/raid1/www/Hosts/bankrupt/TCRLA_Public/070328.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, March 28, 2007, Vol. 8, Issue 62
Headlines
A R G E N T I N A
ALBO ASIP: Trustee To Present Individual Reports in Court Tom
CABANA DON: Creditors to Vote on Settlement Plan Tomorrow
CALZADOS MATHIUS: Proofs of Claim Verification Ends on May 3
CLINICA DE LA COMUNIDAD: Validated Claims Due in Court Tomorrow
CORPUS: Trustee To Present Validated Claims in Court Tomorrow
DELTA SOL: Proofs of Claim Filing Deadline Moved to May 11
FARMINTER SA: Trustee to Present General Report in Court Tom
GLOBUS GROUP: Trustee To Present Individual Reports in Court Tom
HUDSON HIGHLAND: Appoints David Reynolds as Vice President
LONERA EL: Individual Reports Due in Court Tomorrow
MATERLANUS SRL: Proofs of Claim Verification Deadline Is May 15
MEDAM BA: Proofs of Claim Verification Deadline Is Tomorrow
NIKMAZE SA: Proofs of Claim Verification Deadline Is Tomorrow
NORCAST SA: Enters Bankruptcy on Court Order
PETROLEO BRASILEIRO: Says Criticism on Argentina Misinterpreted
PRODOM SA: Proofs of Claim Verification Deadline Is on May 21
SANCOR: Proposes Debt Payment Scheme to Creditors
SENAL ECONOMICA: Trustee To Present General Report in Court Tom
VIVENCIAL SRL: Proofs of Claim Verification Ends on April 27
WORLDSPAN LP: S&P Affirms Ratings After Travelport Downgrade
B E R M U D A
SCOTTISH RE: Declares US$0.4531 Per Share Cash Dividend
SHIP FINANCE: Buys Three Seismic Vessels from SCAN Geophysical
B O L I V I A
INTERNATIONAL PAPER: To Form Joint Venture with Ilim Holding
* BOLIVIA: President Names Guillermo Aruquipa as YPFB Head
B R A Z I L
BENQ CORP: Board Refuses to Accept Chairman's Resignation
CAIXA ECONOMICA: Grants BRL2.5 Billion in Home Loans in March
COMPANHIA DE SANEAMENTO: Will Clean Up 40 Streams in Sao Paulo
COMPANHIA ENERGETICA: Posts BRL115-Million Loss in 2006
COMPANHIA PARANAENSE: Will Buy 70% Stake in Centrais Eolicas
COMPANHIA SIDERURGICA: May Expand in Eastern Europe & Asia
DURA AUTOMOTIVE: Can Assume Bayer MaterialScience Sales Contract
DURA AUTOMOTIVE: Exclusive Plan-Filing Period Extended to May 23
FIAT SPA: CEO Sergio Marchionne Warns Cutback on Production
HUGHES COMM: Reports US$858 Million in Revenues for 2006
PETROLEO BRASILEIRO: Conducting Study on Ethanol Production
PETROLEO BRASILEIRO: Output Rises 1.3% in February
PETROLEO BRASILEIRO: To Probe Alleged Iparinga Stock Trading
TELEMIG CELULAR: Ericsson to Provide Commercial Network for Firm
TRW AUTOMOTIVE: Gets Requisite Consents to Amend Note Indentures
TRW AUTOMOTIVE: Closes Senior Notes Offering
C A Y M A N I S L A N D S
AMERICAN BUSINESSOWNERS: Proofs of Claim Filing Ends on April 20
AUSTIN CAPITAL: Will Hold Last Shareholders Meeting on April 20
EMERGING TECHNOLOGY: Sets Last Shareholders Meeting for April 19
EMERGING TECHNOLOGY PORTFOLIO: Shareholders Meeting Is April 19
OVERSEAS II: Will Hold Last Shareholders Meeting on April 19
RHJCF LTD: Sets Last Shareholders Meeting for April 20
C H I L E
COEUR D'ALENE: To Elect Sebastian Edwards as New Board Member
C O L O M B I A
ARMOR HOLDINGS: Receives US$25.5 Mil. New Order from U.S. Army
CHIQUITA BRANDS: Says Arms Shipments Press Reports Inaccurate
ECOPETROL: Shortlists 11 Foreign Investment Banks for IPO
C O S T A R I C A
US AIRWAYS: Completes US$1.6-Billion Debt Refinancing Deal
D O M I N I C A N R E P U B L I C
CERVECERIA NACIONAL: Moody's Puts Ba3 Rating on US$175MM Notes
PAYLESS SHOESOURCE: Hires Bernard Figueroa as Design Director
E C U A D O R
DOLE FOOD: Posts US$89 Million Net Loss in Year Ended Dec. 30
PETROECUADOR: Awards Two Crude Supply Shipments to Glencore
G U A T E M A L A
BRITISH AIRWAYS: Prepares for Possible Impact of Open Skies Deal
J A M A I C A
* JAMAICA: Coffee Industry Still Without Insurance Coverage
M E X I C O
DELTA AIR: Court Approves Extension of Lease-Decision Period
DELTA AIR: Exclusive Solicitation Period Extended to June 1
GENERAL MOTORS: Annual Stockholders' Meeting Scheduled on June 5
GENERAL MOTORS: Awards Stock Grants to Executives
GRUPO MEXICO: Planning Infrastructure Acquisitions for Unit
INTERTAPE POLYMER: Moody's Cuts Subsidiary's Corp. Rating to B3
KENDLE INT'L: Posts US$4.7 Mln Net Loss in Quarter Ended Dec. 31
METROFINANCIERA SA: S&P Says BB- Rating Unaffected by New Status
METROLOGIC INSTRUMENTS: Appoints Darius Adamczyk as New CEO
VISTEON CORP: Moody's Affirms B3 Corporate Family Rating
P A N A M A
AES CORPORATION: Gets Waivers from Majority of Lenders
BANCO LATINOAMERICANO: Wants Share in Panama Canal Project
P U E R T O R I C O
ALLIED WASTE: Moody's Assigns Ba3 Rating on Amended Credit Line
FRANCISCO RIVERA: Case Summary & 20 Largest Unsecured Creditors
REDONDO WASTE: Case Summary & Seven Largest Unsecured Creditors
STANDARD MOTOR: Inks US$275MM Credit Facility with GE Capital
U R U G U A Y
BANKBOSTON (URUGUAY): Moody's Puts E+ Financial Strength Rating
GERDAU SA: ANEEL Moves Hydroelectric Complex Concession to Unit
V E N E Z U E L A
DAIMLERCHRYSLER: Delays Filing First Quarter Report to May 15
DAIMLERCHRYSLER: Magna Offers Up to US$4.7BB for 25% of Chrysler
PETROLEOS DE VENEZUELA: Fitch Puts BB- Rating on US$5 Bil. Notes
PETROLEOS DE VENEZUELA: May Build Tankers for China Shipment
PETROLEOS DE VENEZUELA: S&P Puts BB- Ratings on Proposed Notes
* VENEZUELA: Int. Press Group Wants Gov. to Reconsider RCTV Case
* World Trade Agrees to Hear EU Banana Tariff Complaint
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A R G E N T I N A
=================
ALBO ASIP: Trustee To Present Individual Reports in Court Tom
-------------------------------------------------------------
Marina Fernanda Tynik, the court-appointed trustee for Albo Asip
SA's bankruptcy proceeding, will present creditors' validated
claims as individual reports in the National Commercial Court of
First Instance in Buenos Aires on March 29, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Albo Asip and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Tynik verified creditors' proofs of claim until
Feb. 13, 2007.
Ms. Tynik will also submit to court a general report containing
an audit of Albo Asip's accounting and banking records on
May 15, 2007.
The debtor can be reached at:
Albo Asip SA
Sarandi 461
Buenos Aires, Argentina
The trustee can be reached at:
Marina Fernanda Tynik
Avenida Rivadavia 10.444
Buenos Aires, Argentina
CABANA DON: Creditors to Vote on Settlement Plan Tomorrow
---------------------------------------------------------
Cabana Don Joaquin S.A., a company under reorganization, will
present a settlement plan to its creditors on March 29, 2007.
Alberto Javier Samsolo, the court-appointed trustee for Cabana
Don Joaquin's reorganization proceeding, submitted individual
reports in court on Aug. 15, 2006. The individual reports were
based on creditors' claims that Mr. Samsolo verified until
June 20, 2006. The National Commercial Court of First Instance
No. 11 in Buenos Aires determined the verified claims'
admissibility, taking into account the trustee's opinion and the
objections and challenges raised by Caban Don Joaquin and its
creditors.
Mr. Samsolo also presented a general report containing an audit
of Cabana Don Joaquin's accounting and banking records in court
on Sept. 27, 2006.
Clerk No. 21 assists the court on the case.
The debtor can be reached at:
Cabana Don Joaquin S.A.
Inclan 3302
Buenos Aires, Argentina
The trustee can be reached at:
Alberto Samsolo
Paraguay 1225
Buenos Aires, Argentina
CALZADOS MATHIUS: Proofs of Claim Verification Ends on May 3
------------------------------------------------------------
Jose Luis Abuchdid, the court-appointed trustee for Calzados
Mathius SRL's bankruptcy proceeding, verifies creditors' proofs
of claim until May 3, 2007.
Mr. Abuchdid will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 9 in Buenos Aires, with the assistance of Clerk
No. 18, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Calzados Mathius and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Calzados Mathius'
accounting and banking records will be submitted in court.
La Nacion did not state the date for the submission of the
reports.
Mr. Abuchdid is also in charge of administering Calzados
Mathius' assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Calzados Mathius SRL
Camacua 651
Buenos Aires, Argentina
The trustee can be reached at:
Jose Luis Abuchdid
Avenida de los Incas 3624
Buenos Aires, Argentina
CLINICA DE LA COMUNIDAD: Validated Claims Due in Court Tomorrow
---------------------------------------------------------------
Maximo C. A. Piccinelli, the court-appointed trustee for Clinica
de la Comunidad S.R.L.'s bankruptcy proceeding, will present
creditors validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
March 29, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Clinica de la Comunidad and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Piccinelli verified creditors' proofs of claim until
Dec. 21, 2006.
A general report that contains an audit of Clinica de la
Comunidad's accounting and banking records will be submitted to
court on May 24, 2007.
The debtor can be reached at:
Clinica de la Comunidad S.R.L.
Avenida Julio A. Roca 570
Buenos Aires, Argentina
The trustee can be reached at:
Maximo C. A. Piccinelli
Montevideo 666
Buenos Aires, Argentina
CORPUS: Trustee To Present Validated Claims in Court Tomorrow
-------------------------------------------------------------
Maximo C. A. Piccinelli, the court-appointed trustee for Corpus
SRL's bankruptcy proceeding, will present creditors' validated
claims in the National Commercial Court of First Instance in
Buenos Aires on March 29, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Corpus and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Piccinelli verified creditors' proofs of claim until
Dec. 19, 2006.
Mr. Piccinelli will also submit a general report containing an
audit of Corpus' accounting and banking records on May 30, 2007.
The debtor can be reached at:
Corpus SRL
Arribenios 2153
Buenos Aires, Argentina
The trustee can be reached at:
Maximo C. A. Piccinelli
Montevideo 666
Buenos Aires, Argentina
DELTA SOL: Proofs of Claim Filing Deadline Moved to May 11
----------------------------------------------------------
Gisela Maria Corradini, the court-appointed trustee for Delta
Sol S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until May 11. The filing deadline was previously set for
May 28.
As reported in the Troubled Company Reporter-Latin America on
March 13, 2007, the deadline for the proofs of claim filing was
initially set for May 28, 2007.
Ms. Corradini will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 6 in Buenos Aires, with the assistance of Clerk
No. 12, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Delta Sol and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Delta Sol's
accounting and banking records will be submitted in court.
Infobae did not state the submission dates of the reports.
Ms. Corradini is also in charge of administering Delta Sol's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Gisela Maria Corradini
Albania 4518
Buenos Aires, Argentina
FARMINTER SA: Trustee to Present General Report in Court Tom
------------------------------------------------------------
Ester A. Ferraro, the court-appointed trustee for Farminter
S.A.'s reorganization proceeding, will submit to court a general
report containing an audit of the company's accounting and
banking records on March 29, 2007.
Ms. Ferraro verified creditors' proofs of claim until
Nov. 30, 2006. She then presented the validated claims in court
as individual reports on Feb. 15, 2007. The National Commercial
Court of First Instance in Buenos Aires determined the verified
claims' admissibility, taking into account the trustee's opinion
and the objections and challenges raised by Farminter and its
creditors.
Farminter's creditors will vote on a settlement plan that the
company will lay on the table on Oct. 12, 2007.
The trustee can be reached at:
Ester A. Ferraro
Esmeralda 960
Buenos Aires, Argentina
GLOBUS GROUP: Trustee To Present Individual Reports in Court Tom
----------------------------------------------------------------
Orlando Juan Prebianca, the court-appointed trustee for Globus
Group SA's bankruptcy proceeding, will submit to the National
Commercial Court of First Instance No. 25 in Buenos Aires the
creditors' validated claims on March 29, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Globus Group and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Prebianca verified creditors' proofs of claim from creditors
until Feb. 15, 2007.
Mr. Prebianca will also submit a general report that contains an
audit of Globus Group's accounting and banking records in court
on May 16, 2007.
Globus Group was forced into bankruptcy at the request of Obra
Social de Cortadores de la Indumentaria, which it owes
US$6,464.39.
Clerk No. 50 assists the court in the case.
The debtor can be reached at:
Globus Group SA
Sarmiento 1562
Buenos Aires, Argentina
The trustee can be reached at:
Orlando Juan Prebianca
Uriburu 578
Buenos Aires, Argentina
HUDSON HIGHLAND: Appoints David Reynolds as Vice President
----------------------------------------------------------
Hudson Highland Group Inc. has appointed David Reynolds to vice
president, corporate controller and an officer of the company.
He replaces Ralph O'Hara, who has resigned to accept a position
outside the company.
Mr. Reynolds was vice president and controller for Bally Total
Fitness Corporation. Prior to that, he spent 22 years in
various financial roles at Comdisco, Inc., rising to senior vice
president and controller. Mr. Reynolds began his career at
Ernst & Young.
Headquartered in New York, New York, Hudson Highland Group, Inc.
(Nasdaq: HHGP)-- http://www.hhgroup.com/-- is a provider of
permanent recruitment, contract professionals and talent
management services worldwide. From single placements to total
outsourced solutions, Hudson helps clients achieve greater
organizational performance by assessing, recruiting, developing
and engaging the best and brightest people for their businesses.
The company employs more than 3,600 professionals serving
clients and candidates in more than 20 countries including
Argentina, Australia, Belgium, Brazil, and Canada.
* * *
As reported in the Troubled Company Reporter on Nov. 7, 2006,
Moody's Investors Service assigned a Ba2 rating to the company's
US$7,500,000 Income Notes Due 2042.
LONERA EL: Individual Reports Due in Court Tomorrow
---------------------------------------------------
Jose Maria Arabena, the court-appointed trustee for Lonera El
Rosario SA's bankruptcy proceeding, will present the creditors'
validated claims in the National Commercial Court of First
Instance in Villa Mercedes, San Luis on March 29, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Lonera El and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Arabena verified creditors' proofs of claim until
Feb. 15, 2007.
Mr. Arabena will also submit a general report containing an
audit of Lonera El's accounting and banking records in court on
May 16, 2007.
The debtor can be reached at:
Lonera El Rosario S.A.
Juan B. Justo 5082
BA Marcelo T. de Alvear
Ciudad de Cordoba
Cordoba, Argentina
The trustee can be reached at:
Jose Maria Arabena
9 de Julio 863
Villa Mercedes
San Luis, Argentina
MATERLANUS SRL: Proofs of Claim Verification Deadline Is May 15
---------------------------------------------------------------
Oscar Ricardo Scally, the court-appointed trustee for Materlanus
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until May 15, 2007.
Mr. Scally will present the validated claims in court as
individual reports on June 28, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Materlanus and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Materlanus'
accounting and banking records will be submitted in court on
Sept. 28, 2007.
Mr. Scally is also in charge of administering Materlanus' assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Oscar Ricardo Scally
Arenales 875
Buenos Aires, Argentina
MEDAM BA: Proofs of Claim Verification Deadline Is Tomorrow
-----------------------------------------------------------
Estudio Fizzani y Asociados Contadores Publicos, the court-
appointed trustee for Medam B.A. S.R.L.'s reorganization
proceeding, verifies creditors' proofs of claim until
March 29, 2007.
Estudio Fizzani will present the validated claims in court as
individual reports on May 16, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Medam and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Medam's accounting
and banking records will be submitted in court on June 29, 2007.
An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to Medam's creditors
for approval, is scheduled on Dec. 13, 2007.
Estudio Fizzani is also in charge of administering Medam's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Medam B.A. S.R.L.
25 de Mayo 293
Buenos Aires, Argentina
The trustee can be reached at:
Estudio Fizzani y Asociados Contadores Publicos
Peron 1509
Buenos Aires, Argentina
NIKMAZE SA: Proofs of Claim Verification Deadline Is Tomorrow
-------------------------------------------------------------
Estudio Penna y Steinhaus, the court-appointed trustee for
Nikmaze S.A.'s reorganization proceeding, verifies creditors'
proofs of claim until March 29, 2007.
Estudio Penna will present the validated claims in court as
individual reports on May 16, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Nikmaze and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Nikmaze's accounting
and banking records will be submitted in court on June 27, 2007.
An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the company's
creditors for approval, is scheduled on Oct. 3, 2007.
Estudio Penna is also in charge of administering Nikmaze's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Estudio Penna y Steinhaus
Defensa 649
Buenos Aires, Argentina
NORCAST SA: Enters Bankruptcy on Court Order
--------------------------------------------
Norcast S.A. enters bankruptcy protection after the National
Commercial Court of First Instance in Buenos Aires ordered the
company's liquidation. The order effectively transfers control
of the company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.
The court appointed Fernando J. Marziale and Reinaldo C. Piereni
as trustees for Norcast bankruptcy proceeding.
The Argentine bankruptcy law requires the trustees to verify
proofs of claim from Norcast's creditors and provide the court
with individual reports on the validated claims and a general
report containing an audit of the company's accounting and
business records.
Infobae did not disclose the reports submission deadline.
The trustees can be reached at:
Fernando J. Marziale
Reinaldo C. Piereni
Avenida Callao 930
Buenos Aires, Argentina
PETROLEO BRASILEIRO: Says Criticism on Argentina Misinterpreted
---------------------------------------------------------------
Brazilian state oil firm Petroleo Brasileiro SA's Argentine unit
said in a press release that the firm's Chief Executive Jose
Sergio Gabrielli's criticism on Argentina had been
misinterpreted by the press.
As reported in the Troubled Company Reporter-Latin America on
March 26, 2007, Petroleo Brasileiro said that energy prices in
Argentina hamper investment in the sector, as they don't reflect
scarcity of products like oil derivatives and natural gas. Mr.
Gabrielli called for changes in Argentina's pricing system,
saying that his company was worried on the decreasing oil and
natural gas reserves in Argentina, which called for additional
investment. Due to Petroleo Brasileiro's statement, the
Argentine government considered evaluating Brazilian state-owned
oil firm Petroleo Brasileiro SA's oil and natural gas
concessions. Argentine President Nestor Kirchner refused to let
energy firms to raise rates in a bid to control inflation and
extend a four-year economic recovery. Energy shortages in the
nation since 2004 have forced the government to cut exports to
Chile and Uruguay and left farmers with insufficient fuel to
plant crops.
Argentine Federal Planning Minister Julio De Vido told Merco
Press that Mr. Gabrielli's remarks were inappropriate. He said
that the government won't allow the president of a company to
give an opinion about the sovereign politics of the Argentine
state.
"We would not go to Brazil and suggest that (President Luis
Inacio da Silva) Lula adopts a specific price policy," Minister
De Vido commented to Merco Press.
Petroleo Brasileiro has a duty to invest without any prior
conditions. The Argentine government will be asking Brazil for
a formal explanation, Merco Press notes, citing Minister De
Vido.
However, Petroleo Brasileiro said in a press release, "At no
time did Gabrielli indicate that the company was considering a
reduction in its investments or considering not meeting its
commitments."
Petroleo Brasileiro told Merco Press that it employs 14,000
people in Argentina and has committed additional investments in
the nation up to 2011 of US$2.3 billion.
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.
PRODOM SA: Proofs of Claim Verification Deadline Is on May 21
-------------------------------------------------------------
Alberto Ladaga, the court-appointed trustee for Prodom SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
May 21, 2007.
Mr. Ladaga will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 26 in Buenos Aires, with the assistance of Clerk
No. 52, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Prodom and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Prodom's accounting
and banking records will be submitted in court.
La Nacion did not state the date for the submission of the
reports.
Mr. Ladaga is also in charge of administering Prodom's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Prodom SA
Avenida Juan B. Justo 7726
Buenos Aires, Argentina
The trustee can be reached at:
Alberto Ladaga
Vidt 2039
Buenos Aires, Argentina
SANCOR: Proposes Debt Payment Scheme to Creditors
-------------------------------------------------
Oscar Carreras, head of Argentine dairy cooperative SanCor
Cooperativas Unidas, said in an interview with a Cordoba
province-based paper that the cooperative has US$80 million to
repurchase its US$167 million debt.
