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/raid1/www/Hosts/bankrupt/TCRLA_Public/070430.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, April 30, 2007, Vol. 8, Issue 84 Headlines A R G E N T I N A BANCO HIPOTECARIO: Eyes 60% Boost in Loans This Year GETTY IMAGES: Completes Buy of WireImage & Two Sub-Brands HF TRADING: Claims Verification Deadline Moved to June 25 INVERSORA ELECTRICA: Creditors to Vote on Settlement Plan Today LEAR CORP: Earns US$49.9 Million in First Quarter Ended March 31 PRODUCIR SRL: Trustee Verifies Proofs of Claim Until May 24 SERVICIOS DON FROILAN: Claims Verification Deadline Is May 14 SITELCO SA: Proofs of Claim Verification Ends on June 25 TELECOM ARGENTINA: Argentine Research Ups Rating to "Accumulate" B A H A M A S JETBLUE AIRWAYS: Credit Suisse Keeps "Outperform" Rating on Firm B A R B A D O S HILTON HOTELS: Closes Scandic Chain Sale to EQT for US$1.1 Bil. HILTON HOTELS: Morgan Stanley Fund Buys 10 Hotels for US$770 Mln HILTON HOTELS: S&P's BB+ Rating Unaffected by Sale of 10 Hotels B E R M U D A BLUE SHADOW: Sets Final General Meeting for June 4 FOSTER WHEELER: Units Gets Boiler Construction Contract from SRP B R A Z I L AMRO REAL: Earns BRL622 Million in First Quarter 2007 BANCO NACIONAL: Inks BRL7-Million Deal with Quanta Centro BANCO NACIONAL: Board Grants BRL2-Million Financing to Conectt BRASKEM SA: CADE Revokes Restrictions for Iparinga Acquisition COMPANHIA ENERGETICA: Sao Paulo Government Mulls Privatization COMPANHIA SIDERURGICA: Will Spend US$6B To Build Two Steel Mills PETROLEO BRASILEIRO: Inks Cooperation Deal with Enap PETROLEO BRASILEIRO: Inks Policies Promotion Deal with 2 Groups TELE NORTE: Reports BRL343 Mil. of Net Income for Second Quarter TELE NORTE: Fitch Affirms BB+ Foreign Currency Default Rating TELE NORTE: Fitch Affirms BB+ Foreign Currency Default Ratings TRW AUTOMOTIVE: Moody's Affirms Ba2 Corporate Family Rating * BRAZIL: Approves US$9-Billion Bullet Train Project 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 Ends on May 17 SF BUILDING: Proofs of Claim Filing Is Until May 17 S.F. TENNOUZU: Proofs of Claim Must be Filed by May 17 VITA CAPITAL: Sets Final Shareholders Meeting for May 16 C O L O M B I A * COLOMBIA: To Hand Over Six Regional Airports to Private Firms C O S T A R I C A US AIRWAYS: Reports US$66 Million First Quarter 2007 Net Profit D O M I N I C A N R E P U B L I C ASHMORE ENERGY: To Open Hong Kong Office on Asian Energy Boom OCHOA BANK: Regulator Takes Control Due to Liquidity Problems E L S A L V A D O R SPECTRUM BRANDS: Fitch Affirms CCC Issuer Default Rating G U A T E M A L A AFFILIATED COMPUTER: Acquires Albion Assets for US$25.5 Million IMAX CORP: Opens Second IMAX MPX(R) Theatre for Star Cinema J A M A I C A DELTA AIR: Launches Jamaica Vacation Package Promotion * JAMAICA: Will Sell Assets to Raise Funds This Year M E X I C O BALLY TOTAL: NYSE Issues Delisting Notification BALLY TOTAL: US Court Orders US$24,000 Payment to Singh Dhaliwal BALLY TOTAL: Negotiates Form of Waiver & Forbearance Pacts CLEAR CHANNEL: Earns US$102.2 Million in Quarter Ended March 31 FORD MOTOR: Reports Preliminary Results for First Quarter 2007 GLOBAL POWER: Court Extends Exclusive Filing Period to May 2 GLOBAL POWER: Consulting Pacts w/ Former Execs Extended to May 2 GLOBAL POWER: Court Approves PricewaterhouseCoopers as Auditors GRUPO FINANCIERO: Net Income Rises to MXN1.62B in First Quarter HIPOTECARIA CREDITO: Sells MXN900MM Mortgage-Backed Securities JOAN FABRICS: Wants Court OK on Mintz Levin as Bankruptcy Atty. JOAN FABRICS: Taps Pachulski Stang as Delaware Counsel JOAN FABRICS: Court Okays Bankruptcy Services as Claims Agent MEGA BRANDS: Hires Andree Pinard as Treasury & Investor Director METROFINANCIERA SA: S&P Affirms BB- Counterparty Credit Rating TV AZTECA: Reports MXN179 Million Net Income in 2007 First Qtr. WENDY'S INTERNATIONAL: Mulls Firm's Sale Due to Drop in Profits WENDY'S INTERNATIONAL: Moody's Reviews Ratings for Likely Cut WENDY'S INTERNATIONAL: S&P Will Likely Cut Ratings After Review P A N A M A CHIQUITA BRANDS: Loss Prompts Firm Not To Issue Bonuses in 2006 P E R U * PERU: Block 129 Exploration & Dev. Pact with Burlington Okayed P U E R T O R I C O ALLIED WASTE: Unit Closes US$56.8-Million Offering of Bonds COVENTRY HEALTH: Signs Definitive Buy Deal with Mutual of Omaha DELTA AIR: S&P Keeps D Rating Until After Chapter 11 Emergence V E N E Z U E L A PETROLEOS DE VENEZUELA: 5.25% Bond Yields Soar PETROLEOS DE VENEZUELA: To Launch Delta Caribe Offshore Auction * VENEZUELA: Ministry to Provide Tools to Generation Plants * VENEZUELA: Inks Deal with Int'l Oil Firms Over Orinoco Stakes * BOOK REVIEW: Treatise on the Right of Property in Tide Waters - - - - - ================= A R G E N T I N A ================= BANCO HIPOTECARIO: Eyes 60% Boost in Loans This Year ---------------------------------------------------- Banco Hipotecario President Clarisa Lifsic told Business News Americas that the bank wants to increase housing loans 50% and other loans by 60% in 2007. BNamericas relates that Banco Hipotecario increased loans to the private sector 47.7% to ARS2.94 billion in 2006, compared to 2005, 58% of which were mortgage loans. According to BNamericas, the Argentine central bank passed new regulations in 2006 to lower monthly dividend payments for potential house or apartment buyers, to boost a slow mortgage loan market. However, the move was met with lukewarm interest due to high real estate prices as well as the lack of long-term funding available for banks. Ms. Lifsic told BNamericas at the sidelines of the World Economic Forum on Latin America in Santiago, "But as wages increase significantly and the square meter price remains stable, we expect to see mortgage lending grow among the lower and middle-income segments in the future." BNamericas notes that Banco Hipotecario has been growing its non-mortgage loan portfolio, especially among credit cards and consumer loans, over the last few years. Consumer loans increased 148% to ARS348 million in 2006, compared to 2005. Banco Hipotecario will maintain an aggressive commercial strategy to boost its presence among retail clients, BNamericas says, citing Ms. Lifsic. Ms. Lifsic told BNamericas, "We are opening plenty of branches as well as contact points, which include commercial offices and stands, among others." Banco Hipotecario expects to increase its contact point network to 120 by the end of 2007. It is also analyzing issuance of perpetual bonds as well as going to capital markets, and securitizing mortgages for funding in 2007. Regarding the rumor about Banco Hipotecario purchasing Banco Galicia, Ms. Lifsic told BNamericas, "We are probably among the first in the list of possible buyers in Argentina and if someone wanted to sell, they would probably come knocking on our door." Headquartered in Buenos Aires, Argentina, Banco Hipotecario SA -- http://www.hipotecario.com.ar-- is an Argentinean commercial bank and specialty mortgage provider. Banco Hipotecario' business lines include credit lines for consumers, short-term financing for exporting companies, factoring services, deposit accounts, purchase and sale of foreign currency, custodial services, safe deposit box rentals, payroll bank accounts, securities brokerage services and sales of insurance through authorized agents and companies. The bank launched this new series of products and services as an alternative to its mortgage loans business, which as a result of the economic crisis, came to a temporary halt in 2002. In late 2003, and in the light of the favorable trends shown by economic variables, Banco Hipotecario started to offer new housing mortgage loans. The bank's subsidiaries consist of BHN Sociedad de Inversion Sociedad Anonima. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 22, 2007, Moody's Investors Service placed these ratings on Banco Hipotecario SA: -- long-term foreign currency deposit rating of Caa1, outlook to positive from stable; and -- long-term national scale foreign currency deposit rating of Ba1.ar, outlook to positive from stable. GETTY IMAGES: Completes Buy of WireImage & Two Sub-Brands --------------------------------------------------------- Getty Images, Inc., has completed the acquisition of WireImage. The deal, which was announced Feb. 22, 2007, also includes MediaVast, Inc. -- the owner of WireImage, and sub-brands FilmMagic and Contour Photos. "Celebrity, entertainment and sports photography is a fast- growing and vital part of the imagery industry, and this acquisition positions us to meet and exceed the demand for nearly instantaneous content," said Jonathan Klein, co-founder and CEO of Getty Images. "Growing our entertainment imagery business has been a key strategic focus, resulting in revenue growth of approximately 60 percent in each of the last three quarters of 2006. We see further growth opportunity as a result of this acquisition. The real winners will be our customers who can now expect to see exciting new developments with products and services including podcasts, editorial video, multimedia, mobile and exclusive imagery." Getty Images intends to maintain MediaVast's three brands and its market Web sites. With the combined resources of Getty Images and WireImage, Getty Images will continue to generate new imagery for their respective celebrity and entertainment collections and make it available for online distribution globally. The acquisition was driven by the rapidly evolving celebrity imagery business. A recent article in Variety pointed out that the category is increasingly being led by online publications that publish articles at breakneck speed and therefore demand images immediately. Getty Images is shortening the time between image capture and the worldwide distribution of the image through its industry- leading Web site, which features search in local languages and purchase in local currencies, and leads the industry in delivery speed, service and international distribution. The acquisition of WireImage and MediaVast gives the company more coverage capabilities for events and portraiture, and expands the entertainment and celebrity imagery segment. The acquisition of WireImage will also enable Getty Images to accelerate the growth of its video distribution business. The company increased its portfolio of video and film footage in 2006 and has been preparing a build out of its back end delivery systems. WireImage established a foothold in the video business and Getty Images will continue to grow the category by adding editorial footage to the mix. Headquartered in Seattle, Washington, Getty Images, Inc. is a leading creator and distributor of high quality imagery and related services to creative professionals at advertising agencies, graphic design firms, corporations, and film and broadcasting companies; editorial customers involved in newspaper, magazine, book, CD-ROM and online publishing; and corporate marketing departments and other business customers. Revenues are principally derived from licensing rights to use images that are delivered digitally over the Internet. Revenues for the year ended Dec. 31, 2006 are expected to be about US$807 million. The company has corporate offices in Australia, the United Kingdom and Argentina. * * * As reported in the Troubled Company Reporter-Latin America on March 30, 2007, Moody's Investors Service affirmed the Ba1 Corporate Family Rating and Ba2 rating on the US$265-million of convertible subordinated debentures of Getty Images, Inc. The rating outlook remains stable. Moody's affirmed these ratings: -- US$265-million series B convertible subordinated notes due 2023, Ba2 (LGD 5, 77% from LGD 5, 71%); -- Corporate family rating, Ba1; and -- Probability of default rating, Ba1. HF TRADING: Claims Verification Deadline Moved to June 25 --------------------------------------------------------- Diana Collado, the court-appointed trustee for H.F. Trading S.R.L.'s bankruptcy proceeding, will verify proofs of claim from the company's creditors until June 25, 2007. Proofs of claim verification was initially set for March 29, 2007. Ms. Collado will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Mendoza 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 H.F. Trading 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 H.F. Trading's accounting and banking records will be submitted in court. Infobae did not state the reports submission deadlines. Ms. Collado is also in charge of administering H.F. Trading's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Diana Collado Rioja 437 Ciudad de Mendoza, Mendoza Argentina INVERSORA ELECTRICA: Creditors to Vote on Settlement Plan Today --------------------------------------------------------------- Inversora Electrica de Buenos Aires S.A., a company under reorganization, will present a settlement plan to its creditors on April 30, 2007. National Court of Original Jurisdiction in Commercial Matters No. 3 in Buenos Aires, with the assistance of Clerk's Office No. 5, has determined the verified claims' admissibility, taking into account the trustee's opinion and the objections and challenges raised by Inversora Electrica and its creditors. The trustee also presented a general report containing an audit of Inversora Electrica's accounting and banking records in court. LEAR CORP: Earns US$49.9 Million in First Quarter Ended March 31 ---------------------------------------------------------------- Lear Corporation reported financial results for the first quarter of 2007 with a net income of US$49.9 million including restructuring costs and other special items. This compares with net income of US$17.9 million including restructuring costs and other special items, for the first quarter of 2006. It also updated its 2007 financial outlook. For the first quarter of 2007, the company reported net sales of US$4.4 billion and pretax income of US$82.3 million, including restructuring costs of US$15.8 million and other special items totaling US$10.7 million. For the first quarter of 2006, Lear reported net sales of US$4.7 billion and pretax income of US$14.8 million. Excluding restructuring costs and other special items, Lear would have had pretax income of US$108.8 million in the first quarter of 2007. This compares with pretax income before restructuring costs and other special items of US$15.5 million in the same period a year earlier. A reconciliation of pretax income before restructuring costs and other special items to pretax income as determined by generally accepted accounting principles is provided in the supplemental data pages. Bob Rossiter, Lear chairman and chief executive officer, said, "Now that we have completed the divestiture of the Interior business, our full attention is on strengthening our core seating, electronics and electrical distribution businesses." The decline in net sales for the quarter reflects primarily lower production in North America and the divestiture of Lear's European Interior business, offset in part by new business mainly outside of North America and favorable foreign exchange. Operating improvement reflects favorable cost performance and the benefit of new business, offset in part by lower production in North America. First-quarter free cash flow was negative US$32.1 million, as compared with negative US$91.3 million in the first quarter of 2006. The improvement primarily reflects lower capital spending and the increase in earnings. As of March 31, 2007, the company listed total assets of US$7.6 billion and total liabilities of US$6.9 billion, resulting in a US$692.5 million in total stockholders' equity. Key Events in 2006 During the quarter, the company made important progress on strategic priorities by completing the North American Interior business joint venture. In addition, Lear maintained its quality and customer service momentum and was the recipient of several customer awards and recognition, including GM Supplier of the Year, three World Excellence awards from Ford and Superior Supplier Diversity and Excellence in Quality from Toyota, as well as other performance awards from Porsche, Fiat-Brazil, Mazda and Shanghai GM. The company also continued to implement its global restructuring plan, expand its infrastructure in Asia and grow its global sales with Asian manufacturers. Full-Year 2007 Outlook The outlook excludes results for Lear's Interior business for the full year. On this basis, Lear expects 2007 net sales of about US$14.8 billion. Lear anticipates 2007 income before interest, other expense, income taxes, restructuring costs and other special items to be in the range of US$580 to US$620 million, an improvement of US$20 million from our prior forecast. The revised full-year outlook reflects more favorable production volumes and improved cost performance in international operations. Restructuring costs in 2007 are estimated to be approximately US$100 million. Interest expense is estimated to be in the range of US$210 million to US$220 million. Pretax income before restructuring costs and other special items is estimated to be in the range of US$290 to US$330 million. Tax expense is expected to be between US$100 million and US$120 million, depending on the mix of earnings by country. Capital spending in 2007 is estimated at about US$250 million. Depreciation and amortization expense is estimated to be about US$310 million. Free cash flow is expected to be positive at about US$240 million for the year. Key assumptions underlying Lear's financial outlook include expectations for industry vehicle production of about 15.2 million units in North America and 19.3 million units in Europe. Lear continues to see production for the Big Three in North America being down slightly, as compared with 2006. In addition, the company is assuming an exchange rate of US$1.32 per Euro. About Lear Corporation Southfield, Mich.-based Lear Corp. (NYSE: LEA) -- http://www.lear.com/-- is a global supplier of automotive interior systems and components. Lear provides complete seat systems, electronic products, electrical distribution systems, and other interior products. Lear also operates in Argentina, Austria, Belgium, Brazil, Canada, China, Czech Republic, United Kingdom, France, Germany, Honduras, Hungary, India, Italy, Japan, Mexico, Morocco, Netherlands, Philippines, Poland, Portugal, Romania, Russia, Singapore, Slovakia, South Africa, South Korea, Spain, Sweden, Thailand, Tunisia, Turkey, and Venezuela. * * * As reported on Feb. 13, Standard & Poor's Ratings Services lowered its corporate credit rating on Southfield, Mich.-based Lear Corp. to 'B' from 'B+ and placed its ratings on CreditWatch with negative implications following Lear's announcement that it had agreed to be acquired by Carl Icahn-controlled American Real Estate Partners, L.P. As reported on Feb. 8, Moody's Investors Service placed the long-term ratings of Lear Corporation, corporate family rating at B2, under review for possible downgrade. The company's speculative grade liquidity rating of SGL-2 was affirmed. PRODUCIR SRL: Trustee Verifies Proofs of Claim Until May 24 ----------------------------------------------------------- Jorge Daniel Wainstein, the court-appointed trustee for Producir S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until May 24, 2007. The National Commercial Court of First Instance in Bell Ville, Cordoba, approved a petition for reorganization filed by Producir, according to a report from Argentine daily Infobae. Mr. Wainstein will present the validated claims in court as individual reports. The court will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Producir 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 Producir's accounting and banking records will be submitted in court. An informative assembly will be held for creditors to vote on a settlement plan that the company will propose. Infobae did not state the reports submission deadlines as well as the date of the informative assembly. The debtor can be reached at: Producir S.R.L. Lavalleja 145 Laborde, Cordoba Argentina The trustee can be reached at: Jorge Daniel Wainstein Cordoba 649 Bell Ville, Cordoba Argentina SERVICIOS DON FROILAN: Claims Verification Deadline Is May 14 ------------------------------------------------------------- Hernan Daniel Gonzalez, the court-appointed trustee for Servicios Don Froilan S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until May 14, 2007. The National Commercial Court of First Instance in Neuquen approved a petition for reorganization filed by Servicios Don Froilan, according to a report from Argentine daily Infobae. Mr. Gonzalez will present the validated claims in court as individual reports. The court will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Servicios Don Froilan 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 Servicios Don Froilan's accounting and banking records will be submitted in court. Infobae did not state the reports submission dates. The informative assembly will be held on Feb. 22, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The debtor can be reached at: Servicios Don Froilan S.R.L. Vicente Chrestia 1195 Ciudad de Neuquen Capital, Neuquen Argentina The trustee can be reached at: Hernan Daniel Gonzalez Jujuy 790 Ciudad de Neuquen, Neuquen Argentina SITELCO SA: Proofs of Claim Verification Ends on June 25 -------------------------------------------------------- Juan Flores, the court-appointed trustee for Sitelco SA's bankruptcy proceeding, verifies creditors' proofs of claim until June 25, 2007. Mr. Flores will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 33, 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 Sitelco 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 Sitelco's accounting and banking records will be submitted in court. La Nacion did not state the reports submission date. Mr. Flores is also in charge of administering Sitelco's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Sitelco SA Cabrera 4328 Buenos Aires, Argentina The trustee can be reached at: Juan Flores Araoz 1056 Buenos Aires, Argentina TELECOM ARGENTINA: Argentine Research Ups Rating to "Accumulate" ---------------------------------------------------------------- Consulting company Argentine Research said in a statement that it upgraded its recommendation to Telecom Argentina's share value to "accumulate." Business News Americas relates that Argentine Research raised its target share price for Telecom Argentina to ARS16 from ARS14.1 due to positive outlook. Argentine Research Director Rafael Ber commented to BNamericas, "We are seeing a positive outlook for the company in 2007, especially in the mobile telephony and broadband segments." Both sectors will increase revenues in 2007, BNamericas says, citing Mr. Ber, who is positive that Telecom Argentina will concentrate on increasing average revenue per user from existing customers through new services and products. Mr. Ber told BNamericas that in the fixed line segment, an accord between telecoms and the Argentine government to raise telephony rates is not expected at least in the coming months. Telecom Argentina disclosed in the last quarter of 2006 plans to invest ARS1 billion in increasing broadband infrastructure and services, BNamericas states. 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. ============= B A H A M A S ============= JETBLUE AIRWAYS: Credit Suisse Keeps "Outperform" Rating on Firm ---------------------------------------------------------------- Newratings.com reports that Credit Suisse analysts have sustained their "outperform" rating on JetBlue Airways Corporation's shares. According to Newratings.com, the analysts decreased the target price on JetBlue Airways' shares to US$17 from US$18. The analysts said in a research note published on April 25 that JetBlue Airways reported its first quarter 2007 earnings per share and actual operating margins ahead of the consensus and the estimates. The earnings per share estimate for fiscal year 2008 was decreased to US$0.85 from US$0.90. Based in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services primarily in the United States. As of Feb. 14, 2006, the Company operated approximately 369 daily flights serving 34 destinations in 15 states, Puerto Rico, the Dominican Republic, and the Bahamas. The Company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV, LLC. * * * As reported in the Troubled Company Reporter on Nov. 23, 2006, Moody's Investors Service assigned ratings of Caa1 (LGD5, 88%) to the approximately US$40 million of Special Facility Revenue Bonds, Series 2006 (JetBlue Airways Corporation Project or the JFK Facility Bonds) to be issued by the New York City Industrial Development Agency. Moody's affirmed the B2 corporate family rating for JetBlue Airways Corp. Moody's said the outlook remains negative. Standard & Poor's Ratings Services assigned its 'B' rating to US$40 million of New York City Industrial Development Agency special facility revenue bonds, series 2006 maturing on May 15, 2021, and May 15, 2030; the amount for each maturity have yet to be determined. The bonds, which will be used to finance a hangar and other facilities, will be serviced by payments made by JetBlue Airways Corp. (B/Stable/B-3) under a lease between the airline and the agency. =============== B A R B A D O S =============== HILTON HOTELS: Closes Scandic Chain Sale to EQT for US$1.1 Bil. --------------------------------------------------------------- Hilton Hotels Corporation completed the sale of the 132-hotel Scandic chain to EQT for EUR833 million or approximately US$1.1 billion. Net proceeds after transaction costs and taxes are expected to be approximately US$1.04 billion and will be used to pay down debt. As announced on March 2, 2007, this transaction is expected to reduce the company's 2007 recurring EPS by US$.10 per share. About EQT EQT private equity group with operations in Northern Europe and Greater China. EQT manages funds with activities in buy-outs as well as mezzanine finance. EQT currently manages approximately EUR10.5 billion in 10 funds. In total, EQT funds have invested approximately EUR5 billion in about 50 companies. About Hiton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Barbados, Costa Rica and Trinidad and Tobago in Latin America. Hilton Hotels also operates in the United Kingdom, Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland, Italy, The Netherlands, Sweden, Indonesia, Australia, Austria, India, Philippines, Vietnam. * * * As reported in the Troubled Company Reporter on March 9, 2007, Standard & Poor's Ratings Services raised its ratings on the US$25 million class A and B trust certificates issued by Public STEERS Series 1998 HLT-1 Trust to 'BB+' from 'BB' and removed them from CreditWatch, where they were placed with positive implications Feb. 5, 2007. Moody's Investors Service upgraded Hilton Hotels' corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. Moody's capitalizes total rent at 8x and adds a debt equivalent of approximately 20% of Hilton's guaranty exposure to debt. Moody's said the rating outlook is stable. As reported in the Troubled Company Reporter on Feb. 2, 2007, Fitch Ratings upgraded Hilton Hotels Issuer Default Rating to 'BB+' from 'BB'; Senior credit facility to 'BB+' from 'BB'; and Senior notes to 'BB+' from 'BB'. The ratings apply to its US$5.75 billion credit facility and roughly US$2.6 billion of its senior notes. Fitch has also revised Hilton's Rating Outlook to Positive from Stable. HILTON HOTELS: Morgan Stanley Fund Buys 10 Hotels for US$770 Mln ---------------------------------------------------------------- Hilton Hotels Corporation has agreed to sell up to 10 hotels (approx. 3,330 rooms) to a fund managed by Morgan Stanley Real Estate for approximately EUR566 million (or approximately US$770 million). Assuming completion of the sale of all 10 hotels, net proceeds after property level debt repayment (approx. EUR41 million), taxes and transaction costs are expected to be approximately EUR450 million. Proceeds from the sale will be used to pay down debt. Based on trailing 12-month earnings from the 10 hotels before interest, taxes, depreciation and amortization (EBITDA), the sale price represents an EBITDA multiple of approximately 15.2x. Hilton Hotels and Morgan Stanley have agreed to long-term management contracts on five of the 10 hotels, including the Hiltons in Dusseldorf, Dresden, Paris Charles de Gaulle, Strasbourg and Zurich. Morgan Stanley has agreed to make an extensive and immediate investment of approximately EUR18 million in these five hotels. Of the remaining hotels, long term management agreements are expected to be established on the Hilton hotels in Brussels, Barcelona and Luxembourg subject to Hilton Hotels and Morgan Stanley agreeing to capital plans. For the remaining two hotels, the Los Zocos Club Resort (an unbranded all-inclusive resort in the Canary Islands) is being sold without an ongoing contract, and Morgan Stanley and Hilton Hotels will evaluate the future intent for the Hilton Weimar in Germany where Hilton Hotels branding will remain in place for a short term period pending such evaluation. The sale of seven of the hotels is subject to a number of conditions including clearance from the European Union regulators, but is expected to be completed by the end of June 2007. The sales of the remaining three hotels (Paris Charles de Gaulle, Barcelona and Zurich) are also subject to certain conditions and require further legal and statutory discussions and approvals. Sale of these three hotels is anticipated to be taking place in the third quarter, 2007. On completion of these transactions, Hilton Hotels will have sold over US$3 billion of assets that it obtained in the acquisition of Hilton International in late February 2006, and over US$4.5 billion of assets will have been sold since the company began its disposition program in 2005. Robert M. La Forgia, Executive Vice President and Chief Financial Officer of Hilton Hotels Corporation, commented on the proposed sale: "This transaction is a significant step for Hilton as we continue to focus on our strategy of growing our managed and franchise business, while reducing asset ownership and strengthening our balance sheet. "Morgan Stanley Real Estate is a highly respected real estate investor and an important business partner and currently owns or has an interest in 13 Hilton family hotels. This transaction builds significantly on this relationship and provides a platform for continued growth of our brands as we look expand our reach globally." About Morgan Stanley Real Estate Morgan Stanley Real Estate -- http://www.morganstanley.com/realestate/-- is comprised of three major global businesses: Investing, Banking and Lending. Since 1991, Morgan Stanley has acquired US$113.5 billion of real estate assets worldwide and currently manages US$72.8 billion in real estate assets on behalf of its clients. In addition, Morgan Stanley Real Estate provides a complete range of market- leading investment banking services to its clients, including advice on strategy, mergers, acquisitions and restructurings, as well as underwriting public and private debt and equity financings. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Barbados, Costa Rica and Trinidad and Tobago in Latin America. Hilton Hotels also operates in the United Kingdom, Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland, Italy, The Netherlands, Sweden, Indonesia, Australia, Austria, India, Philippines, Vietnam. * * * As reported in the Troubled Company Reporter on March 9, 2007, Standard & Poor's Ratings Services raised its ratings on the US$25 million class A and B trust certificates issued by Public STEERS Series 1998 HLT-1 Trust to 'BB+' from 'BB' and removed them from CreditWatch, where they were placed with positive implications Feb. 5, 2007. Moody's Investors Service upgraded Hilton Hotels' corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. Moody's capitalizes total rent at 8x and adds a debt equivalent of approximately 20% of Hilton's guaranty exposure to debt. Moody's said the rating outlook is stable. As reported in the Troubled Company Reporter on Feb. 2, 2007, Fitch Ratings upgraded Hilton Hotels Issuer Default Rating to 'BB+' from 'BB'; Senior credit facility to 'BB+' from 'BB'; and Senior notes to 'BB+' from 'BB'. The ratings apply to its US$5.75 billion credit facility and roughly US$2.6 billion of its senior notes. Fitch has also revised Hilton's Rating Outlook to Positive from Stable. HILTON HOTELS: S&P's BB+ Rating Unaffected by Sale of 10 Hotels --------------------------------------------------------------- Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle. Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Barbados, Costa Rica and Trinidad and Tobago in Latin America. Hilton Hotels also operates in the United Kingdom, Germany, Belgium, Estonia, Lithuania, Norway, Denmark, Finland, Italy, The Netherlands, Sweden, Indonesia, Australia, Austria, India, Philippines, Vietnam. ============= B E R M U D A ============= BLUE SHADOW: Sets Final General Meeting for June 4 -------------------------------------------------- Blue Shadow Investment Limited's final general meeting is scheduled at 10:00 a.m. on June 4, 2007, at: Thistle House 4 Burnaby Street, Hamilton Bermuda These matters will be discussed in the meeting: -- receiving an account showing the manner in which the winding of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator, -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing a resolution for the dissolution of the company. FOSTER WHEELER: Units Gets Boiler Construction Contract from SRP ---------------------------------------------------------------- Foster Wheeler Ltd. reported that a subsidiary within its Global Power Group has been awarded a contract for construction management services and reimbursable craft labor to erect a 400 megawatt pulverized-coal steam generator at the Springerville Generating Station in Arizona by Salt River Project Agricultural Improvement and Power District (SRP). Foster Wheeler was previously awarded a contract in 2006 to supply the PC boiler to SRP for this project. The contract, valued at approximately US$75 million, will be included in the Company's second-quarter 2007 bookings. Foster Wheeler will erect the PC boiler components, associated piping, auxiliary equipment and selective catalytic reduction systems. Erection of the boiler is expected to begin in April 2007, with commercial operation scheduled for late 2009. "This award represents a win for Foster Wheeler and reflects SRP's confidence in Foster Wheeler not only as a supplier of state-of-the-art boilers, but also as an experienced boiler constructor," said Gary Nedelka, president and chief executive officer of Foster Wheeler North America Corp. "This is another example of Foster Wheeler's commitment to supply complete, cost- effective solutions to support our clients in the power industry." "We saw a lot of value in having Foster Wheeler supply and erect our new boiler for unit #4 and are convinced that Foster Wheeler is the right company to have on our team," said Bill Rihs, manager, Major Projects, SRP. Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter on Dec. 18, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the company. The company had about US$217 million of total debt at Sept. 29, 2006. =========== B R A Z I L =========== AMRO REAL: Earns BRL622 Million in First Quarter 2007 ----------------------------------------------------- ABN Amro Real's net profits increased 82% to BRL622 million in the first quarter 2007, compared to the first quarter 2006, Business News Americas reports. Amro Real told BNamericas that its recurring profits grew 56% to BRL654 million in the first quarter 2007, compared to the same period in 2006. Its earnings before taxes rose 58% to BRL994 million. According to BNamericas, Amro Real's recurring return on equity increased to 26.2% in the first quarter 2007, from 20.1% in the first quarter 2006. Its efficiency ratio improved to 46.5% from 49.6%. The company's revenues grew 18% to BRL3.613 billion. BNamericas notes that Amro Real's lending rose 23.8% to BRL51.3 billion in March 2007, from March 2006. Home loans increased 27.0% to BRL2.13 billion. Retail lending grew 23.9% to BRL23.3 billion as consumer finance unit Aymore increased operations 31.8% to BRL13.8 billion. Amro Real's commercial lending grew 23.4% to BRL25.9 billion. Loans to mid-size firms increased 67.9% to BRL10.6 billion. Loans to small companies rose 16.9% to BRL11.7 billion. Lending to large corporations, however, dropped 23.7% to BRL3.51 billion. Amro Real's total assets increased 60% to BRL131 billion in the first quarter 2007, from the same period in 2006. The company's net equity was BRL10.2 billion in the first quarter 2007, compared to BRL8.48 billion in the first quarter 2006, BNamericas states. ABN Amro Real specializes in commercial banking, capital markets, corporate banking, asset management, and trade finance. Its more than 22,000 employees assist over five million clients throughout five thousand different points of sales. In 1999, the bank merged with Brazil's Banco Real. The regional office for Latin America and the Caribbean is located in Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Sept 4, 2006, Moody's Investors Service upgraded Banco ABN AMRO Real S.A.'s long-term foreign currency deposits to Ba3, from B1. Moody's said the rating outlook is stable. BANCO NACIONAL: Inks BRL7-Million Deal with Quanta Centro --------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES and Quanta Centro de Producoes Cinematograficas de Sao Paulo signed April 24 PROCULT ambit, for BRL7 million. The signing of the first contract within the Support Program to the Audiovisual Productive Chain occurred in one of the four studios that are being finished in the cinematographic complex of Vila Leopoldina in Sao Paulo. The event counted on the participation of the secretary of the audiovisual sector of the Department of Culture, Orlando Senna; of the National Cinama Agency's [Ancine] president, Manoel Rangel; besides Leopoldo Nunes and Mario Diamante, also from Ancine. All sang praises to businesswoman Edna Fuji, Quanta's general manager, due to her determination in developing and rendering feasible the audiovisual sector. The advisor to the presidency for Cultural affairs and BNDES representative, Sergio Sa Leitao, lectured to an audience filled with invitees from the cinema segment and from the Paulistana (original from the city of Sao Paulo) cultural scene, how PROCULT was developed from experiences with financings to the production of books. "That presented us with a critical mass to understand that sectors such as cinema and audiovisual, in general, possess their own characteristics, therefore deserving of a credit line that would take into account the particularities of the business such as company difficulties in offering tangible guarantees". Leitao mentioned that PROCULT, developed in June and approved in July 2006, became operational in January this year and in as early as February dealt an operation with Quanta. He highlighted the efforts set forth by the Bank's president, Demian Fiocca, to separate a group that would fully devote time to the study of the Economy of Culture, purposing to create a department directed toward that activity. "We looked to compile date that would enable us to develop a concrete project. Another great challenge was to incentive companies from the sector to seek the Bank, for the majority of them did not have the experience to count on BNDES resources for the expansion of their business." Mr. Fiocca said that the program already counts on three operations waiting to be approved and 20 operations in its portfolio, "which, for the Bank standards, is a very significant number", he highlighted. One of the figures compiled by the Economy of Culture Department says that the sector provides for 5% of the total number of registered jobs in the country and is already responsible for 4% of the GDP. Then, the BNDES' chief of the Economy of Culture Department, Luciane Gorgulho, explained the financing line and all the work done by the Bank, both in the area of recovering the historical patrimony and in the area of recovering collections and in the support to cinema. Also, the department manager -- Luis Andre S D'Oliveira, discoursed about how the financings within the PROCULT ambit are allocated. The program will be in effect until Dec. 31, 2008, and encompasses the production, distribution and commercialization, exhibition and services infrastructure segments. The PROCULT disposes of BRL175 million to invest on the sector, with the ability to expand that amount according to the demand. The resources destined by BNDES to Quanta represent 43% of the project's total, which is of BRL16.2 million and will be destined to the construction of the most modern services complex of the audiovisual area, which is highly deficient in the country. The complex will be one of the few in the country capable of supplying, in a single locale, the majority of the audiovisual production stages, reducing costs. BNDES's support will strengthen a national company within a segment considered priority to BNDES, thus contributing for the sector's consolidation process and for the technical enhancement of the audiovisual productions in Brazil. The aggregate services will provide to the studio clients, greater ease in the production process, rendering it quicker, more dynamical and less costly. Besides the time reduction for the conclusion of the shootings, it will be possible to significantly reduce the time spent in transportation and freight of the team and equipments used in the shootings. Such gains will be turned into great differential points in regards to competing studios. 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. BANCO NACIONAL: Board Grants BRL2-Million Financing to Conectt -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES's board of directors has approved financing of BRL2 million for Conectt Marketing Interativo S/A. The resources will be used to invest on infrastructure, marketing and commercialization, training and quality, research and development, as well as on working capital, within the Prosoft-Empresa ambit, modality of the Program for the Development of the National Software and Related Services Industry, which purposes direct support to companies in the software and services sector. BNDES' resources are equal to 67% of the total of projected disbursements of BRL3 million. Not many companies in the country are positioned as specialists in Corporate Portals, market, which is beginning its consolidation cycle in Brazil. The operation supported by BNDES will contribute for the growth maintenance and for the increment in generating cash to the company. Conectt has already begun to invest, which amounts contemplate the hiring of specialized professionals and research, conjointly with PUC-RS to map out solutions for corporate portals used in the one thousand larges companies of Brazil. The market mapping is aiding the strategic decision-making process, as well as assisting the formation of technological partnerships and prospecting of new businesses. Prosoft was created in BNDES in 1997 and remodeled in 2004 due to the Federal Governments' Industrial, Technological and Foreign Trade Policy. From then on, it enabled investments, until December 2006, of BRL636 million on the national industry of software, corresponding to financial supports of BRL536 million in three modalities: Prosoft Company [BRL263 million, involving credits and shares of stock], Prosoft Commercialization [BRL21 million] and Prosoft Exports [BRL252 million]. About Conectt Conectt Marketing Interativo S/A is an Information Technology company focused on consultancy and development of corporate portals which searches to integrate the use of applications to a model that uses consultancy and services to align corporate portals to the corporate strategies adopted by its clients. Currently, it seeks to increase the market share in the large size companies segment, with investments upon training, quality and certifications, prioritizing the segments of electric energy, chemicals and petrochemicals, paper and cellulose, civil construction and the pharmaceutical industry. 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. BRASKEM SA: CADE Revokes Restrictions for Iparinga Acquisition -------------------------------------------------------------- Braskem S.A. disclosed that the plenary session of the Administrative Council for Economic Defense -- CADE -- revoked the writ of prevention for the acquisition of Ipiranga Petroquimica and Ipiranga Quimica businesses by Braskem. The decision was based on the Transaction Reversibility Preservation Agreement proposed by Braskem. Through this agreement all assets acquired before CADE's judgment are preserved and, on the other hand, Braskem may fully exercise the possession and management of those assets. In light of CADE's recent decisions, in which the international market is considered as the relevant market as far as petrochemical companies are concerned, the process is expected to be judged and approved shortly. Braskem understands that the transaction is pro-competitive and shall provide a new cycle of investment and growth in the petrochemical complex located in the southern region of Brazil. "The agreement preserves acquired assets, ensures to Braskem the full management of the business and indicates a fast decision aligned to the development and strengthening of the Brazilian petrochemical industry", said Marcelo Lyra, Braskem's Institutional Relations Vice President. Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. * * * As reported in the Troubled Company Reporter-Latin America on March 26, 2007, Fitch Ratings has affirmed its BB+ ratings on Braskem S.A. and Braskem International following the announcement by Braskem, Petrobras and the Ultra Group that they have reached an agreement to acquire the Ipiranga Group's petrochemical, refining and fuel distribution assets. Fitch also affirmed these ratings: Braskem S.A. -- Foreign currency issuer default rating at 'BB+'; -- Local currency issuer default rating at 'BB+';; -- Senior unsecured notes 2008, 2014 at 'BB+'; -- Senior unsecured Perpetual Bonds at 'BB+'; -- Senior unsecured notes 2017 at 'BB+'; -- National rating at 'AA (bra)'; -- Debentures 12th Issuance at 'AA (bra)'; and -- Debentures 13th Issuance at 'AA (bra)'. Braskem International -- Senior unsecured notes 2015 at 'BB+'. COMPANHIA ENERGETICA: Sao Paulo Government Mulls Privatization -------------------------------------------------------------- Brazilian business daily Valor Economico reports that the Sao Paulo state government is considering the privatization of Companhia Energetica de Sao Paulo. Dow Jones Newswires relates that Sao Paulo Governor Jose Serra called off moves to sell Companhia Energetica at the start of 2007. However, Valor Economico says that meetings are now being held for the privatization. Dow Jones notes that Governor Serra already signed a decree that will restart the state privatization program. According to Valor Economico, the Sao Paulo state has a stake worth BRL3.4 billion in Companhia Energetica, of which the finance secretary holds BRL2.5 billion. Valor Economico relates that UBS and Morgan Stanley officials have been studying Companhia Energetica's structure with a view to privatization. Companhia Energetica's sale could be made through an auction or through a public offering on the local stock market, Dow Jones states. Headquartered in Sao Paulo, Brazil, CESP -- Companhia Energetica de Sao Paulo is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2007, Moody's Investors Service assigned a Ba3 foreign currency rating to Companhia Energetica de Sao Paulo aka CESP's proposed unsubordinated unsecured Real-denominated IPCA linked notes due in 2015 in the amount of approximately US$250 million in Real-equivalent. The 2015 notes shall be issued under the US$975 million Medium Term Notes Program rated Ba3 by Moody's. Moody's notes that, although the notes will be denominated in Brazilian Real, all related payments shall be made in US- Dollars. Moody's said the ratings outlook is positive. COMPANHIA SIDERURGICA: Will Spend US$6B To Build Two Steel Mills ---------------------------------------------------------------- Companhia Siderurgica Nacional told Jeb Blount at Bloomberg News that it will spend US$6 billion on the construction of two steel mills in Brazil. The mills will make slabs for export and domestic clients, Bloomberg News' Mr. Blount relates, citing Companhia Siderurgica. Companhia Nacional said in a statement that it will build 4.5 million metric ton mills on the Atlantic Coast near Rio de Janeiro and in Minas Gerais. Companhia Siderurgica told Bloomberg News' Mr. Blount that it will start production at the Rio de Janeiro mill in September 2009 and in the Minas Gerais mill in August 2010. According to Companhia Siderurgica, it is spending US$112 million to start production of 500,000 tons a year of long steel like concrete re-enforcing rods at its Volta Redonda mill in Rio de Janeiro. Companhia Siderurgica's mining head Juarez Saliba explained to Mr. Blount of Bloomberg News, "Our goal is to use about half of the new steel for the export market and the other half for Brazil. The exports will be sent to mills in the U.S. and Europe for processing." According to Bloomberg News' Mr. Blount, Companhia Siderurgica said that the new mills will be supplied with iron-ore from its Casa de Pedra mine in Minas Gerais. The firm will boost the mine's production to 53 million metric tons yearly by July 2010. Companhia Siderurgica stated that it is also analyzing to further expand production to 60 million tons. Mr. Saliba told Bloomberg News' Mr. Blount that Companhia Siderurgica will decide within six months if it will construct a new steel mill in Kentucky to process four million tons of Brazilian-made slabs into rolled products. It may also purchase an existing mill and expand its rolling mill in Terre Haute, Indiana. Bloomberg News' Mr. Blount notes that Companhia Siderurgica plans to purchase Chinese steel-making equipment for the new mills and has given Baosteel Group Corp. six months to decide if it wants to buy a stake of as much as 30% in the mills. Companhia Siderurgica Chief Executive Officer Benjamin Steinbruch said that Baosteel Group may have to participate in multiple projects in Brazil to meet China's domestic demand as the nation shuts down polluting and unproductive steel makers, Bloomberg News' Mr. Blount stated. Companhia Siderurgica Nacional is one of the lowest-cost steel producers in the world, which is a result of its access to proprietary, high-quality iron ore (at the Casa de Pedra mine); self-sufficiency in energy; streamlined facilities; and logistics advantages. This is in addition to the group's strong market position in the fairly concentrated steel industry in Brazil. * * * On Jan. 26, 2006, Standard and Poor's Rating Services assigned a 'BB' corporate credit rating on Brazilian flat carbon steelmaker Companhia Siderurgica Nacional. The 'BB' corporate credit rating on CSN reflects the company's exposure to volatile demand and price cycles, increasing competition in its home and predominant market of Brazil, aggressive dividend policy and capital investment plan, and sizable gross-debt position. These risks are partly offset by CSN's privileged cost position and sound operating profile, favorable market position in Brazil, strong export capabilities to offset occasional domestic demand sluggishness, and increasing business diversification. PETROLEO BRASILEIRO: Inks Cooperation Deal with Enap ---------------------------------------------------- Brazilian state-owned oil firm Petroleo Brasileiro SA and Chilean counterpart Enap said in a joint statement that they have signed a cooperation deal to analyze projects and businesses in the energy sectors of the two nations. Business News Americas relates that the deal focuses on biofuels, liquefied natural gas and oil exploration in Brazil, Chile and other areas of the Pacific. Agencia Brasil notes that Brazil's President Luiz Inacio Lula da Silva and Chile's President Michelle Bachelet were scheduled to sign memorandums of understanding on April 26 at La Moneda Palace, in Santiago, Chile. The MOUs cover: -- science and technology, -- social security, -- biofuels, -- education, and -- tourism. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: Inks Policies Promotion Deal with 2 Groups --------------------------------------------------------------- Brazil's state-run oil firm Petroleo Brasileiro SA has signed a deal with the Brazilian chapters of environmental non-government organizations Greenpeace and WWF to promote sustainable development policies, Business News Americas reports. Greenpeace, WWF, Petroleo Brasileiro and Votorantim and Alcoa -- two other firms that entered the deal with the two organizations -- said in a joint statement that the deal is also aimed at boosting the presence of renewable sources in the Brazilian energy matrix. Greenpeace Brazil Campaign Manager Marcelo Furtado said in a press conference, "We want to show that if companies and civil action groups can sit together at a table, so can governments. There is vacuum of leadership on this issue and we have to create new leaders." According to BNamericas, the agreement involves 10 measures that need to be taken. Four of the measures are: -- a call to end deforestation, -- including more renewable sources in Brazil's energy mix, -- launching of a campaign to reduce carbon emissions, and -- calls for government cooperation. The statement says that the Greenpeace, WWF, and the companies will promote power efficiency programs and develop a national market to stimulate renewable sources like solar, wind and small-scale hydro. BNamericas adds that the Brazilian chapter of the World Business Council for Sustainable Development supports the deal. "We have three companies initially committed to the pact but we're talking with several others," CEBDS President Fernando told BNamericas. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. TELE NORTE: Reports BRL343 Mil. of Net Income for Second Quarter ---------------------------------------------------------------- Tele Norte Leste Participacoes SA reported financial data for the second quarter. Brazil's biggest phone company said in a statement it made higher profits for the second quarter after cutting debts and taking advantage of low interest rates, Bloomberg News reports. Tele Norte's net income more than doubled to BRL343 million (US$170 million), or 90 centavos per share, from BRL144.5 million, or 38 centavos, a year earlier. Revenue rose 5.5 percent to BRL6.2 billion. Debt fell 20 percent to BRL8.8 billion in the second quarter, compared to the same period in 2006. Earnings before interest, tax, amortization and depreciation, declined to BRL1.45 billion from BRL1.49 billion a year earlier. According to Bloomberg, falling interest rates in Brazil helped Tele Norte reduce costs tied to its debt and counter lower earnings from traditional telephone services. Brazil's central bank reduced the benchmark-lending rate for a 15th consecutive time on April 18 to bolster growth in Latin America's largest economy. Alex Pardellas, an equity analyst at ABN Amro NV, told Bloomberg that operating profit results were below expectations because the company incurred higher costs to connect calls to other service providers. TELE NORTE: Fitch Affirms BB+ Foreign Currency Default Rating ------------------------------------------------------------- Fitch Ratings has taken these actions for Tele Norte Leste Participacoes S.A. or TNL and Telemar Norte Leste S.A. or Tmar following the controlling shareholder's, Telemar Participacoes S.A. or TmarPart, BRL11 billion tender offer for all outstanding preferred shares of TNE and Tmar: Tele Norte Leste Participacoes S.A. or TNL -- Foreign currency IDR affirmed at 'BB+' with Stable Outlook; and -- Local currency IDR of 'BBB-' placed on Rating Watch Negative; -- National scale rating of 'AA+(bra)' placed on Rating Watch Negative. Telemar Norte Leste S.A. or Tmar -- Foreign currency IDR affirmed at 'BB+'; Outlook Stable; and -- Local currency IDR affirmed at 'BBB-'; Outlook Stable; -- National scale rating affirmed at 'AA+(bra)'; Outlook Stable. The rating action reflects the direct and indirect leveraging impact the transaction will have on holding company, TNL, and operating company, Tmar. The transaction is expected to be initially funded entirely by debt at the controlling shareholder level, TmarPart, which may be refinanced with a mix of debt and new equity over the medium term. On a pro forma basis, the transaction will increase TmarPart's consolidated total debt levels to approximately BRL20.9 billion from BRL9.9 billion and increase its net debt to BRL16.1 billion from BRL5.1 billion. Total debt-to-EBITDA will increase to 3.4x from 1.6x and Net debt-to-EBITDA will increase to 2.6x from 0.8x. EBITDA at year- end 2006 was BRL6.1 billion and cash was BRL4.7 billion. While the ultimate organizational and capital structure of the group remains unclear, the transaction once complete may facilitate the controlling shareholders previously stated goal of simplifying its ownership structure, allowing it to eliminate the intermediate holding company and to create one class of common shares at TmarPart; similar to last year's share exchange offer. A simplified ownership structure would positively increase overall financial flexibility for the group with regard to funding sources and could lead to greater transparency and improvements in corporate governance. The merging of TmarPart and TNL would clearly pressure the credit quality of TNL and at a minimum indirectly burden the operating company, TMAR, given the need to increase dividend cash flow to service the new additional holding company debt. Debt at Tmar may also increase if a large one-time dividend is made to partially repay the bridge debt used to fund the acquisition of the preferred shares. A one-time Tmar dividend would be limited to retained earnings of approximately BRL2.6 billion and could be funded either with balance sheet cash or new debt. The debt at the holding company level would be structurally subordinate to the debt at the operating company and likely be notched lower than the operating (Tmar) debt. The transaction will be completed only if shareholders representing at least 66% of TNL's preferred shares accept the tender off. Assuming that 100% of elects at TNL and Tmar to participate, TmarPart will have approximately 85% of TNL total shares which in turn, TNL will control close to 98% of Tmar total shares. Fitch expects that initially TNL ratings may be affected depending on the amount of TmarPart debt that will need to be serviced with dividends flowing from Tmar to TNL to TmarPart. Tmar's ratings are supported by its solid business position, strong cash flow generation and financial profile. TMAR continues to hold a leading market position in local service and long distance in region I. In addition, the company is one of the largest wireless operators in its region. Tmar's credit quality is underpinned by the strength of its local fixed line service. The company derives a significant portion of revenues from local service operations, which is expected to remain as the main cash flow generator for the company, although the ratings incorporate increased substitution of fixed traffic by wireless traffic and traffic loss due to substitution of dial up internet services by broadband services. TmarPart provides telecommunications services in region I, which comprises 16 states and includes Rio de Janeiro. TmarPart also provides Internet, data transmission, and long-distance services. TNL is majority controlled by Telemar Participacoes S.A., which is in turn controlled by a group of Brazilian investors. TNL had net revenues and EBITDA during 2006 of BRL16.9 billion and BRL6.1 billion, respectively. 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. TELE NORTE: Fitch Affirms BB+ Foreign Currency Default Ratings -------------------------------------------------------------- Fitch Ratings has taken these actions for Tele Norte Leste Participacoes S.A. or TNL and Telemar Norte Leste S.A. or Tmar following the controlling shareholders, Telemar Participacoes S.A. or TmarPart, BRL11 billion tender offer for all outstanding preferred shares of TNE and Tmar: Telemar Norte Leste S.A. or Tmar -- Foreign currency IDR affirmed at 'BB+'; Outlook Stable; and -- Local currency IDR affirmed at 'BBB-'; Outlook Stable; -- National scale rating affirmed at 'AA+(bra)'; Outlook Stable. Tele Norte Leste Participacoes S.A. or TNL -- Foreign currency IDR affirmed at 'BB+' with Stable Outlook; and -- Local currency Issuer Default Rating of 'BBB-' placed on Rating Watch Negative; -- National scale rating of 'AA+(bra)' placed on Rating Watch Negative. The rating action reflects the direct and indirect leveraging impact the transaction will have on holding company, TNL, and operating company, Tmar. The transaction is expected to be initially funded entirely by debt at the controlling shareholder level, TmarPart, which may be refinanced with a mix of debt and new equity over the medium term. On a pro forma basis, the transaction will increase TmarPart's consolidated total debt levels to approximately BRL20.9 billion from BRL9.9 billion and increase its net debt to BRL16.1 billion from BRL5.1 billion. Total debt-to-EBITDA will increase to 3.4x from 1.6x and Net debt-to-EBITDA will increase to 2.6x from 0.8x. EBITDA at year- end 2006 was BRL6.1 billion and cash was BRL4.7 billion. While the ultimate organizational and capital structure of the group remains unclear, the transaction once complete may facilitate the controlling shareholders previously stated goal of simplifying its ownership structure, allowing it to eliminate the intermediate holding company and to create one class of common shares at TmarPart; similar to last year's share exchange offer. A simplified ownership structure would positively increase overall financial flexibility for the group with regard to funding sources and could lead to greater transparency and improvements in corporate governance. The merging of TmarPart and TNL would clearly pressure the credit quality of TNL and at a minimum indirectly burden the operating company, TMAR, given the need to increase dividend cash flow to service the new additional holding company debt. Debt at Tmar may also increase if a large one-time dividend is made to partially repay the bridge debt used to fund the acquisition of the preferred shares. A one-time Tmar dividend would be limited to retained earnings of approximately BRL2.6 billion and could be funded either with balance sheet cash or new debt. The debt at the holding company level would be structurally subordinate to the debt at the operating company and likely be notched lower than the operating (Tmar) debt. The transaction will be completed only if shareholders representing at least 66% of TNL's preferred shares accept the tender off. Assuming that 100% of elects at TNL and Tmar to participate, TmarPart will have approximately 85% of TNL total shares which in turn, TNL will control close to 98% of Tmar total shares. Fitch expects that initially TNL ratings may be affected depending on the amount of TmarPart debt that will need to be serviced with dividends flowing from Tmar to TNL to TmarPart. Tmar's ratings are supported by its solid business position, strong cash flow generation and financial profile. TMAR continues to hold a leading market position in local service and long distance in region I. In addition, the company is one of the largest wireless operators in its region. Tmar's credit quality is underpinned by the strength of its local fixed line service. The company derives a significant portion of revenues from local service operations, which is expected to remain as the main cash flow generator for the company, although the ratings incorporate increased substitution of fixed traffic by wireless traffic and traffic loss due to substitution of dial up internet services by broadband services. TmarPart provides telecommunications services in region I, which comprises 16 states and includes Rio de Janeiro. TmarPart also provides Internet, data transmission, and long-distance services. TNL is majority controlled by Telemar Participacoes S.A., which is in turn controlled by a group of Brazilian investors. TNL had net revenues and EBITDA during 2006 of BRL16.9 billion and BRL6.1 billion, respectively. 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. TRW AUTOMOTIVE: Moody's Affirms Ba2 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service affirmed TRW Automotive, Inc.'s Corporate Family Rating at Ba2, and the ratings on the US$1.5 billion of recently issued senior unsecured notes, at Ba3. The rating agency also raised the company's Speculative Grade Liquidity Rating to SGL-1 from SGL-2. The outlook remains stable. In related actions, Moody's assigned Baa3 ratings to the new senior secured bank facilities of TRW Automotive, Inc. - - including US$1.4 billion of revolving credit facilities, a US$600 million term-loan A, and a US$500 million term-loan B. TRW Automotive intends to use the proceeds from the new senior secured bank facilities to refinance the existing senior secured credit facilities. The bank credit facility refinancing continues TRW Automotive's efforts to opportunistically extend its debt maturity profile, and reduce debt service costs. As a leading supplier of components and systems to automotive OEM's (original equipment manufacturer), TRW Automotive's business profile has many characteristics that are consistent with ratings higher than the assigned Ba2 Corporate Family Rating. The company enjoys a well-diversified revenue base, including long-standing supply arrangements with European and Asian automakers, as well as aftermarket sales. Continuous investment in new technologies should support future revenues, even as automotive demand softens. However, TRW Automotive has experienced the effects of ongoing pricing pressures from OEM customers as well as commodity price increases. EBIT margins of below 5% are considered moderate, and more consistent with the assigned ratings. For the last twelve months ended Dec. 31, 2006, TRW Automotive's consolidated total debt/EBITDA leverage was 3.5x; EBIT coverage of interest was 2.0x; free cash flow was approximately US$191 million. These metrics are viewed as consistent with speculative grade rated companies and with the company's Corporate Family Ratings at the Ba2 level. The stable outlook continues to anticipate that the company's geographic, customer and product diversification will support revenues even in the face of weaker automotive demand. Ongoing cost reduction efforts should benefit margins. This margin improvement, in conjunction with the lower debt service costs stemming from the refinancing, should support credit metrics consistent with the Ba2 Corporate Family Rating through the intermediate term. At year-end 2006, TRW Automotive maintained good liquidity with cash and cash equivalents of US$578 million, approximately US$830 million of availability under its revolving credit facility and about US$104 million of availability under its U.S. accounts receivable facility. The new US$1.4 billion revolving credit facility is expected to provide TRW Automotive with the same level of unused and available borrowing capacity provided by the facility being replaced. The company's Speculative Grade Liquidity rating of SGL-1 reflects the lower expected reliance on incremental funding under the proposed revolvers combined with expected covenant cushion improvement. These ratings were assigned: -- Baa3 (LGD2, 17%) rating for the new US$900 million senior secured domestic revolving credit facility; -- Baa3 (LGD2, 17%) rating for the new US$500 million senior secured global revolving credit facility; -- Baa3 (LGD2, 17%) rating for the new US$600 million senior secured term loan A; -- Baa3 (LGD2, 17%) rating for the new $500 million senior secured term loan B; These rating was raised: -- Speculative Grade Liquidity Rating, to SGL-1 from SGL-2 These ratings were affirmed: -- Ba2 Corporate Family rating; -- Ba2 Probability of Default rating; -- Ba3 (LGD5, 72%) on the US$500 million senior unsecured notes due 2014; -- Ba3 (LGD5, 72%) on the EUR275 million senior unsecured notes due 2014; -- Ba3 (LGD5, 72%) on the US$600 million senior unsecured notes due 2017; These ratings are withdrawn as a result of the successful tender for the overwhelming majority of the outstandings: -- B1 (LGD6, 97%) for the 9-3/8% Senior Notes due 2013; -- B1 (LGD6, 97%) for the 10.125% (Euro denominated) Senior Notes due 2013; -- B1 (LGD6, 97%) for the 11.75% (Euro denominated) Senior Subordinated Notes due 2013; and -- B1 (LGD6, 97%) for the 11% Senior Subordinated Notes due 2013. Upon closing of the new senior secured bank facilities these ratings will be withdrawn: -- Ba1 (LGD2, 26%) rating for the existing senior secured credit facilities The last rating action was on March 12, 2007, when Ba3 ratings were assigned to the company's US$1.5 billion of newly-issued unsecured notes. Consideration for downward outlook or rating migration would arise if any combination of factors were to increase leverage to over 3.5x or if EBIT/ Interest coverage under 2.0x. Future events that would be likely to improve TRW Automotive's outlook or ratings include further debt and leverage reduction from free cash flow, the realization of substantial new business awards, expansion into new markets, or improved operating margins resulting from new business wins or productivity improvement. Consideration for upward outlook or rating migration would arise if any combination of these factors were to reduce leverage to under 2.5x or increase EBIT/interest coverage to a level approximating 3.0x. Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE:TRW) -- http://www.trwauto.com/-- is an automotive supplier. Through its subsidiaries, the company employs approximately 63,800 people in 26 countries including Brazil, China, Germany and Italy. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. * BRAZIL: Approves US$9-Billion Bullet Train Project ---------------------------------------------------- The Associated Press reports that Brazil has granted feasibility studies for a planned US$9 billion (EUR6.6 billion) project of bullet train linking its two largest cities. Justice Augusto Nardes said in a statement that federal accounting court has approved the studies last Wednesday, the AP relates. According to the news, Brazil's dispersed railroads are now committed almost exclusively to cargo, forcing passengers to choose between expensive air travel or precarious highways. Citing O Globo newspaper, the AP relates that the bullet train would run mostly underground covering a 400-km or 250 mile trip between Rio de Janiero and Sao Paulo for US$60 (EUR45) each way. The trip could cost an hour and a half. Reports show that it would take 45 minutes for US$100 (EUR75), the flight between two cities. At peak hours, demand is so high that air shuttles take off every five to 10 minutes. O Globo says that three South Korean companies and one from Italy expressed interest in bidding that will begin in the next 90 days. Construction is set to take seven years. * * * 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 matters 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) authorizing 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 matters 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 matters will be taken during the meeting: 1) confirming, ratifying and approving the conduct of the liquidation by the liquidators, S.L.C. Whicker and K.D. Blake; 2) approving 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) authorizing the liquidators to retain the records of the company and of the liquidators for a period of five years from its dissolution, 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 matters 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 Ltd.'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 matters 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) authorizing the liquidators to retain the records of the company for a period of five years from its dissolution, 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 matters 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) authorizing the liquidators to retain the records of the company for a period of five years from its dissolution, 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 Ltd.'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 K. 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 Ends on 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 SF BUILDING: Proofs of Claim Filing Is Until 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 S.F. 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 matters 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) authorizing the liquidators to retain the company's records for a period of five years from its dissolution, 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 O L O M B I A =============== * COLOMBIA: To Hand Over Six Regional Airports to Private Firms --------------------------------------------------------------- Colombian President Alvaro Uribe's press office said in a statement that the government will turn over the management of six regional airports to private firms by year-end. According to the press office's statement, the government will hand over: -- two Medellin airports, -- the Carepa airport in Antioquia, -- the Monteria airport in Cordoba, -- the Quibdo airport in Choco, and -- the Sincelejo airport in Sucre. The statement says that the transfer will start in July. The will be placed in the auction block by year-end. Colombian airports authority head Fernando Sanclemente said in 2006 that the government was analyzing whether to hand over all the airports to one single firm or to auction them separately, Dow Jones Newswires reports. * * * As reported in the Troubled Company Reporter-Latin America on March 8, 2007, Standard & Poor's lifted the country's foreign credit to BB+ from BB. Colombia's local currency debt rating was raised to BBB+ from BBB. =================== C O S T A R I C A =================== US AIRWAYS: Reports US$66 Million First Quarter 2007 Net Profit --------------------------------------------------------------- US Airways Group, Inc., reported its first quarter 2007 results. Net profit for the first quarter was US$66 million compared to a net profit before cumulative effect of change in accounting principle of US$64 million for the same period last year. Excluding net credits from special items of US$32 million, the company reported a net profit of US$34 million. This compares to a net profit, before cumulative effect of change in accounting principle of US$5 million in the first quarter of 2006, which excludes net credits from special items of US$59 million. Chairman and CEO Doug Parker stated, "We are pleased to report a first quarter profit and an improvement in year-over-year earnings. This is particularly noteworthy given the first quarter was extremely difficult for us operationally. We were affected by two major storms that temporarily closed our Philadelphia hub and severely impacted our Northeast operations. Service disruptions also occurred during the quarter when we converted our two reservation systems to a single system. "Our 36,000 employees are to be commended for their outstanding efforts, particularly our employees who work with customers at our airports and reservation call centers. Our team did a remarkable job of taking care of our customers during a challenging conversion. We still have work to do to ensure our people have the tools they need to provide the type of service our customers deserve and expect, but we are making great progress thanks to our hard-working team. "Separately today, we announced a series of customer service initiatives designed to further improve our customer service. Bolstering our airport staffing, implementing improved kiosk technology at our airports and relaxing restrictions for our most loyal customers are just a few of the steps we are taking to build a better airline. "Looking forward, the recent rise in fuel prices is once again having a material effect on our outlook. Our current estimate for 2007 fuel price results in an additional US$300 million of expense versus our 2007 operating budget. Despite this significant cost increase, we continue to project a profitable second quarter and full-year 2007," concluded Mr. Parker. Revenue and Cost Comparisons Mainline passenger revenue per available seat mile or PRASM was 10.27 cents, up 3.4 percent over the same period last year. Express PRASM was 17.66 cents, up 5.7 percent over the first quarter 2006. Total mainline and Express PRASM for US Airways Group was 11.43 cents, up 3.3 percent compared to the first quarter 2006. Chief Financial Officer Derek Kerr stated, "Fuel continues to be our single largest operating expense. Our first quarter average mainline fuel price including taxes and realized losses on fuel hedging instruments (economic fuel price) was US$2.01 per gallon, up 4.4 percent over the first quarter 2006." Operating cost per available seat mile or CASM at US Airways Group was 11.89 cents, up 3.9 percent versus the same period last year. Mainline CASM for the quarter was 10.76 cents, up 3.7 percent, on an increase in capacity of 1.8 percent versus the first quarter of 2006. Excluding fuel, unrealized and realized gains/losses on fuel hedging instruments, and merger related transition expenses, mainline CASM was 7.88 cents, up 2.0 percent from the same period last year. The increase is due primarily to the operational difficulties that occurred in the quarter. Liquidity As of March 31, 2007, the company had US$3.3 billion in total cash and investments, of which US$2.5 billion was unrestricted. In April 2007, the company's restricted cash requirements were reduced by approximately US$200 million under an agreement with one of the company's credit card processors. In addition, during the quarter the company refinanced US$1.6 billion of existing secured and unsecured debt. The refinancing improves liquidity over the next seven years by reducing principal payments and lowers the company's near-term interest expense. The new loan currently bears interest at LIBOR plus 2.5 percent and reduced the blended interest margin by over 100 basis points. First Quarter Special Items During its first quarter, the company recognized US$32 million of net credits from special items, which included a US$90 million non-cash credit for unrealized net gains associated with the change in fair value of the company's outstanding fuel hedge contracts, US$39 million of merger-related transition expenses and an US$18 million write off of debt issuance costs in connection with the refinancing of US$1.25 billion of GE debt. In addition, the company had US$1 million of special non-cash expense in its income taxes for the quarter. Integration Update Operations * Announced that the airline's new combined flight operations control center will be located in Pittsburgh. The company plans to build a new 60,000 square foot center, which is scheduled to open in 2009. The airline's 600 scheduling, planning and other operation critical employees will be located at this new facility. * Combined the airline's maintenance inventory computer systems for the Boeing 767 and Airbus A330 fleets. Marketing * Migrated two reservations systems onto one platform (SHARES), which provides a single system for reservation and airport customer service agents. This enabled the company to simplify ticketing processes, remove redundant systems and provide a consistent product to its customers. The company continues to implement enhancements to the SHARES product based on feedback from customers and Frontline employees. * Continued fare reduction program lowering fares from Charlottesville, Va., Harrisburg, Pa., and Huntsville, Al. In all, the new US Airways has lowered fares in approximately 1,100 markets since its merger in September 2005. Headquartered in Arlington, Virginia, US Airways Group Inc.'s (NYSE: LCC) -- http://www.usairways.com/-- primary business activity is the ownership of the common stock of: * US Airways, Inc., * Allegheny Airlines, Inc., * Piedmont Airlines, Inc., * PSA Airlines, Inc., * MidAtlantic Airways, Inc., * US Airways Leasing and Sales, Inc., * Material Services Company, Inc., and * Airways Assurance Limited, LLC. Under a chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. US Airways, US Airways Shuttle, and US Airways Express operate approximately 3,800 flights per day and serve more than 230 communities in the U.S., Canada, Europe, the Caribbean, and Latin America. The new US Airways is a member of the Star Alliance, which provides connections for customers to 841 destinations in 157 countries worldwide. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain, among others. * * * As reported in Troubled Company Reporter on Feb. 1, 2007, Standard & Poor's Ratings Services affirmed its ratings on US Airways Group. and its major operating subsidiaries America West Holdings Corp., America West Airlines Inc., and US Airways Inc., including the 'B-' corporate credit ratings. The ratings were removed from CreditWatch, where they were placed with developing implications on Nov. 15, 2006. S&P said the outlook is positive. =================================== D O M I N I C A N R E P U B L I C =================================== ASHMORE ENERGY: To Open Hong Kong Office on Asian Energy Boom ------------------------------------------------------------- Ashmore Energy International or AEI will open an office in Hong Kong under the name of AEI Asia. The expansion will enable the company to invest in the tremendous growth in energy demand and need for new energy infrastructure projects throughout the entire Asia region. The company plans to both acquire and develop new energy infrastructure assets in the power generation, power distribution and natural gas services sectors to expand AEI's current business lines into Asia. AEI has hired an experienced local executive management team, headed by Colin Tam who will serve as the company's Asia-Pacific Regional Head responsible for leading AEI's overall business operations in Asia reporting directly to AEI's CEO, Brent de Jong and will serve as a member of AEI's executive management team. The other members of the Hong Kong team moving to AEI Asia will be: Eric d'Esparbes -- who will serve as CFO of AEI Asia; Samson Ng Shung Lai -- who will serve as Senior Vice President of Business Development of AEI Asia; Alan Chan -- who will serve as President and Chief Operating Officer of AEI Asia; and 4 other senior executives. The local management team members will commence employment with AEI Asia immediately upon finishing their notice periods. AEI is evaluating a number of growth opportunities in Asia and adding experienced leadership that is already based in the region will allow AEI to execute, assimilate and operate new projects on a more effective basis. The company currently owns and operates a 116 MW thermal power plant in the Philippines and through its predecessor, has been active in Asia for several years. The move represents the next step in AEI's strategic plan to focus on expanding its current business into emerging markets in new regions around the world. AEI has global resources, experience and expertise that when combined with new local management, will allow the company to rapidly become a key player in the expanding Asia energy market. Colin Tam is the founder, Chairman and CEO of Meiya Power Company Limited. He is also the co-founder and Chairman of Independent Power Producers Forum. Mr. Tam has over 30 years of experience in the power business both in the United States and Asia. During his career, he has held several senior positions in various influential national organizations within the power industry in the US. He is currently Chairman of Energy Committee of the American Chamber of Commerce in Hong Kong, Standing Director of the National China Investment Association and Vice Chairman of its Foreign Investors Committee. Ashmore Energy International Ltd. -- http://www.ashmoreenergy.com-- owns and operates a portfolio of energy infrastructure assets in power generation, transmission, and distribution of natural gas, gas liquids, and electric power. Ashmore Energy's portfolio, directly or indirectly, consists of 19 companies in 14 countries, most of which are located in Latin America. The company's largest asset is Brazilian electric distribution company, Elektro, which represents approximately 43% of EBITDA, and 55.3% of fiscal 2006 consolidated cash flow to parent company Ashmore Energy. The company also operates a power plant in the Dominican Republic. * * * As reported in the Troubled Company Reporter-Latin America on April 3, 2007, Standard & Poor's Ratings Services assigned its 'B+' secured debt rating and '3' recovery rating to Ashmore Energy International's US$105 million synthetic revolving credit facility due in 2012. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating on Ashmore Energy; its 'B+' senior secured debt rating and '3' recovery rating on its US$395 million revolving credit facility due 2012, which was reduced from US$500 million; and its 'B+' senior secured debt rating and '3' recovery rating on Ashmore Energy's US$1 billion term loan due in 2014. AEI Finance Holding LLC is a co-borrower to Ashmore Energy's bank facility. S&P said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on Feb. 27, 2007, Fitch Ratings assigned a BB Issuer Default rating to Ashmore Energy International Ltd. and rated its US$500 million senior revolver credit facility at BB. Also, Moody's Investors Service assigned a Ba3 rating to the senior secured credit facilities. OCHOA BANK: Regulator Takes Control Due to Liquidity Problems ------------------------------------------------------------- The Dominican Republic's Banks Superintendence has intervened the Ochoa Bank as liquidity and compensation problems have been detected in the bank, local paper Listin Diario reports. According to Listin Diario, the Banks Superintendence inspects Ochoa Bank shareholder Ochoa Motors although it is not part of the bank, to determine any connection between the two entities. Ochoa Bank and Ochoa Motors have a DOP1.2-billion deficit. Listin Diario relates that rumors on Ochoa Bank's collapse had caused several of its customers to flock at the bank's offices in Santiago on April 25 to demand the return of their deposits. However, Bernardo Perez, who claimed he was the Ochoa firms' lawyer, denied to Dominican Today that the Ochoa Bank had failed, calling the Banks Superintendence's intervention as ridicule. ===================== E L S A L V A D O R ===================== SPECTRUM BRANDS: Fitch Affirms CCC Issuer Default Rating -------------------------------------------------------- Fitch Ratings has affirmed the ratings of Spectrum Brands, Inc: -- Issuer default rating 'CCC'; -- US$1.6 billion 6-year Credit Agreement 'B/RR1'; -- US$700 million 7-3/8% Senior Subordinated Note due 2015 'CCC-/RR5'; and -- US$350 million 11.25% Variable Rate Toggle Interest pay-in-kind Senior Subordinated Note due 2013 'CCC-/RR5'. The Credit Agreement and Variable Rate Toggle Interest Note have relatively the same terms and conditions and are rated the same as the facilities being replaced. The Outlook remains Negative. Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. The company operates in 13 Latin American nations including El Salvador, Guatemala, Costa Rica, Colombia and Nicaragua. ================= G U A T E M A L A ================= AFFILIATED COMPUTER: Acquires Albion Assets for US$25.5 Million --------------------------------------------------------------- Affiliated Computer Services, Inc., has completed acquisition of certain assets of Albion, Inc., for US$25.5 million, subject to certain adjustments. The purchase was funded through a combination of cash and borrowings under Affiliated Computer's existing credit facility. The trailing 12-month revenue of the acquired assets was approximately US$25 million. The acquisition enables Affiliated Computer to address key HHS challenges facing State and Local government clients, including: * expensive legacy systems; * a need for cost effectiveness; and * a client-centered approach to service delivery. The acquired proprietary @Vantage software addresses these clients' challenges while meeting Federal financial support requirements for a commercial, off-the-shelf or COTS solution. "This capability is emerging as a standard for federal financial support among health and human services agencies," said Tom Burlin, Executive Vice President and Chief Operating Officer of Affiliated Computer Services Government Solutions. "Albion's @Vantage solution and our extensive experience in eligibility will provide ACS with a distinct advantage in the growing eligibility services market that will translate into better service for our clients." The combination of Affiliated Computer's BPO service offerings with the @Vantage solution enables Affiliated Computer to offer an end-to-end integrated eligibility offering across multiple HHS programs, including temporary assistance for needy families, food stamps, and Medicaid and significantly enhances Affiliated Computer's ability to bid competitively on future state eligibility systems contracts. Approximately 170 employees will transition to Affiliated Computer as part of the acquisition. About Albion Founded in 1994, Albion is headquartered in Atlanta, Georgia, with additional operations in Massachusetts, Minnesota, New Mexico, Tennessee, and Wyoming. The company specializes in integrated eligibility software solutions. Approximately 170 employees will transition to ACS as part of the acquisition. About Affiliated Computer Services Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology solutions to world- class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on April 3, 2007, Moody's Investors Service confirmed Affiliated Computer Services' Ba2 corporate family rating and assigned a stable rating outlook, following the company's conclusion of an internal investigation into its options granting practices and restoration to current U.S. Securities and Exchange Commission financial reporting. As reported in the Troubled Company Reporter on March 29, 2007, Fitch Ratings placed Affiliated Computer Services Inc. on Rating Watch Negative after the proposed offer from Darwin Deason, founder and current chairman of ACS, and Cerberus Capital Management L.P. to acquire the company in a leveraged buyout transaction valued at $8.2 billion, including existing debt. Ratings affected were (i) Issuer Default Rating 'BB'; (ii) Senior secured revolving credit facility at 'BB'; (iii) Senior secured term loan at 'BB'; and (iv) Senior notes at 'BB-'. IMAX CORP: Opens Second IMAX MPX(R) Theatre for Star Cinema ----------------------------------------------------------- IMAX Corporation and Wisconsin-based Star Cinema (AGT Enterprises, Inc/Star Iowa LLC) has agreed to open an IMAX(R) theatre in Star Cinema's multiplex located in Council Bluffs, Iowa, a suburb of Omaha, Nebraska, complimenting the current 16-screen movie theatre. The IMAX theatre will be the second for Star Cinema, following a very successful launch of the exhibitor's first IMAX theatre in Fitchburg/Madison, Wisconsin. The agreement is subject to the exhibitor obtaining local building permits and approvals, and the theatre is scheduled to be open in early 2008. "Our first IMAX theatre near Madison performed very well and helped increase the overall attendance for the entire multiplex," said Bill Adamany, Jr. of Star Cinema. "We believe we'll see similar results at the Council Bluffs location as our customers have responded extremely well to Hollywood movies presented in IMAX's format, a superior cinematic experience that moviegoers can't get anywhere else." The new theatre will utilize IMAX MPX(R) technology, designed specifically to enable multiplex operators to more cost effective entrance into the IMAX theatre business, either by retrofitting an existing stadium-seating auditorium or via an economical new build. The new IMAX theatre will be capable of playing Hollywood event films that have been digitally re- mastered into the unparalleled image and sound quality of The IMAX Experience(R), as well as original IMAX productions in 2D and IMAX(R) 3D. "Following the strong success of the Fitchburg location -- which drew audiences from beyond its city limits -- we couldn't be more pleased to expand our relationship with Star Cinema and its talented team of operators," added Larry T. O'Reilly, IMAX's Executive Vice President, Theatre Development. "It is especially gratifying when an exhibitor expands its IMAX presence, because it provides another example of how entering the IMAX theatre business is a profitable way to drive attendance and differentiate from the competition." About Star Cinema Founded in 1982, Star Cinema is owned and operated by AGT Enterprises, Inc./Star Iowa LLC of Prairie du Chien, Wisconsin. The company currently owns and operates 93 screens in Wisconsin and Iowa, including an IMAX theatre in Fitchburg, Wisconsin. Star Cinema is known for movie theatres that feature a three- lane canopy protecting guests from inclement weather; large tastefully decorated lobby areas; stadium-style seating; high- back rocking love seats; wall-to-wall curved screens; and digital sound throughout. About IMAX IMAX Corporation - http://www.imax.com-- is an entertainment technology company specializing in large-format and three- dimensional (3D) film presentations. The company's principal business is the design, manufacture, sale and lease of projection systems based on technology for large-format, 15- perforation film frame, 70-mm format (15/70-format) theaters, including commercial theaters, museums and science centers, and destination entertainment sites. IMAX has locations in Guatemala, India, Italy, among others. * * * As reported in the Troubled Company Reporter on March 22, 2007, Standard & Poor's Ratings Services affirmed its ratings, including the 'B-' corporate credit rating, on IMAX Corp. and removed them from CreditWatch, where they were placed on March 10, 2006, with developing implications. ============= J A M A I C A ============= DELTA AIR: Launches Jamaica Vacation Package Promotion ------------------------------------------------------ Delta Airlines has launched Delta Vacations Jamaica package, the Jamaica Gleaner reports. Caribbean Marketing Managing Director Karen Gauntlett told The Gleaner that the basic package includes: -- air fare, -- hotel accommodations, and -- a minimum of two nights with a maximum of 30 nights. Several packages can be offered including rent-a-car service, guided tours for the duration of the customer's stay and tickets to their favorite shows. All packages can be paid for in Jamaican currency, The Gleaner says, citing Ms. Gauntlett. According to The Gleaner, travel agents get 10% commission on the total packages they sell. The travel agent who sells the most packages by June will win a trip to Atlanta, with a three- night stay at the Sheraton Hotel. The Gleaner says that guests were showed videos of the various destinations that are offered with the Delta Vacations package, which include: -- the United States: * Las Vegas, * New York, and * Orlando; -- Canada: * Vancouver, * Toronto, and * Quebec; -- Spain; -- Germany; and -- Russia. Headquartered in Atlanta, Georgia, Delta Air Lines (OTC:DALRQ) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. The Company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. As of June 30, 2005, the Company's balance sheet showed US$21.5 billion in assets and US$28.5 billion in liabilities. (Delta Air Lines Bankruptcy News, Issue No. 68; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. The hearing to consider confirmation the Debtors' plan was scheduled yesterday. * JAMAICA: Will Sell Assets to Raise Funds This Year ---------------------------------------------------- The Jamaica government will sell assets acquired during the financial sector crisis in the 1990's to raise more money during the 2007 financial year, Radio Jamaica reports. Radio Jamaica relates that Financial Institutions Services Limited, the entity set up to manage the divestments, is expected to collect US$450 million from the sale of the properties. FIS collected US$300 million during 2006/2007. The FIS will also try to sell this year some of assets formerly owned by Blaise Financial Entities, Radio Jamaica says. According to a June 22, 2006, Jamaica Gleaner report, BFE collapsed in 1994. The Jamaican government shut down BFE due to insolvency. The FIS had to pay out over US$600 million to depositors. FIS sued BFE former directors Donald Panton and his wife Janet, and three of their firms, claiming that unsecured loans that totaled US$600 million were made by Blaise financial entities to Pantons' companies. Radio Jamaica notes that the case against the Pantons was settled out of court in June 2006, when the directors agreed to transfer all their assets, except one firm. The Jamaican Finance Ministry said in a report that the assets transferred are valued at US$400 million. * * * As reported in the Troubled Company Reporter on Feb. 7, 2006, the National Water Commission of Jamaica had been criticized for failing to act promptly in cutting its losses. For the fiscal years 2002 and 2003, the water commission accumulated a net loss of US$2.11 billion. The deficit fell to US$1.86 billion the following year, and to US$670 million in 2004 and 2005. =========== M E X I C O =========== BALLY TOTAL: NYSE Issues Delisting Notification ----------------------------------------------- Bally Total Fitness was notified by NYSE Regulation, Inc., that trading in Bally common stock will be suspended prior to the market open on May 2, 2007. The NYSE also will take action to formally delist Bally's common stock. NYSE Regulation indicated that its delisting determination was a result of Bally's failure to satisfy the NYSE's continued listing standards, including minimum market capitalization and minimum average share price requirements. Additionally, NYSE Regulation considered the company's failure to timely file its 2006 Annual Report on Form 10-K and its stated liquidity position. The company had been in communication with NYSE Regulation regarding the company's noncompliance. About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial operator of fitness centers in the U.S., with nearly 390 facilities and 30 franchises and joint ventures located in 29 states, Mexico, Canada, Korea, China and the Caribbean. Bally also sells Bally-branded apparel, nutritional products, fitness- related merchandise and its licensed portable exercise equipment is sold in more than 10,000 retail outlets. As reported in the Troubled Company Reporter-Latin America on March 20, 2007, Moody's Investors Service downgraded its corporate family rating on Bally Total Fitness Holding Corp. to Caa3 from Caa1. The rating outlook remains negative. Moody's also took these actions: -- US$235 million 10.5% senior unsecured notes (guaranteed) due 2011, downgraded to Caa3 (LGD 4, 51%) from Caa1 (LGD 4, 51%) -- US$300 million 9.875% senior subordinated notes due 2007, downgraded to Ca (LGD 5, 88%) from Caa3 (LGD 5, 88%) -- Probability of default rating, downgraded to Caa3 from Caa1. BALLY TOTAL: US Court Orders US$24,000 Payment to Singh Dhaliwal ---------------------------------------------------------------- U.S. District Judge Jeffrey S. White has ordered Bally Total Fitness to pay US$24,000 to Sukdev "Devin" Singh Dhaliwal, who sued the firm for denying him a job because he was Muslim, The Associated Press reports, citing the U.S. Equal Employment Opportunity Commission. EEOC told the AP that Mr. Dhaliwal applied for a sales job in one of Bally Total's five Fresno fitness centers in 2004. When the interviewer found out about Mr. Dhaliwal's religious and ethnic background, he was denied of a job. The company hired non-Sikh, non-Indian applicants with less experience. EEOC Program analyst Linda Li commented to the AP, "He was basically asked where he was born, where his parents were born, what religion he subscribed to and whether he was a Muslim. He's very American." Mr. Dhaliwal was born and raised in California. The court approved a decree ordering Bally Total to pay Mr. Dhaliwal US$24,000 in damages and provide training in equal opportunity hiring practices to managers at its Fresno locations, The AP states. Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial operator of fitness centers in the U.S., with nearly 390 facilities and 30 franchises and joint ventures located in 29 states, Mexico, Canada, Korea, China and the Caribbean. Bally also sells Bally-branded apparel, nutritional products, fitness- related merchandise and its licensed portable exercise equipment is sold in more than 10,000 retail outlets. * * * As reported in the Troubled Company Reporter-Latin America on April 19, 2007, Moody's Investors Service downgraded all the credit ratings of Bally Total Fitness Holding Corp. after its failure to make the April 16, 2007 interest payment on US$300 million principal amount of senior subordinated notes. Bally Total's failure to make the interest payment on the subordinated notes constitutes an event of default under the indenture governing its US$235 million of senior notes and, upon the expiration of the applicable grace period, will constitute an event of default under the subordinated notes indenture. Moody's downgraded the Probability of Default Rating to D and the Corporate Family Rating to Ca. The rating outlook was changed from negative to stable. These ratings were downgraded: -- US$235 million 10.5% senior unsecured notes (guaranteed) due 2011, to Ca (LGD 4, 51%) from Caa3 (LGD 4, 51%) -- US$300 million 9.875% senior subordinated notes due 2007, to C (LGD 5, 88%) from Ca (LGD 5, 88%) -- Corporate family rating, to Ca from Caa3 -- Probability of default rating, to D from Caa3 BALLY TOTAL: Negotiates Form of Waiver & Forbearance Pacts ---------------------------------------------------------- Bally Total Fitness has negotiated the form of limited waiver and forbearance arrangements with advisors representing the Ad Hoc Committee formed by holders of its 10-1/2% Senior Notes due 2011 and 9-7/8% Senior Subordinated Notes due 2007. As reported in the Troubled Company Reporter on April 13, 2007, the waivers relate to the company's inability to timely file its 2006 Annual Report on Form 10-K with the Securities and Exchange Commission and the company's non-payment of interest on its Senior Subordinated Notes, both of which are defaults under the indentures governing the notes. The company has requested that noteholders waive these defaults and forbear from exercising any related remedies until July 13, 2007 on terms similar to the recently executed forbearance agreement under the Company's senior secured credit facility. The company does not intend to pay a fee to the noteholders in connection with these waiver and forbearance arrangements. The Ad Hoc Committee represents certain holders of the Senior Notes and the Senior Subordinated Notes, and has retained Houlihan Lokey Howard & Zukin Capital as financial advisor and Akin Gump Strauss Hauer & Feld, LLP as counsel. The company and its advisors have met with the advisors to the Ad Hoc Committee and have negotiated the form of the limited waiver and forbearance arrangements under the indentures governing the notes. The forbearance agreement under the company's senior secured credit facility requires that forbearance arrangements be in place with respect to each series of notes by May 14, 2007. Holders of the notes are referred, and questions concerning the detailed terms and conditions of the waiver and forbearance arrangements should be directed to: Houlihan Lokey Attention: Brad Geer 255 South Sixth Street, Suite 4950 Minneapolis, MN 55402-4304 Telephone (612)-338-2910 Holders of the notes who want copies of the proposed forbearance agreements may also contact the company's financial advisor: Jefferies & Company, Inc. Attention: Thomas Carlson 520 Madison Avenue, 12th Floor New York, NY 10022 Telephone (212)-284-2045 Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial operator of fitness centers in the U.S., with nearly 390 facilities and 30 franchises and joint ventures located in 29 states, Mexico, Canada, Korea, China and the Caribbean. Bally also sells Bally-branded apparel, nutritional products, fitness- related merchandise and its licensed portable exercise equipment is sold in more than 10,000 retail outlets. As reported in the Troubled Company Reporter-Latin America on March 20, 2007, Moody's Investors Service downgraded its corporate family rating on Bally Total Fitness Holding Corp. to Caa3 from Caa1. The rating outlook remains negative. Moody's also took these actions: -- US$235 million 10.5% senior unsecured notes (guaranteed) due 2011, downgraded to Caa3 (LGD 4, 51%) from Caa1 (LGD 4, 51%) -- US$300 million 9.875% senior subordinated notes due 2007, downgraded to Ca (LGD 5, 88%) from Caa3 (LGD 5, 88%) -- Probability of default rating, downgraded to Caa3 from Caa1. CLEAR CHANNEL: Earns US$102.2 Million in Quarter Ended March 31 --------------------------------------------------------------- Clear Channel Communications Inc. reported net income of US$102.2 million for the first quarter of 2007, compared with net income of US$96.8 million for the first quarter of 2006. The company's first quarter 2006 net income included approximately US$39.6 million of pre-tax gains, primarily on the divestiture of radio assets and the swap of certain outdoor assets. The company reported revenues of US$1.6 billion in the first quarter of 2007, an increase of 8% from the US$1.5 billion reported for the first quarter of 2006. Included in the company's revenue is a US$31.2 million increase due to movements in foreign exchange; excluding the effects of these movements in foreign exchange, revenue growth would have been 6%. Clear Channel's income before discontinued operations increased 2% to US$99.2 million, as compared to US$97.1 million for the same period in 2006. Clear Channel's expenses increased 5% to US$1.1 billion during the first quarter of 2007 compared to 2006. Included in the company's 2007 expenses is a US$28.9 million increase due to movements in foreign exchange; excluding the effects of these movements in foreign exchange, growth in expenses would have been 3%. The company's operating income before depreciation & amortization, non-cash compensation expense and gain on disposition of assets - net) was US$435.7 million in the first quarter of 2007, a 12% increase from 2006. Mark P. Mays, chief executive officer of Clear Channel Communications, commented, "The company delivered solid first quarter results and we are very pleased with our overall performance. We want to thank and congratulate all of our employees, who work extremely hard every day to help Clear Channel achieve its goals and objectives." Proposed Merger Transaction On April 18, 2007, the company amended its agreement to be acquired by a group of private equity funds led by Bain Capital Partners LLC and Thomas H. Lee Partners L.P. to provide for an increase to US$39.00 per share in the price shareholders will receive in cash for each share of common stock they hold. The transaction is subject to shareholder approval, antitrust clearances, FCC approval and other customary closing conditions. The company filed its supplement to the definitive proxy statement with the U.S. Securities and Exchange Commission on April 25, 2007, and the shareholder meeting will be held on May 8, 2007. Radio and Television Divestitures On April 20, 2007, the company entered into a definitive agreement to sell its Television Group for approximately US$1.2 billion. The sale includes 56 television stations (including 18 digital multicast stations) located in 24 markets across the United States. Also included in the sale are the stations' associated Web sites, the Television Operations Center, and Inergize Digital Media, which manages the Television Group's online and wireless initiatives. The transaction is expected to close in the fourth quarter of 2007, subject to regulatory approvals and other customary closing conditions. Clear Channel estimates net proceeds after taxes and customary transaction costs will be approximately US$1.1 billion for the Television Group. To date the company has entered definitive agreements to sell 161 radio stations in 34 markets for a total consideration of approximately US$331 million. The company expects these transactions to close during the second half of 2007. The company estimates net proceeds after taxes and customary transaction costs for these 161 stations will be approximately US$300 million. Liquidity and Total Debt For the quarter ended March 31, 2007, cash flow from operating activities was US$337.9 million, cash flow used by investing activities was US$75.7 million, cash flow used by financing activities was US$283.2 million, and net cash provided by discontinued operations was US$14.6 million for a net decrease in cash of US$6.4 million. At March 31, 2007, Clear Channel had total debt of US$7.4 billion. About Clear Channel 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. * * * As reported in the Troubled Company Reporter on April 23, 2007, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Clear Channel Communications Inc. to 'B+' from 'BB+'. The ratings remain on CreditWatch with negative implications, where they were placed on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. FORD MOTOR: Reports Preliminary Results for First Quarter 2007 -------------------------------------------------------------- Ford Motor Company reported a net loss of US$282 million, for the first quarter of 2007. This compares with a net loss of US$1.4 billion, in the first quarter of 2006. Ford's first-quarter loss from continuing operations, excluding special items, was US$171 million, compared with a profit of US$223 million, in the same period a year ago. Special items, which primarily reflected the impact of restructuring efforts, reduced pre-tax results by US$113 million in the first quarter. Ford's first-quarter revenue was US$43 billion, up from US$40.8 billion a year ago. The increase primarily reflected mix improvement and favorable currency exchange, partially offset by lower volume. "We are making progress on executing the four priorities of our plan -- restructuring the company, accelerating product development, funding our plan and working effectively as one team," said president and chief executive officer Alan Mulally. "I am pleased that the basics of our business are improving, but we still have a lot of work to do. "Our first quarter results came in somewhat stronger than expected, but there are many uncertainties going forward. We remain focused on improving our quality, productivity and business performance," Mr. Mulally added. Automotive Sector On a pre-tax basis, worldwide Automotive sector losses in the first quarter were US$225 million. This compares with a pre-tax loss of US$203 million during the same period a year ago. The 2007 losses were more than explained by net interest expense, partially offset by automotive operating profits of US$116 million during the quarter. Worldwide Automotive revenue for the first quarter was US$38.6 billion, up from $37 billion in the same period last year. The increase primarily reflected mix improvement and favorable currency exchange, partially offset by lower volume. Vehicle wholesales in the first quarter were 1,650,000, down from 1,756,000 a year ago. Automotive gross cash, which includes cash and cash equivalents, net marketable securities, loaned securities and short-term VEBA assets, was US$35.2 billion at March 31, 2007, up from US$33.9 billion at the end of the fourth quarter. Ford North America: In the first quarter, Ford's North America Automotive operations reported a pre-tax loss of US$614 million, compared with a pre-tax loss of US$442 million a year ago. The increase in losses primarily reflected unfavorable volume and mix, partially offset by cost reductions. Revenue was US$18.2 billion, down from US$19.8 billion for the same period a year ago. Ford South America: Ford's South America Automotive operations reported a first-quarter pre-tax profit of US$113 million, compared with a pre-tax profit of US$137 million a year ago. The decline primarily reflected the non-recurrence of hedging gains. First quarter revenue improved to US$1.3 billion from US$1.2 billion in 2006. Ford Europe: Ford Europe's first-quarter pre-tax profit was US$219 million compared with a pre-tax profit of US$65 million during the same period in 2006. The improvement was more than explained by favorable volume and mix, partially offset by higher incentive spending. During the first quarter of 2007, Ford Europe's revenue was US$8.6 billion, compared with US$6.8 billion during the first quarter of 2006. Premier Automotive Group (PAG): PAG reported a record pre-tax profit of US$402 million for the first quarter, compared with a pre-tax profit of US$152 million for the same period in 2006. The improvement is more than explained by favorable volume and mix, favorable net pricing and lower costs, partially offset by adverse currency exchange. First-quarter 2007 revenue was US$8.4 billion, compared with US$7.1 billion a year ago. Ford Asia Pacific and Africa: For the first quarter, Ford Asia Pacific and Africa reported a pre-tax loss of US$26 million, compared with a pre-tax profit of US$2 million a year ago. Adverse currency exchange and unfavorable volume and mix were partially offset by favorable cost performance. Revenue was US$1.8 billion for the first quarter of 2007, compared with US$1.7 billion in 2006. Mazda: For the first quarter, Ford earned US$22 million from its investment in Mazda and associated operations, compared with US$45 million during the same period a year ago. The decline is largely explained by the non-recurrence of gains on an investment in Mazda convertible bonds. Other Automotive: First-quarter results included a pre-tax loss of US$341 million, compared with a loss of US$162 million a year ago. The year-over-year decline is largely explained by higher interest expense and related costs associated with the debt increase in the fourth quarter of 2006. This was partially offset by increased interest income on a larger cash portfolio. Financial Services Sector For the first quarter, Financial Services sector earned a pre- tax profit of US$294 million, compared with a pre-tax profit of US$375 million a year ago. Ford Motor Credit Company: Ford Motor Credit reported net income of US$193 million in the first quarter of 2007, down US$55 million from earnings of US$248 million a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned $294 million in the first quarter, compared with US$382 million in the previous year. The decrease in earnings was more than explained by higher borrowing costs and higher depreciation expense for leased vehicles. The non-recurrence of losses related to market valuation adjustments from non-designated derivatives was a partial offset. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes due 2036. GLOBAL POWER: Court Extends Exclusive Filing Period to May 2 ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware entered a bridge order extending Global Power Equipment Group Inc. and its debtor-affiliates' exclusive period to file a plan until a hearing scheduled for May 2, 2007. The Court also gave the Debtors until July 2, 2007, to solicit acceptances of that plan. In their motion, the Debtors requested an August 24, 2007 extension of their exclusive period to file a plan. The Debtors told the Court that they have continued to make substantial progress in addressing major issues facing their estates, including: a) stabilizing each of the Debtors' major business segments and developing new business opportunities; b) addressing issues regarding the wind down of Deltak LLC and Deltak Construction Services Inc.'s heat recovery steam generation business segment; c) reaching additional accommodation agreements with key customers; and d) developing a five-year business plan, which was recently presented to the Debtors' Official Committee of Unsecured Creditors. Notwithstanding the substantial progress to date, the Debtors explained that a significant amount of work remains to be done before they will be able to propose a plan consistent with their fiduciary duties to maximize value, including, inter alia, the refinement and testing of their business plan, evaluation and reconciliation of claims filed against them, and an analysis of their intercompany assets and liabilities. Moreover, the Debtors said they continue to meet with the Committee on a regular basis, and in anticipation of preparing a chapter 11 plan of reorganization, are now preparing a plan term sheet, which they intend to share with the Committee in the near future. Based in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP represents the Official Committee of Unsecured Creditors. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. GLOBAL POWER: Consulting Pacts w/ Former Execs Extended to May 2 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware permitted Global Power Equipment Group Inc. and its debtor-affiliates to extend their consulting agreements, as modified, with former executives Larry Edwards and James P. Wilson until May 2, 2007. The Order is without prejudice to the Debtor's right to request for further extension of the agreements. The Official Committee of Unsecured Creditors consented to the extension. The Debtors tell the Court that they need Messrs. Edward's and Wilson's services particularly in relation to the continuing transition in senior management of the Debtors. Although their full-time services are no longer required, the Debtors explain that the consulting agreements provide the Debtors with the flexibility to continue to take advantage of Messrs. Edward's and Wilson's significant experience and expertise in a manner that will provide significant benefits to the Debtors' estates while minimizing costs. Effective Nov. 21, 2006, Mr. Edwards resigned from his officer position as president and chief executive officer of the Debtors. He continues to serve as a non-executive member of Global Power's Board of Directors. Also effective Nov. 21, 2006, Mr. Wilson resigned from his officer position as vice president of finance and chief financial officer of Global Power. Mr. Wilson joined the company in 1986. Based in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP represents the Official Committee of Unsecured Creditors. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. GLOBAL POWER: Court Approves PricewaterhouseCoopers as Auditors --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave Global Power Equipment Group and its debtor-affiliates permission to employ PricewaterhouseCoopers LLP as its tax advisors and auditors. As reported in the Troubled Company Reporter on Feb. 14, 2007, PricewaterhouseCoopers is expected to: a) prepare and sign the Debtors' federal tax returns for the tax years starting Jan. 1, 2005 through Dec. 31, 2006; b) prepare and sign federal tax returns for a number of the Debtors' foreign subsidiaries for the tax years starting Jan. 1, 2005 through Dec. 31, 2006, and assist in the preparation of forms and related computations for the foreign tax credit; c) prepare and sign the Debtors' state corporate income tax returns, for the tax years starting Jan. 1, 2005 through Dec. 31, 2006; d) serve as the Electronic Return Originator with respect to the tax returns that must be filed electronically; and e) provide the Debtors with additional tax services as requested, including, but not limited to, providing recurring tax consulting services, assisting with matters involving tax authorities, and preparing additional tax forms. Among other things, PricewaterhouseCoopers is also expected to: a) perform consolidated audits of the Debtors' financial statements related to the years ended Dec. 31, 2005, and, if expressly requested by the Debtors, Dec. 31, 2006; b) audit management's assessment of the effectiveness of the Debtors' internal control over financial reporting and the effectiveness of management's internal control over financial reporting for the period under audit; and c) report to the Debtors any matter discovered that may require material modifications to the quarterly financial information so that it conforms to generally accepted accounting principles. The firm's professionals bill: Designation Hourly Rate ----------- ----------- Partners US$585 - US$802 Managers/Senior Managers US$342 - US$446 Associate/Senior Associates US$118 - US$225 Administration US$77 - US$105 David S. Colwell, a PricewaterhouseCoopers member, assured the Court that his firm does not hold any interest adverse to the Debtors' estates and is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Based in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP represents the Official Committee of Unsecured Creditors. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. GRUPO FINANCIERO: Net Income Rises to MXN1.62B in First Quarter --------------------------------------------------------------- Grupo Financiero Banorte SA said in a statement that its net income increased to MXN1.62 billion in the first quarter 2007, from MXN1.42 billion in the first quarter 2006. Adriana Arai at Bloomberg News says that Grupo Financiero said first-quarter profit rose 14% after the firm lured credit-card clients and loaned more to companies. Bloomberg News' Ms. Arai relates that while Mexican banks are benefiting from increasing demand for consumer credit, Grupo Financiero spurred growth by launching a program that lets borrowers to transfer credit-card balances from rivals. A 50% boost in credit-card balances helped increase total consumer lending by 24%, Bloomberg News' Adriana Arai notes, citing Grupo Financiero. Business loans increased 45%. According to Bloomberg News' Ms. Arai, Grupo Financiero Chief Executive Officer Luis Pena Kegel said on a video conference, "The pace of domestic demand growth isn't slowing along with the economy. Many people who didn't have credit or didn't keep savings at a bank are joining the banking system." Mr. Kegel said that if not for accounting rule changes and the US$259-million purchase of a 70% stake in the U.S. bank Inter National Bank, Grupo Financiero's profit would have been higher, Bloomberg News' Ms. Arai notes. Mr. Kegel explained that under new regulations, Grupo Financiero must recognize fees on credit over the life of a loan, while before, the fees were booked as revenue as the client paid them, Bloomberg News' Ms. Arai states. The Inter National Bank also decreased Grupo Financiero's profit from lending, as the difference between the interest rates at which banks lend and borrow in the U.S. is smaller than Mexico's, Mr. Kegel continued. Bloomberg News' Ms. Arai reports that Mr. Kegel said the Inter National Bank's cross-border banking business, particularly mortgages to U.S. citizens who wish to buy property in Mexico, is doing well. According to Mr. Kegel, Grupo Financiero doesn't rule out a small acquisition in the U.S. in 2007 or in 2008. JPMorgan Chase & Co. analyst Juan M. Partida said he expects Grupo Financeiro's profit to grow 14% to 6.43 billion in 2007, compared to 2006, Bloomberg News' Ms. Arai states. Grupo Financiero Banorte SA de CV is a holding company that operates, through its subsidiaries, in the Mexican banking industry. The company's main activities include commercial, personal and investment banking, securities trading, insurance, pension funds, leasing and credit financing. Its two main subsidiaries are Banorte (96.11%) and Bancentro (99.99%), which both offer personal and commercial banking services such as credit and debit cards, insurance products, savings accounts and mortgage financing. As of Dec. 31, 2005, Grupo Financiero Banorte run a total of 986 offices and over 2,800 automated teller machines across Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 2, 2006, Fitch upgraded the individual and Issuer Default Ratings of Mexico's Grupo Financiero Banorte and Banco Mercantil del Norte as: Grupo Financiero Banorte and Banco Mercantil del Norte: -- Foreign & local currency IDR to 'BBB' from 'BBB-'; -- Short-term local currency to 'F2' from 'F3'; and -- Individual to 'C' from 'C/D'. Fitch said ratings outlook is stable. HIPOTECARIA CREDITO: Sells MXN900MM Mortgage-Backed Securities -------------------------------------------------------------- Hipotecaria Credito y Casa said in a press release that it has sold about MXN900 million of residential mortgage-backed securities on the local stock exchange. As reported in the Troubled Company Reporter-Latin America on April 23, 2007, Hipotecaria Credito's Investor Relations Director Antonio Carranza said that the company will sell MXN900 million of residential mortgage-backed securities on the local stock exchange on April 24. The issue is part of the MXN4- billion program reopened in March. Hipotecaria Credito had said that it sold MXN700 million in residential mortgage backed securities. The company sold 27-year bonds backed by mortgage loans. The local units of Santander Central Hispano SA and Barclays Plc managed the transaction. BNamericas relates that the newly sold securities consisted of two series valued at a combined MXN234-million Mexican index- linked units. According to BNamericas, the series A bonds yield 4.50%, while the series B securities yield 6.65%. BNamericas notes that the Mexican subsidiaries of Santander and Deutsche Bank were the placements agents. Hipotecaria Credito said in a statement that it has securitized about MXN3.90 billion in loans. Hipotecaria Credito y Casa is a special purpose financial company, or Sofol, that specializes in low-income mortgage lending and also provides construction bridge loans for housing developments. It is based in Culiacan, Sinaloa, Mexico. It started operations in 1997 as a non-bank financial institution/Sofol Mortgage Company. Hippotecaria Credito's main activity consists of extending mortgages financed by monies from SHF to low income households. As of March 31, 2006, the company reported assets of MXN19.3 billion and MXN1.3 billion in equity. * * * As reported in the Troubled Company Reporter-Latin America on June 27, 2006, Moody's de Mexico assigned a (P)B1 senior unsecured debt, and Baa2.mx ratings on the MXN3 billion MTN programs of Hipotecaria Credito y Casa, S.A. de C.V. Moody's said the rating outlook was stable. JOAN FABRICS: Wants Court OK on Mintz Levin as Bankruptcy Atty. --------------------------------------------------------------- Joan Fabrics Corporation and its debtor-affiliate, Madison Avenue Designs LLC, ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., as their counsel. Mintz Levin will: a. advise the Debtors with respect to their powers and duties as debtors-in-possession in the continued management and operation of their business and property; b. represent the Debtors at all hearings and matters pertaining to their affairs as debtors and debtors-in- possession; c. attend meetings and negotiate with representatives of the Debtors' creditors and other parties in interest, as well as respond to creditor inquiries; d. take all necessary action to protect and preserve the Debtors' estates; e. prepare on behalf of the Debtors all necessary and appropriate motions, applications, answers, orders, reports and papers necessary to the administration of Debtors' estates; f. review applications and motions filed in connection with these cases; g. negotiate and prepare on the Debtors' behalf a plan of reorganization, disclosure statement, and all related agreements and/or documents, and take any necessary action on behalf of the Debtors to obtain confirmation of such plan; h. advise the Debtors in connection with any potential sale of assets or business, or in connection with any strategic partnering; i. review and evaluate the Debtors' executory contracts and unexpired leases and represent the Debtors in connection with the rejection, assumption or assignment of such leases; j. consult with and advise the Debtors regarding labor and employment matters; k. represent the Debtors in connection with any adversary proceedings or automatic stay litigation which may be commenced by or against the Debtors; l. review and analyze various claims of the Debtors' creditors and the treatment of those claims and the preparation, filing or prosecution of any objections to those claims; and m. perform all other necessary legal services and provide all other necessary legal advice to the Debtors in connection with these chapter 11 cases. The Debtors disclose that the firm's current hourly rates are: Designation Hourly Rates ----------- ------------ Members US$480 - US$695 Associates US$335 - US$475 Paraprofessionals US$200 Richard E. Mikels, Esq., says that his firm has received a US$100,000 retainer. To the best of the Debtors' knowledge, the firm does not hold or represent an interest adverse to the estate. The firm can be reached at: Richard E. Mikels, Esq. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C. One Financial Center Boston, MA 02111 Tel: (617) 348-1691 http://www.mintz.com/ Based in Tyngsboro, Massachusetts, Joan Fabrics Corporation manufactures automotive and furniture upholstery fabrics. The company has a manufacturing facility in North Carolina and an affiliate entity in Mexico. The Debtor and its affiliate, Madison Avenue Designs, LLC, filed for Chapter 11 protection on April 10, 2007 (Bankr. D. Del. Case Nos. 07-10479 and 07-10480). When the Debtors filed for protection from their creditors, they listed estimated assets and debts of US$1 million to US$100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Aug. 8, 2007. JOAN FABRICS: Taps Pachulski Stang as Delaware Counsel ------------------------------------------------------ Joan Fabrics Corporation and its debtor-affiliate, Madison Avenue Designs LLC, ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Pachulski Stang Ziehl Young Jones & Weintraub LLP, nunc pro tunc to the bankruptcy filing, as their Delaware and conflicts counsel. Pachulski Stang will: a. provide legal advice with respect to the Debtors' powers and duties as debtors-in-possession in the continued operation of their businesses and management of their properties; b. prepare on behalf of the Debtors necessary applications, motions, answers, orders, reports, and other legal papers; c. appear in Court on behalf of the Debtors and in order to protect the interests of the Debtors before the Court; d. prepare and pursue confirmation of a plan[s] and approval of a disclosure statement[s]; and e. perform all other legal services for the Debtors that may be necessary and proper in these proceedings. The Debtors disclose that Pachulski Stang's professionals bill: Professional Hourly Rates ------------ ------------ Laura Davis Jones, Esq. US$750 Michael R. Seidl, Esq. US$450 Curtis A. Hehn, Esq. US$375 Karina K. Yee US$190 Laura Davis Jones, Esq., assures the Court that Pachulski Stang does not hold any adverse interest. The firm can be reached at: Laura Davis Jones, Esq. Pachulski Stang Ziehl Young Jones & Weintraub LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705 Tel: (302) 652-4100 http://www.pszyjw.com/ Based in Tyngsboro, Massachusetts, Joan Fabrics Corporation manufactures automotive and furniture upholstery fabrics. The company has a manufacturing facility in North Carolina and an affiliate entity in Mexico. The Debtor and its affiliate, Madison Avenue Designs, LLC, filed for Chapter 11 protection on April 10, 2007 (Bankr. D. Del. Case Nos. 07-10479 and 07-10480). When the Debtors filed for protection from their creditors, they listed estimated assets and debts of US$1 million to US$100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Aug. 8, 2007. JOAN FABRICS: Court Okays Bankruptcy Services as Claims Agent ------------------------------------------------------------- Joan Fabrics Corporation and its debtor-affiliates, Madison Avenue Designs LLC, obtained permission from the U.S. Bankruptcy Court for the District of Delaware to employ Bankruptcy Services LLC as their notice, claims and balloting agent. BSI will: a. serve as the Court's noticing agent to mail notices to certain of the estates' creditors and other parties in interest; b. provide computerized claims, objection and balloting database services; c. provide expertise, consultation and assistance in claim and ballot processing and other administrative information related to the Debtors' chapter 11 cases; and d. provide disbursement services with respect to the Debtors' bankruptcy cases, if requested. In addition, the Debtors anticipate BSI will: a. assist the Debtors in the preparation and filing of their Schedules of Assets and Liabilities and Statement of Financial Affairs; b. prepare and serve required notices in the Debtors' chapter 11 cases, including: -- a notice of commencement of the Debtors' chapter 11 cases and the initial meeting of creditors; -- a notice of the claims bar date; -- notices of objections to claims; -- notices of hearings on a disclosure statement and confirmation of a plan of reorganization; -- assistance in the publication of required notices, as necessary; and -- such other miscellaneous notices as the Debtors or the Court may deem necessary or appropriate for an orderly administration of the Debtors' chapter 11 cases; c. within five business days after the service of a particular notice, prepare for filing with the Clerk's Office and affidavit of service that includes: -- a copy of the notice served; -- an alphabetical list of persons on whome the notice was served, along with their addresses; and -- the date and manner of service; d. maintain copies of all proofs of claim of interest filed in the cases; e. maintain official claims registers iin the cases by docketing all proofs of claim and proofs of interest in claims database that includes these information for each claim and interest asserted: -- name and address of the claimant or interest holder and any agent if the proof of claim or proof of interest was filed by an agent; -- the date the proof of claim or interest was received by BSI and/or the Court; -- the claim number assigned to the proof of claim or interest; and -- the asserted amount and classification of the claim. f. implement necessary security measures to ensure the completeness and integrity of the claims registers; g. transmit to the Clerk's Office a copy of the claims registers on a weekly basis, unless requested by the Clerk's Office on a more or less frequent basis; h. maintain a current mailing list for all entities that have filed proofs of claim or interest and make the list available to the Clerk's Office or any party in interest upon request; i. provide access to the public for examination of copies of the proofs of claim or interest filed in the cases without charge during regular business hours; j. create and maintain a public access Web site setting forth pertinent case information and allowing access to electronic copies of proofs of claim or interest; k. record all transfers of claims and give notice of the transfers as required by Bankruptcy Rule 3001(e); l. comply with applicable federal, state, municipal and local statutes, ordinances, rules, regulations, orders and other requirements; m. assign temporary employees to process claims, as necessary; n. promptly comply with such further conditions and requirements as the Clerk's Office or the Court may at any time prescribe; o. provide balloting and soliciting services, including preparing ballot, producing personalized ballots and tabulating creditor ballots on a daily basis; and p. provide other claims processing, noticing, balloting and related administrative services as may be requested from time to time by the Debtors. Lorenzo Mendizabal, Managing Director of BSI, discloses that it has received a US$10,000 retainer from the Debtor. To the best of the Debtors' knowledge, BSI is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Joan Fabrics Based in Tyngsboro, Massachusetts, Joan Fabrics Corporation manufactures automotive and furniture upholstery fabrics. The company has a manufacturing facility in North Carolina and an affiliate entity in Mexico. The Debtor and its affiliate, Madison Avenue Designs, LLC, filed for Chapter 11 protection on April 10, 2007 (Bankr. D. Del. Case Nos. 07-10479 and 07-10480). When the Debtors filed for protection from their creditors, they listed estimated assets and debts of US$1 million to US$100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Aug. 8, 2007. MEGA BRANDS: Hires Andree Pinard as Treasury & Investor Director ---------------------------------------------------------------- MEGA Brands Inc. appointed Andree Pinard as Director, Treasury and Investor Relations, effective immediately. In addition to her Treasury responsibilities, she will be the corporation's lead contact with the financial community including financial analysts, equity and debt institutional investors, and credit agencies. Ms. Pinard brings a strong background in financial management and corporate finance to MEGA Brands. Prior to her current appointment, she served six years as Treasurer of COGECO Inc. after joining the company in 1997 as Director, Financial Planning. Ms. Pinard has also worked in corporate finance with Nesbitt Burns Inc. She is a McGill University alumnus with a Bachelor of Commerce and a Graduate Diploma in Public Accounting. Ms. Pinard received her designation as a Chartered Accountant in 1990 and obtained an MBA in Finance and International Affairs from the University of Chicago in 1994. Montreal, Canada-based Mega Brands Inc. fka Mega Bloks Inc. -- http://www.megabloks.com/-- distributes a range of toys, puzzles, and craft-based products worldwide. The company has offices in Mexico. * * * As reported in the Troubled Company Reporter-Latin America on April 24, 2007, Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit and bank loan ratings on MEGA Brands Inc. on CreditWatch with negative implications. The bank loan's '2' recovery rating was also placed on CreditWatch. As reported in the Troubled Company Reporter-Latin America on April 23, 2007, Moody's placed the Ba3 corporate family rating and other long-term ratings of MEGA Brands, Inc. on review for possible downgrade after the company announced weaker than expected results for the fourth quarter of 2006 and for the full year. The speculative grade liquidity rating was affirmed at SGL-3 Ratings under review for possible downgrade: MEGA Brands Inc. -- Ba3 Corporate Family Rating MEGA Brands Inc. -- Ba2 rating on the 5-year revolving credit facility; LGD 2; 24% MEGA Blocks US -- Ba2 rating on the 5-year revolving credit facility; LGD 2; 24% MEGA Brands Inc. -- Ba2 rating on the US$40 million, 5-year term loan A facility; LGD 2; 24% MEGA Brands Finco -- Ba2 rating on the US$260 million 7-year term loan B facility; LGD 2; 24% MEGA Brands Inc. -- Probability of Default rating at B1 METROFINANCIERA SA: S&P Affirms BB- Counterparty Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' long-term foreign currency counterparty credit rating on Metrofinanciera S.A. de C.V. SOFOM. ENR. The outlook is stable. "The ratings reflect a high level of indebtedness, relatively high individual concentration on bridge loans in Metrofinanciera's loan portfolio, its low coverage of operating expenses with recurring revenues, and a low capital base to support the riskier nature of a loan portfolio that is construction -- and land loan-oriented," said Standard & Poor's credit analyst Laurence Wattraint. The ratings are supported by its ability to maintain a high revenue stream, its capacity to raise the coverage of nonperforming assets without significantly affecting its overall profitability, and its access to financial markets compared with that of its peers. The outlook is stable. Standard & Poor's expect Metrofinanciera to reduce its leverage and restore its financial flexibility by June 2007, while maintaining asset quality indicators and improving cash flow generation. The company's inability to achieve a debt-to-equity level below 14x and improve its liquidity position will determine future rating actions. The privately held Metrofinanciera is Mexico's fourth largest specialized housing lending company, with a portfolio of MXN13.3 billion (USUS$1.25billion) under administration at the end of 2005. Founded in 1996 by local businessmen, the Monterrey-based lender has developed a network of six regional offices and 50 branches that operates nationwide. TV AZTECA: Reports MXN179 Million Net Income in 2007 First Qtr. --------------------------------------------------------------- TV Azteca, S.A. de C.V. reported net sales of MXN1,781 million during the first quarter, compared with MXN1,877 million in the same period of 2006. EBITDA this quarter was MXN595 million, from MXN696 million registered a year ago; EBITDA margin was 33%. "The results this quarter are not completely comparable with those of the previous year, due to the strong ad investment related to extraordinary events in 2006," said Mario San Roman, CEO of TV Azteca. "But beyond the market's cyclical behavior, the company's solid fundamentals bring certainty to our perspectives. Audience share in Mexico was remarkable in the quarter, and we are building even more competitive programming grids. Additionally, sales to the US Hispanic market have been superior in the past five quarters." On the strategic front, the company repurchased 66 million TV Azteca CPOs in the quarter, equivalent to approximately 2% of the company's outstanding shares, which represent a value of MXN651 million, based on the April 24, 2007 CPO closing price. The company plans to convey the benefits of this buyback to all its shareholders. Such benefits, together with the cash distributions of US$495 million since June 2003, a cancellation of 3% of the company's shares in 2005, and the future distribution of a Grupo Iusacell share for every 97 CPOs of TV Azteca -- as previously announced -- represent an accumulated yield of 41% for the company's shareholders, based on yesterday's closing price for the CPO and the shares of Grupo Iusacell. First Quarter Results Net sales were MXN1,781 million, compared with MXN1,877 million in the same quarter of 2006. Total costs and expenses were MXN1,186 million, from MXN1,181 million in the same period of the previous year. As a result, TV Azteca reported EBITDA of MXN595 million, compared with MXN696 million in the first quarter 2006. The company registered net majority income of MXN179 million, from MXN309 million in the same period of 2006. Net Sales "In addition to the absence of extraordinary events this quarter, the Unefon contract was terminated, as previously announced, which was crucial for the period sales performance," said San Roman. "However, our 39% commercial audience share for the full day during the period and its solid trend continued to generate an unparalleled platform for the most successful ad campaigns." First quarter revenue includes net sales from Azteca America -- the company's wholly-owned broadcast television network focused on the U.S. Hispanic market -- of MXN121 million, 6% higher than MXN114 million in the same period a year ago. TV Azteca also reported programming sales to other countries of MXN24 million, compared with MXN20 million registered in the first quarter 2006. Exports this period were mainly due to sales of the company's novelas "Amor sin Condiciones" y "Se Busca un Hombre", and the program "Lo que Callamos las Mujeres" to several Latin American countries. Barter sales were MXN48 million compared with MXN57 million from the previous year. Inflation adjustment of advertising advances was MXN53 million, compared with MXN46 million for the first quarter of 2006. During the period, the company did not register ad sales to Unefon, while in the first quarter of 2006, such sales were MXN21 million. As previously announced, during the third quarter of 2006, the board of directors approved the cancellation of the ten-year advertising contract with Unefon, which began in 1998. Costs and Expenses Costs and expenses did not show significant changes during the first quarter. This was the result of a combination of programming, production and transmission costs of MXN925 million, compared with MXN922 million in the same period of the previous year, as well as a 1% increase in administrative and selling expenses to MXN261 million, from MXN258 million in the same quarter of 2006. "The stability in costs is the result of the strict control of each of the outlays that relate to content production, while we maintain the highest quality of these productions," said Carlos Hesles, CFO of TV Azteca. "Such stability is even more significant considering the rent payment of our affiliate station in Los Angeles." As previously announced, the company's costs include an increase in the rent payment for the Los Angeles station KAZA TV of US$2.4 million in the quarter, as a result of Azteca America's agreement with Pappas Telecasting. Since July 2006, Azteca America has been making cash payments equivalent to US$9.6 million annually to Pappas Telecasting for the rent of the station, which is operated and managed by Azteca America. The 1% rise in administrative and selling expense reflects increases in personnel, operating and travel expenditures during the period, as a result of a growing business volume in the US. EBITDA and Net Income The net sales reduction in the quarter, combined with total cost and expense stability, generated EBITDA of MXN595 million, compared with MXN696 million in the same quarter of the prior year. Below EBITDA, the company recorded depreciation and amortization of MXN107 million from MXN89 million of the previous year, mainly due to an increase of MXN12 million in the depreciation account, as a result of a higher balance of fixed assets. TV Azteca recorded other expenses of MXN76 million, compared with MXN58 million of the prior year. The main concepts integrating the account were MXN54 million of donations, MXN23 million in legal fees, as well as other income of MXN1 million from the net effect of the recognition of participation, through the equity method, of the losses of Todito Card and Monarcas -- TV Azteca's soccer team -- and amortization of preoperative expenses of Azteca America and other income. Net comprehensive financing cost during the quarter was MXN172 million, compared with MXN169 million in the same period of 2006. Interests paid in the period were MXN192 million, unchanged from the prior year. Other financial expense decreased MXN14 million, mainly due to premiums from early debt amortizations a year ago. Interest income increased MXN11 million, due to a higher average cash balance in the quarter. The company registered a foreign exchange loss of MXN1 million this quarter, compared with a profit of MXN35 million a year ago. This quarter's exchange loss resulted from the combination of a 2% depreciation of the peso against the dollar, and an average net liability position in U.S. dollars in the period. There was a MXN6 million monetary gain due to a liability monetary position this quarter. Provision for income tax was MXN46 million, practically the same as the prior year. Net income of minority stockholders was MXN15 million, compared with MXN23 million a year ago. Net income of minority stockholders represents 50% of Azteca Web's net income, which TV Azteca consolidates in its results, and that belongs to CNCI, owner of half of that company. Net income of majority stockholders in the quarter was MXN179 million, compared with MXN309 million in the same period of 2006. Outstanding Debt As of March 31, 2007, the company's total outstanding debt was MXN7,765 million. TV Azteca's cash balance was MXN1,912 million, resulting in net debt of MXN5,853 million. The total debt to last twelve months (LTM) EBITDA ratio was 1.9 times, and net debt to EBITDA was 1.4 times. LTM EBITDA to net interest expense ratio was 6.3 times. Excluding-for analytical purposes-MXN1,323 million debt due 2069, total debt was MXN6,442 million and total debt to EBITDA ratio was 1.5 times. About TV Azteca TV Azteca (BMV: TVAZTCA) (Latibex: XTZA) is one of the two largest producers of Spanish-language television programming in the world, operating two national television networks in Mexico -- Azteca 13 and Azteca 7 -- through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market, and Todito, an Internet portal for North American Spanish speakers. * * * Moody's Investor Services rated TV Azteca's senior unsecured debt at B1. WENDY'S INTERNATIONAL: Mulls Firm's Sale Due to Drop in Profits --------------------------------------------------------------- Newratings.com reports that a 71% decrease in Wendy's International Inc's quarterly profits has caused the company to consider its possible sale. According to Newratings.com, Wendy's International said its net profits in the three months ended April 1 dropped to US$14.7 million, from US$51.2 million in the same period last year. Meanwhile, the firm's revenues increased 2% to US$590 million in the latest quarter, from US$579 million in the same period in 2006. Newratings.com relates that Wendy's International said its board set up a special committee to review strategic options, including a possible sale of the firm, to increase shareholder value. Wendy's International's share price increased US$4.12, or 12.61%, to US$36.80 on the New York Stock Exchange on April 25, after it disclosed its possible sale, Newratings.com states. Headquartered in Dublin, Ohio, Wendy's International Inc. -- http://www.wendysintl.com/-- and its subsidiaries operate, develop, and franchise a system of quick service and fast casual restaurants in the United States, Canada, Mexico, Argentina, among others. * * * As reported in the Troubled Company Reporter on Oct. 17, 2006, Moody's Investors Service held its Ba2 Corporate Family Rating for Wendy's International Inc. Additionally, Moody's held its Ba2 ratings on the company's US$200 million 6.25% Senior Unsecured Notes Due 2011 and US$225 million 6.2% Senior Unsecured Notes Due 2014. Moody's assigned the debentures an LGD4 rating suggesting noteholders will experience a 54% loss in the event of default. WENDY'S INTERNATIONAL: Moody's Reviews Ratings for Likely Cut ------------------------------------------------------------- Moody's Investors Service placed all ratings of Wendy's International, Inc. on review for possible downgrade. The review was prompted by the company's announcement that its board of directors has formed a special committee to investigate all strategic options for Wendy's International to enhance shareholder value. These options, among other things, may include revisions to Wendy's International's strategic plan, changes to its capital structure, a possible sale, merger or other business combination. These ratings were placed on review for possible downgrade; -- Corporate family rating of Ba2 -- Senior unsecured notes rated Ba2/54%/LGD-4 -- Senior unsecured shelf registration rated (P)Ba2/54%/LGD-4 -- Subordinated shelf registration rated (P)Ba3/97%/LGD-6 -- Preferred stock shelf registration rated (P)B1/97%/LGD-6 Moody's review will focus on the potential impact to bondholders that could result from Wendy's International's various strategic initiatives. Headquartered in Dublin, Ohio, Wendy's International Inc. -- http://www.wendysintl.com/-- and its subsidiaries operate, develop, and franchise a system of quick service and fast casual restaurants in the United States, Canada, Mexico, Argentina, among others. WENDY'S INTERNATIONAL: S&P Will Likely Cut Ratings After Review --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings for Wendy's International Inc., including the 'BB+' corporate credit rating, on CreditWatch with negative implications. The CreditWatch placement follows Wendy's International's announcement that its Board of Directors has formed a special committee of independent directors to investigate all strategic options for the company. These options, among other things, may include revisions to the strategic plan, changes to the capital structure, a possible sale, merger, or other business combination. After the company has announced its findings and its future plans," said Standard & Poor's credit analyst Diane Shand, "we could lower ratings if the company undertakes actions that cause deterioration in cash flow protection measures or disadvantages to bondholders." Headquartered in Dublin, Ohio, Wendy's International Inc. -- http://www.wendysintl.com/-- and its subsidiaries operate, develop, and franchise a system of quick service and fast casual restaurants in the United States, Canada, Mexico, Argentina, among others. =========== P A N A M A =========== CHIQUITA BRANDS: Loss Prompts Firm Not To Issue Bonuses in 2006 --------------------------------------------------------------- Cliff Peale at The Enquirer reports that Chiquita Brands International Inc. Chairperson and Chief Executive Officer Fernando Aguirre and other company executives didn't get performance-based bonuses for last year. The Cincinnati Business Courier relates that Chiquita Brands' proxy statement indicated that bonuses were denied because the firm failed to meet net income goals. The Enquirer's Mr. Peale relates that Chiquita Brands lost US$96 million in 2006. Chiquita Brands said in its proxy statement filed with the U.S. Securities and Exchange Commission that Mr. Aguirre's US$795,769 salary increased 6.7% in 2006 from 2005, but he received a bonus of almost US$1.9 million in 2005. The Enquirer's Mr. Peale notes that Mr. Aguirre's total compensation, including stock awards and stock options, was slightly over US$3 million in 2006. The Business Courier relates that Mr. Aguirre took a 29% pay reduction last year. According to The Business Courier, Chiquita Brands had a US$28- million operating loss in 2006 on net sales of US$4.5 billion, compared to a US$188-million operating profit and net sales of US$3.9 billion in 2005. Last year's results included a US$43- million goodwill impairment charge related to its acquisition of Atlanta AG and a US$25-million charge to settle a criminal probe involving protection payments that Chiquita Brands made to Colombian terrorist groups. Mr. Aguirre told Chron.com that the payments made were motivated by concern for the workers' safety. Chiquita Brands' board set earnings goals over a three-year period that will result in the award of just over US$1 million in shares, assuming that the company meets performance targets, The Business Courier states. Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 70 countries including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * Moody's Investors Service downgraded the ratings for Chiquita Brands L.L.C., as well as for its parent Chiquita Brands International, Inc. Moody's said the outlook on all ratings is stable. Standard & Poor's Ratings Services also lowered its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. ======= P E R U ======= * PERU: Block 129 Exploration & Dev. Pact with Burlington Okayed ---------------------------------------------------------------- Peru's government told Dow Jones Newswires that it has ratified an exploration and development contract for block 129, which is in the Loreto department, with Burlington Resources Peru Ltd. Dow Jones relates that Peru is working to boost its oil and natural gas output, which has been bolstered by the launching of the Camisea natural gas project's operations. Burlington Resources is also conducting explorations in other blocks in Peru, Dow Jones states. * * * As reported in the Troubled Company Reporter-Latin America on March 2, 2007, Standard & Poor's Ratings Services assigned its 'BB+' foreign currency credit rating to the Republic of Peru's (BB+/Stable/B foreign, BBB-/Stable/A-3 local currency sovereign credit ratings) US$1.24 billion global bond due in 2037 issued as part of a new liability management operation. ===================== P U E R T O R I C O ===================== ALLIED WASTE: Unit Closes US$56.8-Million Offering of Bonds ----------------------------------------------------------- Allied Waste Industries, Inc.'s wholly-owned subsidiary, Allied Waste North America, Inc., and the Mission Economic Development Corporation in Mission, Texas, successfully completed the offering of US$56.8 million in aggregate principal amount of 5.20% Mission Economic Development Corporation Solid Waste Disposal Revenue Bonds Series 2007A due 2018. "We are pleased to be able to partner with the Mission Economic Development Corporation in Texas," said Pete Hathaway, Executive Vice President and Chief Financial Officer of Allied Waste. "This attractive rate financing promotes continued economically beneficial investment throughout the State of Texas." Allied Waste North America, Inc., a wholly owned operating subsidiary of Allied Waste Industries, Inc., is based in Phoenix, Arizona. Allied Waste is a vertically integrated, non- hazardous solid waste management company providing collection, transfer, and recycling and disposal services for residential, commercial and industrial customers. As of Dec. 31, 2006, the company operated a network of 304 collection companies, 161 transfer stations, 168 active landfills and 57 recycling facilities in 37 states and Puerto Rico. The company had revenues of approximately US$6.0 billion in fiscal 2006. * * * As reported in the Troubled Company Reporter-Latin America on April 04, 2007, Moody's Investors Service assigned B2 (LGD 4, 69%) to the proposed US$50 million Mission Economic Development Corp. Solid Waste Disposal Revenue Bonds Series 2007A due 2018, an Allied Waste North America, Inc. Project. The borrower will be Allied Waste North America, Inc. or Allied Waste NA and the bonds will be unsecured obligations guaranteed by the parent, Allied Waste Industries, Inc. Concurrently, Moody's affirmed other ratings of Allied Waste, Allied Waste NA and its wholly owned subsidiary, Browning-Ferris Industries, LLC. The outlook for the ratings remains positive. Moody's took these rating actions: -- assigned a B2 (LGD4, 69%) rating to the proposed US$50 million solid waste disposal revenue bonds series 2007A of Allied Waste NA due 2018; -- affirmed all other ratings of Allied Waste, Allied Waste NA, and Browning-Ferris Industries, LLC as set out in the recent press release dated March 27, 2007. Moody's said the ratings outlook is positive. COVENTRY HEALTH: Signs Definitive Buy Deal with Mutual of Omaha --------------------------------------------------------------- Coventry Health Care, Inc., has signed a definitive agreement to acquire certain group health insurance businesses from Mutual of Omaha. Coventry Health will acquire Mutual of Omaha's commercial employer group health business in Nebraska and Iowa as well as their national Federal Employees Health Benefits or FEHB administration business, representing approximately 215,000 members in total. "I am pleased to announce a significant transaction for our Commercial Business Division," said Thomas P. McDonough, President of Coventry Health. "This acquisition will enhance Coventry's position in both our Nebraska and Iowa local health plan markets and our national FEHB administrative business. We look forward to carrying on Mutual of Omaha's commitment to the local health plan business and their tradition of providing superior service levels to employer groups and federal programs." Coventry Health will acquire Mutual of Omaha's group health insurance businesses for US$120.0 million in an all-cash transaction expected to close in 60 to 120 days, subject to closing conditions, regulatory and other customary approvals. The Nebraska and Iowa group health business, including both fully-insured and self-funded customers, represents approximately 100,000 members and approximately US$100 million in revenue. The FEHB business represents approximately 115,000 members and approximately US$30 million in fee-based revenue. The transaction is projected to be slightly accretive to earnings in the first year after closing. Headquartered in Bethesda, Maryland, Coventry Health Care, Inc. (NYSE: CVH) -- http://www.cvty.com/-- is a national managed health care company operating health plans, insurance companies, network rental/managed care and workers' compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services, including HMO, PPO, POS, Medicare Advantage, Medicare Prescription Drug Plans, Medicaid, Workers' Compensation services and Network Rental to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators in all 50 states as well as the District of Columbia and Puerto Rico. * * * As reported in the Troubled Company Reporter-Latin America on March 21, 2007, Fitch Ratings has upgraded the Issuer Default Rating of Coventry Health Care Inc. to 'BBB' from 'BB+'. Existing senior notes are also upgraded to 'BBB-' from 'BB'. Fitch also assigns a 'BBB-' rating to Coventry's recent issuance of US$400 million of 5.95% senior unsecured notes. The Rating Outlook is Stable. A.M. Best Co. has assigned a debt rating of "bb+" to Coventry Health Care, Inc.'s US$400 million 5.95% senior unsecured notes, which will mature in 2017. The rating outlook is positive. Coventry Health's and its subsidiaries' financial strength, issuer credit and remaining debt ratings are unchanged. As reported in the Troubled Company Reporter-Latin America on March 19, 2007, Moody's Investors Service has assigned a Ba1 senior unsecured debt rating to Coventry Health Care, Inc.'s (NYSE: CVH) issuance of $400 million of new long term debt. Moody's said the outlook on the rating is positive. DELTA AIR: S&P Keeps D Rating Until After Chapter 11 Emergence -------------------------------------------------------------- Standard & Poor's Ratings Services said that Delta Air Lines Inc.'s plan of reorganization does not affect its 'D' corporate credit rating on the company, which is defined by the company's bankruptcy status. Delta Air's reorganization plan was confirmed by the bankruptcy court overseeing its Chapter 11 proceedings last Wednesday, paving the way for emergence on April 30. Standard & Poor's announced on March 30, 2007, that it expect to assign a 'B' corporate credit rating, with a stable outlook, to Delta Air when it emerges from bankruptcy. In addition, the CreditWatch status of ratings on enhanced equipment trust certificates or EETCs, excepting 'AAA' rated, bond-insured certificates, was revised to positive from developing on March 30, 2007. That CreditWatch status is unaffected by the plan confirmation. The ratings on EETCs will be reviewed and may be raised upon Delta Air's emergence from Chapter 11. "Delta's relatively rapid and successful reorganization should leave the airline with lower operating costs, improving revenue generation, and a reduced debt load," said Standard & Poor's credit analyst Philip Baggaley. Still, the airline's credit profile and its anticipated 'B' corporate credit rating continue to reflect also risks associated with participation in the price-competitive, cyclical, and capital-intensive airline industry; on below-average, albeit improving, revenue generation; and on significant intermediate-term debt and capital spending commitments. Delta, the third-largest U.S. airline, entered Chapter 11 bankruptcy protection in September 2005, following the spike in jet fuel prices caused by the Gulf hurricanes. Delta announced April 16, 2007, that unsecured creditors had voted in favor of its proposed plan of reorganization. Headquartered in Atlanta, Ga., Delta Air Lines (OTC:DALRQ) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. The airline also serves Puerto Rico and the U.S. Virgin Islands. Plan Update The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. Delta announced April 16, 2007, that unsecured creditors had voted in favor of its proposed plan of reorganization. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: 5.25% Bond Yields Soar ---------------------------------------------- Guillermo Parra-Bernal at Bloomberg News reports that Venezuelan state-owned oil firm Petroleos de Venezuela SA's bond yields continued to rise as local investors progressively sold the dollar-denominated securities in international markets to get foreign currency. According to Mr. Parra-Bernal at Bloomberg News, the Composite Bloomberg Bond Trader said that the yield on Petroleos de Venezuela's 5.25% bond due April 2017 increased 2 basis points, or 0.02 percentage point, to 7.63% on April 27. The bond's price dropped 12.5 cents to US$83.60. Bloomberg News' Mr. Parra-Bernal relates that Venezuelan investors have limited access to dollars at the government-set official exchange rate. They are selling the 10-, 20- and 30- year Petroleos bonds for dollars. According to traders, the pace of the sales accelerated last week, indicating the need for the U.S. currency by individuals, importers and manufacturers who bought the bond earlier in April. Caracas-based Global Capital Valores Henry Travieso told Bloomberg News' Mr. Parra-Bernal, "The sell-off is coming rather strong at this point. There's no doubt now that the Petroleos bond was a short-term palliative for the dearth of dollars in the country." Mr. Parra-Bernal at Bloomberg News notes that Venezuela's currency dropped for a third day, emphasizing an increase in purchases of dollars by firms and investors. The bolivar weakened to VEB3,770 to the dollar in unregulated trading on Friday, from VEB3,750 on Thursday. The Petroleos de Venezuela 2017 bonds yield 69 basis points above the Venezuelan government dollar bonds maturing in 2018. Mr. Parra-Bernal at Bloomberg News says that Lehman Brothers Inc. forecasted that the cost of default insurance on Petroleos de Venezuela bonds will rise as Venezuelan President Hugo Chavez's takeover of the four Orinoco joint-venture projects threatens to burden the firm with defaulted debt. The report notes that Lehman Brothers economists Joe Kogan and Andres Pardo stated that President Chavez said he will take over the heavy-oil ventures from private companies by May 1 and hand over control to Petroleos de Venezuela. The change in ownership may provoke holders of the projects' bonds to declare default, which could trigger payment on Petroleos de Venezuela credit default swaps. Mr. Kogan told Bloomberg News' Mr. Parra-Bernal, "Depending on what bondholders do, there are scenarios under which it becomes PDVSA debt or causes credit default swaps to trigger. It's very hard to know how creditors will respond to this, but clearly this expropriation is a default because it violates a whole number of the covenants." Messrs. Kogan and Pardo said in a report that the price of buying credit protection on US$10 million of Petroleos de Venezuela 10-year bonds may increase to as much as US$133,000 more than protection on similar-maturity Venezuelan government swaps. According to them, that spread was US$33,000 as of April 24. Credit-default swaps are financial instruments based on bonds and loans used to analyze the ability of the debtor to pay, Bloomberg News' Mr. Parra-Bernal 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. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. PETROLEOS DE VENEZUELA: To Launch Delta Caribe Offshore Auction --------------------------------------------------------------- Venezuelan Energy and oil minister and state-run oil company Petroleos de Venezuela SA president Rafael Ramirez told Business News Americas that the firm will launch the Delta Caribe offshore bidding round after it takes over several extra-heavy crude oil projects in the Orinoco and Amacuro Delta. According to BNamericas, Delta Caribe includes three blocks near La Blanquilla and a block between the Orinoco river delta and Trinidad & Tobago. It was initially due for awarding Nov. 28. Minister Ramirez explained to BNamericas that the government continue implementing plans on Delta Caribe once it has completed the nationalization process. Delta Caribe could be revitalized before the end of 2007. The government wants to complete the nationalization by May 1. The government will present the new Petroleos de Venezuela- dominated joint ventures to the pro-government national assembly by June 26, 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. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. * VENEZUELA: Ministry to Provide Tools to Generation Plants ----------------------------------------------------------- The Venezuelan energy and oil ministry said in a statement that it plans to provide new tools to all generation plants that burn diesel and other liquid fuels from 2009-12 to operate on natural gas. Business News Americas relates that the plan is part of the phase three of the "energy revolution," a fuel-saving campaign that Venezuela's President Hugo Chavez started in November 2006. The program would help Venezuela save on liquid fuels it could sell abroad, BNamericas notes, citing analysts. Figures from Caveinel, a group of electric firms, showed that almost 40% of thermo generation in Venezuela operates on diesel, fuel oil and other liquid fuels, BNamericas says. According to BNamericas, Venezuela generates 89,412 giga watt- hours, of which 29,877 giga watt-hours is thermo. The thermo plants use up 62.9 million barrels of oil equivalent per year, of which 59.2% is natural gas. Vicente Sanchez, an expert in power distribution who does consulting work in Caracas, commented to BNamericas, "A gas- fueled plant also is cheaper to upkeep. But the question is, do we have enough gas for the plan?" The report says that Venezuela has a natural gas deficit. It will begin importing from Colombia as soon as the natural gas pipeline between countries is completed. Phase one concluded last week. It involved replacing 53 million incandescent light bulbs with high-efficiency ones, the ministry told BNamericas. * * * Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * VENEZUELA: Inks Deal with Int'l Oil Firms Over Orinoco Stakes --------------------------------------------------------------- Major international oil companies have agreed to cede to the Venezuelan government control over four heavy-crude projects in the Orinoco oil belt, the Associated Press reports. Venezuelan President Hugo Chavez issued a decree last month that the government will hold majority stakes in the Orinoco River basin projects beginning May 1. Venezuelan Energy Minister Rafael Ramirez told the AP that ConocoPhillips Co. had yet to sign a memorandum of understanding while Exxon Mobile Corp. previously signed one of the agreements. Mr. Ramirez commented that if ConocoPhillips won't sign by May 1, the state will take charge of its oil fields as Venezuela moves to impose majority state control, Miami Herald relates. According to Houston Chronicle, aside from Mr. Ramirez, company officials of Chevron, BP, France's Total and Norway's Statoil have signed contracts to commence turning over a majority stake of the oil projects in the Orinoco River basin to the state. Meanwhile, President Chavez has decreed that state firm Petroleos de Venezuela SA will hold a minimum 60% stake in the projects in the Orinoco River region and invited private companies operating there to stay on as minority partners, Houston Chronicle adds. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. Fitch said the outlook on the ratings remains stable. * BOOK REVIEW: Treatise on the Right of Property in Tide Waters --------------------------------------------------------------- Author: Joseph K. Angell Publisher: Beard Books Paperback: 440 pages List Price: $34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/158798105X/internetbankru pt Jospeh Angell's A Treatise on the Right of Property in Tide Waters has been widely received as a leading authority on this topic both in the United States and in England. This was the first detailed work published in the United States concerning principles which relate to the right of property in tide waters, i.e., those waters in which there is an ebbing and flowing of the tide. There is a broad scope of topics covering such areas as the development of common law doctrines, the right of fishery, delimitation, the right to seaweed, rights acquired by prescription and custom, statutes and usage, adjoining owner rights, and wrecked property thrown on the shore. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande delos Santos, Christian Toledo, and Junald Ango, Editors. Copyright 2007. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *