/raid1/www/Hosts/bankrupt/TCRLA_Public/070420.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, April 20, 2007, Vol. 8, Issue 78
Headlines
A R G E N T I N A
AGRO GENERAL: Proofs of Claim Verification Is Until May 21
ELEVEN MARK: Proofs of Claim Verification Ends on June 13
ERES SA: Proofs of Claim Verification Deadline Is May 30
ESTACION ADUANERA: Individual Reports Due in Court on July 9
FIAT SPA: Calls for Special Stockholders' Meeting on May 7
FOMEC SA: Trustee To File Individual Reports in Court on Monday
LIBERIAN SRL: Individual Reports Filing in Court on April 23
LIMAYO SA: Seeks Reorganization Approval in Buenos Aires Court
NOTEBOOK SOLUTION: Proofs of Claim Verification Ends on May 29
P&S SA: Proofs of Claim Verification Deadline Is May 8
PACEY SA: Seeks Reorganization Approval in Buenos Aires Court
PETROBRAS ENERGIA: Will Accept Offers for US$300-Mil. Bond Issue
TELECOM ARGENTINA: Capital Markets Raises Share's Target Price
* ARGENTINA: Spain Mediates Talks with Uruguay on Mill Dispute
B E R M U D A
ACCESS FINANCIAL: Final General Meeting Is Set for May 22
CONVERIUM HOLDING: Sues SCOR & Patinex for Securities Law Breach
SHIP FINANCE: Moody's Assigns Loss-Given-Default Rating
WARNER CHILCOTT: Settles Lawsuits from States & Direct Buyers
B O L I V I A
PETROLEO BRASILEIRO: Boosts Natural Gas Output by 6.2% in 2006
PRIDE INTERNATIONAL: Three Jackup Rigs Get PEMEX Contract
RITZIO ENTERTAINMENT: Moody's Assigns Loss-Given-Default Rating
B R A Z I L
BANCO NACIONAL: Approves Genoa Project Funding for BRL6 Million
EMI GROUP: Expects 15 Percent Decline in EMI Music Revenue
ITRON INC: S&P Lowers Corporate Credit Rating to B+ from BB-
SANYO ELECTRIC: To Book US$17-Million Loss from Battery Recall
TELE NORTE: TmarPart Board to Vote for Tender Offer Proposal
TK ALUMINUM: Completes Teksid Unit Sale for US56.1 Million
* BRAZIL: Reaches Consensus on Ethanol Production
C A Y M A N I S L A N D S
BATAVIA CREDIT: Proofs of Claim Filing Is Until May 17
CAYMAN ABSC: Will Hold Final Shareholders Meeting on May 16
CLASSIC TERMS: Sets Final Shareholders Meeting for May 16
GLOBAL PRIVATE: Will Hold Final Shareholders Meeting on May 16
HDH SPECIAL: Sets Final Shareholders Meeting for May 16
HOTEI LTD: Proofs of Claim Filing Deadline Is May 17
HUNTSMAN INT'L: Will Hold Final Shareholders Meeting on May 16
JLOC 2001-II: Sets Final Shareholders Meeting for May 16
NFA (CAYMAN): Proofs of Claim Must be Filed by May 17
NSJ TWO: Proofs of Claim Filing Is Until May 17
PORTUGAL BLUE: Proofs of Claim Must be Filed by May 16
RYMBOURNE CAYMAN: Proofs of Claim Filing Is Until May 17
SEAGATE TECHNOLOGY: Deutsche & AG Edwards Reaffirms "Buy" Rating
SEAGATE TECHNOLGY: Robert W & UBS Keeps Firm's "Neutral" Rating
SF BUILDING: Proofs of Claim Filing Ends on May 17
SF TENNOUZU: Proofs of Claim Must be Filed by May 17
VITA CAPITAL: Sets Final Shareholders Meeting for May 16
C H I L E
AMC ENTERTAINMENT: Posts US$6.5MM Net Loss in Qtr. Ended Dec. 28
EASTMAN KODAK: Board Elects Dolores Kruchten as Vice President
C O L O M B I A
BANCOLOMBIA SA: Will Appeal Fine Imposed for Corfinsura Merger
E L S A L V A D O R
HERBALIFE LTD: Terminates Goldman's Services on Whitney Offer
G U A T E M A L A
BRITISH AIRWAYS: May Purchase Up to 15 Airbus Planes, Paper Says
GOODYEAR TIRE: Directors Re-Elected at 2007 Annual Meeting
J A M A I C A
GOODYEAR TIRE: Says 4% Sen. Notes are Convertible Until June 29
SUGAR COMPANY: Audley Shaw Questions Debt Cancellation
WEST CORPORATION: Has US$508.6-Mil. Revenues in 2007 First Qtr.
M E X I C O
ADVANCED MARKETING: Publishers Group West's Schedules of Assets
AMERICAN GREETINGS: Launches US$100-Mln Share Repurchase Program
AMERICAN GREETINGS: Has US$42M Net Profit for Year Ended Feb. 28
CLEAR CHANNEL: Amends Merger Deal & Resets Shareholders' Mtg.
JOAN FABRICS: Hires Carl Marks as Financial Advisor
JOAN FABRICS: Organizational Meeting Scheduled Today
METROLOGIC INSTRUMENTS: Picks Jim Griffin as Biz Dev't Director
NEWPARK RESOURCES: Janco Partners Puts "Buy" Rating on Shares
* IDB Approves US$400 Million Credit Facility for Mexico Project
N I C A R A G U A
* NICARAGUA: Regulator Proposes to Fine LPG Distributors
P E R U
COMVERSE TECHNOLOGY: Names Andre Dahan as President & CEO
HANOVER COMPRESSOR: To Redeem US$30-Million Notes on May 8
IMPSAT FIBER: Extends Tender Offer Expiration Date to April 24
P U E R T O R I C O
AVNET INC: Breaks Ground on 228,000-Square-Foot Arizona Facility
U R U G U A Y
WORLDSPAN LP: Signs New Five-Year Contract with CTS Viaggi
* URUGUAY: Proposes to Pay Oil Bill to Venezuela with Bonds
V E N E Z U E L A
ARVINMERITOR: T. Kindem to Head CVA's N. America Sales Division
DAIMLERCHRYSLER: 2nd-Round Bids Expected for Chrysler, WSJ Says
DAIMLERCHRYSLER AG: Chrysler's Revenues Plummet Amid Sale Talks
DAIMLERCHRYSLER: Boosts Michigan Economy with US$1.7B Investment
PETROLEOS DE VENEZUELA: Will Accept Uruguayan Bonds as Payment
PETROLEOS DE VENEZUELA: Will Build Gasoducto del Sur Pipeline
- - - - -
=================
A R G E N T I N A
=================
AGRO GENERAL: Proofs of Claim Verification Is Until May 21
-----------------------------------------------------------
Donato Sarcuno, the court-appointed trustee for Agro General
Rojo S.A.'s reorganization proceeding, verifies creditors'
proofs of claim until May 21, 2007.
The National Commercial Court of First Instance in Buenos Aires
approved a petition for reorganization filed by Agro General,
according to a report from Argentine daily Infobae.
Mr. Sarcuno will present the validated claims in court as
individual reports on July 5, 2007. 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 Agro General 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 Agro General's
accounting and banking records will be submitted in court on
Sept. 3, 2007.
The informative assembly will be held on March 5, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The trustee can be reached at:
Donato Sarcuno
Bernardo de Irigoyen 330
Buenos Aires, Argentina
ELEVEN MARK: Proofs of Claim Verification Ends on June 13
---------------------------------------------------------
Mauricio Leon Brawer, the court-appointed trustee for Eleven
Mark S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until June 13, 2007.
Mr. Brawer will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Eleven Mark
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 Eleven Mark's
accounting and banking records will be submitted in court.
Infobae did not state the reports submission date.
Mr. Brawer is also in charge of administering Eleven Mark's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Mauricio Leon Brawer
Sarmiento 2593
Buenos Aires, Argentina
ERES SA: Proofs of Claim Verification Deadline Is May 30
--------------------------------------------------------
Pedro Alfredo Valle, the court-appointed trustee for Eres S.A.'s
reorganization proceeding, verifies creditors' proofs of claim
until May 30, 2007.
The National Commercial Court of First Instance in Buenos
Aires approved a petition for reorganization filed by Eres,
according to a report from Argentine daily Infobae.
Mr. Valle will present the validated claims in court as
individual reports on July 13, 2007. 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 Eres 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 Eres' accounting and
banking records will be submitted in court on Sept. 10, 2007.
The trustee can be reached at:
Pedro Alfredo Valle
Avenida de Mayo 1260
Buenos Aires, Argentina
ESTACION ADUANERA: Individual Reports Due in Court on July 9
------------------------------------------------------------
Mirta Haydee Addario, the court-appointed trustee for Estacion
Aduanera Saforcada S.A.'s reorganization proceeding, will
present creditors' validated claims as individual reports in the
National Commercial Court of First Instance in Buenos Aires on
July 9, 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 Estacion Aduanera and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Addario verifis creditors' proofs of claim until
May 28, 2007.
Ms. Addario will also submit to court a general report
containing an audit of Estacion Aduanera's accounting and
banking records on Aug. 21, 2007.
The trustee can be reached at:
Mirta Haydee Addario
Lavalle 1454
Buenos Aires, Argentina
FIAT SPA: Calls for Special Stockholders' Meeting on May 7
----------------------------------------------------------
Holders of Fiat S.p.A.'s savings shares will hold a special
stockholders' meeting on May 7, on the first call and, if
necessary, for May 8 and 9 on the second and third call,
respectively.
The meeting aims to discuss the advisability of carrying out a
mandatory conversion at par of non-convertible savings shares
into ordinary shares of the company.
Stockholders will also discuss the conversion of the outstanding
non-convertible savings shares of Fiat S.p.A. into the same
number of ordinary shares having the same characteristics as the
currently outstanding ordinary stock.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems. Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As reported on April 10, Moody's confirmed its Ba2 Corporate
Family Rating for Fiat S.p.A.
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB-'. At the same time, Standard & Poor's
affirmed its 'B' short-term rating on Fiat. S&P said the
outlook is stable.
Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from
Stable. Its Issuer Default rating and senior unsecured rating
are affirmed at BB-. The Short-term rating is affirmed at B.
Around EUR6 billion of debt is affected by this rating action.
FOMEC SA: Trustee To File Individual Reports in Court on Monday
---------------------------------------------------------------
Mario Daniel Krasnansky, the court-appointed trustee for Fomec
SA's bankruptcy proceeding, will present creditors' validated
claims as individual reports in the National Commercial Court of
First Instance in Buenos Aires on April 23, 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 Fomec and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Krasnansky verified creditors' proofs of claim until
Feb. 28, 2007.
Mr. Krasnansky will also submit to court a general report
containing an audit of Fomec's accounting and banking records on
June 15, 2007.
Mr. Krasnansky is also in charge of administering Fomec's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Mario Daniel Krasnansky
Viamonte 1785
Buenos Aires, Argentina
LIBERIAN SRL: Individual Reports Filing in Court on April 23
------------------------------------------------------------
Angel Vello Vazquez, the court-appointed trustee for Liberian
S.R.L.'s bankruptcy proceeding, will present creditors'
validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
April 23, 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 Liberian and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Vazquez verified creditors' proofs of claim until
March 7, 2007.
Mr. Vazquez will also submit to court a general report
containing an audit of Liberian's accounting and banking records
on June 4, 2007.
Mr. Vazquez is also in charge of administering Liberian's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Liberian S.R.L.
Salguero 3172
Buenos Aires, Argentina
The trustee can be reached at:
Angel Vello Vazquez
Parana 275
Buenos Aires, Argentina
LIMAYO SA: Seeks Reorganization Approval in Buenos Aires Court
----------------------------------------------------------------
Limayo S.A. has requested for reorganization the National
Commercial Court of First Instance in Buenos Aires after failing
to pay its liabilities since August 2005.
The reorganization petition, once approved by the court, will
allow Limayo to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The debtor can be reached at:
Limayo S.A.
Avenida de Mayo 1101/1107
Buenos Aires, Argentina
NOTEBOOK SOLUTION: Proofs of Claim Verification Ends on May 29
--------------------------------------------------------------
Hector Edgardo Grun, the court-appointed trustee for Notebook
Solution S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until May 29, 2007.
Mr. Grun will present the validated claims in court as
individual reports on July 13, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Notebook Solution 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 Notebook Solution's
accounting and banking records will be submitted in court on
Sept. 10, 2007.
Mr. Grun is also in charge of administering Notebook Solution's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Notebook Solution S.A.
Capitan Ramon Freire 2266
Buenos Aires, Argentina
The trustee can be reached at:
Hector Edgardo Grun
San Martin 551
Buenos Aires, Argentina
P&S SA: Proofs of Claim Verification Deadline Is May 8
------------------------------------------------------
Olga Beatriz Marcolongo, the court-appointed trustee for P&S
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until May 8, 2007.
Ms. Marcolongo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Necochea, Buenos Aires, will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by P&S 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 P&S' accounting and
banking records will be submitted in court.
Infobae did not state the reports submission date.
Ms. Marcolongo is also in charge of administering P&S' assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
P&S S.A.
Calle 48, Nro. 3120, Necochea
Buenos Aires, Argentina
The trustee can be reached at:
Olga Beatriz Marcolongo
Calle 66, Nro. 3045,
Buenos Aires, Argentina
PACEY SA: Seeks Reorganization Approval in Buenos Aires Court
-------------------------------------------------------------
Pacey S.A. has requested for reorganization approval in the
National Commercial Court of First Instance in Buenos Aires
after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Pacey to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The case is pending before the National Commercial Court of
First Instance in Buenos Aires.
The debtor can be reached at:
Pacey S.A.
San Martin 793
Buenos Aires, Argentina
PETROBRAS ENERGIA: Will Accept Offers for US$300-Mil. Bond Issue
----------------------------------------------------------------
Petrobras Energia, Brazilian state-run oil company Petroleo
Brasileiro SA's Argentine subsidiary, told Reuters that it will
start accepting offers for the first tranche of its US$2.5
billion bond issue.
Petrobras Energia said in a statement to the Argentine National
Securities Commission that the offer period for up to US$300
million in 10-year dollar-denominated bonds started on April 19
and will end on May 2.
Reuters notes that Petrobras Energia's existing 10-year bond
matures in 2013.
According to Reuters, the money will be used for:
-- investment,
-- to restructure outstanding debt, and
-- for capital increases to subsidiaries and
affiliates.
Standard & Poor's International Ratings agency rated the bond
program "raAA-" on its Argentine national scale. Fitch
Argentina ratings agency rated the issue "AA (arg)," also on the
national scale, Reuters states, citing Petrobras Energia.
Petrobras Energia Participaciones SA (Buenos Aires: PBE,
NYSE:PZE) through its subsidiary, explores, produces, and
refines oil and gas, as well as generates, transmits, and
distributes electricity. It also offers petrochemicals, as well
as markets and transports hydrocarbons. The company conducts
oil and gas exploration and production operations in Argentina,
Venezuela, Peru, Ecuador, and Bolivia
* * *
As reported on Jan. 4, 2007, Fitch Argentina Calificadora de
Riesgo affirmed these ratings assigned to Petrobras Energia:
-- international currency: B+
-- local currency: BB-
-- unsecured senior debt: B+
TELECOM ARGENTINA: Capital Markets Raises Share's Target Price
--------------------------------------------------------------
Equity fund manager Capital Markets Argentina said in a report
that it has raised its 12-month target price for Telecom
Argentina to ARS15.46 from ARS13.35 a share due to positive
outlook for the mobile business in Argentina.
Capital Markets said in a statement, "The company is in a phase
of strong expansion and Telecom is investing heavily to maintain
its market share and to be prepared for fixed-mobile
convergence."
Capital Markets analyst Carolina Kiernan explained to Business
News Americas, "We have predicted an improvement in the
company's Ebitda margin based on rising ARPUs [Average Revenue
Per User] from growth in value added services. In 2006, value
added services accounted for 26.5% of TEO's [Telecom Argentina]
revenues in the mobile business compared to only 16% in 2005."
Though Telecom Argentina has traditionally been viewed as a
fixed line firm, its mobile business Personal generated over 50%
of its revenues last year and it is expected that this segment
will account for more than 60% of the company's sales by 2010,
BNamericas notes, citing Ms. Kiernan.
Ms. Kiernan told BNamericas that the new target price takes into
consideration an estimated 10% boost in fixed line tariffs for
2007 as part of the talks with the government. The increase
will be small as Telecom Argentina is more concentrated on
introducing triple play services than on hiking tariffs.
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: Spain Mediates Talks with Uruguay on Mill Dispute
--------------------------------------------------------------
Representatives from Argentina and Uruguay have started
Wednesday a round of talks that is aimed at solving a mill-
construction dispute, The Financial Times reports.
About the Mill Dispute
The neighboring countries are at odds over the construction of a
US$1.2 billion pulp mill along their river border by Finnish
company Metsa-Botnia Oy.
The Argentine government and environmental groups are protesting
the mills' alleged adverse impact on marine life at their river
border. Uruguay argued that studies have been made ascertaining
the safety of the river habitat and measures would be taken to
ensure that the mills won't pollute the river.
Argentina also claims Uruguay violated the 1975 Statute of the
River Uruguay, which states that all issues concerning the river
must be agreed upon by the two nations.
The matter has been brought to the International Court of
Justice at The Hague. A preliminary ruling was issued in favor
of Uruguay. The ruling, along with a financing from the World
Bank, renewed a series of protests and blockades of access roads
leading to Uruguay.
The mill project is Uruguay's biggest foreign investment, which
the government says will add 2% to its GDP.
New Talks
Unlike the two nations' previous talks, this two-day event,
sponsored by King Juan Carlos of Spain, would have a Spanish
envoy to act as mediator.
The FT says Argentina looks like it won't budge from its demand
to move the mill's site away from the river, while Uruguay
maintains it won't negotiate if blockades leading to its bridges
won't be gone. These roadblocks, Uruguay claimed in reports,
have resulted to material losses to its economy.
Despite the Argentine government's urgings, protesters are not
likely to comply, FT relates, citing Alberto Fernandez,
Argentina's cabinet chief.
As previously reported, Merco Press suggests these possible
solutions to the dispute:
-- construction of a 30-km long pipeline
down the River Uruguay through which, the
wastes coming from the mills would be
pumped;
-- reshaping to help limit the plant visual
contamination (huge chimney) from the
Argentine side; and
-- construction of an additional drain that
be jointly financed by Argentina, Uruguay
and Spain.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
=============
B E R M U D A
=============
ACCESS FINANCIAL: Final General Meeting Is Set for May 22
---------------------------------------------------------
Access Financial Group Ltd.'s final general meeting will be at
4:00 p.m. on May 22, 2007, or as soon as possible, at the
liquidator's place of business.
Access Financial's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.
The company's creditors had until April 16 to submit proofs of
claim for verification to the liquidator.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
CONVERIUM HOLDING: Sues SCOR & Patinex for Securities Law Breach
----------------------------------------------------------------
Reinsurance firm Converium Holding AG has filed a lawsuit in the
U.S. District Court for the Southern District of New York
against SCOR SA and Patinex AG, The Associated Press reports.
AP relates that Converium Holding claimed that SCOR and Patinex
violated the American securities law.
Converium Holding is seeking a preliminary injunction before
May 22, the last date on which the firm's shareholders may sell
their shares to SCOR, under the terms of the deal the latter
floated this month, The AP says. Coverium Holding is fighting a
takeover bid by SCOR.
Converium Holding explained to The AP that SCOR unlawfully
barred its US shareholders from taking part in the SCOR's offer
that valued the company at US$2.56 billion. The shareholders
represent about 22% of Converium Holding's shares.
The AP notes that Converium Holding claimed SCOR and Patinex --
which holds about 12% of the voting rights in Converium Holding
-- failed to make proper disclosures about their purchase of
Converium securities. Converium Holding has asked its
shareholders to reject the deal.
SCOR told The AP that it had complied with all applicable legal
and regulatory provisions in its bid. The firm said it will
"defend itself vigorously against the unfounded allegations of
Converium's top management."
Headquartered in Zug, Switzerland, Converium Holding AG
(NYSE: CHR) -- http://www.converium.com/-- provides treaty and
individual coverage for risks including accident and health,
credit and surety, e-commerce, third party and professional
liability, life, and special casualty. The company also
operates in Germany, United Kingdom, France, Malaysia,
Singapore, Australia, Japan, Bermuda, Argentina, U.S.A., Brazil
and Canada.
* * *
In October 2006, Fitch Ratings placed Swiss-based Converium AG's
Insurer Financial Strength BBB- rating on Rating Watch Positive.
The agency has also placed other ratings within the Converium
group on RWP.
Converium group ratings are: Converium AG's IFS BBB- on RWP;
Converium AG's Issuer Default rating BBB- on RWP; Converium
Insurance (U.K.) Limited's IFS BBB- on RWP; Converium
Ruckversicherungs (Deutschland) AG's IFS BBB- on RWP; Converium
Holding AG's IDR BB on RWP; and Converium Finance S.A.'s US$200
million subordinated debt due 2032 BB+ on RWP.
SHIP FINANCE: 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 Transportation
Services, Services, Homebuilding and Building Products,
Chemical, Retail and Apparel and Restaurants, Wholesale
Distribution, and Other sectors last week, the rating agency
confirmed its Ba3 Corporate Family Rating for Ship Finance
International Limited.
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.
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ --------
Senior Secured Bank
Credit Facility Ba2 Ba2 LGD3 41%
Senior Unsecured
Regular Bond/Debenture
Due 2013 B1 B1 LGD5 79%
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 Bermuda, Ship Finance International Limited --
http://www.shipfinance.org/-- through its subsidiaries engages
in the ownership and operation of oil tankers, including
oil/bulk/ore (OBO) carriers. The company operates through
subsidiaries and partnerships located in Bermuda, Cyprus, Isle
of Man, Liberia, Norway, and Singapore.
Ship Finance is also involved in the charter, purchase, and sale
of vessels.
WARNER CHILCOTT: Settles Lawsuits from States & Direct Buyers
-------------------------------------------------------------
Warner Chilcott Limited has reached tentative settlements to
conclude the antitrust lawsuits brought by thirty-four states
and the District of Columbia and indirect purchasers, including
the third-party payor class action plaintiffs and the personal
use consumer class action plaintiffs, against certain of its
subsidiaries. These lawsuits involve one of the Company's
combined hormonal contraceptives, Ovcon(R) 35. Under the
proposed settlements, all claims will be dismissed and the
litigations will be terminated in exchange for cash payments
and/or product donations amounting to approximately US$7.5
million in the aggregate. The settlements remain subject to
negotiation of definitive documentation and necessary approvals
by the parties and the Court.
These settlements do not include the related pending actions
brought by certain individual and class action direct purchaser
plaintiffs. Warner Chilcott continues to vigorously defend
these lawsuits. Although it is impossible to predict with
certainty the impact that these settlements will have on the
continuing actions, or the outcome of any litigation, Warner
Chilcott is confident in the merits of its defense and does not
anticipate an unfavorable outcome.
Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. --
http://www.warnerchilcott.com/-- is the holding company for a
host of pharmaceutical makers. Women's health care products,
including hormone therapies (femhrt and Estrace Cream) and
contraceptives (Estrostep, Loestrin, and OvCon), are the
company's largest segment. Other products include dermatology
treatments for acne (Doryx) and psoriasis (Dovonex and
Taclonex). US subsidiary Warner Chilcott, Inc. makes
prescription drugs for dermatology and women's health; other
subsidiaries provide services in data management systems,
pharmaceutical development, manufacturing, and chemical
development.
* * *
Standard & Poor's Ratings Services raised on Sept. 27, 2006, its
ratings on Warner Chilcott Corp. The corporate credit rating
was raised to 'B+' from 'B'. At the same time, the ratings were
removed from CreditWatch, where they were placed with positive
implications on June 13, 2006, following the company's
announcement that it was planning an IPO, with the bulk of
proceeds to be used for debt reduction. S&P said the rating
outlook is stable.
Moody's Investors Service revised on Oct. 9, 2006, the rating
outlook on Warner Chilcott Company, Inc., and related entities
to positive from stable, and affirmed the existing ratings,
including the B2 corporate family rating. At the same time,
Moody's upgraded the speculative grade liquidity rating to SGL-2
from SGL-3. In addition, Moody's withdrew the B1 senior secured
term loan rating on Warner Chilcott Holdings Company III,
Limited following the repayment of this tranche of debt.
=============
B O L I V I A
=============
PETROLEO BRASILEIRO: Boosts Natural Gas Output by 6.2% in 2006
--------------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA said in
a statement that it has increased natural gas production in
Bolivia by 6.2% to 20.7 million cubic meters per day in 2006
from 2005, with the help of its Bolivian affiliates.
According to Petroleo Brasileiro's statement, the production of
natural gas liquids rose 4.9% to 21,300 barrels per day.
Business News Americas relates that Petroleo Brasileiro and its
partners invested about US$56.8 million in Bolivia last year,
allocating US$3.1 million toward social projects in these
departments:
-- Tarija,
-- Santa Cruz, and
-- Cochabamba.
Petroleo Brasileiro said in a statement that paid US$730 million
in taxes and royalties in 2006. It spent US$100 million to
contract goods and services and at least US$28 million on
employee salaries and benefits.
Meanwhile, Petroleo Brasileiro's gas sales in Brazil grew 5.9%
to 17.86 million cubic meters per day, while sales to Argentina
increased 0.9% to 2.19 million cubic meters a day, BNamericas
states.
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.
PRIDE INTERNATIONAL: Three Jackup Rigs Get PEMEX Contract
---------------------------------------------------------
Pride International, Inc., reported that three of the its
200- foot, mat-cantilever jackup rigs, the Pride Alabama, Pride
Colorado and Pride Mississippi, have been awarded one-year
contracts by PEMEX Exploracion y Produccion for drilling
operations in Mexican waters of the Gulf of Mexico.
The contracts for the Pride Alabama and Pride Colorado are
expected to commence in May 2007 and July 2007, respectively, in
direct continuation of existing contract commitments. Both rigs
are currently operating in Mexican waters of the Gulf of Mexico
for PEMEX. The contract for the Pride Mississippi is expected
to commence in September 2007, following the completion of
current contract commitments and mobilization of the rig from
the U.S. Gulf of Mexico.
Aggregate revenues, which could be generated from the three
contract awards are approximately US$106.8 million, excluding
revenues from mobilization, demobilization and customer
reimburseables. Each contract award provides for a fixed
dayrate throughout the primary term of the contract.
Headquartered in Houston, Texas, Pride International Inc.
(NYSE:PDE) -- http://www.prideinternational.com/-- is a
drilling contractor. The company provides onshore and offshore
drilling and related services in more than 25 countries,
operating a diverse fleet of 278 rigs, including two ultra-
deepwater drillships, 12 semi submersible rigs, 28 jackup rigs,
18 tender-assisted, barge and platform rigs, and 218 land rigs.
Pride also provides a variety of oilfield services to customers
in Argentina, Venezuela, Bolivia and Peru.
* * *
As reported in the Troubled Company Reporter on Sept. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on contract driller Pride International Inc. and
removed the rating from CreditWatch with negative implications.
The outlook is stable. As of June 30, 2006, Houston, Texas-
based Pride had US$1.01 billion in adjusted debt.
As reported in the Troubled Company Reporter on Aug. 17, 2006,
Fitch Ratings raised Pride International's Issuer Default Rating
to 'BB' from 'BB-'. Fitch also raised the ratings on Pride's
senior secured revolving credit facility, senior unsecured notes
and their convertible senior notes.
RITZIO ENTERTAINMENT: 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 B2 Corporate Family Rating for
Ritzio Entertainment Group.
Moody's also assigned a B2 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%).
Headquartered in Nicosia, Cyprus, Ritzio Entertainment Group
(REG) -- http://www.ritzio.net/en/-- is an international
business operator in the field of entertainment and recreation.
Ritzio is also developing its restaurant and real estate
management businesses.
REG holds strong positions in a number of markets, including
Russia, Ukraine, Kazakhstan, the Baltic States and Romania.
In 2006, it entered the Latin American market and is currently
represented in Bolivia, Peru and Mexico.
===========
B R A Z I L
===========
BANCO NACIONAL: Approves Genoa Project Funding for BRL6 Million
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
has approved a financial support of BRL6 million to Genoa
Biotecnologia S.A., a biotechnological innovation company
operating in the human and veterinary health sector. The
operation was structured jointly by the Bank's industrial and
capital market areas. From the total approved, BRL2.96 million
will be granted under the ambit of Support Program for the
Development of the Pharmaceutical Productive Chain and BRL3.05
million to be funded by BNDES Participacoes S.A.
The approved operation follows the Bank's strategy of expanding
its support to enterprises with a strong technological
innovation contents and stimulating proper procedures of
corporate governance, upon risk capital and financing
instruments.
Genoa's project aims at developing new therapeutic vaccines for
the treatment of cancerous tumors and for HIV virus bearers that
have not yet developed the disease. Additionally, the company
has the objective of expanding its performance in the area of
high precision diagnoses, based on Molecular Biology, directed
to pharmacogenetics tests, capable of evaluating the efficacy
and toxicity of chemotherapeutic drugs in each person,
previously to the treatment. For the veterinary field, the
objective is the development of genetical analysis processes
directed to zebu herd.
Genoa has already been producing vaccines against melanoma and
carcinoma of renal cells. The project approved by BNDES
provides for the inclusion of new vaccines against pancreas
cancer, acute myeloid leukemia and lymphoma of small cells,
therefore allowing an improvement in the quality of life of
patients suffering from such modalities of cancer.
The vaccine against HIV virus, under development by the company,
is not preventive, but allows identifying the antigen molecular
structure by the immune system. It is expected that with the
vaccine a HIV virus bearer may substitute the use of anti-AIDS
cocktail during some years, without any collateral effect. In
accordance with data from the Ministry of Health, Brazil has
about 600 thousand bearers of AIDS virus.
The vaccines under development by Genoa stimulate the defense
cells to attack just the tumor, sparing the healthy tissues.
Therefore, the company creates specific vaccines for each
person, allowing a treatment less aggressive than the
conventional therapy.
About Genoa
Genoa, located in the City of Sao Paulo, is a holding company
formed by four companies operating in the development of genetic
and molecular technology for the human and animal areas. It
owns two laboratories equipped with state of the art technology,
one of them located in S¡rio Liban^s Hospital (State of Sao
Paulo).
The company has a team mostly comprised of researchers having
experience in USA universities and an important participation in
the coordination of significant project in Brazil, such as the
Human Genome (international consortium comprised by the USA,
Europe and Japan, to map all human species genes, completed in
2003).
About BNDES
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
EMI GROUP: Expects 15 Percent Decline in EMI Music Revenue
----------------------------------------------------------
EMI Group Plc provided trading update for the financial year
ended March 31, 2007, ahead of the announcement of its
preliminary results on May 23.
The company said that, EMI Music's revenue for the year ended
March 31, 2007, is expected to have declined by 15% at constant
currency, in line with its announcement on Feb. 14. Digital
revenue in the division is expected to have increased by 59% and
will represent around 10% of revenue.
EMI Music Publishing's revenue is expected to be broadly flat at
constant currency, with digital revenue increasing by 28% and
representing approximately 8% of total sales.
The company anticipated underlying Group EBITDA before
exceptional items of around GBP174 million.
The operating margin for EMI Music is expected to decline in the
year to March 31, 2007, as indicated in February, primarily as a
result of the negative flow through on the sales decline and
higher than expected returns in the post Christmas period.
Music Publishing's operating margin has continued to improve as
a result of reductions in that division's cost base.
EMI has made progress with its cost saving programs. With
respect to the GBP110 million restructuring program announced on
Jan. 12, EMI confirms that it has already executed the vast
majority of the actions envisaged in the plan.
As a result, the Company now expects at least GBP70 million of
the savings will be achieved by March 31, 2008, with the
remainder being reflected in the results for the year ending
March 31, 2009.
EMI also announces that the cash cost of this program will now
be no more than GBP125 million rather than the GBP150 million it
previously announced.
The implementation of the program designed to reduce costs by
GBP30 million, is complete. Of the GBP30 million, EMI has
delivered savings for the year to March 31, 2007, of GBP17
million and the remaining GBP13 million will be achieved by
March 31, 2008.
Net debt at March 31, 2007, is expected to be around GBP910
million. On Jan. 12, EMI said it had secured bank commitments
to finance the costs of restructuring and the acquisition of
Toshiba's 45% interest in TOEMI. The Group has completed a full
refinancing of its revolving credit facilities to allow for
these payments.
As part of its objective to optimize its balance sheet, the
Group has been examining a potential securitization of its Music
Publishing assets, which EMI hopes to complete by the end of
this financial year. The Company appointed Deutsche Bank and
the Royal Bank of Scotland as Lead Arrangers of the potential
securitization.
In view of the Company's funding requirements, the Board has
decided to suspend dividend payments until the benefits of the
restructuring process have been fully realized. The Board will
keep the situation under review.
"Our industry is changing at an unprecedented pace and we are
committed to accelerating the transformation of our business to
realize the opportunities before us. We have launched a number
of significant digital initiatives -- most recently the
introduction of DRM-free superior sound quality downloads across
our entire digital repertoire -- which reflect our optimism
about the digital environment. Such initiatives, coupled with
tough management actions, position the Group to make good
progress in the future," Eric Nicoli, EMI Group CEO disclosed.
About EMI
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20. The group has operations in Brazil,
China, and Hungary. The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.
At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.
* * *
As reported on March 1, Standard & Poor's Ratings Services
placed its ratings on Warner Music Group Corp., including the
'BB-' corporate credit rating, on CreditWatch with negative
implications, following the company's statement that it is
exploring a possible merger agreement with EMI Group PLC
(BB-/Watch Neg/B), which EMI management has confirmed.
As reported on Jan. 17, Moody's Investors Service downgraded EMI
Group Plc's Corporate Family and senior debt ratings to Ba3 from
Ba2. All ratings remain under review for possible further
downgrade.
ITRON INC: S&P Lowers Corporate Credit Rating to B+ from BB-
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Itron
Inc., including its corporate credit rating to B+ from BB-,
following the completion of the company's acquisition of Actaris
Metering Systems.
The ratings were removed from CreditWatch, where they were
originally placed with negative implications on Feb. 26, 2007.
In addition, the ratings on the company's previous US$55 million
revolving credit facility have been withdrawn, as the facility
was replaced with a new US$115 million multi-currency revolving
credit facility. The outlook is stable.
The lower ratings reflect Itron's highly leveraged financial
risk profile, marked by substantially higher debt balances and
weaker credit metrics. This is partly offset by what Standard &
Poor's views as an enhanced, yet still weak, business risk
profile, as the Actaris acquisition supplements Itron's already
leading market positions in meter-data collection and
electricity-metering sales with increased geographic reach, a
broader platform for the company's high-growth AMR technology
(via the addition of gas and water meters), and potential
cost-saving opportunities.
Itron Inc. (NASDAQ:ITRI) -- http://www.itron.com/-- is a
technology provider and critical source of knowledge to the
global energy and water industries. Nearly 3,000 utilities
worldwide rely on Itron technology to provide the knowledge they
require to optimize the delivery and use of energy and water.
Itron creates value for its clients by providing industry-
leading solutions for electricity metering; meter data
collection; energy information management; demand response; load
forecasting, analysis and consulting services; distribution
system design and optimization; web-based workforce automation;
and enterprise and residential energy management. Effective
April 2006, Itron has acquired Brazil's ELO Tecnologia. Itron
Tecnologia has offices and a manufacturing assembly facility in
Campinas, Sao Paulo, Brazil and offices in Santiago, Chile.
SANYO ELECTRIC: To Book US$17-Million Loss from Battery Recall
--------------------------------------------------------------
Sanyo Electric Co Ltd will book a loss of JPY2.04 billion or
US$17 million in its earnings for the year ended March 31, 2007,
related to the recall of mobile phone batteries, according to
Reuters.
As reported in the Troubled Company Reporter on Dec. 12, 2006,
NTT DoCoMo Inc. recalled some 1.3 million batteries made by
Sanyo Electric, which are used in Mitsubishi Electric Corp's
handsets. The recall was prompted by fears that the lithium ion
batteries installed in Mitsubishi's FOMA D902i phones may
overheat and rupture.
Reuters recounts that Sanyo forecast in January a net loss of
US$419.8 million on sales of US$18.4 billion. The company has
no plan to revise its earnings estimates for the year ended
March 31, Reuters reports.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
As reported on Mar. 2, 2007, Fitch Ratings placed Sanyo Electric
Co. Ltd.'s BB+ long-term foreign and local currency issuer
default and senior unsecured ratings on rating watch negative.
As reported on May 25, 2006, Standard & Poor's Ratings Services
affirmed its negative BB long-term corporate credit and BB+
senior unsecured debt ratings on Sanyo Electric Co. Limited. At
the same time, the ratings were removed from CreditWatch where
they were first placed with negative implications on
Sept. 28, 2005.
TELE NORTE: TmarPart Board to Vote for Tender Offer Proposal
------------------------------------------------------------
Tele Norte Leste Participacoes, S.A., has received a
communication of a statement of material fact issued by its
majority shareholder, Telemar Participacoes S.A.
Telemar Participacoes advised that at a Prior Shareholders'
Meeting held April 17, the signatories to its shareholders'
agreement resolved to instruct the members of the TmarPart Board
of Directors appointed by them, representing a majority to the
Board of Directors, to vote in favor of the proposals to carry
out the public tender offers referred to in the statement of
material fact released on April 11, 2007. The content of this
statement of material fact is being transmitted to the Investor
Relations Officers of Tele Norte and of Telemar Norte Leste
S.A., for release to the shareholders of those companies.
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.
* * *
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, S.A., 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.
TK ALUMINUM: Completes Teksid Unit Sale for US56.1 Million
----------------------------------------------------------
TK Aluminum Ltd. has completed the sale of its subsidiary Teksid
Aluminum Poland Sp.z o.o to Tenedora Nemak, S.A. de C.V., a
subsidiary of ALFA, S.A.B. de C.V. Pursuant to the previously
disclosed revised terms of the Nemak transaction, the company
remains obligated to sell its remaining 40% equity interest in
its Chinese joint venture.
Pursuant to the revised terms of the Nemak transaction, the
aggregate purchase price allocated to the sale of Teksid Poland
was approximately US$56.1 million in cash consideration plus the
issuance of an additional 0.83% synthetic equity interest in the
Nemak business. As detailed in the Attachment to this press
release, the aggregate cash proceeds received by the Company at
closing in connection with the sale of Teksid Poland were
approximately US$29.9 million plus US$3 million as the result of
the issuance of a loan by ALFA, prior to the deduction of a
contingency reserve and other amounts permitted in accordance
with the supplemental indenture, effective as of March 15, 2007,
governing the company's outstanding 11 3/8% Senior Notes due
2011. Pursuant to the terms of the Supplemental Indenture, the
company is required to commence a tender offer with certain of
the cash proceeds from the sale of Teksid Poland not later than
30 days after consummation of such sale.
As further explained in the Attachment to this press release,
the aggregate proceeds were based on the purchase price
allocation and the estimated adjustments to the purchase price
as contemplated by the revised terms of the Nemak transaction.
In addition, as previously disclosed, US$5 million was held back
in escrow pursuant to the revised terms of the Nemak Transaction
in order to fund any potential shortfall of working capital or
excess net debt in connection with such transaction.
Teksid Aluminum -- http://www.teksidaluminum.com/--
manufactures aluminum engine castings for the automotive
industry. Principal products include cylinder heads, engine
blocks, transmission housings, and suspension components. The
company operates 15 manufacturing facilities in Europe, North
America, South America, and Asia. The company maintains
operations in Italy, Brazil, and China.
Until Sept. 2002, Teksid Aluminum was a division of Teksid
S.p.A., which was owned by Fiat. Through a series of
transactions completed between Sept. 30, 2002 and Nov. 22, 2002,
Teksid S.p.A. sold its aluminum foundry business to a consortium
of investment funds led by equity investors that include
affiliates of each of Questor Management Company, LLC, JPMorgan
Partners, Private Equity Partners SGR SpA and AIG Global
Investment Corp. As a result of the sale, Teksid Aluminum is
now owned by its equity investors through TK Aluminum Ltd., a
Bermuda holding company.
* * *
On Jan. 16, Moody's Investors Service placed TK Aluminum
Ltd.'s long-term corporate family rating at Caa3.
* BRAZIL: Reaches Consensus on Ethanol Production
-------------------------------------------------
In the recently concluded First South American Energy Summit
attended by 11 nations, a consensus was reached regarding the
production of ethanol as an alternative to crude.
Brazil, one of the world's leading producers of biofuels, has
reached an ethanol agreement with the United States last month.
The accord prompted Venezuela and Cuba to issue disparaging
comments, claiming it would promote monopoly and worsen poverty.
"This is a complex discussion, a political debate," Venezuelan
Minister of Energy and Petroleum Rafael Ramirez, El Universal
reports, citing Efe news agency.
Not Opposed to Ethanol
Venezuela appears to have changed its mind about the use of
ethanol and denied any impasse on the issue, Bloomberg News
says.
President Hugo Chavez has agreed to back hybrid fuels as a way
to promote increased oil and biofuels production, Bloomberg
relates.
The Venezuelan leader underscored that Latin America should
build its own ethanol processing plants to cut dependence on
U.S. refineries.
Pres. Chavez outlined during the summit a proposal he called
South American Energy Agreement, El Universal says. The
proposal involves joint cooperation in oil, gas, alternate
energy sources and energy saving.
Consensus
Chilean Energy Minister Marcelo Tokman was quoted by Bloomberg
as saying that the nations have agreed to promote the use of
biofuels.
Pres. Chavez clarified in reports that he doesn't oppose the
production of ethanol as long as it does not adversely affect
food production.
* * *
As reported on Nov. 24, 2006, Standard & Poor's Ratings Services
revised its outlook on its long-term ratings on the Federative
Republic of Brazil to positive from stable. Standard & Poor's
also affirmed these ratings on the Republic of Brazil:
-- 'BB' for long-term foreign currency credit rating,
-- 'BB+' for long-term local currency credit rating, and
-- 'B' for short-term currency sovereign credit rating.
===========================
C A Y M A N I S L A N D S
===========================
BATAVIA CREDIT: Proofs of Claim Filing Is Until May 17
------------------------------------------------------
Batavia Credit Card Corporation Ltd.'s creditors are given until
May 17, 2007, to prove their claims to George Bashforth and
Emile Small, 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.
Batavia Credit's shareholders agreed on March 28, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
George Bashforth
Emile Small
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands.
CAYMAN ABSC: Will Hold Final Shareholders Meeting on May 16
-----------------------------------------------------------
Cayman ABSC NIMs 2003-HE6 will hold its final shareholders
meeting on May 16, 2007, at 12:00 p.m., at the office of the
company.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
and
2) authorize the liquidators to retain the records of the
company for a period of five years from the dissolution of
the company, after which they may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
P.O. Box 908
Grand Cayman KY1-9002
Cayman Islands
CLASSIC TERMS: Sets Final Shareholders Meeting for May 16
---------------------------------------------------------
Classic Terms Ltd. will hold its final shareholders meeting on
May 16, 2007, at:
327 Dahlonega Street
Suite 1001, Cumming
Georgia U.S.A.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Gilbert Miller
Attention: Alan G. de Saram
Charles Adams, Ritchie & Duckworth
P.O. Box 709
Zephyr House, Mary Street
George Town, Grand Cayman KY1-1107
Cayman Islands
Tel: 949-4544
Fax: 949-8460
GLOBAL PRIVATE: Will Hold Final Shareholders Meeting on May 16
--------------------------------------------------------------
Global Private Investments Ltd. will hold its final shareholders
meeting on May 16, 2007, at 10:00 a.m., at the office of the
company.
These agendas will be taken during the meeting:
1) confirm, ratify and approve the conduct of the liquidation
by the liquidators, S.L.C. Whicker and K.D. Blake;
2) approve the quantum of the liquidators' remuneration, that
being fixed by the time properly spent by the liquidators
and their staff;
3) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
and
4) authorize the liquidators to retain the records of the
company and of the liquidators for a period of five years
from the dissolution of the company, after which they may
be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
K.D. Blake
Attention: Gundega Tamane
P.O. Box 493
Grand Cayman KY1-1106
Cayman Islands
Telephone: 345-949-4800
Fax: 345-949-7164
HDH SPECIAL: Sets Final Shareholders Meeting for May 16
-------------------------------------------------------
HDH Special Situations Fund will hold its final shareholders
meeting on May 16, 2007, at:
Zephyr House
Mary Street
P.O. Box 709
Grand Cayman, KY1-1107
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Huy Hoang
Attention: Alan G. de Saram
Charles Adams, Ritchie & Duckworth
P.O. Box 709
Zephyr House, Mary Street
George Town, Grand Cayman KY1-1107
Cayman Islands
Tel: 949-4544
Fax: 949-8460
HOTEI LTD: Proofs of Claim Filing Deadline Is May 17
----------------------------------------------------
Hotei Ltd.'s creditors are given until May 17, 2007, to prove
their claims to Richard Gordon and Joshua Grant, 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.
Hotei's shareholders agreed on March 30, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
HUNTSMAN INT'L: Will Hold Final Shareholders Meeting on May 16
--------------------------------------------------------------
Huntsman International Asset Backed Securities Ltd. will hold
its final shareholders meeting on May 16, 2007, at 10:45 a.m.,
at:
P.O. Box 1109
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
and
2) authorize the liquidators to retain the
records of the company for a period of five years
from the dissolution of the company, after which
they may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
Cereita Lawrence
Sylvia Lewis
P.O. Box 1109
Grand Cayman KY1-1102
Cayman Islands
Telephone: 949-7755
Fax: 949-7634
JLOC 2001-II: Sets Final Shareholders Meeting for May 16
--------------------------------------------------------
JLOC 2001-II Ltd. will hold its final shareholders meeting on
May 16, 2007, at 10:00 a.m., at:
P.O. Box 1109
Grand Cayman KY1-1102
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
and
2) authorize the liquidators to retain the
records of the company for a period of five years
from the dissolution of the company, after which
they may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
Kareen Watler
Beverly Bernard
P.O. Box 1109
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-7755
Fax: (345) 949-7634
NFA (CAYMAN): Proofs of Claim Must be Filed by May 17
-----------------------------------------------------
NFA (Cayman) Ltd.'s creditors are given until May 17, 2007, to
prove their claims to Joshua Grant and Jan Neveril, 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.
NFA's shareholders agreed on Jan. 31, 2007, to place the company
into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Joshua Grant
Jan Neveril
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
NSJ TWO: Proofs of Claim Filing Is Until May 17
-----------------------------------------------
NSJ Two Ltd.'s creditors are given until May 17, 2007, to prove
their claims to Chris Marett and Joshua Grant, 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.
NSJ Two's shareholders agreed on April 3, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Chris Marett
Joshua Grant
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
PORTUGAL BLUE: Proofs of Claim Must be Filed by May 16
------------------------------------------------------
Portugal Blue Chip Fund Ltd.'s creditors are given until
May 16, 2007, to prove their claims to Stuart K Sybersma and Ian
A N Wight, 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.
Portugal Blue's shareholders agreed on March 5, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Stuart Sybersma
Attention: Mervin Solas
Deloitte
P.O. Box 1787
George Town, Grand Cayman
Cayman Islands
Telephone: (345) 949 7500
Fax: (345) 949 8258
RYMBOURNE CAYMAN: Proofs of Claim Filing Is Until May 17
--------------------------------------------------------
Rymbourne Cayman Ltd.'s creditors are given until May 17, 2007,
to prove their claims to Glen Trenouth, 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.
Rymbourne Cayman's shareholder decided on March 19, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Glen Trenouth
P.O. Box 31118
Grand Cayman KY1-1205
Cayman Islands
Telephone: (345) 943 8800
Fax: (345) 943 8801
SEAGATE TECHNOLOGY: Deutsche & AG Edwards Reaffirms "Buy" Rating
----------------------------------------------------------------
Analysts at Deutsche Bank Securities and A.G. Edwards & Sons
have reiterated their "buy" recommendation on Seagate
Technology's shares, Newratings.com reports.
Newratings.com relates that Deutsche Bank analysts reduced their
target price on Seagate Technology to US$26 from US$30.
Meanwhile, A.G. Edwards analysts decreased their target price on
Seagate Technology's shares to US$28 from US$33.
Headquartered in Scotts Valley, California, and registered in
Cayman Islands, Seagate Technology (NYSE: STX) --
http://www.seagate.com/-- designs, manufactures and markets
hard disc drives, and provides products for a wide-range of
Enterprise, Desktop, Mobile Computing, and Consumer Electronics
applications.
* * *
Moody's Investors Service has confirmed on July 17, 2006, the
ratings of Seagate Technology HDD Holdings and upgraded the
ratings of Maxtor Corp., now a wholly owned subsidiary of
Seagate Technology US Holdings, following the completion of its
acquisition on May 19, 2006, and subsequent guaranteeing of
Maxtor's debt by Seagate. This concludes the review initiated
by Moody's on Dec. 21, 2005. The review was prompted by the
company's announcement of its intention to acquire Maxtor in an
all-stock transaction for approximately US$1.9 billion. The
ratings outlook is stable.
Moody's confirmed these ratings:
-- Corporate Family Rating: Ba1; and
-- SGL Rating of 1.
Moody's upgraded these ratings:
Seagate Technology HDD Holdings:
-- US$400 million senior notes 8%, due 2009: to Ba1
SEAGATE TECHNOLGY: Robert W & UBS Keeps Firm's "Neutral" Rating
---------------------------------------------------------------
Robert W Baird and UBS analysts have retained their "neutral"
rating on Seagate Technology, Newratings.com reports.
Newratings.com relates that Robert W analysts reduced their
estimates for Seagate Technology, setting the target price at
US$21 from US$25 per share.
Robert W analysts said in a research note that Seagate
Technology reported its third quarter 2007 earnings per share
short of the reduced consensus expectation due to adverse
pricing trends in high-cap desktop products.
The analysts told Newratings.com that Seagate Technology reduced
its revenue and earnings per share guidance for fourth quarter
2007 and fiscal year 2007 significantly short of the consensus
due to a drop in unit demand resulting from seasonality and
continued competitive pricing trends. The earnings per share
estimates for fiscal year 2007 was reduced to US$1.38 from
US$1.60, while estimates for fiscal year 2008 was decreased to
US$2.10 from US$2.35.
Meanwhile, UBS analysts reduced their estimates for Seagate
Technology, bringing down the target price to US$23 from US$26.
The analysts said in a research notes that Seagate Technology
reported its third quarter 2007 non-GAAP earnings per share
short of the estimates.
The downward revision in the earnings per share estimates
indicates a weaker market for the desktop consumer PCs and a
more challenging competitive environment, Newratings says,
citing the analysts.
Earnings per share estimates for Seagate Technology this year
declined to US$1.40 from US$1.66, while estimates for next year
dropped to US$2.16 from US$2.55.
Headquartered in Scotts Valley, California, and registered in
Cayman Islands, Seagate Technology (NYSE: STX) --
http://www.seagate.com/-- designs, manufactures and markets
hard disc drives, and provides products for a wide-range of
Enterprise, Desktop, Mobile Computing, and Consumer Electronics
applications.
* * *
Moody's Investors Service has confirmed on July 17, 2006, the
ratings of Seagate Technology HDD Holdings and upgraded the
ratings of Maxtor Corp., now a wholly owned subsidiary of
Seagate Technology US Holdings, following the completion of its
acquisition on May 19, 2006, and subsequent guaranteeing of
Maxtor's debt by Seagate. This concludes the review initiated
by Moody's on Dec. 21, 2005. The review was prompted by the
company's announcement of its intention to acquire Maxtor in an
all-stock transaction for approximately US$1.9 billion. Moody's
said the ratings outlook is stable.
Moody's confirmed these ratings:
-- Corporate Family Rating: Ba1; and
-- SGL Rating of 1.
Moody's upgraded these ratings:
Seagate Technology HDD Holdings:
-- US$400 million senior notes 8%, due 2009: to Ba1
SF BUILDING: Proofs of Claim Filing Ends on May 17
--------------------------------------------------
S.F. Building Holdings Inc.'s creditors are given until
May 17, 2007, to prove their claims to Nobuhiro Sakano, 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.
S.F. Building's shareholder decided on March 30, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Nobuhiro Sakano
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
SF TENNOUZU: Proofs of Claim Must be Filed by May 17
----------------------------------------------------
S.F. Tennouzu Development Holdings Inc.'s creditors are given
until May 17, 2007, to prove their claims to Nobuhiro Sakano,
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.
S.F. Tennouzu's shareholder decided on March 30, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Nobuhiro Sakano
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
VITA CAPITAL: Sets Final Shareholders Meeting for May 16
--------------------------------------------------------
Vita Capital Ltd. will hold its final shareholders meeting on
May 16, 2007, at 10:30 a.m., at:
P.O. Box 1109
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
and
2) authorize the liquidators to retain the
records of the company for a period of five years
from the dissolution of the company, after which
they may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
Cereita Lawrence
Sylvia Lewis
P.O. Box 1109
Grand Cayman KY1-1102
Cayman Islands
Telephone: 949-7755
Fax: 949-7634
=========
C H I L E
=========
AMC ENTERTAINMENT: Posts US$6.5MM Net Loss in Qtr. Ended Dec. 28
----------------------------------------------------------------
AMC Entertainment Inc. reported a net loss of US$6.5 million on
total revenues of US$596.4 million for the thirteen weeks ended
Dec. 28, 2006, compared with a net loss of US$4.5 million on
total revenues of US$398.6 million for the same period 12 months
earlier.
Total revenues increased 49.6%, or US$197.8 million, during the
thirteen weeks ended Dec. 28, 2006, compared to the thirteen
weeks ended Dec. 29, 2005. This increase included approximately
US$180.1 million of additional admission and concessions
revenues resulting from the merger on June 20, 2005, between
Marquee Holdings Inc., the company's parent company, and LCE
Holdings Inc., the parent company of Loews Cineplex
Entertainment Corp.
U.S. and Canada theatrical exhibition revenues increased 42.2%,
or US$164.4 million, mainly resulting from a 43.8% increase in
admissions revenues and a 43.9% increase in concession revenues.
International theatrical exhibition revenues increased
US$35.9 million. Overall, admissions revenues increased
US$16.8 million, while concessions revenues increased US$11.4
million, due to the theatres acquired in Mexico following the
merger. The remaining increase, or US$7.6 million, was from
other theater revenues.
Other revenues decreased 99.4%, or US$2.5 million.
Total costs and expenses increased 45.1%, or US$173.2 million,
mainly due to an increase in total costs and expenses of
approximately US$162.3 million as a result of the merger.
Interest expense increased 108.4%, or US$27.4 million, primarily
due to increased borrowings. On Jan. 26, 2006, the company sold
US$325,000,000 in aggregate principal amount of its 11% Senior
Subordinated Notes due 2016 and entered into the New Credit
Facility for US$850,000,000, of which US$645,125,000 is
currently outstanding as a variable rate term note. The company
also incurred interest expense related to debt held by Grupo
Cinemex, S.A. de C.V. of US$3,150,000 during the thirteen weeks
ended Dec. 28, 2006.
Investment income was US$2.9 million compared to an investment
loss of US$2.6 million for the thirteen weeks ended
Dec. 29, 2005.
The benefit for income taxes from continuing operations was
US$2.1 million, compared to US$2.7 million for the thirteen
weeks ended Dec. 29, 2005.
At Dec. 28, 2006, the company had total outstanding cash and
cash equivalents of US$468 million compared with US$230.1
million at March 30, 2006.
Cash flows provided by operating activities increased to
US$205.2 million during the thirty-nine weeks ended
Dec. 28, 2006, compared to cash flows provided by operating
activities of US$92.2 million during the thirty-nine weeks ended
Dec. 29, 2005.
At Dec. 28, 2006, the company's balance sheet showed
US$4,387.9 million in total assets, US$3,169.4 million in total
liabilities, and US$1,218.4 million in total stockholders'
equity.
Full-text copies of the company's financial statements for the
quarter ended Dec. 28, 2006, are available for free at
http://researcharchives.com/t/s?1d5c
About AMC Entertainment
Headquartered in Kansas City, Mo., AMC Entertainment Inc. --
http://www.amctheatres.com/-- is one of the world's leading
theatrical exhibition companies with interests in approximately
382 theatres with 5,340 screens as of Dec. 28, 2006. About 87
percent of the company's theatres are located in the U.S. and
Canada, and 13 percent in Mexico, Argentina, Brazil, Chile,
Uruguay, Hong Kong, France, and the United Kingdom.
* * *
As reported in the Troubled Company Reporter on April 1, 2007,
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' corporate credit ratings, on AMC Entertainment
Inc. and its parent company, Marquee Holdings Inc., and removed
them from CreditWatch. The ratings were originally placed on
CreditWatch with negative implications on July 12, 2006, based
on expectations for continuing high leverage.
EASTMAN KODAK: Board Elects Dolores Kruchten as Vice President
--------------------------------------------------------------
Eastman Kodak Company's Board of Directors has elected Dolores
K. Kruchten as the company's Vice President, effective
immediately.
Ms. Kruchten was appointed General Manager, Document Imaging and
Vice President, Graphic Communications Group in January 2007.
Ms. Kruchten joined Kodak in 1981, and has worked in site
engineering, manufacturing, research and development,
acquisitions, and information technology systems. Prior to
leading the Document Imaging business, she was General Manager,
Global Services, Graphic Communications Group, where she led the
integration of six service businesses into a single organization
with some US$570 million in revenue.
In 2003, Ms. Kruchten was named Worldwide General Manager,
Document Products & Services, and Vice President, Commercial
Imaging Group, where she led a global organization that included
R&D, product manufacturing, sales, service, and marketing of
production scanners, media, and traditional products.
Ms. Kruchten earned a Bachelor of Technology Degree in
Mechanical Engineering from Rochester Institute of Technology in
1987. She has been a finalist for several business leadership
recognitions, including the Jane Lanphear Legacy Award and the
Stevie Awards for Women Business Executive of the year. She
lives in Rochester, New York.
Headquartered in Rochester, New York, Eastman Kodak Company --
http://www.kodak.com/-- is a worldwide vendor of imaging
products and services. The company is committed to a digitally
oriented growth strategy focused on four businesses: Digital &
Film Imaging Systems - providing consumers, professionals, and
cinematographers with digital and traditional products and
services; Health -- supplying the medical and dental professions
with traditional and digital imaging and information systems, IT
solutions, and services; Graphic Communications - providing
customers with a range of solutions for prepress, traditional
and digital printing, document scanning, and multi-vendor IT
services; and Display & Components - supplying original
equipment manufacturers with imaging sensors as well as
intellectual property and materials for the organic light-
emitting diode and LCD display industries.
The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.
* * *
In February 2007, Moody's Investors Service said it is
continuing its review on Eastman Kodak's ratings for possible
downgrade including Corporate Family Rating at B1, Senior
Unsecured Rating at B2, and Senior Secured Credit Facilities at
Ba3.
===============
C O L O M B I A
===============
BANCOLOMBIA SA: Will Appeal Fine Imposed for Corfinsura Merger
--------------------------------------------------------------
Bancolombia S.A., pursuant to Decree 3139 of 2006, has notified
that the Superintendency of Finance issued Resolution No. 0467
of 2007, imposing a fine on Bancolombia for COP41,092,499. The
fine was imposed because the Superintendency of Finance believes
that Corfinsura S.A., which was merged into Bancolombia,
violated the regulations of operation of SEN -- Sistema
Electronico de Negociacion -- in transactions completed on
Oct. 25, 2004. Bancolombia intends to appeal the decision of
the Superintendency of Finance.
For more information, all interested parties may contact:
Sergio Restrepo
Executive VP
Tel: (011) 574-5108668
-- or --
Jaime A. Velasquez
Financial VP
Tel: (011) 574-5108666
-- or --
Mauricio Botero
IR Manager
Tel: (011) 574-5108866
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'.
====================
E L S A L V A D O R
====================
HERBALIFE LTD: Terminates Goldman's Services on Whitney Offer
-------------------------------------------------------------
Herbalife Ltd. formally terminated the advisory services of
Goldman Sachs, which had been engaged to advise the Special
Committee of the Board related to the unsolicited Whitney V
offer to purchase all of the outstanding shares of the company
at US$38 per share.
The company also announced that its board of directors has
authorized a program for the company to repurchase up to US$300
million of Herbalife common stock during the next two years, at
such times and prices as determined by company management, as
market conditions may warrant.
Additionally, the company's board of directors adopted a regular
quarterly cash dividend program. As part of this program, the
company announced a US$0.20 per share cash dividend, for the
first quarter 2007, payable on May 15, 2007, to shareholders of
record on April 30, 2007.
Michael O. Johnson, the company's chief executive officer said,
"We have a unique Distributor-driven business model that
generates significant free cash flow and is not fully
appreciated by the investment community. The actions of the
board reinforce our belief that our shares are undervalued at
current prices and that we can use excess cash to accelerate
returns to investors."
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.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: May Purchase Up to 15 Airbus Planes, Paper Says
----------------------------------------------------------------
British Airways Plc Chief Executive Willie Walsh told a German
paper that he could imagine buying 10 to 15 Airbus jets.
P-I Reporter relates that British Airways showed no enthusiasm
to be an early client for Airbus A380 -- a 555-passenger,
double-deck plane. British Airways had said in 2001 that the
aircraft wasn't appropriate for the airline's routes because it
was too big.
Meanwhile, The Boeing Co. -- a competitor of Airbus -- is hoping
to sell British Airways its 747-8, P-I Reporter notes. Boeing
is also offering the airline the 787 and more 777s, against
Airbus' A350 and A330.
P-I Reporter underscores that British Airways runs one of the
world's largest fleets of 747-400 passenger planes, planning to
gradually replace the older planes with the 777 rather than
adding more 747s. British Airways has been evaluating the
747-8.
According to the report, Airbus' A380 sales slow down due, in
part, to a two-year delay in getting the plane into the hands of
clients. Meanwhile, Boeing needs another big order from an
important airline customer like British Airways, as only
Lufthansa ordered the aircraft.
It could take several months before British Airways decides
which aircraft to order, P-I Reporter states.
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.
GOODYEAR TIRE: Directors Re-Elected at 2007 Annual Meeting
----------------------------------------------------------
Shareholders of The Goodyear Tire & Rubber Company re-elected 11
members of the company's Board of Directors at their 2007 Annual
Meeting.
Re-elected were:
* James C. Boland, vice chairman, Cavaliers Operating
Company, LLC;
* John G. Breen, former chairman of the board, The Sherwin-
Williams Company;
* William J. Hudson Jr., former president and chief operating
officer, AMP Inc.;
* Robert J, Keegan, chairman, chief executive officer and
president, Goodyear;
* Steven A. Minter, former president and executive director,
The Cleveland Foundation;
* Denise M. Morrison, senior vice president, Campbell USA
Soup, Sauce and Beverage;
* Rodney O'Neal, chief executive officer and president,
Delphi Corporation;
* Shirley D. Peterson, former partner, Steptoe & Johnson LLP;
* G. Craig Sullivan, former chairman and chief executive
officer, The Clorox Company;
* Thomas H. Weidemeyer, former senior vice president and
chief operating officer, United Parcel Service Inc.; and
* Michael R. Wessel, president, The Wessel Group Inc.
The shareholders also approved the appointment of
PricewaterhouseCoopers LLP as the company's independent
registered public accounting firm for 2007.
A shareholder proposal requesting the adoption of a simple
majority vote standard for all issues subject to shareholder
vote failed to receive a majority of votes outstanding.
In other business, shareholder proposals related to executive
compensation and retirement benefits failed to receive a
majority of votes outstanding.
Headquartered in Akron, Ohio, Goodyear Tire and Rubber Company
(NYSE:GT) -- http://www.goodyear.com/-- manufactures tires,
engineered rubber products and chemicals in more than 90
facilities in 28 countries around the world. Goodyear employs
more than 75,000 people worldwide. Goodyear Tire has marketing
operations in almost every country around the world including
Chile, Colombia, Guatemala and Peru in Latin America. Goodyear
employs more than 80,000 people worldwide. The company's
European operationis headquartered in Belgium.
* * *
As reported in the Troubled Company Reporter on April 10, 2007,
Fitch Ratings has affirmed ratings for The Goodyear Tire &
Rubber Company, including:
-- 'B' Issuer Default Rating; 'BB/RR1' rating of its
US$1.5 billion first-lien credit facility;
-- 'BB/RR1' rating of its US$1.2 billion second-lien term
loan;
-- 'B/RR4' rating of its US$300 million third-lien term loan;
-- 'B/RR4' rating of its US$650 million third-lien senior
secured notes; and
-- 'CCC+/RR6' Senior unsecured debt rating.
=============
J A M A I C A
=============
GOODYEAR TIRE: Says 4% Sen. Notes are Convertible Until June 29
---------------------------------------------------------------
The Goodyear Tire & Rubber Company said that its 4.00%
Convertible Senior Notes due June 15, 2034, are now convertible
at the option of the holders and will remain convertible through
June 29, 2007, the last business day of the current fiscal
quarter.
The notes became convertible because the last reported sale
price of the company's common stock for at least 20 trading days
during the 30 consecutive trading-day period ending on
April 17, 2007 (the 11th trading day of the current fiscal
quarter) was greater than 120 percent of the conversion price in
effect on such day. The notes have been convertible in previous
fiscal quarters.
The company will deliver shares of its common stock or pay cash
upon conversion of any notes surrendered prior to June 29, 2007.
If shares are delivered, cash will be paid in lieu of fractional
shares only. Issued in June 2004, the notes are currently
convertible at a rate of 83.0703 shares of common stock per
US$1,000 principal amount of notes, which is equal to a
conversion price of US$12.04 per share.
There is approximately US$350 million in aggregate principal
amount of notes outstanding.
If all outstanding notes are surrendered for conversion, the
aggregate number of shares of common stock issued would be
approximately 29 million. The notes could be convertible after
June 30, 2007, if the sale price condition described above is
met in any future fiscal quarter or if any of the other
conditions to conversion set forth in the indenture governing
the notes are met.
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear Tire has marketing operations in almost
every country around the world including Chile, Colombia,
Guatemala, Jamaica and Peru in Latin America. Goodyear employs
more than 80,000 people worldwide.
As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Fitch Ratings has affirmed ratings for The
Goodyear Tire & Rubber Co. and revised the rating outlook to
positive from stable:
-- Issuer Default Rating 'B';
-- US$1.5 billion first-lien credit facility 'BB/RR1';
-- US$1.2 billion second-lien term loan 'BB/RR1';
-- US$300 million third-lien term loan 'B/RR4';
-- US$650 million third-lien senior secured notes 'B/RR4';
-- Senior unsecured debt 'CCC+/RR6'.
SUGAR COMPANY: Audley Shaw Questions Debt Cancellation
------------------------------------------------------
Audley Shaw, Jamaican opposition party spokesperson on finance,
is questioning the government's handling of affairs at the Sugar
Company of Jamaica, particularly on its decision to write off
billions of dollars of the company's debt, Radio Jamaica
reports.
"To date, seven billion dollars has been either written off or
taken over by the Ministry of Finance, adding to the already
heavy debt burden that poor Jamaicans have to bear," Mr. Shaw
told Radio Jamaica.
Mr. Shaw commented to Radio Jamaica that the Sugar Company's
financial state is worsening.
"What is the plan going forward? What's happening with that
privatization program? Why is it dragging along like this,
while we have to be supporting overdrafts at... extortionary
levels of interest?" Radio Jamaica states, citing Mr. Shaw.
Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production. According to published
reports, the Jamaican government has taken responsibility for
the payment of the firm's debts.
WEST CORPORATION: Has US$508.6-Mil. Revenues in 2007 First Qtr.
---------------------------------------------------------------
West Corporation has declared its first quarter 2007 financial
results. "We are pleased with our first quarter results," said
Thomas B. Barker, Chief Executive Officer of West Corporation.
"The higher than anticipated adjusted EBITDA margin includes
non-recurring interest income of US$3.3 million as well as
reflecting our continued emphasis on growing the most profitable
parts of our business."
Consolidated Operating Results
For the first quarter ended March 31, 2007, revenues were
US$508.6 million compared to US$424.7 million for the same
quarter last year, an increase of 19.8 percent. Revenue from
acquired entities accounted for US$72.2 million of this
increase.
Balance Sheet and Liquidity
At March 31, 2007, the company had cash and cash equivalents
totaling US$275.6 million and working capital of US$147.1
million. Stock purchase obligations of approximately US$170.6
million related to the Company's recapitalization remain
outstanding and are included in current liabilities. First
quarter depreciation expense was US$25.1 million and
amortization expense was US$12.8 million. Cash flow from
operating activities was US$81.9 million and was impacted by
interest expense of US$80.2 million. Adjusted EBITDA for the
first quarter was US$145.4 million, or 28.6 percent of revenue.
A reconciliation of adjusted EBITDA to cash flow from operating
activities is presented below.
In the first quarter, the company amended its existing term loan
facility to reduce the interest rate on its term loan from 275
basis points over LIBOR to 237.5 basis points over LIBOR. The
amendment also increased the size of the term loan facility by
US$165 million. The balance of its outstanding term loan as of
March 31, 2007 was US$2.259 billion.
"During the quarter, we invested US$21.3 million in capital
expenditures for equipment and infrastructure," stated Paul
Mendlik, Chief Financial Officer of West Corporation. "We have
also been executing on our integration plans to realize the
synergies we anticipate from our recent acquisitions."
Acquisition
The company also reported that it has agreed to acquire Omnium
Worldwide, Inc., a provider of revenue cycle management
solutions to the insurance, financial services, communications
and healthcare industries. The transaction is expected to close
in the second quarter.
Omnium utilizes proprietary technology, data models and business
processes to improve its clients' cash flow. Omnium is a
leading provider of overpayment identification and claims
subrogation to the insurance industry. Omnium also has
expertise in identifying and processing probate claims on behalf
of credit grantors.
"The team at Omnium Worldwide has built an impressive business
through the development and use of outstanding technology,
proprietary workflow tools and strong client relationships. We
are thrilled to be partnering with Omnium CEO Doug Wilwerding
and his entire organization," stated Mr. Barker. "Omnium has
created a track record of delivering consistent revenue growth
with attractive EBITDA margins. Culture and strategy are
closely aligned at Omnium and West and by combining the two
companies we expect to establish a top-tier partner to better
meet our clients' needs and add greater diversity to our
revenue."
AT&T Revenue
During its Feb. 1, 2007 conference call with investors, the
company stated that it expected revenue from AT&T, the Company's
largest client, to be in the mid-teens as a percentage of the
company's total 2007 revenue. The company now expects revenue
contribution from AT&T to be approximately 13 percent of total
revenue for 2007. This reduction in revenue is driven by the
recent mergers within AT&T and the continued growth of West
Corp. The reduction is not related to West's quality or
performance.
2007 Guidance
As a result of the company's first quarter results, the Omnium
acquisition and the expected reduction in revenue from AT&T, the
company now anticipates the following results for the year
ending Dec. 31, 2007. This guidance assumes no additional
acquisitions or changes in the current operating environment.
Based in Omaha, Nebraska, West Corp. -- http://www.west.com--
is a leading provider of business process outsourcing services.
The company reported revenues of US$1.7 billion for the 12-month
period ending June 30, 2006. West operates through 3 business
segments: communication services (55% of revenues), conferencing
services (32% of revenues) and receivable management (13% of
revenues).
The company has operations in Mexico and Jamaica, among other
countries.
As of March 31, 2007, the company's balance sheet showed total
assets of US$2,753,841, total liabilities of US$3,963,477 and
stockholders' deficit of US$2,150,805.
* * *
As reported in the Troubled Company Reporter on Feb. 5, 2007,
Standard & Poor's Ratings Services affirmed its 'B+' loan and
'2' recovery ratings on the senior secured first-lien bank
facility of business process outsourcer West Corp., following
the announcement that the company will add US$165 million to its
first-lien term loan.
===========
M E X I C O
===========
ADVANCED MARKETING: Publishers Group West's Schedules of Assets
---------------------------------------------------------------
A. Real Property US$0
B. Personal Property
B.2 Bank accounts
Cash in Bank -- Main (US$370,438)
Cash in Bank -- New York 2,555
B.3 Security Deposits 30,000
B.16 Accounts receivable
Accounts Receivable, net 36,778,094
Vendor and Misc. Receivables 56,402
B.28 Office equipment and supplies 267,990
B.29 Machinery, furniture and fixtures 576,181
B.35 Other personal property
Notes Receivable 2,136,687
Prepaid Expense 163,647
Prepaid Insurance 58,333
TOTAL SCHEDULED ASSETS US$39,699,451
C. Property Claimed as Exempt Not applicable
D. Creditors Holding Secured Claims
Wells Fargo Foothill, Inc. US$41,514,348
E. Creditors Holding Unsecured
Priority Claims 565,365
F. Creditors Holding Unsecured Claims
Intercompany payable
Advanced Marketing Services 6,476,038
Publisher
Amber Allen Publishing 1,038,857
Avalon Travel Publishing 1,186,831
Backbeat Books 654,548
Berrett-Koehler 248,440
Canongate Books 613,616
Carroll & Graf 1,128,619
Carus Publishing 399,022
Children's Book Press 106,004
Cleis Press 326,091
CMP Books 185,802
Dark Horse 177,006
Demos Medical 120,142
DH Press 221,492
Douglas & McIntyre/Greyst 151,621
Emmis Books 230,615
Footprint Handbooks 162,265
Frog Ltd. 774,285
Gallup 677,179
Gibbs Smith 118,074
Groundwood 203,034
Grove/Atlantic 3,816,335
H J Kramer 156,518
Hugh L. Levin Associates 1,108,605
Hunter House 177,385
Inside Communications 363,379
Kabbalah Centre 151,435
Marlowe & Company 990,593
McSweeney's Publishing 548,773
Milkweed Editions 139,815
New World Library 1,333,414
New World Library/AAP 100,829
North Atlantic Books 589,051
Paperblank Book Company 809,166
Parallax Press 176,749
Passporter Travel Press 121,720
Plexus Publishing 106,315
Portable Press 459,340
Rich Publishing 4,513,830
Sasquatch Books 295,414
Seal Press 222,999
Shelter Publications 216,677
Shoemaker & Hoard 176,373
Silver Dolphin 526,528
The Audio Partners 286,731
Thunder Bay 437,866
Thunder's Mouth Press 224,080
Time Out 229,854
Tinwood Books 109,307
Travelers Tales 172,439
Trinity University Press 290,467
Ulysses Press 650,425
Underwood Books 308,097
Windsor Peak 346,372
Wisdom Publications 399,285
Accounts Payable -- Vendor
Federal Express Corp. 227,680
Grove/Atlantic 105,256
Yellow Transportation 307,943
Others 4,796,158
TOTAL SCHEDULED LIABILITIES US$83,272,493
Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry. The company
has operations in the U.S., Mexico, the United Kingdom and
Australia and employs approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.
Lowenstein Sandler PC represents the Official Committee of
Unsecured Creditors. When the Debtors filed for protection from
their creditors, they listed estimated assets and debts of more
than US$100 million. The Debtors' exclusive period to file a
chapter 11 plan expires on Apr. 28, 2007.
AMERICAN GREETINGS: Launches US$100-Mln Share Repurchase Program
----------------------------------------------------------------
The Board of Directors of American Greetings Corp. authorized a
new US$100 million share repurchase program as well as a 25%
increase in its quarterly cash dividend from 8 cents per share
to 10 cents per share.
The share repurchases will be made through a 10b5-1 program in
open market or privately negotiated transactions in compliance
with the SEC's Rule 10b-18, subject to market conditions,
applicable legal requirements and other factors.
The increased dividend will be paid on May 14, 2007, to
shareholders of record at the close of business on May 2, 2007.
About American Greetings
Headquartered in Cleveland, Ohio, American Greetings Corp.
(NYSE: AM) -- http://corporate.americangreetings.com/--
manufactures social expression products. American Greetings
also manufactures and sells greeting cards, gift wrap, party
goods, candles, balloons, stationery and giftware throughout the
world, primarily in Canada, the United Kingdom, Mexico,
Australia, New Zealand and South Africa.
* * *
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. consumer products sector, the rating
agency confirmed its Ba1 Corporate Family Rating for American
Greetings Corporation.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$300-million
sr. sec delay
draw term loan
due 2013 Ba1 Baa3 LGD2 28%
US$350-million
senior secured
revolving credit
facility due 2011 Ba1 Baa3 LGD2 28%
US$200-million
senior unsecured
notes due 2016 Ba2 Ba2 LGD5 81%
US$22.7-million
senior unsecured
notes due 2028 Ba2 Ba2 LGD5 81%
AMERICAN GREETINGS: Has US$42M Net Profit for Year Ended Feb. 28
----------------------------------------------------------------
American Greetings Corp. posted US$42.4 million in net profit on
US$1.7 billion in net sales for the full year ended
Feb. 28, 2007, compared with US$84.4 million in net profit on
US$1.9 million in net sales for the year ended Feb. 28, 2006.
The company posted US$12.2 million in net losses on
US$472.8 million in net sales for the fourth quarter ended
Feb. 28, 2007, compared with US$41.8 million in net profit on
US$507.4 million in net sales for the fourth quarter ended
Feb. 28, 2006.
"I am pleased that we continued to execute against our goal of
improving the return on capital employed and generating strong
cash flow," Zev Weiss, Chief Executive Officer, said. "We
generated cash flow from operating activities less capital
expenditures of US$225 million, well above our initial estimates
and even beyond our December guidance."
Outlook for Fiscal Year 2007-2008
"For fiscal year 2008, we are projecting earnings per share
between US$1.35 and US$1.55," Mr. Weiss said. "I am looking
forward to improved earnings as a large portion of the
investments in our strategic card initiative is now behind us.
In addition, we are able to continue returning capital to our
shareholders by repurchasing shares and increasing the
dividend."
As of Feb. 28, 2007, American Greetings had US$1.7 billion in
total assets, US$736 million in total liabilities and
US$1 billion in total shareholders' equity.
About American Greetings
Headquartered in Cleveland, Ohio, American Greetings Corp.
(NYSE: AM) -- http://corporate.americangreetings.com/--
manufactures social expression products. American Greetings
also manufactures and sells greeting cards, gift wrap, party
goods, candles, balloons, stationery and giftware throughout the
world, primarily in Canada, the United Kingdom, Mexico,
Australia, New Zealand and South Africa.
* * *
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. consumer products sector, the rating
agency confirmed its Ba1 Corporate Family Rating for American
Greetings Corporation.
Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$300-million
sr. sec delay
draw term loan
due 2013 Ba1 Baa3 LGD2 28%
US$350-million
senior secured
revolving credit
facility due 2011 Ba1 Baa3 LGD2 28%
US$200-million
senior unsecured
notes due 2016 Ba2 Ba2 LGD5 81%
US$22.7-million
senior unsecured
notes due 2028 Ba2 Ba2 LGD5 81%
CLEAR CHANNEL: Amends Merger Deal & Resets Shareholders' Mtg.
-------------------------------------------------------------
Clear Channel Communications Inc. amended its merger agreement
with a private equity group co-led by Bain Capital Partners, LLC
and Thomas H. Lee Partners, L.P., providing for an increase to
US$39.00 per share in the price shareholders will receive in
cash for each share of Clear Channel common stock they hold.
This is an increase from the previous price of US$37.60 per
share in cash.
The increased all-cash merger consideration of US$39.00 per
share represents a premium of approximately 33.3% over the
average closing share price during the 60 trading days ended
October 24, 2006, the day prior to Clear Channel's announcement
of the board of directors' decision to consider strategic
alternatives.
The board of directors of Clear Channel, with the interested
directors recused from the vote, has unanimously approved the
amended merger agreement and recommends that the shareholders
approve the amended merger agreement and the merger.
In conjunction with the increased cash purchase price, Clear
Channel agreed to pay certain fees if the merger does not close
and Clear Channel subsequently consummates a sale of the
company.
Rescheduled Shareholders' Meeting
Clear Channel will promptly send updated proxy materials to
shareholders and has rescheduled the Special Meeting of
Shareholders to Tuesday, May 8, 2007, at 9:00 a.m., Central
Daylight Savings Time, to allow shareholders time to consider
the increase in merger consideration. Shareholders of record as
of March 23, 2007, remain entitled to vote at the Special
Meeting. Shareholders with questions about the merger or how to
vote their shares should call the Company's proxy solicitor,
Innisfree M&A Incorporated, toll-free at (877) 456-3427.
About Thomas H. Lee Partners, L.P.
THL Partners is one of the oldest and most successful private
equity investment firms in the United States. Since its
founding in 1974, THL Partners has become the preeminent growth
buyout firm, investing approximately US$12 billion of equity
capital in more than 100 businesses with an aggregate purchase
price of more than US$100 billion, completing over 200 add-on
acquisitions for portfolio companies, and generating superior
returns for its investors and partners. The firm currently
manages approximately US$20 billion of committed capital.
Notable transactions sponsored by the firm include Dunkin
Brands, Nielsen, Michael Foods, Houghton Mifflin Company, Fisher
Scientific, Experian, TransWestern, Snapple Beverage and
ProSiebenSat1 Media.
About Bain Capital Partners LLC
Bain Capital -- http://www.baincapital.com/-- is a global
private investment firm that manages several pools of capital
including private equity, high-yield assets, mezzanine capital
and public equity with more than US$40 billion in assets under
management. Since its inception in 1984, Bain Capital has made
private equity investments and add-on acquisitions in over 230
companies around the world, including investments in a broad
range of companies such as Burger King, HCA, Warner Chilcott,
Toys "R" Us, AMC Entertainment, Sensata Technologies, Burlington
Coat Factory and ProSiebenSat1 Media. Headquartered in Boston,
Bain Capital has offices in New York, London, Munich, Tokyo,
Hong Kong and Shanghai.
About Clear Channel Communications
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a global media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.
* * *
Clear Channel's long-term local and foreign issuer credits carry
Standard & Poor's BB+ rating.
In addition, the company's senior unsecured debt and long-term
issuer default ratings were placed by Fitch at BB- on
Nov. 16, 2006.
JOAN FABRICS: Hires Carl Marks as Financial Advisor
---------------------------------------------------
Joan Fabrics Corporation has retained New York-based Carl Marks
Advisory Group LLC as its financial advisor. CMAG will
facilitate the sale of the company or its assets and has also
assumed control of the day-to-day operations in connection with
the Chapter 11 filing.
Parties interested in considering a bid for Joan Fabrics or its
assets should contact one of the following CMAG Managing
Directors: Patrick Lagrange at 212-909-8411 or Jette Campbell at
704-962-0926.
About Carl Marks
Carl Marks Advisory Group LLC provides a wide array of
investment banking and financial and operational advisory
services to the middle market, including mergers and
acquisitions advice, debt and equity capital placements,
financial restructuring plans, strategic business assessments,
improvement plans and interim management. The firm can be
reached at:
Carl Marks Advisory Group LLC
900 Third Avenue, 33rd Floor
New York, New York 10022-4775
About Joan Fabrics
Headquartered in Tyngsboro, Massachusetts, and founded in 1932,
Joan Fabrics Corporation manufactures top quality woven
jacquard and velour fabrics. The companies have manufacturing
facilities in North Carolina and an affiliate entity in Mexico.
The company filed for Chapter 11 protection on April 10, 2007
(Bankr. D. Del. Case No.: 07-10479). Its Debtor-affiliate,
Madison Avenue Designs LLC (Bankr. D. Del. Case No.: 07-10480)
filed separately on the same date. Curtis A. Hehn, Esq., Laura
Davis Jones, Esq., Michael Seidl, Esq. of Pachulski, Stang,
Ziehl, Young, Jones & Weintraub LLP and Richard E. Mikels, Esq.
of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC, represent
the Debtors in their restructuring efforts. When the Debtors
filed for protection from its Creditors, it listed assets and
debts between US$1 million to US$100 million.
JOAN FABRICS: Organizational Meeting Scheduled Today
----------------------------------------------------
Kelly Beaudin Stapleton, the U.S. Trustee for Region 3, will
hold an organizational meeting to appoint an official committee
of unsecured creditors in Joan Fabrics Corporation and its
debtor-affiliate's chapter 11 case tomorrow at 2:00 p.m., on
April 20, 2007, at Room 5209, J. Caleb Boggs Federal Building,
844 North King Street, in Wilmington, Delaware.
The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtor's cases. The
meeting is not the meeting of creditors pursuant to Section 341
of the Bankruptcy Code. However, a representative of the Debtor
will attend and provide background information regarding the
cases.
Creditors interested in serving on a Committee should complete
and return to the U.S. Trustee a statement indicating their
willingness to serve on an official committee.
Official creditors' committees, constituted under Section 1102
of the Bankruptcy Code, ordinarily consist of the seven largest
creditors who are willing to serve on a committee. In some
Chapter 11 cases, the U.S. Trustee is persuaded to appoint
multiple creditors' committees.
Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtors' expense. They may investigate the Debtor's business
and financial affairs. Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent. Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest. If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee. If the
Committee concludes that the reorganization of the Debtors is
impossible, the Committee will urge the Bankruptcy Court to
convert the Chapter 11 cases to a liquidation proceeding.
Headquartered in Tyngsboro, Massachusetts and founded in 1932,
Joan Fabrics Corporation manufactures top quality woven
jacquard and velour fabrics. The companies have manufacturing
facilities in North Carolina and an affiliate entity in Mexico.
The company filed for Chapter 11 protection on April 10, 2007
(Bankr. D. Del. Case No.: 07-10479). Its Debtor-affiliate,
Madison Avenue Designs LLC (Bankr. D. Del. Case No.: 07-10480)
filed separately on the same date. Curtis A. Hehn, Esq., Laura
Davis Jones, Esq., Michael Seidl, Esq. of Pachulski, Stang,
Ziehl, Young, Jones & Weintraub LLP and Richard E. Mikels, Esq.
of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC, represent
the Debtors in their restructuring efforts. When the Debtors
filed for protection from its Creditors, it listed assets and
debts between US$1 million to US$100 million.
METROLOGIC INSTRUMENTS: Picks Jim Griffin as Biz Dev't Director
---------------------------------------------------------------
Metrologic Instruments Inc. has appointed Jim Griffin as the
director of business development for Metrologic - The Americas.
In this role, Mr. Griffin will be responsible for accelerating
the company's sales and partnership initiatives in the grocery
and general retail vertical markets within North America.
"Jim is going to have an immediate and positive impact on our
efforts to expand Metrologic's presence with retailers and the
solution providers who serve the grocery market," said Greg
DiNoia, vice president of Metrologic - The Americas. "He has
extensive experience, understanding and long-standing
relationships within this area of opportunity for Metrologic."
Prior to joining Metrologic, Mr. Griffin served in a number of
executive and sales roles working with point- of-sale VAR's,
distributors and OEM-solution providers in the retail point-of-
sale industry.
Mr. Griffin commented, "Metrologic has built a solid reputation
of providing excellent products and exceptional service with
retailers at all levels. In addition, the recently launched
updates to the Stratos bi-optic scanner and Stratos
scanner/scale product line now provide definite advantages over
any other bi-optics on the market today. Having thoroughly
reviewed the Stratos bi-optic line prior to joining Metrologic,
I know that Metrologic and the product line offering provide
distinct advantages to retailers, resellers, and distributors.
Solution providers and end users who serve the grocery market
will surely appreciate Metrologic's best-in-class products and
our 'we really work for you' mindset."
Headquartered in Blackwood, New Jersey, Metrologic Instruments,
Inc. is a global supplier for data capture and collection
hardware, and image processing software. The company had LTM
September 2006 revenues of approximately US$210 million. The
company has operations in Brazil and Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 9, 2007, Standard & Poor's Rating Services revised its
outlook on Metrologic Instruments Inc. to negative from stable,
and affirmed the 'B+' corporate credit rating. The revision in
the outlook reflects increased leverage, to the mid-5x area from
the mid-4x area, resulting from US$45 million in additional debt
to buy out shares held by the company's founder, as well as a
redemption of preferred equity held by remaining shareholders.
As reported in the Troubled Company Reporter-Latin America on
April 5, 2007, Moody's Investors Service downgraded Metrologic
Instruments' corporate family rating and probability of default
rating to B3 from B2 following the recent debt financed share
repurchase. At the same time, Moody's assigned a B2 rating to
the first lien secured credit facility, which is comprised of a
US$170 million term loan (split into two tranches) and a US$35
million undrawn revolver, and a Caa2 rating to the US$75 million
senior secured second lien. Proceeds from the transaction were
used to refinance US$200 million of debt (US$125 million first
lien and US$75 million second lien) and to repurchase about
US$40 million of stock. The ratings on the existing first and
second lien facilities will be withdrawn upon closing. Moody's
said the ratings outlook is stable.
NEWPARK RESOURCES: Janco Partners Puts "Buy" Rating on Shares
-------------------------------------------------------------
Janco Partners analyst Vijay Singh has placed a "buy" rating on
Newpark Resources, and set the target price at US$10 per share,
Newratings.com reports.
Newratings.com relates that the analyst said in a research note
on April 16 that robust industry fundamentals are boosting
Newpark Resources' core business.
Newpark Resources, with the removal of the E&P Waste business,
would eliminate a slow growing business with weak margins,
Newratings.com states, citing the analyst.
Newratings.com is expected to achieve free cash flows of up to
US$50 million in 2007, Janco Partners told Newratings.com.
Newpark Resources, Inc., (NYSE: NR) -- http://www.newpark.com/
-- is a worldwide provider of drilling fluids,environmental
waste treatment solutions, and temporary worksites and access
roads for oilfield and other commercial markets in the United
States Gulf Coast, west Texas, the United States Mid-continent,
the United States Rocky Mountains, Canada, Mexico, and areas of
Europe and North Africa.
As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2007, Moody's Investors Service affirmed these ratings
of Newpark Resources with a stable outlook:
-- B1 Corporate Family Rating;
-- B1 Probability of Default Rating; and,
-- B2 LGD4, 58% rated senior secured term.
* IDB Approves US$400 Million Credit Facility for Mexico Project
----------------------------------------------------------------
The Inter-American Development Bank has approved a partial
credit guarantee of up to US$400 million for the first project
under Mexico's new toll road concession program.
The project backed by the IDB involves the concession of a
network of four highways covering 558 kilometers in the states
of Guanajuato, Jalisco, Michoacan and Aguascalientes that are
currently run by a government trust fund.
Mexico's Communications and Transportation Ministry plans to
turn several toll roads over to private sector operators in
order to raise resources to retire debt related to the trust
fund and to finance basic infrastructure investment in poorer
regions.
The IDB expects the future operator of the toll roads to use the
partial credit guarantee as an enhancement to issue bonds or
access bank loans denominated in Mexican pesos for terms longer
than 25 years.
"We expect this product to facilitate attractive financing
alternatives for the winning consortia", said Hans Schulz, head
of the Financial Markets Group of the IDB's Private Sector
Department.
With this enhancement, the bonds for this project could achieve
the highest possible credit rating for the Mexican capital
market and attract institutional investors, pension funds,
insurance companies and commercial banks. Using the guarantee
the toll road operator will be able to issue more debt with a
higher credit rating than the project would otherwise be
possible.
"This innovative approach will add value in the bidding process
and improve the ultimate concessionaire's financing package to
acquire the system," added Michael Ratliff, head of the Private
Sector Department's Transportation Group.
The project was prepared jointly by the Private Sector
Department's Financial Markets and Transportation Groups.
Senior investment officer Kelle Bevine (PRI/OP1) and investment
officers John Graham and Victor Salgado Martinez (PRI/OP3) led
the project team.
Similar to other IDB transactions utilizing partial credit
guarantees to support capital market issuers, reimbursements,
fees and other charges related to this guarantee will be
denominated in local currency, reducing the exchange risk for
the debt issuer.
The IDB and Mexico recently signed a memorandum of understanding
to expand financing for infrastructure investments backed by the
federal government or state governments, with emphasis on
projects involving the private sector or public-private
partnerships.
=================
N I C A R A G U A
=================
* NICARAGUA: Regulator Proposes to Fine LPG Distributors
--------------------------------------------------------
Rolando Arriola, Nicaraguan energy regulator Instituto
Nicaraguense de Energia's hydrocarbons director, told Business
News Americas that the agency has presented a proposal to the
energy and mines ministry that will let it fine liquefied
petroleum gas or LPG distributors.
Mr. Arriola explained to BNamericas that the INE doesn't have
the power to fine retail and wholesale distributors of bottled
LPG, the sole hydrocarbon in Nicaragua that's regulated in terms
of price.
According to BNamericas, Mr. Arriola said that the regulator is
considering fining distributors that don't follow the official
LPG prices through the consumer defense law the development,
industry and trade ministry enforces.
BNamericas relates that the regulator will also concentrate on
the improvement of its human and technical resources to improve
its regulatory mandate, which is its sole mission.
Mr. Arriola told BNamericas that environmental monitoring and
inspections along the entire hydrocarbons supply chain will also
be stepped up.
Nicaraguan President Daniel Ortega formed the ministry this year
as part of an organizational reform plan. The ministry's
responsibility includes granting exploration and production
concessions, which had been part of the hydrocarbons
department's duties, BNamericas states.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
=======
P E R U
=======
COMVERSE TECHNOLOGY: Names Andre Dahan as President & CEO
---------------------------------------------------------
Comverse Technology Inc. named Andre Dahan, the former President
and CEO of AT&T Wireless' Mobile Multimedia Services, as
President, Chief Executive Officer and a member of the company's
Board of Directors, effective April 30, 2007.
Mr. Dahan has more than 30 years of global leadership experience
in the wireless and technology sectors. In addition to his work
with AT&T Wireless, he has held senior executive positions with
Dun & Bradstreet, Teradata Corporation (now NCR) and Sequent
Computer Systems. He also has served on the boards of several
leading, global telecommunications and information technology
companies.
Mark Terrell, Chairman of Comverse Technology's Board of
Directors, said, "Andre Dahan is an exceptional leader with the
vision, global experience and deep industry and technical
knowledge to help make Comverse Technology even stronger for its
investors, customers, partners and employees. Andre has
achieved an extraordinary track record of success in growing and
delivering superior operating results at telecommunications and
technology businesses in highly competitive markets around the
world as well as in driving key corporate and product
innovations -- always with a focus on serving the needs of
customers. In particular, Andre's operational background in key
global markets for our products and services will be of great
benefit as we move forward. Andre gets results, and as we
continue to focus on building the value of our business, we are
confident that he is the right leader at the right time."
Mr. Terrell also noted, "Andre will play a key role in the
comprehensive strategic review that is now underway of the
company's portfolio and of its corporate and capital structure.
In addition, Andre will work closely with Yaron Tchwella,
President of Comverse, Inc., and the heads of Verint Systems,
Ulticom and our other subsidiaries, in pursuing operational
excellence."
Mr. Dahan said, "I am honored to have this opportunity and
excited by the possibilities that lie ahead for Comverse
Technology. Comverse has earned a powerful reputation for
technological innovation, commercial success and relentless
focus on customers. I look forward to working with Comverse's
talented Board and employees to continue to build on this record
of outstanding performance, with a focus on delivering superior
shareholder return. I believe strongly that Comverse is well
positioned to continue to deliver the critical products and
services its customers need to succeed today, and to become an
even more valuable partner to them going forward."
Mr. Dahan, 58, served as President and Chief Executive Officer
of Mobile Multimedia Services at AT&T Wireless from July 2001 to
December 2004. Before that, he served as President of North
America and Global Accounts and in several other global
executive positions for Dun & Bradstreet. In addition, Mr.
Dahan previously served in a variety of senior executive
positions with Teradata Corp. (now NCR), Sequent Computer
Systems and S.E. Qual, an information technology consulting
firm.
He began his career as a database architect and held a variety
of technical positions with MALAM, IAI and IBM. Mr. Dahan
graduated from Hadassah College in Jerusalem, with a degree in
software engineering.
Mr. Dahan currently serves on the board of Red Bend Software,
which provides mobile software management solutions to mobile
companies worldwide, and NeuStar, Inc., a provider of
clearinghouse services to the global communications and Internet
industries. With NeuStar, he is a member of the Audit Committee
and the Governance Committee of the Board of Directors. He also
serves as a board observer for IXI Mobile, Inc., the mobile
messaging solutions provider. He was formerly a director of
PalmSource, Inc., a supplier of the operating systems for
Palm handheld devices, until its acquisition in November 2005.
Mr. Dahan will be stepping down from his positions with the
boards of NeuStar and IXI Mobile before beginning his work with
Comverse Technology.
About Comverse Technology
Comverse Technology, Inc., -- http://www.cmvt.com/-- (Pink
Sheets: CMVT.PK) through its Comverse, Inc. subsidiary, provides
software and systems enabling network-based multimedia enhanced
communication and billing services. The company's Total
Communication portfolio includes value-added messaging,
personalized data and content-based services, and real-time
converged billing solutions. Over 500 communication and content
service providers in more than 130 countries use Comverse
products to generate revenues, strengthen customer loyalty and
improve operational efficiency. Other Comverse Technology
subsidiaries include: Verint Systems (VRNT.PK), which provides
analytic software-based solutions for communications
interception, networked video security and business
intelligence; and Ulticom (ULCM.PK), which provides service
enabling signaling software for wireline, wireless and Internet
communications.
In Latin America, Comverse has operations in Argentina, Brazil,
Mexico and Peru.
* * *
As reported in the Troubled Company Reporter on Feb. 5, 2007,
Standard & Poor's Ratings Services kept its 'BB-' corporate
credit and senior unsecured debt ratings on New York-based
Comverse Technology Inc. on CreditWatch with negative
implications, where they were placed on March 15, 2006.
HANOVER COMPRESSOR: To Redeem US$30-Million Notes on May 8
----------------------------------------------------------
Hanover Compressor Company disclosed the call for redemption on
May 8, of US$29,897,000 aggregate principal amount of the
Convertible Junior Subordinated Debentures Due 2029.
All of the Debentures are owned by Hanover Compressor Capital
Trust and the Trust is required to use the proceeds received
from such redemption to redeem US$29 million aggregate
liquidation amount of its 7-1/4% Convertible Preferred
Securities and US$897,000 aggregate liquidation amount of its 7-
1/4% Convertible Common Securities. Hanover owns all of the
Common Securities of the Trust.
The Preferred Securities to be redeemed will be selected in
accordance with the applicable procedures of The Depository
Trust Company for partial redemptions.
Prior to 5:00 p.m., Eastern Time, on May 7, holders may convert
their Preferred Securities called for redemption on the basis of
one Preferred Security per US$50 principal amount of Debentures
which will then be immediately converted into shares of Hanover
Compressor Company common stock at a price of US$17.88 per
share, or 2.80 shares of Hanover common stock per US$50
principal amount. Cash will be paid in lieu of fractional
shares.
Alternatively, holders may have their Preferred Securities that
have been called for redemption, redeemed on May 8, 2007. Upon
redemption, holders will receive US$50 for each of their
Preferred Securities, plus accrued and unpaid distributions
thereon from March 15, 2006, up to but not including May 8,
2007. Any of the Preferred Securities called for redemption and
not converted on or before 5:00 p.m., Eastern Time, on May 7,
will be automatically redeemed on May 8, and no further
distributions will accrue.
Holders of the Preferred Securities should complete the
appropriate instruction form for redemption or conversion, as
applicable, pursuant to The Depository Trust Company's book-
entry system and follow such other directions as instructed by
The Depository Trust Company.
About Hanover Compressor
Headquartered in Houston, Texas, Hanover Compressor Company,
(NYSE: HC) -- http://www.hanover-co.com/-- rents and repairs
compressors and performs natural gas compression services for
oil and gas companies. The company's subsidiaries also provide
service, fabrication, and equipment for oil and natural gas
processing and transportation applications. It has facilities
in Argentina, Bolivia, Brazil, Colombia, Mexico, Peru,
Venezuela, India, China, Indonesia, Japan, Korea, Taiwan, the
United Kingdom, and Vietnam, among others.
* * *
As reported in the Troubled Company Reporter on Feb. 8, 2007,
Standard & Poor's Ratings Services placed the 'BB-' corporate
credit ratings on oilfield service company Hanover Compressor
Co. and its related entity Hanover Compression L.P. on
CreditWatch with positive implications.
IMPSAT FIBER: Extends Tender Offer Expiration Date to April 24
--------------------------------------------------------------
IMPSAT Fiber Networks, Inc.'s previously announced cash tender
offer, consent solicitation and waiver for its Series A 6%
Senior Guaranteed Convertible Notes due 2011 and its
Series B 6% Senior Guaranteed Convertible Notes due 2011 has
been extended. The Offer is being made pursuant to an Offer to
Purchase and Consent Solicitation Statement, dated
Jan. 29, 2007, and an accompanying Letter of Transmittal and
Consent, as amended by a supplement dated Feb. 15, 2007, and a
second supplement dated Feb. 26, 2007.
The expiration date of the Offer is now 5:00 p.m., New York City
time, on April 24, 2007. As of 5:00 p.m., New York City time,
on April 17, 2007, which was the previous expiration date,
Impsat had received valid tenders from holders of US$66,433,749,
or approximately 98% of the outstanding Series A Notes and
US$25,374,000, or approximately 99% of the outstanding Series B
Notes.
The Offer had been previously amended to reflect that if the
Offer is extended beyond March 15, 2007, holders of Notes on
March 15, 2007, will receive the normal interest payment for the
Notes and thereafter the purchase price for each US$1,000
principal amount of Notes shall be US$1,010, plus an amount
equal to US$0.17 per US$1,000 of principal amount of Notes for
each day after March 15, 2007 to, but excluding, the date on
which the Notes are purchased. Therefore, as a result of this
extension, a holder of US$1,000 of principal amount of Notes
should expect to receive an additional US$6.80, for a total
consideration of US$1,016.80, unless the Offer is further
extended, in which case holders of Notes shall receive an
additional US$0.17 per US$1,000 of principal amount of Notes for
each day the Offer is extended after April 24, 2007 to, but
excluding, the date on which the Notes are purchased. Payment
made in respect of any Notes validly tendered (and not
previously validly withdrawn) is expected to be promptly
following the Expiration Time.
On Oct. 25, 2006, Impsat entered into an Agreement and Plan of
Merger with Global Crossing Limited and GC Crystal Acquisition,
Inc. pursuant to which Impsat would be acquired by Global
Crossing. The Offer is being made in connection with the
proposed merger, and the Offer is conditioned upon the
consummation of the proposed merger upon satisfaction or waiver
of the conditions to closing of the merger. The consent
solicitation with respect to the Series A Notes is conditioned
upon the receipt by Impsat of valid consents from holders of a
majority in principal amount of the Series A Notes outstanding
and unaffiliated with Impsat. The consent solicitation with
respect to the Series B Notes is conditioned upon the receipt by
Impsat of holders of a majority in principal amount of the
Series B Notes outstanding and unaffiliated with Impsat. The
waiver with respect to the Series A Notes is conditioned upon
the receipt by Impsat of valid waivers from holders of two-
thirds in principal amount of the Series A Notes outstanding and
unaffiliated with Impsat. The waiver with respect to the Series
B Notes is conditioned upon the receipt by Impsat of valid
waivers from holders of two- thirds in principal amount of the
Series B Notes outstanding and unaffiliated with Impsat.
The proposed amendments and waivers will not become operative
until the closing of the merger. There is no separate payment
for the consent solicitation and waiver, and satisfaction of the
consent solicitation and waiver is not a condition for the
closing of the tender offer. The Offer may be extended or
terminated by Impsat at its option.
The company has retained Goldman, Sachs & Co. to serve as Dealer
Manager and Solicitation Agent, Georgeson Inc. to serve as
Information Agent and The Bank of New York to serve as
Depositary Agent for the Offer. Requests for documents may be
made directly to Georgeson Inc. by telephone at: (212) 440- 9800
(banks and brokers) or (866) 277-5068 (toll free), or in writing
at 17 State St. 10th Floor, New York, NY 10004. Questions
regarding the solicitation of consents may be directed to
Goldman, Sachs & Co. by telephone at: (800) 828-3182 (toll free)
or (212) 357-0775 (collect), or in writing at One New York
Plaza, 48th Floor, New York, New York 10004, Attention: Credit
Liability Management Group.
IMPSAT Fiber Networks Inc. (OTC: IMFN.OB) --
http://www.impsat.com/-- provides private telecommunications
networks and Internet services in Latin America. The company
owns and operates 15 metropolitan area networks in some of the
largest cities in Latin America and has 15 facilities to provide
hosting services, providing services to more than 4,500 national
and multinational client. IMPSAT has operations in Argentina,
Colombia, Brazil, Venezuela, Ecuador, Chile, Peru and the United
States.
Going Concern Doubt
In its audit report on the consolidated financial statements for
year ended Dec. 31, 2006, auditors working for Deloitte & Touche
LLP noted that IMPSAT Fiber Networks, Inc.'s current liquidity
position, high debt obligations, and negative operating results
raise substantial doubt as to its ability to continue as a going
concern.
=====================
P U E R T O R I C O
=====================
AVNET INC: Breaks Ground on 228,000-Square-Foot Arizona Facility
----------------------------------------------------------------
Avnet, Inc., broke ground on a new integration and logistics
facility in Chandler, Arizona. Ryan Companies US, Inc. will
develop and construct the approximately 228,000-square-foot
facility in the flex-industrial complex at Chandler Freeways
Business Park and lease it back to Avnet. The building is
scheduled for occupancy in May 2008. The facility will house a
state-of-the-art integration center capable of building and
shipping approximately 700,000 systems annually, in addition to
a new warehouse dedicated to integration activities.
"Avnet's integration services team, which customizes computing
hardware and software in thousands of possible configurations,
has been growing steadily in the Phoenix metro area," said Fred
Cuen, president, Avnet Technology Solutions, Americas.
"Increasing demand for Avnet's higher-end technology integration
services, such as complex server configurations and software
customization, drove our need for additional floor space, power
and network capabilities."
Avnet's new facility in Chandler will roughly double the
company's Americas integration capacity, supporting continued
growth in the region while providing improved flexibility to
quickly and effectively adapt to high-end configuration
requirements.
A dedicated warehouse supports Avnet's goal of providing rapid
completion of integrated solutions for customers. "As
globalization of our business continues, Avnet's expertise in
logistics has become even more valuable to our customers
worldwide. Supporting both our customers' integration and
logistics needs under one roof allows us to deliver better
service faster and at a lower overall cost," said Jim Smith,
president, Avnet Logistics.
The new facility will also support the integration and
distribution operations of Avnet's recently acquired Access
Distribution business. The facility is located near Avnet's
existing North American flagship distribution center in
Chandler, providing the company with improved access to shared
resources, transportation and facilities.
"We enjoyed working with Avnet previously on their Technology
Solutions building at the ASU Research Park," said Chuck
Carefoot, vice president of construction for Ryan Companies US,
Inc. "It seemed a natural fit for Avnet to look nearby to the
Chandler Freeways Business Park for their integration and
logistics facility."
Located on a 13.11-acre site just south of SR 202 and east of
I-10, Avnet's building will include a 183,061-square-foot first
floor to be used as an integration and logistics facility, and a
46,679-square-foot second floor for office space. The project
also includes parking for 479 cars, a recessed truck dock
accommodating 14 truck bays, two drive-in dock doors, and a
secured dockyard with guardhouse and motorized gates.
Ryan expects to receive the shell-building permit later this
month, and is managing all permits and approvals for the
project. Balmer Architectural Group is the architect for the
project. Bill Littleton of Colliers International served as
broker.
About Ryan Companies US
Ryan Companies US, Inc. is a leading national commercial real
estate firm offering integrated design-build construction and
development as well as asset, property and facilities management
services to customers. In addition to its Phoenix office, Ryan
has offices in Minneapolis, Chicago, San Diego, Tampa, Cedar
Rapids, Davenport and Des Moines, Iowa.
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.
=============
U R U G U A Y
=============
WORLDSPAN LP: Signs New Five-Year Contract with CTS Viaggi
----------------------------------------------------------
Worldspan, L.P. and travel management company CTS Viaggi have
signed a new long-term agreement. The agreement, which extends
their relationship through 2011, enables CTS's Italy retail and
Web-based operations to continue to rely on Worldspan's global
travel distribution services and industry-leading travel e-
commerce solutions in the years to come.
More than 200 CTS retail locations in Italy utilize the
Worldspan global distribution system for travel planning and
management. In addition, Worldspan provides CTS's advanced Web
site serving Italian travelers with global, state-of-the-art
airline distribution, reservations, transaction processing and
e-ticketing services.
"Worldspan has been a trusted GDS partner for CTS for over 15
years and the relationship and support from our Worldspan team
is very important to us," said Roberto Corbella, managing
director for CTS Viaggi. "Worldspan's innovative travel
technologies and reliable service and support play an integral
role across CTS operations. Continuing this partnership ensures
excellent, uninterrupted service for our travelers and a solid
future of growth and expansion for CTS."
"Worldspan and CTS have worked together to make CTS one of the
most advanced travel technology centers in Italy," said Angelo
Camilletti, Worldspan regional manager -- Italy, Greece, Israel
and Egypt. "Worldspan will continue to support their growth
with the most advanced, accurate and reliable solutions in the
travel industry."
About CTS Viaggi
Established in 1974, CTS Viaggi is one of the world's major
student travel associations and the largest full-service travel
management organization in Italy. Its comprehensive range of
travel services includes global flights, hotels, car rentals,
tour operator packages, charter flights, ferry and rail service,
and travel insurance.
About Worldspan
Headquartered in Atlanta, Georgia, Worldspan, L.P. --
http://www.worldspan.com/-- is a leader in travel technology
services for travel suppliers, travel agencies, e-commerce sites
and corporations worldwide. Utilizing some of the fastest, most
flexible and efficient networks and computing technologies,
Worldspan provides comprehensive electronic data services
linking approximately 800 travel suppliers around the world to a
global customer base. Worldspan offers industry-leading Fares
and Pricing technology such as Worldspan e-Pricing(R), hosting
solutions, and customized travel products. Worldspan enables
travel suppliers, distributors and corporations to reduce costs
and increase productivity with technology like Worldspan
Go!(R) and Worldspan Trip Manager(R) XE. The company's Latin
American operations are in Argentina, The Bahamas, Brazil,
Jamaica, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 28, 2007, Standard & Poor's Ratings Services affirmed its
ratings, including the 'B' corporate credit rating, on Worldspan
L.P., following the downgrade of its intended merger partner,
Travelport LLC, to 'B' from 'B+'. S&P said the outlook is
stable.
* URUGUAY: Proposes to Pay Oil Bill to Venezuela with Bonds
-----------------------------------------------------------
Uruguayan state-run oil company Ancap Chief Executive Officer
Daniel Martinez told El Universal that the firm proposes to pay
25% of its Venezuelan oil bill with state bonds to avoid
long-term indebtedness.
El Universal reports that Venezuelan state oil company Petroleos
de Venezuela SA is willing to accept Uruguayan Treasury bonds as
part of the payment for the oil it ships to Uruguay.
According to an Efe report, Mr. Martinez said after a meeting
with Petroleos de Venezuela counterpart Rafael Ramirez that the
Venezuelan holding thought that the payment through Uruguayan
bonds was a good idea.
Uruguay expects Venezuelan officials to reply to respond to the
proposal "over the next few hours," El Universal states, citing
Mr. Ramirez.
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.
* * *
On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.
=================
V E N E Z U E L A
=================
ARVINMERITOR: T. Kindem to Head CVA's N. America Sales Division
---------------------------------------------------------------
ArvinMeritor Inc. has appointed Todd Kindem as director of
Commercial Vehicle Aftermarket's Sales and Marketing-North
America.
Mr. Kindem is responsible for leading ArvinMeritor's Aftermarket
North American sales and marketing teams including the strategic
sales growth. His responsibilities will include the business'
increased efforts in supplying a larger portfolio of
remanufactured components.
"Todd's extensive background and track record in the
aftermarket, combined with his market and customer knowledge,
will be a real plus for our growing business here in North
America," said Joe Mejaly, vice president and general manager of
CVA.
Prior to joining ArvinMeritor, Mr. Kindem was most recently the
director Global Sales, Heavy Vehicle with Dana Corp.'s Heavy
Vehicle Technologies and Systems Service business unit. He has
held a variety of management positions at Eaton Corp. and Dana
Corp., with increasing levels of responsibility for the
companies' aftermarket businesses. Mr. Kindem also worked in
management roles for Horton Industries and Phillips Temro
Division of The Budd Co.
Mr. Kindem will be located in CVA's Florence, Ky., Parts
Distribution Center and executive offices.
ArvinMeritor's Commercial Vehicle Aftermarket group offers
replacement parts for the company's braking systems, drive
axles, trailer axles and suspension products in North America
and in Europe. Distributed under the Meritor and Euclid brands,
ArvinMeritor's aftermarket parts are precision engineered to
original equipment specifications and carry the industry's best
aftermarket warranty.
About ArvinMeritor Inc.
Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier US$8.8
billion global supplier of a broad range of integrated systems,
modules and components to the motor vehicle industry. The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets. ArvinMeritor employs approximately 29,000 people
at more than 120 manufacturing facilities in 25 countries.
These countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others. ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.
* * *
As reported in the Troubled Company Reporter on Feb. 12,
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc. The trend is Stable.
As reported on on Feb. 6, Moody's Investors Service has
downgraded ArvinMeritor's Corporate Family Rating to Ba3 from
Ba2. Ratings on the company's secured bank obligations and
unsecured notes were lowered one notch as a result.
Ratings lowered:
ArvinMeritor Inc.
-- Corporate Family Rating to Ba3 from Ba2
-- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3,
LGD-2, 18%
-- Senior Unsecured notes to B1, LGD-4, 65% from Ba3,
LGD-4, 64%
-- Probability of Default to Ba3 from Ba2
-- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3,
LGD-4, 64%
Arvin Capital I
-- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96%
Arvin International PLC
-- Unsecured notes guaranteed by ArvinMeritor Inc. to B1,
LGD-4, 65% from Ba3, LGD-4, 64%
Ratings affirmed:
ArvinMeritor Inc.
-- Speculative Grade Liquidity rating, SGL-2
DAIMLERCHRYSLER: 2nd-Round Bids Expected for Chrysler, WSJ Says
---------------------------------------------------------------
As moves for possible sale of DaimlerChrysler AG's Chrysler
Group get clearer, bidders interested in the automaker's U.S.
unit are expected to submit a second round of offers within the
next week or so, Gina Chon of The Wall Street Journal reports,
citing people familiar with the matter.
Afterwards, WSJ relates, DaimlerChrysler will likely narrow it
down to two bidders and then eventually choose one leading
candidate in early May.
Last week, WSJ said DaimlerChrysler executive Ruediger Grube, a
management-board member and head of strategy, was negotiating
with all Chrysler bidders, with the exception of billionaire
Kirk Kerkorian's Tracinda Corp.
According to that report, the company had scheduled meetings
with Cerberus Capital Management LP; joint bidders Blackstone
Group and Centerbridge Capital Partners LP; and the tandem of
Magna International Inc. and Onex Corp., but left Tracinda Corp.
in the lurch.
The TCR-Europe reported on April 11 that DaimlerChrysler had
received a new offer of up to US$4.5 billion in cash from
Tracinda Corp., an investment firm owned by billionaire Kirk
Kerkorian.
However, the automaker is skeptical about the competitiveness of
Tracinda's bid, considering that it entails substantial
conditions, as it entertains offers from three other groups, WSJ
observed.
Mr. Kerkorian's tender depends on whether Chrysler enters into a
"satisfactory" labor contract with the UAW and if Daimler agrees
to share part of the troubled unit's unfunded pension
liabilities and retiree heath-care costs amounting to US$15
billion.
On the other hand, Magna International Inc. and its potential
partner, Canadian investment firm Onex Corp., plan to each
acquire equal minority stakes in Chrysler and let
DaimlerChrysler keep a small equity in the ailing unit, WSJ
relates, quoting sources familiar with the matter.
Magna also intends to create a separate company for Chrysler and
outsource engineering while keeping the products' design and
assembly in-house, WSJ added.
Concurrently, WSJ reported German bank WestLB AG has acquired a
14% stake in DaimlerChrysler, saying that the move is meant to
help shareholders sell their shares, avoiding a broader selloff,
with plans to reduce its share back to its original 3% level.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX)
(FRA:DCX) -- http://www.daimlerchrysler.com/-- develops,
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
DAIMLERCHRYSLER AG: Chrysler's Revenues Plummet Amid Sale Talks
---------------------------------------------------------------
DaimlerChrysler AG's Feb. 14 announcement that it is putting
Chrysler Group on the block has triggered a decline in the
ailing unit's sales, Steven Landry, Chrysler's vice president
for sales and field operations, told The Associated Press in an
interview.
According to the report, Chrysler's revenues dropped 8.3 percent
in February 2007, compared with its February 2006 numbers. The
unit reported a 1 percent rise in its January 2007 sales from
the same month last year. March sales showed a 4.6 percent dip
although Mr. Landry claims that the division exceeded internal
goals by 1 percent. Overall, Chrysler's revenues for the first
quarter of 2007 were down 4 percent from the same period in
2006.
Concurrently, two Magna International Inc. directors said
reports that the auto parts maker has submitted a joint tender
with a partner for Chrysler are premature as Magna's board has
yet to receive a proposal from its management, The Star relates.
Magna had issued a statement that it is mulling over options
regarding a possible Chrysler purchase.
Meanwhile, Tracinda Corp.'s US$4.5-billion bid to acquire
Chrysler, which is significantly lower than its rivals, could
unravel unless it finds a way to negotiate with DaimlerChrysler
soon, The Financial Times states.
DaimlerChrysler has so far ignored Tracinda's offer not only
because of its considerably smaller offer, but also due to the
investment firm's demand for exclusive negotiations with the
automaker. Plus, billionaire Kirk Kerkorian, who controls
Tracinda, has had a long and adverse relationship with the
German company, made worse by his lawsuit alleging that Daimler
paid too little when it acquired Chrysler in 1998, FT observes.
The TCR-Europe reported on April 13 that DaimlerChrysler
executive Ruediger Grube, a management-board member and head of
strategy, is presently negotiating with all Chrysler bidders,
with the exception of billionaire Kirk Kerkorian's Tracinda
Corp.
The company had scheduled meetings with Cerberus Capital
Management LP; joint bidders Blackstone Group and Centerbridge
Capital Partners LP; and the tandem of Magna International Inc.
and Onex Corp., but left Tracinda Corp. in the lurch.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- http://www.daimlerchrysler.com/-- develops,
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
DAIMLERCHRYSLER: Boosts Michigan Economy with US$1.7B Investment
----------------------------------------------------------------
DaimlerChrysler AG's Chrysler Group will boost the Michigan
economy with an investment of US$1.78 billion, much of it to
start a multi-product "Powertrain Offensive." The initiative
will consist of the following:
* US$730 million for a new plant in Trenton, Mich., to
produce the "Phoenix" family of V-6 engines;
* US$700 million in Marysville, Mich., to build a new axle
plant;
* US$300 million in the Sterling Heights (Mich.) Assembly
Plant (SHAP) to expand its paint shop; and
* US$50 million for retooling of Warren Truck Assembly Plant
and Warren Stamping Plant for future product.
"This is an important day for the future of the Chrysler Group,
and in particular for the continued competitiveness of our
operations in the State of Michigan," said Chrysler Group
President and CEO Tom LaSorda. "We have a vision to grow our
business and transform the Chrysler Group into a stronger
company that will be competitive for the long run. The
investments we are announcing today prove that we are investing
in this vision."
Government officials and community leaders joined Chrysler Group
executives to celebrate the milestone.
The US$1.78 billion Michigan program investment includes product
development costs and is part of the "Recovery and
Transformation Plan" that Mr. LaSorda announced on February 14.
Under the "Recovery and Transformation Plan" umbrella is the
"Powertrain Offensive" -- US$3 billion of investment for
building and retooling existing plants that will produce more
fuel-efficient engines, transmissions and axles and provide
Chrysler Group with a more competitive powertrain portfolio.
The Trenton Phoenix Engine Plant and Marysville Axle Plant are
the first two components of several that make up the "Powertrain
Offensive."
"Michigan is the best place in the country for these investments
to occur and we're proud to have worked hard to make that case
to DaimlerChrysler," said Governor Jennifer M. Granholm. "When
I met with Dr. Zetsche during my recent investment mission to
Germany, I was emphatic that a strong DaimlerChrysler is
important to Michigan and we stand ready to help them thrive in
our state. DaimlerChrysler's vision for growth and strength
clearly includes Michigan and that's great news for all of us
for Michigan, Michigan workers and Michigan's economy."
Trenton Phoenix Engine Plant
----------------------------
The new Trenton Phoenix Engine Plant, located adjacent to the
Chrysler Group Trenton Engine Plant, is expected to begin
production in 2009.
The Trenton plant will have a competitive labor agreement that
incorporates Smart manufacturing initiatives and flexible CNC-
based machining, volume-bundled parts purchasing, volume-bundled
capital investment and standardized tooling.
Over the long term, the Phoenix family of V-6 engines will
reduce manufacturing complexity by paring the Company's four
current V-6 engine architectures to one.
Marysville Axle Plant
---------------------
The Marysville Axle Plant will be located in the city of
Marysville (St. Clair County). The US$700 million investment
will include engineering and development for the creation of a
new family of axles that provide better fuel economy. In
addition, the common axle will allow the Company to consolidate
the number of axles for better economies of scale.
Sterling Heights Paint Shop
---------------------------
The investment at Sterling Heights Assembly Plant will include
retooling that will improve the coatings process in all key
areas of the paint shop including pretreatment, paint mix room
and spray booths. In addition, the new technology will increase
flexibility and efficiency, which will contribute to improved
quality and reduce costs.
The new paint shop will have the capability to paint any vehicle
in the front-wheel-drive vehicle family, providing future
flexibility for the Corporation. The paint shop will be
completed in 2009.
Warren Truck Assembly Plant and Warren Stamping
-----------------------------------------------
Warren Truck Assembly Plant and Warren Stamping will receive
multiple plant upgrades to improve quality, productivity and
worker ergonomics. The retooling also will increase flexibility
and prepare it for its role in the Chrysler Group's 20 all-new
vehicle product offensive.
Chrysler Group will provide additional details of its
"Powertrain Offensive" at a later date. All of these
investments are subject to final approval and incentive
packages.
Michigan Investments
--------------------
Since 2003, the Company has invested $4 billion in its Southeast
Michigan manufacturing operations. These investments include:
Date Plant Facility Amount
---- -------------- ------
April 2007 Trenton (Mich.) Assembly Plant US$730 million
April 2007 Marysville, Mich. US$700 million
April 2007 Sterling Heights (Mich.) US$300 million
Assembly Plant
April 2007 Warren Assembly Plant US$50 million
and Warren Stamping
June 2006 Detroit Axle US$60 million
October 2005 Global Engine Manufacturing US$803 million
Assembly
May 2005 Trenton (Mich.) Assembly Plant US$300 million
March 2005 Sterling Heights (Mich.) US$506 million
Assembly/Sterling Heights Stamping Plant
August 2004 Jefferson North Assembly Plant US$241 million
2002 - 2004 Warren Truck US$315 million
DaimlerChrysler facilities in Southeast Michigan include the
Chelsea Proving Grounds, Conner Avenue Assembly Plant,
DaimlerChrysler Transport, Detroit Axle, Global Engine
Manufacturing Alliance, Jefferson North Assembly Plant, Mack
Engine Plants I and II, Mopar Parts World Headquarters, Mt.
Elliott Tool and Die, National Parts Distribution Centers (3),
Plymouth Road Office Complex, Quality Engineering Center,
Sterling Heights Assembly Plant, Sterling Heights Stamping
Plant, Sterling Heights Vehicle Test Center, Trenton Engine
Plant, Warren Stamping Plant, Warren Truck Assembly Plant and
the General Motors, DaimlerChrysler and BMW Hybrid Development
Center.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- http://www.daimlerchrysler.com/-- develops,
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
PETROLEOS DE VENEZUELA: Will Accept Uruguayan Bonds as Payment
--------------------------------------------------------------
Venezuelan state-owned oil company Petroleos de Venezuela SA is
willing to accept Uruguayan Treasury bonds as part of the
payment for the oil it ships to Uruguay, El Universal reports.
Uruguayan state oil company Ancap Chief Executive Officer Daniel
Martinez explained to El Universal that the firm proposed paying
25% of the Venezuelan oil bill with state bonds to avoid long-
term indebtedness.
According to an Efe report, Mr. Martinez said after a meeting
with Petroleos de Venezuela counterpart Rafael Ramirez that the
Venezuelan holding thought that the payment through Uruguayan
bonds was a good idea.
Uruguay expects Venezuelan officials to reply to respond to the
proposal "over the next few hours," El Universal states, citing
Mr. Ramirez.
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: Will Build Gasoducto del Sur Pipeline
-------------------------------------------------------------
Venezuelan state-run oil company Petroleos de Venezuela SA
President Rafael Ramirez said in a statement that the firm will
initially construct the Gasoducto del Sur pipeline from gas
fields in eastern Venezuela to Manaus, Brazil.
Mr. Ramirez, who was also Venezuela's energy and oil minister,
told Business News Americas, "After this [first stage], it will
be taken to Pernambuco."
BNamericas relates that Brazilian city Pernambuco is where
Petroleos de Venezuela and its Brazilian counterpart Petroleo
Brasileiro SA are constructing the Abreu de Lima plant.
Venezuelan President Hugo Chavez will visit the refinery's
construction site in June.
The pipeline would run up to 15,000 kilometers between
Argentina, Brazil, Bolivia and Venezuela for roughly US$20
billion, BNamericas states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
***********
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