/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070416.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, April 16, 2007, Vol. 8, Issue 74 Headlines A R G E N T I N A AEROPAGO SA: Creditors to Vote on Settlement Plan Tomorrow AJ CHEDIEX: Proofs of Claim Verification Ends on August 7 ARLENA SA: Creditors to Vote on Settlement Plan Tomorrow COMPANIA LATINOAMERICANA: S&P Puts B- Rating on US$100MM Bonds DARRITCHON SRL: Proofs of Claim Verification Is Until June 13 DISTRIBUIDORA DEL NORTE: Claims Verification Deadline Is July 4 MONTE GRAPPA: Trustee To File Individual Reports in Court Tom SIDEPA SA: Trustee Filing Individual Reports in Court on June 21 SIRENA SA: Proofs of Claim Verification Is Until May 31 OPHIEL SRL: Trustee Verifies Proofs of Claim Until May 11 TELECOM ARGENTINA: Discloses New Organizational Model * ARGENTINA: S&P Affirms Buenos Aires' B+ Issuer Credit Ratings B E R M U D A ASCEND COMMUNICATIONS: Final General Meeting Is Set for April 17 ASCEND COMMUNICATIONS: Proofs of Claim Filing Is Until April 27 GLACIER INSURANCE: Proofs of Claim Filing Is Until April 27 GLACIER INSURANCE: Will Hold Final General Meeting on May 16 HAWTHORNE INSURANCE: Final General Meeting Is Set for May 16 HAWTHORNE INSURANCE: Proofs of Claim Filing Ends on April 27 LCB INVESTMENTS: Proofs of Claim Filing Is Until April 27 LCB INVESTMENTS: Will Hold Final General Meeting on May 16 B O L I V I A * BOLIVIA: Senate Signs Three, Amends 37 Hydrocarbons Bills B R A Z I L ALERIS INTERNATIONAL: Posts US$4.7 Bil. in Revenues for FY 2006 AVNET INC: Unit Hires Dick Borsboom as President for EMEA Unit BANCO BMG: Earns BRL129 Million in First Quarter 2007 BANCO BRADESCO: Unit Eyes Up to 15% Boost in Transport Premiums BRASKEM SA: Raises US$1.2-Bil. to Finance Ipiranga Purchase CMS ENERGY: To Sell Brazilian Unit to CPFL Energia for US$211MM COMPAGNIE GENERALE: Moody's Assigns Loss-Given-Default Rating COREL CORP: Expects First Quarter Revenues of Up to US$53 Mil. DRESSER INC: S&P Affirms B Rating on Likely Debt Leverage Cut GLOBO COMUNICACAO: Moody's Puts Ba1 Rating on US$200-Mil. Notes GLOBO COMUNICACAO: S&P Puts BB Rating on US$200-Million Notes MACDERMID INC: Shareholders Okay Merger with Matrix Acquisition PETROLEO BRASILEIRO: Hires Skanska to Build Propane-Making Unit PETROLEO BRASILEIRO: May Purchase Tankers to Aid Ethanol Export PETROLEO BRASILEIRO: Must Follow Government's Development Scheme PETROLEO BRASILEIRO: Proposes LatAm Gas Pipeline to Hike Exports SANMINA-SCI: May Miss 2nd Qtr. Revenue Target Due to Low Demand TAM CAPITAL: Fitch Assigns BB rating on US$200-Million Issuance TAM CAPITAL: S&P Puts BB- Rating on US$200 Mil. Guaranteed Notes TAM SA: Offers Senior Notes Due 2017 to Finance Fleet Upgrade TAM SA: Fitch Assigns BB Foreign & Local Currency Issuer Ratings TAM SA: S&P Assigns BB Long-Term Corporate Credit Rating TELE NORTE: Shareholders Okay BRL600-Million Interest on Capital TELE NORTE: Shareholders Approve Stock Option Plan TELE NORTE: S&P Says Buyout Threat Has No Effect on Ratings TOWER AUTOMOTIVE: Court Approves US$1-Billion Sale to Cerberus TOWER AUTOMOTIVE: Exclusive Plan-Filing Period Extended to May 3 TRW AUTOMOTIVE: Increases Consideration for Tender Offer XERIUM TECHNOLOGIES: Miguel Quinonez to Step Down as President C A Y M A N I S L A N D S BB NETWORK: Proofs of Claim Filing Deadline Is Tomorrow KAZIMIR RUSSIA: Proofs of Claim Must be Filed on Friday PARMALAT SPA: N.Y. Court Allows Charges Against Grant Thornton PARMALAT SPA: Constitutional Court Affirms Claims vs. Two Banks C H I L E EMPRESA DE FERROCARILES: Needs to Privatize Passenger Services LIBERTY GLOBAL: Moody's Assigns Loss-Given-Default Rating NORSKE SKOGINDUSTRIER: Moody's Assigns Loss-Given-Default Rating C O L O M B I A BANCOLOMBIA SA: Earns COP111.3 Billion in March 2007 BANCOLOMBIA SA: Moody's Affirms Ba3/Not Prime Deposit Ratings SUN MICROSYSTEMS: Will Acquire SavaJe Technologies IP Assets D O M I N I C A N R E P U B L I C AMERICAN AIRLINES: Files for Approval to Operate New Routes BANCO INTERCONTINENTAL: Pays Ex-Colonel's Credit Card Expenses JETBLUE AIRWAYS: Names Jim Hnat as Executive Vice President * DOMINICAN REPUBLIC: To Issue DOP320-Billion of 10-Year Bonds E C U A D O R GRAHAM PACKAGING: Dec. 31 Balance Sheet Upside-Down by US$597.8M E L S A L V A D O R ALCATEL-LUCENT: Unveils Adjusted Quarterly Figures for 2006 ALCATEL-LUCENT: Completes Gazprom Neft Network Project DIGICEL GROUP: Launches US$150-Mil. Mobile Deal in El Salvador G U A T E M A L A IMAX CORP: Provides Status Update on Delayed Filing M E X I C O BALLY TOTAL: Gets Forbearance Pact from Senior Secured Lenders BERRY PLASTICS: Completes Stock-for-Stock Merger with Covalence BERRY PLASTICS: Moody's Cuts Corporate Family Rating to B2 CABLEMAS SA: Picks ARRIS Technology to Provide VoIP Service DAMOVO GROUP: In Talks with Noteholders Over Restructuring Deal DESARROLLADORA METROPOLITANA: Moody's Rates US$100MM Notes at B2 EMPRESAS ICA: Infrainvest Gets US$50-Million Loan from IFC FORD MOTOR: Employees Will Not Fight Warwickshire Site Closure FORD MOTOR: Discloses Top Executive Compensation Details GREENBRIER COS: Mike Roarke Reiterates "Hold" Rating on Shares GRUPO IUSACELL: Will Use Tango Telecom's Data Charging Software KRISPY KREME: Incurs US$24.4 Mil. Net Loss in Qtr. Ended Jan. 28 MCDERMOTT INT'L: Repays US$250MM Loan of Babcock Credit Facility PORTRAIT CORP: Assumes Lease Agreement with Lakemont Industrial UNITED RENTALS: Board Exploring Strategic Alternatives UNITED RENTALS: CEO Wayland Hicks to Retire VITRO S.A.B.: Will Release 2007 First Quarter Results on May 2 N I C A R A G U A XEROX CORP: Passes U.S. Envt'l Agency's Energy Saving Standard P A N A M A CABLE & WIRELESS: Moody's Assigns Loss-Given-Default Rating CABLE & WIRELESS: Nears Supply Deal with Virgin Media CHIQUITA BRANDS: Unit Grants US$2-Million Funds in Nine Projects P U E R T O R I C O FEDERATED DEPARTMENT: Sales for Five-Week Period Up by 1.5% MUSICLAND HOLDING: Plan Confirmation Hearing Delayed to April 26 PATHEON INC: Moody's Rates Proposed US$225-Mln Senior Loan at B1 PIER 1: Incurs US$58,696,000 Net Loss in Quarter Ended March 3 U R U G U A Y NAVIOS MARITIME: Hires George Achniotis as Chief Fin'l Officer V E N E Z U E L A CMS ENERGY: Inks Pact to Sell Brazilian Unit for US$211.1 Mil. HERBALIFE LTD: Opens New Sales Unit in Phoenix, Arizona PETROLEOS DE VENEZUELA: Investors to Get Tax-Exempt Yields PETROLEOS DE VENEZUELA: Sells US$7.5 Billion of Bonds SANCOR COOPERATIVAS: Selling Up to 3K Tons of Milk to Venezuela * VENEZUELA: Posts 60,000 Daily Oil Output Increase in March * BOOK REVIEW: Building American Cities - - - - - ================= A R G E N T I N A ================= AEROPAGO SA: Creditors to Vote on Settlement Plan Tomorrow ---------------------------------------------------------- Aeropago S.A., a company under reorganization, will present a settlement plan to its creditors on April 17, 2007. Adalberto Corbelleri, the court-appointed trustee for Aeropago's reorganization proceeding, submitted individual reports in court on Oct. 6, 2006. The individual reports were based on creditors' claims that Mr. Corbelleri verified until Aug. 25, 2006. The National Commercial Court of First Instance No. 26 in Buenos Aires, with the assistance of Clerk No. 51, determined the verified claims' admissibility, taking into account the trustee's opinion and the objections and challenges raised by Aeropago and its creditors. Mr. Corbelleri also presented a general report containing an audit of Aeropago's accounting and banking records in court on Nov. 20, 2006. The debtor can be reached at: Aeropago S.A. Lavalle 1578 Buenos Aires, Argentina The trustee can be reached at: Adalberto Corbelleri Carabobo 2372 Buenos Aires, Argentina AJ CHEDIEX: Proofs of Claim Verification Ends on August 7 --------------------------------------------------------- Graciela Lissarrague, the court-appointed trustee for A.J. Chediex SRL's bankruptcy proceeding, verifies creditors' proofs of claim until Aug. 7, 2007. Ms. Lissarrague will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 24, 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 A.J. Chediex 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 A.J. Chediex's accounting and banking records will be submitted in court. La Nacion did not state the reports submission date. Ms. Lissarrague is also in charge of administering A.J. Chediex's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: A.J. Chediex SRL Cordoba 2959 Buenos Aires, Argentina The trustee can be reached at: Graciela Lissarrague Tte. Gral. J.D. Peron 1509 Buenos Aires, Argentina ARLENA SA: Creditors to Vote on Settlement Plan Tomorrow -------------------------------------------------------- Arlena S.A., a company under reorganization, will present a settlement plan to its creditors on April 17, 2007. Marta Elena Pereyra, the court-appointed trustee for Arlena's reorganization proceeding, submitted individual reports in court on Aug. 17, 2006. The individual reports were based on creditors' claims that Ms. Pereyra verified until June 23, 2006. The National Commercial Court of First Instance in Resistencia, Chaco, determined the verified claims' admissibility, taking into account the trustee's opinion and the objections and challenges raised by Arlena and its creditors. Ms. Pereyra also presented a general report containing an audit of Arlena's accounting and banking records in court on Oct. 3, 2006. The debtor can be reached at: Arlena S.A. Vedia 135/145, Resistencia Chaco, Argentina The trustee can be reached at: Marta Elena Pereyra Cervantes 531, Resistencia Chaco, Argentina COMPANIA LATINOAMERICANA: S&P Puts B- Rating on US$100MM Bonds -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' senior unsecured debt rating to Compania Latinoamericana de Infraestructura & Servicios S.A.'s upcoming issuance of up to US$100 million five-year bullet bonds. All other ratings are affirmed. The outlook is stable. "The new issue is jointly and severally guaranteed by Compania Latinoamericana's subsidiaries, Benito Roggio e Hijos S.A. and Cliba Ingenieria Ambiental S.A., which prevents notching down for structural subordination," said Standard & Poor's credit analyst Ivana Recalde. Proceeds will be used mainly to refinance existing debt and, to a lesser extent, cancel other obligations. Although this issuance would initially come from an increase in Compania Latinoamericana's debt levels (of about 14% compared with debt registered as of December 2006) and in a higher exposure to currency mismatch risks, it would significantly alleviate the company's refinancing risk because of the extension in the company's debt maturities during the long term. The ratings on Compania Latinoamericana reflect the risks associated with heavy dependence on the Argentine economy and on large government clients, exposure to foreign currency mismatch risks, and relatively limited financial flexibility. The renegotiation of its subway concession contract poses additional challenges. The stable outlook reflects Standard & Poor's expectations that Compania Latinoamericana will gradually consolidate its business and financial profile, in light of relatively favorable prospects for the development of infrastructure projects, and assuming the mass transportation unit continues receiving subsidies. The ratings could benefit from a significant improvement of the company's financial profile. In contrast, the ratings could come under pressure if economic conditions deteriorate significantly, if the renegotiation of Compania Latinoamericana's subway operations contract is unsuccessful, or if the company registers a higher-than-expected increase in leverage. Compania Latinoamericana de Infraestructura & Servicios S.A. is a holding company involved in passenger transport, construction, road maintenance and environmental engineering. The company operates in Buenos Aires, Argentina. DARRITCHON SRL: Proofs of Claim Verification Is Until June 13 ------------------------------------------------------------- Irma S. Aguilera, the court-appointed trustee for Darritchon SRL's bankruptcy proceeding, verifies creditors' proofs of claim until June 13, 2007. Ms. Aguilera will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 4 in Buenos Aires, with the assistance of Clerk No. 8, 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 Darritchon 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 Darritchon's accounting and banking records will be submitted in court. La Nacion did not state the reports submission date. Ms. Aguilera is also in charge of administering Darritchon's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Darritchon SRL Nicolas Repetto 480 The trustee can be reached at: Irma S. Aguilera Luis Saenz Pena 1690 Buenos Aires, Argentina DISTRIBUIDORA DEL NORTE: Claims Verification Deadline Is July 4 --------------------------------------------------------------- Susana Roiter, the court-appointed trustee for Distribuidora del Norte SA's bankruptcy proceeding, verifies creditors' proofs of claim until July 4, 2007. Ms. Roiter will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 24 in Buenos Aires, with the assistance of Clerk No. 47, 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 Distribuidora del Norte 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 Distribuidora del Norte's accounting and banking records will be submitted in court. La Nacion did not state the reports submission date. Ms. Roiter is also in charge of administering Distribuidora del Norte's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Distribuidora del Norte SA Avenida de Mayo 819 Buenos Aires, Argentina The trustee can be reached at: Susana Roiter Marcelo T. de Alvear 1430 Buenos Aires, Argentina MONTE GRAPPA: Trustee To File Individual Reports in Court Tom ------------------------------------------------------------- Ana Maria Calzada Percivale, the court-appointed trustee for Monte Grappa SA's bankruptcy proceeding, will present creditors' validated claims as individual reports in the National Commercial Court of First Instance No. 21 in Buenos Aires, on April 17, 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 Monte Grappa and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Ms. Percivale verified creditors' proofs of claim until March 1, 2007. Ms. Percivale will also submit to court a general report containing an audit of Monte Grappa's accounting and banking records on May 31, 2007. Ms. Percivale is also in charge of administering Monte Grappa's assets under court supervision and will take part in their disposal to the extent established by law. Clerk No. 41 assists the court in the proceeding. The debtor can be reached at: Monte Grappa SA Viamonte 867 Buenos Aires, Argentina The trustee can be reached at: Ana Calzada Percivale Avenida San Martin 2805 Buenos Aires, Argentina SIDEPA SA: Trustee Filing Individual Reports in Court on June 21 ---------------------------------------------------------------- Carlos A. Vicente, the court-appointed trustee for Sidepa S.A.'s bankruptcy proceeding, will present creditors' validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on June 21, 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 Sidepa and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Vicente verifies creditors' proofs of claim until May 9, 2007. Mr. Vicente will also submit to court a general report containing an audit of Sidepa's accounting and banking records on Aug. 17, 2007. The debtor can be reached at: Sidepa S.A. Avenida Iriarte 1927 Buenos Aires, Argentina The trustee can be reached at: Carlos A. Vicente Avenida Corrientes 2166 Buenos Aires, Argentina SIRENA SA: Proofs of Claim Verification Is Until May 31 ------------------------------------------------------- Rosa del Carmen Irigoyen, the court-appointed trustee for Sirena SA's bankruptcy proceeding, verifies creditors' proofs of claim until May 31, 2007. Ms. Irigoyen will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 50, 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 Sirena 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 Sirena's accounting and banking records will be submitted in court. La Nacion did not state the reports submission date. Ms. Irigoyen is also in charge of administering Sirena's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Rosa del Carmen Irigoyen Cordoba 1351 Buenos Aires, Argentina OPHIEL SRL: Trustee Verifies Proofs of Claim Until May 11 --------------------------------------------------------- Elsa Etchegaray Pena, the court-appointed trustee for Ophiel S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until May 11, 2007. The National Commercial Court of First Instance in Mar del Plata, Buenos Aires approved a petition for reorganization filed by Ophiel, according to a report from Argentine daily Infobae. Ms. Pena will present the validated claims in court as individual reports. The court 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 Ophiel 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 Ophiel's accounting and banking records will be submitted in court. The informative assembly will follow. Creditors will vote to ratify the completed settlement plan during the assembly. Infobae didn't state the reports submission dates as well as the schedule of the informative assembly. The trustee can be reached at: Elsa Etchegaray Pena Avenida Luro 3894, Mar del Plata Buenos Aires, Argentina TELECOM ARGENTINA: Discloses New Organizational Model ----------------------------------------------------- The Telecom Argentina Group has announced a new organizational model, aiming to facilitate the synergies among fixed and mobile communications, broadband and content. The Telecom Argentina Group is, therefore, positioned as the first telecommunications player in Argentina to implement this type of organizational model. Under this new model, the business is conducted under a unified vision, under the responsibility of a General Operations Director, Marco Patuano. Mr. Patuano will have the responsibility of four main units: Mobile, Network, Fixed-line Residential & SME's, and Fixed-line Corporations and Wholesale. Corporate functions have been grouped in a General Corporate Direction, under the interim responsibility of Carlos Felices. Mr. Felices, additionally, maintains his position as Chief Executive Officer of the Group. Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- is the fixed-line operator for local and long-distance services in northern and southern Argentina. It also provides cellular and PCS phone services in Argentina, as well as in Paraguay through a 68% stake in Nocleo. France Telecom formerly controlled the company through its Nortel Inversora venture with Telecom Italia. France Telecom sold most of its stake in 2003 to the Werthein Group, an Argentine agricultural concern owned in part by vice chairman Gerardo Werthein. Nortel continues to be Telecom Argentina's largest shareholder with a 55% stake. Nortel is owned by Sofora, a consortium owned by Telecom Italia (50%), the Werthein Group (48%), and France Telecom (2%). * * * As reported on Oct 11, 2006, Standard & Poor's Ratings Services raised Telecom Argentina S.A.'s counterparty credit rating to B+/Stable/ from B/Stable following the upgrade of the Republic of Argentina to 'B+' from 'B', announced on Oct. 2, 2006. * ARGENTINA: S&P Affirms Buenos Aires' B+ Issuer Credit Ratings --------------------------------------------------------------- Standard & Poor's affirmed its 'B+' long-term foreign and local currency issuer credit ratings on the Province of Buenos Aires. Standard & Poor's also assigned its 'raAA-' senior unsecured debt rating to the province's US$400 million bond issue, which matures on April 18, 2028. On Feb. 27, 2007, Standard & Poor's had assigned its 'B+' rating to this bond. Buenos Aires had postponed the issuance because of volatility in international markets as well as the departure of Buenos Aires' Minister of the Economy Gerardo Otero on March 5, 2007. Under more favorable circumstances, the province will issue the new US$400 million of senior unsecured debt on April 18, 2007, as it was authorized by the legislature. Buenos Aires will use this new debt mainly to finance pending infrastructure projects. The new bond is the province's second international issuance since curing its default by completing a comprehensive debt restructuring in January 2006. In October 2006, Buenos Aires issued a previous Eurobond for US$475 million due in 2018. "The ratings on the province continue to be supported by a diversified economic base that is an estimated 36% of Argentina's (B+/Stable/B sovereign credit rating and raAA/Stable/-- national scale rating) Gross Domestic Product and constitutes a key driver of the country's recent and continuing economic growth," said Standard & Poor's credit analyst Sebastian Briozzo. Growth was estimated at 8.5% in 2006. "In addition, the province has a sophisticated and experienced management team with the capacity to generate timely and comprehensive financial reports," Mr. Briozzo stated. Nonetheless, several factors constrain the ratings on Buenos Aires at the current level. These include structural fiscal imbalances resulting from, among other factors, a relatively low share of federal government revenue transfers compared with both the province's contribution to the system and its high level of expenditure responsibilities -- education and health in particular. Another important constraining rating factor is the province's high debt burden. As of April 2007, total debt, including the new debt issuance and recent federal financial assistance of ARS2.7 billion, reached ARS37.3 billion (US$12.0 billion) compared with the US$10.8 billion in fiscal 2006. Nevertheless, this high debt burden on the province's creditworthiness is partially offset by the structure of its debt. The stable outlook on Buenos Aires reflects Standard & Poor's expectation that the province's economic strength will be maintained. It also demonstrates Standard & Poor's expectation that the province will maintain both positive operating surpluses over the next few years and manageable deficits after capital expenditure. Deteriorating financial indicators -- such as a substantial increase in the province's fiscal deficit -- could negatively affect the outlook on the rating and eventually lead to a downgrade. ============= B E R M U D A ============= ASCEND COMMUNICATIONS: Final General Meeting Is Set for April 17 ---------------------------------------------------------------- Ascend Communications (Bermuda) Holding Limited's final general meeting will be at 11:00 a.m. on May 16, 2007, or as soon as possible, at the liquidator's place of business. These agendas will be taken during the meeting: -- the approval of and adoption of an account laid before the shareholders showing the manner in which the winding-up of the company has been conducted and its property disposed of; -- hearing any explanation that may be given by the liquidator; -- the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- to dissolve the company. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda ASCEND COMMUNICATIONS: Proofs of Claim Filing Is Until April 27 --------------------------------------------------------------- Ascend Communications (Bermuda) Holding Limited's creditors are given until April 27, 2007, to prove their claims to Jennifer Y. Fraser, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Ascend Communications' shareholders agreed on April 9, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda GLACIER INSURANCE: Proofs of Claim Filing Is Until April 27 ----------------------------------------------------------- Glacier Insurance Ltd.'s creditors are given until April 27, 2007, to prove their claims to Jennifer Y. Fraser, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Glacier Insurance's shareholders agreed on April 9, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda GLACIER INSURANCE: Will Hold Final General Meeting on May 16 ------------------------------------------------------------ Glacier Insurance Ltd.'s final general meeting will be at 9:00 a.m. on May 16, 2007, or as soon as possible, at the liquidator's place of business. These agendas will be taken during the meeting: -- the approval of and adoption of an account laid before the shareholders showing the manner in which the winding-up of the company has been conducted and its property disposed of; -- hearing any explanation that may be given by the liquidator; -- the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- to dissolve the company. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda HAWTHORNE INSURANCE: Final General Meeting Is Set for May 16 ------------------------------------------------------------ Hawthorne Insurance Company Limited's final general meeting will be at 12:00 p.m. on May 16, 2007, or as soon as possible, at the liquidator's place of business. These agendas will be taken during the meeting: -- the approval of and adoption of an account laid before the shareholders showing the manner in which the winding-up of the company has been conducted and its property disposed of; -- hearing any explanation that may be given by the liquidator; -- the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- to dissolve the company. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda HAWTHORNE INSURANCE: Proofs of Claim Filing Ends on April 27 ------------------------------------------------------------ Hawthorne Insurance Company Limited's creditors are given until April 27, 2007, to prove their claims to Jennifer Y. Fraser, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Hawthorne Insurance's shareholders agreed on April 9, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda LCB INVESTMENTS: Proofs of Claim Filing Is Until April 27 --------------------------------------------------------- LCB Investments, Limited's creditors are given until April 27, 2007, to prove their claims to Jennifer Y. Fraser, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. LCB Investments' shareholders agreed on April 9, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda LCB INVESTMENTS: Will Hold Final General Meeting on May 16 ---------------------------------------------------------- LCB Investments, Limited's final general meeting will be at 10:00 a.m. on May 16, 2007, or as soon as possible, at the liquidator's place of business. These agendas will be taken during the meeting: -- the approval of and adoption of an account laid before the shareholders showing the manner in which the winding-up of the company has been conducted and its property disposed of; -- hearing any explanation that may be given by the liquidator; -- the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- to dissolve the company. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda ============= B O L I V I A ============= * BOLIVIA: Senate Signs Three, Amends 37 Hydrocarbons Bills ----------------------------------------------------------- The Bolivian government has released the three remaining bills, aiming to fix flaws in various contracts signed with foreign hydrocarbons companies under the country's nationalization plan, Business News Americas reports. BNaMericas relates that the three final bills were delayed as the Podemos party wanted to reassess 37 of the senate-approved bills following the passage of the first 41 bills at the end of March. The 37 bills relate to production agreements and the seven is for exploration contracts. In addition, the senate also approved a complementary bill that will reduce the surtax to be paid by oil companies on unexpected profits and launch policies that strengthens the internal market. * * * 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 =========== ALERIS INTERNATIONAL: Posts US$4.7 Bil. in Revenues for FY 2006 --------------------------------------------------------------- Aleris International Inc.'s revenues for the year ended Dec. 31, 2006, increased US$2.3 billion to US$4.7 billion, as compared with revenues of US$2.4 billion for the year ended Dec. 31, 2005. The acquired operations of Corus Aluminum, ALSCO, Tomra Latasa, Alumitech and the acquired assets of Ormet accounted for an estimated US$1.6 billion of this increase. The company recorded a net income of US$70.3 million for the year ended Dec. 31, 2006, resulting from a net loss of US$3.4 million for the period after the Texas Pacific Group Merger from Dec. 20, 2006, through Dec. 31, 2006, and a net income for the period prior to the Merger from Jan. 1, 2006, through Dec. 19, 2006. Consolidated selling, general and administrative expenses increased US$76.3 million in the year ended Dec. 31, 2006, as compared with the year ended Dec. 31, 2005. In 2006, the company recorded restructuring and other charges of US$41.9 million and a US$9.8 million gain from currency option contracts used to hedge a portion of the purchase price paid to acquire Corus Aluminum. It also recorded net realized and unrealized gains of US$20.8 million on its aluminum derivative financial instruments as a result of the rising price of primary aluminum during the year. Interest expense increased in 2006 compared to 2005 due to increased debt levels in connection with the Acquisition and the acquisition of Corus Aluminum. The company's average debt outstanding increased from US$421.1 million in 2005 to US$1 billion in 2006. In connection with the acquisition of Corus Aluminum, the company refinanced substantially all of its debt as of Aug. 1, 2006. During 2006, the company sold the land and buildings at its Carson, California rolling mill and recorded a gain of US$13.8 million on the sale. Income tax expense was US$43.6 million in 2006, as compared with US$400,000 in 2005. Results for the Period Dec. 20 to Dec. 31, 2006 The company generated revenues of US$111.8 million and gross profit of US$2.9 million in the period from Dec. 20, 2006 to Dec. 31, 2006. Gross profit was negatively impacted by purchase accounting rules that required acquired inventories to be adjusted to fair value. As of Dec. 31, 2006, the company's balance sheet showed total assets of US$4.8 billion and total liabilities of US$4 billion, resulting to total stockholders' equity of US$845.4 million. The company recorded retained deficit of US$3.4 million in 2006, as compared with retained earnings of US$95.9 million in 2005. Cash and cash equivalents held in 2006 were US$126.1 million, as compared with US$6.8 million in 2005. December 2006 Refinancing On Dec. 19, 2006, in conjunction with the Acquisition, the company entered into the US$750 million Revolving Credit Facility, the US$1.2 billion Term Loan Facility, as amended on March 16, 2007, and issued US$600 million of Senior Notes and US$400 million of Senior Subordinated Notes. Events and Highlights in 2006 On July 14, 2006, Texas Pacific Group formed Holdings and Merger Sub for purposes of acquiring the company. On Aug. 7, 2006, the company entered into an Agreement and Plan of Merger with Holdings, pursuant to which each share of the company's common stock would be converted into the right to receive US$52.50 in cash. The Acquisition was completed on Dec. 19, 2006, at which time TPG and certain members of the company's management made a cash contribution of US$844.9 million and a non-cash contribution of US$3.9 million to Holdings in exchange for 8,520,000 shares of common stock of Holdings. The non-cash contribution consisted of shares of common stock held by management. Holdings contributed this amount to Merger Sub in exchange for Merger Sub issuing 900 shares of its common stock to Holdings. The company incurred significant debts in connection with the Acquisition and are highly leveraged. While substantially all of the company's debt matures in 2011 or later, it will incur and pay significantly more interest expense under its new capital structure than in 2006. The company estimated interest payments will be about US$178.1 million in the year ending Dec. 31, 2007. The Acquisition has also required that all of the company's assets and liabilities be adjusted to fair value through purchase accounting. These adjustments have impacted and will continue to impact the company's goodwill. Also, the company recorded preliminary purchase accounting adjustments to write-up its inventories by US$61.3 million. LME zinc prices had been at or near record levels throughout 2006 but as of Feb. 28, 2007, these prices had dropped by 21%, as compared with Dec. 31, 2006. This has negatively impacted the company's zinc business through the first two months of 2007. The North American housing industry has declined significantly in 2006 and in the beginning of 2007. Single-family home construction has decreased more than 10% year over year resulting in slower demand for building and construction end- uses in North America. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d07 About Aleris International Headquartered in Beachwood, Ohio, Aleris International, Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and is a global leader in aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The Company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on Dec. 21, 2006, Standard & Poor's Ratings Services affirmed its 'B+' loan and '2' recovery ratings on the senior secured first-lien term loan of Aleris International Inc., after the report that the company increased the term loan by US$125 million. With the add-on, the total amount of the facility is now US$1.23 billion. AVNET INC: Unit Hires Dick Borsboom as President for EMEA Unit -------------------------------------------------------------- Avnet Technology Solutions has appointed Dick Borsboom as president of Avnet Technology Solutions, EMEA (Europe, Middle East and Africa), effective immediately. As president, Mr. Borsboom will be responsible for the strategic direction and growth of Avnet's computing business in Europe, Middle East and Africa. Currently, the Avnet Technology group in EMEA generates US$1.3 billion in revenue and delivers computing technology to resellers, system integrators, system builders and embedded Original Equipment Manufacturers in 14 countries across Europe while continuing to expand its presence. Mr. Borsboom will report to John Paget, president, Avnet Technology, worldwide. The appointment of Mr. Borsboom further strengthens Avnet's European leadership team. He brings to the company more than 13 years of distribution industry experience, including positions in business management, finance, human resource and information technology. "Dick brings a wealth of experience and shares our sense of commitment to our team members," said Mr. Paget. "We're delighted to have someone with such a broad background in business and operational excellence. I'm confident he and his team have the skills and capabilities to expand Avnet Technology Solutions' European leadership in value-added distribution." Mr. Borsboom most recently served as chief financial officer and vice president of Finance, Human Resource and Information Technology at Flexsys Coordination Centre N.V. in Belgium, where he had a proven record of double-digit profit growth. His experience also extends to mergers and acquisitions. Prior to that position he served as chief financial officer for Bell Microproducts in the United States. He also previously worked as group chief financial officer for VEBA Electronics LLC in Germany, which was the spin-off of the IT distribution activities of Raab Karcher. The European part of VEBA Electronics was later acquired by Avnet. Mr. Borsboom also holds a Masters Degree in Economics from the University of Tilburg, The Netherlands. "Joining a company as strongly positioned as Avnet for growth in the region is an exceptional opportunity," said Mr. Borsboom. "The leadership team is experienced and understands how to connect business partners with market opportunities that are aligned with our suppliers' strategies. Avnet has a proven track record of growth, and I look forward to taking the business to the next level of success in Europe." About Avnet Technology Solutions Avnet Technology Solutions is an operating group of Avnet, Inc. representing US$5.1 billion in annual revenue for calendar year 2006, with locations in more than 30 countries. As a global technology sales and marketing organization, Avnet Technology Solutions has sales divisions focused on specific customer segments and a select line card strategy enabling an exceptional level of attention to the needs of its customers and suppliers. About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. (NYSE:AVT) -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, Sweden, Brazil, Mexico and Puerto Rico. * * * As reported in the Troubled Company Reporter on March 5, 2007, Moody's Investors Service affirmed the Ba1 corporate family and long-term debt ratings of Avnet, Inc. and revised the outlook to positive from stable. BANCO BMG: Earns BRL129 Million in First Quarter 2007 ----------------------------------------------------- Banco BMG's net profits increased 157% to BRL129 million in the first quarter of 2007, from the same quarter in 2006, Business News Americas reports. Banc BMG told BNamericas that its return on average equity reached 55.2%. BNamericas relates that Banco BMG's loan book rose 21.2% to BRL9.32 billion at the end of March 2007, compared to March 2006. According to BNamericas, Banco BMG granted about BRL1.34 billion in new loans in the first quarter of 2007: -- 32.2% was allocated for pensioners from the federal social security system INSS, -- 29.9% went to public sector workers, and -- 6.30% was allotted for private sector employees. BNamericas underscores that other lending activities include: -- vehicle funding, -- passing on loans from national development bank BNDES, and -- leasing operations. Banco BMG's net profits decreased 30.7% to BRL263 million in 2006, compared to 2005, after it was involved in a government bribery scandal. It faced allegations that it had cornered a large share of the retirement loan market as a favor from the government. Banco BMG had BRL4.62 billion assets at the end of 2006, BNamericas states, citing the Brazilian central bank. Banco BMG is the banking arm of Grupo BMG, which also has real estate, food manufacturing and agro industry holdings. The bank is a niche player focused on loans to civil servants, with repayments taken monthly from payrolls. BMG operates mainly through in-house representatives in state companies. It also offers leasing and asset management services. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 5, 2006, Moody's Investors Service upgraded Banco BMG SA's long-term foreign currency deposits to Ba3, from B1. Moody's said the rating outlook is stable. BANCO BRADESCO: Unit Eyes Up to 15% Boost in Transport Premiums --------------------------------------------------------------- Antonio Gonzalez -- executive commercial director of Bradesco Auto/RE, Banco Bradesco SA's insurance unit -- told Business News Americas that the firm expects transportation premiums to grow up to 15% this year, compared to last year. Bradesco Auto/RE raised transportation premiums less than 1% in 2006, compared to 2005, as a decreasing exchange rate bit into revenues from policies converted to reais from dollars, BNamericas notes, citing Mr. Gonzalez. Mr. Gonzalez commented to BNamericas, "In 2006, we were more or less in line with the market, but in fourth quarter 2006 we signed some large contracts that didn't have an impact until first quarter 2007." Mr. Gonzalez said that the transportation premiums increased 21% in the first quarter of 2007, compared to the same quarter in 2006, BNamericas relates. BNamericas underscores that Bradesco Auto/RE signed a contract to provide up to BRL12 million in civil liability coverage for each departure by shipping firm Linave. Mr. Gonzalez told BNamericas that Bradesco Auto/RE expects to make BRL1 million in revenues from the one-year contract, though much depends on Linave's deliveries in 2007. Bradesco Auto/RE will disclose other contracts in the near future. Bradesco Auto/RE see domestic transportation coverage increasing at a faster rate in 2007 because most importers of Brazilian goods purchase insurance policies outside the country. Brazil has a trade surplus, but less than 10% of exported merchandise has local insurance coverage, BNamericas says, citing Mr. Gonzalez. BNamericas emphasizes that domestic transportation coverage represents up to 65% of premiums in the segment. With the launching of the reinsurance market, Brazilian insurers will be able to offer lower rates and better compete with insurers abroad, Mr. Gonzalez told BNamericas. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 26, 2007, Fitch Ratings affirmed these issuer default ratings on Bradesco, with a Stable Outlook: -- Long-term foreign currency at 'BB+'; -- Long-term local currency at 'BBB-'; -- Individual rating at 'B/C'; -- Local currency short-term at 'F3'; -- Short-term at 'B'; -- Support rating of '4'; -- National short-term rating 'F1+(bra)'; and -- National long-term rating 'AA+(bra)'. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 27, 2006, Standard & Poor's Ratings Services maintained the 'BB+' ratings on both of Banco Bradesco SA's foreign and local currency counterparty credit rating, however it changed the ratings outlook to positive from stable on both ratings: -- Foreign currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Local currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Brazil national scale rating * to brAA+/Positive/brA-1 from brAA+/Stable/brA- BRASKEM SA: Raises US$1.2-Bil. to Finance Ipiranga Purchase ----------------------------------------------------------- Braskem S.A. reported the conclusion of negotiations, which will guarantee the raising of up to US$1.2 billion through a bridge loan to finance the acquisition of Ipiranga Group's petrochemical business jointly with Petrobras and the future delisting of Copesul, two exceptionally important assets in Braskem's strategy of growth with value creation and consolidating the petrochemical sector in the south of Brazil. "The positive market evaluation about the new size of the Company, the synergies to be captured and the strategic benefits resulting from the Ipiranga acquisition, combined with the confidence in Braskem's financial strength, proved crucial to the success of the operation," says Carlos Fadigas, Braskem CFO and Investor Relations Director. According to Mr. Fadigas, the company raised the funds in a highly favorable market scenario, with excellent liquidity, guaranteeing attractive borrowing conditions and financial flexibility to Braskem. The 2-year credit facility will be repaid at 0.35% above the Libor rate in the first year and 0.55% above the Libor in the second, making this transaction the most competitive ever in Brazil. The transaction was structured and led by ABN AMRO Real, Calyon and Citibank. Braskem expects to conclude the refinancing of the bridge loan at the appropriate moment, while always maintaining its focus on reducing the Company's cost of capital and ensuring a debt profile that is suitable to its cash flow. Braskem's net debt/EBITDA ratio, which measures its degree of financial leverage and is currently 2.7x, will be virtually unaffected by this acquisition. Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. * * * As reported in the Troubled Company Reporter-Latin America on March 26, 2007, Fitch Ratings has affirmed its BB+ ratings on Braskem S.A. and Braskem International following the announcement by Braskem, Petrobras and the Ultra Group that they have reached an agreement to acquire the Ipiranga Group's petrochemical, refining and fuel distribution assets. Fitch also affirmed these ratings: Braskem S.A. -- Foreign currency issuer default rating at 'BB+'; -- Local currency issuer default rating at 'BB+';; -- Senior unsecured notes 2008, 2014 at 'BB+'; -- Senior unsecured Perpetual Bonds at 'BB+'; -- Senior unsecured notes 2017 at 'BB+'; -- National rating at 'AA (bra)'; -- Debentures 12th Issuance at 'AA (bra)'; and -- Debentures 13th Issuance at 'AA (bra)'. Braskem International -- Senior unsecured notes 2015 at 'BB+'. CMS ENERGY: To Sell Brazilian Unit to CPFL Energia for US$211MM --------------------------------------------------------------- CMS Energy said in a statement that it has agreed to sell its Brazilian power holding firm CMS Energy Brasil to utility CPFL Energia for US$211 million. Business News Americas relates that CMS Energy disclosed earlier this year plans of selling its assets in Argentina, Brazil, Chile and Jamaica as well as in the US. CMS Energy told BNamericas that the sale of CMS Energy Brasil needs the Brazilian power regulator Aneel's authorization. The sale will be closed by the end of the second quarter. Proceeds will be used in debt reduction and CMS Energy investments, BNamericas notes, citing CMS Energy. JP Morgan Securities is CMS Energy's financial advisor for the deal, BNamericas states. Headquartered in Jackson, Michigan, Consumers Energy Company -- http://www.consumersenergy.com/-- a wholly owned subsidiary of CMS Energy Corporation, is a combination of electric and natural gas utility that serves more than 3.3 million customers in Michigan's Lower Peninsula. The company has offices in Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2007, Moody's Investors Service affirmed the ratings of CMS Energy (Ba1 Corporate Family Rating) and Consumers Energy (Baa2 senior secured) and revised the rating outlook of both to positive from stable. Moody's also affirmed CMS Energy's SGL-2 rating. COMPAGNIE GENERALE: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Gaming, Lodging and Leisure, Manufacturing, and Energy sectors last week, the rating agency confirmed its Ba2 Corporate Family Rating for Compagnie Generale De Geophysique-Veritas. Moody's also assigned a Ba2 probability of default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. * Issuer: Compagnie Generale De Geophysique-Veritas Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Senior Secured Bank Credit Facility Ba2 Ba2 LGD3 41% 7.5% Senior Unsecured Regular Bond/Debenture Due 2015 Ba3 Ba3 LGD4 63% 7.75% Senior Unsecured Regular Bond/Debenture Due 2017 Ba3 Ba3 LGD4 63% * Issuer: CGGVeritas Services, Inc. Senior Secured Bank Credit Facility Ba2 Ba2 LGD3 41% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). France-based Compagnie Generale De Geophysique-Veritas is formerly known as Compagnie Generale de Geophysique. The Group's principal activities are to manufacture geophysical equipment and software and to provide geophysical services and information. The Group operates in Europe, Africa, the United States, Canada, Brazil and Columbia. COREL CORP: Expects First Quarter Revenues of Up to US$53 Mil. -------------------------------------------------------------- Corel Corp. reported preliminary financial results for its first quarter ended Feb. 28, 2007. Revenues in the first quarter of fiscal 2007 are expected to be at the high-end of guidance and earnings are expected to be above guidance. On Jan. 18, 2007, the company provided guidance for the first quarter of 2007 of revenue in the range of US$51 million to US$53 million, GAAP EPS of US$(0.70) to US$(0.78) per share and non-GAAP EPS of US$(0.04) per share. These financial results were prepared by management of the company and are unaudited. The company also reaffirmed its previous guidance for the full 2007 fiscal year. The company also announced that it intends to delay the filing of its Quarterly Report on Form 10-Q until but no later than April 20, 2007. The company intends to delay its filing of quarterly results to complete the accounting of its acquisition of InterVideo on Dec. 12, 2006, specifically regarding the allocation of the purchase price related to the acquisition. As a result of this delay, the company has postponed its results conference call, originally scheduled for April 12 at 4:30 p.m. eastern time. The company will announce a new time for the first quarter earnings conference call shortly. "Corel had a very solid quarter during which we completed the acquisition of InterVideo," said David Dobson, CEO of Corel Corp. "We do not expect the review of the purchase price allocation to impact our quarterly results or our forward guidance. We are looking forward to completing this process and discussing our final results with shareholders." The company intends to satisfy the alternate information disclosure requirements under applicable policies of the Canadian securities regulatory authorities until it has completed its required quarterly filings. Ottawa, Ontario-based Corel Corp. (NASDAQ: CREL) (TSX: CRE) -- http://www.corel.com/-- is a packaged software company with an estimated installed base of over 40 million users. The Company provides productivity, graphics and digital imaging software. Its products are sold in over 75 countries through a scalable distribution platform comprised of original equipment manufacturers, Corel's international websites, and a global network of resellers and retailers. The Company's product portfolio features CorelDRAW(R) Graphics Suite, Corel(R) WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro, and Corel Painter(TM). The company has operations in Germany, Italy, the United Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among others. * * * As reported in the Troubled Company Reporter on Nov. 7, 2006, Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit and senior secured debt ratings on Canada-based packaged software company, Corel Corp. DRESSER INC: S&P Affirms B Rating on Likely Debt Leverage Cut ------------------------------------------------------------- Standard and Poor's Ratings Services affirmed its 'B' corporate credit rating on Dresser Inc., based on the expectation that the company's debt leverage will improve, following its acquisition, to levels consistent with the ratings over the medium term. The outlook is negative. At the same time, the ratings on Dresser were removed from CreditWatch with developing implications, where they were placed on March 12, 2007. Standard & Poor's also assigned its 'B' rating and '2' recovery rating (indicating the expectation of substantial (80%-100%) recovery of principal in the event of a payment default) to Dresser's proposed US$1.3 billion first-lien bank facilities, and its 'CCC+' rating and '5' recovery rating (indicating the expectation of negligible (0%-25%) recovery of principal in the event of a payment default) to Dresser's proposed US$750 million second-lien bank facilities. On March 12, 2007, private equity firms Riverstone Holdings LLC, First Reserve Corp., and Lehman Brothers Co-Investment Partners announced that they had signed an agreement to purchase Dresser. The purchase is being financed with US$1.15 billion of first- lien debt, US$750 million of second-lien debt, and US$500 million in equity from the financial sponsors. The US$150 million revolver will remain undrawn as of closing, although it will be used to support approximately US$56 million of outstanding LOCs. At the close of the transaction, debt to 2006 EBITDA is expected to be in excess of 7.5x, which is weak for the rating. Pro forma for the transaction, Dresser will have US$2.13 billion in debt, adjusted for operating leases and postretirement benefit obligations. "The ratings on Dresser reflect concerns associated with its highly leveraged financial profile, marginal fixed-charge coverage, and ongoing accounting issues," said Standard & Poor's credit analyst Aniki Saha-Yannopoulos. "These weaknesses are only partially offset by its well-established and diverse product offerings and by the large aftermarket services component of its revenues," Ms. Saha-Yannopoulos continued. The outlook is negative. The marginal credit measures make Dresser susceptible to a downgrade in case of any operational setbacks or if financial performance deteriorates. In addition, Standard & Poor's has lingering concerns about unresolved financial controls and reporting issues that weigh on the ratings. An outlook revision to stable is contingent on improved credit measures, decreased leverage, and audited financial statements. Based in Addison, Texas, Dresser, Inc. -- http://www.dresser.com/-- designs, manufactures and markets equipment and services sold primarily to customers in the flow control, measurement systems, and compression and power systems segments of the energy industry. The company has a comprehensive global presence, with over 8,500 employees and a sales presence in over 100 countries worldwide including Brazil, Mexico and Puerto Rico. GLOBO COMUNICACAO: Moody's Puts Ba1 Rating on US$200-Mil. Notes --------------------------------------------------------------- Moody's Investors Service assigned a Ba1 foreign currency rating to Globo Comunicacao e Participacoes S.A.'s proposed US$200 million senior unsecured notes due in 2022. The proposed notes will be issued by Globo Comunicacao and the proceeds will be entirely used to refinance existing debt. Globo Comunicacao's existing global local currency scale corporate family rating was affirmed at Ba1. The rating outlook is stable. The Ba1 foreign currency rating for the proposed bonds reflects the Ba1 global local currency corporate family rating of Globo Comunicacao, in addition to incorporating the probability of a sovereign foreign currency default implied by the government's Ba2 foreign currency rating and the likelihood that, in the event of such a default, the government would impose a general foreign currency payments moratorium. "Moody's regards Globo Comunicacao's proposed issuance of these US$200 million notes due in 2022 and its plans to use the entire proceeds to refinance existing debt as an additional step in strengthening Globo Comunicacao's already very comfortable liquidity profile," Moody's analyst Soummo Mukherjee said. Headquartered in Rio de Janeiro, Globo Comunicacao e Partipacoes S.A. is Brazil's largest media group, owned by the Marinho family. TV Globo is Brazil's leading broadcast TV network, accounting for over 75% of Globo Comunicacao's net revenues and comprised of five television stations owned by Globo Comunicacao as well as 116 independent affiliated TV stations broadcasting the Globo Comunicacao signal over Brazil. Globo Comunicacao has other business activities including: sound-recording, magazine publishing and printing, pay-TV production and programming, and interests in Brazil's leading satellite direct-to-home and cable operator. GLOBO COMUNICACAO: S&P Puts BB Rating on US$200-Million Notes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' senior unsecured debt rating to Globo Comunicacao e Participacoes S.A.'s proposed 15-year, US$200 million senior unsecured notes due 2022. At the same time, Standard & Poor's affirmed its 'BB' corporate credit rating on the company. The outlook remains stable. Globo Comunicacao's total debt outstanding amounted to approximately US$718 million (adjusted for pension liabilities of about US$31 million) at Dec. 31, 2006. Proceeds from the new notes will be applied for the redemption of part of outstanding real-denominated loans of the company. "The notes will be callable in five years at Globo's sole discretion and will be subject to restrictive covenants customary to this type of transaction, including limitations on liens," said Standard & Poor's credit analyst Beatriz Degani. The notes will rank equally in right of payment with all of the company's senior unsecured obligations, but will be effectively subordinated to Globo Comunicacao's secured debt obligations (mostly its Distel loan, which amounted to BRL200 million at Dec. 31, 2006). However, the amount of secured debt is not relevant to place unsecured lenders in a materially disadvantaged position because priority debt represents less than 5% of the company's adjusted total assets. The ratings on Globo Comunicacao remain constrained by its business concentration, with high dependence on the cyclical Brazilian advertising market, and the company's limited ability to cushion market down-cycles and competitive pressures, mostly due to its significant fixed cost structure. In addition, the lack of clearly articulated policies regarding financial and investment targets introduces uncertainty. On the other hand, the ratings are supported by Globo Comunicacao's clearly dominant position in free-to-air TV in Brazil, prompted by a high-quality and well-structured programming schedule with considerable levels of self-produced content; a leading position in the production of local-language pay-TV content; and, since 2005, the company's prudent debt management policy. The stable outlook reflects Standard & Poor's expectation that Globo Comunicacao will retain its dominant position in free-to- air TV and content production in Brazil, and its high audience and ad spending shares despite increasing competition from other free-to-air channels and emerging media channels. The stable outlook also reflects our expectation that Globo Comunicacao will maintain low levels of indebtedness, reflected by a minimal funds from operations-to-total debt ratio of 50%, and a total debt-to-EBITDA ratio of about 1.0x. A positive change to the ratings would depend on Globo Comunicacao's ability to consistently deliver good operational and financial performance reported throughout 2006. In addition, the company would have to maintain favorable conditions in the Brazilian advertising market, as well as the factors that affect its performance, such as the purchasing power and confidence level of large companies. A more diversified revenue base that reduced its dependence on advertising revenues could also be positive for the ratings. The lack of clearly articulated financial policies and the uncertainties about the company's future investments -- in the context of the significant free operating cash flow generation estimated for the future -- are other concerns we would need to resolve before considering a positive change to the rating or outlook. The ratings could come under pressure in the event of a severe economic downturn that resulted in a significant decrease in advertising revenues, or if competitive pressures began to significantly affect the company's operating margins and capacity to generate cash flows. Headquartered in Rio de Janeiro, Globo Comunicacao e Partipacoes S.A. is Brazil's largest media group, owned by the Marinho family. TV Globo is Brazil's leading broadcast TV network, accounting for over 75% of Globo Comunicacao's net revenues and comprised of five television stations owned by Globo Comunicacao as well as 116 independent affiliated TV stations broadcasting the Globo Comunicacao signal over Brazil. Globo Comunicacao has other business activities including: sound-recording, magazine publishing and printing, pay-TV production and programming, and interests in Brazil's leading satellite direct-to-home and cable operator. MACDERMID INC: Shareholders Okay Merger with Matrix Acquisition --------------------------------------------------------------- MacDermid Inc.'s shareholders, voting at a special meeting on April 12, have approved the company's previously announced merger with Matrix Acquisition, an acquisition vehicle formed by an investor group led by Court Square Capital Partners II, L.P., Weston Presidio V, L.P. and Daniel H. Leever for purposes of completing the merger. Following the shareholder approval of the merger, the parties filed a certificate of merger with the Connecticut Secretary of State to consummate the merger. Pursuant to the terms of the merger, each of the MacDermid's outstanding shares of common stock, without par value, have been converted into the right to receive US$35.00 in cash per share. MacDermid has appointed The Bank of New York as the agent for payment of the merger consideration. MacDermid anticipates that the paying agent will contact shareholders soon with instructions on how to receive payment for the shares. Accordingly, shares of MacDermid's common stock will no longer trade on the New York Stock Exchange. In connection with the closing of the merger, Matrix Acquisition also announced that it has accepted for purchase approximately US$298,830,000 aggregate principal amount of the MacDermid's 9-1/8% Senior Subordinated Notes due 2011 that were validly tendered pursuant to Matrix Acquisition's previously announced cash tender offer and solicitation of consents, representing approximately 99% of the notes outstanding. The tender offer is scheduled to expire at 5:00 p.m., New York City time, on April 17, 2007. The settlement of the purchase of such notes occurred concurrently with the closing of the merger. Also in connection with the closing of the merger, Matrix Acquisition sold US$350,000,000 in aggregate principal amount of 9-1/2% senior subordinated notes due 2017 or the new notes in a private offering. The new notes have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. MacDermid Inc. (NYSE:MRD)-- http://www.macdermid.com/-- is manufacturer of a broad line of chemicals and related equipment for a range of applications, including metal and plastic finishing, electronics, graphic arts and printing, and offshore drilling. The company maintains its headquarters in Denver, Colorado, but operates facilities worldwide, including Brazil, China, Germany, Italy, and Japan. Revenues for the twelve months ended June 30, 2006, were US$797 million. * * * As reported in the Troubled Company Reporter-Latin America on March 21, 2007, Standard & Poor's Ratings Services affirmed its bank loan and recovery ratings on MacDermid Inc.'s proposed senior secured credit facilities, following the announcement that the company will increase the term loan principal amount to the US dollar equivalent of US$610 million. The proposed term loan will now have both a US$360 million tranche and a EUR250 million tranche. The secured loan rating is 'B+' (one notch higher than the expected corporate credit rating) and the recovery rating is a '1', indicating the expectation for full (100%) recovery of principal in the event of a payment default. Moody's Investors Service affirmed MacDermid, Inc.'s B2 corporate family rating and revised the loss given default or LGD assessments and LGD rates on MacDermid's proposed debt to reflect a revision to the company's proposed debt financings. Proceeds from the new debt offerings combined with private equity investments from funds managed by Court Square Capital Partners and Weston Presidio, along with an investment from MacDermid Chief Executive Officer Daniel Leever, and management will be used to purchase all of MacDermid's outstanding stock in a transaction valued at approximately US$1.3 billion. The ratings outlook remains stable. Actions taken by Moody's on MacDermid: Ratings affirmed: -- Corporate family rating at B2 -- Probability of default rating at B2 -- US$50 million Gtd. senior secured revolving credit facility due 2013 -- B1, LGD3, 34% -- US$360 million Gtd. senior secured term loan due 2014 at B1, LGD3, 34% -- Euro Gtd. senior secured term loan due 2014 at B1, LGD3, 34% -- US$350 million Gtd. senior subordinated notes due 2017 at Caa1, LGD5, 87% Ratings withdrawn: -- US$250 million Gtd. senior unsecured notes due 2014-2015 - WR PETROLEO BRASILEIRO: Hires Skanska to Build Propane-Making Unit --------------------------------------------------------------- Petroleo Brasileiro SA has awarded a contract to build a propane production unit at Presidente Getulio Vargas Refinery or REPAR in Brazil to Skanska. The total contract value is US$109 Million. Skanska's share is 70 percent, US$76.3 million, or about SEK535 million, which will be included in order bookings for the second quarter of 2007. The work relates to the construction of a propane unit with the capacity to produce 180,000 tons per year. The scope of the contract includes detailed engineering, procurement, civil and electromechanical construction and assembly, commissioning and start-up assistance of the plant. The refinery is located near Curitiba in the south of Brazil. The project will start immediately and is scheduled for completion in 25 months. The partner in the consortium is the Brazilian engineering company Engevix. Skanska Latin America has extensive experience in refinery works and in the last two years has carried out major similar projects for the same client at some of the most important refineries in Brazil, such as REFAP and REDUC. Skanska Latin America is one of the continent's leading construction companies and one of Skanska's most profitable units. Operations focus primarily on construction, operations and services for the international energy industry. In 2006, the company had some 11,000 employees and sales of SEK3.7 billion. About Skanska Skanska is one of the world's leading construction groups with expertise in construction, development of commercial and residential projects and public-private partnerships. The group currently has 56,000 employees in selected home markets in Europe, in the US and Latin America. Headquartered in Stockholm, Sweden and listed on the Stockholm Stock Exchange, Skanska's sales in 2006 totaled US$17 billion. About Petroleo Brasileiro SA 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: May Purchase Tankers to Aid Ethanol Export --------------------------------------------------------------- Brazil's state-run oil firm, Petroleo Brasileiro SA, in response to rising ethanol demands, may purchase tankers in its bid to hike foreign sales of the biofuel, Jeb Blount at Bloomberg News says. As previously disclosed, the state-run company plans to build 42 oil tankers to transform Petroleo Brasileiro from an importer into an energy exporter. Also, Brazil is executing a plan to build 26 tankers for US$130 million to revive the country's shipbuilding industry. "We have the land, the sun and the water to become the Saudi Arabia of ethanol," Sergio Machado, the head of Petrobras' unit Transpetro, told Bloomberg in an interview. "We need to have our own ships to export our output too." According to Bloomberg, Mr. Machado expects the first ethanol tanker to be built by 2011. 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: Must Follow Government's Development Scheme ---------------------------------------------------------------- Brazilian President Luiz Inacio Lula da Silva said that the country's state-owned oil company Petroleo Brasileiro SA must follow the government's development strategy, Business News Americas reports. President Lula da Silva told BNamericas that Petroleo Brasileiro should concentrate on social issues and not solely on profits. BNamericas relates that President Lula da Silva said in a ceremony for Petroleo Brasileiro unit Transpetro, "It's not about dictating rules to Petrobras [Petroleo Brasileiro]. It's about saying Petrobras is controlled by the Brazilian government and the company needs to fit in a strategy to develop the country, while respecting its specific interests." Banco do Brasil Investimentos market analyst Nelson Rodrigues de Matos told BNamericas, "President Lula always said he would use Petrobras as a platform for his government's policies. Petrobras has always had the pros and cons of being a state- owned company." According to BNamericas, the president's statement worried the private sector and some market analysts. Brokerage Brascan Corretora market analyst Felipe Cunha commented to BNamericas, "Lula's statement was worrying because we cannot say how much his government's policy of purchasing the maximum amount of Brazilian-made equipment for Petrobras is going to cost the company. It's also worrying that Lula wants to use Petrobras as an instrument for Brazil's economic development." The Brazilian government should act directly to encourage the naval construction sector and not use Petroleo Brasileiro as a vehicle to do so as the company has minority shareholders. The government has to change the tax structure for fuels instead of squeezing Petroleo Brasileiro's refining margins, BNamericas states, citing Mr. Rodrigues de Matos. 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: Proposes LatAm Gas Pipeline to Hike Exports ---------------------------------------------------------------- Brazil's state-run oil firm, Petroleo Brasileiro SA, is studying a plan for the construction of a network of gas pipelines that would link South American countries -- in a bid to reduce costs and increase exports, Bloomberg News reports. Based on the company's initial plan, it would begin by extending pipelines in the southern half of the region, Bloomberg relates, citing Chief Executive Ildo Sauer. A 50 million-cubic-meter-a- day pipeline, twice the size of the Bolivia-Brazil gas pipeline, would be constructed starting in 2010 to link the region with Venezuelan gas fields, Bloomberg says. Brazil has been promoting the use of natural gas and biofuels as substitutes for crude. "We envision an integrated pipeline system like those in North America and Europe," Mr. Sauer told Bloomberg in an interview. "By increasing our regional use of gas we can increase our exports of oil and substitute a cleaner and cheaper fuel for existing sources." The project is expected to cost US$20 billion, the same report says. Studies being made will include environmental issues and rising costs. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ -- 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. SANMINA-SCI: May Miss 2nd Qtr. Revenue Target Due to Low Demand --------------------------------------------------------------- Sanmina-SCI Corporation disclosed that for its second quarter ended March 31, 2007, the company expects to report revenue of approximately US$2.6 billion compared to previously provided guidance of US$2.65-US$2.75 billion. The company is not in a position to provide an update to earnings for the quarter ended March 31, 2007 at this time. However, with the decline in revenue, the company expects non- GAAP earnings per share to be below its previously provided guidance. Full financial results will be provided during the company's regularly scheduled earnings call on Tuesday, April 24. "The second quarter has historically been a seasonally weak quarter for us, but we experienced even greater weakness in demand over the last two to three weeks," Jure Sola, Chairman and Chief Executive Officer, stated. "The majority of this softness was in the communications and high-end computing end- markets, while the rest of the markets delivered to our expectations. We believe this weakness will be short-term and that the business should improve in the second half of 2007." For the quarter ended March 31, the company anticipates reporting a decrease in inventory of at least US$90 million and an increase in cash and cash equivalent of at least US$100 million. About Sanmina-SCI Corp. Headquartered in San Jose, California, Sanmina-SCI Corporation (NasdaqGS: SANM) -- http://www.sanmina-sci.com/-- is a Electronics Manufacturing Services (EMS) provider focused on delivering complete end-to-end manufacturing solutions to technology companies around the world. Service offerings include product design and engineering, test solutions, manufacturing, logistics and post-manufacturing repair/warranty services. The company operates in Brazil, Mexico, Finland, Hungary, among others. * * * As reported in the Troubled Company Reporter on Feb. 16, 2007, Standard & Poor's Ratings Services removed its ratings for San Jose, California-based Sanmina-SCI Corp. from CreditWatch, where they were placed on Aug. 14, 2006. The corporate credit and senior unsecured ratings were lowered to 'B+' from 'BB-'; the subordinated debt rating was lowered to 'B-' from 'B'. S&P said the outlook is stable. TAM CAPITAL: Fitch Assigns BB rating on US$200-Million Issuance --------------------------------------------------------------- Fitch Ratings has assigned a 'BB' rating on by TAM Capital Inc.'s proposed issuance of US$200 million of senior guaranteed notes due 2017. The notes are unconditionally guaranteed by TAM Linhas and TAM S.A. Proceeds from the offering will be, primarily, to finance fleet renewal and expansion, with the remainder used for general corporate purposes. Fitch has Foreign and Local Currency Issuer Default Ratings on TAM of 'BB' and a national scale rating of 'A+(bra)' on the issuer and on TAM's BRL500 million senior unsecured debentures due 2012. The Rating Outlook on all corporate ratings is Stable. The ratings reflect the company's market-leading position in the Brazilian air passenger transportation sector, adequate leverage indicators and positive free cash flow generation. The ratings also reflect exposure to fluctuations in jet fuel prices and exchange rates, the strong correlation of TAM's activities with the performance of the domestic economy, high operating leverage and competitive threats. The ratings incorporate the company's fleet expansion plans and intention to maintain conservative leverage ratios. Over the past several years, revenues have grown strongly, operating margins have improved and the company has maintained positive cash generation. During 2006, the number of passengers transported by TAM increased by 28% and the load factor reached 74%, well above the break-even load factor of 64%. Net revenues grew 30% due to strong growth in the number of passenger- kilometers transported or RPK of 33% and seats supply or ASK of 27%, which was supported by the expansion of the fleet, higher average flight length, greater capacity utilization rate and more frequencies. Free cash flow generation reached BRL557 million. TAM continues to improve operating profitability, enhancing its cost structure by raising capacity utilization, operating newer aircraft with lower maintenance costs and fuel consumption and reducing commercial and overhead expenses. The RASK (revenue per available seat kilometer) - CASK (cost per available seat kilometer) spread improved to BRL2.8 in 2006 from BRL1.5 in 2005. During 2006, cash generation measured by EBITDAR reached BRL1.7 billion, a significant growth of 52% from the prior year, and the EBITDAR margin reached 23%, among the highest in the airline industry worldwide. TAM's financial profile and credit protection measures continue to improve from strong cash flow generation. At Dec. 31, 2006, total adjusted debt to EBITDAR reached 3.7x and total adjusted debt net of cash to EBITDAR reached 2.3x. Over the next several years, Fitch Ratings expects these ratios to deteriorate moderately as a result of the anticipated incorporation to TAM's fleet of 37 new aircraft by 2010 but should remain commensurate with the existing rating category. Total adjusted debt to EBITDAR should range between 3.5x and 4.5x over the next several years as higher debt related to the company's expansion plan is offset by expected increases in EBITDAR. TAM maintains a solid liquidity position, with BLR2.4 billion of cash and marketable securities at the end of 2006. At Dec. 31, 2006, total adjusted debt reached BRL6.3 billion, which includes BRL568 million of debentures and approximately BRL683 million of capital leases and working capital debt. The company also has off-balance-sheet liabilities related to aircraft operating leases, which totaled BRL5.1 billion at Dec. 31, 2006. The entire aircraft fleet is leased. In recent months, the Brazilian airline sector has been affected by a structural crisis related to infrastructure bottlenecks, which caused flight cancellations and delays well above normal levels, affecting all domestic airlines' performance and raising uncertainties regarding the sector's ability to continue to grow capacity. The crisis made clear the need for government investments in infrastructure and improved efficiency on behalf of the airlines. As Fitch anticipated, TAM showed deterioration in profitability during the fourth quarter of 2006, as it incurred incremental costs such as extra passenger and aircraft ground time expenses. Nevertheless, for the full year, the company posted record financial results. During 2007, Fitch understands that the scenario will remain relatively unstable, considering that the necessary investments for improving infrastructure are expected in the long-term. However, even under these turbulent conditions, the Brazilian airline market has grown significantly during the first quarter of 2007, by approximately 12% according to ANAC or Agencia Nacional de Aviacao Civil. In Fitch's opinion, TAM's solid financial profile and cash resources should help mitigate short-term risks and volatility related to domestic sector turbulence. Over the next several years, TAM will face new challenges to maintain market leadership in a strongly competitive environment, TAM's main competitor, GOL Linhas Aereas S.A., cost-efficient operator, recently announced a agreement to acquire VRG S.A., which operates the brand name Varig and owns a significant number of slots in the most important domestic airport, Congonhas, where TAM has an important presence and market share participation. An increase in competition resulting from supply pressures and aggressive fare discounting, coupled with lower aircraft load factors, would inevitably impact the strong credit profile of the Brazilian airline companies. About TAM S.A. TAM S.A. (NYSE: TAM) is a holding company that operates through its subsidiaries TAM Linhas Aereas and TAM Mercosur. The company offers regular air passenger transportation services in Brazil and abroad. It covers the entire territory of Brazil, serving 48 national destinations directly and an additional 26 destinations through regional alliances with other airline companies. TAM also serves 11 international destinations and offers connections to several cities outside Brazil through agreements with American Airlines and Air France. About TAM Capital Inc. TAM Capital Inc. is a wholly owned financing vehicle of TAM Linhas Aereas S.A. TAM Capital is a Cayman Islands' incorporated, limited liability company. TAM CAPITAL: S&P Puts BB- Rating on US$200 Mil. Guaranteed Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' rating to the US$200 million Senior Guaranteed Notes due 2017 to be issued by TAM Capital Inc. The debt at TAM Capital will be unconditionally and irrevocably guaranteed by TAM and its operating subsidiary TAM Linhas Aereas S.A. (unrated). TAM Capital Inc. is a wholly-owned subsidiary of TAM Linhas Aereas S.A. TAM reported adjusted total debt, including operating leases, of US$2.1 billion as of Dec. 31, 2006. The rating on the Senior Guaranteed Notes is one notch lower than the corporate credit rating assigned to TAM to reflect effective subordination of unsecured creditors to secured obligations. Under Standard & Poor's criteria, operating leases and other aircraft financing are assumed to be senior secured obligations with priority of payment relative to other unsecured debt. As of Dec. 31, 2006, TAM reported approximately US$1.48 billion as the estimated net present value of its future operating lease payments. The 'BB' long-term corporate credit rating on TAM reflects its exposure to the cyclical, price-competitive, and capital- intensive airline industry. Its profile is somewhat leveraged, despite recent improvement, due to competition with low-cost carrier GOL Linhas Aereas Inteligentes S.A. (unrated), some cost exposure to exchange risk and volatile fuel prices -- although these risk are declining with hedge policies and increasing revenues from international routes, and dependence on the overall economic and operating environment in its home market of Brazil. These negatives are partly offset by TAM's sound market share and growing position in the fairly concentrated Brazilian airline industry, a business model based on product differentiation, highly efficient and cost-competitive operations, and our expectations that the company's financial profile will continue improving in the medium term, while sustaining strong liquidity. TAM is the largest airline in Brazil. Standard & Poor's believe TAM will continue narrowing the cost gap with Gol Linhas by improving efficiency. The company's credit measures are adjusted to factor the capitalization of operating leases -- all aircraft used by TAM are currently rented, adding approximately US$1.48 billion in debts as of Dec. 31, 2006. About TAM S.A. TAM S.A. (NYSE: TAM) is a holding company that operates through its subsidiaries TAM Linhas Aereas and TAM Mercosur. The company offers regular air passenger transportation services in Brazil and abroad. It covers the entire territory of Brazil, serving 48 national destinations directly and an additional 26 destinations through regional alliances with other airline companies. TAM also serves 11 international destinations and offers connections to several cities outside Brazil through agreements with American Airlines and Air France. About TAM Capital Inc. TAM Capital Inc. is a wholly owned financing vehicle of TAM Linhas Aereas S.A. TAM Capital is a Cayman Islands' incorporated, limited liability company. TAM SA: Offers Senior Notes Due 2017 to Finance Fleet Upgrade ------------------------------------------------------------- TAM S.A. reported that TAM Linhas Aereas S.A. subsidiary, TAM Capital Inc., is offering senior notes due 2017 in an offering exempt from registration under the United States Securities Act of 1933, as amended. TAM and its subsidiary, TAM Linhas, will guarantee the notes. The notes will be senior unsecured debt obligations of TAM and are subject to optional redemption at a price that may include a make whole amount. The proceeds of the notes will be used primarily to finance fleet renewal and expansion and the remainder used for general corporate purposes. In connection with the notes, TAM capital will enter into a registration rights agreement providing that it will use its reasonable best efforts to file with the United States Securities and Exchange Commission and cause to become effective a registration statement relating to an offer to exchange the notes for an issue of registered notes with terms identical to the notes, except that the exchange notes will not be subject to restrictions on transfer or to any increase in annual interest rate as described in the agreement. About TAM S.A. TAM S.A. (NYSE: TAM) is a holding company that operates through its subsidiaries TAM Linhas Aereas and TAM Mercosur. The company offers regular air passenger transportation services in Brazil and abroad. It covers the entire territory of Brazil, serving 48 national destinations directly and an additional 26 destinations through regional alliances with other airline companies. TAM also serves 11 international destinations and offers connections to several cities outside Brazil through agreements with American Airlines and Air France. * * * Standard & Poor's Ratings Services recently assigned 'BB' long- term corporate credit rating on TAM S.A. Fitch Ratings also has assigned TAM S.A. a BB Foreign and Local Currency Issuer Default Ratings. Fitch also has assigned a national scale rating of 'A+(bra)' on the issuer and on TAM's BRL500 million senior unsecured debentures due 2012. In addition, Fitch has placed a 'BB' rating to the proposed issuance of US$200 million of senior guaranteed notes due 2017 by TAM Capital Inc., a wholly owned financing vehicle of TAM Linhas Aereas S.A., incorporated with limited liability in the Cayman Islands. The Rating Outlook on all corporate ratings is Stable. About TAM Capital Inc. TAM Capital Inc. is a wholly owned financing vehicle of TAM Linhas Aereas S.A. TAM Capital is a Cayman Islands' incorporated, limited liability company. * * * Standard & Poor's Ratings Services recently assigned its 'BB-' rating to the US$200 million Senior Guaranteed Notes due 2017 to be issued by TAM Capital Inc. Fitch Ratings also has assigned a 'BB' rating to the proposed issuance of US$200 million of senior guaranteed notes due 2017 by TAM Capital Inc. TAM SA: Fitch Assigns BB Foreign & Local Currency Issuer Ratings ---------------------------------------------------------------- Fitch Ratings has assigned TAM S.A. a BB Foreign and Local Currency Issuer Default Ratings. Fitch also has assigned a national scale rating of 'A+(bra)' on the issuer and on TAM's BRL500 million senior unsecured debentures due 2012. In addition, Fitch has placed a 'BB' rating to the proposed issuance of US$200 million of senior guaranteed notes due 2017 by TAM Capital Inc., a wholly owned financing vehicle of TAM Linhas Aereas S.A., incorporated with limited liability in the Cayman Islands. The Rating Outlook on all corporate ratings is Stable. The US$200 million notes are unconditionally guaranteed by TAM Linhas and TAM S.A. Proceeds from the offering will be, primarily, to finance fleet renewal and expansion, with the remainder used for general corporate purposes. The ratings reflect the company's market-leading position in the Brazilian air passenger transportation sector, adequate leverage indicators and positive free cash flow generation. The ratings also reflect exposure to fluctuations in jet fuel prices and exchange rates, the strong correlation of TAM's activities with the performance of the domestic economy, high operating leverage and competitive threats. The ratings incorporate the company's fleet expansion plans and intention to maintain conservative leverage ratios. Over the past several years, revenues have grown strongly, operating margins have improved and the company has maintained positive cash generation. During 2006, the number of passengers transported by TAM increased by 28% and the load factor reached 74%, well above the break-even load factor of 64%. Net revenues grew 30% due to strong growth in the number of passenger- kilometers transported or RPK of 33% and seats supply or ASK of 27%, which was supported by the expansion of the fleet, higher average flight length, greater capacity utilization rate and more frequencies. Free cash flow generation reached BRL557 million. TAM continues to improve operating profitability, enhancing its cost structure by raising capacity utilization, operating newer aircraft with lower maintenance costs and fuel consumption and reducing commercial and overhead expenses. The RASK (revenue per available seat kilometer) - CASK (cost per available seat kilometer) spread improved to BRL2.8 in 2006 from BRL1.5 in 2005. During 2006, cash generation measured by EBITDAR reached BRL1.7 billion, a significant growth of 52% from the prior year, and the EBITDAR margin reached 23%, among the highest in the airline industry worldwide. TAM's financial profile and credit protection measures continue to improve from strong cash flow generation. At Dec. 31, 2006, total adjusted debt to EBITDAR reached 3.7x and total adjusted debt net of cash to EBITDAR reached 2.3x. Over the next several years, Fitch Ratings expects these ratios to deteriorate moderately as a result of the anticipated incorporation to TAM's fleet of 37 new aircraft by 2010 but should remain commensurate with the existing rating category. Total adjusted debt to EBITDAR should range between 3.5x and 4.5x over the next several years as higher debt related to the company's expansion plan is offset by expected increases in EBITDAR. TAM maintains a solid liquidity position, with BLR2.4 billion of cash and marketable securities at the end of 2006. At Dec. 31, 2006, total adjusted debt reached BRL6.3 billion, which includes BRL568 million of debentures and approximately BRL683 million of capital leases and working capital debt. The company also has off-balance-sheet liabilities related to aircraft operating leases, which totaled BRL5.1 billion at Dec. 31, 2006. The entire aircraft fleet is leased. In recent months, the Brazilian airline sector has been affected by a structural crisis related to infrastructure bottlenecks, which caused flight cancellations and delays well above normal levels, affecting all domestic airlines' performance and raising uncertainties regarding the sector's ability to continue to grow capacity. The crisis made clear the need for government investments in infrastructure and improved efficiency on behalf of the airlines. As Fitch anticipated, TAM showed deterioration in profitability during the fourth quarter of 2006, as it incurred incremental costs such as extra passenger and aircraft ground time expenses. Nevertheless, for the full year, the company posted record financial results. During 2007, Fitch understands that the scenario will remain relatively unstable, considering that the necessary investments for improving infrastructure are expected in the long-term. However, even under these turbulent conditions, the Brazilian airline market has grown significantly during the first quarter of 2007, by approximately 12% according to ANAC or Agencia Nacional de Aviacao Civil. In Fitch's opinion, TAM's solid financial profile and cash resources should help mitigate short-term risks and volatility related to domestic sector turbulence. Over the next several years, TAM will face new challenges to maintain market leadership in a strongly competitive environment, TAM's main competitor, GOL Linhas Aereas S.A., cost-efficient operator, recently announced a agreement to acquire VRG S.A., which operates the brand name Varig and owns a significant number of slots in the most important domestic airport, Congonhas, where TAM has an important presence and market share participation. An increase in competition resulting from supply pressures and aggressive fare discounting, coupled with lower aircraft load factors, would inevitably impact the strong credit profile of the Brazilian airline companies. About TAM S.A. TAM S.A. (NYSE: TAM) is a holding company that operates through its subsidiaries TAM Linhas Aereas and TAM Mercosur. The company offers regular air passenger transportation services in Brazil and abroad. It covers the entire territory of Brazil, serving 48 national destinations directly and an additional 26 destinations through regional alliances with other airline companies. TAM also serves 11 international destinations and offers connections to several cities outside Brazil through agreements with American Airlines and Air France. TAM SA: S&P Assigns BB Long-Term Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services assigned 'BB' long-term corporate credit rating on TAM S.A. Standard & Poor's also assigned its 'BB-' rating to the US$200 million Senior Guaranteed Notes due 2017 to be issued by TAM Capital Inc. The debt at TAM Capital will be unconditionally and irrevocably guaranteed by TAM and its operating subsidiary TAM Linhas Aereas S.A. (unrated). TAM reported adjusted total debt, including operating leases, of US$2.1 billion as of Dec. 31, 2006. The 'BB' long-term corporate credit rating on TAM reflects its exposure to the cyclical, price-competitive, and capital- intensive airline industry. Its profile is somewhat leveraged, despite recent improvement, due to competition with low-cost carrier GOL Linhas Aereas Inteligentes S.A. (unrated), some cost exposure to exchange risk and volatile fuel prices -- although these risk are declining with hedge policies and increasing revenues from international routes, and dependence on the overall economic and operating environment in its home market of Brazil. These negatives are partly offset by TAM's sound market share and growing position in the fairly concentrated Brazilian airline industry, a business model based on product differentiation, highly efficient and cost-competitive operations, and our expectations that the company's financial profile will continue improving in the medium term, while sustaining strong liquidity. The rating on the Senior Guaranteed Notes is one notch lower than the corporate credit rating assigned to TAM to reflect effective subordination of unsecured creditors to secured obligations. Under Standard & Poor's criteria, operating leases and other aircraft financing are assumed to be senior secured obligations with priority of payment relative to other unsecured debt. As of Dec. 31, 2006, TAM reported approximately US$1.48 billion as the estimated net present value of its future operating lease payments. TAM is the largest airline in Brazil. Standard & Poor's believe TAM will continue narrowing the cost gap with Gol Linhas by improving efficiency. The company's credit measures are adjusted to factor the capitalization of operating leases -- all aircraft used by TAM are currently rented, adding approximately US$1.48 billion in debts as of Dec. 31, 2006. About TAM S.A. TAM S.A. (NYSE: TAM) is a holding company that operates through its subsidiaries TAM Linhas Aereas and TAM Mercosur. The company offers regular air passenger transportation services in Brazil and abroad. It covers the entire territory of Brazil, serving 48 national destinations directly and an additional 26 destinations through regional alliances with other airline companies. TAM also serves 11 international destinations and offers connections to several cities outside Brazil through agreements with American Airlines and Air France. TELE NORTE: Shareholders Okay BRL600-Million Interest on Capital ---------------------------------------------------------------- Tele Norte Leste Participacoes SA's shareholders have approved the management's proposal of appropriation of Interest on Capital -- IOC -- throughout the fiscal year of 2007, for a total amount not to exceed BRL600 million. The IOC declarations shall be announced by the Company's management throughout the present year. It has been clarified that the sum effectively credited to the shareholders as IOC will be imputed to the dividends that shall be distributed referring to the fiscal year of 2007. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA (NYSE: TNE) -- http://www.telemar.com.br-- provides fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As reported in the Troubled Company Reporter on Feb. 5, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Brazil-based telecom service providers Tele Norte Leste Participacoes SA and Telemar Norte Leste SA, jointly referred to as Telemar, to 'BB+' from 'BB'. At the same time, Standard and Poor's revised its ratings on the combined BRL300 million outstanding local debentures of Telemar Participacoes SA in Brazil National Scale to 'brAA-' from 'brA+', and assigned o 'brAA-' rating to TmarPart's proposed five-year BRL$250 million debentures. TELE NORTE: Shareholders Approve Stock Option Plan -------------------------------------------------- Tele Norte Leste Participacoes SA disclosed that during the General Shareholders' Meeting last week, its shareholders approved the proposal for the Stock Option Plan of the company. In addition, the shareholders approved payment in the total amount of BRL330 million, referring to the Fiscal Year of 2006, being BRL30 million as dividends and BRL300 million as interest on capital. The initial payment date in Brazil will be April 20, 2007: 1. Dividend per common or preferred share (ADR): BRL$0.0789. 2. Interest on Capital per common or preferred share (ADR): BRL0.7895. 3. Accrued Interest and Taxes: The dividends and interest on capital amounts will be remunerated based on the TR -- Taxa Referencial -- rate, from Jan. 1 until April 20, 2007. The amount indicated above is subject to withholding taxes, in accordance with Brazilian Law (Nos. 9245/95 and 9249/95). The shares (ADRs) will start trading ex-dividends as of April 12, 2007. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA (NYSE: TNE) -- http://www.telemar.com.br-- provides fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As reported in the Troubled Company Reporter on Feb. 5, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Brazil-based telecom service providers Tele Norte Leste Participacoes SA and Telemar Norte Leste SA, jointly referred to as Telemar, to 'BB+' from 'BB'. At the same time, Standard and Poor's revised its ratings on the combined BRL300 million outstanding local debentures of Telemar Participacoes SA in Brazil National Scale to 'brAA-' from 'brA+', and assigned o 'brAA-' rating to TmarPart's proposed five-year BRL$250 million debentures. TELE NORTE: S&P Says Buyout Threat Has No Effect on Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services maintained that the corporate credit ratings on Tele Norte Leste Participacoes S.A. or TNL (BB+/Stable/--), Telemar Norte Leste S.A. or TMAR (BB+/Stable/--), and the ratings on the local debentures of Telemar Participacoes S.A. or TmarPart are not immediately affected by TmarPart's decision to appraise a proposal for the acquisition of all TNL and TMAR's outstanding nonvoting shares. Standard & Poor's expects a decision to be announced after a board meeting on April 20, 2007. If the proposal is validated by TmarPart's board of directors, Standard & Poor's will place the ratings on all aforementioned entities on CreditWatch Negative to reflect the likely negative impact on the ratings from the potentially significant increase in debt levels at TmarPart, which would also represent a significant increase in contingent liabilities for TNL and TMAR. Should the transaction be approved, completed as proposed, and fully accepted by nonvoting shareholders of TNL and TMAR, TmarPart would have to disburse about BRL11 billion (about US$5.5 billion) to complete the deal. Telemar entities' consolidated total debt amounted to about US$4.6 billion at Dec. 31, 2006. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. TOWER AUTOMOTIVE: Court Approves US$1-Billion Sale to Cerberus -------------------------------------------------------------- The Hon. Allen Gropper of the United States Bankruptcy Court for the Southern District of New York has authorized Tower Automotive Inc. and its debtor-affiliates to sell substantially all of their assets for roughly US$1,000,000,000 to Cerberus Capital Management, L.P., subject to higher and better bids, Christopher Scinta at Bloomberg News reports. Judge Gropper said the terms of the deal allow competitive bidding on the company and provide only "modest" protections to Cerberus in the event a rival bidder makes a better offer for Tower's assets, according to The Associated Press. The AP says an auction will be held June 25, 2007, if higher and better bids are received. Competing bids are due June 20. As previously reported, Cerberus will be reimbursed for up to $4 million in expenses and paid a US$10 million breakup fee if the Debtors consummate a sale with a rival bidder. "The circumstances that would trigger the fee were substantially limited through recent negotiations with creditors, making it easier for other investors to bid against Cerberus," Anup Sathy, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, counsel for the Debtors, said, according to Bloomberg. The Official Committee of Unsecured Creditors supports the Cerberus bid. According to the report, Judge Gropper approved the proposed sale to Cerberus after the Debtors resolved the objections filed by: (a) Silver Point Capital Fund, L.P.; (b) Dune Capital Management LP and Caspian Capital Partners, LP; (c) the unions representing Milwaukee retirees; (d) the United Automobile, Aerospace, and Agricultural Implement Workers of America, AFL-CIO and the IUE, the Industrial Division of the Communication Workers of America, AFL-CIO; and (e) the Official Committee of Retired Employees Silver Point, as administrative agent for the lenders under a Credit Agreement dated May 24, 2004, among R.J. Tower Corporation, as the Borrower, and Tower Automotive, Inc. as the Parent Guarantor, objected to the Debtors' request to the extent it (i) provides any recovery to general unsecured creditors without the payment, in full and in cash, of any and all claims due under the Credit Agreement, which are entitled to priority senior to the claims of general unsecured creditors; (ii) authorizes the granting of a super priority administrative expense claim to Cerberus in violation of the Final DIP Order; or (iii) seeks to prime the claims of Silver Point and lenders under the Credit Agreement to proceeds from a transaction. Dune Capital and Caspian Capital, which holds secured second lien debt claims, objected to the Debtors' selection of Cerberus as stalking horse. Dune Capital and Caspian Capital said the process by which the Debtors did the selection was somehow flawed. The Milwaukee Unions and the Retirees Committee opposed the Debtors' request to the extent that it could be construed in any way to impact or impair their rights, or the rights of the retirees they represent, under the Debtors' prior settlements with the Unions and the Committee pursuant to Section 1114 of the Bankruptcy Code. The UAW and IUE CWA argued that to the extent any provision in the term sheet between the Debtors and Cerberus would result in inadequate value to satisfy the Debtors' obligations to Union- represented retirees, the ultimate terms would have to be adjusted to make it possible for the Debtors to file a confirmable Plan. Sale Won't Impair Parties' Rights The Debtors clarified that approval of the sale will not affect or impair any right, objection, remedy, settlement or claim of the Milwaukee Unions, the Retirees Committee, and the UAW and IUE-CWA, or any individual represented by these entities. The Debtors explained before the Court that they merely seek approval of procedures for a formal competitive bidding process carefully designed to maximize recoveries. Payment of claims will be addressed in the context of a confirmable Chapter 11 plan, the Debtors pointed out. They explained that the proposed sale does not seek to prime the claims of Silver Point and lenders under the Credit Agreement to proceeds from a transaction. Cerberus has also agreed that any super priority administrative claims to which it may be entitled under the Term Sheet are junior to the claims due under the Credit Agreement. The Debtors pointed out that the stalking horse selection process was fair and the process set forth in their request gives them their best chance to obtain the highest and best bid for their assets. Cerberus' bid was also the best choice for a stalking horse based on the value available for creditors, the limited circumstances under which a break-up fee and expense reimbursement could be paid, and the lack of a financing contingency, the Debtors explained. About Tower Automotive Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain, and Brazil. The Company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed US$787,948,000 in total assets and US$1,306,949,000 in total debts. The Debtors' exclusive period to file a chapter 11 plan of reorganization expired on March 30, 2007. The Debtors hope to file a chapter 11 plan by April 20, 2007. (Tower Automotive Bankruptcy News, Issue No. 58; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) TOWER AUTOMOTIVE: Exclusive Plan-Filing Period Extended to May 3 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York extended the period during which Tower Automotive Inc. and its debtor-affiliates may exclusively file a plan or plans of reorganization through and including May 3, 2007. The Debtors' exclusive right to solicit acceptances of the plan is extended through and including June 29. If by April 30, 2007, the Debtors have already filed a plan, the Exclusive Plan Filing Period will be automatically extended through and including June 6, without further Court order, Judge Gropper says. Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain, and Brazil. The Company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed US$787,948,000 in total assets and US$1,306,949,000 in total debts. The Debtors' exclusive period to file a chapter 11 plan of reorganization expired on March 30, 2007. The Debtors hope to file a chapter 11 plan by April 20, 2007. (Tower Automotive Bankruptcy News, Issue No. 58; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) TRW AUTOMOTIVE: Increases Consideration for Tender Offer -------------------------------------------------------- TRW Automotive Holdings Corp., through its subsidiary TRW Automotive Inc., disclosed that, in connection with the cash tender offers 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, it has increased the tender offer consideration for Notes tendered after March 23, 2007, to equal the amount paid to holders that tendered and did not withdraw Notes on or prior to the Consent Date. Additionally, the company has extended the expiration date for the tender offers to purchase the Notes from midnight, New York City time on April 6, 2007, to midnight, New York City time, on April 18, 2007, unless extended or earlier terminated. The additional consideration being offered applies to holders who tender after the Consent Date, but on or prior to the New Expiration Date. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 9-3/8% Senior Notes validly tendered during the Extended Offer Period has been increased from US$1,048.26 to US$1,078.26. The tender offer consideration, excluding accrued and unpaid interest, for each Euro 1,000 principal amount of 10-1/8% Senior Notes validly tendered during the Extended Offer Period has been increased from EUR1,066.69 to EUR1,096.69. The tender offer consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 11% Senior Subordinated Notes validly tendered during the Extended Offer Period has been increased from US$1,069.86 to US$1,099.86. The tender offer consideration, excluding accrued and unpaid interest, for each Euro 1,000 principal amount of 11-3/4% Senior Subordinated Notes validly tendered during the Extended Offer Period has been increased from Euro 1,088.44 to Euro 1,118.44. The company commenced the tender offers on March 12, 2007. Settlement for all Notes tendered during the Extended Offer Period is expected to occur promptly following the New Expiration Date. As of April 3, 2007, tenders and consents had been received with respect to US$820.8 million aggregate principal amount, or 99.4% of the total outstanding, of the 9-3/8% Senior Notes, Euro 120.5 million aggregate principal amount, or 92.7% of the total outstanding, of the 10-1/8% Senior Notes, US$189.2 million aggregate principal amount, or 97.0% of the total outstanding, of the 11% Senior Subordinated Notes, and EUR78.9 million aggregate principal amount, or 97.1% of the total outstanding, of the 11-3/4% Senior Subordinated Notes. On March 26, 2007, TRW Automotive Inc. executed supplemental indentures with The Bank of New York, as trustee, effectuating proposed amendments to the indentures governing each series of Notes to eliminate substantially all of the covenants and certain events of default and to modify the provisions relating to defeasance, 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 was on March 26, 2007. 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: a) Global Bondholder Services Corporation Tel: (866) 924-2200 b) The Bank of New York Attention: William Buckley 7 East, 101 Barclay Street New York, NY 10286 Tel: (212) 815-5788 Fax: (212) 298-1915 c) The Bank of New York (Luxembourg) S.A. 1A, Hoehenhof, L-1736 Senningerberg Aerogolf Center, Luxembourg Tel: +(352) 34 20 90 5637 Questions regarding the tender offers and the consent solicitations should be directed to: Lehman Brothers Tel: (800) 438-3242 (toll- free), or (212) 528-7581 (collect) About TRW Automotive Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE: TRW) -- http://www.trwauto.com/-- is an automotive supplier. Through its subsidiaries, the company employs about 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, 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. XERIUM TECHNOLOGIES: Miguel Quinonez to Step Down as President -------------------------------------------------------------- Xerium Technologies Inc. reported that Miguel Quinonez, President - Xerium South America, would retire effective Dec. 31, 2007. The company expects to name a successor by the end of 2007. "Miguel has spent virtually his entire career with Xerium and its predecessors and has played a pivotal role helping to build and steer the company," said Thomas Gutierrez, Chief Executive Officer of Xerium Technologies. "I thank Miguel for his years of dedicated service and am pleased that Miguel will remain with the company through the rest of 2007 to ease the transition." Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. * * * Moody's Investors Service changed the outlook on Xerium Technologies, Inc.'s ratings to negative from stable, and affirmed the company's corporate family rating at B1. The change in outlook to negative reflects Xerium's weaker than expected operating performance primarily due to production inefficiencies in North America and delays in achieving benefits from cost reduction initiatives. Moody's believes the impact of these issues, coupled with a difficult pricing environment for roll covers and to a lesser extent clothing products, will continue to negatively affect operating performance over the intermediate term. Affirmed ratings are: * Corporate family rating; B1 * Guaranteed senior secured term loan B; B1 * Guaranteed senior secured revolving credit facility; B1 =========================== C A Y M A N I S L A N D S =========================== BB NETWORK: Proofs of Claim Filing Deadline Is Tomorrow ------------------------------------------------------- BB Network Rental Holdings' creditors are given until April 17, 2007, to prove their claims to David Walker and Jackie Powell-Marsden, 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. BB Network's shareholders agreed on March 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: David Walker Jackie Powell-Marsden Attention: Jody Powery-Gilbert Caledonian Bank & Trust Limited Caledonian House, 69 Dr. Roy's Drive P.O. Box 1043 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 914-4890 Fax: (345) 814-4870 KAZIMIR RUSSIA: Proofs of Claim Must be Filed on Friday ------------------------------------------------------- Kazimir Russia Directional Fund, Ltd.'s creditors are given until April 20, 2007, to prove their claims to Mr. William Spencer, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Kazimir Russia's shareholders agreed on Oct. 24, 2005, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: William Spencer c/o Delphi Management Limited Covenant House, 85 Reid Street Hamilton, HM12 Bermuda Telephone: 001 441 296 6644 Fax: 001 441 296 4283 PARMALAT SPA: N.Y. Court Allows Charges Against Grant Thornton -------------------------------------------------------------- The U.S. District Court for the Southern District of New York refused to dismiss would-be class shareholder charges against Grant Thornton LLP (U.S.) based on its relationship with an overseas affiliate that audited the financial statements of Parmalat Finanziaria S.p.A., according to an article by BNA Inc. The Hon. Lewis A. Kaplan concluded that Grant Thornton may be held liable on agency principles, among other vicarious liability theories, according to the report. In June 2005, Judge Kaplan issued an opinion upholding various claims asserted by the plaintiffs against certain auditor defendants in the class action relating to the Parmalat securities fraud. Judge Kaplan found that the plaintiffs had adequately stated fraud claims against Deloitte Touche Tohmatsu and Grant Thornton International by virtue of their respective agency relationships with Parmalat's Italian auditors. The complaint charges certain of Parmalat's senior insiders and its legal, accounting and financial advisors with violations of the U.S. Securities Exchange Act of 1934. The complaint alleges that Parmalat's senior insiders, together with Parmalat's legal, accounting and financial advisors, concocted a massive scheme whereby they overstated Parmalat's reported profits and assets for more than a decade. The revelations of defendants' misconduct caused the price of Parmalat stock to plunge 95% before trading was suspended on Dec. 29, 2003. The company ultimately filed for bankruptcy. In October 2005, the court in Parma, Italy issued a decree approving a "composition" or agreement with Old Parmalat's creditors causing Parmalat S.p.A. to formally succeed Old Parmalat and triggering the transfer of Old Parmalat's assets and liabilities to New Parmalat. Recently, a notification program for a US$50 million partial settlement of a U.S. class action about the prices paid for Parmalat common stock and bonds. The Court defined "Class members" in the settlement to include all people and entities who bought Parmalat common stock and/or bonds from Jan. 5, 1999 through and including Dec. 18, 2003, and were damaged thereby, regardless of where such people live or where they purchased their Parmalat securities. The suit is "In re Parmalat Securities Litigation, S.D.N.Y., Master Docket 04 MD 1653 (LAK)." About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed or bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. PARMALAT SPA: Constitutional Court Affirms Claims vs. Two Banks --------------------------------------------------------------- The Italian Constitutional Court -- Corte Costituzionale della Republica Italiana -- has reconfirmed the legitimacy of a clawback action filed by Parmalat S.p.A. against Banca Agricola Mantovana S.p.A. and Banca Popolare di Milano Scrl, various reports say. The banks had appealed against a previous Court decision confirming the constitutionality of the claims, arguing that the actions are illegal because the money would benefit Parmalat and not its original creditors, Bloomberg News reports. The Court, however, rejected the appeals, saying that clawback actions can be filed when a company is restructuring, AFX News relates. Similar cases were filed before the Court, questioning the legitimacy of the Marzano Bankruptcy Law in Parmalat's case because it came into effect after the company's bankruptcy. The law, passed in December 2003 to manage the food group's collapse, permits Parmalat to recover payments made in the year before its insolvency. Enrico Bondi, Parmalat Chief Executive, has filed damage claims and clawback actions in the U.S. and Italy to recover around EUR13.2 billion from banks, auditors and advisers who allegedly abetted the company's collapse in December 2003. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed or bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. ========= C H I L E ========= EMPRESA DE FERROCARILES: Needs to Privatize Passenger Services -------------------------------------------------------------- An official at Chilean state-run railway Empresa de Ferrocariles del Estado's "oversight body" told the local press that the firm should consider a privatization of passenger services. Patricio Rojas, the head of Chile's system of state-owned companies, commented to news daily El Mercurio, "The business model used by EFE so far has been exhausted, and a major change of course is needed." El Mercurio notes that Mr. Rojas met with legislators probing Empresa de Ferrocariles' mismanagement. Dow Jones Newswires relates that under the previous administration, Empresa de Ferrocariles had a major expansion program, including the upgrade of local railways in Valparaiso and Vina del Mar. The company also worked on the relaunch of rail services from Santiago to Puerto Montt. However, the service was suspended due to technical and administrative problems and financial losses. The state should handle rail infrastructure, but private-sector firms would probably do better in running passenger services. Government subsidies would likely be needed to make rail tickets more accessible, Mr. Rojas told reporters. LIBERTY GLOBAL: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and Technology sectors last week, the rating agency confirmed its Ba3 Corporate Family Rating for Liberty Global Inc. Moody's also assigned a Ba3 probability of default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About Liberty Global Headquartered in Englewood, Colorado, Liberty Global Inc. -- http://www.www.lgi.com/-- is an international broadband communications provider of video, voice and Internet access services, with consolidated broadband operations in 19 countries, primarily in Europe, Japan and Chile. Through its indirect wholly owned subsidiary UGC Europe, Inc., and its wholly owned subsidiaries UPC Holding B.V. and Liberty Global Switzerland, Inc., collectively Europe Broadband, Liberty Global provides video, voice and Internet access services in 13 European countries. Through Liberty Global's indirect controlling ownership interest in Jupiter Telecommunications Co., Ltd., the Company provides video, voice and Internet access services in Japan. Through the Company's indirect 80%-owned subsidiary VTR GlobalCom, S.A., it provides video, voice and Internet access services in Chile. * * * As reported on April 2, Standard & Poor's Ratings Services revised its outlook on international cable TV and broadband provider Liberty Global Inc. to positive from stable. The outlooks on related entities in the LGI group, including UPC Broadband Holding and VTR GlobalCom S.A., were also revised to positive from stable. The ratings on LGI and its related entities, including the 'B' long-term corporate credit rating on LGI, were affirmed. NORSKE SKOGINDUSTRIER: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Aerospace and Defense, Automotive, Forest Products, Healthcare and Pharmaceuticals, Metals and Mining, Natural Products Processor and Consumer Products sectors last week, the rating agency confirmed its Ba1 Corporate Family Rating for Norske Skogindustrier ASA. Moody's also assigned a Ba1 Probability-of-Default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability-of- Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ -------- 6.125% Senior Unsecured Regular Bond/Debenture Due 2015 Ba1 Ba1 LGD4 55% 7.125% Senior Unsecured Regular Bond/Debenture Due 2033 Ba1 Ba1 LGD4 55% US$600-million 7.625% Sr. Unsecured Regular Bond/Debenture Due 2011 Ba1 Ba1 LGD4 55% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-Default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Lysaker, Norway, Norske Skogindustrier ASA -- http://www.norskeskog.com/-- manufactures paper and pulp. It produces long and short fiber sulphate pulp, newsprint, bleached Kraft paper and others. The Company owns and operates paper mills in Europe, Asia, Australia, Africa and North and South America. Norske has posted three consecutive annual net losses of EUR116.3 million in 2004, EUR315.4 million in 2003, and EUR849 million in 2002. It has paper mills in Chile and Brazil. =============== C O L O M B I A =============== BANCOLOMBIA SA: Earns COP111.3 Billion in March 2007 ---------------------------------------------------- Bancolombia reported unconsolidated net income of COP111,323 million during the past month of March. During March, total net interest income, including investment securities amounted to COP150,128 million. Additionally, total net fees and income from services totaled in the month COP50,873 million. Total assets amounted to COP27.71 trillion, total deposits totaled COP18.89 trillion and the company's total shareholders' equity amounted to COP3.13 trillion. Bancolombia's (unconsolidated) level of past due loans as a percentage of total loans was 2.86% as of March 31, 2007, and the level of allowance for past due loans was 126.39%. Dividend income amounted to COP66,544 for the month of March. Market Share According to ASOBANCARIA (Colombia's national banking association), Bancolombia's market share of the Colombian Financial System in January 2007 was as follows: * 18.4% of total deposits, * 19.9% of total net loans, * 19.5% of total savings accounts, * 21.0% of total checking accounts and * 13.2% of total time deposits. About Bancolombia Bancolombia is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 2, 2007, Moody's Investors Service placed the D+ bank financial strength rating of Bancolombia SA on review for possible downgrade. Bancolombia's foreign currency deposit ratings were affirmed at Ba3/Not-Prime. As reported in the Troubled Company Reporter on Feb. 6, 2007, Fitch Ratings affirmed Bancolombia's long-term and short-term foreign currency Issuer Default Ratings: * Foreign currency long-term IDR at 'BB+'; * Foreign currency short-term rating at 'B'; * Support rating at '3'. Moody's said the rating outlook is stable. The ratings remain on rating watch negative: * Individual rating of 'C'; * Local currency long-term IDR of 'BBB-'; * Local currency short-term rating of 'F3'. BANCOLOMBIA SA: Moody's Affirms Ba3/Not Prime Deposit Ratings ------------------------------------------------------------- Moody's Investors Service affirmed Bancolombia S.A.'s long- and short-term foreign currency deposit ratings of Ba3/Not Prime. Moody's also assigned to Bancolombia ratings on its long- and short-term global local-currency deposits of Baa1 and Prime -2, respectively. The ratings are under review for possible downgrade, in line with the review for possible downgrade of Bancolombia's D+ bank financial strength rating or BFSR. Moody's noted that the Baa1 global local-currency rating reflects Bancolombia's dominant share of 18% of the nation's retail deposits, and its established business franchise. Bancolombia has a particularly strong retail presence, as well as broad customer and product bases, which contribute to its recurrent earnings generation. The Baa1 rating incorporates Moody's view that Bancolombia's systemic importance is such that it would be eligible to receive systemic support in a stress situation. Moody's BFSR for Bancolombia was first placed under review for possible downgrade on Dec. 28, 2006, following the announcement of the bank's leveraged acquisition of a controlling stake in Banco Agricola S.A. of El Salvador. The review is focused on the potential impact of this acquisition on Bancolombia's tangible common equity. These ratings were affirmed: -- Long-term foreign currency deposit rating of Ba3/Not Prime -- Short-term foreign currency deposit rating of Ba3/Not Prime These ratings were assigned to Bancolombia S.A.: -- Global local-currency deposits, long term: Baa1 -- Global local-currency deposits, short term: Prime 2, both on review for possible downgrade This rating remains on review for possible downgrade: -- Bank financial strength rating: D+ Bancolombia is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. SUN MICROSYSTEMS: Will Acquire SavaJe Technologies IP Assets ------------------------------------------------------------ Sun Microsystems, Inc. and SavaJe Technologies have entered into a definitive agreement pursuant to which Sun will acquire SavaJe's intellectual property assets. Additional information regarding the acquisition of these assets will be unveiled at the annual JavaOne Conference being held in San Francisco on May 8 to May 11, 2007. For more information about the JavaOne conference, visit http://java.sun.com/javaone/ The transaction is subject to customary closing conditions and is expected to be completed during the fourth quarter of Sun's 2007 fiscal year which began on April 2, 2007. The terms of the deal were not disclosed as the transaction is immaterial to Sun's earnings per share. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (Nasdaq: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Latin America: Chile, Colombia, Brazil, Argentina, Mexico and Venezuela. * * * As reported on Oct. 26, 2006, Moody's Investors Service confirmed its Ba1 Corporate Family Rating for Sun Microsystems Inc. in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the U.S. Technology Hardware sector. Sun Microsystems, Inc.'s 7-1/2% Senior Notes due Aug. 15, 2006, and 7.65% Senior Notes due Aug. 15, 2009, carry Moody's Investors Service's Ba1 rating and Standard & Poor's BB+ rating. =================================== D O M I N I C A N R E P U B L I C =================================== AMERICAN AIRLINES: Files for Approval to Operate New Routes ----------------------------------------------------------- American Airlines, Inc., told Dominican Today that it has requested the Dominican Civil Aviation Board licenses to operate new routes in the Dominican Republic, from the international airports Las Americas and El Catey, in Samana. Dominican Today underscores that the request for licenses corresponds to these new routes: -- San Juan, Puerto Rico-Samana; -- Santo Domingo-Port Prince; -- Santo Domingo-Curacao; and -- Santo Domingo-Caracas. American Airlines' affiliate American Eagle will operate the new routes, which are part of the former's expansion plans, Dominican Today notes, citing Eduardo del Pozo, directorate for the Dominican Republic. Once the permits are approved, American Airlines will launch the new routes on July 1, Mr. del Pozo told Dominican Today. Mr. del Pozo told Dominican Today that the request for licenses shows American Airlines' trust in the Dominican Republic's stability and in its present and future potential, as part of the possibilities that the Dominican Republic-Central America Free Trade agreement with the United States offers. The authorization of the permits would mean a considerable boost in the frequency of American Airlines flights, Dominican Today states, citing Mr. del Pozo. The new routes would significantly support the nation's tourism development plans, through American Airline's over 30-year commitment with the Dominican Republic. The new flight frequencies will bring in about 150,000 travelers to the Dominican Republic in the first year of operation. American Airlines, Inc. (NYSE:AMR) -- http://www.AA.com/-- American Eagle, and the AmericanConnection regional airlines serve more than 250 cities in over 40 countries with more than 3,800 daily flights. The combined network fleet numbers more than 1,000 aircraft. American Airlines, Inc. and American Eagle are subsidiaries of AMR Corporation. It has Latin operations in Mexico, Dominican Republic, Puerto Rico, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Venezuela, Uruguay, Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. * * * As reported in the Troubled Company Reporter-Latin America on April 12, 2007, Standard & Poor's Ratings Services affirmed its ratings on American Airlines Inc. (B/Positive/--) and parent AMR Corp. (B/Positive/B-2). S&P said the rating outlook was revised to positive from stable. BANCO INTERCONTINENTAL: Pays Ex-Colonel's Credit Card Expenses -------------------------------------------------------------- Banco Intercontinental paid the expenses from the four credit cards of Pedro Julio (Pepe) Goico -- a retired colonel and the head of former Dominican Republic president Hipolito Mejia's security -- every month, Dominican Today reports, citing Zunilda Paniagua, a member of the Banco Intercontinental Liquidator Commission who testified before the National District 1st Collegiate Court of the Dominican Republic in favor of the prosecution. Ms. Paniagua told Dominican Today that Banco Intercontinental's registries showed that the bank paid for the credit cards every month. The cards' transactions were US$2.3 million and DOP4 million from 2000 to 2002. The first card was issued in 1997. As reported in the Troubled Company Reporter-Latin America on April 13, 2007, Ms. Paniagua mentioned a letter that former Banco Intercontinental head Ramon Baez Figueroa sent Jose Miguel Soto Jimenez -- who was the Armed Forces Minister -- regarding the start of a probe into alleged irregularities in the bank with the issuing of a credit card to former army colonel Pedro Julio (Pepe) Goico. The investigation on the origins of the payments to cancel their monthly balances is still ongoing, Dominican Today notes, citing Ms. Paniagua. According to Dominican Today, Ms. Paniagua described the return of the savings to Banco Intercontinental's depositors on the part of the Dominican central bank, which disbursed DOP55 billion, affirming that that measure was needed; otherwise, the Dominican banking system could have been affected before "nervous attitude" of Banco Intercontinental's clients. Dominican Today underscores that Juarez Castillo, Mr. Figueroa's lawyer, challenged Ms. Paniagua with a letter, introduced as evidence, that referred to a sentence ordering a DOP551-million payment through investment certificates from the central bank to Guaroa Liranzo, who was Banco Intercontinental's treasurer at the time of the intervention. Jose Lois Malkun, the central bank governor during the intervention of Banco Intercontinental, declined to make cash payments on Mr. Liranzo's deposits. A legal process then started that ended with the ordering of the payment, Dominican Today says, citing Ms. Paniagua. Ms. Paniagua admitted that she didn't remember if the payment was finally authorized, Dominican Today states. Banco Intercontinental aka Baninter collapsed in 2003 as a result of a massive fraud that drained it of about US$657 million in funds. As a consequence, all of its branches were closed. The bank's current and savings accounts holders were transferred to the bank's new owner -- Scotiabank. The bankruptcy of Baninter was considered the largest in world history, in relation to the Dominican Republic's Gross Domestic Product. It cost Dominican taxpayers DOP55 billion and resulted to the country's worst economic crisis. JETBLUE AIRWAYS: Names Jim Hnat as Executive Vice President ----------------------------------------------------------- JetBlue Airways has appointed Jim Hnat to the position of Corporate Secretary and Executive Vice President, Corporate Affairs, and the streamlining of the company's reporting structure. Mr. Hnat joined JetBlue Airways in June 2001, and was named General Counsel in February 2003. Mr. Hnat retains the responsibilities of General Counsel and will now lead JetBlue's Corporate Affairs, which includes: * Corporate Communications; * Government Affairs; * Internal Audit and Compliance; * People; and * Legal. Mr. Hnat has also been appointed the company's Corporate Secretary. "Jim has brought excellent leadership to our airline and he has played an integral part in the development and growth of the company," said David Neeleman, JetBlue's Founder and CEO. "His guidance and strategic thinking in this position will play a key role in the future success of JetBlue." Streamlined Reporting Structure In addition to the Corporate Affairs team, the following leaders will report to the Office of the Chief Executive Officer, Mr. Neeleman and Dave Barger, President: Russ Chew, who joined the airline March 2007 as Chief Operating Officer, is responsible for the airline's operational strategy and execution. The following teams report to Mr. Chew: * Airports; * Crew Services; * Flight Operations; * Inflight; * JetBlue U, the airline's learning organization; * Operational Planning; * Safety; * Security; * System Operations; and * Technical Operations. John Harvey joined JetBlue in 1999 as Treasurer and was named Chief Financial Officer in May 2006. In addition to his duties as CFO, Mr. Harvey has been named Executive Vice President- Corporate Services. The following teams report to Mr. Harvey: * Aircraft Programs & Treasury; * Corporate Real Estate; * Finance (Accounting and Financial Planning & Analysis); * Information Technology; Investor Relations; and * Supply Chain & Fuel. Trey Urbahn, who joined the airline November 2006 as Chief Revenue Officer, is responsible for the airline's product development and sales. The following teams report to Mr. Urbahn: * Business Development; * Marketing; * Network Planning; * Reservations; * Revenue Management; and * Sales. Based in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services primarily in the United States. As of Feb. 14, 2006, the Company operated approximately 369 daily flights serving 34 destinations in 15 states, Puerto Rico, the Dominican Republic, and the Bahamas. The Company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV, LLC. * * * As reported in the Troubled Company Reporter on Nov. 23, 2006, Moody's Investors Service assigned ratings of Caa1 (LGD5, 88%) to the approximately US$40 million of Special Facility Revenue Bonds, Series 2006 (JetBlue Airways Corporation Project or the JFK Facility Bonds) to be issued by the New York City Industrial Development Agency. Moody's affirmed the B2 corporate family rating for JetBlue Airways Corp. Moody's said the outlook remains negative. Standard & Poor's Ratings Services assigned its 'B' rating to US$40 million of New York City Industrial Development Agency special facility revenue bonds, series 2006 maturing on May 15, 2021, and May 15, 2030; the amount for each maturity have yet to be determined. The bonds, which will be used to finance a hangar and other facilities, will be serviced by payments made by JetBlue Airways Corp. (B/Stable/B-3) under a lease between the airline and the agency. * DOMINICAN REPUBLIC: To Issue DOP320-Billion of 10-Year Bonds -------------------------------------------------------------- Dominican Today reports that the bill on the recapitalization of the Dominican Republic's central bank authorizes the government to issue up to DOP320 billion in 10-year internal bonds. According to Dominican Today, the bonds could be traded in the stock market. Dominican Today underscores that the Dominican Republic President Leonel Fernandez sent a letter to the Lower Chamber saying, "Under no concept will they [bonds] be used for the substitution of certificates of the holders of issues of the central bank." However, the bill doesn't state that specification, Dominican Today notes. The bill says that the bonds will have the "future negotiability option in the secondary bond market and which will enjoy the regime fiscal of exemptions." Dominican Today relates that the issues will be made yearly from 2007 to 2016. The first will be of sufficient amount to generate interests of up to DOP5.8 billion -- 0.5% of the Gross Domestic Product -- that will be transferred to the central bank in 2007 to cover part of its quasi-fiscal deficit. The second issue will have interest of 0.6% of the GDP the next year, while the third of 0.7% and so on until the 10th year when the government's revenue in interests reaches 1.4% of the GDP in 2016. The Ministry of the Hacienda will be in charge of each bond issuance, Dominican Today states. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 28, 2006, Fitch Ratings revised the Rating Outlook on the Dominican Republic's foreign currency and local currency Issuer Default ratings to Positive from Stable. Fitch also affirmed both IDRs at 'B'. ============= E C U A D O R ============= GRAHAM PACKAGING: Dec. 31 Balance Sheet Upside-Down by US$597.8M ---------------------------------------------------------------- Graham Packaging Company, LP's posted total stockholders' deficit of US$597.8 million, resulting from total assets of US$2.4 billion and total liabilities of US$3 billion as of Dec. 31, 2006. General partners' deficit in 2006 was US$31 million, up from US$25 million a year ago. Limited partners' deficit in 2006 was US$595.1 million, up from US$478.5 million a year ago. For the year ended Dec. 31, 2006, the company recorded a net loss of US$120.4 million on net sales of US$2.5 billion, as compared with a net loss of US$52.6 million on net sales of US$2.5 billion for the year ended Dec. 31, 2006. Net sales in 2006 increased by US$47.5 million from net sales in 2005. Gross profit for the year ended Dec. 31, 2006, decreased to US$287.5 million from US$295.5 million for the year ended Dec. 31, 2005. Selling, general and administrative expenses for the year 2006 increased to US$131.4 million from US$127.5 million for the year 2005. Impairment charges were US$25.9 million for the year ended Dec. 31, 2006, as compared with US$7.3 million for the year ended Dec. 31, 2005. Interest expense, net increased to US$207 million for the year ended Dec. 31, 2006, from US$184.4 million for the year ended Dec. 31, 2005. Other expense, net increased to US$2.2 million for the year 2006 from US$200,000 for the year 2005, primarily due to higher foreign exchange losses. Income tax provision increased to US$27.6 million for the year ended Dec. 31, 2006, from US$14.4 million for the year ended Dec. 31, 2005. Liquidity and Capital Resources In 2006, 2005 and 2004, the company generated US$490.4 million of cash from operations and US$1.4 billion from increased debt. This US$1.9 billion was primarily used to fund US$565.5 million of net cash paid for property, plant and equipment, US$1.3 billion of investments and US$81.5 million of debt issuance fee payments. Working capital, defined as current assets less current liabilities, decreased US$108.6 million in 2006, primarily due to a decrease in inventories of US$48.9 million. The company's Credit Agreement currently consists of a senior secured B Loan to the Graham Packaging Holdings I LP, the operating company, totaling US$1.9 billion and a Revolving Credit Facility to the Operating Company totaling US$250 million. The Acquisition and refinancing of substantially all of the company's prior debt included the issuance of US$250 million of Senior Notes due 2012 and the issuance of US$375 million of Senior Subordinated Notes due 2014. At Dec. 31, 2006, the company's total debt was US$2.5 billion. Its unused lines of credit at Dec. 31, 2006, and 2005 were US$196.2 million and US$61.8 million, respectively. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d0c About Graham Packaging Headquartered in York, Pennsylvania, Graham Packaging Co. Inc. -- http://www.grahampackaging.com/-- designs, manufactures and sells technology-based, customized blow-molded plastic containers for the branded food and beverage, household, personal care/specialty, and automotive lubricants product categories. The Company currently operates 88 plants worldwide. In Latin America, the company has operations in Argentina, Brazil, Ecuador, Mexico and Venezuela. The Blackstone Group of New York is the majority owner of Graham Packaging. * * * As reported in the Troubled Company Reporter-Latin America on April 10, 2007, Fitch Ratings has downgraded Graham Packaging Company, L.P.'s senior secured first-lien credit facility to 'B/RR3' from 'B+/RR2'. Ratings on the senior secured second- lien facility were withdrawn. In addition, Fitch affirmed the following ratings on Graham Packaging and its subsidiary GPC Capital Corp. I: -- Issuer default rating (IDR) 'B-'; -- Senior unsecured notes 'CCC+/RR5'; -- Senior subordinated notes 'CCC/RR6'. Fitch said the rating outlook is stable. Approximately US$2.5 billion of debt is covered by the ratings. ===================== E L S A L V A D O R ===================== ALCATEL-LUCENT: Unveils Adjusted Quarterly Figures for 2006 ----------------------------------------------------------- Alcatel-Lucent has provided 2006 quarterly unaudited adjusted pro forma revenues and operating income (loss) for its three operating segments: Carrier, Enterprise, and Services. In addition, the company presented quarterly revenues for the business groups comprising its Carrier operating segment: the Wireline Business Group, the Wireless Business Group, and the Convergence Business Group. Adjusted pro-forma results include combined operations for Alcatel-Lucent for the twelve-month period ended Dec. 31, 2006. Businesses to be contributed to Thales are presented as discontinued activities. Results from Nortel's UMTS radio access business are not included as the transaction was completed on Dec. 31, 2006. In addition, these results exclude any impact from purchase price allocation entries. These estimated results are presented for illustrative purposes only and are neither indicative of the revenues and operating income (loss) that would have been achieved had the merger been completed on Jan. 1, 2006, nor reflect the cost savings which may result from the merger. (in Euro millions) Q1 Q2 Q3 Q4 12M Revenues 4,433 4,491 4,909 4,421 18,254 Carriers 3,340 3,367 3,706 3,198 13,611 - Wireline 1,342 1,459 1,447 1,454 5,702 - Wireless 1,495 1,397 1,674 1,249 5,815 - Convergence 503 511 585 495 2,094 Enterprise 342 368 362 419 1,491 Services 674 700 775 819 2,968 Other & eliminations 77 56 66 (15) 184 Operating income 246 252 430 (3) 925 Carriers 260 224 389 (75) 798 Enterprise 24 28 24 50 126 Services (10) 35 60 35 120 Other & eliminations (28) (35) (43) (13) (119) The first quarter 2007 earnings will be released on May 11. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa last week, the rating agency confirmed its Ba3 Corporate Family Rating for Alcatel-Lucent. The implementation of the LGD methodology in EMEA follows the introduction of the methodology in September 2006. Most of the rating actions Moody's confirmed relate to senior secured loans. * Issuer: Alcatel-Lucent Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Senior Unsecured Bank Credit Facility Ba2 Ba2 LGD3 46% 4.75% Senior Unsecured Conv./Exch. Bond/ Debenture Due 2011 Ba2 Ba2 LGD3 46% US$1.5-billion Senior Unsecured Medium-Term Note Program Ba2 Ba2 LGD3 46% EUR5-billion Senior Unsecured Medium-Term Note Program Ba2 Ba2 LGD3 46% 6.375% Senior Unsecured Regular Bond/Debenture Due 2014 Ba2 Ba2 LGD3 46% US$500-million Senior Unsecured Regular Bond/ Debenture Due 2010 Ba2 Ba2 LGD3 46% EUR1-billion 4.375% Senior Unsecured Regular Bond/ Debenture Due 2009 Ba2 Ba2 LGD3 46% EUR120-million 4.375% Senior Unsecured Regular Bond/Debenture Due 2009 Ba2 Ba2 LGD3 46% * Issuer: Lucent Technologies Capital Trust I Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$1750-million 7.75% Preferred Stock Due 2017 B2 B1 LGD6 94% * Issuer: Lucent Technologies Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$1.75-billion Multiple Seniority Shelf, subordinated, (P)B2 (P)B1 LGD6 94% US$1.75-billion Multiple Seniority Shelf regular/junior preferred stock (P)B3 (P)B1 LGD6 97% US$1.75-billion Multiple Seniority Shelf, senior unsecured (P)Ba3 (P)Ba2 LGD3 46% 8% Subordinate Conv./Exch. Bond/ Debenture Due 2031 B2 B1 LGD6 94% 2.75% Senior Unsecured Conv./Exch. Bond/ Debenture Due 2023 Ba3 Ba2 LGD3 46% 2.75% Senior Unsecured Conv./Exch. Bond/ Debenture Due 2025 Ba3 Ba2 LGD3 46% US$300-million 6.5% Senior Unsecured Regular Bond/ Debenture Due 2028 Ba3 Ba2 LGD3 46% US$500-million 5.5% Senior Unsecured Regular Bond/ Debenture Due 2008 Ba3 Ba2 LGD3 46% US$1.36-billion 6.45% Senior Unsecured Regular Bond/ Debenture Due 2029 Ba3 Ba2 LGD3 46% As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB rating. It's Short-Term Corporate Credit rating stands at B. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. ALCATEL-LUCENT: Completes Gazprom Neft Network Project ------------------------------------------------------ Alcatel-Lucent has completed the project with OAO Gazprom Neft, Russia's fastest-growing oil company, for the transformation of its corporate network at its oil-processing factory in the city of Omsk. Through the implementation of this new network, Gazprom Neft is focused on improving employee productivity and increasing the reliability of its communications capabilities. Gazprom Neft chose Alcatel-Lucent to deliver a state-of-the-art IP communication solution which will provide IP telephony to more than 3,000 employees of the oil processing factory. Based on the Alcatel-Lucent OmniPCX Enterprise IP telephony platform, the solution includes Alcatel-Lucent's newest VoIP handsets. All nodes of the network are interconnected to ensure a feature rich environment and to unite existing systems into a single, integrated enterprise communication platform. Alcatel-Lucent also delivered Alcatel-Lucent IP Touch phones, which provide advanced capabilities to increase employee productivity, including "dial-by-name," call forwarding for mobility, and other advanced communications applications. "We made our choice in favor of the Alcatel-Lucent solution due to its flexibility and high reliability. It improves employee productivity by delivering advanced communications services, while minimizing downtime," Constantin Yurganov, Gazprom Neft Head of Information technologies, said. "The new solution will allow our staff to communicate more effectively, while improving overall productivity." "We are very honored to work with Gazprom Neft on this network transformation project," Ivan Makharine, Director of Alcatel- Lucent enterprise activities in CIS, said. "Gazprom Neft is a perfect example of a forward-thinking corporation, investing in a future-proof IP based solution that was designed to fully meet their requirements." Implementation of this project will enable Gazprom Neft to significantly enhance the organization's operating efficiency and raise levels of quality and employee performance. About Gazprom Neft Headquartered in Moscow, Russia, OAO Gazprom Neft -- http://www.gazprom-neft.ru/-- explores, produces, refines, markets, produces and sells petroleum products. The Company holds oilfield exploration and development licenses in the Yamal-Nenets and Khanti-Mansiisk autonomous regions, as well as in the Omsk and Tomsk regions, and in Chukotka. The Company's main oil processing center is the Omsk Refinery. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa last week, the rating agency confirmed its Ba3 Corporate Family Rating for Alcatel-Lucent. The implementation of the LGD methodology in EMEA follows the introduction of the methodology in September 2006. Most of the rating actions Moody's confirmed relate to senior secured loans. * Issuer: Alcatel-Lucent Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Senior Unsecured Bank Credit Facility Ba2 Ba2 LGD3 46% 4.75% Senior Unsecured Conv./Exch. Bond/ Debenture Due 2011 Ba2 Ba2 LGD3 46% US$1.5-billion Senior Unsecured Medium-Term Note Program Ba2 Ba2 LGD3 46% EUR5-billion Senior Unsecured Medium-Term Note Program Ba2 Ba2 LGD3 46% 6.375% Senior Unsecured Regular Bond/Debenture Due 2014 Ba2 Ba2 LGD3 46% US$500-million Senior Unsecured Regular Bond/ Debenture Due 2010 Ba2 Ba2 LGD3 46% EUR1-billion 4.375% Senior Unsecured Regular Bond/ Debenture Due 2009 Ba2 Ba2 LGD3 46% EUR120-million 4.375% Senior Unsecured Regular Bond/Debenture Due 2009 Ba2 Ba2 LGD3 46% * Issuer: Lucent Technologies Capital Trust I Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$1750-million 7.75% Preferred Stock Due 2017 B2 B1 LGD6 94% * Issuer: Lucent Technologies Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$1.75-billion Multiple Seniority Shelf, subordinated, (P)B2 (P)B1 LGD6 94% US$1.75-billion Multiple Seniority Shelf regular/junior preferred stock (P)B3 (P)B1 LGD6 97% US$1.75-billion Multiple Seniority Shelf, senior unsecured (P)Ba3 (P)Ba2 LGD3 46% 8% Subordinate Conv./Exch. Bond/ Debenture Due 2031 B2 B1 LGD6 94% 2.75% Senior Unsecured Conv./Exch. Bond/ Debenture Due 2023 Ba3 Ba2 LGD3 46% 2.75% Senior Unsecured Conv./Exch. Bond/ Debenture Due 2025 Ba3 Ba2 LGD3 46% US$300-million 6.5% Senior Unsecured Regular Bond/ Debenture Due 2028 Ba3 Ba2 LGD3 46% US$500-million 5.5% Senior Unsecured Regular Bond/ Debenture Due 2008 Ba3 Ba2 LGD3 46% US$1.36-billion 6.45% Senior Unsecured Regular Bond/ Debenture Due 2029 Ba3 Ba2 LGD3 46% As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB rating. It's Short-Term Corporate Credit rating stands at B. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. DIGICEL GROUP: Launches US$150-Mil. Mobile Deal in El Salvador -------------------------------------------------------------- Digicel Group is offering mobile services in El Salvador under the Digicel brand name. Delivering the most modern GSM network in the country with the most extensive national network coverage, Digicel will reach communities that have been previously underserved by the incumbents -- offering 95 percent population coverage, high value offers and innovative mobile services such as true per second billing. El Salvador has a population of 7 million people with mobile penetration at approximately 33%. The country's mobile market continues to enjoy sustained growth with mobile phones overtaking fixed lines service in 2002. Digicel El Salvador CEO, Luis La Rocca, stands before the network coverage map for Digicel El Salvador. Digicel has launched with a committed investment of US$150 million delivering the most extensive and most modern network in the country. "We are delighted to be in El Salvador and very optimistic about the future potential for growth in this market," said Digicel Group Chairman Denis O'Brien. "El Salvador is a very exciting marketplace for Digicel with low penetration, a young population and a buoyant economy. We look forward to growing our operation and bringing the best quality service to the people of El Salvador." Digicel first entered the El Salvador market through its acquisition of Digicel Holdings Ltd last year and the company's initial commitment of more than US$150 million is focused on expanding and upgrading the network to reach Digicel's standard of signature quality, reach and reliability -- all of which are underpinned by world-class 24/7 customer care, a national network of more than 500 retail distributors and in excess of 6,000 recharge outlets. According to the Minister of Telecommunications and Electricity for El Salvador, Fernando Arguello, "The launch of Digicel in El Salvador is a significant development for our mobile telecommunications market. Digicel brings an excellent track record for service and innovation from their experience in the Caribbean market, which can only contribute greatly to the competitiveness of the sector and offer better choice and value for the people of El Salvador." Built with the most cutting-edge Ericsson equipment, Digicel is standing behind the quality and reach of its El Salvador network by initially offering customers a full refund of charges if they cannot access mobile service where they reside. Digicel El Salvador has doubled its well-trained workforce to more than 300 employees led by CEO Luis La Rocca, who has 30 years senior management experience in the Latin American telecommunications industry. With operations in 22 markets and more than 4 million customers, Digicel's investment in the Caribbean and Central American region exceeds US$1.5 billion. In 2006, the company recorded a milestone of subscriber growth in excess of 100 percent. Digicel currently employs more than 3,000 people. Digicel Group Limited -- http://www.digicelgroup.com/-- is a wireless services provider in the Caribbean region. The company is a newly created Bermuda incorporated company formed by Mr. Denis O'Brien, who previously owned 78% of the shares of Digicel Limited on a fully diluted basis. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in 22 markets primarily in the Caribbean including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and Haiti among others. As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings took these rating actions for Digicel Group Ltd., Digicel Ltd. and Digicel International Finance Ltd.: Digicel Group Ltd. -- US$1.4 billion senior subordinated notes due 2015 assigned 'CCC+/RR5' Digicel Ltd. -- Foreign currency Issuer Default Rating downgraded to 'B-' from 'B'; and -- US$450 million senior notes due 2012 downgraded to 'B-/RR4' from'B/RR4'. Digicel International Finance Ltd. --US$850 million senior secured credit facility assigned 'B/RR3'. Fitch said the outlook on all ratings was stable. ================= G U A T E M A L A ================= IMAX CORP: Provides Status Update on Delayed Filing --------------------------------------------------- IMAX Corporation has provided a status update pursuant to the alternative information guidelines of the Ontario Securities Commission. These guidelines contemplate that the company will normally provide bi-weekly updates on its affairs until such time as the company is current with its filing obligations under applicable Canadian provincial securities laws. Except as to the matters described in the company's press releases of April 3, 2007, April 5, 2007, and April 9, 2007, the company reported that there had been no material developments in the matters reported in the company's press release "IMAX to Delay Filing of 2006 10-K" dated March 29, 2007. The company previously said that it would delay the filing of its annual report on Form 10-K for fiscal 2006 due to the discovery of certain accounting errors and has since broadened its accounting review to include certain other accounting matters based on comments received by the Company from the SEC and Ontario Securities Commission. The company is currently working diligently and devoting necessary resources to complete the report and filing as soon as practicable. For the reasons described in its prior news releases, the company cannot predict when it will complete its review and file its financial statements, although it intends to do so as soon as practicable. The statements set forth in this press release are preliminary, reflect information currently known to the company and are subject to change as a result of the accounting review and restatement process, subsequent events and the completion of the audit of the financial statements by the company's independent auditors, PricewaterhouseCoopers, LLP. The Company's next bi-weekly status update is expected to be released during the week of April 23, 2007. IMAX Corp. (NASDAQ:IMAX; TSX:IMX) -- http://www.imax.com/-- founded in 1967 and headquartered jointly in New York City and Toronto, Canada, is an entertainment technology company, with particular emphasis on film and digital imaging technologies including 3D, post-production, and digital projection. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. The IMAX Theatre Network currently consists of more than 270 IMAX affiliated theatres in 38 countries including Argentina, Ecuador, Guatemala, Mexico and Colombia. * * * As reported in the Troubled Company Reporter on April 03, 2007, Moody's Investors Service placed the ratings of IMAX Corp. on review for downgrade based on the company's disclosure on March 29, 2007 that it would further delay filing of its Form 10-K for fiscal 2006, resulting in a technical default under the financial reporting covenant within the indentures of its senior notes. These are the rating actions: * IMAX Corporation -- Corporate family rating, placed on review for possible downgrade, currently B3 -- Probability of default rating, placed on review for possible downgrade, currently B3 -- Senior unsecured bonds, placed on review for possible downgrade, currently Caa1 -- Outlook, changed to rating under review from stable. =========== M E X I C O =========== BALLY TOTAL: Gets Forbearance Pact from Senior Secured Lenders -------------------------------------------------------------- Bally Total Fitness reported that it has obtained a forbearance agreement from the lenders under its US$284 million senior secured credit facility. Under the agreement, the lenders have agreed, among other things, to forbear from exercising any remedies under their credit agreement as a result of defaults due to the company's inability to provide audited financial statements for the fiscal year ended Dec. 31, 2006, and certain other financial information to the lenders. The lenders have also agreed not to exercise cross-default remedies as a result of defaults under the company's public indentures due to the company's previously disclosed inability to timely file its 2006 Annual Report on Form 10-K with the Securities and Exchange Commission and the company's non-payment of interest on its 9-7/8% Senior Subordinated Notes due 2007. The forbearance period expires on July 13, 2007, but could expire earlier if enforcement action is taken by any holder of the company's 10-1/2% Senior Notes due 2011 or Senior Subordinated Notes, or if the Company pays any principal or interest on the Senior Subordinated Notes. Among other considerations, including this provision of the forbearance agreement, the scheduled interest payment of approximately US$15 million due on the Senior Subordinated Notes on April 16, 2007, will not be paid. The forbearance agreement also requires that the company enter into forbearance agreements with respect to defaults under its public indentures with holders of at least a majority of the Senior Notes and at least 75% of the Senior Subordinated Notes by no later than May 14, 2007. A copy of the forbearance agreement will be filed as an exhibit to a Current Report on Form 8-K that the Company will file with the SEC. Bally also announced that it is in continued discussions regarding waiver and forbearance arrangements with holders of its Senior Notes and Senior Subordinated Notes. The company has been advised that certain holders of both series of notes have formed an Ad Hoc Committee and retained Houlihan Lokey Howard & Zukin Capital Inc. as financial advisor and Akin Gump Strauss Hauer & Feld LLP as counsel. The company and its advisors have met with the advisors to the Ad Hoc Committee and with certain noteholders that have executed confidentiality agreements, and are discussing the terms of waiver and forbearance arrangements. The failure to make the scheduled interest payment on the Senior Subordinated Notes will be a default under the indenture governing those notes and a cross-default under the indenture governing the Senior Notes. The company is in the process of requesting that holders of the Senior Subordinated Notes and Senior Notes waive the indenture financial reporting covenant defaults discussed above and forbear from exercising any remedies with respect to the interest payment default until July 13, 2007. The company does not intend to pay a fee to the noteholders in connection with these waiver and forbearance arrangements. The US$300 million of outstanding Senior Subordinated Notes mature in October 2007. As of April 11, 2007, the company's liquidity was approximately US$54 million. The company continues to believe that it has sufficient liquidity to continue operating its business through the end of 2007 and into 2008, excluding the potential impact of the maturity of the Senior Subordinated Notes. The company is continuing to work diligently to complete its financial statements for 2006 and file its Annual Report on Form 10-K report for the year ended Dec. 31, 2006. Don R. Kornstein, Bally's interim Chairman, said, "We greatly appreciate the support of our senior lenders, since obtaining their forbearance is an important first step in our effort to seek a consensual restructuring and deleveraging of Bally's balance sheet. We look forward to continuing the discussions with our noteholders, as well as completing our 2006 financial statements." About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial operator of fitness centers in the U.S., with nearly 390 facilities and 30 franchises and joint ventures located in 29 states, Mexico, Canada, Korea, China and the Caribbean. Bally also sells Bally-branded apparel, nutritional products, fitness- related merchandise and its licensed portable exercise equipment is sold in more than 10,000 retail outlets. As reported in the Troubled Company Reporter-Latin America on March 20, 2007, Moody's Investors Service downgraded its corporate family rating on Bally Total Fitness Holding Corp. to Caa3 from Caa1. The rating outlook remains negative. Moody's also took these actions: -- US$235 million 10.5% senior unsecured notes (guaranteed) due 2011, downgraded to Caa3 (LGD 4, 51%) from Caa1 (LGD 4, 51%) -- US$300 million 9.875% senior subordinated notes due 2007, downgraded to Ca (LGD 5, 88%) from Caa3 (LGD 5, 88%) -- Probability of default rating, downgraded to Caa3 from Caa1. BERRY PLASTICS: Completes Stock-for-Stock Merger with Covalence --------------------------------------------------------------- Berry Plastics Group Inc. and Covalence Specialty Materials Holding Corp. have completed their reported stock-for-stock merger. Berry Plastics appointed Ira Boots as Chairman and Chief Executive Officer, and Brent Beeler as Chief Operating Officer, of the combined company. In addition, Berry Plastics said that Kip Smith, the former Chief Executive Officer of Covalence, will continue to run the Covalence businesses. About Covalence Covalence Specialty Materials Holding Corp. -- http://www.covcorp.com/ -- produces polyethylene-based plastic films, industrial tapes, medical specialties, packaging, and heat-shrinkable coatings. About Berry Plastics Based in Evansville, Indiana, Berry Plastics Corporation -- http://www.berryplastics.com/-- manufactures and markets rigid plastic packaging products. Berry Plastics provides a wide range of rigid open top and rigid closed top packaging as well as comprehensive packaging solutions to over 12,000 customers, ranging from large multinational corporations to small local businesses. The company has 25 manufacturing facilities worldwide and more than 6,800 employees and 25 manufacturing facilities in the United States, Mexico, Canada, Europe and China. * * * Standard & Poor's Ratings Services lowered its corporate credit rating on Berry Plastics to 'B' from 'B+' following successful completion of the acquisition of the company by private equity firms, Apollo Management L.P. and Graham Partners. Standard & Poor's removed the ratings from CreditWatch, where they were placed with negative implications on Aug. 3, 2006. The outlook is stable. Moody's Investors Service confirmed the B3 rating on Berry Plastics Corp.'s US$335 million 10.75% senior subordinated notes, due July 15, 2012. BERRY PLASTICS: Moody's Cuts Corporate Family Rating to B2 ---------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of Berry Plastics Holdings Corporation to B2. The outlook is stable. This rating action concludes the review for possible downgrade initiated on March 13 following the company's announcement that it had entered into a definitive agreement to merge with Covalence Specialty Materials Corporation in a stock-for-stock merger. The merger was consummated April 3. Additional instrument rating actions are detailed below. The downgrade of Berry's Corporate Family Rating reflects deterioration in credit metrics, change in operating profile and integration risk in merging with CSMC. Pro-forma for the transaction, Debt to EBITDA is 7.2 times and EBIT to Gross Interest Expense 0.8 times for the twelve months ended Dec. 31, 2006. The difference in product lines and size of CSMC represents a material change to Berry's operating profile and source of integration risk. Required investments for synergies will leave no free cash flow for debt reduction in the near term and little cushion for any negative variance. Strengths in Berry's pro-forma competitive profile include annual revenue of US$3.1 billion with significant market shares in several categories. The merger will also add additional diversity to Berry's end markets and increased scale. The combined organization is also expected to have good liquidity. The ratings of Berry were downgraded: -- Corporate Family Rating, to B2 from B1; -- Probability of Default Rating, to B2 from B1; -- US$225-million senior secured second lien FRN's due 2014, downgraded to B3 (LGD4, 65%) from B2 (LGD4, 62%); and -- US$525-million senior secured second lien notes due 2014, downgraded to B3 (LGD4, 65%) from B2 (LGD4, 62%). The ratings of Berry are confirmed and will be withdrawn: -- The Ba1 (LGD2, 18%) rated US$200-million senior secured revolver due 2012; -- The Ba1 (LGD2, 18%) rated US$675-million senior secured first lien term loan B due 2013. The ratings of Berry assigned March 16 are now effective: -- US$1,200-million senior secured term loan, Ba3 (LGD2, 27%); -- Moody's also affirmed the Speculative Grade Liquidity Rating of SGL-2. The rating outlook for Berry is stable. The ratings of CSMC are confirmed and are to be withdrawn: -- The Corporate Family Rating of B1; -- The Probability of Default Rating of B1; -- The Ba3 (LGD3, 34%) rated US$300-million senior secured term loan C due 2013; -- The B2 (LGD4, 62%) US$175 million-senior secured second lien term loan due 2013; and -- The Speculative Grade Liquidity Rating of SGL-2. The rating of CSMC was downgraded. These notes became obligations of Berry upon the closing of the merger: -- US$265-million senior subordinated notes due 2016, downgraded to Caa1 (LGD6, 90%) from B3 (LGD5, 86%). The ratings and outlook are subject to receipt of final documentation. Based in Evansville, Indiana, Berry Plastics Corporation -- http://www.berryplastics.com/-- manufactures and markets rigid plastic packaging products. Berry Plastics provides a wide range of rigid open top and rigid closed top packaging as well as comprehensive packaging solutions to over 12,000 customers, ranging from large multinational corporations to small local businesses. The company has 25 manufacturing facilities worldwide and more than 6,800 employees and 25 manufacturing facilities in the United States, Mexico, Canada, Europe and China. Net sales for the twelve months ended Dec. 30, 2006 amounted to approximately US$1.4 billion. CABLEMAS SA: Picks ARRIS Technology to Provide VoIP Service ----------------------------------------------------------- Cablemas SA de CV has again selected the ARRIS C4(R) CMTS and Touchstone(R) E-MTAs to expand its launch of digital telephony service as part of its new triple play package. Cablemas has previously deployed ARRIS technology to provide VoIP service to over 30,000 homes in cities including Cuernavaca and Tijuana, and anticipates launching the service this summer in additional cities where Cablemas now has franchises. Cablemas' VoIP service competes with the incumbent national telco Telmex, and is one of the few MSOs in Mexico currently offering the triple play package of voice, video and data -- from one central billing location. "ARRIS offers the right combination of global technical expertise, scale and support to help ensure the success of our Digital Telephone service rollout -- today and into the future," said Arnoldo Meiselmann, COO of Cablemas. "In addition, ARRIS offers a world-class CMTS platform. We tested a number of systems and the C4 was unmatched in terms of scalability, density, RF redundancy and other critical carrier-class features. We look forward to leveraging the ARRIS platform to cost-effectively deliver the next level of Digital Telephone services to our customers." "We are delighted to expand our excellent and long-standing relationship with Cablemas," noted ARRIS Sr. Vice President, Mexico/Central America Sales George Fletcher. "Triple play service deployment with the necessary accompanying quality of service and availability is rapidly growing in Mexico and throughout the Latin American market. ARRIS is committed to providing the region's cable operators with the best solutions, service and technical support for which we are known." About ARRIS Headquartered in Suwanee, Georgia, ARRIS -- http://www.arrisi.com/-- provides broadband local access networks with innovative video, high-speed data and telephony systems for the delivery of voice, video and data to the home and business. ARRIS complete solutions enhance the reliability and value of converged services from the network to the subscriber. ARRIS has design, engineering, distribution, service and sales office locations throughout the world. About Cablemas Cablemas SA de CV -- http://www.cablemas.com-- is the second-largest cable television operator in Mexico based on the number of subscribers and homes passed. As of June 30, 2005, the company's network served over 546,000 cable subscribers and in excess of 87,000 high-speed Internet subscribers, with more than 1,647,000 homes passed. It is the concessionaire with the broadest coverage in Mexico, operating in 46 cities throughout the country's oil, maquiladora and tourist regions. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2007, Fitch Ratings has affirmed these ratings for Cablemas with a Stable Rating Outlook: -- Foreign Currency Issuer Default Rating 'BB-'; -- Local Currency Issuer Default Rating 'BB-'; -- US$175 million senior notes due 2015 'BB-'; and -- National scale 'A(mex)'. DAMOVO GROUP: In Talks with Noteholders Over Restructuring Deal --------------------------------------------------------------- Damovo Group S.A. has noted a significant fall in the trading price of its Notes. The Company has extended its discussions with the Ad Hoc Committee of Noteholders in the light of recent negative developments in its Italian business, Enterprise Digital Architects S.p.A. These developments are of a sufficient materiality to necessitate a delay to the implementation of the Restructuring process, which was agreed with Damovo's noteholders in a restructuring agreement dated Dec. 11, 2006. The Company is currently reviewing, together with its auditors PWC, the treatment of certain contract revenues and associated costs and margins in the historic financial statements of EDA. While any resulting restatement of such financial statements may not, of itself, have an immediate negative effect on the cash flows of EDA, any adjustments considered prudent as a result of the review may have the effect of reducing the net asset value of EDA as shown in such financial statements. Damovo is continuing to discuss the implementation of the terms of the Restructuring Agreement with the ad hoc committee, assisted by respective advisers, including an extension to the Noteholders' standstill, which expired on March 30. Maurizio Botinelli has resigned from the boards of Damovo Group S.A., Damovo I S.a.r.l., Damovo II S.a.r.l, Damovo III S.A. and Enterprise Digital Architects S.P.A. effective from March 29. This is due to Mr. Botinelli's decision to pursue alternative employment opportunities. Headquartered in Glasgow, Scotland, Damovo Group S.A. -- http://www.damovo.com/-- is a provider of information and communications technology (ICT) and services to public service organizations and larger private sector companies. The company also maintains operations in Belgium, Brazil, Czech Republic, Germany, Ireland, Italy, Mexico, Poland, Switzerland and the United Kingdom. * * * As reported on Feb. 1, Standard & Poor's Ratings Services withdrew its 'D' long-term corporate credit rating on U.K.-based telecommunication services provider Damovo Group S.A., and 'D' senior secured debt ratings and '4' recovery rating on subsidiary Damovo III S.A. In November 2006, Moody's Investors Service downgraded the corporate family rating of Damovo Group S.A. to Caa3 from Caa1 following the non-payment of a semi-annual interest coupon due Oct. 30 on the company's 2012 senior notes and the announcement of its intention to undertake a financial restructure. Moody's has concurrently downgraded the rating on the senior notes, which are issued at Damovo III S.A. to Ca from Caa2. Moody's said the outlook is negative. The rating actions conclude a review initiated on Oct. 16, 2006. DESARROLLADORA METROPOLITANA: Moody's Rates US$100MM Notes at B2 ---------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to Desarrolladora Metropolitana S.A. de C.V.'s aka Demet proposed US$100 million senior notes, being issued in the United States of America. The rating outlook is stable. Demet proposes to issue US$100 million of 10-year senior notes, callable after five years. These notes will rank pari passu with other unsecured debt, and will be guaranteed by all of the company's restricted subsidiaries that are wholly owned and significant subsidiaries. The notes have covenants that limit the incurrence of additional debt, payment of dividends on its capital stock, certain investments, the ability to create liens and to engage in transactions with affiliates; asset sales, and ability to consolidate, merge or transfer assets. Most of the proceeds will be used to payoff the company's short-term debt, bank debt, bridge loans and structured bond debt. The proposed bond issuance improves Demet's capital structure by lowering finance costs and extending maturities. It also substantially reduces the amount of secured debt at Demet. These positive rating characteristics are offset by several factors. The homebuilding business relies on the Mexican economic and political environment, and the government's ongoing support. Recent Mexican Government housing programs targeting the low-income housing construction industry have made the business more competitive, causing profit margin pressure for Demet. In addition, Demet has a material reliance on INFONAVIT and SHF/FOVI (government-sponsored programs for low-income housing) to fund the takeout financing for newly built homes. The timing of funding inflows can range up to twelve months, and short-term bridging debt can create liquidity pressures. Demet bears all of the risk of finding buyers -- a credit concern due to the speculative nature of the housing construction business. Demet's credit challenges also include its weak operating performance and lack of geographic diversification. Demet is highly levered compared to its peers, with Debt/Total Assets of 63% and Debt/EBITDA of 18.7x as of the third quarter of 2006. Operating margins were squeezed by Demet's aggressive growth strategy a few years ago. Although earnings have been improving since 2002, they are still weak. In addition, though Demet is one of the top fifteen homebuilders in Mexico, its operations are concentrated in Mexico City. This can create local political vulnerabilities. In addition, most of the housing units are in mid-rise buildings, which means that all units are delivered at once, rather than in phases, as can be true for grade developments. Moody's stated that Demet's credit strengths include its sophisticated operating systems and management team, with an average of fifteen-plus years of experience in the Mexican housing and financial markets. Moody's does not foresee any upward movement for Demet's ratings in the medium term, as the company needs to continue to strengthen and stabilize its earnings, and this should take more time. In specific, Demet needs to grow steadily, and diversify out of Mexico City (such as at least 50% of earnings being in other regions), generate stable earnings with a fixed charge coverage above 2X, and have debt/EBITDA under 10X. A downgrade would reflect an inability to reach a fixed-charge level above 1X for 2007, and above 2X for 2008. The following rating was assigned with a stable outlook: -- B2 to proposed US$100 million senior notes being issued in the USA Desarrolladora Metropolitana is a homebuilder engaged in the development, construction, marketing and sale of affordable housing developments in Mexico. The firm reported total assets of MXN4.4 billion and total equity of MXN1.3 billion at Sept. 30, 2006. EMPRESAS ICA: Infrainvest Gets US$50-Million Loan from IFC ---------------------------------------------------------- IFC, the private sector arm of the World Bank Group, reported that its Board of Directors has approved an equity investment of up to US$50 million in Infrainvest, an infrastructure company in Mexico, to support private sector investment in infrastructure, specifically transportation and water. This operation will give IFC a 19% participation in Infrainvest. Jose Luis Guerrero, Empresas ICA's CEO, noted, "The participation of IFC in Infrainvest projects provides strong support for the joint venture, and will contribute to our ability to develop the basic infrastructure that Mexico needs, taking advantage of the knowledge and experience of both ICA and IFC." Atul Mehta, IFC's Director for Latin America and the Caribbean, said, "IFC is partnering with ICA in Infrainvest through this equity investment in order to enhance the company's ability to respond to Mexico's growing infrastructure investment needs". This operation is part of IFC's integrated strategy for Mexico's infrastructure sector, which includes advice on developing the necessary framework for public-private partnerships in Mexico. The program aims to create new financing sources from the private sector for development of productive infrastructure, including an efficient risk allocation of resources between the government and the private sector. In September 2006, IFC financed the expansion, upgrade, and launch of operations for the Irapuato-La Piedad road in central Mexico, the first project offered in concession to the private sector under the new PPP framework. About Infrainvest Infrainvest is owned by Controladora de Operaciones de Infraestructura, S.A. de C.V. (CONOISA), a wholly owned subsidiary of Empresas ICA S.A.B. de C.V., Mexico's largest engineering, procurement, and construction company. About IFC in Mexico Since 1956, IFC has invested US$5.6 billion in Mexico, including US$2.2 billion in syndications, in sectors ranging from infrastructure and manufacturing to agribusiness and the financial sector, making the country the region's third-largest recipient of IFC financing in dollar value, after Brazil and Argentina. IFC committed US$260 million in FY06 in new financing in Mexico, and it held a total portfolio of US$1.1 billion, including syndications, as of July 31, 2006. IFC's strategy for Mexico focuses on enhancing the competitiveness of the private sector; further deepening the financial sector with the introduction of specialized products and markets; supporting infrastructure development and investments in areas newly opened to private sector participation; and promoting sustainable environmental and social development and good corporate governance. About Empresas ICA Empresas ICA -- http://www.ica.com.mx/-- the largest engineering, construction, and procurement company in Mexico, was founded in 1947. ICA has completed construction and engineering projects in 21 countries. ICA's principal business units include civil construction and industrial construction. Through its subsidiaries, ICA also develops housing, manages airports, and operates tunnels, highways, and municipal services under government concession contracts and/or partial sale of long-term contract rights. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 23, 2006, Standard & Poor's Ratings Services revised its long-term corporate credit rating on Empresas ICA S.A. de C.V. to 'BB-' from 'B'. The ratings were removed from CreditWatch Positive, where they were placed on April 7, 2006. S&P said the outlook is stable. FORD MOTOR: Employees Will Not Fight Warwickshire Site Closure -------------------------------------------------------------- Employees at Ford Motor Co.'s Warwickshire site in the United Kingdom will not contest the company's decision to shut the site, BBC News reports. Ford disclosed on March 29 the decision to close its site in Leamington Spa, because the company deemed it uncompetitive, BBC adds. Des Quinn of T&G union told BBC that the site's disgruntled employees held a meeting April 6 to discuss a possible action and decided not to fight the decision. The site, which had been posting GBP10 million in annual losses, will close in July 2007, BBC relates. Production of car parts will be transferred to Eastern Europe instead. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 280,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's $3 billion of senior convertible notes due 2036. FORD MOTOR: Discloses Top Executive Compensation Details -------------------------------------------------------- Ford Motor Co. filed its 2007 proxy statement with the U.S. Securities and Exchange Commission. The statement outlines compensation for select executives, including William Clay Ford, Jr., executive chairman and former chief executive officer, and Alan Mulally, president and chief executive officer. The proxy includes a table summary of the total annual compensation provided, granted to, or received by, each of the named executives for 2006. It is important to note that the amounts shown in the Summary Compensation Table associated with stock and option awards reflect the company's accounting expense recognized in our 2006 financial statements for these awards and do not correspond to the actual value that may be recognized by the named executive. Because some of the equity awards have vesting conditions, their costs generally are recognized over multiple years, and the dollar amounts shown generally reflect the company's accounting expense of the awards made during 2006 and prior years. Compensation details found in the 2007 proxy statement include: William Clay Ford, Jr., executive chairman and former chief executive officer, served as CEO from Jan. 1, 2006, until Sept. 1, 2006, and received no cash salary, bonus or other awards for 2006 pursuant to his May 2005 compensation arrangement to forego any new compensation until the company's Automotive sector achieves sustainable profitability. His 2006 compensation totaled US$10,497,292. The expense related to his previous options and other stock-based awards totaled US$9,950,585, and an increase of US$152,859 in the present value of accrued pension benefits, are included in Mr. Ford's 2006 compensation. Mr. Ford received other compensation totaling US$393,848, which included US$185,232 in value for required use of the corporate aircraft and US$85,708 for security. Alan Mulally, president and chief executive officer, served as president and CEO from Sept. 1, 2006, for the remainder of the year, and earned US$666,667 in salary. His 2006 compensation totaled US$28,183,476. Mr. Mulally received a bonus of US$18,500,000, which consisted of a US$7,500,000 hiring bonus and US$11,000,000 as an offset for forfeited performance and stock option awards at his former employer. The expense for his options and other stock-based awards totaled US$8,682,376, and includes cost recognized in 2006 for a US$5 million stock option grant that he received in March 2007 as part of his 2007 option grant. Mr. Mulally received other compensation totaling US$334,433, which included US$172,974 for required use of the corporate aircraft, and US$55,469 for relocation costs and temporary housing. Don Leclair, executive vice president and chief financial officer, earned US$1,000,933 in salary. His 2006 compensation totaled US$4,401,100. The expense for his options and other stock-based awards totaled US$795,132. In addition, he received US$1,684,000 in non-equity, performance-based, incentive plan compensation which included payment of US$364,000 under the Annual Incentive Compensation Plan and a cash settlement of US$1,320,000 under the 2006-2008 Senior Executive Retention Incentive Arrangement for certain executive officers. In addition, an increase of US$900,116 in the present value of accrued pension benefits is included in the value of Mr. Leclair's 2006 compensation. Other compensation totaled US$20,919. Mark Fields, executive vice president and president, The Americas, earned US$1,250,933 in salary. His 2006 compensation totaled US$5,574,850. The expense for his options and other stock-based awards totaled US$567,308. In addition, he received US$2,662,500 in non-equity, performance-based, incentive plan compensation which included payment of US$375,000 under the Annual Incentive Compensation Plan and a cash settlement of US$2,287,500 under the 2006-2008 Senior Executive Retention Incentive Arrangement for certain executive officers. An increase of US$437,318 in the present value of accrued pension benefits also is included in the value of Mr. Fields' 2006 compensation. Other compensation totaled US$656,791, which includes US$517,560 for personal use of the company aircraft. Pursuant to his request, Mr. Fields no longer uses the company aircraft for personal travel. Mark Schulz, executive vice president and president, International Operations, earned US$1,000,933 in salary. His 2006 compensation totaled US$2,680,384. The expense for his options and other stock-based awards totaled US$541,364. In addition, he received US$259,800 in non-equity, performance- based, incentive plan compensation under the Annual Incentive Compensation Plan. An increase of US$835,395 in the present value of accrued pension benefits also is included in the value of Mr. Schulz's 2006 compensation. Other compensation totaled US$42,892. Lewis Booth, executive vice president, Ford of Europe and Premier Automotive Group earned US$850,933 in salary. His 2006 compensation totaled US$4,274,509. The expense for his options and other stock-based awards totaled US$525,979. In addition, he received US$1,891,250 in non-equity, performance-based, incentive plan compensation which included payment of $191,250 under the Annual Incentive Compensation Plan and a cash settlement of US$1,700,000 under the 2006-2008 Senior Executive Retention Incentive Arrangement for certain executive officers. An increase of US$610,023 in the present value of accrued pension benefits also is included in the value of Mr. Booth's 2006 compensation. Other compensation totaled US$396,324, which includes costs associated with his international service assignment, including: home leave travel; temporary housing; lodging and meals during relocation; and a housing allowance. Jim Padilla, former president and chief operating officer, who retired from the company on July 1, 2006, earned US$750,133 in salary. His 2006 compensation totaled US$8,673,622. The expense for his options and other stock-based awards totaled US$6,801,256. In addition, he received US$262,500 in non- equity, performance-based, incentive plan compensation under the Annual Incentive Compensation Plan. Other compensation totaled US$467,945, which includes US$82,265 for personal use of company aircraft and US$27,096 for use of the company's car and driver service. The company's Annual Meeting of Shareholders will be held on Thursday, May 10, at 8:30 a.m. ET at the Hotel du Pont, 11th and Market Streets, Wilmington, Delaware. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 280,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes due 2036. GREENBRIER COS: Mike Roarke Reiterates "Hold" Rating on Shares -------------------------------------------------------------- McAdams Wright Ragen analyst Mike Roarke has reaffirmed his "hold" rating on The Greenbrier Cos.' shares, Newratings reports. Newratings relates that Mr. Roarke also reduced his estimates for Greenbrier. The earnings per share estimate for this year was reduced to US$1.51 from US$1.85. Greenbrier disclosed disappointing results for the second quarter of 2007, Mr. Roarke said in a research note. Mr. Roarke told Newratings that he is concerned on the near-term prospects of Greenbrier's railcar manufacturing operations. Headquartered in Lake Oswego, Ore., The Greenbrier Cos. (NYSE: GBX) -- http://www.gbrx.com/-- supplies transportation equipment and services to the railroad industry. The company builds new railroad freight cars in its manufacturing facilities in the US, Canada, and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 30 locations (post Meridian acquisition) across North America. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 9,000 railcars, and performs management services for approximately 136,000 railcars. * * * As reported in the Troubled Company Reporter-Latin America on March 30, 2007, Moody's Investors Service downgraded the ratings of The Greenbrier Cos., Inc. -- corporate family to B1, senior unsecured to B2 (LGD5, 72%) and the speculative grade liquidity rating to SGL-3. The outlook is now stable. These rating actions conclude the review for downgrade prompted by Greenbrier's acquisition of Meridian Rail Holdings Corp in late 2006. Downgrades: Issuer: Greenbrier Companies, Inc. (The) -- Probability of Default Rating, Downgraded to B1 from Ba3 -- Speculative Grade Liquidity Rating, Downgraded to SGL-3 from SGL-2 -- Corporate Family Rating, Downgraded to B1 from Ba3 -- Senior Unsecured Convertible/Exchangeable Bond/ Debenture, Downgraded to B2 72 - LGD5 from B1 64 - LGD4 -- Senior Unsecured Regular Bond/Debenture, Downgraded to a range of B2 72 - LGD5 from B1 64 - LGD4 Outlook Actions: Issuer: Greenbrier Companies, Inc. (The) Outlook, Changed To Stable From Rating Under Review GRUPO IUSACELL: Will Use Tango Telecom's Data Charging Software --------------------------------------------------------------- Grupo Iusacell has selected iAX Data -- the data charging solution of Tango Telecom, a provider of real-time convergent charging and intelligent messaging software -- for all the code division multiple access operator's pre and post paid data services. "The iAX Data charging solution from Tango Telecom enables us to take advantage of new revenue streams that our existing billing platform could not capture, such as bundle packages and tiered pricing. We evaluated a number of vendors and chose iAX Data because coupled with Tango Telecom's unrivalled expertise in convergent charging; it was the fastest and most flexible method for Iusacell to introduce data charging to prepaid subscribers," Grupo Iusacell Chief Information Officer Roberto Vargas said. iAX Data is the leading real-time data charging solution for General Packet Radio Service, CDMA and 3G networks. Part of Tango Telecom's iAX Charge suite of advanced convergent charging solutions, iAX Data enables prepaid and postpaid charging for all data and content services on both legacy prepaid and convergent billing systems. Tango Telecom Vice President of Sales and Marketing Richard Choi stated, "Iusacell joins a growing list of major operators benefiting from our evolutionary technology. With voice revenues on the decline, it is essential for operators to maximize the revenue potential from data services. iAX Data enables operators to meet this requirement by providing a feature rich, cost-effective and scalable data charging solution which can be integrated seamlessly with their existing billing platforms." About Tango Telecom Ltd. Tango Telecom develops real-time convergent charging and enhanced messaging solutions, enabling the rapid delivery of converged real-time voice, SMS, data and content services. Tango Telecom's global client base includes operators such as Turkcell, Vodafone, mtc touch, Indosat and America Movil. Tango Telecom's iAX product suite is available through a global network of systems integration partners, resellers and OEMs. About Grupo Iusacell Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV (BMV: CEL) -- http://www.iusacell.com-- is a wireless cellular and PCS service provider in Mexico with a national footprint. Independent of the negotiations towards the restructuring of its debt, Grupo Iusacell reinforces its commitment with customers, employees and suppliers and guarantees the highest quality standards in its daily operations offering more and better voice communication and data services through state-of-the-art technology, including its new 3G network, throughout all of the regions in which it operate. As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000 at Dec. 31, 2004. Grupo Iusacell filed for bankruptcy protection on June 18 under Mexican Law to prevent creditors from disrupting its debt restructuring talks. On July 14, 2006, Gramercy Emerging Markets Fund, Pallmall LLC and Kapali LLC, owed an aggregate amount of US$55,878,000 filed an Involuntary Chapter 11 Case against Grupo Iusacell's operating subsidiary, Grupo Iusacell Celular, SA de CV (Bankr. S.D.N.Y. Case No. 06-11599). Alan M. Field, Esq., at Manatt, Phelps & Phillips, LLP, represents the petitioners. Iusacell Celular then filed for bankruptcy protection under Mexican Law on July 18. The involuntary petition in the United States was dismissed in December 2006. KRISPY KREME: Incurs US$24.4 Mil. Net Loss in Qtr. Ended Jan. 28 ---------------------------------------------------------------- Krispy Kreme Doughnuts Inc. reported financial results for the fourth quarter and fiscal year ended Jan. 28, 2007, and plans to file with the Securities and Exchange Commission its Annual Report on Form 10-K. Revenues for the fourth quarter decreased 8.2% to US$112.2 million compared to US$122.2 million in the fourth quarter of last year. Company Stores sales decreased 11.2% to US$79.2 million, revenues from franchise operations increased 34.0% to US$5.8 million, and Krispy Kreme Supply Chain ("KK Supply Chain," formerly called "Krispy Kreme Manufacturing and Distribution") revenues decreased 5.2% to US$27.2 million. Fourth quarter system wide sales decreased 6.4% from the fourth quarter of last year. System wide average weekly sales per store increased approximately 2% from the prior year period to approximately US$39,500 per store, and Company Store average weekly sales per store increased to approximately US$54,100 per store. The higher Company Store average weekly sales per store data reflect, among other things, store closures (including those formerly operated by consolidated franchisees) and the related shift in off-premises doughnut production into a fewer number of factory stores. Excluding the stores formerly operated by consolidated franchisees, Company Store average weekly sales per store increased approximately 9% versus the prior comparable period. The net loss for the fourth quarter was US$24.4 million compared to a net loss of US$37.7 million in the comparable period last year. The net loss for the quarter includes a charge related to the settlement of litigation of approximately US$16.0 million, representing the increase from Oct. 29, 2006, to Jan. 28, 2007, in the estimated fair value of the securities issued by the company on March 2, 2007, in connection with the previously announced settlement of the class action litigation and partial settlement of the shareholder derivative action. During the fourth quarter, the company recorded a US$2.1 million provision for doubtful accounts substantially all of which relates to receivables from franchisees. Also during the quarter, the company recorded a US$1.3 million charge related to the proposed settlement of certain wage and hour complaints lodged against the company. During the quarter, 28 new Krispy Kreme stores, comprised of 12 factory stores and 16 satellites, were opened system wide, and 14 stores, comprised of 9 factory stores and 5 satellites, were closed. This brings the total number of stores system wide at year-end to 395, consisting of 296 factory stores and 99 satellites. For fiscal 2007, revenues decreased 15.1% to US$461.2 million compared to US$543.4 million in fiscal 2006. Company Stores sales decreased 18.1% to US$326.2 million, revenues from franchise operations increased 14.6% to US$21.1 million and KK Supply Chain sales to franchise stores decreased 10.0% to US$113.9 million. System wide sales decreased 11.9% compared to fiscal 2006. The net loss for fiscal 2007 was US$42.2 million compared with a net loss of US$135.8 million in fiscal 2006. Impairment charges and lease termination costs were US$12.5 million and US$55.1 million, in fiscal 2007 and 2006, respectively, and litigation settlement costs were US$16.0 million compared to US$35.8 million, respectively. In fiscal 2007 and 2006, the company incurred professional fees, net of anticipated insurance recoveries, of approximately US$9.0 million and US$31.8 million, respectively, associated with internal and external investigations, litigation and the interim management firm engaged by the company in January 2005. The fiscal 2007 amount includes a credit of US$2.3 million recorded in the fourth quarter resulting from reimbursements from insurance companies of costs and expenses in excess of amounts previously estimated. "We have made progress during the past year, including resolving important legal matters, restoring positive cash flow, getting current with our financials, and closing a new senior secured credit facility," said Daryl Brewster, President and Chief Executive Officer of Krispy Kreme Doughnuts, Inc. "Additionally, we've seen stability in our overall average unit volume, developed a pipeline for new products and seen growth internationally utilizing a flexible real estate model." About Krispy Kreme Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) -- http://www.krispykreme.com/-- is a branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. There are currently approximately 320 Krispy Kreme stores and 80 satellites operating system wide in 43 U.S. states, Australia, Canada, Mexico, the Republic of South Korea and the United Kingdom. Headquartered in Winston-Salem, North Carolina, Freedom Rings LLC is a majority-owned subsidiary and franchisee partner of Krispy Kreme Doughnuts, Inc., in the Philadelphia region. Freedom Rings operates six out of the approximately 360 Krispy Kreme stores and 50 satellites located worldwide. The Company filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del. Case No. 05-14268). M. Blake Cleary, Esq., Margaret B. Whiteman, Esq., and Matthew Barry Lunn, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it estimated US$10 million to US$50 million in assets and debts. Headquartered in Oak Brook, Illinois, Glazed Investments, LLC, is a 97%-owned unit of Krispy Kreme. Glazed filed for chapter 11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-00932). The bankruptcy filing will facilitate the sale of 12 Krispy Kreme stores, as well as the franchise development rights for Colorado, Minnesota and Wisconsin, for approximately USUS$10 million to Westward Dough, the Krispy Kreme area developer for Nevada, Utah, Idaho, Wyoming and Montana. Daniel A. Zazove, Esq., at Perkins Coie LLP represents Glazed in its restructuring efforts. When Glazed filed for protection from its creditors, it estimated assets and debts between US$10 million to US$50 million. KremeKo Inc., Krispy Kreme's Canadian franchisee, is currently restructuring under the Companies' Creditors Arrangement Act. Pursuant to the Court's Initial Order, Ernst & Young Inc. was appointed as Monitor in KremeKo's CCAA proceedings. The Monitor is attempting to sell the KremeKo business. The U.S. District Court for the Middle District of North Carolina has set Feb. 7, 2007, as the hearing date for the final approval of the terms of the settlement of the shareholder derivative action entitled Wright v. Krispy Kreme Doughnuts Inc., et al. MCDERMOTT INT'L: Repays US$250MM Loan of Babcock Credit Facility ---------------------------------------------------------------- McDermott International Inc. has accelerated the repayment of the US$250 million term loan portion of The Babcock & Wilcox Co.'s credit facility. This loan carried interest expense at LIBOR plus 3.0%, and the company does not incur any penalty for the early retirement of this debt. Following this retirement, McDermott does not have any significant debt outstanding. Additionally, the company's subsidiary, McDermott Inc., received this week US$272 million from the United States Internal Revenue Service. This federal tax refund resulted from carrying back to prior tax years the tax loss generated in 2006, primarily as a result of US$955 million of asbestos-related expenses paid last year associated with the settlement of Babcock & Wilcox's reorganization. A number of these prior tax years are currently open, and therefore certain adjustments may still occur before final settlement of these tax years. McDermott International, Inc. (NYSE:MDR) -- http://www.mcdermott.com/--is a leading worldwide energy services company. McDermott's subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the energy and power industries, including the U.S. Department of Energy. The company operates in most major offshore producing regions throughout the world, including the U.S. Gulf of Mexico, Mexico, the Middle East, India, the Caspian Sea and Asia Pacific. Operations in this segment are primarily conducted through its subsidiary, J. Ray McDermott, S.A. * * * As reported in the Troubled Company Reporter on Oct. 6, 2006, Moody's Investors Service's confirmed its B1 Corporate Family Rating for McDermott International Inc. PORTRAIT CORP: Assumes Lease Agreement with Lakemont Industrial --------------------------------------------------------------- The Honorable Adlai S. Hardin, Jr., of the U.S. Bankruptcy Court for the Southern District of New York authorized Portrait Corporation of America Inc. and its debtor-affiliates to assume a lease agreement between the Debtor and Lakemont Industrial Holding Co., dated June 26, 2003. The Court further granted the Debtors' request to reject unexpired non-residential real property leases with Award Realty, Genelle Hardin and Sawgrass Commons, LLC. Pursuant to the Lakemont Agreement, the Debtors lease premises in Lakemont West Building IV in Charlotte, North Carolina, where they conduct warehouse operations for professional portrait photography products. The Lakemont Agreement grants the Debtors the use of the premises consisting of 59,884 square feet of space with an obligation to pay a monthly base rent of US$17,451 plus estimated monthly expenses of US$4,480. The Debtors tell the Court that the assumption of the Lakemont Agreement is necessary to allow the Debtors to continue its operations while the rejection of the agreement would pose greater administrative risks than assumption. The Debtors have determined that it would be difficult to find a replacement facility for a comparable price and in any event, relocation of the Debtors' warehouse operations would be extremely expensive. The Debtors also relates that the rejection of certain leases with ARGH and Sawgrass is necessary because the Debtors no longer require the use of the premises covered by the leases. The rejection of these leases would also eliminate the incurrence of any administrative expenses. Portrait Corporation of America Inc. -- http://pcaintl.com/-- provides professional portrait photography products and services in North America. The Company operates portrait studios within Wal-Mart stores and Supercenters in the United States, Canada, Mexico, Germany and the United Kingdom. The Company also operates a modular traveling business providing portrait photography services in additional retail locations and to church congregations and other institutions. Portrait Corporation and its debtor-affiliates filed for Chapter 11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case No. 06-22541). John H. Bae, Esq., at Cadwalader Wickersham & Taft LLP, represents the Debtors in their restructuring efforts. Berenson & Company LLC serves as the Debtors' financial advisor and investment banker. Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP represents the Official Committee of Unsecured Creditors. Peter J. Solomon Company serves as financial advisor for the Committee. At June 30, 2006, the Debtor had total assets of US$153,205,000 and liabilities of US$372,124,000. UNITED RENTALS: Board Exploring Strategic Alternatives ------------------------------------------------------ United Rentals Inc.'s board of directors commenced a process to explore the possible sale of the company to maximize shareholder value. The company does not expect to disclose further developments regarding the process until its board of directors has completed its evaluation. The company has retained UBS Investment Bank and Credit Suisse to act as financial advisors. The company said that there is no assurance that the exploration of alternatives will result in a transaction. About United Rentals Greenwich, Conn.-based United Rentals Inc. (NYSE: URI) -- http://unitedrentals.com/-- is an equipment rental company, with an integrated network of more than 760 rental locations in 48 states, 10 Canadian provinces, and Mexico. The company's 13,900 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers for rent over 20,000 classes of rental equipment. United Rentals is a member of the Standard & Poor's MidCap 400 Index and the Russell 2000 Index(R). * * * As reported in the Troubled Company Reporter-Latin America on April 12, 2007, Moody's Investors Service affirmed the ratings of United Rentals Inc., but changed the outlook to negative from stable following the company's recent announcement that its board of directors has authorized commencement of a process to explore a broad range of strategic alternatives to maximize shareholder value, including a possible sale of the company. The company's Speculative Grade Liquidity rating of SGL-2 is unchanged. Ratings affirmed with a negative outlook are: -- Corporate family rating at B1; -- Probability of default at B1; -- Senior secured bank credit facility at Ba1, but its loss given default assessment is changed to LGD2 (12%) from LGD2 (16%); -- Senior unsecured at B1, but its loss given default assessment is changed to LGD3 (45%) from LGD4 (52%); -- Senior subordinate at B3, but its loss given default assessment is changed to LGD5 (81%) from LGD5 (83%); and -- Quarterly Income Preferred Securities at B3 (LGD6, 96%) issued by United Rentals Trust I. UNITED RENTALS: CEO Wayland Hicks to Retire ------------------------------------------- United Rentals Inc. disclosed that Wayland R. Hicks, 64, will retire as chief executive officer effective at the annual shareholders' meeting on June 4, 2007, and will continue to serve on the board as vice chairman. Mr. Hicks will be succeeded by Michael J. Kneeland as interim chief executive officer. "We deeply appreciate Wayland's significant contributions over the past decade and the leadership he has demonstrated," Bradley S. Jacobs, chairman of United Rentals, said. "We are fortunate that Wayland will continue to serve on our board and offer his insights as we take this process forward." "We're pleased that the position of interim chief executive officer will be filled by Michael Kneeland, who has been with the company since 1998," Mr. Jacobs added. "Mike has more than 25 years of experience in the equipment rental industry and is extremely knowledgeable about our operations and markets." At present, Mr. Kneeland serves as the company's executive vice president and chief operating officer. About United Rentals Greenwich, Conn.-based United Rentals Inc. (NYSE: URI) -- http://unitedrentals.com/-- is an equipment rental company, with an integrated network of more than 760 rental locations in 48 states, 10 Canadian provinces, and Mexico. The company's 13,900 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers for rent over 20,000 classes of rental equipment. United Rentals is a member of the Standard & Poor's MidCap 400 Index and the Russell 2000 Index(R). * * * As reported in the Troubled Company Reporter-Latin America on April 12, 2007, Moody's Investors Service affirmed the ratings of United Rentals Inc., but changed the outlook to negative from stable following the company's recent announcement that its board of directors has authorized commencement of a process to explore a broad range of strategic alternatives to maximize shareholder value, including a possible sale of the company. The company's Speculative Grade Liquidity rating of SGL-2 is unchanged. Ratings affirmed with a negative outlook are: -- Corporate family rating at B1; -- Probability of default at B1; -- Senior secured bank credit facility at Ba1, but its loss given default assessment is changed to LGD2 (12%) from LGD2 (16%); -- Senior unsecured at B1, but its loss given default assessment is changed to LGD3 (45%) from LGD4 (52%); -- Senior subordinate at B3, but its loss given default assessment is changed to LGD5 (81%) from LGD5 (83%); and -- Quarterly Income Preferred Securities at B3 (LGD6, 96%) issued by United Rentals Trust I. VITRO S.A.B.: Will Release 2007 First Quarter Results on May 2 -------------------------------------------------------------- Vitro S.A.B. de C.V. has pre-released its 2007 first quarter financial results. Consolidated sales rose 6.0 percent year- over-year from US$568 million to US$603 million. Consolidated EBITDA rose 30% year-over-year from US$73.7 million to US$95.8 million. 2007 EBITDA reached US$393 million. The company expects to release its first quarter results on May 2, 2007, after market close. Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a leading global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 18, 2007, Moody's Investors Service assigned a global foreign currency rating of B2 to Vitro, SAB de CV's proposed US$750 million senior unsecured guaranteed notes due 2012 and 2017, which are being offered in the context of a major financial restructuring initiative the company announced on Jan. 11, 2007. The rating assigned: Vitro, SAB de CV: -- Proposed US$750 million senior unsecured guaranteed notes due 2012 and 2017, at 2. The ratings affirmed: Vitro, SAB de CV: -- Corporate Family at B2; -- US$225 million 11.75% senior unsecured notes due 2013, at Caa1, with the possibility of upgrade to B2 upon execution of the proposed guarantee structure consistent with the proposed notes; -- US$152M 11.375% senior unsecured notes due 2007, at Caa1, and withdrawn upon successful conclusion of the Tender Offer. The ratings outlook changed to stable from negative. Vitro Envases Norteamerica, SA de CV: -- Corporate family, at B2, and withdrawn upon conclusion joy of the proposed transactions; and -- US$250 million 10.75% senior secured notes due 2011, at B2, and withdrawn upon successful conclusion of the Tender Offer. The rating outlook remains stable until such time that the ratings are withdrawn. As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2007, Standard & Poor' Ratings Services raised its long- term senior unsecured credit rating on Mexico-based glass manufacturer Vitro S.A.B. de C.V.'s (Vitro; B/Stable/--) notes due 2013 to 'B' from 'CCC+'. ================= N I C A R A G U A ================= XEROX CORP: Passes U.S. Envt'l Agency's Energy Saving Standard -------------------------------------------------------------- Xerox Corp. has passed the U.S. Environmental Protection Agency's raised energy-saving product standard. More than half of the company's office and production product offerings meet the more rigorous new ENERGY STAR(R) requirements that went into effect on April 1. Previously the ENERGY STAR criteria for office copiers, printers and multifunction systems measured power consumed in standby and low-power modes. The new standard asks a different question: How much energy would the device use during a typical week? It measures the energy consumed if the system mimics the tempo of a normal office, running a sample job mix with downtime for lunch, overnight and on weekends. The result is a Typical Electricity Consumption or TEC figure that must meet the EPA's tough new requirements in order for a product to achieve ENERGY STAR status. Patricia Calkins, Xerox Vice President - Environment, Health and Safety, said, "The EPA's new ENERGY STAR requirements raise the bar so significantly that only 25 percent of products in the marketplace were expected to meet the new criteria. At Xerox, we knew we could do better than the industry average, and we did with more than 50 percent of our current product line passing this tough test. Over time, the standards will get even tougher. We'll remain focused on improving our entire product line to meet these evolving requirements. And, we expect to qualify more products over time." Environment and Energy Conservation Commitment As an ENERGY STAR Charter Partner since the early 1990s, Xerox has long applied its technical expertise to building energy savings into its products. About two years ago, it took a fresh look at all the subsystems in its laser-printing based products, hoping to bring the power usage down even further. As a result, engineers identified four opportunities to cut power consumption: the fuser, the toner, the electronic controls and the xerographic system. In the xerographic process, a copy or print is made by digitally capturing the image to be printed; exposing the image on a photoreceptor; developing the image with pigmented powder, which is called toner; and then transferring the image created by the toner onto paper and heating it to fuse the image and make a print. Kenneth J. Buck, a senior systems engineer who worked on the project, said, "One example of the company's success is the WorkCentre(R) 4150, which prints at 45 pages per minute. It's a black-and-white, desktop multifunction system for small and medium-sized businesses, and it uses 11.9 kilowatt-hours per week of electricity. That's roughly half the energy consumption of a comparable 45 page-per-minute multifunction system of three years ago." Faster Fusing Office products like printers, copiers, and multifunction systems are active about 10 percent of the time. The rest of the time, they are in a standby or "sleep" mode, where the fuser roll cools and uses less power. The dilemma: The "deeper" the sleep, the less power they use, but the longer it takes before they are ready to print again. Xerox developed fuser rolls with thinner walls that would heat up faster for some products; for others, it changed from a roller to a thin metal belt with a heater. As a result of the technical changes to the product line, one new black-and-white product will use 75 percent less energy to emerge from the deep sleep than it did previously. Warm-up times for Xerox's color laser printers have also been significantly reduced. Improved Toner and Controls Xerox is using toner made by its patented emulsion aggregation process in more products to reduce energy consumption. Not only does the EA manufacturing process require less energy, but the toner consumes less energy when used to make a print. That's because its rich colors and regular particle size mean devices need less EA Toner than conventional toner to create an image, so there's less thermal mass to heat. Xerox scientists have also worked to develop toners with lower melting points, which consume less energy in the fuser. These have enabled Xerox to reduce fusing temperatures by about 10 percent in some products. In the xerographic system, engineers have developed ways to charge and erase the photoreceptor more efficiently using less energy. Other innovations include redesign of the control electronics in the devices to take advantage of next-generation processors and save energy. Energy efficiency developments are part of Xerox's ongoing investments in sustainable innovation -- or "green products" -- that deliver measurable benefits to the environment and help Xerox customers work in more environmentally friendly offices. These include solid ink printing technology, which generates 90 percent less waste than comparable laser printers, document- management services and software that improve workers' productivity while reducing dependency on paper, and other paper-saving innovations. In addition, Xerox is contributing US$1 million to The Nature Conservancy to develop science-based tools and systems that will help the paper industry better manage ecologically important forest land. The funding focuses on the Canadian Boreal Forest as well as the forests of the southern United States, Indonesia and Brazil's Atlantic Forest. Headquartered in Stamford, Connecticut, Xerox Corp. -- http://www.xerox.com/-- develops, manufactures, markets, services and finances a range of document equipment, software, solutions and services. Xerox operates in over 160 countries worldwide and distributes products in the Western Hemisphere through divisions, wholly owned subsidiaries and third-party distributors. The company has operations in Japan, Italy and Nicaragua. * * * As reported in the Troubled Company Reporter-Latin America on April 4, 2007, Fitch Ratings has affirmed Xerox Corp.'s and its subsidiary's ratings: Xerox Corp. -- Trust preferred securities at 'BB'; -- Issuer Default Rating at 'BBB-'; -- Unsecured credit facility at 'BBB-'; and -- Senior unsecured debt at 'BBB-'. Xerox Credit Corp. -- Issuer Default Rating at 'BBB-'; and -- Senior unsecured debt at 'BBB-'. As reported in the Troubled Company Reporter-Latin America on April 4, 2007, Standard & Poor's Ratings Services placed its ratings on Xerox Corp., including the 'BB+' corporate credit rating, on CreditWatch with positive implications. The CreditWatch placement reflects the company's announcement that it has reached an agreement in principle to acquire Global Imaging Systems Inc. for approximately US$1.5 billion in cash. =========== P A N A M A =========== CABLE & WIRELESS: Moody's Assigns Loss-Given-Default Rating ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and Technology sectors last week, the rating agency confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability-of- Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. * Issuer: Cable & Wireless Plc Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% * Issuer: Cable & Wireless International Finance B.V. Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- GBP200 million 8.625% Senior Unsecured Regular Bond/Debenture Due 2019 B1 LGD4 60% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-Default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in London, Cable & Wireless PLC -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. Its principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. CABLE & WIRELESS: Nears Supply Deal with Virgin Media ----------------------------------------------------- Cable & Wireless plc is on the verge of signing a contract to supply broadband, phone and basic television services to Virgin Media Inc. (fka NTL Inc.), allowing the latter to reach customers not covered by its network, Paul Durman writes for The Sunday Times. According to the report, Virgin Media is no longer in discussions with other suppliers while Tiscali SpA already indicated its lack of interest in the deal. Virgin Media is due to announce its decision next month. C&W will deliver the service through its wholesale broadband arm, formerly known as Bulldog Communications, The Sunday Times relates. Steve Burch, chief executive of Virgin Media, said this was still a big step forward because "there are 12 million homes out there that we've never sold anything to." The paper reveals that competing with BSkyB has been a struggle for the cable television industry due to a lack of national reach resulting from restricted geographical franchises. About Cable & Wireless Headquartered in London, Cable & Wireless PLC -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. Its principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. * * * Cable & Wireless Plc carry these ratings: * Moody's Investors Service -- Long-Term Corporate Family Rating: Ba3 -- Senior Unsecured Debt: B1 -- Short-Term: NP -- Outlook: Negative * Standard & Poor's -- Long-Term Foreign Issuer Credit Rating: BB- -- Long-Term Local Issuer Credit Rating: BB- -- Short-Term Foreign Issuer Credit Rating: B -- Short-Term Local Issuer Credit Rating: B -- Outlook: Negative CHIQUITA BRANDS: Unit Grants US$2-Million Funds in Nine Projects ---------------------------------------------------------------- Fresh Express has declared that nine research teams are being awarded up to US$250,000 each to study the Escherichia coli O157:H7 pathogen to advance science-based practices to prevent its occurrence in fresh produce. Fresh Express is funding up to US$2 million collectively in research under the guidance of an independent scientific advisory panel as a means to support industry wide food-safety solutions, even though Fresh Express products were not involved in the recent outbreak and never have been shown to have caused an outbreak of food-borne illness. "The quality of the proposals was extraordinary," said Dr. Michael T. Osterholm, Ph.D., M.P.H., director of the University of Minnesota Center for Infectious Disease Research & Policy and the voluntary chairman of the Fresh Express Blue Ribbon Scientific Advisory Panel. "We were all extremely impressed by the innovative approaches and new directions being applied to E. coli O157:H7 research to better understand and ultimately minimize the threat of this pathogen in fresh produce." "We are grateful to the scientific panel for their intensive work and extremely pleased with the depth and scope of the nine research projects selected," said Tanios E. Viviani, president of Fresh Express. "Fresh Express is committed to bringing healthy, safe products to consumers, and we plan to share any research findings as widely as possible to help stimulate the development of advanced safeguards within the fresh-cut industry." According to food safety and health authorities, much remains to be learned about how the E. coli O157:H7 strain responsible for last year's fresh spinach and lettuce food-borne illness outbreaks contaminated those foods, making new research about this important pathogen and how to prevent its contamination in leafy greens and fresh produce critically important to consumers and the fresh produce industry. One-year funding awards of up to US$250,000 will be awarded to the following institutions and principal investigators: -- Subsurface contamination and internalization of E. coli O157:H7 in pre-harvest lettuce Michael P. Doyle, Ph.D., Center for Food Safety, University of Georgia -- Movement of E. coli O157:H7 in spinach and dissemination to leafy greens by insects Jacqueline Fletcher, Ph.D., Dept. of Entomology and Plant Pathology, Oklahoma State University -- Interaction of E. coli O157:H7 with fresh leafy green produce Jorge A. Giron, Ph.D., Dept. of Immunobiology, University of Arizona -- Factors that influence the ability of E. coli O157:H7 to multiply on lettuce and leafy greens Linda J. Harris, Ph.D., Western Institute for Food Safety and Security, University of California-Davis -- Fate of E. coli O157:H7 on fresh and fresh-cut iceberg lettuce and spinach in the presence of normal background microflora Mark A. Harrison, Ph.D., Dept. of Food Science and Technology, University of Georgia -- Determining the environmental factors contributing to the extended survival or regrowth of food-borne pathogens in composting systems Xiuping Jiang, Ph.D., Dept. of Food Science and Human Nutrition, Clemson University -- Quantifying the risk of transfer and internalization of E. coli O157:H7 during processing of leafy greens Elliot T. Ryser, Ph.D., National Food Safety and Toxicology Center, Michigan State University -- A novel approach to investigate internalization of E. coli O157:H7 in lettuce and spinach Manan Sharma, Ph.D., Food Technology and Safety Laboratory, Animal and Natural Resources Institute, USDA-Agricultural Research Service -- Sanitization of leafy vegetables by integrating gaseous ozone treatment into produce processes Ahmed Yousef, Ph.D., Dept. of Microbiology, Ohio State University Made up of six nationally-recognized food safety experts from federal and state food safety-related agencies and academia, the all-voluntary independent Blue Ribbon Scientific Advisory Panel carefully deliberated the merits of each proposal against a rigorous set of criteria with corresponding point system from a total field of 65 before selecting the nine they considered to be the most innovative, most promising and most attuned to the panel's research priorities. Members of the panel, in addition to Dr. Osterholm, include: * Dr. Jeff Farrar, California Department of Health Services; * Dr. Bob Buchanan, U.S. Food and Drug Administration; * Dr. Robert Tauxe, U.S. Centers for Disease Control and Prevention; * Dr. Bob Gravani, Cornell University and Dr. Craig Hedberg, University of Minnesota. The five areas of needed research identified by the panel and outlined as a part of the request for proposal process included: -- The potential for the internalization of E. coli O157:H7 into lettuce tissue; -- Mitigation strategies and technologies; -- Environmental sources and vectors for contamination; -- Ability of E. coli O157:H7 to multiply in the presence of normal background flora; and, -- Ability of E. coli O157:H7 and other enteric pathogens to survive composting processes. About Fresh Express Fresh Express, the nation's No.1 salad producer, is a subsidiary of Chiquita Brands International, Inc. (NYSE: CQB) and has been a leader in fresh foods for more than 80 years. Fresh Express is dedicated to providing consumers with healthy, convenient ready- to-eat spinach, salads, vegetables and fruits. With the invention of its special Keep Crisp(TM) bag beginning in the early 1980s, Fresh Express pioneered the now multi-billion dollar retail packaged salad category and was the first to make them available nationwide. About Chiquita Brands 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'. ===================== P U E R T O R I C O ===================== FEDERATED DEPARTMENT: Sales for Five-Week Period Up by 1.5% ----------------------------------------------------------- Federated Department Stores Inc. reported total sales of US$2.288 billion for the five weeks ended April 7, 2007, an increase of 1.5 percent compared to total sales of US$2.255 billion in the same period last year. On a same-store basis, Federated Department's sales for March were up 2.3 percent. This compares with the company's guidance for a same-store sales increase of 2.5 percent to 4 percent in March. For the year to date, Federated Department's sales totaled US$4.089 billion, up 0.8 percent from total sales of US$4.055 billion in the first nine weeks of 2006. On a same-store basis, Federated Department's year-to-date sales were up 1.8 percent. "March sales fell just short of our expectations in most regions across the country, largely attributable to weakness in home- related merchandise categories," said Terry J. Lundgren, Federated Department's chairman, president and chief executive officer. "Unseasonably cold weather as new spring merchandise flowed into the stores in the pre-Easter period also contributed to disappointing sales in the month." Federated Department continues to expect same-store sales in April to increase by 2.5 percent to 4 percent. Sales in the first quarter are expected to be at the low end of previous guidance of US$6 billion to US$6.1 billion. The company will host a presentation to analysts and investment professionals from 9:30 a.m. to 12:30 p.m. ET on April 24 in New York City. A web cast of the presentation will be accessible to the media and general public in real time via the company's Web site. The web cast will be archived for replay within 24 hours of the conclusion of the presentation. Federated Department Stores Inc. (NYSE:FD)(NYSE Arca:FD) - http://www.fds.com/-- is a department stores operator, with more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico, operating under the banners Macy's and Bloomingdale's. The August 2005 acquisition of May nearly doubled Federated's scale -- sales in fiscal 2006, the first full year of combination, were US$27 billion. * * * As reported in the Troubled Company Reporter-Latin America on March 1, 2007, Moody's Investors Service downgraded Federated Department Stores, Inc.'s long term senior unsecured debt rating to Baa2 from Baa1, and affirmed the company's Prime 2 rating for commercial paper, following the company's announcement that the Board had authorized a US$4 billion additional share buyback program. Ratings downgraded: -- Senior unsecured debt rating to Baa2 from Baa1 -- Preferred shelf rating to (P) Ba1 from (P) Baa3 Rating affirmed: -- Prime 2 rating for commercial paper MUSICLAND HOLDING: Plan Confirmation Hearing Delayed to April 26 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has continued the hearing to consider the confirmation of Musicland Holding Corp. and its debtor-affiliates' Second Amended Plan of Liquidation to April 26, 2007. The Court have previously ruled that the deadline set forth in the Plan for the occurrence of the Plan Effective Date is extended until March 30, 2007, and the deadline set forth in the Plan for the Confirmation Order to become a Final Order is extended until April 30, 2007. The Debtors, the Official Committee of Unsecured Creditors, and the current members of the Informal Committee of Secured Trade Vendors further agree that the deadline set forth in the Plan for: (a) the Confirmation Order to become a Final Order is extended until April 30, 2007; and (b) the occurrence of the Plan Effective Date is extended until May 31, 2007. Headquartered in New York, New York, Musicland Holding Corp., is a specialty retailer of music, movies and entertainment-related Products in the United States, including Puerto Rico. The Debtor and 14 of its affiliates filed for chapter 11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in their restructuring efforts. Mark T. Power, Esq., at Hahn & Hessen LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated more than US$100 million in assets and debts. (Musicland Bankruptcy News, Issue No. 30; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update On May 12, 2006, the Debtors filed their Joint Plan of Liquidation with the Court. On Sept. 14, 2006, they filed an amended Plan and a Second Amended Plan on Oct. 13, 2006. The Court approved the adequacy of the Amended Disclosure Statement on Oct. 13, 2006. PATHEON INC: Moody's Rates Proposed US$225-Mln Senior Loan at B1 ---------------------------------------------------------------- Moody's Investors Service assigned a rating of B1 to the proposed US$225 million senior secured credit facility of Patheon Inc. The credit facility consists of a US$75 million secured asset based revolver and a US$150 million Term Loan B. The company intends to use the proceeds from the term loan along with investments from JLL Partners to refinance the company's existing credit facility. Concurrently, Moody's assigned Patheon a Corporate Family Rating of B2. The ratings outlook is stable. The B2 Corporate Family Rating is supported by the company's large and diverse revenue base, consistent operating margins and sufficient liquidity. However, the ratings also reflect the following concerns: a low level of free cash flow generation due to high capital spending; low interest coverage; and a minimal amount of earnings and profits. The stable outlook reflects Moody's expectations of revenue growth of 3% to 5% over the near term with gross margins remaining in the 25% to 30% range and annual operating cash flow generation of US$50 to US$70 million. Due to projected capital spending of US$50 to US$65 million a year, Moody's anticipates that the company will generate a minimal amount of free cash flow. As a result, Moody's assumes that the company will generate operating cash flow to adjusted debt of 10% to 13% and free cash flow to adjusted debt of 0% to 3% over the next two years. Moody's does not anticipate that the company will engage in significant shareholder initiatives, such as the initiation of a dividend, nor in any major acquisition activity. Moody's believes that Patheon will use its cash flow, to the extent available, to continue investing in business development and to reduce debt. Moody's assigned these ratings: -- Corporate Family Rating, B2 -- Probability of Default Rating, B2 -- US$75-million Senior Secured Asset Based Revolver, B1 (LGD3, 37%) -- US$150-million Senior Secured Term Loan B, B1 (LGD3, 37%) The ratings outlook is stable. Based in Mississauga, Canada, Patheon Inc -- http://www.patheon.com/-- is a leading global provider of drug development and manufacturing services to the pharmaceutical industry. It operates a network of 14 facilities in the United States, Canada, Puerto Rico and Europe and generated net revenues of US$726 million for the 12 months ended Jan. 31, 2007. PIER 1: Incurs US$58,696,000 Net Loss in Quarter Ended March 3 -------------------------------------------------------------- Pier 1 Imports Inc. posted results for the fourth quarter and fiscal year ended March 3, 2007. For the fourth quarter, the company reported a net loss from continuing operations of US$58,696,000, or US$0.67 per share. For the fiscal year, the company reported a net loss from continuing operations of US$227,238,000, or US$2.59 per share. Results for both periods included unusual charges and the effects of adopting a new accounting pronouncement, which are detailed below. Excluding these charges, the company's net loss from continuing operations on a non-GAAP basis for the quarter would have been US$12,937,000 or US$0.14 per share and US$113,121,000, or US$1.28 per share for the fiscal year. Fourth Quarter Results Fourth quarter sales were US$473,712,000, down 6.4% from last year's sales of US$506,022,000, and comparable store sales declined 11.0%. For the fourth quarter, merchandise margins decreased 610 basis points from the year-ago period related primarily to an inventory valuation charge of approximately US$32.5 million, or 690 basis points. This inventory charge was required to value certain excess inventory at the lower of cost or market based on a strategic decision to expedite the process to clear out the inventory by the end of the first quarter. This merchandise is comprised primarily of modern craftsman style items. Gross profit, after store occupancy costs, declined 740 basis points versus last year. Selling, general and administrative costs increased 4.5% from the same period last year primarily as a result of increased marketing expenses and the effects of unusual and other one-time charges. During the quarter, the company incurred settlement and curtailment charges of US$6.8 million in connection with its retirement plans. The charges were incurred as a result of write-offs of prior service cost and unamortized actuarial gains and losses in a defined benefit pension plan that was left with no active participants after the retirement of two senior executives whose obligations were settled in fiscal 2007. The company's reported net loss of US$58.7 million or US$0.67 per share for the fourth quarter included US$45.8 million in unusual and other one-time charges. The charges consisted of: -- non-cash charge of US$32.5 million or US$0.37 per share for excess inventory write-down; -- one-time charges of US$6.8 million or US$0.08 per share in settlement and curtailment charges incurred in connection with retirement plans; -- non-cash charge of US$4.1 million or US$0.05 per share in connection with goodwill impairment of Pier 1 Kids; and -- non-cash charge of US$2.4 million or US$0.03 per share for store-level asset impairment charges. Full Year Fiscal 2007 Results Total fiscal 2007 sales were US$1,623,216,000, a decrease of 8.6% from last year's sales of US$1,776,701,000, and comparable store sales declined 11.3%. Merchandise margins decreased 230 basis points from the prior year and gross profit, after store occupancy costs, declined 470 basis points versus last year. Selling, general and administrative costs increased 10.3% primarily due to increases in marketing expenses, impairment charges and other one-time or unusual charges. Federal income tax benefit recorded for the year was related only to losses that can be carried back to offset income in prior years. Although any additional losses may be carried forward for several years to offset future income, no tax benefit will be provided until such future earnings are realized. The company's reported fiscal 2007 net loss from continuing operations of US$227.2 million or US$2.59 per share included the effects of US$114.1 million in unusual charges. These charges recorded during the year included: -- non-cash charge of US$32.5 million or US$0.37 per share for excess inventory write-downs; -- non-cash charge of US$32.3 million or US$0.37 per share for store-level asset impairment charges; -- non-cash charge of US$24.6 million or US$0.28 per share to establish a valuation allowance against the company's net deferred income tax assets that arose in prior years; -- one-time charges of US$6.8 million or US$0.08 per share in settlement and curtailment charges incurred in connection with retirement plans; -- a charge of US$4.9 million or US$0.06 per share attributable to litigation settlements and related costs; -- non-cash charge of US$4.5 million or US$0.05 per share for stock option expense in compliance with SFAS 123R; -- US$4.5 million or US$0.05 per share charge for relocation and integration of the Pier 1 Kids' headquarters and warehouse into Pier 1 facilities; and -- non-cash charge of US$4.1 million or US$0.05 per share in connection with goodwill impairment of Pier 1 Kids. The Company ended the year with cash and cash equivalents of US$167.2 million and no cash borrowings under its line of credit. Inventories at the end of the year were US$360.1 million, down US$8.9 million, or 2.4% from last year's US$369.0 million. Board of Directors At this year's annual shareholders' meeting, the number of seats on the company's Board of Directors will increase from seven to eight. In addition to each current director, other than James M. Hoak, Jr., the company's Board of Directors has nominated Cece Smith and Robert B. Holland, III, to stand for election to the Board of Directors. On March 21, 2007, James M. Hoak, Jr. announced his desire to not stand for re-election. The company's annual meeting for shareholders of record as of April 30, 2007 will be held in Fort Worth, Texas on June 28, 2007. More information about the meeting will be provided in the company's notice and proxy statement for its annual meeting of shareholders which the company plans to mail to shareholders of record on or about May 24, 2007. Sales Reporting Schedule Changes Going forward, the company will no longer release sales information on a monthly basis and will shift to a quarterly reporting schedule. The company believes that a quarterly reporting schedule will be more beneficial to its shareholders during this transition period by allowing more meaningful comparisons of sales results within the context of merchandise margins, selling, general and administrative expenses, and other performance criteria. Additionally, this move will reduce confusion in comparative reporting caused this year by the shift in the fiscal calendar. About Pier 1 Imports Based in Fort Worth, Texas, Pier 1 Imports Inc. (NYSE:PIR) -- http://www.pier1.com/-- is a specialty retailer of imported decorative home furnishings and gifts with Pier 1 Imports(R) stores in 49 states, Puerto Rico, Canada, and Mexico, and Pier 1 kids(R) stores in the United States. * * * As reported in the Troubled Company Reporter on Jan. 19, 2007, Moody's Investors Service downgraded Pier 1 Imports Inc.'s corporate family rating to Caa1 from B3 following its continuing operating struggles and modest performance over the 2006 holiday season. Moody's said the rating outlook was revised to negative. ============= U R U G U A Y ============= NAVIOS MARITIME: Hires George Achniotis as Chief Fin'l Officer -------------------------------------------------------------- Navios Maritime Holdings Inc. has disclosed that George Achniotis will now serve as Chief Financial Officer and Michael McClure as Senior Vice President - Corporate Affairs. "George's depth of experience in financial matters, and knowledge of the shipping industry will be invaluable as we continue to build our business," said Angeliki Frangou, CEO and Chairman of Navios. "We look forward to George's leadership and continued contribution as he expands the financial group's function." Mr. Achniotis joined Navios in August of 2006 as Senior Vice President-Business Development and assisted in a number of financing and other projects successfully completed during the past nine months. Before joining Navios, Mr. Achniotis was a partner at PricewaterhouseCoopers where he led the shipping practice in Piraeus, Greece. Mr. Achniotis has over 19 years experience in finance, having worked in England, Cyprus and Greece and is a qualified Chartered Accountant, member of the Institute of Chartered Accountants in England and Wales and the Institute of Certified Public Accounts in Cyprus. Mr. Achniotis also holds a Bachelor's degree in Civil Engineering from the University of Manchester. Commenting on Mr. McClure's new position, Ms. Frangou stated, "During Mike's 29-year tenure with Navios, he has demonstrated consistent excellence and developed as an industry leader through his pioneering work on FFA trading with The Baltic Exchange. We are pleased the company and investors will continue to benefit from Mr. McClure's leadership and industry knowledge." Navios Maritime Holdings Inc. (Nasdaq: BULK, BULKU, BULKW) -- http://www.navios.com/-- is a vertically integrated global seaborne shipping company, specializing in the worldwide carriage, trading, storing, and other related logistics of international dry bulk cargo transportation. The company also owns and operates a port/storage facility in Uruguay and has in- house technical ship management expertise. It maintains offices in Piraeus, Greece, South Norwalk, Connecticut and Montevideo, Uruguay. * * * As reported in the Troubled Company Reporter-Latin America on April 5, 2007, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa last week, the rating agency confirmed its B1 Corporate Family Rating for Navios Maritime Holdings Inc. The implementation of the LGD methodology in EMEA follows the introduction of the methodology in September 2006. Most of the rating actions Moody's confirmed relate to senior secured loans. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Senior Unsecured Regular Bond/ Debenture Due 2014 B2 B3 LGD5 80% ================= V E N E Z U E L A ================= CMS ENERGY: Inks Pact to Sell Brazilian Unit for US$211.1 Mil. -------------------------------------------------------------- CMS Energy and CMS Electric and Gas have entered into an agreement to sell CMS Energy Brasil S.A., the holding company for a group of Brazilian electric distribution companies, and related assets for US$211.1 million. CMS Energy and CMS Electric and Gas, a subsidiary of CMS Energy, reached the agreement with CPFL Energia S.A., a Brazilian utility. The sale is subject to approval by the Brazilian national regulatory agency, Agencia Nacional de Energia Eletrica. The sale is expected to close by the end of the second quarter. Proceeds from the sale will be used to reduce debt at CMS Energy and invest in CMS Energy's Michigan utility, Consumers Energy. J.P. Morgan Securities Inc. served as financial advisor to CMS Energy for the transaction. CMS Energy Brasil provides electric service to about 172,000 customers, primarily in the state of Sao Paulo. CMS Energy purchased a controlling interest in CMS Energy Brasil in 1999. It is CMS Enterprises' sole business in Brazil. Headquartered in Jackson, Michigan, Consumers Energy Company -- http://www.consumersenergy.com/-- a wholly owned subsidiary of CMS Energy Corporation, is a combination of electric and natural gas utility that serves more than 3.3 million customers in Michigan's Lower Peninsula. The company has offices in Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2007, Moody's Investors Service affirmed the ratings of CMS Energy (Ba1 Corporate Family Rating) and Consumers Energy (Baa2 senior secured) and revised the rating outlook of both to positive from stable. Moody's also affirmed CMS Energy's SGL-2 rating. HERBALIFE LTD: Opens New Sales Unit in Phoenix, Arizona ------------------------------------------------------- Herbalife Ltd. has opened a new sales center in Phoenix, Arizona to better serve its independent distributors throughout Arizona with a convenient location for product order and pick up, and space to accommodate one-on-one meetings and presentations for up to 70 people. The new center is 5,800 sq. ft. and is capable of handling over 500 orders daily. It is located at 1606 E. University Drive, Suite 109, Phoenix, AZ, 85034 This is the fourth center in the U.S., following Dallas, Texas, Memphis, Tenn., and Carson, Calif. The Memphis and Carson facilities are also distribution hubs, from which the company ships packages around the country. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- Herbalife, now in its 26th year, conducts business in 62 countries. The company does business with several manufacturers worldwide and has its own manufacturing facility in Suzhou, China as well as major distribution centers in Venray, Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., Guadalajara, Mexico, and El Salvador. The company also has operations in Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on April 05, 2007, Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating on Herbalife Ltd. remains on CreditWatch with negative implications following the company's announcement that the company's board of directors has rejected a bid to be acquired by Whitney V L.P. PETROLEOS DE VENEZUELA: Investors to Get Tax-Exempt Yields ---------------------------------------------------------- Yields of investors in Venezuela who bought bonds issued by state-owned Petroleos de Venezuela S.A. will be exempted from income tax until 2012, El Universal reports. The directive was signed by President Hugo Chavez at the Ministerial Council and published in the Official Gazette, the Caracas daily says. Analysts quoted by El Universal said that bond prices may go down as their deadlines will approach because the exemption is only for five years. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * As reported on Nov. 22, 2006, Fitch affirmed the local and foreign currency Issuer Default Ratings of Petroleos de Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)' national scale rating of the company. Fitch said the rating outlook is stable. PETROLEOS DE VENEZUELA: Sells US$7.5 Billion of Bonds ----------------------------------------------------- Venezuela's state-owned oil firm Petroleos de Venezuela SA told Newsday that it sold US$7.5 billion of bonds, increasing the issue from a planned US$5 billion. According to Newsday, Petroleos de Venezuela sold these new classes of bonds: -- US$3 billion of 2017s, priced at 105.5 on coupons of 5.25%; -- US$3 billion of 2027s, priced at 105.5 on coupons of 5.375%; and -- US$1.5 billion of 2037 bonds priced at 105.5 on coupons of 5.5%. Newsday underscores that the offering was exclusive to Venezuelans, who were able to purchase packages with these composition: -- 40% in 10-year notes, -- 40% in 20-year notes, and -- 20% in 30-year notes. The report says that Venezuelans were expected to buy the bonds at an exchange rate of around VEB3,000 per US dollar and will be able to sell them to international investors. One of the Venezuelan government's objectives is to decrease liquidity in the foreign exchange market by giving Venezuelans a chance to obtain dollars, Newsday states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * As reported on Nov. 22, 2006, Fitch affirmed the local and foreign currency Issuer Default Ratings of Petroleos de Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)' national scale rating of the company. Fitch said the rating outlook is stable. SANCOR COOPERATIVAS: Selling Up to 3K Tons of Milk to Venezuela --------------------------------------------------------------- SanCor Cooperativas Unidas is to export 838.5 tons of milk to Venezuela, El Universal reports, citing Argentine local press. Venezuela's official news agency ABN said the sales will be up to 3,000 tons this year. A statement issued by the Argentinean Secretariat of Agriculture, Fisheries and Food, Ministry of Economy mandated that Mastellone, Nestle and SanCor are to concentrate 65% of dairy products sold to Venezuela this year, El Universal relates. Elias Jaua, Venezuelan minister of agriculture, disclosed that SanCor is expected to eventually export 15,000 of milk annually to Venezuela. As previously reported, the Venezuelan government has pledged to the Argentine cooperative access to US$135 million to pay debts and provide fresh capital in order to avoid selling the coop to foreign hands. 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. * VENEZUELA: Posts 60,000 Daily Oil Output Increase in March ------------------------------------------------------------ Venezuela has raised daily crude production by 60,000 barrels, El Universal reports, citing a monthly report from the Energy Information Administration, the statistical arm of the U.S. Department of Energy. Late last year, the country has cut down production in accordance with a mandate from the Organization of Petroleum Exporting Countries to keep oil prices from a drastic plunge. Venezuela has posted 2.4 million barrels per day in March, compared to 2.34 million barrels per day in February. * * * Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * BOOK REVIEW: Building American Cities --------------------------------------- Building American Cities: The Urban Real Estate Game Author: Joe R. Feagin and Robert E. Parker Publisher: Beard Books Paperback: 332 pages List Price: US$34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1587981483/internetbankru pt This book is a volatile story of social conflict that rends the very fabric of our society, but in the end gives shape to our urban centers. This second edition is the startling story of how American cities emerge, grow, change, contract, decay, and become resuscitated. With keen insight, the authors analyze urban social processes, such as population migration to suburbia and the effect of foreign capital investment on U.S. real estate ventures. Examining patterns in the location, development, financing, and construction decisions of small and large corporations, the book looks at the interplay of industrial and development corporations with various levels of government. In addition to political aspects, it reflects on the social costs of unbridled urban growth and decline, pollution, wasted energy, congestion, and the negative impact on minorities. *********** 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 delos 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 * * *