SanCor already had access to US$15 million of the US$55 million
from the Venezuelan government's loan. Another US$80 million
will be released once the cooperative has reached a debt
restructuring agreement with at least 50% of creditors.
Creditors are expected to hold different positions regarding the
proposed 52% haircut in the amount of debt. Local banks, headed
by Banco Nacion, are willing to refinance debt for US$40
million.
Foreign banks seemed to be reluctant to accept the cut proposed
by SanCor.
Headquartered in Santa Fe, Argentina, SanCor is a dairy milk
cooperative and one of the largest milk processors and marketers
in Argentina. Annual revenues for the fiscal year ended June
2006, are ARS1.4 billion.
* * *
As reported on Jan. 15, 2007, Standard & Poor's rated SanCor
Coop. Unidas Ltda.'s debts at D:
-- Obligaciones Negociables Serie 2, issued under the US$300
million program, for US$19,000,000,
-- Obligaciones Negociables Serie 3, included under the
US$300 million program, for US$75,800,000.
SENAL ECONOMICA: Trustee To Present General Report in Court Tom
---------------------------------------------------------------
Marcelo Gabriel Dborkin, the court-appointed trustee of Senal
Economica S.A.'s reorganization proceeding, will submit to the
National Commercial Court of First Instance No. 17 in Buenos a
general report containing an audit of the company's accounting
and banking records on March 29, 2007.
Mr. Dborkin verified creditors' proofs of claim until
Nov. 30, 2006. Mr. Dborkin presented the validated claims in
court as individual reports on Feb. 15, 2007.
On Sept. 17, 2007, Senal Economica's creditors will vote on a
settlement plan that the company will lay on the table.
Clerk No. 50 assists the court in the case.
The debtor can be reached at:
Senal Economica S.A.
Maipu 267
Buenos Aires, Argentina
The trustee can be reached at:
Marcelo Gabriel Dborkin
Avenida Callao 295
Buenos Aires, Argentina
VIVENCIAL SRL: Proofs of Claim Verification Ends on April 27
------------------------------------------------------------
Fernando J. Marziale and Reinaldo C. Piereni, the court-
appointed trustees for Vivencial S.R.L.'s bankruptcy proceeding,
verifies creditors' proofs of claim until April 27, 2007.
Messrs. Marziale and Piereni will present the validated claims
in court as individual reports. The National Commercial Court
of First Instance in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised
by Vivencial and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Vivencial's
accounting and banking records will be submitted in court.
Infobae did not state the submission dates of the reports.
Messrs. Marziale and Piereni are also in charge of administering
Vivencial's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustees can be reached at:
Fernando J. Marziale
Reinaldo C. Piereni
Avenida Callao 930
Buenos Aires, Argentina
WORLDSPAN LP: S&P Affirms Ratings After Travelport Downgrade
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' corporate credit rating, on Worldspan L.P.,
following the downgrade of its intended merger partner,
Travelport LLC, to 'B' from 'B+'. The outlook is stable.
All ratings were removed from CreditWatch with developing
implications, where they were placed on Dec. 7, 2006, after the
merger agreement was announced.
Worldspan is the leading processor of GDS or global distribution
system transactions for on-line travel agencies. Travelport
processes both on-line and off-line (traditional travel agency)
transactions.
"The merger with Travelport is expected to be completed in mid-
2007; upon completion of the merger, ratings on Worldspan will
be withdrawn," said Standard & Poor's credit analyst Betsy
Snyder.
The ratings on Worldspan reflect its weak financial profile and
limited financial flexibility after several recapitalizations,
in which debt was used to redeem preferred stock held by the
company's owners and to pay them a dividend of approximately
US$600 million in December 2006. However, Worldspan benefits
from its leading position in processing on-line travel bookings,
the fastest-growing segment of the travel distribution industry.
This segment accounts for approximately 90% of Worldspan's
revenues.
About Travelport
Travelport, one of the world's largest and most geographically
diverse travel companies is dedicated to creating the
exceptional travel experiences the world demands. Across more
than 130 countries and through a network of 8,000 local
professionals, Travelport delivers greater choice, tremendous
travel content and cost savings to travelers, travel
professionals and travel suppliers every day. Travelport offers
a wide range of business and consumer services, from
distribution technology and travel packaging to retail sales and
solutions. Travelport operates over 20 leading brands,
including Orbitz, an online travel agency; Galileo, a global
distribution system (GDS); and GTA, a wholesaler of global
travel content.
About Worldspan, L.P.
Headquartered in Atlanta, Georgia, Worldspan, L.P. --
http://www.worldspan.com/-- is a leader in travel technology
services for travel suppliers, travel agencies, e-commerce sites
and corporations worldwide. Utilizing some of the fastest, most
flexible and efficient networks and computing technologies,
Worldspan provides comprehensive electronic data services
linking approximately 800 travel suppliers around the world to a
global customer base. Worldspan offers industry-leading Fares
and Pricing technology such as Worldspan e-Pricing(R), hosting
solutions, and customized travel products. Worldspan enables
travel suppliers, distributors and corporations to reduce costs
and increase productivity with technology like Worldspan
Go!(R) and Worldspan Trip Manager(R) XE. The company's Latin
American operations are in Argentina, The Bahamas, Brazil,
Jamaica, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.
=============
B E R M U D A
=============
SCOTTISH RE: Declares US$0.4531 Per Share Cash Dividend
-------------------------------------------------------
Scottish Re Group Limited's Board of Directors declared a cash
dividend of US$0.4531 per Perpetual Preferred Share outstanding
to be paid on April 16, 2007, to Perpetual Preferred Share
shareholders of record as of the close of business on
March 30, 2007.
Scottish Re Group Ltd. (NYSE: SCT) -- http://www.scottishre.com/
-- is a global life reinsurance company. Scottish Re has
operating businesses in Bermuda, Grand Cayman, Guernsey,
Ireland, Singapore, the United Kingdom and the United States.
Its flagship operating subsidiaries include Scottish Annuity &
Life Insurance Company (Cayman) Ltd., Scottish Re (U.S.) Inc.
and Scottish Re Limited.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 6, 2007, Standard & Poor's Ratings Services said that its
ratings on Scottish Re Group Ltd. (B/Watch Dev/--) and
affiliated operating companies remain on CreditWatch with
developing implications following the announcement by the
company that the shareholders have approved the transaction by
which MassMutual Capital Partners LLC and affiliates of Cerberus
Capital Management L.P. would provide an equity infusion of
US$600 million in a transaction to close in the second quarter
of 2007.
SHIP FINANCE: Buys Three Seismic Vessels from SCAN Geophysical
--------------------------------------------------------------
Ship Finance International Ltd. has agreed to acquire three new
building seismic vessels from SCAN Geophysical ASA based on a
total delivered price of US$210 million, or US$70 million per
vessel, including complete seismic equipment.
SCAN is a seismic data acquisition company, with a current fleet
of three seismic vessels in addition to the vessels Ship Finance
has agreed to acquire. SCAN is listed on the OTC-list in Norway
with a market capitalization of approximately US$270 million,
and the management team has extensive experience in the offshore
seismic market. A listing on the Oslo Stock Exchange is
expected during 2007.
The vessels are being constructed at the ABG Shipyard in India
and delivery is scheduled for January, April, and July 2008.
The vessels are purpose built, specifically designed for
efficient 3D seismic acquisition with high streamer capacity
with 10 tow points and streamer lengths of up to 10 km (for 8
streamer configuration). SCAN plans to deploy the vessels in the
high-end 3D contract seismic market to third party clients
internationally within the oil and gas industry. Currently, the
market for modern 3D seismic vessels is very strong.
Ship Finance is financing the transaction through a senior loan
facility of US$120 million (US$40 million per vessel) and an
equity contribution of US$30 million (US$10 million per vessel).
SCAN will provide a non-interest bearing seller's credit of
US$60 million (US$20 million per vessel).
Upon delivery from the shipyard, the vessels will commence 12-
year bareboat contracts to SCAN, and the charter rate per vessel
payable to Ship Finance to service the net investment of US$50
million per vessel is agreed to be approx.:
Year 1-3: US$26,500 per day
Year 4-6: US$24,500 per day
Year 7-12: US$10,000 per day
The seller's credit from SCAN will be fully amortized over the
first six years after delivery through a non-cash additional
charter rate of US$9,132 per day for each vessel.
The Charterer has been granted fixed price purchase options for
each of the vessels after 6, 10, and 12 years at approximately
US$20 million, US$14 million, and US$9 million, respectively.
The charter contracts are on bareboat basis and SCAN will
therefore be responsible for all operating and maintenance costs
during the charter period.
During the first six years of the charters, the annual repayment
of debt for the three vessels is approximately US$13.7 million
(US$4.57 million per vessel), giving an average annual net cash
contribution after estimated interest expense and debt repayment
of approximately US$0.12 per share.
Similar to all our recent acquisitions, the purchase of the
vessels and corresponding financing will be in separate
subsidiaries, and Ship Finance's guarantee obligation will be
US$16.3 million per vessel prior to delivery, which will then be
reduced to US$10 million per vessel after delivery from the
shipyard.
This transaction is another verification of the Company's
strategy to diversify both the asset base and customer
portfolio. There is a high activity level in the offshore-
related markets with significant cash flows and a positive
market outlook. The company anticipates further growth
opportunities in this segment.
Including new buildings and adjusted for announced sales, the
Company's fleet will consist of 60 vessels, essentially all on
medium to long-term charters.
About Ship Finance
Headquartered in Bermuda, Ship Finance International Limited --
http://www.shipfinance.org/-- through its subsidiaries engages
in the ownership and operation of oil tankers, including
oil/bulk/ore (OBO) carriers. The company operates through
subsidiaries and partnerships located in Bermuda, Cyprus, Isle
of Man, Liberia, Norway, and Singapore.
It is also involved in the charter, purchase, and sale of
vessels.
* * *
Moody's Investors Service affirmed Ship Finance International
Ltd.'s ratings, including the Ba3 Corporate Family Rating, the
Ba2 Senior Secured Bank Credit Facilities and the B1 Senior
Unsecured Notes rating. Moody's said the ratings outlook
remains stable.
=============
B O L I V I A
=============
INTERNATIONAL PAPER: To Form Joint Venture with Ilim Holding
------------------------------------------------------------
International Paper and Ilim Holding have applied to the Russian
Federal Antimonopoly Service for approval of the acquisition of
rights that will allow the two companies to jointly make
decisions regarding the enterprises owned by Ilim Holding SA in
Russia. The application was filed on March 26.
Obtaining FAS approval presents the next stage toward
establishing a joint venture between International Paper and
Ilim Pulp. On Oct. 25, 2006, the two companies signed a letter
of intent to form the 50-50 joint venture.
International Paper purchasing a 50 percent interest in Ilim
Holding's stock would establish the joint venture. The
companies intend to close the deal by the end of the second
quarter.
Ilim Holding operates the three largest Russian pulp-and-paper
mills in European Russia and Siberia, and owns a majority share
in St. Petersburg KPK in the Leningrad region. Ilim is in the
process of consolidating ownership of the mills into a Russian
open joint-stock company, Ilim Group, a subsidiary of Ilim
Holding. Ilim Group will be managed jointly by a board of
directors comprising representatives of Ilim Pulp and
International Paper. The new company will be headquartered in
St. Petersburg.
The joint venture will focus on increasing output of value-added
products, such as office papers and packaging, as well as market
pulp, in which Ilim Pulp has a leading position in Russia and
China. Ilim Pulp's existing wood products business will operate
independently of the joint venture, as will International
Paper's OAO Svetogorsk business.
The prospective partners are currently finalizing a long-term
joint investment program of approximately US$1.2 billion of
capital investments. This unprecedented investment in the
Russian forest products industry would be used to upgrade
operating subsidiaries, increase production capacity by more
than 50 percent, and allow for new, value-added product
development.
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: President Names Guillermo Aruquipa as YPFB Head
----------------------------------------------------------
Bolivian government news agency Agencia Boliviana de Informacion
reports that the country's President Evo Morales has appointed
Guillermo Aruquipa as the new president of state hydrocarbons
firm Yacimientos Petroliferos Fiscales Bolivianos to replace
Manuel Morales Olivera.
As reported in the Troubled Company Reporter-Latin America on
Feb. 1, 2007, the government named Mr. Olivera -- one of
President Morales' closes associates -- to take the place of
Juan Carlos Ortiz, who resigned as the head of Yacimientos
Petroliferos due to disagreements with the current
administration on how to run the oil company.
Published reports say that Mr. Olviera was removed from his post
as Yacimientos Petroliferos head for allegedly destroying
original contractual accords with Brazilian state oil firm
Petroleo Brasileiro in favor of a separate agreement giving
further advantage to the company.
Mr. Aruquipa had been acting as deputy exploration and
production minister of hydrocarbons, and had worked in several
capacities in both congressional houses, Business News Americas
relates.
* * *
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
===========
BENQ CORP: Board Refuses to Accept Chairman's Resignation
---------------------------------------------------------
BenQ Corp.'s Board of Directors refused to accept Chairman K.Y.
Lee's offer to resign and instead demanded him to turn the
company around.
Mr. Lee offered to resign from his post after the company failed
to make its former German mobile phone subsidiary profitable.
However, the company's board refused the resignation and said it
will form a task force to review and report on all losses
attributed to the acquisition of the mobile phone maker.
BenQ posted a net loss of NT$7.89 billion or US$238 million for
the October-December quarter. The Troubled Company Reporter-
Europe noted that the quarterly loss is the company's fifth
straight as its handset business continues to drag after it
declared its German unit insolvent late last year.
Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing
developing and selling of computer peripherals and
telecommunication products. It is also a major provider of 3G
handset, 3G handset, Camera phones, and other products.
BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany. BenQ Mobile filed for insolvency
in Germany on Sept. 29, after BenQ Corp.'s board decided to
discontinue capital injection into the mobile unit in order to
stem unsustainable losses. The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.
A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the
deadline in finding a buyer for the company on Dec. 31, 2006.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term
twBB+ and short-term twB corporate credit ratings to BenQ Corp.
The outlook on the long-term rating is negative. At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.
The ratings reflect BenQ's:
* continuing operating losses from its handset operations;
* high leverage; and
* the competitive nature and low profitability of the LCD
monitor industry.
CAIXA ECONOMICA: Grants BRL2.5 Billion in Home Loans in March
-------------------------------------------------------------
Caixa Economica Federal Urban Development and Government Vice
President Jorge Hereda told the local press that the bank
granted BRL2.5 billion in home loans as of March 19, 2007.
Caixa Economica's home loans will increase 22.5% to BRL17.4
billion in 2007, compared to BRL14.2 billion in 2006, business
news Americas relates, citing Mr. Hereda.
Mr. Hereda commented to BNamericas, "There is still an enormous
housing deficit in Brazil, more than 90% of which is among
families with monthly income of up to BRL1,900. The idea is to
make the market reach lower-income earners."
According to BNamericas, Caixa Economica signed an accord with
local construction firm Gafisa to provide funding for lower-
income homebuyers through the federal government's growth
acceleration plan.
Caixa Economica Distribution Vice President Joao Carlos Garcia
said in a press conference that the bank will provide funding
for 6,000 units during the first year of the partnership with
Gafisa for up to BRL480 million.
Caixa Economica Regional Manager Cristiano Luz told BNamericas
that the bank allocated BRL22.3 million to provide home loans
for an apartment complex in the city of Sao Paulo, the first
project under the partnership.
Caixa Economica will also sign more partnerships in 2007,
including the ones with construction firms that usually work
with the high-income segment, BNamericas states, citing Mr.
Garcia.
Apart from its commercial banking activities, Caixa Economica
Federal is responsible for executing policies in the areas of
housing and basic sanitation, the administration of social funds
and programs and federal lotteries. Caixa Economica Federal is
Brazil's second largest financial institution and is the fourth
largest bank in Latin America. According to a 2002 ranking of
Latin American banks undertaken by Caracas-based SOFTline, it
had US$36.3 billion (11.7%) in assets, deposits valued at
US$21.7 billion and loans worth US$7 billion as of 2002.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2006, Moody's Investors Service upgraded these ratings
of Caixa Economica Federal:
-- long-term foreign currency deposits to Ba3 from Ba1; and
-- long- and short-term global local currency deposit ratings
to A1/Prime-1 from A3/Prime-2.
Moody's said the ratings outlook was stable.
COMPANHIA DE SANEAMENTO: Will Clean Up 40 Streams in Sao Paulo
--------------------------------------------------------------
Companhia de Saneamento Basico do Estado de Sao Paulo said in a
release that in a joint project with the Sao Paulo state
government and 18 municipalities -- it will work to clean up 40
streams in and around the capital city of Sao Paulo.
Business News Americas relates that the project is called
Operation Nature. It was launched by Sao Paulo Governor Jose
Serra and Mayor Gilberto Kassab. It will receive total
investment of BRL200 million and will take two years to clean up
the streams that flow into bodies of water used for the city's
water supply. The project is aimed at improving the sanitary
conditions of the streams throughout the greater Sao Paulo urban
area. Companhia de Saneamento will be extending the system of
sewage collection and interception devices as well as boost the
number of domestic sewerage connections. Part of the program
involves educating the public about the harm that mistreatment
of the environment can cause and guaranteeing that pollution is
avoided.
According to BNamericas, Companhia de Saneamento's BRL164
million major investment will be complemented by BRL36 million
from the state capital's city council.
The report says that this is the first stage of a 10-year
program aimed at cleaning the 300 streams in and around the
capital, benefiting an estimated 2.35 million residents, the
entire population of Sao Paulo city and its satellite cities.
"This is a joint investment arising from an important
partnership between the state government and the city council to
improve the environmental conditions of the water supply
throughout the region," Governor Serra 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.
COMPANHIA ENERGETICA: Posts BRL115-Million Loss in 2006
-------------------------------------------------------
Companhia Energetica de Sao Paulo said in a filing with the Sao
Paulo stock exchange, Bovespa, that it lost BRL118 million in
2006, compared to BRL195 million in 2005.
Companhia Energetica told Business News Americas that its gross
revenues increased 14% to BRL2.40 billion in 2006, from 2005.
According to BNamericas, Companhia Energetica's Ebitda grew
11.3% to BRL1.27 million in 2006, compared to 2005.
Companhia Energetica told BNamericas that operating expenses
declined 3% to BRL552 million in 2006, compared to 2005.
Meanwhile, financial expenses increased 45% to BRL1.03 billion.
The report says that the increase in Companhia Energetica's
expenses were due to higher debt-servicing costs, despite gains
from the Brazilian real's appreciation against the US dollar and
a reduction in overall debt.
Companhia Energetica's gross debt was BRL5.05 billion in 2006,
of which BRL3.90 billion was denominated in foreign currency.
In 2005 the company's debt totaled BRL7.77 billion, of which
BRL4.52 billion was denominated in foreign currency, BNamericas
states.
Headquartered in Sao Paulo, Brazil, CESP -- Companhia Energetica
de Sao Paulo is the country's third largest power generator,
majority owned by the State of Sao Paulo. CESP operates 6
hydroelectric plants with total installed capacity of 7,456 MW
and reported net revenues of BRL1,983 million in the last twelve
months through Sept. 30, 2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2007, Moody's Investors Service assigned a Ba3 foreign
currency rating to Companhia Energetica de Sao Paulo aka CESP's
proposed unsubordinated unsecured Real-denominated IPCA linked
notes due in 2015 in the amount of approximately US$250 million
in Real-equivalent. The 2015 notes shall be issued under the
US$975 million Medium Term Notes Program rated Ba3 by Moody's.
Moody's notes that, although the notes will be denominated in
Brazilian Real, all related payments shall be made in US-
Dollars. Moody's said the ratings outlook is positive.
COMPANHIA PARANAENSE: Will Buy 70% Stake in Centrais Eolicas
------------------------------------------------------------
Companhia Paranaense de Energia aka Copel said in a filing with
the Sao Paulo stock exchange, Bovespa, that it is negotiating to
purchase a 70% stake in wind power venture Centrais Eolicas do
Parana from wind turbine producer Wobben Windpower.
Centrais Eolicas has 2.5-megawatt installed capacity through
five 500-kilowatt turbines operating in southern Parana,
business news Americas relates, citing Companhia Paranaense.
A Companhia Paranaense spokesperson told BNamericas that the
firm owns a 30% stake in Centrais Eolicas. The acquisition is
aimed at complying with Companhia Paranaense policy to control
all power generation assets in Parana, where it operates.
The spokesperson commented to BNamericas, "Copel [Companhia
Paranaense] is not interested in expanding its wind power
generation capacity, it is just complying with company
directives."
Companhia Paranaense said in a statement that its board has
authorized the acquisition, which requires clearance from power
regulator Aneel.
Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants. COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services. The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed. In response, COPEL is
re-evaluating its corporate structure. The government of Parana
controls about 59% of COPEL.
* * *
As reported in the Troubled Company Reporter on Dec. 13, 2006,
Moody's America Latina upgraded the corporate family rating of
Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its
global scale and to Aa2.br from A3.br on its Brazilian national
scale.
COMPANHIA SIDERURGICA: May Expand in Eastern Europe & Asia
----------------------------------------------------------
Adriano Blanaru, the head of analysis with brokerage Link
Corretora, told Business News Americas that Companhia
Siderurgica Nacional could consider expanding in Eastern Europe
and Asia.
Companhia Siderurgica could also increase its market share
through acquisitions in the Americas, as cultural differences
could be a barrier to growth in Asia, BNamericas says, citing
Mr. Blanaru.
Mr. Blanaru told BNamericas, "CSN [Companhia Siderurgica] could
attempt to acquire companies to expand its global presence, but
at the end of the day, the way to grow is organically."
According to BNamericas, Companhia Siderurgica will deploy two
4.5-million ton per year steel projects in southeast Brazil, in
addition to operations in long steel and cement.
BNamericas underscores that Companhia Siderurgica's failed to
combine its North American assets with those of US steel
producer Wheeling-Pittsburgh in 2006. It was also unsuccessful
in acquiring Anglo-Dutch steel group Corus and 52% of Colombian
steelmaker Acerias Paz del Rio in 2007.
Mr. Blanaru told BNamericas, "The move to try to acquire Corus
was very bold. It might be too late for CSN to pursue
consolidation through smaller acquisitions, like [compatriot
long steelmaker] Gerdau did in the past. But a takeover offer
for CSN will eventually occur."
Due to Companhia Siderurgica's failed acquisition plans, it is
considered a midsize firm and probably not in a position to make
large acquisitions, BNamericas states, citing Mr. Blanaru.
Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages. This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.
* * *
As reported on Feb. 2, 2007, Standard & Poor's Ratings Services
affirmed its 'BB' local- and foreign-currency corporate credit
ratings on Brazil-steel maker Companhia Siderurgica Nacional or
CSN and removed them from CreditWatch, where they were placed on
Nov. 17, 2006, with negative implications. S&P said the outlook
is stable.
DURA AUTOMOTIVE: Can Assume Bayer MaterialScience Sales Contract
----------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorizes Dura Automotive Systems Inc.
and its debtor-affiliates to assume a sales contract with Bayer
MaterialScience LLC and its affiliates.
Pursuant to a sales contract dated Aug. 20, 2003, as amended,
Bayer MaterialScience LLC and its affiliates provide the Debtors
resin required for the production of side-sliding glass systems
used in vans, pick-up trucks and sports utility vehicles.
After the Debtors' bankruptcy filing, Bayer required improved
trade terms from the Debtors. Bayer also informed the Debtors
that it intends to implement a previously announced price
increase.
Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A.,
in Wilmington, Del., relates that since their bankruptcy filing,
the Debtors have been concerned that suppliers could disrupt
production at their automotive operations if they refuse to
provide the Debtors with needed parts and equipment.
Thus, the Debtors sought to consensually improve their trade
terms with Bayer and to resolve its concerns.
On March 1, 2007, the Debtors and Bayer informally agreed to the
framework for a postpetition agreement amending the Sales
Contract. Specifically, the parties agree that:
(a) Bayer will grant the Debtors more favorable trade terms
and price concessions;
(b) the Debtors will assume the Sales Contract;
(c) amounts payable pursuant to Section 365(b)(1)(A) of the
Bankruptcy Code to cure any defaults will not exceed
US$564,000.
Mr. Samis maintains that assuming the Sales Contract, as
amended, will allow the Debtors to benefit from the improved
pricing and favorable trade terms.
The Debtors have redacted sensitive pricing and customer-
specific trade terms from the copies of the Amendment Agreement
and Sales Contract filed with the Court. Mr. Samis notes that,
if revealed, the information on the Amendment Agreement and the
Sales Contract could hinder or negatively influence the Debtors'
current and future negotiations with other suppliers.
The Debtors have provided unredacted copies of the Amendment
Agreement and Sales Contract to the U.S. Trustee, the Official
Committee of Unsecured Creditors and the ad hoc committee of
certain of their prepetition second lien secured lenders.
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. 16;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DURA AUTOMOTIVE: Exclusive Plan-Filing Period Extended to May 23
----------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware extended Dura Automotive Systems Inc.
and its debtor-affiliates' exclusive periods:
(i) to propose and file a plan of reorganization through and
including May 23, 2007; and
(ii) solicit acceptances of that plan through and including
July 23, 2007.
As reported in the Troubled Company Reporter on March 1, 2007,
the Debtors said extending their exclusive periods will permit
them to develop an appropriate plan of reorganization that will
best meet the creditors' needs and fit into the development of
their business plan
The Debtors have sufficiently large and complex cases, which
involves 41 debtors, with two tranches of secured institutional
debt that are the subject of an intricate intercreditor
agreement and multiple issuances of unsecured institutional debt
in addition to the standard classes of secured, priority,
priority tax, and general unsecured claims.
Adding complexity to the Debtors' prepetition financial balance
sheet and equity structure is the potential avoidance action
against the Second Lien Lenders. This potential litigation has
taken time to analyze, and will continue to influence the course
of the Debtors' Chapter 11 cases and the development of a plan
of reorganization.
The Debtors said the extension is intended to facilitate an
orderly, efficient and cost-effective process for the benefit of
all creditors.
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. 16;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
FIAT SPA: CEO Sergio Marchionne Warns Cutback on Production
-----------------------------------------------------------
Fiat S.p.A. CEO Sergio Marchionne cautioned a possible reduction
on auto production in Europe resulting from the European
Commission's plan to cap carbon-dioxide emission from cars,
Budapest Business Journal reports.
According to BBJ, the 27-nation European Union's regulatory arm
commission is processing a legislation that would reduce carbon-
dioxide discharges from cars in Europe to an average of 120
grams a kilometer in 2012. The commission also wants engine
emissions to be reduced to 130 grams and an extra 10-gram cut to
come from improvements in car parts and fuels.
"The timelines that have been imposed and the size of the
reduction are not technologically feasible," Mr. Marchionne, who
is also president of the European Automobile Manufacturers
Association, was quoted by BBJ as saying. "It is not doable at
Fiat, it is not doable as a whole for the European car industry.
We'll have to curtail production," he added.
The proposal will need the support of EU governments and the
European Parliament. The process of approval could last until
2009 or longer.
"The industry does need lead time," Mr. Marchionne said. "This
is not a grocery store. Cars being sold in 2012 are being
worked on now," he added.
Ratings agency Standard & Poor's stated that European carmakers'
profits may be seriously undermined by the cost of the planned
EU legislation. A limit on engine carbon-dioxide emissions of
130 grams a kilometer in 2012 may cost EUR600 to EUR3,000 per
vehicle compared with average profit margin of less than EUR500
per unit, BBJ relates.
According to Mr. Marchionne, the commission plan would be the
most expensive way of cutting carbon-dioxide emissions from cars
because it directs the burden mainly on the auto industry.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems. Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB-'. At the same time, Standard & Poor's
affirmed its 'B' short-term rating on Fiat. S&P said the
outlook is stable.
Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from
Stable. Its Issuer Default rating and senior unsecured rating
are affirmed at BB-. The Short-term rating is affirmed at B.
Around EUR6 billion of debt is affected by this rating action.
The Troubled Company Reporter - Asia Pacific reported that
Moody's Investors Service changed the outlook on Fiat SpA's Ba3
Corporate Family Rating to positive from stable and affirmed the
long-term senior unsecured ratings as well as the short-term
non-Prime rating.
HUGHES COMM: Reports US$858 Million in Revenues for 2006
--------------------------------------------------------
Hughes Communications Inc. disclosed its financial results for
the fourth quarter and year ended Dec. 31, 2006. Hughes'
consolidated operations are classified into three reportable
segments: VSAT; Telecom Systems; and Other. The VSAT and
Telecom Systems segments represent all the operations of Hughes
Network Systems, LLC, Hughes' principal operating subsidiary.
The Other segment includes the financial results of Hughes
Corporate, Electronic System Products, Inc., and investments in
the other companies that were contributed from SkyTerra
Communications, Inc., Hughes' predecessor, prior to the
separation of SkyTerra and Hughes in February 2006.
"Hughes Network Systems LLC had strong financial performance in
2006," said Pradman Kaul, president and chief executive officer.
"Revenues increased by 6% over 2005 to US$858 million and our
profitability in 2006 was also very strong. Operating Income
for the year was US$58 million, a growth of 27% over 2005;
EBITDA increased by 24% to US$108 million in 2006 over 2005; and
Adjusted EBITDA grew by 9% to US$126 million in the same period.
We generated US$92 million of cash from operations in 2006,
which is more than double what we generated in 2005. The major
contributors to revenue growth were our consumer/SMB and mobile
satellite businesses. Consumer/SMB subscribers grew 19% from
274,400 at the end of 2005 to 327,500 at the end of 2006.
Revenue in the consumer/SMB business also grew by 18% over FY
2005 to US$292 million. Revenue from our mobile satellite
business grew 47% in 2006 over 2005, primarily through revenue
from Thuraya, Terrestar, and ICO. Our North American and
International enterprise businesses continued to be a steady
revenue base contributing over half of HNS' total revenue in
2006, with significant orders from Exxon Mobil, Walgreens, Saudi
MOFA, Enlaces Integra, Rite Aid, GTECH, Federal Express, Telmex,
Galaxy Broadband, Murphy Oil, Jack in the Box, Sonic, Real Time,
Yum Brands, and others. Overall, we are pleased that we have
delivered on our business plan both financially and
strategically in 2006."
"These impressive full-year results were a result of sustained
quarterly performance, including a strong fourth quarter,"
continued Mr. Kaul. "We grew fourth quarter 2006 revenue by 7%
and EBITDA by 13% over the fourth quarter of 2005. Adjusted
EBITDA for fourth quarter 2006 grew 11% over the same period in
2005. The growth engines in the fourth quarter were once again
the consumer/SMB and mobile satellite businesses; the
consumer/SMB revenue grew by 19% in the fourth quarter of 2006
over the fourth quarter of 2005, and the mobile satellite
revenue more than doubled in the fourth quarter of 2006 over the
fourth quarter of 2005."
Commenting on the financial performance, Grant Barber, executive
vice president and chief financial officer said, "Our revenue,
EBITDA, and Adjusted EBITDA have shown steady improvement in the
year ended December 2006 over the same period in 2005. Our
ongoing focus on working capital management resulted in a net
generation of US$92 million of cash from operations in the year
ended December 2006, a significant improvement over year ended
December 2005. HNS ended full-year 2006 with a strong balance
sheet including US$203 million of cash and marketable securities
for HNS. The consolidated cash and marketable securities
balance for Hughes as of the year ended Dec. 31, 2006, was
US$214 million. I am also pleased to report that in February
2007, we closed a US$115 million senior unsecured credit
facility with a syndicate of banks, further improving our
liquidity."
Selected Highlights
-- Mobile Satellite Ventures, LP and HNS announced the
signing of a contract under which HNS will develop and
supply MSV's Satellite Base Transceiver Sub-System
(S-BTS). The contract value is over US$43 million. The
S-BTS is the central element of the base station, which
will facilitate communication between MSV's satellites and
terrestrial communications network.
-- HNS announced that the European Telecommunications
Standards Institute has approved the Internet Protocol
over Satellite.v2 (IPoS.v2) air interface standard, which
incorporates the DVB-S2 industry standard with ACM
(Adaptive Coding and Modulation). IPoS is the most widely
deployed satellite broadband standard in the world.
-- Pilot sites in the US and UK have been chosen for the
introduction of BPTV, an innovative digital signage media
service with advertising and unique BP programming content
shown on screens placed at gasoline stations, as well as
in-store. The HughesNet(TM) Digital Media Solution that
delivers BPTV programming encompasses the planning,
installation, and remote operation of the screens,
speakers and supporting broadband network infrastructure.
Content broadcasting is delivered over Hughes' cost-
effective, highly-scalable HughesNet broadband service
platform. In addition, Hughes provides program
scheduling, management, and independent certification of
advertisements -- a critical issue for advertisers.
-- The number of HughesNet consumer/SMB subscribers reached
327,500 at the end of the fourth quarter of 2006, a 19%
growth over the same period in 2005.
-- HNS announced that it was named North American Space &
Communications Company of the Year by global growth
consulting company Frost & Sullivan. The prestigious
award is presented only to companies that demonstrate and
exemplify the criteria set forth by Frost & Sullivan,
such as technology innovation, market potential, proof of
success, strategic marketing, revenue growth, new market
penetration, visibility, and leadership.
To summarize, Mr. Kaul said, "Our fundamental message is the
same today as it was twelve months ago -- a strong enterprise
segment that provides the core revenue with loyal customers who
commit to long-term contracts, with growth being fueled by the
consumer/SMB and mobile satellite markets. Looking ahead, we
expect to commence commercial service on SPACEWAY(TM) 3, our
next- generation satellite, in early 2008. We expect that
SPACEWAY 3 will substantially reduce our costs and open up new
revenue opportunities going forward in the enterprise and
consumer/SMB markets. We believe that all the above, combined
with the strong financial performance in 2006, have positioned
HNS very well for 2007 and beyond."
Headquartered in Germantown, Maryland, Hughes Network Systems
LLC (NASDAQ:HUGH) -- http://www.hughes.com/-- a wholly owned
subsidiary of Hughes Communications Inc., provides broadband
satellite networks and services for large enterprises,
governments, small businesses, and consumers. Hughes offers
complete turnkey solutions, including program management,
installation, training, maintenance and support-for professional
and rapid deployment anywhere, worldwide. The company owns and
operates a global base of HughesNet shared hub services
throughout the United States, Brazil, China, Europe, and India.
In Europe, Hughes maintains operations facilities and/or sales
offices in Germany, U.K., Italy, Czech Republic, and Russia.
* * *
Moody's Investors Service assigned a B1 rating to Hughes Network
Systems LLC's proposed US$115 million senior unsecured term
loan, due 2014.
In addition, the ratings agency also affirmed the B1 corporate
family rating, the B1 rating on the existing US$450 million
senior notes due 2014 and the Ba1 rating on the US$50 million
senior secured revolving credit facility. The proceeds of the
new term loan will be used primarily to fund capital
expenditures and for general corporate purposes.
PETROLEO BRASILEIRO: Conducting Study on Ethanol Production
-----------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA is
carrying out a feasibility study with Mitsui & Co. to jointly
produce ethanol in Brazil, the latter's official told the
Associated Press.
The Mitsui official commented to AP, "We are still carrying out
a feasibility study on plans to produce bioethanol in Brazil."
Mitsui wants to complete the study as early as possible, AP
says, citing the official.
According to AP, Petroleo Brasileiro already confirmed that it
was negotiating a partnership with Mitsui to produce ethanol,.
Paulo Roberto Costa, an executive in charge of supply at
Petroleo Brasileiro, told News daily Nikkei that the firm will
sign a 15- to 20-year long-term supply contract for export to
Japan. The production plant to be constructed at a "highly
profitable" site will be chosen among 40 candidate sites,
including those in Sao Paulo and Minas Gerais.
Brazilian local companies will also invest in the project, with
a combined stake by Mitsui and Petroleo Brasileiro expected to
be around 20%, Nikkei states.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Output Rises 1.3% in February
--------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA said in a
statement that its domestic and international production
increased 1.3% to 1.94 million barrels per day in February 2007,
compared to January 2007.
Business News Americas relates that domestic output rose 1.1% to
1.80 million barrels per day in February, compared to January.
Meanwhile, international production in eight countries increased
2.7% to 131,306 barrels per day.
According to BNamericas, Petroleo Brasileiro's international
production came from operations in:
-- Angola,
-- Argentina,
-- Bolivia,
-- Colombia,
-- Ecuador,
-- Peru,
-- US, and
-- Venezuela.
Most of the production came from Argentina, which was at 57,193
barrels per day, BNamericas notes.
Petroleo Brasileiro said in a statement that domestic, and
offshore/onshore output was 1.56 million barrels per day and
231,900 barrels per day respectively.
BNamericas underscores that Petroleo Brasileiro said that the
increase in production was due to:
-- resumed production at the P-37 platform in the
Marlim field, after a planned shutdown in January;
-- the start of production at the Cottonwood field in
the US; and
-- the improved performance in Ecuador.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: To Probe Alleged Iparinga Stock Trading
------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras has formed an Internal
Commission to investigate the facts divulged by the Securities
and Exchange Commission, on March 23, regarding alleged
"Ipiranga Group stock trading with evidence of privileged
information provided by an employee holding a managerial
position at one of the companies that purchased the Ipiranga
Group" before the acquisition operation Petrobras, the Ultra
Group, and Braskem carried out was announced.
As reported in the Troubled Company Reporter-Latin America on
March 21, 2007, the parties have reached an understanding to
purchase Ipiranga Group businesses, consolidating and increasing
petrochemical and fuel distribution sector businesses.
The transaction is approximately US$4 billion.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
TELEMIG CELULAR: Ericsson to Provide Commercial Network for Firm
----------------------------------------------------------------
Telecoms equipment provider Ericsson said in a statement that it
will provide a high-speed packet access or HSPA commercial
network for mobile phone operator Telemig Celular.
Business News Americas relates that under the sole supplier
accord, Ericsson will supply Telemig Celular with 3G/WCDMA core
and radio networks, including the first HSPA-enabled network in
Brazil. Ericsson will provide network operation, systems
integration and business consulting services.
According to Ericsson's statement, HSPA will let Telemig Celular
offer new mobile broadband services, delivering broadband speeds
of up to 14.4 million bits per second.
Telemig Celular Chief Executive Officer Andre Mastrobuono told
BNamericas, "We will be able to offer digital inclusion via PC
cards that will bring internet to remote areas in a cost-
efficient way, creating new ways for all users to connect to
others and find information wherever they are."
Telemig Celular said in a statement that on average, users will
be able to download 20 times faster than with a GSM/GPRS
connection.
Ericsson will also expand and upgrade Telemig Celular's network
across Minas Gerais, BNamericas states.
Headquartered in Belo Horizonte, Brazil, Telemig Celular is the
leading provider of mobile communications services in the state
of Minas Gerais, Brazil. As of Sept. 30, 2006, Telemig had 3.42
million subscribers, with a market share of 33% in its
concession area.
As reported in the Troubled Company Reporter-Latin America on
Jan. 4, 2007, Moody's Investors Service placed under review for
possible downgrade the B2 foreign currency rating of the US$120
million senior unsecured notes units issued by Telemig Celular
SA and Amazonia Celular SA.
Moody's rating action reflected primarily Amazonia's overall
deteriorated credit metrics as a result of weakened operating
margins and increased competitive pressures, as well as Moody's
concerns regarding the company's tightened liquidity position
due to a substantial concentration of debt maturity in the short
term.
TRW AUTOMOTIVE: Gets Requisite Consents to Amend Note Indentures
----------------------------------------------------------------
TRW Automotive Holdings Corp., through its subsidiary TRW
Automotive Inc., in connection with the previously announced
cash tender offers and consent solicitations for its outstanding
US$825 million 9-3/8% Senior Notes due 2013, EUR130 million
10-1/8% Senior Notes due 2013, US$195 million 11% Senior
Subordinated Notes due 2013 and EUR81 million 11-3/4% Senior
Subordinated Notes due 2013, has received the requisite consents
to amend the indentures governing each series of Notes.
As of 5:00 p.m., New York City time, on March 23, 2007, tenders
and consents had been received with respect to approximately
US$820.7 million aggregate principal amount, or 99.4% of the
total outstanding, of the 9-3/8% Senior Notes, approximately
EUR120.5 million aggregate principal amount, or 92.7% of the
total outstanding, of the 10-1/8% Senior Notes, approximately
US$189.2 million aggregate principal amount, or 97.0% of the
total outstanding, of the 11% Senior Subordinated Notes, and
approximately EUR78.9 million aggregate principal amount, or
97.1% of the total outstanding, of the 11-3/4% Senior
Subordinated Notes. The company has executed supplemental
indentures with The Bank of New York, as trustee, effectuating
proposed amendments to the indentures governing each series of
Notes, all as described in the Offer to Purchase and Consent
Solicitation Statement dated March 12, 2007. The settlement for
the early tender of such notes is expected to occur on
March 26, 2007. The supplemental indentures will become
operative immediately before such early settlement of the tender
offers.
The tender offers will expire at midnight, New York City time,
on April 6, 2007, unless extended or earlier terminated.
Settlement for all Notes tendered after the Consent Date, but on
or prior to the Expiration Date, is expected to be promptly
following the Expiration Date.
Lehman Brothers Inc., Lehman Brothers International (Europe),
Banc of America Securities LLC, Banc of America Securities
Limited, Deutsche Bank Securities Inc., Deutsche Bank AG, London
Branch, Goldman, Sachs & Co. and Merrill Lynch & Co. are each
acting as a Dealer Manager and Solicitation Agent for the tender
offers and the consent solicitations. The Depositary is The
Bank of New York and the Information Agent is Global Bondholder
Services Corporation.
Requests for documentation should be directed to:
Global Bondholder Services Corporation
(866) 924-2200
The Bank of New York
101 Barclay Street - 7 East
New York, NY 10286
Attn: William Buckley
Tel: (212) 815-5788
Fax: (212) 298-1915
-- or --
The Bank of New York (Luxembourg) S.A.
Aerogolf Center - 1A
Hoehenhof, L-1736
Senningerberg, Luxembourg
Tel: +(352) 34 20 90 5637.
Questions regarding the tender offers and the consent
solicitations should be directed to Lehman Brothers at
(800) 438-3242 (toll-free) or (212) 528-7581 (collect).
Headquartered in Livonia, Michigan, TRW Automotive Holdings
Corp. (NYSE:TRW) -- http://www.trwauto.com/-- is an automotive
supplier. Through its subsidiaries, the company employs
approximately 63,800 people in 26 countries including Brazil,
China, Germany and Italy. TRW Automotive products include
integrated vehicle control and driver assist systems, braking
systems, steering systems, suspension systems, occupant safety
systems (seat belts and airbags), electronics, engine
components, fastening systems and aftermarket replacement parts
and services.
* * *
Fitch Ratings affirmed TRW Automotive Holdings Corp.'s BB Issuer
Default Rating, BB+ Senior secured bank lines, BB- Senior
unsecured notes, and B+ Senior subordinated unsecured Notes on
September 2006.
TRW AUTOMOTIVE: Closes Senior Notes Offering
--------------------------------------------
TRW Automotive Holdings Corp., through its subsidiary TRW
Automotive Inc., has closed its offering of US$500,000,000 in
aggregate principal amount of its 7% Senior Notes due 2014,
EUR275,000,000 in aggregate principal amount of its 6-3/8%
Senior Notes due 2014, and US$600,000,000 in aggregate principal
amount of its 7-1/4% Senior Notes due 2017. The Company
initiated the Notes offering on March 12, 2007.
The Notes were issued pursuant to a private placement and are
expected to be resold by the initial purchasers under Rule 144A
and Regulation S under the Securities Act of 1933, as amended.
The Notes have not been registered under the Securities Act and
may not be offered or sold in the United States absent
registration under the Securities Act or an applicable exemption
from the registration requirements of the Securities Act.
Upon closing, the net proceeds from the Notes offering were
primarily used to purchase any and all notes tendered on or
prior to 5:00 p.m., New York City time, on March 23, 2007, in
conjunction with the company's previously announced cash tender
offers and consent solicitations for its outstanding US$825
million 9-3/8% Senior Notes due 2013, EUR130 million 10-1/8%
Senior Notes due 2013, US$195 million 11% Senior Subordinated
notes due 2013 and EUR81 million 11-3/4% Senior Subordinated
Notes due 2013.
Headquartered in Livonia, Michigan, TRW Automotive Holdings
Corp. (NYSE:TRW) -- http://www.trwauto.com/-- is an automotive
supplier. Through its subsidiaries, the company employs
approximately 63,800 people in 26 countries including Brazil,
China, Germany and Italy. TRW Automotive products include
integrated vehicle control and driver assist systems, braking
systems, steering systems, suspension systems, occupant safety
systems (seat belts and airbags), electronics, engine
components, fastening systems and aftermarket replacement parts
and services.
* * *
Fitch Ratings affirmed TRW Automotive Holdings Corp.'s BB Issuer
Default Rating, BB+ Senior secured bank lines, BB- Senior
unsecured notes, and B+ Senior subordinated unsecured Notes on
September 2006.
===========================
C A Y M A N I S L A N D S
===========================
AMERICAN BUSINESSOWNERS: Proofs of Claim Filing Ends on April 20
----------------------------------------------------------------
American Businessowners Assurance Ltd.'s creditors are given
until April 20, 2007, to prove their claims to S.L.C. Whicker
and K.D. Blake, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
American Businessowners' shareholders agreed on Feb. 22, 2007,
to place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
K.D. BLAKE
S.L.C. Whicker
Attention: Bekilizwe Dube
P.O. Box 493
Grand Cayman KY1-1106
Cayman Islands
Telephone: 345-914-4464
Fax: 345-949-7164
AUSTIN CAPITAL: Will Hold Last Shareholders Meeting on April 20
---------------------------------------------------------------
Austin Capital All Seasons Offshore Fund II Ltd. will hold its
final shareholders meeting on April 20, 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,
and
2) authorize the liquidators to retain the records 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 liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd., Walker House
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
EMERGING TECHNOLOGY: Sets Last Shareholders Meeting for April 19
----------------------------------------------------------------
Emerging Technology Strategy will hold its final shareholders
meeting on April 19, 2007, at:
Cititrust (Bahamas) Limited
P.O. Box N-1576
Citibank Bldg., Thompson Boulevard
Oakes Field, New Providence
Nassau, Bahamas
These agendas will be taken during the meeting:
1) purpose of presenting to the members an account of the
winding up of the company, 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:
Michael R. Fields
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309
Ugland House, South Church Street
George Town, Grand Cayman
Cayman Islands
EMERGING TECHNOLOGY PORTFOLIO: Shareholders Meeting Is April 19
---------------------------------------------------------------
Emerging Technology Portfolio will hold its final shareholders
meeting on April 19, 2007, at:
Cititrust (Bahamas) Limited
P.O. Box N-1576
Citibank Bldg., Thompson Boulevard
Oakes Field, New Providence
Nassau, Bahamas
These agendas will be taken during the meeting:
1) present to the members a winding up account of the
company, and
2) hear 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:
Michael R. Fields
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309
Ugland House, South Church Street
George Town, Grand Cayman
Cayman Islands
OVERSEAS II: Will Hold Last Shareholders Meeting on April 19
------------------------------------------------------------
Overseas II Export Ltd. will hold its final shareholders meeting
on April 19, 2007, at:
Maples Finance Limited,
Queensgate House, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) purpose of presenting to the members an account of the
winding up of the company, 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:
Emile Small
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
RHJCF LTD: Sets Last Shareholders Meeting for April 20
------------------------------------------------------
RHJCF Ltd. will hold its final shareholders meeting on
April 20, 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,
and
2) authorize the Liquidators to retain the records 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 liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd., Walker House
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
=========
C H I L E
=========
COEUR D'ALENE: To Elect Sebastian Edwards as New Board Member
-------------------------------------------------------------
Coeur d'Alene Mines Corporation has intended to nominate
Sebastian Edwards, 53, to stand for election to its board of
directors at the annual meeting of its stockholders on
May 8, 2007.
Mr. Edwards is Henry Ford II Professor of International Business
Economics at the Anderson Graduate School of Management at the
University of California, Los Angeles. He has more than 30
years of varied experience in international finance and
economics. In addition to his professorship at UCLA, he is:
* Chairman of the Inter American Seminar on Economics;
* a member of the Scientific Advisory Council of the Kiel
Institute of World Economics in Germany; and
* a research associate at the National Bureau of Economic
Research.
He is the author of numerous books and articles and regularly
speaks before groups interested in world economic affairs.
Mr. Edwards previously served as Chief Economist for the World
Bank for the Latin America and Caribbean Region and as President
of the Latin American and Caribbean Economic Association. He
also previously taught at IAE Universidad Austral in Argentina
and at the Kiel Institute.
A native of Santiago, Chile, Mr. Edwards holds Ph.D and M.A.
degrees in Economics from the University of Chicago and
completed his undergraduate work at the Universidad Catolica in
Chile.
Dennis E. Wheeler, Coeur's Chairman, President, and Chief
Executive Officer, said, "With the depth and breadth of his
international experience and his particular focus on South
America -- where Coeur has three major investments -- we believe
Sebastian will provide an added dimension to our board. We look
forward to working with him and appreciate his decision to join
the board."
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.
===============
C O L O M B I A
===============
ARMOR HOLDINGS: Receives US$25.5 Mil. New Order from U.S. Army
--------------------------------------------------------------
Armor Holdings Inc. has received a new delivery order under an
existing contract valued at US$25.5 million from the U.S. Army
Research Engineering and Development Command, Aberdeen. The
company stated that the new order is for the continued
production of Enhanced Small Arms Protective Inserts -- ESAPI --
with work to be performed in 2007 by the Armor Holdings
Aerospace and Defense Group at its facility located in Phoenix,
Arizona.
Robert Schiller, President of Armor Holdings, Inc., said, "We
are pleased that the U.S. Army is continuing to call on Armor
Holdings to provide this important soldier protection equipment,
and we are continuing to invest in product development for this
life saving body armor."
Headquartered in Jacksonville, Florida, Armor Holdings, Inc.
(NYSE: AH) -- http://www.armorholdings.com/-- manufactures and
distributes security products and vehicle armor systems for the
law enforcement, military, homeland security, and commercial
markets. The company's mobile security division is located in
Mexico, Venezuela, Colombia and Brazil.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba3 Corporate
Family Rating for Armor Holdings Inc.
Additionally, Moody's affirmed its B1 ratings on the company's
2% Convertible Senior Subordinated Notes Due 2024 and 8.25%
Senior Subordinated Notes Due 2013. Moody's assigned those
debentures an LGD5 rating suggesting noteholders will experience
a 77% loss in the event of default.
CHIQUITA BRANDS: Says Arms Shipments Press Reports Inaccurate
-------------------------------------------------------------
Chiquita Brands International Corporate Communications Director
Michael Mitchell told Fresh Plaza that reports about arms
deliveries in 2001 that implicated the firm and its workers were
inaccurate.
Chiquita Brands explained to Fresh Plaza that the 2001 incident
was fully investigated by the Colombian government and
international authorities, including the Organization of
American States, but no wrongdoing by Chiquita Brands or any of
its workers was found. An employee of Chiquita's local unit,
Banadex, was held for a short time. However, after the Office
of the Attorney General of Colombia's investigation, he was
released. The Colombian government indicted four Colombian
customs officers as a result of its investigation.
Soon after learning of the incident, Chiquita Brands and Banadex
voluntarily decided to stop accepting cargo from third-party
ships at the Colombian facility, not waiting for any legal
authority's order. Until Banadex was sold, the company accepted
import cargo only from ships owned or operated by Chiquita
Brands, the latter told Fresh Plaza.
Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.
Moody's Investors Service downgraded the ratings for Chiquita
Brands L.L.C., as well as for its parent Chiquita Brands
International, Inc. Moody's said the outlook on all ratings is
stable.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.
ECOPETROL: Shortlists 11 Foreign Investment Banks for IPO
--------------------------------------------------------
Colombian state-owned oil company Ecopetrol said in a statement
that it has short listed 11 European and US investment banks as
potential financial advisors in its Initial Public Offering on
Aug. 27.
Business News Americas relates that Ecopetrol aims to sell up to
20% of its shares.
The report says that the banks included in the short list are:
-- ABN Amro-Rothschild,
-- Bank of America,
-- Citibank,
-- Credit Suisse,
-- Deutsche Bank,
-- Goldman Sachs,
-- JP Morgan,
-- Lehman Bros,
-- Merrill Lynch,
-- Morgan Stanley, and
-- UBS.
Ecopetrol told BNamericas that the selection process could end
in the second half of April.
According to BNamericas, Ecopetrol will choose two groups of
investment banks from the shortlist:
-- the first group of up to three international banks
and one Colombian bank will assess Ecopetrol and
structure the IPO; and
-- the second group will include one investment bank
that must conduct a second assessment of Ecopetrol.
Out of five candidates, Ecopetrol chose the temporary joint
venture between law firms Duran & Osorio and Edgar Paris to help
the firm in the legal aspects of the IPO, BNamericas states.
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: Completes US$1.6-Billion Debt Refinancing Deal
----------------------------------------------------------
US Airways Group Inc. has completed a US$1.6 billion debt
refinancing transaction. The new loan, which was arranged by
Citigroup Global Markets Inc. and Morgan Stanley Senior Funding,
Inc., as Joint Lead Arrangers, will bear interest at LIBOR plus
2.50 percent. The applicable margin is reduced as the loan is
paid down or as the company's credit rating improves. It can be
as low as LIBOR plus 2.00 percent if the loan balance is under
US$600 million or the loan facility credit rating, as determined
by Moody's Investor Services and Standard & Poor's, improves to
Ba3 and BB-, respectively. The term of the loan is seven years
with substantially all of the principal amount payable at
maturity. The loan requires the company to maintain a minimum
level of unrestricted cash and a minimum collateral coverage
ratio.
The refinancing improves liquidity over the next seven years by
reducing principal payments and lowering near-term interest
expense. Upon funding, the company extinguished two separate
debt facilities: a US$1.25 billion senior secured credit
facility and a US$325 million unsecured debt facility. The
additional US$25 million will be used for general corporate
purposes. The new loan will reduce the blended interest margin
by over 100 basis points.
The refinancing will reduce the Company's debt amortization by
approximately US$92 million annually from 2008 - 2010 and
US$1.234 billion in 2011. In addition, interest expense will be
reduced by approximately US$14 million in 2007 and US$13 million
in 2008.
Senior Vice President and Chief Financial Officer Derek Kerr
said, "We are extremely pleased with the outcome of this
refinancing. Today's refinancing enables us to continue to
strengthen our balance sheet as we work to complete our
integration and meet our primary objectives of reducing
borrowing costs, deferring debt maturities and reducing our
covenant package. Completing this transaction provides further
evidence of the financial market's confidence in the new US
Airways."
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.
* * *
As reported in Troubled Company Reporter on Feb. 1, 2007,
Standard & Poor's Ratings Services affirmed its ratings on US
Airways Group. and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
including the 'B-' corporate credit ratings. The ratings were
removed from CreditWatch, where they were placed with developing
implications on Nov. 15, 2006. S&P said the outlook is
positive.
===================================
D O M I N I C A N R E P U B L I C
===================================
CERVECERIA NACIONAL: Moody's Puts Ba3 Rating on US$175MM Notes
--------------------------------------------------------------
Moody's Investors Service assigned a Ba3 local currency rating
to Cerveceria Nacional Dominicana, C. por A.'s 16% US$175
million Dominican peso-linked senior unsecured notes due 2012.
Moody's also placed on review for possible upgrade the B1 rating
of Cerveceria Nacional's 8.0% US$255 million senior notes due
2014, issued earlier this month and affirmed the Ba3 local
currency corporate family rating and the B1 foreign currency
CFR, which is on review for upgrade. The 2014 notes' rating and
the foreign currency CFR are constrained by the Dominican
Republic's B1 foreign currency country ceiling, which is
currently on review for upgrade. The outlook for the 2012 notes
and the local currency corporate family rating is stable.
Cerveceria Nacional is the main operating subsidiary of E. Leon
Jimenes (ELJ), a family-controlled holding company based in the
Dominican Republic. The 2012 notes will refinance secured bank
debt related to E. Leon Jimenes's buyout from Phillip Morris
International in November 2006, reducing secured debt from
US$200 million to about US$40 million, or 9% of total debt.
Post-buyout, E. Leon Jimenes owns 83.5% of Cerveceria Nacional,
while Heineken and other minority shareholders own 9% and 7.5%,
respectively.
Rating assigned:
-- 16% US$175 million Dominican peso linked senior
unsecured notes due 2012, at Ba3 (local currency)
Rating placed on review for upgrade:
-- 8.0% US$255 million senior unsecured notes due 2014,
at B1 on review for upgrade (foreign currency)
Ratings affirmed:
-- Local currency corporate family rating, at Ba3
-- Foreign currency corporate family rating, at B1 on review
for upgrade
The outlook for the 2012 notes and the local currency corporate
family rating is stable.
Cerveceria Nacional's Ba3 local currency CFR balances credit
strengths related to the company's leading Dominican beer
franchise, strong profitability and healthy credit metrics, with
its limited diversification and scale, and relatively aggressive
financial policies in light of existing country risk and
currency exposures.
The Ba3 local currency rating for the 2012 notes is at the same
level as the local currency CFR, reflecting the preponderance of
the senior unsecured debt class in the company's capital
structure following the significant reduction of secured debt
that was funded by the notes' issuance. The 2012 notes rank
pari passu with the 2014 notes and have the same covenant terms.
The B1 foreign currency rating of the 2014 notes was placed on
review for possible upgrade because of the abovementioned
reduction of secured debt, which increased the notes' expected
recovery in the event of default. The notes' rating is
constrained by the Dominican Republic's foreign currency country
ceiling and would be upgraded if and when Moody's were to
upgrade the foreign currency country ceiling.
The stable rating outlook for the 2012 notes and the local
currency CFR reflects our expectation of:
i) a solid operating performance in line with trends
seen in 2006,
ii) continued strong leadership in the Dominican beer
market despite aggressive competition from AmBev or
other potential new entrants, and
iii) annual free cash flow after dividends in excess
of scheduled debt amortization.
The foreign currency CFR is currently on review for upgrade.
Headquartered in Santo Domino, Dominican Republic, Cerveceria
Nacional Dominicana, C. por A. is the leading beer company in
the Dominican Republic. Cerveceria Nacional's main beer brands
are Presidente, Presidente Light and Bohemia, which account for
about 95% of revenues. The company also is the leader in the
Dominican non-alcoholic malts market and has a growing export
business, which serves the U.S. East Coast, the Caribbean and
various other regions including Europe. Cerveceria Nacional is
the main operating subsidiary of E. Leon Jimenes, a family-
controlled holding company. Fiscal 2006 revenues reached about
US$497 million.
PAYLESS SHOESOURCE: Hires Bernard Figueroa as Design Director
-------------------------------------------------------------
Payless ShoeSource Inc. has hired Bernard Figueroa, most
recently head of Footwear Design for Michael Kors, as Payless'
Director of Design for Women's Footwear. Mr. Figueroa joins the
Payless New York Design Center team, which is responsible for
developing original product designs supporting the retailer's
seasonal collection of on-trend fashion products for the
women's, men's and kids' categories.
"We are delighted to have someone of Bernard's talent and
experience join the New York design team, a key group in our
mission to democratize fashion and design in footwear by
delivering brands that offer great style and design at a great
price," said Matt Rubel, CEO of Payless ShoeSource. "Bernard
has a rich and successful history with more than two decades in
footwear design at leading companies. At Michael Kors, he
managed all footwear product development for the MK and Kors
labels and before that he launched his own luxe brand that sold
internationally for a decade. We are thrilled to have Bernard
join us and to focus on product design and development for our
expanding women's brands."
Mr. Figueroa was with Michael Kors since 2000 serving as Design
Director and later Vice President of Design. Prior to joining
Michael Kors, he launched his own couture collection of footwear
and accessories, called Mr. Figueroa, which sold globally from
1993 to 2003 including at Bergdorf Goodman, Nieman Marcus, Saks
Fifth Avenue and high-end boutiques in the U.S., Italy, France
and Hong Kong. He has served in a wide range of footwear design
roles around the world at such companies as Rena Lange, Vera
Wang, Coach, Di Sandro, Charles Jourdan, Adrienne Vittadini,
Rockport, Esprit de Corp., Christian Dior, Claude Montana and
Thierry Mugler Runway.
Also joining the Payless New York Design Center team is Michael
Rugai, lead footwear designer for the Payless children's
program. Mr. Rugai was most recently with ES Originals where he
served as Senior Footwear Designer for nearly seven years.
Prior to that, he served as Footwear Designer at BBC Unlimited.
Mr. Rugai holds a Bachelor of Fine Arts from the School of Art
and Design at Pratt Institute.
"Micheal Rugai is another great talent, and we look forward to
his contributions to our children's branded fashion, athletic,
and character products," said Mr. Rubel.
Both new designers are expected to begin in their roles this
month, and report to Robert Mingione, Vice President of Product
Design for Payless ShoeSource and head of the company's New York
Design Center, due to officially open this summer.
Headquartered in Topeka, Kansas, Payless ShoeSource Inc. (NYSE:
PSS) -- http://www.payless.com/-- is a family footwear
specialty retailer with 4,605 retail stores, as of fiscal
yearend Jan. 28, 2006 (fiscal 2005), including 22 stores not
open for operations. The Company's Payless ShoeSource retail
stores in the United States, Canada, the Caribbean, Central
America, South America and Japan sold 182 million pairs of
footwear, in fiscal 2005. The Company operates its business in
two segments -- Payless Domestic and Payless International. The
Payless Domestic segment includes retail operations in the
United States, Guam and Saipan. The Payless International
segment includes retail operations in Canada; Puerto Rico; the
United States Virgin Islands; Japan; the South American Region,
which includes Ecuador, and the Central American Region, which
includes Costa Rica, Guatemala, El Salvador, the Dominican
Republic, Honduras, Nicaragua, Panama and Trinidad and Tobago.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US and Canadian Retail sector, the rating
agency confirmed its Ba3 Corporate Family Rating for Payless
ShoeSource, Inc., and upgraded its B2 rating on the company's
US$$200 million 8.25% senior subordinated notes to B1.
Moody's also assigned an LGD4 rating to notes, suggesting
noteholders will experience a 64% loss in the event of a
default.
=============
E C U A D O R
=============
DOLE FOOD: Posts US$89 Million Net Loss in Year Ended Dec. 30
-------------------------------------------------------------
Dole Food Company, Inc. incurred a net loss of US$88.98 million
on net revenues of US$6.17 billion for the year ended
Dec. 30, 2006, as compared with a net income of US$44.09 million
on net revenues of US$5.82 million for the comparable period
ended Dec. 31, 2005.
Higher revenues were reported in the company's fresh fruit and
packaged foods operating segments. The company earned operating
income of US$85.61 million in 2006, as compared with US$224.59
million earned in 2005.
Higher commodity costs, primarily fuel and tinplate, continued
to adversely impact operations. Throughout 2006 and 2005, the
company has experienced significant cost increases in many of
the commodities it uses in production, including containerboard,
tinplate, resin and other agricultural chemicals.
For the year ended Dec. 30, 2006, the company recorded a charge
of US$29 million which consisted of US$6.4 million of
restructuring costs and US$22.6 million of non-cash impairment
charges related to the write-off of certain assets. The company
also currently estimates that an additional US$0.8 million of
land clearing costs and employee severance will be incurred and
paid by the end of 2007.
As of Dec. 30, 2006, the company had total assets of US$4.6
billion, total liabilities of US$4.24 billion, minority
interests of US$25.33 million, resulting to total shareholders'
equity totaling US$335.21 million.
The company had retained deficit totaling US$59.68 million as of
Dec. 30, 2006, as compared with retained earnings totaling
US$192.99 million as of Dec. 31, 2005.
As of Dec. 30, 2006, the company increased its cash and cash
equivalents to US$92.41 million, from US$48.81 million as of
Dec. 31, 2005. Cash provided by operating activities was
US$15.92 million, cash used in investing activities was
US$117 million, and cash provided by financing activities was
US$142.83 million.
Borrowings and Credit Facilities
At Dec. 30, 2006, the company had total outstanding long-term
borrowings of US$2.4 billion, consisting primarily of US$1.11
billion of unsecured senior notes and debentures due 2009
through 2013 and US$1.13 billion of secured debt, consisting of
revolving credit and term loan facilities and capital lease
obligations.
As of Dec. 30, 2006, the term loan facilities consisted of
US$223.3 million of Term Loan B and US$744.4 million of Term
Loan C. The term loan facilities bear interest at LIBOR plus a
margin ranging from 1.75% to 2%, dependent upon the company's
senior secured leverage ratio. The weighted average variable
interest rates at Dec. 30, 2006 for Term Loan B and Term Loan C
were LIBOR plus 2%, or 7.5%.
The company entered into a new asset based revolving credit
facility of US$350 million. As of Dec. 30, 2006, the ABL
revolver-borrowing base was US$294.8 million and the amount
outstanding under the ABL revolver was US$167.6 million. The
ABL revolver bears interest at LIBOR plus a margin ranging from
1.25% to 1.75%, dependent upon the company's historical
borrowing availability under this facility. The company had
about US$109.2 million available for borrowings as of
Dec. 30, 2006. In addition, the company had about US$82.4
million of letters of credit and bank guarantees outstanding
under its pre-funded letter of credit facility as of
Dec. 30, 2006.
At Dec. 30, 2006, included in the company's capital lease
obligations is US$85.6 million of vessel financings related to
two vessel leases denominated in British pound sterling. The
interest rates on these leases are based on LIBOR plus a spread.
A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1c23
Fresh-cut Flowers
Fresh-cut flowers revenues in 2006 decreased to US$160.07
million from US$171.25 million in 2005. The decrease was
primarily due to lower sales volumes during the second half of
the year associated with changes in the customer base related to
the implementation of the third quarter restructuring plan,
partially offset by higher overall pricing and additional sales
generated from the Valentine's Day holiday.
During the third quarter of 2006, the company initiated a plan
to restructure its fresh-cut flowers business in order to
implement changes that will create efficiencies, improve
performance and better align supply with demand. In connection
with this initiative, the company expects to incur total costs
of about US$29.8 million.
About Dole Food
Headquartered in Westlake Village, California, Dole Food
Company, Inc. -- http://www.dole.com/-- is a producer and
marketer of fresh fruit, fresh vegetables and fresh-cut flowers,
and markets a line of packaged foods. The company has four
primary operating segments. The fresh fruit segment produces and
markets fresh fruit to wholesale, retail and institutional
customers worldwide. The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia. The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods. Dole's fresh-cut flowers segment
sources, imports and markets fresh-cut flowers, grown mainly in
Colombia and Ecuador, primarily to wholesale florists and
supermarkets in the U.S.
* * *
As reported in the Troubled Company Reporter on Jan. 31, 2007,
Moody's Investors Service downgraded Dole Food Company Inc.'s
corporate family rating to B2 from B1; probability of default
rating to B2 from B1; senior secured bank credit facilities to
Ba3 from Ba2; senior unsecured notes to Caa1 from B3; and
various shelf registrations to (P)Caa1 from (P)B3. Moody's said
the outlook is stable.
On Dec. 11, Standard & Poor's Ratings Services lowered its
ratings on Dole Food Co. Inc. and Dole Holding Co. LLC,
including its corporate credit rating, to 'B' from 'B+'.
PETROECUADOR: Awards Two Crude Supply Shipments to Glencore
-----------------------------------------------------------
Ecuadorian state-run oil firm Petroecuador said in a statement
that it has awarded two 360,000-barrel crude supply shipments to
Swiss resource group Glencore International.
Business News Americas relates that the two supply shipments
were initially included in a five-lot tender. However,
Petroecuador decided to award three lots to Swiss oil trader
Taurus and British oil trader Mocoh Energy, hoping to receive
better offers in a new tender.
The report says that Taurus and Mocoh offered US$13.19 and
US$13.64 differentials respectively for their lots.
According to BNamericas, Petroecuador then launched another
tender for the remaining two deliveries, which Glencore won with
a US$12.56 differential.
The crude shipments will leave from Balao port in Esmeraldas in
May, 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
0refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Prepares for Possible Impact of Open Skies Deal
----------------------------------------------------------------
British Airways Plc has come up with ways to attract more
travelers as it anticipates intense competition upon the
approval of the opens skies deal between the UK and the U.S.,
Daniel Michaels write for The Wall Street Journal.
According to BA Chief Executive Willie Walsh, the airline is
prepared and will not be damaged.
"When open skies happens, we know what we are going to do," Mr.
Walsh said.
BA intends to introduce new perks targeting business travelers.
The airline will have to promote "Club World," its business-
class on long-haul flights, more aggressively should the open-
skies pact pursues, WSJ relates.
According to WSJ, BA also plans to offer better facilities and
services on all its long-range planes including cushier, roomier
seats, bigger tables, wider video screens and a self-serve
pantry.
The carrier may consider shifting Atlanta, Dallas and Houston
flights from London's secondary Gatwick Airport to Heathrow,
where travelers can take advantage of more connecting flights,
easier access to London, and better shopping, WSJ says.
BA also seeks to get more takeoff and landing slots at Heathrow
in an effort to retain its position as the airport's dominant
carrier.
As previously reported in the TCR-Europe, BA is opposing the
open skies treaty as it may lose its protected flight status at
Heathrow airport and face intense competition, according to
published reports.
Under the deal, airlines will be allowed to make transatlantic
flights from any nation that could lead to reduced fares, AJC
Consultants relates.
The airlines will also be permitted to land and take-off from
Heathrow.
At meeting of European transport ministers last week, the
airline urged the British government to reject the deal, The
Financial Times reports.
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
=============
* JAMAICA: Coffee Industry Still Without Insurance Coverage
-----------------------------------------------------------
Coffee farmers were concerned on the industry's not having
insurance coverage, after Dyoll Insurance Co.'s insurance scheme
failed, Radio Jamaica reports.
The Jamaica Agricultural Society told Radio Jamaica that it is
worried that the sector will again be caught without insurance
when the next Hurricane season begins in June.
The society's president, Norman Grant, is urging officials to
immediately start the process of buying insurance for the
sector, Radio Jamaica states.
* * *
As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
===========
M E X I C O
===========
DELTA AIR: Court Approves Extension of Lease-Decision Period
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York,
further extended the period within which Delta Air Lines, Inc.,
and its debtor-affiliates assume or reject more than 400
unexpired leases of non-residential real property and related
agreements, to the date the Court confirms a plan of
reorganization, without prejudice to their right to seek a
further extension.
As reported in the Troubled Company Reporter on March 8, 2007,
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, in New
York, told the Court that the Official Committee of Unsecured
Creditors supports the Debtors' request.
The Debtors' request falls well within the parameters of Section
365(d)(4) deadline extensions granted by courts in other chapter
11 cases of comparable size and complexity, Mr. Huebner said.
Since filing for bankruptcy, the Debtors have rejected or sought
authority to reject several dozen Leases, and have negotiated
modifications of other Leases, Mr. Huebner related.
The Debtors will continue to analyze their need for premises
covered by the Leases. The completion of the analysis, however,
requires a further extension of the Section 365(d)(4) Deadline
because a substantial number of the Leases can be properly
evaluated only in the context of the Debtors' exit strategy,
Mr. Huebner avers.
The Debtors' Joint Plan of Reorganization preserves the valuable
and necessary flexibility regarding their Lease decisions by
contemplating that the lists of most unexpired leases to be
assumed or rejected may be amended until the day before the
confirmation hearing, presently scheduled for April 25, 2007.
Mr. Huebner asserted that sufficient cause exists in the instant
case to extend the Section 365(d)(4) Deadline:
(a) the Debtors' Chapter 11 cases are complex and involves a
large number of Leases;
(b) many of the Leases are among the Debtors' most important
assets and are vital to their operations. Thus, it is
imperative to their ability to successfully reorganize
that they and their professionals have sufficient time to
carefully identify and evaluate each of the Leases in the
time remaining before confirmation; and
(c) it is critical that the Debtors retain financial,
operational, network and fleet planning flexibility that
comes from not yet having to decide whether to assume or
reject certain Leases, and the future decisions in those
areas are expected to affect whether to assume or reject
the Leases.
About Delta Air
Headquartered in Atlanta, Ga., Delta Air Lines (OTC:DALRQ)
-- http://www.delta.com/-- is the world's second-largest
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners. The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors. As of June 30, 2005, the
Company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities. (Delta Air Lines Bankruptcy
News, Issue No. 66; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000) (Delta Air
Lines Bankruptcy News, Issue No. 66; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
Plan Update
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the adequacy
of the Debtors' disclosure statement. The hearing to consider
confirmation the Debtors' plan is scheduled on April 25, 2007.
DELTA AIR: Exclusive Solicitation Period Extended to June 1
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
further extended Delta Air Lines, Inc., and its debtor-
affiliates' exclusive period during to solicit acceptances of
their reorganization plan to June 1, 2007.
As reported in the Troubled Company Reporter on March 8, 2007,
wanted sufficient time to solicit acceptances of their Joint
Plan of Reorganization through the Court-approved solicitation
process, and thereafter, confirmation of the Plan.
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, in New
York, related that since the most recent extension of the
Debtors' Exclusive Solicitation Period, the Debtors have made
and continue to make substantial progress in their Chapter 11
cases, including the Court's approval of the disclosure
statement to their Plan and the distribution of solicitation
packages to creditors.
The Official Committee of Unsecured Creditors supported the
Debtors' request for an extension.
Mr. Huebner contended that ample cause exists to extend the
Debtors' Exclusive Solicitation Period:
(a) the Debtors' Chapter 11 cases are large and complex;
(b) the Debtors need more time to solicit acceptances of a
consensual plan of reorganization;
(c) the Debtors have made good faith progress toward
reorganization;
(d) the Debtors have been paying their postpetition debts
when due;
(e) the Debtors have demonstrated reasonable prospects for
filing a viable plan of reorganization and have made
progress in negotiating with their creditors;
(g) the Debtors' Chapter 11 cases have been pending for a
relatively short period compared to other large
reorganization cases;
(h) the Debtors' motive in requesting the extension is not to
pressure the creditors;
(i) an extension of the Debtors' exclusive period will enable
the Debtors to resolve certain contingencies that will
affect a plan of reorganization; and
(j) the requested extension is consistent with those granted
in other large chapter 11 cases.
About Delta Air
Headquartered in Atlanta, Ga., Delta Air Lines (OTC:DALRQ)
-- http://www.delta.com/-- is the world's second-largest
airline in terms of passengers carried and the leading U.S.
carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners. The
Company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors. As of June 30, 2005, the
Company's balance sheet showed US$21.5 billion in assets and
US$28.5 billion in liabilities. (Delta Air Lines Bankruptcy
News, Issue No. 66; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000) (Delta Air
Lines Bankruptcy News, Issue No. 66; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
Plan Update
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007.
On Jan 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the adequacy
of the Debtors' disclosure statement. The hearing to consider
confirmation the Debtors' plan is scheduled on April 25, 2007.
GENERAL MOTORS: Annual Stockholders' Meeting Scheduled on June 5
----------------------------------------------------------------
General Motors Corporation will hold its annual meeting of
stockholders at 9:00 a.m., on June 5, 2007, at the Hotel du
Pont, 11th and Market Streets in Wilmington, Delaware.
At the meeting, stockholders will be asked to vote on:
* The election of directors for the next year;
* The ratification of the selection of independent public
accountants for the next year;
* The approval of the 2007 Annual Incentive Plan;
* The approval of the 2007 Long-Term Incentive Plan; and
* Ten stockholder proposals, if they are properly presented
at the meeting.
Holders of GM Common Stock at the close of business on
April 9, 2007, will be entitled to vote at the meeting.
A full-text copy of the definitive proxy statement for the
annual meeting is available for free at:
http://ResearchArchives.com/t/s?1c1f
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.
* * *
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.
GENERAL MOTORS: Awards Stock Grants to Executives
-------------------------------------------------
General Motors Corporation is giving bonuses in the form of
stock to Chairman and Chief Executive Rick Wagoner and other top
executives, the Wall Street Journal reports.
Filings with the U.S. Securities and Exchange Commission show
that Mr. Wagoner received restricted stock valued at US$2.8
million and 500,000 options. A total of 18 executives also
disclosed equity grants in separate filings, the WSJ relates.
The move, according to WSJ, could cause difficulties in the
company's efforts to get additional concessions from its biggest
U.S. labor union.
Citing company spokeswoman Renee Rashid-Merem, WSJ relates that
GM's GM's board makes a decision annually on granting stock-
based compensation. Executive compensation had undergone
scrutiny in recent years due to the company's sinking financial
position.
WSJ further relates that these executives also receive stock
grants:
* Vice Chairman Bob Lutz with 60,000 restricted stock units
valued at US$1.8 million and 250,000 options,
* Chief Financial Officer Frederick Henderson with 60,000
restricted stock units valued at US$1.8 million and
250,000 options;
* North American Chief Troy Clarke with 45,000 restricted
stock units valued at US$1.32 million and 50,000 options;
and
* Europe Chief Carl-Peter Forster with 40,000 restricted
stock units valued at US$1.17 million and 40,000 options.
The value of the restricted stock units was calculated based on
the closing price of US$29.35 as of March 20, 2007. Restricted
stock units vest in equal installments every year over five
years, while their option awards vest annually in three equal
installments over three years while the options have an exercise
price of US$29.11 each, and expire in 2017, WSJ reports.
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.
* * *
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.
GRUPO MEXICO: Planning Infrastructure Acquisitions for Unit
-----------------------------------------------------------
Grupo Mexico SA de C.V. is planning infrastructure acquisitions
and growth in its railroad unit, Reuters reports.
Reuters underscores that entrepreneurs often complain that
Mexico's railroads are expensive and inefficient. Grupo Mexico
owns a big part of the Mexican railroad network. Its Ferromex
and Ferrosur operators make up over 50% of the Mexican railroad
market.
Eduardo Gonzalez, financial officer of Grupo Mexico unit
Southern Copper, told Reuters that Mexico needs more roads,
ports and warehouses to help the transport sector take off.
"Once you have your hands around all these aspects that are not
well developed at this stage, then the potential to grow the
railroad division is huge," Mr. Gonzalez commented to Reuters.
Mr. Gonzalez explained to Reuters that railroads have about 18%
market share in Mexico's freight industry, compared to more than
40% in Canada and the United States. Grupo Mexico will make
investments to boost transport infrastructure this year.
Reuters relates that Grupo Mexico will help Mexico become a
transport hub between Asia and the US.
Grupo Mexico's railroad business increased by about 10% in 2006,
compared to 2005, contributing about US$300 million in earnings
before interest, tax, depreciation and amortization, to the
company, Reuters states, citing Mr. Gonzalez.
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'. Fitch said the rating outlook is stable.
INTERTAPE POLYMER: Moody's Cuts Subsidiary's Corp. Rating to B3
---------------------------------------------------------------
Moody's Investors Service downgraded the long-term and corporate
family ratings of IPG (US) Inc. as well as the senior
subordinated notes of Intertape Polymer US Inc., parent company
of IPG.
Downgrades:
Issuer: IPG (US) Inc.
-- Corporate Family Rating, Downgraded to B3 from B2
-- Senior Secured Bank Credit Facility, Downgraded to B1
from Ba3
Issuer: Intertape Polymer US Inc.
-- Senior Subordinated Regular Bond/Debenture, Downgraded
to Caa2 from Caa1
Outlook Actions:
Issuer: IPG (US) Inc.
-- Outlook, Changed To Negative From Rating Under Review
Issuer: Intertape Polymer US Inc.
-- Outlook, Changed To Negative From Rating Under Review
The rating action reflects the company's weak financial
performance in 2006 and concern over its ability to meaningfully
improve credit metrics over the intermediate term. The negative
outlook reflects the limited room under financial covenants in
its secured facilities and the lack of definitive information
with respect to the CEO succession plan or the outcome of the
Board's review process concerning various strategic and
financial alternatives. Moody's believes that on going cost
reductions should partially offset any potential volume losses
in 2007, but the company's liquidity position will not likely
improve. As a result, IPG's speculative grade liquidity rating
was affirmed at SGL-4.
Significant volume declines in recent periods have negatively
affected IPG's gross margins. The North American housing
construction slowdown, customer rationalization, and declining
prices for both tapes and films products have reduced margins.
In order to mitigate the margin compression, IPG previously
announced manufacturing facility closures and other
restructuring actions to generate annual savings of
approximately US$28 million. Approximately US$4 million of
these savings have already been realized in the third and fourth
quarter of 2006 as the company continues to re-align its cost
structure with product demands. Even with this progress,
however, Moody's believes that in an event of an economic
slowdown competitive pressures could significantly reduce the
company's free cash flow position.
In addition to operating performance, Moody's clarified the
company's liquidity position, which weakened in 2006 because of
the need to renegotiate financial covenants. In November 2006,
IPG amended its credit facilities to exclude recent
restructuring charges and goodwill impairment charges from its
covenant calculations. In addition, the amendment loosened
future interest coverage, leverage, and fixed charge covenants
for up to two years. Over the next 12 months, Moody's
anticipates that covenants and revolver availability will remain
tight, resulting in possible restrictions. IPG was able to
improve liquidity by approximately US$44 million in 2006 (while
funding capital expenditures of approximately US$27 million and
restructuring costs of approximately US$20 million) by reducing
the amount of working capital employed in the business; however
Moody's does not anticipate meaningfully working capital
reduction to continue. As a result, Moody's believes that the
company may utilize its bank revolver to help support
operational needs. Based on the aforementioned, IPG's
speculative grade liquidity rating was affirmed at SGL-4.
Moody's believes a further deterioration in operating
performance (operating margins of less than 3%) or credit
metrics (negative free cash flow) due to additional declines in
product demand, or other operational issues, an increase in
leverage to improve shareholder value, or the inability to
remain in compliance with the financial covenants under its
secured facilities could result in a further downgrade of the
ratings. Based on the company's recent operating trends,
management will need to continue executing cost savings
initiatives to improve profitability over the near term.
The most recent prior rating action for IPG occurred on
October 6, 2006. Moody's downgraded the company's long-term
debt and corporate family ratings and placed these ratings under
review for possible further downgrade as a result of the
company's announcement that highlighted:
1) the Board's evaluation of various strategic and
financial alternatives available to enhance shareholder
value;
2) the significant decrease in third quarter revenues; and
3) the potential need to renegotiate covenants.
Moody's lowered IPG's speculative grade liquidity rating to SGL-
4 from SGL-3 due to concerns over the company's compliance with
the covenants under its bank credit facility.
Intertape Polymer Group (TSX: ITP) (NYSE: ITP)
-- http://www.intertapepolymer.com/--, parent company of IPG
and Intertape Polymer US Inc., develops and manufactures
specialized polyolefin plastic and paper based packaging
products and complementary packaging systems for industrial and
retail use. Headquartered in Montreal, Quebec and
Sarasota/Bradenton, Florida, the company employs approximately
2450 employees with operations in 18 locations, including 13
manufacturing facilities in North America, one in Europe and in
Mexico.
KENDLE INT'L: Posts US$4.7 Mln Net Loss in Quarter Ended Dec. 31
----------------------------------------------------------------
Kendle International Inc. reported a net loss of US$4.7 million
on total revenues of US$118.1 million for the fourth quarter
ended Dec. 31, 2006, compared with net income of US$3.7 million
on total revenues of US$66.5 million for the same period in
2005.
Net service revenues for the fourth quarter of 2006 were
US$86.4 million, an increase of 64 percent over net service
revenues of US$52.8 million for the fourth quarter of 2005.
Reimbursable out-of-pocket revenues and expenses were US$31.7
million for the fourth quarter of 2006 compared to US$13.7
million in the same quarter a year ago.
Loss from operations for the fourth quarter of 2006 was
approximately US$1.8 million. Excluding an US$8.2 million
impairment charge on a customer relationship asset as well as
charges for stock-based compensation expense, amortization of
acquired intangibles, state tax valuation allowances and
severance and other one-time expenses related to the August
acquisition of the Phase II-IV clinical services business of
Charles River Laboratories International Inc., proforma income
from operations was approximately US$9.5 million, or 10.9
percent of net service revenues, compared to income from
operations of approximately US$5.2 million in the fourth quarter
of 2005. Excluding the accounts receivable allowance, proforma
income from operations in the fourth quarter of 2005 was
approximately US$6.9 million, or 13 percent of net service
revenues.
"Kendle ended 2006 with record strong backlog, positioning the
company for continued growth," said Candace Kendle, PharmD,
chairman and chief executive officer. "Our focus in 2007 will
be to build on this momentum to deliver improved value to our
customers and shareholders through sustained growth in earnings,
revenue and operating margin. We are projecting net service
revenues of US$400 to US$420 million, Earnings Per Share on a
GAAP basis of US$1.57 to US$1.77 and proforma Earnings Per
Share, before amortization of acquired intangibles, of US$1.75
to US$1.95 for 2007, representing growth in excess of 40 percent
over 2006."
Interest expense in the fourth quarter was approximately
US$4.4 million primarily related to debt incurred to finance the
Charles River Clinical Services acquisition, compared to
interest expense of US$80,000 in fourth quarter 2005.
Cash flow from operations for the quarter was a positive
US$462,000. Cash and marketable securities totaled US$22.3
million, including US$2.4 million of restricted cash. Days
sales outstanding in accounts receivable were 46 and capital
expenditures for the fourth quarter of 2006 totaled US$2.7
million.
Kendle International Inc. reported net income of US$8.5 million
on total revenues of US$373.9 million for the year ended
Dec. 31, 2006, compared with net income of US$10.7 million on
total revenues of US$250.6 million for the year ended
Dec. 31, 2005.
Net service revenues for the year ended Dec. 31, 2006, were
US$283.5 million versus net service revenues of US$202 million
for the year ended Dec. 31, 2005.
Income from operations for the year ended Dec. 31, 2006, was
approximately US$20 million, or 7.1% of net service revenues,
compared to income from operations of approximately US$17.2
million, or 8.5 percent of net services revenues, in 2005.
Excluding the items discussed above, proforma income from
operations for 2006 was US$340 million or 12 percent of net
service revenues. Excluding the accounts receivable allowance
in 2005, proforma income from operations for 2005 was US$18.9
million, or 9.4% of net service revenues.
Cash flow from operations for the year 2006 was US$17.6 million.
Capital expenditures for the year totaled US$8.8 million.
At Dec. 31, 2006, the company's balance sheet showed
US$455.1 million in total assets, US$315 million in total
liabilities, and US$140.1 million in total stockholders' equity.
Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1c10
About Kendle
Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL) --
http://www.kendle.com/-- is among the world's leading global
clinical research organizations and is the fourth-largest
provider of Phase II-IV clinical development services worldwide.
The company operates in North America, Europe, Asia Pacific,
Latin America, and Africa. Kendle's 3,000 associates worldwide
have conducted clinical trials and provided regulatory and
pharmacovigilance services in more than 80 countries including
Mexico.
* * *
As reported in the Troubled Company Reporter on Nov. 7, 2006,
Moody's Investors Service revised Kendle International Inc.'s
Corporate Family Rating to B2 from B1.
METROFINANCIERA SA: S&P Says BB- Rating Unaffected by New Status
----------------------------------------------------------------
Standard & Poor's Ratings Services reported that the long-term
counterparty credit rating on Metrofinanciera S.A. de C.V.
Sociedad de Objeto Limitado (Metrofinanciera; BB-/Stable/--)
will not be affected by the change to its legal status, which is
now Sociedad Financiera de Objeto Multiple E.N.R. or Sofom.
Debt issuances to domestic and international markets will remain
unchanged. The outlook for all ratings is stable.
Standard & Poor's believes the change to Sofom will result in
possibly reducing dependence on existing Sofoles to a single
economic sector. However, Standard & Poor's doesn't think this
is a viable option for the short term. Standard & Poor's
expects the firm to maintain adequate risk management
capabilities to operate within the Mexican housing industry.
The privately held Metrofinanciera is Mexico's fourth largest
specialized housing lending company, with a portfolio of MXN13.3
billion (USUS$1.25billion) under administration at the end of
2005. Founded in 1996 by local businessmen, the Monterrey-based
lender has developed a network of six regional offices and 50
branches that operates nationwide.
METROLOGIC INSTRUMENTS: Appoints Darius Adamczyk as New CEO
-----------------------------------------------------------
Metrologic Instruments Inc.'s board of directors has named
Darius Adamczyk to succeed company founder C. Harry Knowles as
chief executive officer. The former Ingersoll Rand executive
assumes his new role immediately.
"In Darius, we have chosen someone who has the vision to
continue our growth and the sensibilities necessary to maintain
strong relationships with the employees, business partners and
customers who have made Metrologic an industry leader," said Mr.
Knowles, who has been serving as the company's interim CEO since
July 2006. "During his career, Darius has demonstrated an
exceptional talent for getting new products into the market
sooner by streamlining their development cycle, and we are
excited about the impact he is going to have at Metrologic."
Mr. Adamczyk will also be elected to Metrologic's board of
directors where he will join Mr. Knowles, who stepped down as
chairman in January after the company was purchased by an
investor group led by Francisco Partners, which is located in
Menlo Park, CA. Metrologic's board of directors also includes
principals of Francisco Partners and Elliott Associates, an
investment firm who partnered with Francisco to acquire the
company.
"I'm looking forward to continuing Metrologic's tradition of
dynamic growth," said Mr. Adamczyk. "Because of its commitment
to innovative technology, this company has a bright future."
Mr. Adamczyk arrives at Metrologic after a successful tenure at
Ingersoll Rand, a leading diversified industrial company
providing products and services to a broad range of industries.
After joining Ingersoll Rand in 1999, Mr. Adamczyk rose quickly
through its executive ranks before being named president of the
company's Air Solutions Group in 2005.
From 1995-1999, Mr. Adamczyk served as a senior associate at
Booz Allen Hamilton, a global strategy and technology consulting
firm. There he helped various Fortune 500 companies develop and
implement strategies for growth, marketing and operational
excellence. Mr. Adamczyk began his professional career as an
electrical engineer at General Electric in 1988.
Mr. Adamczyk's educational background includes a MBA from
Harvard University, a master's degree in computer engineering
from Syracuse University and a bachelor's degree in electrical
and computer engineering from Michigan State University.
"We believe Darius is going to have an immediate impact on the
company," said David ibnAle, a partner at Francisco Partners and
a director of Metrologic. "He has already proven himself to be
a very capable leader and executive, and we are very pleased to
have him on board."
Metrologic recruited Mr. Adamczyk through the efforts of Korn
Ferry International, a leading executive recruitment firm, which
conducted a national search to fill the CEO role.
Headquartered in Blackwood, New Jersey, Metrologic Instruments,
Inc. is a global supplier for data capture and collection
hardware, and image processing software. The company had LTM
September 2006 revenues of approximately US$210 million. The
company has operations in Brazil and Mexico.
* * *
As reported in the Troubled Company Reporter on Dec. 5, 2006,
Moody's Investors Service has assigned a B2 corporate family
rating to Metrologic Instruments, Inc. At the same time,
Moody's assigned a B1 rating to the proposed 1st lien senior
secured credit facility (US$125 million term loan and US$35
million undrawn revolver) and a Caa1 rating to the proposed
US$75 million 2nd lien senior secured credit facility. The
ratings for the two senior secured facilities reflect both the
overall probability of default of the company, to which Moody's
assigns a PDR of B2, and a loss given default of LGD 3 for the
first lien and LGD 5 for the second lien. Moody's said the
rating outlook is stable.
VISTEON CORP: Moody's Affirms B3 Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service affirmed Visteon Corp.'s B3 Corporate
Family Rating, Ba3 term loan rating and SGL-3 Speculative Grade
Liquidity rating, but changed the ratings outlook to negative
from stable. At the same time, the rating agency left the
Speculative Grade Liquidity rating unchanged at SGL-3.
The actions flow from Visteon's increase in the size of its term
loan facility by up to US$500 million. Proceeds from the
incremental loan may be used in part to lower utilization of its
European securitization and factoring facilities, with the
balance used to increase its cash and marketable security
position as well as retained as balance sheet cash. While the
resultant improved liquidity will serve to limit the probability
of default in the near term, the additional funding elevates the
company's leverage and fixed charges at a time when the North
American automotive industry faces significant challenges and
follows guidance from the company that it will not achieve
positive free cash flow until 2009. Coverage ratios will remain
weak for a more protracted period until cumulative savings from
its restructuring initiatives contribute to improved earnings
and cash flows. Although Visteon will have sufficient resources
to accomplish this transformation, and favorable trends in
customer and geographic diversification will continue, it
remains vulnerable to adverse developments at its largest
customer, Ford Motor Co.
The new US$500 million tranche of the term loan will take the
total facility to US$1,500 million. The new tranche will have a
final maturity in December 2013, compared to the existing
US$1,000 million, which matures in June 2013. The term loans
are guaranteed by material domestic subsidiaries and have a
first lien against Visteon's shareholdings in certain
subsidiaries (limited to 65% in the case of foreign
subsidiaries) and against intercompany debt primarily owed by
foreign subsidiaries. In addition, collateral includes a second
lien against certain US accounts receivable, inventory and
property, plant & equipment, which are subject to a first lien
held by revolving credit facility lenders. A restructuring of
Visteon's legal organizational structure will facilitate the
pledge of incremental international subsidiary shareholdings.
Significantly, the collateral pool will be supplemented by the
addition of the bulk of Visteon's shareholding in Halla Climate
Control of South Korea. Visteon owns 70% of Halla; shares
pledged will represent a 65% interest in the company. Initially,
the proceeds will be retained as cash but could accommodate
reduced utilization of Visteon's European securitization
facility (US$76 million at Dec. 31, 2006) and the expiration of
its European factoring facilities (US$81 million sold at the end
of the year). Net funds retained from the financing will add to
the roughly US$1 billion of cash held by Visteon at the end of
the fourth quarter.
The additional cash, combined with existing internal and
external resources, are expected to cover Visteon's cash flow
deficits over the next two years, thereby minimizing a need for
future external funding. The company's principal bank
facilities do not have financial maintenance covenants until
certain minimal defined liquidity thresholds are pierced.
Visteon should have ample resources to preserve its liquidity
above those defined levels. As such, the transaction serves to
reduce the probability of default. However, the financing will
raise Visteon's debt/EBITDA leverage, which approximated 6.1
times at the end of 2006, and will add to interest expense.
EBIT/interest coverage was roughly 0.5 times in 2006 and is
expected to remain at or under 1 time over the intermediate
term. Moody's would expect Visteon's quantitative metrics to
remain weak until 2009 and are positioned in the lower range for
the rating category.
The B3 Corporate Family rating emphasizes recognizes these
weaker metrics and the lengthier time frame required for the
company's restructuring program to produce material improvements
in free cash flow generation and coverage ratios. In part, the
company's financial and operating challenge result from
meaningful reductions in market share and build-rates by its
largest customer, Ford, as well as prevailing industry
conditions affecting most auto makers and suppliers. While
Visteon continues with an improved customer mix and book of new
business awards, as well as a sound strategy and sufficient
resources to facilitate its transformation, its debt/EBITDA will
remain elevated and interest coverage will be less than 1 time
for a protracted period. Positive free cash flow is not
expected until 2009.
Visteon's overall performance for rating factors contained in
Moody's Auto Supplier Methodology map to an indicated rating of
B1. This mapping reflects the company's very weak credit
metrics, which are more consistent with the Caa rating level,
balanced against substantial scale, global footprint, improving
customer and geographic diversification and stability provided
by its liquidity and debt maturity profile, which are reflective
of a Ba level. Notwithstanding Visteon's mapping to the B1
rating level under the Auto Methodology, the assigned B3
Corporate Family rating recognizes the considerable operational
and financial risk that the company faces as a result of the
ongoing challenges confronting Ford, and protracted time frame
of the company's turn around program. Over time, ongoing
restructuring actions should better position its fixed and
variable cost structure to achieve higher margins. But, current
industry conditions are not very accommodative and make this
more challenging to achieve in the near term.
The negative outlook incorporates current views on the company's
prospective leverage, coverage ratios and lack of free cash flow
generation. It also considers ongoing exposure to a challenging
automotive environment in North America and the potential, which
any adverse industry developments may have to cause further
deterioration in the company's metrics. However, additional
funds from the US$500 million term loan do enhance Visteon's
liquidity and serve to limit near term default risks. Resources
in the Ford funded escrow account continue to be available to
finance ongoing restructuring actions, which, over a longer
period of time, could permit stronger results to emerge.
Visteon's Speculative Grade Liquidity Rating is SGL-3 and
represents adequate liquidity over the next 12 months. This is
based upon significant cash balances, availability under its
external financing commitments, an extended debt maturity
profile, and minimal constraints from financial covenants under
its bank credit facilities. Although balance sheet cash will
increase as a result of the financing, the increase is
substantially offset by expectations of negative free cash flow
in both 2007 and 2008. The rating also reflects a limited scope
to develop incremental alternative liquidity arrangements given
the extent of assets pledged.
The Ba3(LGD-2 , 17%) rating on the secured term loan, three
notches above the Corporate Family Rating, reflects the benefits
of its collateral package as well as the effective subordination
of approximately US$1.0 billion of unsecured notes which are at
the parent level and lack up-streamed guarantees from domestic
subsidiaries. The junior position in the capital structure
results in a Caa2 (LGD-6, 92%) rating for the notes.
Ratings affirmed;
Visteon Corp.
-- Corporate Family Rating, B3
-- Probability of default, B3
-- Secured bank term loan (increased to US$1.5 billion
from US$1.0 billion), Ba3
-- Unsecured notes, Caa2
-- Shelf filings for unsecured, subordinated, and
preferred, (P)Caa2, (P)Caa2, and (P)Caa2 respectively
-- Speculative Grade Liquidity rating, SGL-3
Visteon Capital Trust I
-- Shelf filing trust preferred, (P)Caa2
Rating changed:
Visteon Corp.
-- Outlook, to negative from stable
LGD Assessments revised:
Visteon Corp.
-- Secured bank term-loan, LGD-2, 17% from LGD-2, 24%
-- Unsecured notes, LGD-6, 92% from LGD-6, 91%
-- Shelf filing unsecured, LGD-6, 92% from LGD-6, 91%
-- Shelf filings, subordinated and preferred, LGD-6, 97%
from LGD-6, 96%
Visteon Capital Trust I
-- Shelf filing trust preferred, LGD-6, 97%
from LGD-6, 96%
The last rating action was on Nov. 22, 2006, at which time the
Corporate Family Rating was lowered to B3 from B2 and the
outlook was changed to stable. Visteon's US$350 million
revolving credit facility is not rated.
Headquartered in Van Buren Township, Mich., Visteon Corp.
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers. With corporate offices in
the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the
company has more than 170 facilities in 24 countries, including
Mexico, and employs approximately 50,000 people.
===========
P A N A M A
===========
AES CORPORATION: Gets Waivers from Majority of Lenders
------------------------------------------------------
AES Corporation disclosed in a regulatory filing with the U.S.
Securities and Exchange Commission that on March 22, 2007, it
obtained the necessary votes from a majority of its lenders
under both the senior bank facility and the senior unsecured
credit facility, to waive the respective events of default
described above. Waivers have been executed with respect to
each credit facility.
Because the company has obtained these waivers, the company now
has access to the credit available under its senior bank
facility and senior unsecured credit facility.
Restatements and Default
As previously reported in the Troubled Company Reporter, the
company said that it was restating its previously reported
financial statements due to errors discovered by its management.
As a result, it has delayed the filing of its Form 10-K for the
year ending Dec. 31, 2006. The company further disclosed that
as a result of the restatement, it was in default under its
senior bank credit facility.
A full-text copy of Amendment No. 10 and Waiver No. 6 dated as
of March 22, 2007 to Third Amended and Restated Credit and
Reimbursement Agreement is available for free at:
http://ResearchArchives.com/t/s?1c2d
A full-text copy of Waiver No. 2 dated as of March 22, 2007 to
the Credit Agreement among The AES Corporation as Borrower, the
Banks listed therein, and Merrill Lynch Capital Corporation as
Administrative Agent, is available for free at:
http://ResearchArchives.com/t/s?1c2e
About AES Corporation
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.
AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela. Fuels include biomass, diesel, coal, gas and
hydro. The group also pursues business development activities
in the region. AES has been in the region since May 1993, when
it acquired the CTSN power plant in Argentina.
* * *
As reported on Oct. 20, 2006, Moody's Investors Service's
downgraded its B1 Corporate Family Rating for AES Corporation in
connection with the implementation of its new Probability-of-
Default and Loss-Given-Default rating methodology.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on the company's loans
and bond debt obligations including the B1 rating on its senior
unsecured notes 7.75% due 2014, which was also given an LGD4
loss-given default rating, suggesting noteholders will
experience a 55% loss in the event of a default.
BANCO LATINOAMERICANO: Wants Share in Panama Canal Project
----------------------------------------------------------
Banco Latinoamericano de Exportaciones S.A. Chief Executive
Rivera said in a seminar that the bank is looking for direct and
indirect business opportunities from the US$5.25-billion Panama
Canal expansion project, Business News Americas reports.
Banco Latinoamericano will aim to tap cross-border leasing for
machinery imports and offer financial services to foreign and
local firms involved in the project, BNamericas relates, citing
Mr. Rivera.
The expansion involves constructing a third lane along the canal
through the creation of a new set of locks, which will bring in
more traffic and increase the waterway's capacity by 2014,
BNamericas states.
Headquartered in Panama City, Panama, Banco Latinoamericano de
Exportaciones, SA aka Bladex -- http://www.bladex.com-- is a
supranational bank originally established by the Central Banks
of Latin American and Caribbean countries to promote trade
finance in the Region. The bank's shareholders include central
banks and state- owned entities in 23 countries in the Region,
as well as Latin American and international commercial banks,
along with institutional and retail investors. Through
Dec. 31, 2005, Bladex had disbursed accumulated credits of over
US$135 billion.
* * *
As reported on April 7, 2006, Moody's affirmed these ratings for
Bladex:
-- Bank Financial Strength Rating: D-minus, change to
positive outlook from stable;
-- Long Term Foreign Currency Deposit Rating: Baa3, with
stable outlook;
-- Short Term Foreign Currency Deposit Rating: Prime-3;
-- Foreign Currency Senior Unsecured Rating: Baa3, with
stable outlook; and
-- Foreign Currency Issuer Rating: Baa3, with stable outlook.
=====================
P U E R T O R I C O
=====================
ALLIED WASTE: Moody's Assigns Ba3 Rating on Amended Credit Line
---------------------------------------------------------------
Moody's Investors Service assigned Ba3 (LGD 2, 29%) ratings on
the amended and restated senior secured credit facilities of
Allied Waste North America, Inc. or Allied Waste NA, which
Moody's expects to close later this week. The proceeds from the
refinancing will be used to repay existing facilities.
Concurrently, Moody's affirmed other ratings of Allied Waste
Industries, Inc., Allied Waste NA and its wholly owned
subsidiary, Browning-Ferris Industries, LLC. The outlook for
the ratings is positive.
Allied Waste's amended and restated senior secured credit
facilities consist of a US$1.575 billion revolver due January
2012, a US$1.105 billion Term Loan due January 2014, and a
US$490 million institutional letter of credit facility due
January 2014. Maturity dates could accelerate if certain debt
tranches with earlier maturities are not refinanced prior to
certain dates. The facilities are rated one notch higher than
the B1 Corporate Family Rating, reflecting the benefits of the
guarantee and security package and Moody's expectation of loss-
given-default greater or equal to 10% and less than 30% (LGD 2).
The borrower under the facilities is Allied Waste NA. The
facilities are secured by the stock of substantially all
subsidiaries and a security interest in substantially all
assets. A portion of the collateral is shared with the holders
of the company's senior secured notes and debentures. The
proposed amended term loan has an excess cash flow repayment
requirement of 50%, with step-downs depending on leverage. The
company uses its letter of credit facilities primarily to
provide financial assurance purposes under contractual
arrangements. In addition, as of Dec. 31, 2006, about US$399
million in letters of credit was drawn on the revolver.
The ratings benefit from a stable underlying business with
limited available substitutes and the relative lack of
cyclicality in the municipal solid waste industry, the company's
prominent market position and the company's size and diversified
revenue stream as well as ownership of scarce assets. The
ratings continue to be constrained by the company's high
leverage and weak free cash flow generation. Although the
company has made progress with its best practices program over
the last year and a half, ongoing implementation costs,
fluctuations in fuel costs and cyclical weakness in construction
activity may put pressure on operating margins. Although
Moody's expects ongoing improvements in free cash flow, such
improvements are likely to continue to be constrained by
interest payments and high ongoing capital expenditure levels.
The positive ratings outlook recognizes the continuing pricing
strength and focus on return on capital in the industry, the
reduction in near-term maturities resulting from recent
refinancings, as well as the positive free cash flow generation.
The positive outlook also takes into account the company's
strong liquidity position in 2007 and ongoing efforts to reduce
financial leverage through debt repayment. Indications of
pricing weakness in the industry, substantial volume declines
(for example, as a result of a slowdown in construction
activity), which lead to negative free cash flows, debt-financed
acquisitions or additional indebtedness, for example in
connection with potential developments with respect to the
outstanding dispute with the Internal Revenue Service could lead
to stabilization of the outlook or place downward pressure on
the ratings.
Moody's took these rating actions:
Allied Waste North America, Inc:
-- Assigned a Ba3 (LGD2, 29%) rating to the US$1.575
billion guaranteed senior secured revolving credit
facility due 2012;
-- Assigned a Ba3 (LGD2, 29%) rating to the US$1.105
billion guaranteed senior secured term loan due 2014;
-- Assigned a Ba3 (LGD2, 29%) rating to US$490 million
guaranteed senior secured Tranche A Letter of Credit
Facility due 2014;
-- Affirmed the Ba3 (LGD2, 30%) rated US$1.575 billion
guaranteed senior secured revolving credit facility
due 2010, subject to withdrawal upon completion of the
refinancing;
-- Affirmed the Ba3 (LGD2, 30%) rated US$1.105 billion
guaranteed senior secured term loan due 2012, subject
to withdrawal upon completion of the refinancing;
-- Affirmed the Ba3 (LGD2, 30%) rated US$490 million
guaranteed senior secured Tranche A Letter of Credit
Facility due 2012, subject to withdrawal upon
completion of the refinancing;
-- Affirmed the B1 (LGD4, 56%) rating on the US$750
million issue of 6.875% guaranteed senior secured notes
due 2017;
-- Affirmed the B2 (LGD4, 57%) rating on the US$750 million
issue of 8.5% guaranteed senior secured notes due 2008,
subject to withdrawal upon completion of the refinancing
currently under way;
-- Affirmed the B1 (LGD4, 56%) rating on the US$350 million
issue of 6.5% guaranteed senior secured notes due 2010;
-- Affirmed the B1 (LGD4, 56%) rating on the US$400 million
issue of 5.75% guaranteed senior secured notes due 2011;
-- Affirmed the B1 (LGD4, 56%) rating on the US$275 million
issue of 6.375% guaranteed senior secured notes due
2011;
-- Affirmed the B1 (LGD4, 56%) rating on the US$251 million
issue of 9.25% guaranteed senior secured notes due 2012;
-- Affirmed the B1 (LGD4, 56%) rating on the US$450 million
issue of 7.875% guaranteed senior secured notes due
2013;
-- Affirmed the B1 (LGD4, 56%) rating on the US$425 million
issue of 6.125% guaranteed senior secured notes due
2014;
-- Affirmed the B1 (LGD4, 56%) rating on the US$595 million
issue of 7.125% guaranteed senior secured notes due
2016;
-- Affirmed the B1 (LGD4, 56%) rating on the US$600 million
issue of 7.25% guaranteed senior secured notes due 2015;
and
-- Affirmed the B2 (LGD4, 69%) rating on the US$400 million
issue of 7.375% guaranteed senior unsecured notes due
2014;
Allied Waste Industries, Inc:
-- Affirmed the B1 Corporate Family Rating;
-- Affirmed the B1 Probability of Default Rating;
-- Affirmed the B3 (LGD 5, 87%) rating on the US$230
million issue of 4.25% guaranteed senior subordinated
convertible bonds due 2034;
-- Affirmed the B3 (LGD 6, 98%) rating on the US$600
million issue of 6.25% senior mandatory convertible
preferred stock -- conversion date of March 2008.
-- The Speculative Grade Liquidity Rating is SGL-1.
-- The outlook for the ratings remains positive.
Browning-Ferris Industries, LLC:
(assumed by Allied Waste North America, Inc.)
-- Affirmed the B1 (LGD4, 56%) rating on the US$155
million issue of 6.375% senior secured notes due 2008;
-- Affirmed the B1 (LGD4, 56%) rating on the US$96
million issue of 9.25% secured debentures due 2021;
-- Affirmed the B1 (LGD4, 56%) rating on the US$294
million issue of 7.4% secured debentures due 2035;
-- Affirmed the B2 (LGD4, 69%) rating on the US$281
million of industrial revenue bonds with various
maturities.
Allied Waste North America, Inc., a wholly owned operating
subsidiary of Allied Waste Industries, Inc., is based in
Phoenix, Arizona. Allied Waste is a vertically integrated, non-
hazardous solid waste management company providing collection,
transfer, and recycling and disposal services for residential,
commercial and industrial customers. As of Dec. 31, 2006, the
company operated a network of 304 collection companies, 161
transfer stations, 168 active landfills and 57 recycling
facilities in 37 states and Puerto Rico. The company had
revenues of approximately US$6.0 billion in fiscal 2006.
FRANCISCO RIVERA: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Francisco J. Baez Rivera
16 Calle Comercio
Ponce, PR 00731
Bankruptcy Case No.: 07-01440
Chapter 11 Petition Date: March 20, 2007
Court: District of Puerto Rico (Old San Juan)
Debtor's Counsel: Modesto Bigas Mendez, Esq.
Modesto Bigas Law Office
P.O. Box 7462
Ponce, PR 00732-7462
Tel: (787) 844-1444
Total Assets: US$100,000 to US$1 million
Total Debts: US$1 million to US100 million
Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Eurobank Bank Loan US$392,474
P.O. Box 195447
San Juan, PR
00919-5447
Gualberto Negron US$240,251
Martinez
C/o LCDO, Epifanio
Davila Rodriguez
P.O Box 915
Villalba, PR
00766-0915
Internal Revenue Service Trade Debt US$225,108
Mercantil Plaza Office 914
2 Ponce De Leon PDA 27 1/2
San Juan, PR 00918-1693
Dawn Food International Inc. US$50,000
Internal Revenue Service Trade Debt US$33,809
Banco Popular US$25,000
Departmento Del Trabajo US$24,739
Y Rec Hum
Deparmento De Hacienda Trade Debt US$22,845
Municipio Autonomo De Ponce Bank Loan US$21,323
Senior Distributor US$20,168
Cooperativa De A/C Agustin US$20,086
Burgos
Centro Recaudacion US$19,951
Helepan Inc US$19,431
RJ Reynolds Tobacco Co. US$13,649
Suiza Dairy US$12,108
Caribe Bakery Supplies US$10,480
Banco Popular US$10,000
R&G Premier Bank US$7,000
John P. Miller US$6,888
Miller Distributors US$6,888
REDONDO WASTE: Case Summary & Seven Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Redondo Waste Systems, Inc.
P.O. Box 6616
Caguas, PR 00726
Bankruptcy Case No.: 07-01512
Type of Business: The Debtor's successor-in-interest, Big Blue
Corporation, filed for chapter 11 protection
on Feb. 12, 2007 (Bankr. D. P.R. Case No.
07-00653).
Chapter 11 Petition Date: March 23, 2007
Court: District of Puerto Rico (Old San Juan)
Judge: Gerardo Carlo Altieri
Debtor's Counsel: Carlos Rodriguez Quesada
P.O. Box 9023115
San Juan, PR 00902-3115
Tel: (787) 724-2867
Fax: (787) 724-2463
Total Assets: US$990,000
Total Debts: US$1,009,009
Debtor's Seven Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Departamento de Hacienda US$245,903
Negociado de Contribuciones
P.O. Box 2501
San Juan, PR 00902-2501
CRIM
US$127,869
P.O. Box 195387
San Juan, PR 00919-5387
Departamento del Trabajo (PR) Estate Security US$45,775
P.O. Box 37688
San Juan, PR 00981
Ryder Vehicle Lease US$36,000
Arrears
Municipio de Caguas Municipa Patent US$33,189
Interspace Ind. Corp. Commercial Space US$18,473
Lease Arrears
Banco Popular de Puerto Rico Credit Line US$11,800
STANDARD MOTOR: Inks US$275MM Credit Facility with GE Capital
-------------------------------------------------------------
Standard Motor Products, Inc. entered into a new revolving
credit facility, replacing its existing credit facility, with GE
Capital Markets acting as Agent for a syndicate of lenders. The
new credit facility provides for a line of credit up to
US$275 million, with an additional US$50 million accordion
feature, and has a term of five years.
The US$275 million revolving credit facility will continue to be
secured primarily with the company's accounts receivable,
inventory and fixed assets similar to the existing advance rate
formulas.
"We are very pleased to secure this new financing arrangement
which capitalizes on current favorable market conditions. This
facility will offer immediate benefits and secure an integral
component of our capital structure for the next five years. In
addition, the US$50 million accordion feature allows for future
expansion needs," Mr. James J. Burke, Standard Motor Products'
chief financial officer, stated.
About Standard Motor
Headquartered in Long Island City, New York, Standard Motor
Products Inc. (NYSE: SMP) -- http://smpcorp.com/-- manufactures
and distributes replacement parts for motor vehicles in the
automotive aftermarket industry. The company supplies Engine
Management and Temperature Control parts for motor vehicles -
domestic and imported, new as well as older vehicles. Parts are
sold throughout the U.S., Canada, Central and South America,
Europe and Asia, by traditional warehouse distributors and auto
parts stores, as well as major retail stores.
Standard Motor Products Inc has more than 20 factories and
distribution centers throughout the U.S., Puerto Rico, Canada,
Europe and the Far East. Lawrence I. Sills, grandson of the
company's founder, is the current chairman of the board and
chief executive officer, and John Gethin is president and chief
operating officer.
* * *
As reported in the Troubled Company Reporter on Feb. 9, 2006,
Moody's Investors Service lowered the ratings for Standard Motor
Products, Inc. Corporate Family Rating to B3 from B1.
=============
U R U G U A Y
=============
BANKBOSTON (URUGUAY): Moody's Puts E+ Financial Strength Rating
---------------------------------------------------------------
Moody's Investors Service assigned BankBoston Uruguay S.A a bank
financial strength rating of E+ and placed a positive outlook on
the rating, in an indication of expected improvements in the
bank's earnings generation as the Uruguayan operating
environment gradually improves.
The rating action follows the recent acquisition of BankBoston
Uruguay by Brazil's Banco Itau Holding Financeira S.A.
BankBoston Uruguay became a subsidiary of Bank of America on
March 1, 2007 (it was formerly a branch), and it was sold to
Banco Itau on March, 23, 2007. As a branch, BankBoston Uruguay
was not previously assigned a bank financial strength rating by
Moody's.
In a related action, Moody's downgraded BankBoston's global
local currency deposit rating to Ba2, from Baa2, to reflect the
bank's status as a subsidiary of Banco Itau. The rating
incorporates the probability of support from its parent bank,
Banco Itau, which is derived from Brazil's Ba2 foreign currency
government bond rating.
Consequently, the national scale rating for local currency
deposits assigned to BankBoston Uruguay was lowered to Aa3.uy
from Aaa.uy.
Moody's affirmed BankBoston Uruguay's long- and short-term
global foreign currency deposit ratings of B2 and Not Prime.
The national scale rating for foreign currency deposits was also
affirmed at A3.uy. Moody's global and national scale foreign
currency deposit ratings reflect foreign currency
transferability and convertibility risks. Therefore, the
foreign currency ratings are much lower than the local currency
ratings.
These ratings were affected:
-- Bank Financial Strength Rating: E+, positive outlook
-- Long Term Global Local Currency Deposits: Ba2, stable
outlook
-- Short Term Local Currency Deposits: Not Prime (affirmed)
-- National Scale Rating for Local Currency Deposits: Aa3.uy
-- Long-term Foreign Currency Deposits: B2, stable outlook
(affirmed)
-- Short-term Foreign Currency Deposits: Not Prime
(affirmed)
-- National Scale Rating for Foreign Currency Deposits:
A3.uy (affirmed)
BankBoston is one of the 10 largest banks in Argentina in terms
of assets, deposits and loans and it ranks among the top five
private banks. It operates through 89 branches and has assets
of US$2.5 billion.
GERDAU SA: ANEEL Moves Hydroelectric Complex Concession to Unit
---------------------------------------------------------------
Gerdau S.A. informs that the National Electrical Power Agency
-- ANEEL -- has transferred a hydroelectric complex concession
on March 6, 2007, to its subsidiary Gerdau Acos Longos S.A. The
concession is to produce electricity at the hydroelectric
complex of Cacu and Barra dos Coqueiros, composed of two
hydroelectric plants to be built in the river Claro, between the
municipalities of Cacu and Cachoeira Alta, in the southeast of
the state of Goias.
The project will have an installed capacity of 155 MW (Cacu with
65 MW and Barra dos Coqueiros with 90 MW). The construction
should be completed by the beginning of 2010. The estimated
investment is of US$230 million.
Headquartered in Porto Alegre, Brazil, Gerdau SA --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.
* * *
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, Fla.-based Gerdau
Ameristeel Corp. on CreditWatch with positive implications.
=================
V E N E Z U E L A
=================
DAIMLERCHRYSLER: Delays Filing First Quarter Report to May 15
-------------------------------------------------------------
DaimlerChrysler AG will not publish its interim report on the
first quarter of 2007 on April 26, 2007, as was originally
planned, but on May 15, 2007. This change of date has been
caused solely by delays with the preparation of the financial
statements for the year 2006 and with the parallel work for the
International Financial Reporting Standards financial
statements, which have also had an impact on the timeframe for
the quarterly financial statements.
As previously announced by the company, in the 2007 financial
year, DaimlerChrysler will change over its accounting and
financial reporting from U.S. generally accepted accounting
principles to International Financial Reporting Standards.
For comparative reasons, this also necessitates the preparation
of retroactive IFRS financial statements for the year 2006.
The change of schedule was caused by delays with the preparation
of the financial statements for the year 2006 according to U.S.
GAAP and IFRS in the first two months of this year.
It was not possible to compensate for these delays in the
following weeks.
As a first step, DaimlerChrysler intends to publish its
consolidated financial statements for the year 2006 according to
IFRS on April 26, 2007.
The interim report on the first quarter of 2007 is to follow on
May 15, 2007.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX)
(FRA:DCX) -- 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: Magna Offers Up to US$4.7BB for 25% of Chrysler
----------------------------------------------------------------
Canadian auto-parts supplier Magna International Inc. and an
unnamed private equity partner have made an offer, between
US$4.6 billion and US$4.7 billion, to buy 25% of DaimlerChrysler
AG's Chrysler Group, KeyBanc Capital Markets analyst Brett
Hoselton told investors last week, quoting unknown sources,
various media sources report.
Mr. Hoselton said his sources "indicate DaimlerChrysler is very
interested in divesting itself of Chrysler." Mr. Hoselton added
that "While Magna views its offer as low and unlikely to
prevail, it also views it as an opportunity to purchase an
inexpensive stake in the automaker should other bidders
retreat."
"It is imperative that Magna has a full understanding of the
situation regarding the future of the Chrysler Group," the Wall
Street Journal reports citing Magna spokeswoman Tracy Fuerst in
an e-mailed statement.
"Therefore, we continue to review potential alternatives
regarding the future of the Chrysler Group," Ms. Fuerst added.
DaimlerChrysler is Magna's biggest customer, contributing about
26% of total sales.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- 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.
PETROLEOS DE VENEZUELA: Fitch Puts BB- Rating on US$5 Bil. Notes
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating on Petroleos de
Venezuela S.A.'s aka PDVSA proposed senior note issuance of up
to US$5 billion. The Rating Outlook is Stable. Proceeds from
issuance are expected to be used to fund capital expenditures
and for other general corporate purposes.
PDVSA's foreign and local currency Issuer Default Ratings are
constrained by Fitch's 'BB-' foreign currency rating of the
Bolivarian Republic of Venezuela and are strongly linked with
the sovereign's credit profile. The linkage is based on the
company's governance as a state-owned entity, the shareholder's
ultimate ability to influence PDVSA's financial flexibility, and
utilization of PDVSA's financial resources for quasi-sovereign
and fiscal, rather than productive capacity, uses. Currently,
the oil minister and the PDVSA president are one and the same,
further demonstrating the government's tight control over the
strategy and resources of PDVSA. Fitch remains concerned about
sovereign credit trends in Venezuela, underscored by recent
nationalizations and aggressive stance toward the private
sector, as well as by measures from lower oil prices, buoyant
government spending and a heterodox macro policy framework. The
additional debt incurred by PDVSA will raise gross public and
public external debt ratios; hence, Fitch will monitor the use
of proceeds and whether the proceeds are invested productively
or used to support current government spending.
The company's credit metrics are strong for the rating category,
characterized by low leverage and high interest expense
coverage; however, they are tempered by substantial redirection
of financial resources to government spending. Credit metrics
are expected to be strong at fiscal year end 2006, with interest
coverage, as measured by EBITDA to interest expense, of over
100x and financial leverage, as measured by total debt-to-
EBITDA, of 0.1x. Over the next few years these measures are
expected to remain quite strong despite a large capital spending
program, payouts for social programs and other transfers to the
government. At the end of fiscal 2006, the company transferred
approximately US$38.2 billion to the Venezuelan government in
the form of income tax payments, royalties, dividends and
contributions to social spending. A robust year in the 2006
crude market resulted in a 38% increase in total contributions
to the government from US$24.6 billion in 2005. Transfers from
PDVSA to the government, excluding social spending, accounted
for approximately 51% and 59% of the government revenue during
2005 and 2004, respectively.
According to PDVSA, total 2006 crude oil production, including
the company's equity production from all joint ventures and
partnerships, was approximately 2.9 million barrels per day or
barrels daily. In 2005 PDVSA reported crude oil production of
approximately 2.9 million barrels per day, still short of the
3.1 million barrels a day attained in 2001, demonstrating the
impact of the strike in 2002-2003. As of February 2007, a
production cut of 195,000 barrels per day became effective in
accordance with the OPEC decision to reduce production levels.
The Venezuelan Heavy Oil Strategic Associations, in which PDVSA
subsidiaries currently hold interests ranging between 30% and
49.9%, contribute about 0.5 million barrels per day to national
oil production. The Venezuelan government recently passed a
decree whereby PDVSA must hold upwards of 60% ownership in each
of the Heavy Oil projects. Details of the change in ownership
are still unknown. The national production mix has been
changing over the past 10 years and now PDVSA's own production
represents a smaller portion, but still significant component of
total output than it did a decade ago.
PDVSA capital expenditure program is large. The company
announced that it would increase national oil production to 5.8
million barrels per day and refining capacity to about 4.1
million barrels per day by 2012 as part of its US$77.4 billion
investment program, of which US$20 billion is expected to be
invested by third parties. These initiatives continue to be
central to the company's long-term strategy; however, near-term
appetite from potential sponsors and/or investors for Venezuelan
risk is uncertain in the current policy environment. In 2004
and 2005, the Venezuelan government modified both the royalty
rate and the income tax rate applicable to the Venezuelan Heavy
Oil Strategic Associations. More importantly, the Heavy Oil
Strategic Associations are now being converted to joint ventures
with PDVSA assuming 51% to 60% ownership by approximately May
2007, in accordance with the 1999 constitution of the Bolivarian
Republic of Venezuela.
PDVSA is in the process of certifying oil reserves located in
the Orinoco Belt amounting to approximately 236 billion barrels.
Should these reserves be certified, Venezuela will become the
nation with the world's largest liquid hydrocarbon reserves.
Given the many claims on PDVSA cash and the company's modest use
of leverage, it is likely that PDVSA may seek to raise
additional debt to finance this investment 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.
PETROLEOS DE VENEZUELA: May Build Tankers for China Shipment
------------------------------------------------------------
Venezuelan state-run oil company Petroleos de Venezuela SA is
likely to construct tankers to deliver Venezuelan crude to
China, Middle East North Africa Financial Network reports,
citing officials at Venezuela's Communication and Information
Ministry.
The officials told Bloomberg that Venezuela and China were
planning to create joint ventures to invest in oil sector in
both nations.
The mutual investments will also include drilling in Venezuelan
heavy-crude belt and constructing three plants for the oil in
China, Financial Network relates, citing the officials.
Venezuela's President Hugo Chavez's announcement that his nation
will diversify its oil exports to ease dependence on the U.S.
market -- where Venezuela exports about 1.5 million barrels per
day -- confirmed Venezuela's goal to increase oil exports to
China to one million barrels daily by 2012, from 150,000 barrels
per day, Financial Network states.
Petroleos de Venezuela SA -- http://www.pdv.com/--
is Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 12, 2007, Standard & Poor's Ratings
Services raised its long-term foreign currency corporate credit
rating on Petroleos de Venezuela S.A. or PDVSA to 'BB-' from
'B+'. S&P said the rating was removed from CreditWatch.
PETROLEOS DE VENEZUELA: S&P Puts BB- Ratings on Proposed Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' senior
unsecured long-term credit rating to Petroleos de Venezuela S.A.
or PDVSA's proposed US$2 billion notes due 2017, US$2 billion
notes due 2027, and US$1 billion notes due 2037. Proceeds from
the notes will be used for general corporate purposes, including
financing capital expenditures. The outlook is stable.
"The ratings on PDVSA and its sole shareholder, the Bolivarian
Republic of Venezuela, are tightly linked. The aforementioned
reflects Standard & Poor's opinion that PDVSA is public policy-
based institution that plays a central role in meeting the
sovereign's political and economic objectives," said Standard &
Poor's credit analyst Jose Coballasi.
Ownership and economic interests between PDVSA and Venezuela are
evidenced by the oil industry's significant contribution to
government revenues (50%) and the country's exports (90%). The
sharp increases in direct social spending by PDVSA and recent
investments in non-oil related assets further support Standard &
Poor's opinion. The ratings also reflect the inconsistencies
observed in reported production figures versus other sources and
the lack of an external audit of PDVSA's reserve base.
The stable outlook incorporates Standard & Poor's expectations
that PDVSA's financial performance will weaken during the next
couple of years because of higher debt leverage, and production
figures will remain around those posted in 2006. Financial and
operating performance below Standard & Poor's expectations could
lead to a negative rating action. The absence of timely
financial and operating information could lead to a rating
withdrawal. A positive trend in production figures and
additional comfort regarding production and reserve figures,
coupled with an improvement in the sovereign credit rating on
Venezuela, could lead to a positive rating action.
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.
* VENEZUELA: Int. Press Group Wants Gov. to Reconsider RCTV Case
----------------------------------------------------------------
The Global Coordinating Committee of Press Freedom Organizations
asked the Venezuelan government to reconsider its decision not
to renew the broadcasting license of Radio Caracas Television,
El Universal reports.
"Non-renewal of the license is to deprive the audience of the
contents and information RCTV has provided over the last 53
years of operations," El Universal says, citing a communique
from the press organization.
"The Coordinating Committee believes the Government should not
infringe freedom of expression or cut the sources of information
Venezuelans have available by arbitrarily refusing to renew a
license," the communique continues.
* * *
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.
* World Trade Agrees to Hear EU Banana Tariff Complaint
-------------------------------------------------------
The World Trade Organization agreed this week to set up a panel
that would investigate Latin American countries' complaint
against the European Union's banana tariff.
Previously, the European Union was able to block a previous
request to probe its compliance with international trade rules
that prevent discriminatory practices like imposing very high
tariffs.
According to reports, the EU imposes a US$234 per metric ton
tariff on banana imports from Latin America. The new tariff was
put in place in response to a previous WTO ruling which obliged
the bloc to cut tariffs to banana producers outside its favored
countries, the Lawandtax-News.com says.
"At the moment, the tariff is discriminatory and doesn't allow
our bananas to enter EU markets. Our participation in EU
markets is going down," Ecuador's trade negotiator Juan Holguin
was quoted by the Lawandtax-News as saying.
In Compliance with International Laws
The European Union insists that its tariff is in line with WTO
trade rules.
The EU's spokesperson, Michael Mann, said in reports that they'd
prefer to negotiate without WTO's arbitration.
The 27-nation bloc was disappointed with Ecuador's request to
form an arbitration panel and has reiterated its firm commitment
to pursue a "negotiated settlement in 2007."
Meanwhile, Costa Rica agrees with the EU to negotiate without an
arbitration panel. The Costa Rican trade negotiators believe
that talks are going well. Costa Rica's Vice Minister of
Foreign Affairs Amparo Pacheco, according to Lawandtax-News, is
afraid that negotiations began in December 2005 would be
jeopardized because of the arbitration request.
Ecuador and Colombia are leading the nations that want an
arbitration panel.
Ecuador claims that the EU's tariff is hurting its more than one
million citizens who are dependent on the banana industry, the
Associated Press says.
The Caribbean Broadcasting Corporation relates that the WTO had
previously ruled as discriminatory the EU's quotas on banana
imports outside the EU's favored African, Caribbean and Pacific
group countries.
The AP says Latin American bananas have around 60% of the EU
banana market, while African and Caribbean producers have 20%,
EU officials have said. Bananas grown in the EU -- mostly on
Spanish and French islands -- account for another 20%.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
March 29-31, 2007
AMERICAN LAW INSTITUTE - AMERICAN BAR ASSOCIATION
Chapter 11 Business Reorganizations
Scottsdale, Arizona
Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/
March 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Rising to the (Counter) Top of the Market
Solera, Minneapolis
Contact: http://www.turnaround.org/
March 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
10th Annual April Fools' Networking Cocktail Reception
University Club, New York, New York
Contact: 646-932-5532 or http://www.turnaround.org/
March 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Zinifex/Pasminco - What a ride?
Ferriers, Melbourne, Australia
Contact: http://www.turnaround.org/
April 5, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Case Study "When Everything Goes Wrong"
University of Florida, Gainesville, Florida
Contact: http://www.turnaround.org/
April 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
Pal's Cabin, West Orange, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
April 11-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
ABI Annual Spring Meeting
J.W. Marriott, Washington, District of Columbia
Contact: 1-703-739-0800; http://www.abiworld.org/
April 12, 2007
BEARD AUDIO CONFERENCES
Second Lien Financings and Intercreditor Agreements
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
April 12, 2007
INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING
CONFEDERATION
IWIRC 4th Spring Luncheon and Founders Awards
Washington, District of Columbia
Contact: http://www.iwirc.org/
April 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon University Club
Jacksonville, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
April 12, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - East
JW Marriott, Washington, District of Columbia
Contact: http://www.abiworld.org/
April 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Fundamentals of Turnaround Management
Melbourne, Australia
Contact: http://www.turnaround.org/
April 13, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Completing the Turnaround
Melbourne, Australia
Contact: http://www.turnaround.org/
April 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Association for Corporate Growth Arizona Chapter Meeting
Biltmore Hotel, Phoenix, Arizona
Contact: http://www.turnaround.org/
April 17, 2007
BEARD AUDIO CONFERENCES
Real Estate Bankruptcy
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
April 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Association for Corporate Growth Arizona Chapter Meeting
Biltmore Hotel, Phoenix, Arizona
Contact: http://www.turnaround.org/
April 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Joint Breakfast with Association for Corporate Growth
Woodbridge Hilton, Iselin, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Personnel Issues in Bankruptcy
University Club, Portland, Oregon
Contact: http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Program on Fraud and Forensic Investigations
Athletic Club, Denver, Colorado
Contact: http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Fundamentals of Turnaround Management
Brisbane, Australia
Contact: http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Personnel Issues in Bankruptcy
University Club, Portland, Oregon
Contact: http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast: Program on Fraud and Forensic Investigations
Athletic Club, Denver, Colorado
Contact: http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
Tyson's Corner Marriott, Vienna, Virginia
Contact: 215-657-5551 or http://www.turnaround.org/
April 19-20, 2007
BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES
Eighth Annual Conference on Healthcare Transactions
Successful Strategies for Mergers, Acquisitions,
Divestitures, and Restructurings
The Millennium Knickerbocker Hotel - Chicago
Contact: 800-726-2524;
http://renaissanceamerican.com/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Wine Tasting Social
TBA, Long Island, New York
Contact: 631-251-6296 or http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Operational Turnaround Management
Renaissance Hotel, Syracuse, New York
Contact: http://www.turnaround.org/
April 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Fraud and Forensic Investigation
Athletic Club, Denver, Colorado
Contact: http://www.turnaround.org/
April 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Completing the Turnaround
Brisbane, Australia
Contact: http://www.turnaround.org/
April 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
The Nuts & Bolts of Buying and Selling
Distressed Companies
University Club, Chicago, Illinois
Contact: http://www.turnaround.org/
April 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast meeting with Chapter President, Bruce Sim
Westin Buckhead, Atlanta, Georgia
Contact: 678-795-8103 or http://www.turnaround.org/
April 24, 2007
BEARD AUDIO CONFERENCES
Hospitals in Crisis: The Insolvency Crisis Plaguing
Hospitals Across the U.S.
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
April 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
"Why Prospects Become Clients"
Mark Fitzgerald, President of Sales Training Institute
Inc
Centre Club, Tampa, Florida
Contact: http://www.turnaround.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Jacksonville Zoo Turnaround
University Club, Jacksonville, Florida
Contact: http://www.turnaround.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
1st Annual Credit & Bankruptcy Symposium Golf/Spa Outing
Fox Hopyard Golf Club, East Haddam, Connecticut
Contact: 203-265-2048 or http://www.turnaround.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Spa Outing
Mohegan Sun, Uncasville, Connecticut
Contact: 203-265-2048 or http://www.turnaround.org/
April 26-27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
1st Annual Credit & Bankruptcy Symposium
Mohegan Sun, Uncasville, Connecticut
Contact: http://www.turnaround.org/
April 26-28, 2007
ALI-ABA
Fundamentals of Bankruptcy Law
Philadelphia, Pennsylvania
Contact: http://www.ali-aba.org/
April 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Arizona Chapter Meeting - Working Effectively with
the Media to Create Publicity for Your Business
Contact: http://www.turnaround.org/
April 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
13 Week CF Program
Washington University, St. Louis, Missouri
Contact: http://www.turnaround.org/
April 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Equity Sponsor Panel Breakfast
Westin Buckhead, Atlanta, Georgia
Contact: http://www.turnaround.org/
April 29 - May 1, 2007
INTERNATIONAL BAR ASSOCIATION
International Insolvency Conference
Zurich, Switzerland
Contact: http://www.ibanet.org/
May 1, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Organization of Women Visit King Tut Exhibit
Franklin Institute, Philadelphia, Pennsylvania
Contact: 215-657-5551 or www.turnaround.org/
May 2-4, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Association for Corporate Growth Arizona Chapter Meeting
Washington University, Arizona
Contact: http://www.turnaround.org/
May 4, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - NYC
Alexander Hamilton US Custom House, SDNY
New York, New York
Contact: http://www.abiworld.org/
May 7, 2007
AMERICAN BANKRUPTCY INSTITUTE
9th Annual New York City Bankruptcy Conference
Millennium Broadway Hotel & Conference Center
New York, New York
Contact: http://www.abiworld.org/
May 14-16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
1st Annual TMA Regional Conference - Texas
Hyatt Regency Resort & Spa
Lost Pines, Texas
Contact: http://www.turnaround.org/
May 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Corporate Restructuring Workshop
Cable Center, Denver, Colorado
Contact: http://www.turnaround.org/
May 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Corporate Restructuring Workshop
Cable Center, Denver, Colorado
Contact: http://www.turnaround.org/
May 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South Florida
Contact: 561-882-1331 or http://www.turnaround.org/
May 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Bankruptcy Judges Panel
Marriott North, Fort Lauderdale, Florida
Contact: http://www.turnaround.org/
May 17-18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
6th Annual Great Lakes Regional Conference
Renaissance Quail Hollow Resort, Painesville, Ohio
Contact: http://www.turnaround.org/
May 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Enterprise Valuation / Sale of the Distressed Business
Athletic Club, Seattle, Washington
Contact: http://www.turnaround.org/
May 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Women's Networking Lunch
TBD, Arizona
Contact: 623-581-3597 or www.turnaround.org/
May 18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
13 Week CF Program
Kansas City, Missouri
Contact: http://www.turnaround.org/
May 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
LI-TMA Annual Golf Outing
TBD, Long Island, New York
Contact: 631-251-6296 or http://www.turnaround.org/
May 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Hedge Funds
Standard Club, Chicago, Illinois
Contact: http://www.turnaround.org/
May 23, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
Calaloo Caf,, Morristown, New Jersey
Contact: 908-575-7333 or www.turnaround.org/
May 24-25, 2007
BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES
Fourth Annual Conference on Distressed Investing Europe
Maximizing Profits in the European Distressed Debt
Market
Le Meridien Piccadilly Hotel - London, UK
Contact: 800-726-2524;
http://renaissanceamerican.com/
May 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Arizona and RMA Joint Meeting
Hotel Valley Ho, Scottsdale, Arizona
Contact: http://www.turnaround.org/
May 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Bankruptcy Judges Panel
Citrus Club, Orlando, Florida
Contact: http://www.turnaround.org/
May 30-31, 2007
FINANCIAL RESEARCH ASSOCIATES
Distressed Debt
Harvard Club, New York, New York
Contact: http://www.frallc.com/
May 31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Wine Tasting and Casino Night
Mayfair Farms, West Orange, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
May 31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Speaker Series
E&Y Tower, Calgary, Alberta
Contact: http://www.turnaround.org/
May 31 - June 1, 2007
TURNAROUND MANAGEMENT ASSOCIATION
2nd Annual TMA Southeast Regional Conference
Marriott Resort at Grande Dunes
Myrtle Beach, South Carolina
Contact: http://www.turnaround.org/
June 4-7, 2008
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
24th Annual Bankruptcy & Restructuring Conference
JW Marriott Spa and Resort, Las Vegas, Nevada
Contact: http://http://www.airacira.org/
June 6-8, 2007
TURNAROUND MANAGEMENT ASSOCIATION
5th Annual Mid-Atlantic Regional Symposium
Borgata Hotel Casino & Spa
Atlantic City, New Jersey
Contact: http://www.turnaround.org/
June 6-9, 2007
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
23rd Annual Bankruptcy & Restructuring Conference
Westin River North, Chicago, Illinois
Contact: http://www.airacira.org/
June 7-8, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Mealey's Asbestos Bankruptcy Conference
Intercontinental Hotel, Chicago, Illinois
Contact: http://www.turnaround.org/
June 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Association for Corporate Growth Arizona Chapter Meeting
Biltmore Hotel, Phoenix, Arizona
Contact: http://www.turnaround.org/
June 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Economic Update at the 1/2 Year Mark
University Club, Portland, Oregon
Contact: http://www.turnaround.org/
June 14-17, 2007
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
June 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
Clarion Hotel, Princeton, New Jersey
Contact: 908-575-7333 or www.turnaround.org/
June 21-22, 2007
BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES
Tenth Annual Conference on Corporate Reorganizations
Successful Strategies for Restructuring Troubled
Companies
The Millennium Knickerbocker Hotel - Chicago
Contact: 800-726-2524;
http://renaissanceamerican.com/
June 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Bankruptcy Judges Panel
Centre Club, Tampa, Florida
Contact: http://www.turnaround.org/
June 28 - July 1, 2007
NORTON INSTITUTES
Norton Bankruptcy Litigation Institute
Jackson Lake Lodge, Jackson Hole, Wyoming
Contact: http://www2.nortoninstitutes.org/
July 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Bankruptcy Judges Panel
University Club, Jacksonville, Florida
Contact: http://www.turnaround.org/
July 12-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Marriott, Newport, Rhode Island
Contact: 1-703-739-0800; http://www.abiworld.org/
July 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Young Professionals Billiards Night
TBD, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
July 13, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Body of Knowledge - CTP Review Class
Chicago, Illinois
Contact: http://www.turnaround.org/
July 18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South Florida
Contact: 561-882-1331 or http://www.turnaround.org/
July 25-28, 2007
AMERICAN BANKRUPTCY INSTITUTE
12th Annual Southeast Bankruptcy Workshop
The Sanctuary, Kiawah Island, South Carolina
Contact: http://www.abiworld.org/
July 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Arizona Chapter Meeting
Contact: http://www.turnaround.org/
July 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual Golf Outing
Raritan Valley Country Club, Bridgewater, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
July 31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Enterprise Florida: Improving Florida's
Business Climate and Helping Florida Companies
Market Overseas
Citrus Club, Orlando, Florida
Contact: http://www.turnaround.org/
Aug. 3, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Women's Spa Event
Short Hills Hilton, Livingston, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Aug. 10, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Body of Knowledge - CTP Review Class
Chicago, Illinois
Contact: http://www.turnaround.org/
Aug. 9-11, 2007
AMERICAN BANKRUPTCY INSTITUTE
3rd Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, Maryland
Contact: http://www.abiworld.org/
Aug. 23-26, 2007
NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES
NABT Convention
Drake Hotel, Chicago, Illinois
Contact: http://www.nabt.com/
Aug. 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual Fishing Trip
Point Pleasant, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Aug. 28, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Healthcare Panel
Centre Club, Tampa, Florida
Contact: http://www.turnaround.org/
Aug. 29-30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
3rd Annual Northeast Regional Conference
Gideon Putnam Resort and Spa, Saratoga Springs,
New York
Contact: http://www.turnaround.org/
Sept. 6-7, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Complex Financial Restructuring Program
Four Seasons, Las Vegas, Nevada
Contact: http://www.turnaround.org/
Sept. 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Southwest Bankruptcy Conference
Four Seasons
Las Vegas, Nevada
Contact: http://www.abiworld.org/
Sept. 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Body of Knowledge - CTP Review Class
Chicago, Illinois
Contact: http://www.turnaround.org/
Sept. 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Buying and Selling Troubled Companies
Marriott North, Fort Lauderdale, Florida
Contact: http://www.turnaround.org/
Sept. 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South Florida
Contact: 561-882-1331 or http://www.turnaround.org/
Sept. 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Retail Panel
Citrus Club, Orlando, Florida
Contact: http://www.turnaround.org/
Sept. 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Joint Educational & Networking Reception
TBD, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Sept. 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Arizona Chapter Meeting
Contact: http://www.turnaround.org/
Sept. 27-30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
8th Annual Cross Border Business
Restructuring & Turnaround Conference
Contact: http://www.turnaround.org/
Oct. 2, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
TBD, Bridgewater, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Oct. 9-10, 2007
IWIRC
Orlando, Florida
IWIRC Annual Fall Conference
Contact: http://www.iwirc.org/
Oct. 10-13, 2007
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
81st Annual National Conference of Bankruptcy Judges
Contact: http://www.ncbj.org/
Oct. 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
Oct. 16-19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Copley Place
Boston, Massachussets
Contact: 312-578-6900; http://www.turnaround.org/
Oct. 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Capital Markets Case Study
Contact: http://www.turnaround.org/
Oct. 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Arizona Chapter Meeting
Contact: http://www.turnaround.org/
Oct. 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
Centre Club, Tampa, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
Oct. 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Crisis Communications With Employees,Vendors and Media
Centre Club, Tampa, Florida
Contact: http://www.turnaround.org/
Nov. 1, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
TBD, Hackensack, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Nov. 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Dinner
South Florida
Contact: 561-882-1331 or http://www.turnaround.org/
Nov. 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Portland Holiday Party
University Club, Portland, Oregon
Contact: 206-223-5495 or http://www.turnaround.org/
Nov. 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Mixer
TBA, Vancouver
Contact: 206-223-5495 or www.turnaround.org/
Nov. 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Real Estate Panel
Citrus Club, Orlando, Florida
Contact: http://www.turnaround.org/
Nov. 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Special Speaker
TBD, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Nov. 29, 2007
TMA Arizona Chapter Meeting
TURNAROUND MANAGEMENT ASSOCIATION
Contact: http://www.turnaround.org/
Dec. 6, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Seattle Holiday Party
Athletic Club, Seattle, Washington
Contact: 206-223-5495 or http://www.turnaround.org/
Dec. 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Westin Mission Hills Resort, Rancho Mirage, California
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South Florida
Contact: 561-882-1331 or http://www.turnaround.org/
Jan. 10, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, Florida
March 25-29, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Ritz Carlton Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
April 3-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
26th Annual Spring Meeting
The Renaissance, Washington, District of Columbia
Contact: http://www.abiworld.org/
June 12-14, 2008
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: http://www.abiworld.org/
July 10-13, 2008
TURNAROUND MANAGEMENT ASSOCIATION
16th Annual Northeast Bankruptcy Conference
Ocean Edge Resort
Brewster, Massachussets
Contact: http://www.turnaround.org/
July 31 - Aug. 2, 2008
AMERICAN BANKRUPTCY INSTITUTE
4th Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, Maryland
Contact: http://www.abiworld.org/
Aug. 16-19, 2008
AMERICAN BANKRUPTCY INSTITUTE
13th Annual Southeast Bankruptcy Workshop
Ritz-Carlton, Amelia Island, Florida
Contact: http://www.abiworld.org/
Sept. 24-27, 2008
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Scottsdale, Arizona
Contact: http://www.ncbj.org/
Oct. 28-31, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott New Orleans, Louisiana
Contact: 312-578-6900; http://www.turnaround.org/
Dec. 4-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
20th Annual Winter Leadership Conference
Westin La Paloma Resort & Spa
Tucson, Arizona
Contact: http://www.abiworld.org/
May 7-10, 2009
AMERICAN BANKRUPTCY INSTITUTE
27th Annual Spring Meeting
Gaylord National Resort & Convention Center
National Harbor, Maryland
Contact: http://www.abiworld.org/
Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
17th Annual Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nevada
Contact: http://www.abiworld.org/
Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Desert Ridge, Phoenix, Arizona
Contact: 312-578-6900; http://www.turnaround.org/
2009 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Las Vegas, Nevada
Contact: http://www.ncbj.org/
June 21-24, 2009
INSOL
8th International World Congress
TBA
Contact: http://www.insol.org/
Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
2010 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
New Orleans, Louisiana
Contact: http://www.ncbj.org/
BEARD AUDIO CONFERENCES
BAPCPA One Year On: Lessons Learned and Outlook
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Calpine's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changes to Cross-Border Insolvencies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Clash of the Titans -- Bankruptcy vs. IP Rights
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Dana's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Deepening Insolvency - Widening Controversy: Current Risks,
Latest Decisions
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Diagnosing Problems in Troubled Companies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Claims Trading
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Market Opportunities
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Real Estate under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Employee Benefits and Executive Compensation under the New
Code
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Equitable Subordination and Recharacterization
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Healthcare Bankruptcy Reforms
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Homestead Exemptions under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Hospitals in Crisis: The Insolvency Crisis Plaguing
Hospitals Across the U.S.
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
KERPs and Bonuses under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Privacy Rights, Protections & Pitfalls in Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Real Estate Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Reverse Mergers-the New IPO?
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Second Lien Financings and Intercreditor Agreements
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Surviving the Digital Deluge: Best Practices in E-Discovery
and Records Management for Bankruptcy Practitioners
and Litigators
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Validating Distressed Security Portfolios: Year-End Price
Validation and Risk Assessment
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
When Tenants File -- A Landlord's BAPCPA Survival Guide
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, Christian Toledo, and Junald Ango, Editors.
Copyright 2076. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *