlines, Inc.'s corporate family rating to B2, senior unsecured
to B3 and preferred stock to Caa1 and the ratings of certain
tranches of the airline's Enhanced Equipment Trust Certificates
or EETC's. Moody's also affirmed Continental Airlines' SGL-2
rating, the ratings of the EETCs not upgraded, and the Loss
Given Default rating of LGD5 - 74%. The outlook remains stable.
"Moody's upgrades follow Continental Airlines' first full year
of net profit in over three years on the strength of better unit
revenues and yields, combined with good control over operating
costs," George Godlin of Moody's Investors Service said. Also,
the airline completed the normally challenging winter season
with a strong cash position exceeding US$2 billion (about 12% of
debt). Still strong passenger demand combined with some
softening of fuel prices and better hedging of fuel price
volatility should continue to support continued modest profit
gains over the near term. With the solid airline operations
resulting in steadily better financial performance, debt
protection metrics have improved to be within the range of other
issuers at the B2 corporate family rating. Debt to EBITDA of
6.7x and EBIT to Interest of 1.4x at Dec. 31, 2006, while
improved, are still at the weaker end of the range however.
Moody's notes that Continental Airlines' cost structure remains
among the highest of the legacy carriers. The company has
continued focus on controlling costs, particularly important
because certain of Continental Airlines' routes are susceptible
to competition from low-cost carriers. Continental Airlines'
adherence to a steady aircraft re-fleeting plan, resulted in one
of the lowest average-age fleets in the industry with cost
savings through lower maintenance expense and high fuel
efficiency, and which may provide Continental Airlines the
ability to differentiate its product. A relatively young fleet
has lowered Continental Airlines' fuel and maintenance expense,
but the re-fleeting strategy has resulted in a weak capital
structure and a history of increasing debt, however.
The robust cash position provides Continental Airlines with some
insulation from economic shocks and unanticipated near-term
expenses. While the company enjoys good access to capital
markets at this time, substantially all of the company's assets
are encumbered and access to external sources of liquidity could
suffer if economic conditions worsen.
Most EETC ratings were increased by one notch to reflect the
upgrade of the corporate family rating to B2. Those ratings
affirmed considered the debt outstanding for each class relative
to the estimated value of the collateral supporting the
transactions (Loan to Value), and Moody's notching practices for
rating EETC's.
The stable outlook reflects the expectation of steadily
improving operating and financial performance over the near term
resulting primarily from somewhat better revenue yield while the
company controls growth in unit costs, as well as solid cash
balances. Downward pressure on the ratings could occur with an
EBITDA margin lower than 15%, or if debt to EBITDA exceeds 8x or
EBIT to interest expense falls to close to 1x. The rating could
be raised further if growth in internally generated cash flows
is sufficient to sustain EBIT to interest greater than 2x,
retained cash flow to debt greater than 15%, with higher cash
balances.
Upgrades:
Issuer: Cleveland (City of) Ohio
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Continental Airlines Finance Trust II
-- Preferred Stock Preferred Stock, Upgraded to Caa1
from Caa2
Issuer: Continental Airlines, Inc.
-- Corporate Family Rating, Upgraded to B2 from B3
-- Multiple Seniority Shelf, Upgraded to a range of (P)Caa1
to (P)B3 from a range of (P)Caa2 to (P)Caa1
-- Senior Secured Enhanced Equipment Trust, Upgraded to
a range of B2 to Baa2 from a range of B3 to Baa3
-- Senior Secured Equipment Trust, Upgraded to Ba2
from Ba3
-- Senior Secured Shelf, Upgraded to (P)Ba3 from (P)B1
-- Senior Unsecured Conv./Exch. Bond/Debenture, Upgraded
to B3 from Caa1
-- Senior Unsecured Regular Bond/Debenture, Upgraded
to B3 from Caa1
Issuer: Harris (County of) Texas, I.D.C.
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Hawaii Department of Transportation
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Houston (City of) Texas
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: New Jersey Economic Development Authority
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Port Authority of New York and New Jersey
-- Revenue Bonds, Upgraded to B3 from Caa1
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout Mexico, Europe and Asia,
serving 154 domestic and 138 international destinations
including Honduras and Bonaire. More than 400 additional points
are served via SkyTeam alliance airlines. With more than 43,000
employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with Continental Express,
carries approximately 61 million passengers per year.
Continental consistently earns awards and critical acclaim for
both its operation and its corporate culture.
DAIMLERCHRYSLER: CAW Local 1285 Members Vote for New Agreement
--------------------------------------------------------------
Canadian Auto Workers Local 1285 members who work at
DaimlerChrysler's Brampton, Ont., car assembly plant voted
overwhelmingly to an agreement that helps secure new work at the
facility.
More than 2,800 members attended a packed meeting. CAW
production members voted 78% in favor and skilled trades members
voted 95% in favor of the agreement that will come into force
when new products come into the plant, which currently produces
the Chrysler 300, the Dodge Magnum and Dodge Charger.
Bob Chernecki, assistant to the CAW President, spoke to the
members about the tough environment facing domestic automakers
and the challenging times that have created so much insecurity
in auto producing communities.
"Our members work hard to produce high quality vehicles and they
made a difficult decision [this] day that will help provide a
more secure future for themselves, their families and their
community," Mr. Chernecki said.
Ardis Snow, Local 1285 unit chairperson at DaimlerChrysler,
said, "It was a very hard decision for the members to make, but
they looked at the long term future for themselves and their
families. As the new plant chairperson I have a lot of work
ahead of me to unite the membership and the leadership," Mr.
Snow said.
Ken Lewenza, chairperson of the CAW's DaimlerChrysler master
bargaining committee, said, "There is obviously a lot of
uncertainty in the auto industry and our members continue to
express frustration and concern about the future."
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company'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: CEO 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
automaker 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.
DAIMLERCHRYSLER: Gets Order for Wireless Control from Nighthawk
---------------------------------------------------------------
Nighthawk Systems Inc. has received an initial order for
customized wireless power control units to be used by
DaimlerChrysler to control the venting of heat in their Trenton,
Michigan engine plant. The 2.1 million square feet plant covers
136 acres and contains hundreds of exhaust fans that control the
venting of heat from the plant. DaimlerChrysler approached
Nighthawk with the assistance of American Messaging, asking for
help with remotely controlling the fans. Nighthawk is
developing custom units that will be installed at the plant,
allowing DaimlerChrysler to wirelessly control the exhaust fans
from almost anywhere inside or outside of the plant.
The Nighthawk units will eliminate expensive wiring costs for
DaimlerChrysler, and will enable plant officials to turn on and
off the fans remotely in order to balance the amount of heat
exiting the plant. This allows DaimlerChrysler to better manage
the environment within the plant based on external factors such
as weather as well as on internal factors, such as lighter
product loads during holiday schedules.
H. Douglas Saathoff, Nighthawk's Chief Executive Officer,
stated, "I'm extremely pleased with the opportunity to assist
DaimlerChrysler with this opportunity, and look forward to
potentially building a larger relationship with them. The
Nighthawk name is becoming more recognized as we assist more and
larger companies with their control needs. I'm also extremely
pleased that our partnership with American Messaging has
fostered this opportunity. Their existing relationship with
DaimlerChrysler, as well as with Nighthawk, enabled this deal to
come together. Our relationship with American Messaging is
paying off as they expand our sales reach with their nationwide
network of sales personnel that have existing relationships with
enterprise customers that can benefit from using our products."
In September 2006, Nighthawk announced that they and American
Messaging had agreed to join forces to provide telemetry
solutions to enterprise customers utilizing American Messaging's
wireless network. American Messaging is the second-largest
paging company in the United States with approximately 1.5
million customers, providing network coverage in 98 of the top
100 markets and in all 50 states.
About Nighthawk Systems
Nighthawk Systems Inc. (OTCBB:NIHK) --
http://www.nighthawksystems.com/-- is a provider of intelligent
wireless power control products that enable simultaneous
activation or de-activation of multiple assets or systems on
demand. Nighthawk's installed customer base includes major
electric utilities, Internet service providers and fire
departments in over 40 states. Nighthawk's products also enable
custom message display, making them ideal for use in traffic
control and emergency notification situations.
Going Concern Doubt
As reported in the Troubled Company Reporter on May 17, 2006,
GHP Horwath, P.C., in Denver, Colorado, raised substantial doubt
about Nighthawk's ability to continue as a going concern after
auditing the company's consolidated financial statements for the
year ended Dec. 31, 2005. The auditor pointed to the Company's
net loss, negative working capital and stockholders' deficit.
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.
FORD MOTOR: Aston Martin CEO Vows to Make It World's Number One
---------------------------------------------------------------
Aston Martin CEO Ulrich Bez revealed plans to make the famous
marquee "the number one prestige car company in the world" after
Ford Motor Company sold it to an investor consortium, the
Financial Times states.
As reported in yesterday in TCR, Ford has entered into a
definitive agreement to sell Aston Martin, its prestigious
sports car business, to a consortium comprised of David
Richards, John Sinders, Investment Dar, and Adeem Investment Co.
for GBP479 million (US$925 million).
Analysts say Aston is in good hands, as it will continue to be
led by a strong management team with Mr. Bez at the helm. In
addition, the luxury car segment, of which Aston is a part, is
raking in more money than volume manufacturers, in spite of the
car industry's crisis, FT relates.
According to the report, one more thing working in Aston's favor
is its robust dealership network, which has steadily grown from
60 to 225 over the past few years. The brand further plans to
expand in metropolitan centers in Moscow, St. Petersburg,
Shanghai, and Beijing. Aston will also introduce a new model
-- the Rapide -- a four-door sports coupe with a GBP180,000 tag
price, expected to enter production by 2010.
However, analysts are concerned that new manufacturing platforms
may cost the new owners up to US$1 billion (EUR758 million) due
to the car industry's high development costs, FT reveals.
Aston must invest heavily in cleaner engine technology as well,
in the wake of stricter regulations of automobile emissions. In
this regard, Ford has expressed its desire to continue supplying
engines to the ultra-luxury marquee, FT adds.
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 280,000
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 $3 billion of senior convertible notes due
2036.
FORD MOTOR: Mulls Performance Bonuses to Salaried Workers
---------------------------------------------------------
Ford Motor Co. will pay hourly and salaried workers bonuses for
2006 to keep up morale amid a difficult turnaround, Jeffrey
McCracken and Terry Kosdrosky write for the Wall Street Journal.
According to the report, Chief Executive Alan Mulally said, in
an e-mail message sent to employees in the U.S. and Canada, that
the so-called performance awards have the support of the
company's board, as well as the United Auto Workers and Canadian
Auto Workers unions.
While Ford didn't meet profit and market share goals for 2006,
it did improve its quality and cost savings, Mr. Mulally said in
the email cited by WSJ.
Hourly and lower-level salaried employees will receive a bonus
of between US$300 and US$800, while higher-level salaried
employees will receive a higher, "but still modest" award, the
Journal said citing the e-mail message.
Ford spokeswoman Marcey Evans said in the report that more than
120,000 employees will receive the performance awards.
Last week, Ford estimated US$11,182 million in total lifetime
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 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 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: To Pay US$1 Bil. in Settlement Charges to GMAC
--------------------------------------------------------------
General Motors Corp. has agreed to pay approximately US$1
billion in settlement charges to GMAC Financial Services by the
end of the first quarter in relation to a change in the lending
arm's balance sheet, John D. Stoll of The Wall Street Journal
reports.
The cash settlement is related to the impact that problems in
the subprime mortgage segment, which focuses on borrowers with
low credit scores, have had on GMAC's book value, WSJ says,
citing people familiar with the settlement.
As reported in the Troubled Company Reporter on Dec. 1, 2006, GM
completed the sale of a 51% interest in GMAC to a consortium of
investors led by Cerberus FIM Investors LLC and including wholly
owned subsidiaries of Citigroup Inc., Aozora Bank Ltd., and The
PNC Financial Services Group Inc.
The transaction will preserve the mutually beneficial
relationship between GM and GMAC, while improving GMAC's access
to cost-effective funding. In addition, the sale of the
controlling interest in GMAC will provide significant liquidity
to GM that will support its North American turnaround plan,
finance global growth initiatives, and strengthen its balance
sheet.
2006 Results Expected Yesterday
As reported yesterday in the Troubled Company Reporter, the
automaker scheduled the release of its 2006 fourth-quarter and
calendar year financial results yesterday via PR Newswire and GM
Media Online.
As reported in the Troubled Company Reporter on Mar. 8, 2007,
the automaker pushed back the filing of its Annual Report on
Form 10-K with the U.S. Securities and Exchange Commission after
failing to make the March 1 filing deadline.
According to the company, 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 September 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/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries. GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.
* * *
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries. GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.
* * *
As reported in the Troubled Company Reporter on Dec. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with negative implications, where
they were placed March 29, 2006. S&P said the outlook is
negative.
As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
US$1.5 billion secured term loan of General Motors Corp.
HIPOTECARIA CREDITO: Sells MXN700MM Mortgage Backed Securities
--------------------------------------------------------------
Hipotecaria Credito y Casa said in a press release that it has
sold MXN700 million in residential mortgage backed securities or
RMBS.
Hipotecaria Credito sold 27-year bonds backed by mortgage loans.
The local units of Santander Central Hispano SA and Barclays Plc
managed the transaction, which Standard & Poor's assigned mxAAA
rating, the highest on the Mexican scale, Bloomberg states.
Hipotecaria Credito y Casa is a special purpose financial
company, or Sofol, that specializes in low-income mortgage
lending and also provides construction bridge loans for housing
developments. It is based in Culiacan, Sinaloa, Mexico. It
started operations in 1997 as a non-bank financial
institution/Sofol Mortgage Company. Hippotecaria Credito's main
activity consists of extending mortgages financed by monies from
SHF to low income households. As of March 31, 2006, the company
reported assets of MXN19.3 billion and MXN1.3 billion in equity.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2006, Moody's de Mexico has assigned a (P)B1 senior
unsecured debt, and Baa2.mx ratings to the MXN3 Billion MTN
programs of Hipotecaria Credito y Casa, SA De CV's. The rating
outlook is stable. The company's MX-2 national scale and Not
Prime global local currency short-term ratings, and the
company's Baa2.mx national scale and B1 global scale local
currency issuer ratings, were also affirmed. Hipotecraria
Credito is a Sociedad Financiera de Objeto Limitado or Sofol, a
special-purpose financial company, also known as a "non-bank
bank." Sofoles' main function is to extend mortgages to low-
income individuals under the auspices of Sociedad Hipotecaria
Federal or SHF financing programs, and to provide construction
financing to developers of low-income housing. SHF is one of
Mexico's most important government-sponsored programs for low to
low-middle income housing.
SEMGROUP LP: Files Registration Statement for Public Offering
-------------------------------------------------------------
SemGroup, L.P., has filed a registration statement on Form S-1
with the U.S. Securities and Exchange Commission. The filing is
related to a proposed public offering of 12,500,000 common
units, representing limited partner interests in SemGroup Energy
Partners, L.P., to be sold by a wholly owned subsidiary of
SemGroup. The filing includes an option for the underwriters to
purchase up to an additional 1,875,000 common units to be sold
by SemGroup Energy Partners. An application has been made to
have the units quoted on the NASDAQ Global Market under the
symbol "SGLP."
Proceeds from this offering, together with proceeds received
from SemGroup Energy Partners pursuant to borrowings under a
credit facility to be established by SemGroup Energy Partners,
will be used by SemGroup to reduce amounts outstanding under its
senior secured credit facilities. SemGroup Energy Partners will
use any proceeds it receives from the underwriters' over-
allotment option to reduce outstanding borrowings under its
proposed credit facility.
As currently filed, the common units offered to the public will
represent approximately 59.3 percent of the outstanding equity
of SemGroup Energy Partners, or approximately 62.5 percent if
the underwriters exercise in full their over-allotment option.
SemGroup will remain a privately held company and will
indirectly own the remaining equity interests in SemGroup Energy
Partners.
Citigroup Global Markets Inc. will act as the bookrunning
manager of the offering. This offering of common units will be
made only by means of a prospectus. A written prospectus
meeting the requirements of Section 10 of the Securities Act of
1933, when available, may be obtained from the offices of
Citigroup Global Markets Inc.
Brooklyn Army Terminal
Attn: Prospectus Delivery Department
140 58th Street
Brooklyn, NY 11220
Tel: (718) 765-6732.
SemGroup Energy Partners was recently formed by SemGroup to own,
operate and develop a diversified portfolio of complementary
midstream energy assets. SemGroup Energy Partners will provide
crude oil gathering, transportation, terminalling and storage
services primarily in its core operating areas in Oklahoma,
Kansas and Texas. A subsidiary of SemGroup is the general
partner of SemGroup Energy Partners. As of the closing of this
offering, SemGroup Energy Partners will own and operate
terminalling and storage facilities with approximately 6.7
million barrels of storage capacity, including approximately 4.8
million barrels of storage capacity located at the Cushing
Interchange, two pipeline systems consisting of approximately
1,120 miles of pipeline, and crude oil transports used to gather
oil at remote wellhead locations generally not covered by
pipeline and gathering systems.
SemGroup, LP -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace.
SemGroup provides diversified services for end users and
consumers of crude oil, natural gas, natural gas liquids,
refined products and asphalt. Services include purchasing,
selling, processing, transporting, terminaling and storing
energy. SemGroup serves customers in the United States, Canada,
Mexico and the United Kingdom.
* * *
As reported in the Troubled Company Reporter on Oct. 5, 2006,
Fitch Ratings assigned the rating of B+/RR3 to SemGroup, L.P.'s
proposed offering of US$250 million of senior unsecured notes
due 2015. The notes are an add-on to the November 2005 offering
of US$350 million of 8.75% notes.
In addition, Fitch has affirmed these ratings with a Stable
Outlook:
SemGroup, L.P.
-- Issuer Default Rating B; and
-- Senior unsecured notes due 2015 B+/RR3.
SemCrude, L.P.
-- IDR B;
-- Secured working capital facility due August 2010 BB/RR1;
-- Senior secured term loan B due March 2011 BB-/RR1; and
-- Secured revolving credit facility due August 2010 BB-/RR1.
SemCams Midstream Co.
-- IDR B;
-- Senior secured term loan due March 2011 BB-/RR1.
=================
N I C A R A G U A
=================
PETROLEOS DE VENEZUELA: Sets-Up Generators to Ease Energy Crisis
----------------------------------------------------------------
Petroleos de Venezuela S.A., along with local technicians, have
installed additional power generators with a combined capacity
of 15 megawatts to help ease the energy crisis in Nicaragua.
The units are operating at the Las Brisas thermo plant in
Managua, Nicaragua, Business News Americas says, citing a
statement from Petroleos de Venezuela.
The same statement says another 45 megawatts will be added by
month-end from units at the Los Brasiles plant, also in Managua,
while a second phase would add another 60 megawatts.
The installation is in accordance with Venezuela's Petrocaribe
energy cooperation program.
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.
* NICARAGUA: Venezuela Launches Land Survey for Planned Refinery
----------------------------------------------------------------
Venezuela has launched land surveys needed for the construction
of a US$2.5-billion refinery in Nicaragua, Reuters reports,
citing Venezuelan Agriculture and Lands Minister Elias Jaua.
According to Reuters, the 150,000-barrel per day plant will be
completed in four years.
El Universal underscores that Minister Jaua headed a Venezuelan
delegation meeting with Nicaraguan officials to review the
accords signed by the two nations.
Minister Jaua told El Universal that Venezuelan President Hugo
Chavez's financial aid to Nicaragua totaled about US$430 million
in energy, agriculture, health and social projects.
News service EFE relates that out of the US$430 million, some
US$340 million has been allocated for oil supply and other means
to solve Nicaragua's energy crisis.
The initiative includes the delivery of a first batch of US$50
million electric powerhouses from Venezuela. Another similar
batch will be shipped soon. Venezuela has also pardoned
Nicaragua's US$22 million debt resulting from Venezuelan fuel
sales to a number of Sandinist mayors in Nicaragua in 2006, EFE
notes.
The remaining US$90 million will be used in healthcare,
education, exports, agriculture and electric power projects, El
Universal states.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
===============
P A R A G U A Y
===============
PARMALAT SPA: Paraguay Unit Recalls Milk Amid Mass Poisoning
------------------------------------------------------------
Parmalat Paraguay, a unit of Parmalat S.p.A., has recalled a
batch of pasteurized milk linked to more than 300 cases of food
poisoning in the Latin American country, Reuters reports.
The Health Ministry's National Food and Nutrition Institute
requested shops to take Parmalat's milk off from shelves, a
trade group representing supermarkets told Bloomberg News.
"The products were recalled from the Paraguayan market and now
they're being analyzed, but at the moment the information
indicates that the milk's decomposition took place in the
refrigeration chain," Jose Maria Aguero, a representative of
Parmalat Paraguay, told a local radio.
Cases of food poisoning were reported in Alto Parana, Paraguay.
Patients reported symptoms that include vomiting and diarrhea
several hours after drinking milk, Francisco Guerrero, a senior
health official told Reuters.
"We appeal to people that, for the moment, they don't drink
Parmalat milk and that shopkeepers take back their stock to
where they bought it," Mr. Aguero said. "That way the risk of
more people falling ill is reduced."
About Parmalat
Based in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months. It also has 40-
some brand product line, which includes yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.
The Company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
or bankruptcy protection, they reported more than US$200 million
in assets and debts. The U.S. Debtors emerged from bankruptcy
on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.
=======
P E R U
=======
PRIDE INT'L: Reports US$68.9MM Net Income in Qtr. Ended Dec. 31
---------------------------------------------------------------
Pride International Inc. earned US$68.9 million net income on
record revenues of US$669.2 million for the three months ended
Dec. 31, 2006. Net income increased 70% compared to US$40.6
million reported for the fourth quarter of 2005, while revenues
rose 21% compared to US$551.0 million during the fourth quarter
of 2005. Results for the three months ended Dec. 31, 2006
included expenses of US$14.4 million resulting from the
previously announced early termination of certain existing
agency relationships associated with five of the company's
semisubmersible rigs in Brazil; US$4.9 million, relating to the
Audit Committee's ongoing investigation; and US$3.9 million
resulting from the impairment of two platform rigs in the
company's Offshore segment and three workover rigs in its Latin
America Land segment.
In November 2006, the company announced the acquisition of its
partner's interest in the joint venture companies that owned the
two dynamically positioned, deepwater semisubmersible rigs Pride
Rio de Janeiro and Pride Portland, increasing the company's
ownership in the two units from 30% to 100%. As a result of the
transaction, revenues for the three months ended Dec. 31, 2006,
increased by US$8.0 million related to the amortization of
deferred credits associated with contracts acquired. Operating
costs declined by US$7.8 million due to the elimination of lease
payments on the two rigs. Depreciation expense increased US$5.0
million, and interest expense increased by US$2.0 million, due
primarily to the addition of US$284.1 million of joint venture
debt to the company's balance sheet. Giving effect to these
items, the acquisition has a net impact of US$0.05 per diluted
share on fourth quarter 2006 after-tax earnings.
For the 12 months ended Dec. 31, 2006, net income totaled a
record US$296.5 million on record revenues of US$2,495.4
million, compared to net income of US$128.6 million on revenues
of US$2,033.3 million in 2005.
Louis A. Raspino, President and Chief Executive Officer of Pride
International, stated, "The Company achieved record financial
results in 2006 as a result of improving fleet dayrates and
activity. These financial results were accomplished despite an
active rig maintenance and upgrade schedule that included 10
rigs entering shipyards in 2006 combined with a moderating U.S.
Gulf of Mexico jackup dayrate environment. The offshore
drilling industry continues to experience strong customer demand
in most offshore drilling regions, producing exceptional
contracting opportunities for our floating rig fleet. The
Company concluded 2006 with a record revenue backlog of
approximately US$5.7 billion, providing an excellent foundation
for cash flow growth in 2007 and beyond. In addition, 2006 will
be remembered for the company's excellent safety performance,
which was the best in its history and followed record safety
performance in 2005."
Mr. Raspino added, "With the completion of the Brazilian joint
venture acquisition in November 2006, combined with the
acquisition of our partner's joint venture interest in Angola in
late 2005, the company has made an aggregate investment of
approximately US$700 million in technically advanced deepwater
assets. These investments, combined with the January 2007
appointment of an executive team capable of leading our Latin
America Land and E&P Services segments on a standalone basis,
and the continued sale of non-strategic assets, which totals
approximately US$250 million since late 2004, is evidence of the
company's continued progress toward a strategic focus on
offshore drilling with a greater exposure to the high-
specification floater segment. During 2007, we will intensify
our efforts regarding the pursuit of other value-adding growth
opportunities."
Consolidated Results
Consolidated revenues for the three months ended Dec. 31, 2006,
were a record US$669.2 million, an increase of US$26.4 million,
or 4.1% over the third quarter in 2006. Revenues benefited from
improved average dayrates and activity levels in the company's
offshore segment, as several rigs returned to work following
out-of-service periods during the third quarter of 2006. The
improvement in dayrate and activity levels, along with the
positive revenue impact from the Brazilian joint venture
acquisition, was partially offset by unplanned downtime on the
semisubmersible rig Pride North America and lower revenues in
the company's E&P Services segment.
Consolidated earnings from operations for the three months ended
Dec. 31, 2006, totaled US$134.3 million, a US$21.3 million
decrease from the preceding quarter in 2006, due primarily to
early termination of agency agreements in Brazil, the impact of
a general strike in Argentina, higher engineering project costs,
depreciation and asset impairments. In addition, the third
quarter of 2006 included a gain on the sale of assets not
present in the fourth quarter. These items were partially
offset by the favorable impact of the Brazilian joint venture
acquisition.
Offshore Segment Results
The company's offshore segment reported revenues of US$432.9
million for the three months ended Dec. 31, 2006, up US$34.5
million, or 8.7% from the preceding quarter in 2006 with
improving dayrates and higher utilization evident for floating
rigs and international jackup rigs throughout most offshore
regions. Segment earnings from operations were US$128.0 million
in the fourth quarter of 2006, down US$7.1 million from the
third quarter of the year.
Revenues from the segment's eight deepwater rigs totaled
US$125.5 million in the fourth quarter of 2006, essentially flat
with the preceding quarter, with increased revenues from the
semisubmersible rigs Pride Rio de Janeiro and Pride Portland,
following the Brazilian joint venture acquisition, being
substantially offset by out-of-service time on the Pride North
America. This out-of-service time on the rig and corresponding
repair costs, combined with the costs associated with the
termination of the Brazilian joint venture agency agreement,
impairment charges and higher engineering project costs
contributed significantly to the US$11.7 million reduction in
earnings from operations for the deepwater fleet to US$27.5
million in the fourth quarter from US$39.2 million in the third
quarter of 2006.
Revenues from the segment's six mid-water semisubmersible rigs
improved to US$64.9 million in the fourth quarter of 2006, an
80% increase from the third quarter, led principally by the
return to service of the semisubmersible rig Pride Venezuela
following a shipyard visit that kept the rig out-of-service for
the entire third quarter of 2006. The rig's dayrate improved to
US$244,000 per day from a previous dayrate of US$120,000,
contributing in the fourth quarter of 2006 to improved earnings
from operations for the mid-water fleet of US$14.7 million, up
from US$6.8 million in the preceding quarter of 2006.
The segment's 28 jackup rigs recorded revenues of US$185.6
million during the fourth quarter of 2006, a 6% improvement from
the third quarter, while earnings from operations improved
slightly to US$85.9 million, from US$84.5 million in the
preceding quarter. The operating performance was achieved
despite a generally weaker environment for U.S. Gulf of Mexico-
based jackup rigs, where average revenue per day declined to
US$102,500 per day in the fourth quarter of 2006, from
US$111,600 per day in the preceding quarter. Several rigs
returned to service in the fourth quarter following the
completion of shipyard programs, including the Pride California,
Pride Nevada, and Pride Oklahoma. In addition, the jackup rig
Pride Louisiana returned to active status during the quarter
following 71 days of idle time in the third quarter of 2006. In
February 2007, the Pride Tennessee and Pride Arkansas completed
maintenance and periodic surveys and have departed for Mexico to
begin multi-year contracts with Pemex.
Latin America Land Segment
Revenues from the Latin America Land segment were US$159.6
million during the fourth quarter of 2006, essentially flat with
revenues in the third quarter of 2006, despite the impact of a
seven-day general strike against the energy industry that
affected drilling, workover and service operations in Argentina.
Earnings from operations in this segment declined 12% to US$29.0
million over the previous quarter, due primarily to costs
associated with the labor strike. During the quarter, the
company mobilized an idle land-drilling rig from Kazakhstan to
Colombia following the award of a three-year contract, and
relocated two workover rigs and a land drilling rig to Argentina
from Venezuela and Bolivia, respectively. Average daily revenue
per rig for the land drilling rig fleet improved to US$15,700
during the fourth quarter of 2006, compared to US$15,600 in the
preceding quarter. Average daily revenue for the land workover
rig fleet was US$6,800 in the fourth quarter of 2006, compared
to US$6,200 during the third quarter.
E&P Services Segment
Revenues from the E&P Services segment were US$51.2 million for
the three months ended Dec. 31, 2006, down from US$55.2 million
in the preceding quarter of 2006, while income from operations
totaled US$7.2 million, compared to US$8.3 million in the third
quarter of 2006. Segment results in the quarter were negatively
impacted by the seven-day general strike in Argentina.
For the 12 months ended Dec. 31, 2006, cash flow from operations
totaled US$611.7 million, up from US$321.9 million in 2005. The
company reported total debt at Dec. 31, 2006, of US$1,386.6
million, representing a US$319.5 million increase from total
debt at Sept. 30, 2006. The increase in total debt during the
quarter related to the acquisition of the Brazilian joint
venture, including net borrowings of US$50 million under the
revolving credit facility to fund the purchase and the
consolidation of US$284 million of joint venture debt.
Capital expenditures during the three months ended
Dec. 31, 2006, were US$130 million, resulting in total capital
expenditures for the year of US$356 million compared to capital
expenditures of US$157 million for the 12 months ended
Dec. 31, 2005. The company anticipates completing in 2007 its
two-year major capital expenditures program, with capital
expenditures during the year expected to be in the range of
US$400 million. Following 2007, capital expenditures are
expected to be significantly lower.
Guidance
Financial results for the first quarter of 2007 are expected to
improve from results achieved in the fourth quarter of 2006,
adjusted for the impact of the Brazilian agency buyout costs,
impairment costs and ongoing investigation charges. First
quarter 2007 earnings per share are expected to be US$0.57 to
US$0.60 and reflect the impact of the current softness in the
U.S. Gulf of Mexico market.
Headquartered in Houston, Texas, Pride International Inc.
(NYSE:PDE) -- http://www.prideinternational.com/-- is a
drilling contractor. The company provides onshore and offshore
drilling and related services in more than 25 countries,
operating a diverse fleet of 278 rigs, including two ultra-
deepwater drillships, 12 semi submersible rigs, 28 jackup rigs,
18 tender-assisted, barge and platform rigs, and 218 land rigs.
Pride also provides a variety of oilfield services to customers
in Argentina, Venezuela, Bolivia and Peru.
* * *
As reported in the Troubled Company Reporter on Sept. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on contract driller Pride International Inc. and
removed the rating from CreditWatch with negative implications.
The outlook is stable. As of June 30, 2006, Houston, Texas-
based Pride had US$1.01 billion in adjusted debt.
As reported in the Troubled Company Reporter on Aug. 17, 2006,
Fitch Ratings raised Pride International's Issuer Default Rating
to 'BB' from 'BB-'. Fitch also raised the ratings on Pride's
senior secured revolving credit facility, senior unsecured notes
and their convertible senior notes.
=====================
P U E R T O R I C O
=====================
ADVANCED MEDICAL: S&P Affirms BB- Ratings with Stable Outlook
-------------------------------------------------------------
Standard & Poor's Ratings Services removed its ratings on
Advanced Medical Optics Inc. from CreditWatch with negative
implications, where they were placed on Jan. 8, 2007, reflecting
the company's intention to acquire IntraLase Corp. for US$808
million. The 'BB-' ratings are affirmed, and the outlook is
stable.
The rating on Advanced Medical reflects technology risk,
competitive risks, and the ophthalmic company's aggressive
efforts to build upon its well-established position as a midsize
player in the industry. These efforts, however, have broadened
its product and geographic diversity and provided a leadership
position in its markets. Although Advanced Medical generates
solid cash flow, its debt leverage is high.
"Advanced Medical's diversified product base should mitigate
downside potential in the event that laser vision correction
sales are less robust than anticipated," said Standard & Poor's
credit analyst Cheryl E. Richer. "But the company's propensity
for acquisitions and share repurchases preclude a higher rating
for the foreseeable future."
Based in Santa Ana, California, Advanced Medical Optics, Inc.
(NYSE: EYE) -- http://www.amo-inc.com/-- develops, manufactures
and markets ophthalmic surgical and contact lens care products.
AMO employs approximately 3,600 worldwide. The company has
operations in 24 countries and markets products in 60 countries
including Puerto Rico and Brazil.
ANGIOTECH: Moody's Lowers Corporate Family Rating to B2 from B1
---------------------------------------------------------------
Moody's Investors Service downgraded Angiotech Pharmaceuticals,
Inc.'s Corporate Family Rating to B2 from B1 with a stable
ratings outlook. The SGL-3 rating is affirmed.
The B2 Corporate Family Rating reflects lower revenue and EBITDA
guidance for 2007 related to a drop in royalty revenue from
Boston Scientific's Taxus drug-eluting stent. In 2006,
royalties from the sale of Taxus accounted for almost 50% of the
company's annual revenues. Based on updated cash flow
projections, Moody's believes that the company's cash flow
coverage of debt and other financial metrics are more reflective
of a B2-rated company.
Currently, Angiotech Pharmaceuticals' implied rating under
Moody's Global Medical Products and Device Methodology is "B2"
based on its December 2006 financial statements.
Angiotech Pharmaceuticals' speculative grade liquidity
assessment of SGL-3 reflects the absence of access to external
liquidity, lower revenue and cash flow guidance and
deteriorating operating trends. While Moody's expects that
Angiotech still has sufficient coverage of working capital,
capital expenditures and other expenses over the next twelve
months, given its current cash position and free cash flow;
however, the company's financial flexibility remains limited.
Moody's downgraded these ratings:
-- Corporate Family Rating, B2 from B1
-- Probability of Default Rating, B1 from Ba3
-- US$325 Senior Unsecured Notes, B1, LGD3, 46% from Ba3
-- US$250 Senior Subordinated Notes, B3, LGD6, 91% from B2
Moody's affirmed these ratings:
-- Speculative Grade Liquidity assessment, SGL-3
-- Family LGD assessment LGD4, 65%
The ratings outlook is stable.
Angiotech Pharmaceuticals, Inc., founded in 1992, based in
Vancouver, Canada, is a specialty pharmaceutical company that
focuses on drug-device combinations and drug-loaded surgical
biomaterial implants. The company reported over US$315 million
in total revenue for the twelve months ended Dec. 31, 2006.
Following the acquisition of American Medical Instruments
Holdings, Inc. in the first quarter of 2006, Angiotech expanded
beyond its strong R&D capabilities to encompass the
manufacturing and marketing of a wide range of single use,
specialty medical devices. Angiotech has several specialized
direct sales and distribution organizations in Puerto Rico, the
United States, the United Kingdom, Denmark and Switzerland, as
well as significant manufacturing capabilities.
CENTENNIAL COMM: Completes Unit Sale to Trilogy for US$80 Mil.
--------------------------------------------------------------
Centennial Communications Corp. has completed the sale of its
wholly owned subsidiary, All America Cables and Radio Inc. to
Trilogy International Partners for approximately US$80 million
in cash.
Centennial Dominicana operates an integrated wireless and
broadband network that served approximately 388,900 subscribers
as of Aug. 31, 2006. Adjusted operating income and capital
expenditures attributable to Centennial Dominicana for the
fiscal year ended May 31, 2006, were both approximately US$11
million. Waller Capital Corporation, a telecommunications-
focused investment bank, served as exclusive financial advisor
to Centennial on this transaction. Trilogy International's
exclusive financial adviser was Deutsche Bank Securities, Inc.
Centennial Communications also announced that it will redeem
US$80 million aggregate principal amount of its US$125 million
outstanding 10-3/4 percent senior subordinated notes due
Dec. 15, 2008. The redemption will occur on or about
April 11, 2007, at face value with no prepayment penalties.
"Taking this step to sell our Dominican Republic business is
consistent with our renewed commitment to deleveraging," said
Michael J. Small, Chief Executive Officer of Centennial.
Headquartered in Wall, New Jersey, Centennial Communications
Corp. (NASDAQ: CYCL) -- http://www.centennialwireless.com/--
provides regional wireless and integrated communications
services in the United States and the Puerto Rico with
approximately 1.1 million wireless subscribers and 387,500
access lines and equivalents. The US business owns and operates
wireless networks in the Midwest and Southeast covering parts of
six states. Centennial's Puerto Rico business owns and operates
wireless networks in Puerto Rico and the U.S. Virgin Islands and
provides facilities-based integrated voice, data and Internet
solutions. Welsh, Carson, Anderson & Stowe and an affiliate of
the Blackstone Group are controlling shareholders of Centennial.
* * *
Centennial Communications Completes Sale of Dominican Republic
Business; Company Announces Redemption of $80 Million of Its 10-
3/4 Percent Senior Subordinated Notes Due 2008. Centennial
Communications' 10% Senior Floating Rate Notes due 2013
carry Moody's Investors Service's Caa1 rating, Standard & Poor's
CCC rating and Fitch's CCC rating.
HOME PRODUCTS: Panel Hires Giuliani Capital as Financial Advisor
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave the
Official Committee of Unsecured Creditors in Home Products
International Inc. and Home Products International-North
America Inc.'s chapter 11 cases authority to retain Giuliani
Capital Advisors LLC as its financial advisor, nunc pro tunc to
Jan. 3, 2007.
As reported in the Troubled Company Reporter on Feb. 14, 2007,
before the Committee was formed, Giuliani assisted an ad hoc
committee of holders of the Debtors' outstanding 9.625% Senior
Subordinate Notes due 2008 in structuring, evaluating, and
negotiating a restructuring of the Debtors.
As financial advisor, the firm will:
(a) assist the Official Committee in the analysis of the
Debtors' business plans, cash flow forecasts, financial
projections, and cash flow reporting;
(b) advise the Official Committee with respect to available
capital restructuring, sale, and financing alternatives
for the Debtors, including recommending specific courses
of action, and assisting with the design, structuring,
and negotiation of alternative restructuring or
transaction structures;
(c) advise the Official Committee regarding financial
information prepared by the Debtors and in the Official
Committee's coordination of communication with interested
parties and their advisors;
(d) advise the Official Committee in preparing for, meeting
with, and presenting information to interested parties
and their advisors;
(e) advise the Official Committee, and coordinate with
counsel to the Official Committee, in the development of
a restructuring plan for the Debtors and in the
negotiation with parties-in-interest or in the sale of a
portion or substantially all of the Debtors' assets,
whether structured as a stock transfer, merger, purchase,
and assumption transaction or other business combination;
(f) advise the Official Committee as to the Debtors'
proposals from third parties for new sources of capital
or the sale of the Debtors; and
(g) other services as may be reasonably requested in writing
from time to time by the Official Committee and as agreed
by the firm.
The firm charges a monthly advisory fee of $75,000. In
connection with either a recapitalization or restructuring of
the Debtors, either out-of-court or through a bankruptcy, the
firm will be entitled to a $500,000 transaction fee payable upon
the successful consummation of that transaction. The firm will
credit against the Transaction Fee (i) $73,750, (ii) one-half of
the first Monthly Advisory Fee actually paid to Giuliani, plus
(iii) all other Monthly Advisory Fees in full actually paid to
Giuliani until that Transaction Fee is fully credited.
In connection with its work for the Ad Hoc Committee, the
Debtors paid Giuliani US$223,857 in prepetition fees and
expenses. It included the US$75,000 advance payment.
Phil Van Winkle, a managing director at Giuliani Capital
Advisors LLC, assures the Court that his firm does not hold or
represent any interest adverse to the Debtors and their estates,
and has no connection to the Debtors, their creditors, and other
known significant parties-in-interest in the Debtors' cases.
About Home Products
Headquartered in Chicago, Illinois, Home Products International,
Inc. -- http://www.hpii.com/-- designs, manufactures, and
markets ironing boards, covers, and other high-quality, non-
electric consumer houseware products. The Debtor's product
lines include laundry management products, bath and shower
organizers, hooks, hangers, home and closet organizers, and food
storage containers. Their products are sold under the HOMZ
brand name, and are distributed to hotels, discounters, and
other retailers such as Wal-Mart, Kmart, Sears, Home Depot, and
Lowe's.
The company and its affiliate, Home Products International-North
America, Inc., filed for chapter 11 protection on Dec. 20, 2006
(Bankr. D. Del. Case Nos. 06-11457 and 06-11458). Ronald
Barliant, Esq., and Kathryn A. Pamenter, Esq., at Goldberg Kohn,
Bell, Black, Rosenbloom & Moritz, Ltd., and Mark D. Collins,
Esq., and Michael J. Merchant, Esq., at Richards, Layton &
Finger P.A. represent the Debtors. When the Debtors filed for
protection from their creditors, they listed estimated assets
between US$1 million and US$100 million and debts of more than
US$100 million. The Debtors' exclusive period to file a chapter
11 plan of reorganization expires on April 18, 2007.
MOTHERS WORK: Will Redeem US$90 Million of 11-1/4% Senior Notes
---------------------------------------------------------------
Mothers Work Inc. has entered into a Term Loan and Security
Agreement for a US$90 million senior secured Term Loan B due
March 13, 2013, the proceeds of which will be used to redeem the
remaining US$90 million principal amount of the company's
11-1/4% Senior Notes due Aug. 1, 2010. The company expects that
the refinancing of the Senior Notes with the Term Loan will
result in a decrease in annualized pre-tax interest expense of
approximately US$3.5 million, yielding an expected annualized
increase to earnings per share of approximately US$0.34 per
share on an after-tax basis. The Term Loan bears interest rate
at the LIBOR rate plus 2.50% (or, at the company's option, the
prime rate of interest plus 1.0%). Per the Term Loan agreement,
beginning with the determination of the company's financial
results for its full year fiscal 2007 (fiscal year ending
Sept. 30, 2007), the company's LIBOR-based borrowing rate option
under the Term Loan will decrease by 0.25%, to the LIBOR rate
plus 2.25%, if the company achieves a specified leverage ratio.
The Term Loan can be prepaid at the company's option, in part or
in whole, without any prepayment premium or penalty. Bank of
America Securities LLC arranged the Term Loan financing. In
addition, as part of the transaction, the company amended its
existing US$60 million revolving credit facility in order to
permit the new Term Loan financing. This amendment of the
credit facility also extends its maturity from October 15, 2009
to March 13, 2012, modestly increases its size to US$65 million,
and reduces the LIBOR-based interest rate option under the
facility by 0.25%. Bank of America, N.A. continues as the agent
for the revolving credit facility.
The company will redeem the remaining US$90 million principal
amount of its 11-1/4% Senior Notes at a price of 105.625% of
principal amount, plus accrued interest, pursuant to the
optional redemption provisions of the indenture of the Senior
Notes. The company issued the required notice of redemption to
the trustee for the Senior Notes and expects the redemption to
be completed on or about April 18, 2007.
Edward M. Krell, Executive Vice President -- Chief Financial
Officer of Mothers Work, noted, "We are very pleased with our
highly successful Term Loan financing, which enables us to
redeem the remaining US$90 million principal amount of our
11-1/4% Senior Notes with significantly lower cost debt. We
expect that the refinancing of the Senior Notes with the Term
Loan will result in a decrease in annualized pre-tax interest
expense of approximately US$3.5 million, yielding an expected
annualized increase to earnings per share of approximately
US$0.34 per share on an after-tax basis. The amount of actual
future interest savings will depend on future changes in the
LIBOR rate as well as the extent to which we enter into
financial hedging arrangements to reduce the impact of changes
in the LIBOR rate on our interest expense. We expect the
redemption of the Senior Notes will result in a one-time 'Loss
on extinguishment of debt' of approximately US$7.3 million on a
pre-tax basis, consisting of the approximately US$5.1 million
cash redemption premium and approximately US$2.2 million of non-
cash expense from the write-off of unamortized deferred
financing costs and debt issuance costs. We expect this one-
time charge to be approximately US$0.72 per share on an after-
tax basis, with such charge to be recognized in our fiscal third
quarter upon the redemption of the Senior Notes. We believe
this refinancing represents an important step in continuing to
help increase shareholder value by reducing our ongoing use of
cash for interest expense and providing us with a flexible debt
structure whereby we can, at our option, utilize future cash
flow to prepay debt without any prepayment premium or penalty.
The amendment of our revolving credit facility also provides us
with continued significant financial liquidity."
Mothers Work, Inc. (Nasdaq: MWRK) with headquarters in
Philadelphia, Pennsylvania, is the largest independent retailer
of maternity apparel in the United States. The company operates
1,582 retail locations, including 798 stores in 50 states,
Puerto Rico and Canada under the Motherhood Maternity, Mimi
Maternity, A Pea in the Pod and Destination Maternity trade
names, in addition to its brand-specific Internet web stores.
Revenues for the fiscal year ended Sept. 30, 2006, were US$603
million.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Moody's Investors Service upgraded the corporate
family rating of Mothers Work, Inc., to B2 from B3 and its
probability of default rating to B2 from B3. The rating outlook
is stable. The upgrade is a result of the company's sustained
improvement in operating performance combined with a sizable
debt reduction, which has led to a solid improvement in credit
metrics. In addition, Moody's assigned a B2 rating to Mothers
Work's new proposed senior secured Term Loan B. The proceeds
from the proposed US$90 million Term Loan B would be used to
redeem its existing 11.25% Senior Notes.
SPANISH BROADCASTING: Earns US$5.9 Mil. in 2006 Fourth Quarter
--------------------------------------------------------------
Spanish Broadcasting System Inc. reported its financial results
for the quarter and fiscal year ended Dec. 31, 2006.
Results and Discussions
For the quarter ended Dec. 31, 2006, consolidated net revenue
totaled US$44.4 million compared to US$46.9 million for the same
prior year period, resulting in a decrease of 5%. Radio net
revenue was US$42.7 million compared to US$46.9 million for the
same prior year period, resulting in a decrease of 9%, primarily
from promotional events, and, to a lesser extent, local and
national revenues, and other revenues related to the Local
Marketing Agreement fees received for the previously sold Los
Angeles stations (KZAB-FM and KZBA-FM). This radio net revenue
decrease was primarily in the company's Los Angeles, New York,
and Miami markets. In addition, the company's new television
segment, "MEGA TV", which debuted on March 1, 2006, generated
net revenue of US$1.7 million, primarily from local revenues.
For the quarter ended Dec. 31, 2006, operating income totaled
US$5.9 million compared to US$10.8 million for the same prior
year period, resulting in a decrease of 46%. Operating income
before depreciation and amortization and gain on the sale of
assets, net, a non-GAAP measure, totaled US$7.0 million compared
to US$12.4 million for the same prior year period, resulting in
a decrease of 43%. Excluding its television segment's operating
losses of US$5.2 million and US$2.3 million for the current and
prior period, respectively, and SFAS No. 123(R) non-cash stock-
based compensation expense of US$0.4 million, adjusted operating
income before depreciation and amortization and gain on the sale
of assets, net, a non-GAAP measure, totaled US$12.7 million
compared to US$14.7 million for the same prior year period,
resulting in a decrease of 14%. The decrease was primarily
attributed to the decrease in its radio net revenue. Same
Station Operating Income before Depreciation and Amortization
and Gain on the Sale of Assets, net, a non-GAAP measure, totaled
US$7.6 million compared to US$12.1 million for the same prior
year period, resulting in a decrease of 37%.
For the quarter ended Dec. 31, 2006, income before income taxes
and discontinued operations totaled US$0.9 million compared to
US$4.0 million for the same prior year period. The decrease
resulted mainly from the decrease in operating income, offset by
a decrease in Interest Expense, net.
For the fiscal year ended Dec. 31, 2006, net revenue totaled
US$176.9 million compared to US$169.8 million for the same prior
year period, resulting in growth of 4%. Radio net revenue
totaled US$172.1 million compared to US$169.8 million for the
same prior year period, resulting in growth of 1%, primarily
from local revenue. This radio net revenue growth was offset by
decreases in promotional events revenue, national revenues and
other revenues mainly related to LMA fees received for the
previously sold Los Angeles stations (KZAB-FM and KZBA-FM). The
radio net revenue growth of 1% was primarily in the company's
San Francisco and Puerto Rico markets, offset by decreases in
its New York, Los Angeles, Chicago and Miami markets. Its new
television segment, "MEGA TV", which debuted on March 1, 2006,
generated start-up net revenue of US$4.8 million, primarily from
local revenues.
For the fiscal year ended Dec. 31, 2006, operating income
totaled US$84.2 million compared to US$48.2 million for the same
prior year period, resulting in an increase of 75%. Operating
income before depreciation and amortization and gain on the sale
of assets, net, a non-GAAP measure, totaled US$37.4 million
compared to US$52.3 million for the same prior year period,
resulting in a decrease of 29%. Excluding the company's
television segment's operating losses of US$20.0 million and
US$3.2 million for the current and prior period, respectively,
and SFAS No. 123(R) non-cash stock-based compensation expense of
US$2.0 million, adjusted operating income before depreciation
and amortization and gain on the sale of assets, net, a non-GAAP
measure, totaled US$59.4 million compared to US$55.5 million for
the same prior year period, resulting in an increase of 7%.
This increase was primarily attributed to the increase in
radio's operating income. Same station operating income before
depreciation and amortization and gain on the sale of assets,
net, a non-GAAP measure, totaled US$50.0 million compared to
US$51.0 million for the same prior year period, resulting in a
decrease of 2%.
For the fiscal year ended Dec. 31, 2006, income before income
taxes and discontinued operations totaled US$61.0 million
compared to a loss of US$(18.2) million for the same prior year
period. The increase resulted mainly from the gain on the sale
of assets, net, of US$50.8 million related to the sale of the
company's radio stations KZAB-FM and KZBA-FM and a decrease in
interest expense, net, of US$15.4 million due to its 2005 long-
term debt refinancing and the repayment of its US$100.0 million
second lien credit facility in 2006, as well as the decrease in
the Loss on Early Extinguishment of Debt that occurred in 2005.
"During 2006, we continued to build our brands and strengthen
our Hispanic multi-media platform," commented Raul Alarcon, Jr.,
Chairman and CEO. "Despite solid audience shares, our fourth
quarter radio revenues were below our expectations due to a soft
advertising environment in some of our larger markets, primarily
New York and Los Angeles. As in prior periods of market
volatility, we are confronting short-term market challenges with
a long-term emphasis on consistently delivering Hispanic
listeners to our advertisers. We are encouraged with Arbitron's
Fall ratings book, which showed solid audience share gains in
our key markets. Furthermore, Mega TV in Miami, while still in
an early stage of development, continues to build a dynamic
audience base in South Florida. Our Internet properties have
also garnered an impressive user base, and we remain focused on
monetizing our attractive user demographics. Overall, we are
pleased with the progress we are making in positioning our
assets to excel in a dynamic media marketplace. We believe the
investments we are making in our business today will lead to
enhanced value for our shareholders."
First Quarter 2007 Outlook
The company's quarterly guidance will include an estimated range
of the following: radio net revenue growth, television operating
results before depreciation and amortization, and capital
expenditures.
For the first quarter ending March 31, 2007, the company expects
its radio net revenue to decrease in the mid single digit range
over the comparable prior year period. Also, the company
expects its television segment in the first quarter to generate
operating losses before depreciation and amortization of
approximately US$4.0 million. Its total first quarter capital
expenditures are projected to be in the range of US$1.5 million
to US$2.5 million.
Spanish Broadcasting System Inc. (Nasdaq: SBSA) ---
http://www.spanishbroadcasting.com/-- is the largest Hispanic-
controlled radio broadcasting company in the United States. SBS
owns and operates 20 radio stations located in the top Hispanic
markets of New York, Los Angeles, Miami, Chicago, San Francisco
and Puerto Rico, including the #1 Spanish-language radio station
in America, WSKQ-FM in New York City, as well as 3 of the Top 4
rated radio stations airing the Tropical, Regional Mexican,
Spanish Adult Contemporary and Hurban format genres and the
highest billing Latino-formatted stations in each of the three
largest U.S. Hispanic markets. The Company also produces live
entertainment concerts and events throughout the U.S. and Puerto
Rico.
* * *
As reported in the Troubled Company Reporter on Dec. 4, 2006,
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Miami, Florida-based radio and
television broadcaster Spanish Broadcasting System Inc. to 'B-'
from 'B'. At the same time, we removed the ratings from
CreditWatch, where they were placed with negative implications
on Sept. 8, 2006.
=================================
T R I N I D A D & T O B A G O
=================================
MIRANT CORP: Earns US$1.3 Bil. for Quarter Ended Dec. 31, 2006
--------------------------------------------------------------
Mirant Corporation reported net income of US$1.324 billion
for the quarter ended Dec. 31, 2006, compared to net income
of US$207 million for the same period in 2005. For 2006, Mirant
reported net income of US$1.864 billion, compared to a net loss
of US$1.307 billion for 2005. Earnings per share for the fourth
quarter were US$4.89 per diluted share and earnings per share
for the year were US$6.28 per diluted share.
In the fourth quarter of 2006, the company recognized tax
benefits of US$845 million related to the pending sale of its
Philippine business consisting of US$124 million related to the
reversal of a liability for Philippine dividend withholding
taxes with respect to Philippine earnings which will not be
repatriated as dividends and US$721 million related to book/tax
basis differences in the shares of the entity being sold and to
the release of the valuation allowance previously recorded
against NOLs and other deferred tax assets, which will be used
to offset the taxable gain from the sale. The benefit of US$721
million represents an acceleration into 2006 of the tax effects
of the sale of the Philippine business. As a result, the gain
from that transaction to be recorded in 2007 will be treated as
fully taxable for financial reporting purposes in that year.
Mirant reported adjusted net income of US$186 million for the
fourth quarter of 2006, resulting in adjusted earnings per
diluted share of US$0.69. Adjusted net income for the quarter
excludes the positive effects of the total tax benefits of
US$845 million, a US$221 million gain recognized for the
settlement of the New York property tax dispute and the net
effect of US$72 million of other non-recurring items.
Mirant reported adjusted net income for 2006 of US$644 million,
resulting in adjusted earnings per diluted share of US$2.17 for
the year. Adjusted net income for the year excludes the
positive effect of the total tax benefits of US$845 million,
unrealized mark-to-market gains of US$667 million, the US$221
million gain recognized for the settlement of the New York
property tax dispute and the negative effect of a US$375 million
impairment for the U.S. natural gas plants, a US$120 million
impairment for Bowline unit 3 and the net effect of US$18
million of other non-recurring items.
Adjusted EBITDA from continuing operations was US$171 million
for the quarter, compared to a loss of US$31 million for the
same period in 2005. For 2006, adjusted EBITDA from continuing
operations was US$641 million, compared to US$169 million for
the same period in 2005. The period over period increases for
the quarter and the year resulted primarily from an increase in
the realized value of hedges for the 2006 periods compared to
the 2005 periods, offset in part by lower power prices and lower
generation volumes in 2006.
Net cash provided by operating activities during the fourth
quarter was US$289 million. Net cash provided by operating
activities was US$1.377 billion for 2006, excluding bankruptcy
payments of US$814 million.
As of Dec. 31, 2006, the company's continuing operations
had cash and cash equivalents of US$1.142 billion, total
available liquidity of US$1.8 billion and total outstanding debt
of US$3.275 billion.
Adjusted EBITDA from discontinued operations was US$129 million
for the quarter, compared to US$141 million for the same period
in 2005. For 2006, adjusted EBITDA from discontinued operations
was US$662 million, compared to US$610 million for the same
period in 2005.
Asset Sale Process
In December, Mirant entered into a definitive agreement for
the sale of its Philippine business. The transaction is
expected to close in the second quarter of 2007. In January,
the company entered into a definitive agreement for the sale of
six U.S. natural gas plants. The transaction is expected to
close in the second quarter of 2007. The sales process for the
company's Caribbean businesses is underway; the sale is expected
to close in mid-2007.
As previously announced, Mirant plans to continue returning
cash to its shareholders upon completion of its planned asset
and business sales. The amount of cash returned will be
determined based on the outlook for the continuing business (1)
to preserve the credit profile of the continuing business, (2)
to maintain adequate liquidity for expected cash requirements
including, among other things, capital expenditures for the
continuing business, and (3) to retain sufficient working
capital to manage fluctuations in commodity prices. Consistent
with Mirant North America's debt covenants, proceeds from the
sales of the Zeeland and Bosque plants, expected to be
approximately US$500 million, will be reinvested in and/or used
to retire debt of Mirant North America.
Chairman's Comment
"Mirant's strong financial performance and the return of
US$1.3 billion to shareholders enabled us to create significant
shareholder value in the year since the company emerged from
bankruptcy," said Edward R. Muller, chairman and chief executive
officer. "In addition, we have made significant progress on the
divestiture program announced in mid-2006."
Guidance
Mirant raised its 2007 adjusted EBITDA guidance from US$962
million to US$1.089 billion for continuing operations and
provided initial 2008 adjusted EBITDA guidance for continuing
operations of US$914 million.
The company also adjusted its projections for the capital
expenditures required to comply with the Maryland Healthy Air
Act. Previously, the company had expected the expenditures to
be between US$1.3 to US$1.5 billion by the end of 2009. In
light of changes in the scope of the work and rising costs for
materials, the company now expects those expenditures to be
approximately US$1.6 billion.
Earnings Call
Mirant hosted an earnings call to discuss its fourth quarter
2006 financial results and outline business priorities. A
recording of the event is available for playback on the
company's Web site. A replay is also available by dialing
888.203.1112 (International 719.457.0820) and entering the pass
code 2747399.
A full-text copy of Mirant Corporation and its affiliate-
debtors' 10-K report is available at the Securities and Exchange
Commission at no charge at http://ResearchArchives.com/t/s?1b3a
About Mirant Corporation
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally. Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring. When the Debtors
filed for protection from their creditors, they listed
$20,574,000,000 in assets and $11,401,000,000 in debts. The
Debtors emerged from bankruptcy on Jan. 3, 2006. Mirant NY-Gen,
LLC, Mirant Bowline, LLC, Mirant Lovett, LLC, Mirant New York,
Inc., and Hudson Valley Gas Corporation, were not included and
have yet to submit their plans of reorganization. (Mirant
Bankruptcy News, Issue No. 117; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
=============
U R U G U A Y
=============
HIPOTECARIO DEL URUGUAY: Earns UYU1.61 Billion in 2006
------------------------------------------------------
The Uruguayan central bank posted on its Web site that Banco
Hipotecario del Uruguay had a UYU1.61-billion profit in 2006.
Business News Americas relates that Hipotecario del Uruguay lost
about UYU219 million in 2005.
The central bank told BNamericas that the 2006 profit represents
a 4.90% return on assets.
According to BNamericas, Hipotecario del Uruguay had UYU1.53
billion in net interest income in 2006, compared to a UYU929-
million net interest loss in 2005. Its fee income increased
21.7% to UYU42.4 million, with provision expenses decreasing
82.6% to UYU706 million.
The report says that Hipotecario del Uruguay's mortgage loans
dropped 2.2% to UYU16.5 billion in 2006, compared to 2005. Its
past-due loan ratio declined further to 82.6% from 68.4%.
Hipotecario del Uruguay's assets remained virtually unchanged at
UYU31.8 billion as of Dec. 31, 2006, compared to Dec. 31, 2005,
BNamericas notes. Its deposits were also the same, at UYU31.2
billion.
Moody's Investors Service analyst Maria Andrea Manavella
commented to BNamericas, "The bank's overall strength is still
very low. If it wasn't for support provided by its main
shareholder -- the government -- its debt and deposits ratings
would be even lower."
Moody's rates Hipotecario del Uruguay at the lowest level of E,
though it had upgraded the bank's long-term foreign currency
deposit rating to B2 from Caa1 after raising Uruguay's country
ceiling for foreign currency bank deposits, BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2006, Moody's Investors Service assigned these ratings
on Banco Hipotecario del Uruguay:
-- Foreign currency deposit rating: B2 from Caa1,
stable outlook
-- National scale rating for foreign currency deposits:
A3.uy from Ba2.uy, with a stable outlook
-- National scale foreign currency debt rating: A2.uy
from Baa2.uy
=================
V E N E Z U E L A
=================
PHELPS DODGE: Freeport To Offer US$6B Notes to Fund Phelps Buy
--------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. intends to offer a total of
US$6 billion aggregate principal amount of senior notes to the
public in two tranches. The first tranche will be 8-year senior
notes and the second tranche will be 10-year senior notes.
Freeport-McMoRan plans to use the net proceeds from the offering
to fund a portion of the Phelps Dodge Corp. acquisition
consideration and pay related fees and expenses. The closing of
this offering is conditioned on the Phelps Dodge acquisition.
As previously disclosed, each company will hold a special
meeting of stockholders today, March 14, 2007, to vote on the
proposed acquisition of Phelps Dodge by Freeport-McMoRan.
The joint book-running managers for the offering are JPMorgan
and Merrill Lynch & Co. Copies of the preliminary prospectus
supplement relating to this offering may be obtained by
contacting:
J.P. Morgan Securities Inc.
270 Park Avenue, 8th Floor
New York, New York, 10017
or
Merrill Lynch & Co.
4 World Trade Center
New York, New York, 10080
About Freeport-McMoran Copper & Gold Inc.
Freeport-McMoRan Copper & Gold Inc. is a Louisiana based
producer of copper and gold through its Grasberg mine in
Indonesia. Freeport's revenue in 2006 was US$5.8 billion.
About Phelps Dodge Corp.
Phelps Dodge -- http://www.phelpsdodge.com/-- is among the
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.
Phelps Dodge has operations in Venezuela, Thailand, China,
Netherlands, Philippines, Japan, United Kingdom, among others.
PHELPS DODGE: Fitch Cuts 7.375% Notes' Rating to BB- from BBB
-------------------------------------------------------------
Fitch assigned the ratings to Freeport-McMoRan Copper & Gold and
downgraded the ratings of Phelps Dodge in connection with FCX's
pending acquisition of Phelps Dodge for approximately
US$25.9 billion in cash and stock.
The transaction is subject to the approval of the shareholders
of FCX and Phelps Dodge; the vote is scheduled March 14, 2007
with closing expected March 19, 2007. The transaction is
expected to give rise to about US$16 billion in additional debt.
Assigned:
* Freeport-McMoRan Copper & Gold
-- Issuer Default Rating 'BB';
-- US$500 million PT Freeport Indonesia/FCX Secured Bank
Revolver 'BBB-';
-- US$1 billion Secured Bank Revolver 'BB';
-- US$2.5 billion Secured Bank Term Loan A 'BB';
-- US$7.5 billion Secured Bank Term Loan B 'BB';
-- Existing Notes to be secured 'BB';
-- 10.125% senior notes due 2010;
-- 6.875% notes due 2014;
-- 7% convertible notes due 2011 'BB-';
-- FCX New Unsecured Notes due 2015 and 2017 at 'BB-'; and
-- FCX Convertible Preferred Stock at B+.
* Phelps Dodge
-- Cyprus Amax 7.375% Notes due May 2007, to be secured
and to be guaranteed by FCX downgraded from 'BBB' to
'BB-';
-- Senior Unsecured Notes and Debentures to be guaranteed
by FCX downgraded from 'BBB' to 'BB-';
-- 8.75% notes due 2011;
-- 7.125% debentures due 2027;
-- 9.50% notes due 2031; and
-- 6.125% notes due 2034.
Phelps Dodge Bank Revolver ratings have been withdrawn.
Some US$18.7 billion in securities are affected. The Ratings
Outlook is Stable.
The debt ratings of Phelps Dodge have been removed from Ratings
Watch Negative.
Pro Forma Dec. 31, 2006, Debt of about US$17.6 billion compares
at 2.26x pro forma 2006 EBITDA of US$7.8 billion. Fitch notes
that earnings and cash flows are highly levered to metals prices
and US$0.20/lb. decline in copper prices could cut EBITDA by
US$800 million over a twelve-month period. In particular, the
price of copper averaged US$3.05/lb. on the London Metal
Exchange in 2006 and US$2.57/lb. for the first two months of
2007.
Liquidity is quite strong with slight usage expected on the
US$1.5 billion in revolvers for letters of credit. Pro forma
Dec. 31, 2006, cash balances are US$3.4 billion.
Results of both companies continue to benefit from strong metals
prices albeit at lower levels than the very high prices in 2006.
Metals prices, over the short to medium term, should allow
significant debt reduction and permit leverage to remain in a
range consistent with the ratings in a modestly lower earnings
environment.
The PT Freeport Revolver benefits from a superior security
package and therefore warrants a higher rating than the IDR.
The bank facilities and some of FCX's notes will be secured by:
* the stock of certain domestic subsidiaries and 65% of
certain first-tier foreign subsidiaries,
* the intercompany indebtedness owed to FCX by its
subsidiaries, and
* deposits and investment accounts of FCX and will be
unconditionally guaranteed by certain of FCX's existing and
subsequently acquired or organized subsidiaries.
The Cyprus Amax Notes will be secured by pledges of the
outstanding shares of capital stock of Phelps Dodge's wholly
owned domestic subsidiaries and a portion of the capital stock
of Phelps Dodge's wholly owned first-tier foreign subsidiaries;
these are due in the very near term and repayment is supported
by strong liquidity.
HARVEST NATURAL: Incurs US$8.6MM Net Loss in Qtr. Ended Dec. 31
---------------------------------------------------------------
Harvest Natural Resources Inc. recorded a 2006 fourth quarter
net loss of US$8.6 million compared with net income of US$10.5
million for the 2005 fourth quarter.
Like the second and third quarters, the company did not
recognize the equity earnings for its producing operations in
Venezuela for the fourth quarter. The equity earnings for the
three quarters starting April 1, 2006, will be reported upon
completion of the conversion to the mixed company (Petrodelta).
The company had a loss of US$58.6 million for the twelve months
ended Dec. 31, 2006, compared with earnings of US$50.8 million
for 2005. The loss for 2006 is due to the inability to
recognize equity earnings for the producing operations in
Venezuela beginning with the second quarter and charges of
US$73.8 million, or US$59.0 million net to the company's 80
percent interest, for additional taxes and related interest in
Venezuela for 2001 through 2006.
Harvest Vinccler S.C.A., the company's 80 percent owned
affiliate, has resolved and substantially paid all of the tax
claims made by the SENIAT, the Venezuelan income tax authority.
The additional taxes were primarily due to the SENIAT's
retroactive tax rate increase for 2001 through 2004. Resolution
of the tax claims was a necessary step in the transition of
HVSCA's operations to Petrodelta.
Harvest President and Chief Executive Officer, James A.
Edmiston, said, "During the fourth quarter, we received approval
from our shareholders to execute the conversion contract, cancel
our operating services agreement and transfer all of our
tangible assets, contracts and rights related to the South
Monagas Unit fields in Venezuela to Petrodelta after receiving
government approvals. In addition, Petrodelta would operate the
Isleno, Temblador and El Salto fields upon their award by the
Venezuelan government. The conversion contract is expected to
be signed and Petrodelta is expected to be formed after receipt
of Venezuelan government approvals. The company will own a 32
percent net interest in Petrodelta."
Mr. Edmiston continued, "Although we made progress towards the
completion of the conversion during 2006, the complexity of the
issues involved has increased the amount of time we and the
Venezuelan government believed would be needed to complete the
process. However, a number of other companies have now signed
their conversion contracts and formed their mixed companies.
Moreover, we understand three companies have completed the
entire conversion process and are now ready to invoice PDVSA for
the oil and gas delivered since April 1, 2006. With the
precedents established and issues resolved by the companies more
advanced in the conversion process, we expect to be able to
expedite the conversion process and issuance of invoices for
payment once we receive the government approvals."
HVSCA continues to operate the SMU fields in Venezuela and
advanced US$36.3 million to fund operations for the last three
quarters of 2006 of which US$21.2 million, representing the
second and third quarter advances, have been reimbursed by
Petroleos de Venezuela, S.A. The fourth quarter advances of
US$15.1 million were invoiced to PDVSA in February 2007. A
Memorandum of Understanding between Company affiliates and
Corporacion Venezolana del Petroleo S.A. and PDVSA Petroleo S.A.
provides that upon conversion to Petrodelta, there will be an
economic adjustment as if the conversion had been completed on
April 1, 2006.
For the nine months ended Dec. 31, 2006, operating statistics
(on a 100% basis) for the SMU fields operated by HVSCA are as
follows:
* Production of 5.2 million barrels of oil and 11.5 billion
cubic feet (Bcf) of natural gas. Average daily production
for the last three quarters was 25,900 barrels of oil
equivalent. Oil production for the fourth quarter was 1.6
million barrels and 3.6 Bcf, or average daily production of
23,900 barrels of oil equivalent.
* Crude oil prices that would be paid for the oil production
if the conversion contract were in place cannot be
calculated as two elements of the pricing formula have not
been set. Market prices for crude oil of the type produced
in SMU averaged approximately US$47 per barrel for the nine
months ended Dec. 31, 2006, and US$41 per barrel for the
three months ended Dec. 31, 2006. The price for natural
gas that would be paid under the conversion contract is
US$1.54 per thousand cubic feet.
* Taxes and royalties for Petrodelta will be 50 percent and
33 percent, respectively.
Harvest Natural Resources, Inc. -- http://www.harvestnr.com/--
is an international oil and gas company that seeks and develops
large resources in countries that others may perceive to be
challenging. Its producing operations are conducted principally
through the company's 80% owned Venezuelan subsidiary, Harvest
Vinccler, Calif., which operates the South Monagas Unit in
Venezuela.
* * *
Harvest Natural Resources carries these ratings from Moody's
Investor Service since Sept. 17, 2004:
-- Issuer Rating, Caa1
-- Long-Term Corp. Family Rating, B3
-- Senior Unsecured Debt, B3
PETROLEOS DE VENEZUELA: Grants Licenses to Repsol & Teikoku
-----------------------------------------------------------
The Ministry of Popular Power for Energy and Petroleum, in the
exercise of the powers conferred to it by articles 6, 22 and 24
of the Organic Law of Gaseous Hydrocarbons and through Petroleos
de Venezuela S.A., will grant the license for exploration and
production of non-associated gaseous hydrocarbons to the joint
venture companies Petroquiriquire and Petroguarico for a period
of 20 years.
In this sense, the President authorized the company
Petroquiriquire to carry out activities in the Quiriquire
Profundo area, which is located in the Punceres municipality in
Monagas state, covers 93.15 square kilometers, and has an
estimated gas production potential of 280 million cubic feed per
day.
Similarly, the State granted the company Petroguarico the
exploration and production of the Copa Macoya area, which is
located in the Jose Felix Ribas municipality in Guarico state,
covers 290.25 square kilometers, and has a gas production of 120
million cubic feet per day.
Both companies should comply with the requirements of the
Organic Law of Hydrocarbons with regards to royalties, which are
estimated based on 20% for non-associated natural gas extracted
in the granted area.
In the mean time, the joint venture companies should present an
evaluation plan that includes a description of the geological
model, the identification of proved, probable and possible
reserves associated with the discovery, and a security, health
and environment plan for control of operational, occupational
and environmental risks associated to exploration activities,
including seismic, drilling, operational logistics and
production works.
As part of the commitment regarding the social realm, the
licensees Petroquiriquire and Petroguarico should invest in
social programs an amount equal to 1% of the annual production
of non-associated gas obtained in the area. Menpet will indicate
the social development projects, and they will consist of plans
in areas where the President identifies the need to carry out
social enhancements.
PDVSA Gas' participation in the license of the Quiriquire
Profundo area is 40%, while the remaining 60% is held by Spanish
company Repsol, which collaborates in exploration and production
activities in the area. With regards to the Copa Macoya area,
the Venezuelan state oil company participates with 30% of the
shares, and the remaining 70% corresponds to the company Teikoku
Oil & Gas Venezuela C.A.
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: Restarts Catalytic Cracker
--------------------------------------------------
Sources told El Universal that Venezuela's state-run oil company
Petroleos de Venezuela SA has restarted the catalytic cracker
unit at its El Palito plant.
As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2007, the refinery started facing problems in January.
It stopped functioning for two weeks. The closure of the
catalytic cracker produced an unusually high level of sales of
vacuum gas oil. Asdrubal Chavez, Petroleos de Venezuela's
marketing and supply manager, said that the company would
restart the catalytic cracker on Feb. 12.
Petroleos de Venezuela postponed the restart due to an accident
at the catalytic cracker, which killed one employee and injured
two, El Universal relates.
"We had a pre-startup... and right now we are stabilizing the
load (of crude oil), which is the process to take the unit to
its maximum capacity. It has started, and is operating
normally," the source told El Universal.
Petroleos de Venezuela SA -- http://www.pdv.com/--
is Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the
'AAA(ven)' national scale rating of the company. Fitch said the
rating outlook is stable.
* VENEZUELA: Bolivia to Join Banco del Sur
------------------------------------------
Venezuelan President Hugo Chavez has signed an accord with
Bolivian President Evo Morales for the latter's membership into
the regional development bank Banco del Sur, Bolivian government
news agency Agencia Boliviana de Informacion reports.
As reported in the Troubled Company Reporter-Latin America on
March 7, 2007, Venezuela would create Banco del Sur with
Argentina, to provide financing for regional projects in areas
like infrastructure and human development. Bolivia, Brazil,
Ecuador and Paraguay would join the bank as members.
BNamericas relates that President Chavez promoted Banco del Sur
as a source of cheap credit for nations and as an alternative to
the International Monetary Fund and World Bank.
President Chavez and Argentine President Nestor Kirchner signed
on Feb. 21 an agreement to launch Banco del Sur in four months,
BNamericas states.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'. Fitch said the outlook on the
ratings remains stable.
* VENEZUELA: Fitch Comments on Banking Sector Amid Fin'l Surge
--------------------------------------------------------------
Fitch released a Special Report titled 'Venezuelan Banks: Review
and Outlook.' The report comes in response to the banking
sector's financial results, recently released. In July 2006
Fitch downgraded the Individual ratings of several banks and
affirmed the Negative Outlook for the ratings of all Venezuelan
banks.
Vigorous economic growth and the banks' need to boost interest
revenue in the mist of lower interest rates, have resulted in a
longer than expected credit boom in Venezuela, not seen in the
last two decades. As mentioned in previous reports, Venezuelan
banks are enjoying the first sustained expansion period after
the severe financial crisis that affected the system in
early 90's.
Balance sheet growth, however, has not translated to higher
profits or a prudent increase in its equity base, resulting in a
significant burden to the system's financial profile and
lowering financial flexibility in case of an unexpected downturn
in the local economy. The constant government intervention in
private sector activities, including the banking sector, has
been patent since 2001. As a result, the system operates under
a complex array of controls in areas such as direct lending,
interest rates floors and ceilings, a tight control over fees
and commissions and a high cash reserve requirement, among other
measures; even further reform of the banking law is under
discussion, raising the spectra of additional, as yet undefined,
controls. While economic growth is expected to moderate in the
short term, loan demand could remain strong for 2007, sustained
by high private consumption and the effects of rising inflation,
while low -- and negative -- interest rates and fierce
competition will keep pressuring banks' profitability ratios.
The recent increase in consumer loans, so far not as pronounced
as the trend seen in other Latin American countries, could
intensify its growth as a way to preserve margins. Given the
higher risk nature of such operations and the lack of consistent
data regarding those loans and default history of the
population, this expansion could leave the system vulnerable to
a downturn in asset quality in the face of an economic downturn.
Even though asset quality metrics have posted positive trends in
the last three years, the natural seasoning of the new portfolio
could result in a turn in that trend going forward, requiring a
more astringent policy towards loan loss provisioning and in
general a stronger capitalization for the system.
In July 2006 Fitch downgraded the Individual ratings of several
banks and affirmed the Negative Outlook for the ratings of all
the Venezuelan banks as a reflect of the sustained decrease in
capital ratios due to the significant increase in assets and
lower expected profitability; and to the concern that government
interference will continue, and potentially increase, further
reducing banks' financial flexibility. Going forward, Fitch
expects the aforementioned pressures could persist, an aspect
somewhat incorporated in the current low Individual and Issuer
Default Ratings of Venezuelan banks. Nevertheless, a more
pronounced trend could result in future adjustment in the
ratings. While the banks' management have a history of adapting
to rapid change in the Venezuelan market, their flexibility is
increasingly limited by existing and prospective controls on
their activities.
Some key details on the Venezuelan banking sector:
Economic Environment:
-- GDP Growth remains steady at 10% in 2006,
should slow in 2007;
-- The astringent monetary policy of the Central Bank
cannot cope with the effects of higher international
reserves and strong public spending;
-- The ongoing reform of the Banking Law and recent
measures over different sectors of the economy could
redefine the terms and extent of government
intervention;
-- Bank Performance during 2006;
-- Downward trends in profitability seems to ease a little,
though rapidly falling margins are still a concern given
the lower than average income diversification of
Venezuelan banks;
-- While they continued to lag loan growth, loan loss
provisions kept pressuring banks profitability;
-- Consumer loans are increasing fast, though from
a relatively small base;
-- Past due loans in relative terms are reaching a plateau,
even though loan growth remains robust;
-- Overall reserves are very low compared to regional
averages and considering the volatility of the
Venezuelan economy; and
-- Capital ratios are reaching regional minimums
undermining the capacity of the system to continue
its expansion phase and cope with unexpected losses.
* VENEZUELA: Launches Land Survey for Planned Nicaraguan Plant
--------------------------------------------------------------
Venezuela has launched land surveys needed for the construction
of a US$2.5-billion refinery in Nicaragua, Reuters reports,
citing Venezuelan Agriculture and Lands Minister Elias Jaua.
According to Reuters, the 150,000-barrel per day plant will be
completed in four years.
El Universal underscores that Minister Jaua headed a Venezuelan
delegation meeting with Nicaraguan officials to review the
accords signed by the two nations.
Minister Jaua told El Universal that Venezuelan President Hugo
Chavez's financial aid to Nicaragua totaled about US$430 million
in energy, agriculture, health and social projects.
News service EFE relates that out of the US$430 million, some
US$340 million has been allocated for oil supply and other means
to solve Nicaragua's energy crisis.
The initiative includes the delivery of a first batch of US$50
million electric powerhouses from Venezuela. Another similar
batch will be shipped soon. Venezuela has also pardoned
Nicaragua's US$22 million debt resulting from Venezuelan fuel
sales to a number of Sandinist mayors in Nicaragua in 2006, EFE
notes.
The remaining US$90 million will be used in healthcare,
education, exports, agriculture and electric power projects, El
Universal states.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'. Fitch said the outlook on the
ratings remains stable.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, Francois Albarracin, and Christian Toledo,
Editors.
Copyright 2076. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *