/raid1/www/Hosts/bankrupt/TCRLA_Public/070501.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
Tuesday, May 1, 2007, Vol. 8, Issue 85
Headlines
A R G E N T I N A
AUTOPLAN SA: Proofs of Claim Verification Is Until June 9
COLONGE VIAJES: Trustee To File Individual Reports Tomorrow
ELEMCO SA: Creditors To Vote on Settlement Plan Tomorrow
FACYA SAIC: Proofs of Claim Verification Deadline Is June 19
FORTUNA SEGURIDAD: Trustee To File General Report Tomorrow
GRUPO SEGURCITY: Proofs of Claim Verification Ends on June 11
INTERNATIONAL COURIER: Individual Reports Filing Is Tomorrow
KONINKLIJKE AHOLD: Buys Back EUR110 Million Bonds to Cut Debt
LUISA ELVIRA: Seeks Reorganization Approval in Court
LUNA CALLEGARI: Proofs of Claim Verification Is Until June 14
PENTA PACK: Trustee To File Individual Reports on July 20
PLAZA SERRANO: Trustee To File General Report in Court Tomorrow
SEMILLAS FORRAJERAS: Claims Verification Deadline Is June 11
TELECOM ARGENTINA: Appoints Carlos Felices as Chairperson
UNION CRAFT: Trustee To File General Report in Court Tomorrow
WENDY'S INT'L: Earnings Plummet to US$14.7M in Qtr. Ended Apr. 1
YELBRICH SA: Trustee To File Individual Reports on July 10
ZEOX SA: Creditors To Vote on Settlement Plan Tomorrow
B A H A M A S
HARRAH'S ENTERTAINMENT: Declares US$0.40 Per Share Cash Dividend
B E R M U D A
EBP RE: Supreme Court Will Hear Wind-Up Petition on May 18
LAWRENCEVILLE RE: Final General Meeting Is Set for June 6
LAWRENCEVILLE RE: Proofs of Claim Filing Ends on June 6
PECTEN EXPORT: Final General Meeting Is Set for May 31
PECTEN EXPORT: Proofs of Claim Filing Is Until May 14
UNB IP: Final General Meeting Is Set for May 28
UNB IP: Proofs of Claim Filing Is Until May 9
UNB IP 220 : Final General Meeting Is Set for May 28
UNB IP 220: Proofs of Claim Filing Deadline Is May 9
NIPPON CAPITAL: Will Hold Final General Meeting on May 31
NIPPON CAPITAL: Proofs of Claim Filing Is Until May 9
B O L I V I A
BANCO BISA: Moody's Raises Bank Financial Strength Rating to D-
BANCO MERCANTIL: Moody's Ups Bank Financial Strength Rating to D
BANCO SOLIDARIO: Moody's Ups Bank Financial Strength Rating to D
B R A Z I L
BANCO NACIONAL: Grants BRL9.2-Million Loan to Sistema Brasileiro
BENQ CORP: Mobile Unit Posts Sixth Straight Quarterly Loss
BENQ CORP: Eric Yu Still Detained Amidst Insider Trading Probe
COMMSCOPE INC: Earns US$45.9 Million for First Quarter 2007
HAYES LEMMERZ: Plans US$150 Million of Senior Notes Offering
MRS LOGISTICA: Planned Sao Paulo Rail Ring Ready by 2010
NRG ENERGY: Inks Deal with TEPCO to Expand South Texas Project
PETROLEO BRASILEIRO: Inks Four Rig Contracts with BCH Ltd.
PETROLEO BRASILEIRO: Will Lease Sao Paulo Plant for 17 Years
RBS PARTICIPACOES: Better Liquidity Cues S&P to Up Rating to BB-
TIMKEN COMPANY: Posts US$42 Million First Quarter Income in 2007
C A Y M A N I S L A N D S
AKATSUKI CAPITAL: Will Hold Final Shareholders Meeting on May 18
ALBA CAPITAL: Sets Final Shareholders Meeting for May 17
ARRAN PARTNERS: Will Hold Final Shareholders Meeting on May 17
ARRAN PARTNERS INT'L: Sets Final Shareholders Meeting for May 17
EOS SECTOR: Will Hold Final Shareholders Meeting on May 17
ESS MASTER: Sets Final Shareholders Meeting for May 17
FAIRFIELD FUND: Proofs of Claim Filing Ends on May 17
FAIRFIELD FUND: Proofs of Claim Filing Is Until May 17
MILTON INT'L: Sets Final Shareholders Meeting for May 17
C H I L E
GOODYEAR TIRE: March 31 Balance Sheet Upside-Down by US$90 Mil.
C O L O M B I A
TOWER RECORDS: Can Assume & Assign IP Contracts to Caiman Hldgs.
C O S T A R I C A
BETCASCADE: Withdrawal of Financial Support Leads to Bankruptcy
SMURFIT KAPPA: Debt Prepayment Spurs Fitch to Hike Ratings to BB
D O M I N I C A N R E P U B L I C
BANCO INTERCONTINENTAL: Cayman Lawyers to Probe Ex-Pres.' Yacht
GENERAL CABLE: Creates Two Joint Ventures in India
OCHOA BANK: Monetary Board Orders Bank's Closure & Liquidation
E C U A D O R
* ECUADOR: Declares Eduardo Somensatto as Persona Non Grata
E L S A L V A D O R
TARGUS GROUP: Moody's Junks Rating on US$85MM Secured Term Loan
H A I T I
BASIC ENERGY: Will Build Haitian Plant with Dominican Partners
J A M A I C A
NATIONAL COMMERCIAL: Earns US$1.6 Billion in Second Quarter 2007
NATIONAL WATER: St. Elizabeth Wants Explanation on Poor Service
* JAMAICA: Will Finalize Accord on Railway Corp.'s Privatization
M E X I C O
DAIMLERCHRYSLER AG: Chrysler Sale May Sabotage Marysville Deal
DELTA AIR: Exit Chap. 11 with US$2.5 Billion Financing Facility
FORD MOTOR: Posts US$282 Million Net Loss in First Quarter 2007
GENERAL MOTORS: Halts Vehicle Development Programs in Two Plants
GRUPO IUSACELL: Post MXN1.2 Bil. Net Loss in 2007 First Quarter
P A N A M A
BANCO LATINOAMERICANO: Moody's Lifts Fin'l Strength Rating to D+
P E R U
DOE RUN: La Oroya Miners Join Nationwide Strike
GRUPO MEXICO: Peruvian Unit Faces Nationwide Mining Strike
P U E R T O R I C O
GAMESTOP CORP: Earns US$158.3 Million for Year Ended February 3
SALLY BEAUTY: Picks Gregory Coffey as New Vice Pres. & Treasurer
V E N E Z U E L A
ARVINMERITOR INC: Board Declares 10 Cents Per Share Dividend
DAIMLERCHRYSLER AG: UAW Doesn't Favor Magna as Chrysler's Buyer
FERRO CORP: Paying 14.5 Cents Per Share Dividend Due June 8
- - - - -
=================
A R G E N T I N A
=================
AUTOPLAN SA: Proofs of Claim Verification Is Until June 9
---------------------------------------------------------
Elisa Esther Tomattis, the court-appointed trustee for Autoplan
S.A. de Ahorro Para Fines Determinados' bankruptcy proceeding,
verifies creditors' proofs of claim until June 9, 2007.
Ms. Tomattis will present the validated claims in court as
individual reports on Aug. 7, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Autoplan 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 Autoplan's accounting
and banking records will be submitted in court on
Sept. 19, 2007.
Ms. Tomattis is also in charge of administering Autoplan's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Autoplan S.A. de Ahorro Para Fines Determinados
Suipacha 658
Buenos Aires, Argentina
The trustee can be reached at:
Elisa Esther Tomattis
Avenida Callao 215
Buenos Aires, Argentina
COLONGE VIAJES: Trustee To File Individual Reports Tomorrow
-----------------------------------------------------------
Lia Stella Maris Alvarez, the court-appointed trustee for
Colonge Viajes SA's bankruptcy proceeding, will present
creditors' validated claims as individual reports in the
National Commercial Court of First Instance in Buenos Aires on
May 2, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Colonge Viajes and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Alvarez verified creditors' proofs of claim until
March 20, 2007.
Ms. Alvarez will also submit to court a general report
containing an audit of Colonge Viajes' accounting and banking
records on June 14, 2007.
Ms. Alvarez is also in charge of administering Colonge Viajes'
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Lia Stella Maris Alvarez
Cerrito 146
Buenos Aires, Argentina
ELEMCO SA: Creditors To Vote on Settlement Plan Tomorrow
------------------------------------------------------
Elemco S.A., a company under reorganization, will present a
settlement plan to its creditors on May 2, 2007.
Bernardino Kopcow, the court-appointed trustee for Elemco's
reorganization proceeding, submitted individual reports in court
on Sept. 15, 2006. The individual reports were based on
creditors' claims that Mr. Kopcow verified until July 21, 2006.
The National Commercial Court of First Instance No. 18 in Buenos
Aires determined the verified claims' admissibility, taking into
account the trustee's opinion and the objections and challenges
raised by Elemco and its creditors.
Mr. Kopcow also presented a general report containing an audit
of Elemco's accounting and banking records in court on
Oct. 27, 2006.
Clerk No. 35 assists the court on this case.
The debtor can be reached at:
Elemco S.A.
Adolfo Asina 815
Buenos Aires, Argentina
The trustee can be reached at:
Bernardino Kopcow
Lavalle 1527
Buenos Aires, Argentina
FACYA SAIC: Proofs of Claim Verification Deadline Is June 19
------------------------------------------------------------
Alicia Rita Romeo, the court-appointed trustee for Facya
S.A.I.C.'s bankruptcy proceeding, verifies creditors' proofs of
claim until June 19, 2007.
Ms. Romeo will present the validated claims in court as
individual reports on Aug. 16, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Facya 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 Facya's accounting
and banking records will be submitted in court.
Infobae did not state the general report submission date.
Ms. Romeo is also in charge of administering Facya's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Grupo Segurcity S.A.
Acoyte 1360
Buenos Aires, Argentina
The trustee can be reached at:
Alicia Rita Romeo
Rodriguez Pena 694
Buenos Aires, Argentina
FORTUNA SEGURIDAD: Trustee To File General Report Tomorrow
----------------------------------------------------------
Nora Mabel Pszemiarower, the court-appointed trustee for Fortuna
Seguridad SRL's bankruptcy proceeding, will submit to court a
general report containing an audit of the company's accounting
and banking records on May 2, 2007.
Ms. Pszemiarower verified creditors' proofs of claim until
Feb. 28, 2006. She then presented the validated claims in court
as individual reports on March 14, 2007. The National
Commercial Court of First Instance No. 14 in Buenos Aires
determined the verified claims' admissibility, taking into
account the trustee's opinion and the objections and challenges
raised by Fortuna Seguridad and its creditors.
Clerk No. 28 assists the court in the case.
The debtor can be reached at:
Fortuna Seguridad SRL
Ciudad de la Paz 2544
Buenos Aires, Argentina
The trustee can be reached at:
Nora Mabel Pszemiarower
Avenida Corrientes 1257
Buenos Aires, Argentina
GRUPO SEGURCITY: Proofs of Claim Verification Ends on June 11
-------------------------------------------------------------
Isabel A. Ramirez, the court-appointed trustee for Grupo
Segurcity S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until June 11, 2007.
Ms. Ramirez will present the validated claims in court as
individual reports on Aug. 8, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Grupo Segurcity 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 Grupo Segurcity's
accounting and banking records will be submitted in court on
Sept. 20, 2007.
Ms. Ramirez is also in charge of administering Grupo Segurcity's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Grupo Segurcity S.A.
Acoyte 1360
Buenos Aires, Argentina
The trustee can be reached at:
Isabel A. Ramirez
Tte. Gral. Juan D. Peron 2082
Buenos Aires, Argentina
INTERNATIONAL COURIER: Individual Reports Filing Is Tomorrow
------------------------------------------------------------
Miguel Angel Loustau, the court-appointed trustee for The
International Courier SRL's bankruptcy proceeding, will present
creditors' validated claims as individual reports in the
National Commercial Court of First Instance in Buenos Aires on
May 2, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by The International Courier and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Loustau verified creditors' proofs of claim until
March 1, 2007.
Mr. Loustau will also submit to court a general report
containing an audit of The International Courier's accounting
and banking records on June 13, 2007.
Mr. Loustau is also in charge of administering The International
Courier's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Miguel Angel Loustau
Viamonte 993
Buenos Aires, Argentina
KONINKLIJKE AHOLD: Buys Back EUR110 Million Bonds to Cut Debt
-------------------------------------------------------------
Koninklijke Ahold N.V. has repurchased, to a total principal
notional amount of approximately EUR110 million, these notes and
bonds, as part of the company's debt reduction strategy.
-- an aggregate principal notional amount, of approximately
EUR94 million of seven year notes due May 9, 2008 (issue
details: coupon 5.875%, issue size of EUR1.5 billion
under the EUR5 billion Euro Medium Term Note Program, ISIN
code XS0128973590 and common code 012897359) referred to
as the "May 2008 Notes", a part of which, approximately
EUR437 million, had been repurchased as announced on
Oct. 20, 2005; and
-- an aggregate principal notional amount of approximately
NLG35 million (EUR16 million) of ten-year bonds due
Dec. 19, 2007 (issue details: coupon 5.875%, issue size of
NLG300 million (EUR136 million) and ISIN code NL
0000121838), referred to as the "December 2007 Bonds.
The repurchased notes and bonds, representing approximately 8.9%
of the outstanding amount of the May 2008 Bonds and
approximately 11.6% of the December 2007 Bonds will be
cancelled. The buyback and cancellation will leave an
outstanding amount of approximately EUR969 million of the May
2008 Notes and an outstanding amount of approximately NLG265
million (EUR120 million) of the December 2007 Bonds.
About Ahold
Headquartered in Amsterdam, Koninklijke Ahold N.V. --
http://www.ahold.com/-- retails food through supermarkets,
hypermarkets and discount stores in North and South America,
Europe. It has operations in Argentina. The company's chain
stores include Stop & Shop, Giant, TOPS, Albert Heijn and
Bompreco. Ahold also supplies food to restaurants, hotels,
healthcare institutions, government facilities, universities,
stadiums, and caterers.
* * *
As reported on Dec. 22, 2006, Standard & Poor's Ratings Services
revised its outlook on the Dutch food retailer and food service
distributor Koninklijke Ahold N.V. to positive from stable. At
the same time, the 'BB+/B' long- and short-term corporate credit
ratings were affirmed.
Moody's Investors Service and Standard and Poor's has assigned
low-B ratings to the company's 5.625% senior notes due 2007.
Also, the company's 5.875% senior unsubordinated notes due 2008
and 6.375% senior unsubordinated notes due 2007 carry Moody's,
S&P's and Fitch's low-B ratings.
LUISA ELVIRA: Seeks Reorganization Approval in Court
----------------------------------------------------
Luisa Elvira Acosta S.R.L. has requested for reorganization
approval from the National Commercial Court of First Instance in
Buenos Aires after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Luisa Elvira to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
The debtor can be reached at:
Luisa Elvira Acosta S.R.L.
Mosconi 2627
Buenos Aires, Argentina
LUNA CALLEGARI: Proofs of Claim Verification Is Until June 14
-------------------------------------------------------------
Oscar Chapiro, the court-appointed trustee for Luna Callegari
S.A.C.I.F.M. y S.'s bankruptcy proceeding, verifies creditors'
proofs of claim until June 14, 2007.
Mr. Chapiro will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Luna
Callegari 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 Luna Callegari's
accounting and banking records will be submitted in court.
Infobae did not state the reports submission date.
Mr. Chapiro is also in charge of administering Luna Callegari's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Oscar Chapiro
Virrey del Pino 1739
Buenos Aires, Argentina
PENTA PACK: Trustee To File Individual Reports on July 20
---------------------------------------------------------
Eduardo Ruben Pronsky, the court-appointed trustee for Penta
Pack S.R.L.'s bankruptcy proceeding, will present creditors'
validated claims as individual reports in the National
Commercial Court of First Instance No. 2 in Buenos Aires on
July 20, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Penta Pack and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
As reported in the Troubled Company Reporter-Latin America on
March 30, 2007, Mr. Pronsky verifies creditors' proofs of claim
until June 6, 2007.
Mr. Pronsky will also submit to court a general report
containing an audit of Penta Pack's accounting and banking
records on Sept. 17, 2007.
Clerk No. 3 assists the court on this case.
The debtor can be reached at:
Penta Pack SRL
Salvador Maria del Carril 4177
Buenos Aires, Argentina
The trustee can be reached at:
Eduardo Ruben Pronsky
Parana 480
Buenos Aires, Argentina
PLAZA SERRANO: Trustee To File General Report in Court Tomorrow
---------------------------------------------------------------
Ana Maria Varela, the court-appointed trustee for Plaza Serrano
SA's bankruptcy proceeding, will submit to court a general
report containing an audit of the company's accounting and
banking records on May 2, 2007.
Ms. Varela verified creditors' proofs of claim until
Feb. 1, 2007. She then presented the validated claims in court
as individual reports on March 15, 2007. The National
Commercial Court of First Instance in Buenos Aires determined
the verified claims' admissibility, taking into account the
trustee's opinion and the objections and challenges raised by
Plaza Serrano and its creditors.
Ms. Valera is also in charge of administering Plaza Serrano's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Ana Maria Valera
Talcahuano 768
Buenos Aires, Argentina
SEMILLAS FORRAJERAS: Claims Verification Deadline Is June 11
------------------------------------------------------------
Pablo Daniel Exposito, the court-appointed trustee for Semillas
Forrajeras S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until June 11, 2007.
Mr. Exposito will present the validated claims in court as
individual reports on Aug. 8, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Semillas Forrajeras 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 Semillas Forrajeras'
accounting and banking records will be submitted in court on
Sept. 20, 2007.
Mr. Exposito is also in charge of administering Semillas
Forrajeras' assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Pablo Daniel Exposito
Avenida Cordoba 859
Buenos Aires, Argentina
TELECOM ARGENTINA: Appoints Carlos Felices as Chairperson
---------------------------------------------------------
Telecom Argentina said in a statement that it has named Carlos
Felices as its chairperson.
As reported in the Troubled Company Reporter-Latin America on
April 19, 2007, Telecom Argentina said in a filing with the
Buenos Aires stock exchange that its chairperson Amadeo Vazquez
decided to leave his position to pursue other career goals.
Telecom Argentina said that Mr. Vazquez's activities with
Telecom Argentina would officially stop during the next board
meeting on April 27.
According to Telecom Argentina's statement, Mr. Felices was the
firm's chief executive since 1992. Mr. Felices was responsible
for the company's debt restructuring, considered the biggest
private debt in Argentina.
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'.
UNION CRAFT: Trustee To File General Report in Court Tomorrow
-------------------------------------------------------------
Domingo Vicente Marinkovic, the court-appointed trustee for
Union Craft S.A.'s bankruptcy proceeding, will submit to court a
general report containing an audit of the company's accounting
and banking records on May 2, 2007.
Mr. Marinkovic verified creditors' proofs of claim until
Feb. 1, 2006. He filed the validated claims in court as
individual reports on March 15, 2007. The National Commercial
Court of First Instance in Buenos Aires determined the verified
claims' admissibility, taking into account the trustee's opinion
and the objections and challenges raised by Union Craft and its
creditors.
The trustee can be reached at:
Domingo Vicente Marinkovic
Fray Justo Santa Maria de Oro 2381
Buenos Aires, Argentina
WENDY'S INT'L: Earnings Plummet to US$14.7M in Qtr. Ended Apr. 1
----------------------------------------------------------------
Wendy's International Inc. disclosed that for the first quarter
ended April 1, 2007, the company recorded a net income of
US$14.69 million compared to US$51.23 million in the same
quarter of 2006.
At April 1, 2007, the company's balance sheet total assets of
US$1.80 billion, total liabilities of US$1.06 billion and total
stockholders' equity of 0US$.74 billion.
The company's first-quarter 2007 reported results from
continuing operations include the impact of:
* a US$522.9 million sales compared to US$513.4 million in
the first quarter of 2006, the increase is due primarily to
higher same-store sales in U.S. restaurants compared to
negative same-store sales a year ago;
* a US$67.2 million Franchise revenues compared to US$65.2
million in the first quarter of 2006;
* a US$324.1 million cost of sales compared to US$329.7
million in the first quarter of 2006, a 2.2% improvement as
a percentage of sales due to positive same-store sales,
lower commodity costs, particularly beef, well as a
favorable change in product mix toward higher-margin
products and better food cost management;
* a US$152.4 million company restaurant operating costs,
compared to US$149.9 million in the first quarter of 2006,
the improvement is due to leverage from positive same-store
sales, partially offset by some cost increases. The
accounting for the joint venture with Tim Hortons resulted
in a 0.2% increase in company restaurant operating costs
during the first quarter of 2007;
* a US$3.9 million operating costs compared to US$19.8
million in the first quarter of 2006, the improvement is
due primarily to US$15 million in incremental pretax
advertising expense for Wendy's in the first quarter of
2006 that did notrecur in 2007;
* a US$50.8 million general and administrative expense,
compared to US$55.3 million in the first quarter of 2006,
the improvement is caused by lower salaries and benefits as
a result of the elimination of 355 full-time positions in
2006, in addition to reduced consulting and professional
services expenses. Partly offsetting these reductions were
higher stock compensation expense and a higher accrual for
performance-based incentive payments, as the company
expects to pay bonuses commensurate with improved operating
results in 2007;
* a US$2.3 million of expense in the first quarter of 2007,
compared to US$6.6 million of income in the first quarter
of 2006, the change is due primarily to approximately
US$3 million in incremental store closure charges in the
first quarter of 2007 and the absence of approximately
US$4 million in asset gains on the sale of Wendy's
Properties in the first quarter of 2006 that did not recur
in the first quarter of 2007;
* a US$6.8 million of net interest expense in the first
quarter of 2007, compared to US$7 million of net interest
expense in the first quarter of 2006;
* an effective tax rate was 33.5% in the first quarter of
2007, taxes benefited EPS in 2006 when the company reported
a net loss;
* a lower share count of 95.7 million average shares in the
first quarter of 2007 compared to 114.7 million average
shares in the first quarter of 2006; and
* a joint venture with Tim Hortons which resulted in an
overall reduction to first-quarter 2007 operating income of
US$1.8 million compared to the first quarter 2006.
Options To Enhance Shareholder Value
The company disclosed that its board of directors, acting
unanimously, has formed a special committee of independent
directors to investigate all strategic options for Wendy's.
These options, among other things, may include revisions to the
company's strategic plan, changes to its capital structure, a
possible sale, merger or other business combination. Chairman
of the board, James V. Pickett will lead the committee.
"The company has made progress executing its strategic plan,"
Pickett said. "The board's formation of the special committee
is a positive step in Wendy's continuing efforts to further
enhance value for its shareholders, franchisees and other
stakeholders."
The company does not intend to provide periodic updates
regarding the special committee's actions, but will report
specific developments as circumstances warrant. There is no
assurance that the process will result in any changes to the
company's current plans. Certain strategic alternatives could
affect the company's earnings guidance.
"There is no specific timeframe to complete the review and there
are no constraints on options to be explored by the committee,"
Pickett said. "A number of stakeholders have offered
suggestions about strategies to improve performance and create
additional value. The special committee will review strategic
options while management continues to focus on executing Wendy's
current strategic plan to revitalize the brand and improve
results at every restaurant in the system."
Share Repurchase
During the quarter, the company concluded its accelerated share
repurchase transaction. The company repurchased 9 million
shares in the transaction at an initial purchase price of
US$31.33 per share. The repurchased shares in the ASR are
subject to a future contingent-purchase price adjustment
expected to be settled in the second or third quarter of 2007.
Including all repurchase activity to date, 4 million shares
currently remain under the board authorization, which is also
the amount remaining under the Internal Revenue Service ruling
related to the tax-free spin-off of Tim Hortons in September
2006.
117th Consecutive Dividend
The board approved a quarterly dividend of 12.5 cents per share,
payable May 21 to shareholders of record as of May 7. The
dividend payment will represent the company's 117th consecutive
dividend.
The company completed its spinoff of Tim Hortonsr in the third
quarter of 2006 and completed the sale of Baja Freshr Mexican
Grill during the fourth quarter of 2006. During the fourth
quarter of 2006, the company also approved the prospective sale
of Cafe Express. Accordingly, the after-tax operating results
of Tim Hortons, Baja Fresh and Cafe Express now appear in the
"Discontinued Operations" line on the income statement.
About Wendy's International
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.
YELBRICH SA: Trustee To File Individual Reports on July 10
----------------------------------------------------------
Graciela Marta Lema de Muino, the court-appointed trustee for
Yelbrich S.A.'s bankruptcy proceeding, will present creditors'
validated claims as individual reports in the National
Commercial Court of First Instance No. 20 in Buenos Aires on
July 10, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Yelbrich and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
As reported in the Troubled Company Reporter-Latin America on
April 18, 2007, Ms. Lema de Muino verifies creditors' proofs of
claim until May 29, 2007.
Ms. Lema de Muino will also submit to court a general report
containing an audit of Yelbrich's accounting and banking records
on Sept. 4, 2007.
The debtor can be reached at:
Yelbrich SA
Santiago del Estero 250
Buenos Aires, Argentina
The trustee can be reached at:
Graciela Marta Lema de Muino
Basualdo 1064
Buenos Aires, Argentina
ZEOX SA: Creditors To Vote on Settlement Plan Tomorrow
------------------------------------------------------
Zeox S.A., a company under reorganization, will present a
settlement plan to its creditors on May 2, 2007.
Natalio Kinsbrunner, the court-appointed trustee for Zeox's
reorganization proceeding, submitted individual reports in court
on Sept. 14, 2006. The individual reports were based on
creditors' claims that Mr. Kinsbrunner verified until
July 19, 2006. The National Commercial Court of First Instance
in Buenos Aires determined the verified claims' admissibility,
taking into account the trustee's opinion and the objections and
challenges raised by Zeox and its creditors.
Mr. Kinsbrunner also presented a general report containing an
audit of Zeox's accounting and banking records in court on
Oct. 26, 2006.
The debtor can be reached at:
Zeox S.A.
Ramon Freire 2911
Buenos Aires, Argentina
The trustee can be reached at:
Natalio Kinsbrunner
Marcelo T. de Alvear 1671
Buenos Aires, Argentina
=============
B A H A M A S
=============
HARRAH'S ENTERTAINMENT: Declares US$0.40 Per Share Cash Dividend
----------------------------------------------------------------
Harrah's Entertainment Inc.'s Board of Directors declared a
regular quarterly cash dividend of US$0.40 per share, payable
May 23, 2007, to stockholders of record as of the close of
business on May 9, 2007. The shares will begin to trade ex-
dividend on May 7, 2007.
Headquartered in Las Vegas, Nevada, Harrah's Entertainment, Inc.
(NYSE: HET) -- http://www.harrahs.com/-- is a gaming
corporation that owns and operates casinos, hotels, and five
golf courses under several brands on four continents. The
company's properties operate primarily under the Harrah's,
Caesars and Horseshoe brand names; Harrah's also owns the London
Clubs International family of casinos. In January, it signed a
joint venture agreement with Baha Mar Resorts Ltd. to operate a
resort in Bahamas.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Fitch Ratings may downgrade Harrah's
Entertainment Inc.'s aka HET Issuer Default Rating into the 'B'
category from its current 'BB+' rating based on the planned
capital structure for its leveraged buyout or LBO by Apollo
Management and Texas Pacific Group, which was outlined in its
preliminary proxy statement (filed Feb. 8, 2006).
As reported in the Troubled Company Reporter on Dec. 26, 2006,
Standard & Poor's Ratings Services lowered its ratings on
Harrah's Entertainment Inc. and its subsidiary Harrah's
Operating Co. Inc., including its corporate credit rating to
'BB' from 'BB+.
=============
B E R M U D A
=============
EBP RE: Supreme Court Will Hear Wind-Up Petition on May 18
----------------------------------------------------------
The Supreme Court of Bermuda will hear EBP Re, Ltd.'s wind-up
petition -- which the company filed on April 11, 2007 -- on
May 18, 2007, at 9:30 a.m.
Anyone who wants to support or oppose the making of an order on
the petition may appear at the hearing, or let a counsel attend
the hearing on his or her behalf.
Appleby, EBP Re's counsel, will provide a copy of the petition
to any creditor or contributory of the company requesting the
document on payment of the regulated charge.
Any person who intends to appear on the hearing of the petition
must inform Appleby through a notice in writing. The notice
must state the name and address of the person, or, if a firm,
the name and address of the firm, and must be signed by the
person or firm, or his or their attorney (if any), and must be
served, or if posted, must be sent by 4:00 p.m. on May 17, 2007.
EBP Re's counsel can be reached at:
Appleby
Canon's Court
22 Victoria Street
Hamilton HM 12
Bermuda
LAWRENCEVILLE RE: Final General Meeting Is Set for June 6
---------------------------------------------------------
Lawrenceville Re, Limited's final general meeting will be at
9:30 a.m. on June 6, 2007, or as soon as possible, at the
liquidator's place of business.
Lawrenceville Re's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.
The liquidator can be reached at:
Allen D. Wilen
Clarendon House, Church Street
Hamilton, Bermuda
LAWRENCEVILLE RE: Proofs of Claim Filing Ends on June 6
-------------------------------------------------------
Lawrenceville Re, Limited's creditors are given until
June 6, 2007, to prove their claims to Allen D. Wilen, 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.
Lawrenceville Re's shareholders agreed on April 19, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Allen D. Wilen
Clarendon House, Church Street
Hamilton, Bermuda
PECTEN EXPORT: Final General Meeting Is Set for May 31
------------------------------------------------------
Pecten Export Corporation Ltd.'s final general meeting will be
at 9:00 a.m. on May 31, 2007, or as soon as possible, at the
liquidator's place of business.
Pecten Export's shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company and of the liquidator will be
disposed.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
PECTEN EXPORT: Proofs of Claim Filing Is Until May 14
-----------------------------------------------------
Pecten Export Corporation Ltd.'s creditors are given until
May 14, 2007, to prove their claims to Jennifer Y. Fraser, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Pecten Export's shareholders agreed on April 25, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
UNB IP: Final General Meeting Is Set for May 28
-----------------------------------------------
UNB IP 220 Plus Trading Limited's final general meeting will be
at 9:30 a.m. on May 28, 2007, or as soon as possible, at the
liquidator's place of business.
UNB IP's shareholders will determine during the meeting, through
a resolution, the manner in which the books, accounts and
documents of the company and of the liquidator will be disposed.
The liquidator can be reached at:
Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
UNB IP: Proofs of Claim Filing Is Until May 9
---------------------------------------------
UNB IP 220 Plus Trading Limited's creditors are given until
May 9, 2007, to prove their claims to Beverly Mathias, 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.
UNB IP's shareholders agreed on April 20, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
UNB IP 220 : Final General Meeting Is Set for May 28
----------------------------------------------------
UNB IP 220 Plus Limited's final general meeting will be at 9:30
a.m. on May 28, 2007, or as soon as possible, at the
liquidator's place of business.
UNB IP's shareholders will determine during the meeting, through
a resolution, the manner in which the books, accounts and
documents of the company and of the liquidator will be disposed.
The liquidator can be reached at:
Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
UNB IP 220: Proofs of Claim Filing Deadline Is May 9
----------------------------------------------------
UNB IP 220 Plus Limited's creditors are given until May 9, 2007,
to prove their claims to Beverly Mathias, 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.
UNB IP's shareholders agreed on April 20, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
NIPPON CAPITAL: Will Hold Final General Meeting on May 31
---------------------------------------------------------
Nippon Capital I Investments Limited's final general meeting
will be at 9:30 a.m. on May 31, 2007, or as soon as possible, at
the liquidator's place of business.
Nippon Capital's shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company and of the liquidator will be
disposed.
The liquidator can be reached at:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, HM DX
Bermuda
NIPPON CAPITAL: Proofs of Claim Filing Is Until May 9
-----------------------------------------------------
Nippon Capital I Investments Limited's creditors are given until
May 9, 2007, to prove their claims to Robin J. Mayor, 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.
Nippon Capital's shareholders agreed on April 20, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, HM DX
Bermuda
=============
B O L I V I A
=============
BANCO BISA: Moody's Raises Bank Financial Strength Rating to D-
---------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating (BFSR) on Banco Bisa S.A. to D- from
E+, in connection with the rating agency's implementation of its
refined joint default analysis (JDA) and updated BFSR
methodologies for banks in Bolivia.
Banco Bisa's Local Currency deposit rating is upgraded to Ba3
from B2. Its Foreign Currency deposit rating is affirmed at
Caa1. The company's long-term Local Currency deposit rating in
National Scale is raised to Aa1.bo from Aa2.bo and its long-term
Foreign Currency deposit rating in national scale is upgraded to
A1.bo from A2.bo.
Banco Solidario's Local Currency deposit rating is raised to Ba3
from B1. Its Foreign Currency deposit rating is affirmed at
Caa1. The company's long-term local currency deposit rating in
National Scale is upgraded to Aaa.bo from Aa1.bo and its long
term Foreign Currency deposit rating in National Scale is
affirmed at A1.bo.
Moody's completed the review on the ratings of the Bolivian
banks. The BFSRs of four Bolivian banks were upgraded, by one
or two notches, as a result of their improving financial
fundamentals and evolving franchises. The implementation of the
JDA methodology also led to the lift in the local currency
deposit rating of six banks, by one or two notches.
Moody's has assigned support levels to banks in Bolivia using
its support guideline for highly dollarized countries. This
guideline takes into consideration the history of support for
banks, the size, strength and the fragmentation of the Bolivian
banking system, as well as the extent to which a high level of
dolarization may limit Bolivia's ability to support its banks.
Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.
BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors. BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.
Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating. The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.
Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities. Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.
The methodologies are being implemented country by country, with
results being announced on a weekly basis. Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as that of the parent.
Headquartered in La Paz, Bolivia, Banco Bisa S.A., is a bank
holding company, with subsidiaries in the leasing, insurance,
warrant and brokerage sectors, among others. As of December
2005, it was the fifth bank in terms of deposits with
BOB2,894 million and 11.9% of market share. The bank serves
large and medium companies, providing a wide array of credit and
financial products and services, but it is limited by a largely
developing retail franchise.
BANCO MERCANTIL: Moody's Ups Bank Financial Strength Rating to D
----------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Banco Mercantil Santa Cruz S.A. to
D from E+, in connection with the rating agency's implementation
of its refined joint default analysis and updated BFSR
methodologies for banks in Bolivia.
Banco Mercantil's Local Currency deposit rating is upgraded to
Ba3 from B1. Its Foreign Currency deposit rating is unchanged
at Caa1. The company's long-term Local Currency deposit rating
in National Scale is upgrade to Aaa.bo from Aa1.bo and its long-
term Foreign Currency deposit rating in National Scale is
affirmed at A1.bo.
Moody's completed the review on the ratings of the Bolivian
banks. The BFSRs of four Bolivian banks were upgraded, by one
or two notches, as a result of their improving financial
fundamentals and evolving franchises. The implementation of the
JDA methodology also led to the lift in the local currency
deposit rating of six banks, by one or two notches.
Moody's has assigned support levels to banks in Bolivia using
its support guideline for highly dollarized countries. This
guideline takes into consideration the history of support for
banks, the size, strength and the fragmentation of the Bolivian
banking system, as well as the extent to which a high level of
dolarization may limit Bolivia's ability to support its banks.
Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.
BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors. BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.
Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating. The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.
Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities. Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.
The methodologies are being implemented country by country, with
results being announced on a weekly basis. Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as that of the parent.
Banco Mercantil Santa Cruz is the resulting entity of the merger
between Bolivia's second biggest bank Banco Mercantil and Banco
Santa Cruz.
BANCO SOLIDARIO: Moody's Ups Bank Financial Strength Rating to D
----------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Banco Solidario S.A. to D from E+,
in connection with the rating agency's implementation of its
refined joint default analysis and updated BFSR methodologies
for banks in Bolivia.
Banco Solidario's Local Currency deposit rating is raised to Ba3
from B1. Its Foreign Currency deposit rating is affirmed at
Caa1. The company's long-term Local Currency deposit rating in
National Scale is upgraded to Aaa.bo from Aa1.bo and its long
term Foreign Currency deposit rating in National Scale is
affirmed at A1.bo.
Moody's completed the review on the ratings of the Bolivian
banks. The BFSRs of four Bolivian banks were upgraded, by one
or two notches, as a result of their improving financial
fundamentals and evolving franchises. The implementation of the
JDA methodology also led to the lift in the local currency
deposit rating of six banks, by one or two notches.
Moody's has assigned support levels to banks in Bolivia using
its support guideline for highly dollarized countries. This
guideline takes into consideration the history of support for
banks, the size, strength and the fragmentation of the Bolivian
banking system, as well as the extent to which a high level of
dolarization may limit Bolivia's ability to support its banks.
Most of the national scale ratings, which are derived from the
global local currency deposit ratings, were also upgraded as a
result of the rise in deposit ratings.
BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors. BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.
Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating. The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.
Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities. Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.
The methodologies are being implemented country by country, with
results being announced on a weekly basis. Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as that of the parent.
Founded in 1995, Banco Solidario is one of the leading
microfinance lenders in Latin America and it is first such
grant-based NGO to be turned into a commercial bank. Banco
Solidario remains a main reference within its niche, as the bank
provides financing to numerous small clients that would not be
served otherwise.
===========
B R A Z I L
===========
BANCO NACIONAL: Grants BRL9.2-Million Loan to Sistema Brasileiro
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it has granted a BRL9.2-million loan to local
broadcaster Sistema Brasileiro de Televisao aka SBT to migrate
its equipment from analog to digital.
Business News Americas relates that the loan is 86% of the
BRL10.7-million investment in the project. It is the first part
of a BRL1-billion budget Banco Nacional has allocated for
boosting the implementation of digital television in Brazil up
until 2013.
According to BNamericas, the Banco Nacional program is aimed at
helping broadcasters upgrade their equipment for transmitting
digital television signals, assist manufacturers in developing
equipment and encourage national content producers.
Digital television broadcasting will start in Sao Paulo by year-
end. The Brazilian system will be based on Japan's digital
television standard, BNamericas states.
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.
BENQ CORP: Mobile Unit Posts Sixth Straight Quarterly Loss
----------------------------------------------------------
BenQ Corp. posted its sixth straight quarterly loss due to its
ailing mobile phone business, and said it would spin off its
branded business into a new company, Reuters reports.
According to the report, BenQ incurred a net loss of
NTT$1.76 billion for the first quarter ended March 31, 2007,
narrowing sharply from a year-ago loss of NTT$5 billion.
The result, according to Reuters, was wider than an average
forecast for a NTT$1.47 billion loss from four analysts the news
agency surveyed.
BenQ would spin off its branded products business into a
separate company on Sept. 1, Reuters adds. After the spin-off,
the new company would keep the BenQ name, while the non-branded
business would retain the company's current ticker symbol and be
renamed Jia Da Corp., focusing on the ODM business.
About the Company
Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing
developing and selling of computer peripherals and
telecommunication products. It is also a major provider of 3G
handset, camera phones, and other products. It has operations
in Brazil.
BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany. BenQ Mobile filed for insolvency
in Germany on Sept. 29, 2006, after BenQ Corp.'s board decided
to discontinue capital injection into the mobile unit in order
to stem unsustainable losses. The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.
A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the
deadline in finding a buyer for the company on Dec. 31, 2006.
* * *
As reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned
its long-term twBB+ and short-term twB corporate credit ratings
to BenQ Corp.
The outlook on the long-term rating is negative. At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.
The ratings reflect BenQ's continuing operating losses from its
handset operations and high leverage, and the competitive nature
and low profitability of the LCD monitor industry.
BENQ CORP: Eric Yu Still Detained Amidst Insider Trading Probe
--------------------------------------------------------------
BenQ Corp.'s Chief Financial Officer Eric Yu remains in
detention as part of a probe into insider trading, retracting an
earlier statement from the company that he was released on
April 20, China Post reports.
"We gave out the wrong information," BenQ's spokeswoman Daisy
Lee said in an interview with The Post while declining to
elaborate on how the mistake was made. According to the paper,
Ms. Lee announced last Friday that Mr. Yu was released without
posting bail.
Deputy Prosecutor Chang Chin-fung confirmed in a telephone
interview that indeed Mr. Yu was never released from the
detention center, writes Chinmei Sung and Tim Culpan for The
Post.
About the Company
Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. --
http://www.benq.com/-- is principally engaged in manufacturing
developing and selling of computer peripherals and
telecommunication products. It is also a major provider of 3G
handset, camera phones, and other products. It has operations
in Brazil.
BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany. BenQ Mobile filed for insolvency
in Germany on Sept. 29, 2006, after BenQ Corp.'s board decided
to discontinue capital injection into the mobile unit in order
to stem unsustainable losses. The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.
A Munich Court opened insolvency proceedings against BenQ Mobile
GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the
deadline in finding a buyer for the company on Dec. 31, 2006.
* * *
As reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned
its long-term twBB+ and short-term twB corporate credit ratings
to BenQ Corp.
The outlook on the long-term rating is negative. At the same
time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's
existing NT$7.05 billion unsecured corporate bonds due in 2008,
2009, and 2010.
The ratings reflect BenQ's continuing operating losses from its
handset operations and high leverage, and the competitive nature
and low profitability of the LCD monitor industry.
COMMSCOPE INC: Earns US$45.9 Million for First Quarter 2007
-----------------------------------------------------------
CommScope Inc. posted US$45.86 million in net profit on
US$435.45 million in net revenues for the first quarter ended
March 31, 2007, compared with US$12.72 million in net profit on
US$352.25 million in net revenues for the first quarter ended
March 31, 2006.
"We are excited to start 2007 with record first quarter results
that exceeded expectations," said Frank M. Drendel, CommScope
Chairman and Chief Executive Officer. "We delivered solid top-
line growth in every business segment while improving operating
performance. The global manufacturing initiatives, which were
implemented throughout 2006, made a significant contribution to
our bottom line. These major restructurings at key facilities
around the globe, higher sales volume and lower than expected
commodity costs drove our record first quarter performance. We
have also raised calendar year 2007 financial guidance to
reflect our positive outlook.
"Leading global companies are placing great demands on their
communications networks. We strive to provide our customers
with solutions that are part of the essential fabric for higher-
bandwidth networks of the future," stated Drendel. "We believe
that our momentum remains strong as we execute this strategy and
build upon CommScope's unique position in the 'last mile' of
telecommunications."
Outlook
CommScope provided guidance for the second quarter and calendar
year 2007:
Second Quarter 2007
-- for the second quarter of 2007, revenue is expected to be
US$490 million to US$510 million and operating margin is
expected to be 14.5% - 15.5%, excluding special items;
-- the effective tax rate is expected to be 30% - 34%.
Calendar Year 2007
-- for calendar year 2007, the company has increased its
revenue and operating margin guidance. CommScope now
expects revenue in the range of US$1.84 billion to
US$1.89 billion and operating margin of 13.5% - 14.5%,
excluding special items; and
-- the effective tax rate is expected to be 30% - 34%.
"We are pleased with the strong start in our 2007 financial
performance and our improved calendar year outlook," said
Jearld L. Leonhardt, Executive Vice President and Chief
Financial Officer. "We expect operating margin in the second
half of 2007 to be lower than the first half of the year
primarily due to increasing raw material costs and a cautious
view of the historically volatile Carrier segment."
About CommScope
Headquartered in Hickory, North Carolina, CommScope Inc.
-- http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. CommScope operates in Brazil, Australia, China and
Ireland.
* * *
CommScope Inc. carries a 'BB' corporate credit rating from
Standard & Poor's with stable outlook.
HAYES LEMMERZ: Plans US$150 Million of Senior Notes Offering
------------------------------------------------------------
Hayes Lemmerz International Inc. plans to offer approximately
US$150 million, or the equivalent amount denominated in euros,
of senior unsecured notes. The notes are expected to be issued
by a European subsidiary. The issuance of the notes is subject
to market and other customary conditions.
The notes will be offered in the United States to qualified
institutional buyers pursuant to Rule 144A under the Securities
Act of 1933, as amended, and outside the United States pursuant
to Regulation S under the Securities Act. The notes have not
been and will not be registered under the Securities Act and may
not be offered or sold in the United States without registration
or an applicable exemption from the registration requirements.
Additionally, Hayes Lemmerz has launched the syndication of the
new senior secured credit facilities in an amount of up to
US$495 million.
The proceeds of the new credit facilities will be used to
refinance the company's obligations under its Amended and
Restated Credit Agreement dated April 11, 2005. The refinancing
of the Amended and Restated Credit Agreement and the placement
of a portion of the company's debt outside the United States are
conditions to the obligation of Deutsche Bank Securities Inc.
and SPCP Group LLC, an affiliate of Silver Point Capital L.P.,
to backstop the Rights Offering.
Additional proceeds will be used to replace existing letters of
credit and to provide for working capital and other general
corporate purposes, and to pay the fees and expenses associated
with the new credit facilities.
Bank meetings are scheduled Wednesday, May 2, 2007, in
London, England and Thursday, May 3, 2007, in New York, NY.
Citigroup Global Markets Inc. and Deutsche Bank AG, New
York Branch and Deutsche Bank Securities Inc. will act as joint
arrangers and joint book-runners for the syndication of
the new credit facilities.
About Hayes Lemmerz International Inc.
Hayes Lemmerz International, headquartered in Northville,
Michigan, is a global supplier of steel and aluminum automotive
and commercial vehicle highway wheels, as well as aluminum
components for brakes, powertrain, suspension, and other
lightweight structural products. Worldwide revenues approximate
US$2.2 billion. The company has 33 facilities worldwide
including India, Brazil and Germany, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 7, 2007, Moody's Investors Service lowered HLI Operating
company, Inc.'s ratings:
* Corporate Family to Caa1 from B3;
* first lien senior secured to B1 from Ba3;
* second lien term loan to Caa1 from B3.
MRS LOGISTICA: Planned Sao Paulo Rail Ring Ready by 2010
--------------------------------------------------------
MRS Logistica President and Chief Executive Julio Fontana told
Business News Americas that the planned BRL800-million rail ring
around Sao Paulo will be operational by 2010.
BNamericas notes that Mr. Fontana expects work on the project to
begin early in 2008.
Mr. Fontana told BNamericas, "We have finished our business plan
and financial study, and the deadline for approval by the
federal government is June. Once we receive this we can move
forward."
MRS Logistica's initial financial proposal seeks a 70%
investment contribution from the Brazilian government. The firm
proposed could handle the remaining 30%. The proposal, which
has been included in the government's growth acceleration plan,
is awaiting federal authorization.
Mr. Fontana told BNamericas, "The financial proposal is with a
consultancy firm being coordinated by [national development
bank] BNDES, which is validating the project."
BNamericas relates that once the business and financial plans
are approved, the project will then need environmental
licensing.
Mr. Fontana explained to BNamericas, "The environmental study is
ongoing but is very expensive so it will only be commissioned
officially once we have received the federal go-ahead. At the
moment the plan calls for a 63-kilometer line, but this could
drop to 50-kilometer because of environmental considerations."
The report says that MRS Logistica owns the rail concession in
Sao Paulo, which provides what amounts to a monopoly on the
commercial rail track in and around Sao Paulo. Depending upon
the time of day, it can take a train up to 24 hours to cross the
city.
Mr. Fontana commented to BNamericas, "This kills business
because dealing with Santos [port] means transporting
containers, for which time is crucial."
Meanwhile, MRS Logistica is also pursuing a BRL300-million
project involving the construction of a conveyer belt from Sao
Paulo down to Santos port, BNamericas says.
This project is "edging toward" the end of the environmental
licensing phase. Construction work will begin before year-end,
Mr. Fontana told BNamericas.
With the two projects, MRS Logistica predicts that its movement
of minerals from the interior of Brazil to the coast will
significantly increase in volume and speed, BNamericas states.
The MRS consortium is a railway freight transport company
established in 1996 to operate approximately 1,700 kilometers of
track in the states of Minas Gerais, Rio de Janeiro e Sao Paulo.
MRS's rail network is also linked to the Central Atlantic,
Vitoria-Minas and Sao Paulo Railroads, offering intramodal
transportation options to the other parts of the country. The
company mainly transports cargo for its principle shareholders.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2006, Standard & Poor's Ratings Services affirmed its
'BB' local- and foreign-currency corporate credit ratings on
Brazil-based railroad company MRS Logistica S.A.
MRS's total on-balance-sheet debt was US$332 million in
September 2006.
Standard & Poor's also said that the outlook on MRS remains
stable.
The ratings on MRS reflect:
-- some client concentration, with reliance on iron ore
captive cargoes;
-- limited scope of its assets (comparatively a short
railroad); and
-- the capital-intensive nature of the railroad business in
the context of the fast-growing strategy developed in
recent years.
NRG ENERGY: Inks Deal with TEPCO to Expand South Texas Project
--------------------------------------------------------------
NRG Energy, Inc., through its agent, South Texas Project Nuclear
Operating Company, has signed an agreement with The Tokyo
Electric Power Company, Inc., or TEPCO to provide TEPCO's
expertise and experience to support STP's planned two-unit
expansion. TEPCO owns and operates two Advanced Boiling Water
Reactor -- ABWR -- nuclear units in Japan and NRG has proposed
building two ABWR units at the STP site to bring an additional
2,700 megawatts of clean nuclear power to Texas.
"President Bush and Prime Minister Abe of Japan took an
auspicious step today, underscoring the importance of expanding
zero-emission nuclear power through the Joint Nuclear Energy
Action Plan. We are proud of our agreement with TEPCO that
strongly aligns with the principles of the Plan announced
earlier this week," said David Crane, NRG President and Chief
Executive Officer. "Technical cooperation within the business
sector will be critical to renewed nuclear development in the
United States. Combining STP's operational excellence with the
tremendous experience TEPCO has in building and operating ABWR
nuclear plants will make an unbeatable team."
The NRG/TEPCO agreement calls for TEPCO to consult on the
design, construction, operation and maintenance of the new ABWR
units at STP, and to provide their expertise and experience in
developing the application of a combined construction and
operation license that NRG intends to submit to the Nuclear
Regulatory Commission during the second half of this year. The
General Electric Company's ABWR design has been certified by the
U.S. Nuclear Regulatory Commission.
"TEPCO will be an invaluable partner in ensuring STP units 3 and
4 come online on schedule and on budget to help meet Texas'
growing energy needs through nuclear power," said Steve Winn,
Executive Vice President, Strategy, and Environmental and New
Business. "Nuclear power has shown its ability to produce much
needed power reliably and safely and without adding greenhouse
gases or other emissions into our atmosphere. We look forward
to working with TEPCO to develop this proven technology that
will power Texas' economy in an economical and environmentally
friendly manner."
Tokyo Electric
TEPCO is the largest electric power company in Japan and one of
the largest investor owned electric utilities in the world.
TEPCO supplies electricity to meet the increasingly diversified
and sophisticated demands of its over 27.7 million customers in
the 39,500 square-kilometer service area that includes
metropolitan Tokyo, the political, economic, and cultural center
of Japan, and eight prefectures surrounding Tokyo. TEPCO has
diversified major energy sources ranging from hydroelectric,
oil, and liquefied natural gas to nuclear.
South Texas Project
STP supplies power to customers in Houston, Austin, San Antonio,
Corpus Christi and surrounding areas. The plant is managed by
the STP Nuclear Operating Company and is owned by NRG Texas, CPS
Energy and Austin Energy. STP's twin reactors produce nearly
2,600 megawatts of electricity, enough to power approximately
two million homes. For the last three years, the South Texas
Project nuclear power plant has led the U.S. in electricity
production by two-reactor facilities. STP unit 2 led all 103
reactors nationwide in production in 2006 and was the third
highest of the 442 reactors worldwide. STP unit 1, which
conducted a routine refueling and maintenance outage in 2006,
ranked sixth in production in the country and seventeenth
globally.
About NRG Energy
Headquartered in Princeton, New Jersey, NRG Energy Inc.
(NYSE:NRG) owns and operates power generating facilities,
primarily in Texas and the northeast, south central and western
regions of the United States. NRG also owns generating
facilities in Australia, Brazil, and Germany.
* * *
As reported in the Troubled Company Reporter on Nov. 14, 2006,
Fitch Ratings assigned a rating of 'B+/RR3' on NRG Energy's
issuance of US$1.1 billion senior notes due 2011. This issue
will rank equally with NRG's other senior unsecured obligations.
Fitch said the rating outlook is stable.
PETROLEO BRASILEIRO: Inks Four Rig Contracts with BCH Ltd.
----------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA has entered
into four multi-year contracts with BrazAlta Resources Corp.'s
wholly owned oilfield services subsidiary, BCH Ltd., for the
provision of drilling rigs and related services.
Each contract is for the provision of one onshore drilling rig
and related crew. Two contracts are for a period of two years,
with two-year renewable options, and two contracts are for a
period of three years, with three-year renewable options. The
four rigs will be delivered for operations in Brazil starting
July 15, 2007, through to Oct. 15, 2007. The term of each
contract will begin on the respective rig delivery dates. The
contracts were awarded to fulfill the requirements of Petroleo
Brasileiro's expanding on-shore drilling operations and based on
BCH's high level of operational and technical performance under
the previously announced 100-day drilling contract with Petroleo
Brasileiro. In aggregate over their term, the contracts,
excluding renewal options, are expected to generate gross
revenues of approximately USD$80 million. BrazAlta Resources
continues to develop and enhance its operations in Brazil and
looks forward to a continued successful relationship with
Petroleo Brasileiro.
About BrazAlta Resources
BrazAlta Resources Corp. is a Canada-based company engaged in
exploration, development and production of oil and gas in the
prolific Reconcavo and Sergipe basins of Brazil. It also
maintains exploration programs in Canada and Northern Ireland.
In Brazil the company has four producing wells in the Reconcavo
and Sergipe regions. In Canada, BrazAlta Resources focused on
drilling at Sylvan Lake, Lochend and Bruce. In Ireland the
Company focuses on South Larne project, which includes Sherwood
sands model. BrazAlta is a publicly traded international oil
and gas corporation.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Will Lease Sao Paulo Plant for 17 Years
------------------------------------------------------------
Xinhua News reports that Brazilian state-owned oil company
Petroleo Brasileiro has signed a contract to lease the Sao Paulo
government's Piratininga thermoelectric power plant for 17
years.
Petroleo Brasileiro said in a statement that it will pay BRL45
million yearly to operate Piratininga plant.
Xinhua News relates that Petroleo Brasileiro said that among the
reasons that motivated it to sign the contract was Piratininga's
operational flexibility.
According to Petroleo Brasileiro's statement, the company also
leased the plant due to the need to boost its energy supplies in
Brazil.
Xinhua News says that the contract gave Petroleo Brasileiro the
choice to acquire ownership of the power plant.
Piratininga will be the 13th thermoelectric power plant operated
by Petroleo Brasileiro in the country. The plant was previously
run by a consortium, of which Petroleo Brasileiro was a member
until 2001. Since then, the company has been in talks with the
Sao Paulo government for the takeover of the plant's operations.
The plant relies on a base production capacity of 540 megawatts,
and on two extra steam-empowered engines capable of producing
200 megawatts, Xinhua News states.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
RBS PARTICIPACOES: Better Liquidity Cues S&P to Up Rating to BB-
----------------------------------------------------------------
Standard & Poor's Ratings Services has raised its long-term
corporate credit rating on RBS Participacoes S.A. to 'BB-' from
'B+'. The outlook is stable. The ratings were removed from
CreditWatch with positive implications where they had been
placed April 19, 2007. RBS' combined entities' (RBS
Comunicacoes S.A. and Empresas Combinadas) total debt was US$278
million as of December 2006.
The upgrade reflects RBS' improved financial profile as it has
been using strong cash flows and the sale of its nonvoting
shares in Net Servicos de Comunicacao S.A. (BB-/Positive/--) to
repay short-term maturities and strengthen its liquidity
position. "Given RBS' reduced refinancing risks, we expect the
company to further improve its debt profile with a smoother
amortization schedule and lower financial cost (as the company
repays foreign exchange debt and reduces its hedge cost). We
believe the company is better positioned to withstand the
intrinsic volatility of advertising revenues," said Standard &
Poor's credit analyst Beatriz Degani.
The ratings reflect the group's operations in the cyclical media
industry; dependence of revenues on a volatile advertising
budget; and S&P's expectation of a more significant capital
expenditure and more robust dividend distribution during the
next few years, which could be accompanied by some increase in
total debt levels. These negatives are partly offset by the
group's dominant share of audience and advertising in its
service area, the benefits of the distribution of Globo
Comunicacao e Participacoes S.A.'s (Globo; BB/Stable/--) high-
quality content, and an adequate financial risk profile.
The stable outlook reflects our view that RBS will be able to
sustain its improved credit quality during the coming quarters
because of solid operating cash flow generation, along with
maintaining consistent operating margins, even under a moderate
scenario for advertising growth. S&P's view already
incorporates the expectation of less robust discretionary cash
flow generation for the next few years due to higher investments
and dividend distributions.
S&P also expects the renewal of RBS' affiliate agreement with
Globo (scheduled for 2008) to be successfully agreed upon, with
possible variations having limited effect on the company's TV
operations' results. On the other hand, if the local
advertising market or the economic prospects for Brazil (which
significantly affected RBS' operating performance) deteriorate,
along with adverse financial markets and lack of credit
availability, the company's financial flexibility could be
affected, and may lead to an outlook revision.
TIMKEN COMPANY: Posts US$42 Million First Quarter Income in 2007
----------------------------------------------------------------
The Timken Company reported sales of US$1,284,513,000 during the
first quarter of 2007, an increase of US$1,254,308,000 over the
same period a year ago. Net income for the first quarter of the
year 2007 was US$42,571,000, down from the first quarter net
income for the year 2006 of US$65,940,000. First-quarter income
from continuing operations was US$41,631,000, as compared with
US$57,094,000 in the first quarter a year ago.
The decline in income from last year's first quarter was due
predominately to increased restructuring costs. In addition,
the company's tax rate in the quarter was higher, primarily due
to losses caused in part by restructuring activities in certain
foreign jurisdictions where no tax benefit could be recorded.
"Our first-quarter results rebounded following the challenges we
encountered during the second half of 2006," said James W.
Griffith, Timken's president and chief executive officer. "We
are confident that our strategic initiatives, including
Automotive restructuring and targeted Industrial capacity
additions, will combine with continued strong Steel performance
to deliver improved results in 2007."
During the quarter, the company:
-- Announced a US$60 million expansion for special small-bar
steel capabilities, further differentiating its product
portfolio, and commissioned a new induction heat-treat
line focused on steel products for the energy and
industrial sectors;
-- Advanced programs to improve the performance of its
Automotive Group, including announcement of the closure
of its Sao Paulo, Brazil, bearing production facility by
the end of the year; and
-- Grew sales in Asia by 17 percent and made progress on
capacity additions in both China and India.
Group Results
The Industrial Group had record first-quarter sales of
US$544,442,000, up from US$503,879,000 for the same period last
year. Favorable pricing and higher volume drove the increase,
with sales strength coming from multiple market sectors,
especially aerospace and heavy industry.
The Automotive Group's first-quarter sales of US$387,960,000
were down from US$420,984,000 for the same period last year.
The decrease was driven by the sale of its steering business at
the end of 2006 and lower demand from North American light
vehicle and heavy truck customers. The Automotive Group
incurred a loss of US$7,233,000, as compared to a loss of
US$3,141,000 for the same period a year ago.
During the quarter, Timken continued to improve the performance
of its automotive business through facility rationalization,
workforce reduction and asset divestment and are on track to
deliver targeted savings of US$75,000,000 by 2008.
Steel Group sales, including inter-segment sales, were a record
US$390,292,000, up from US$375,410,000 for the same period a
year ago.
The company had total assets of US$4,124,063,000 and total
liabilities of US$2,602,258,000, resulting in a total
shareholders' equity of US$1,521,805,000.
In reconciling total debt to net debt and calculating for ratio
of net debt to capital, the company recorded total debt at
March 31, 2007, of US$668,499,000, or 30.5% of capital. Debt
was higher than the 2006 year-end level of US$597,843,000, or
28.8% of capital, due to seasonal working capital requirements.
Net debt at March 31, 2007, was US$567,681,000, or 27.2% of
capital. The company expects to end 2007 with lower net debt
and leverage than last year, providing additional financial
capacity to pursue strategic investments.
Outlook
Timken anticipates global industrial markets will remain strong,
and investments in Industrial Group capacity are expected to
become operational throughout the year. In addition, the
company expects improved Automotive Group performance for the
full year compared to 2006, as it benefits from its operating-
improvement initiatives.
About Timken
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR)
-- http://www.timken.com/-- manufactures highly engineered
bearings and alloy steels. It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial, and railroad industries. The Company has
operations in 27 countries, including Brazil, and employs 27,000
employees.
* * *
As reported in the Troubled Company Reporter on Oct. 30, 2006,
Moody's Investors Service confirmed The Timken Company's Ba1
Corporate Family Rating and the Ba1 rating on the company's
US$300 Million Unsecured Medium Term Notes Series A due 2028.
===========================
C A Y M A N I S L A N D S
===========================
AKATSUKI CAPITAL: Will Hold Final Shareholders Meeting on May 18
----------------------------------------------------------------
Akatsuki Capital Holdings Ltd. will hold its final shareholders
meeting on May 18, 2007, at 10:00 a.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 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:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd., Walker House
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
ALBA CAPITAL: Sets Final Shareholders Meeting for May 17
--------------------------------------------------------
Alba Capital Funds Ltd. will hold its final shareholders meeting
on May 17, 2007, at 10:00 a.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 company's
records for a period of six 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:
Q&H Nominees Ltd.
Attention: Greg Link
P.O. Box 1348
George Town, Grand Cayman KY1-1108
Cayman Islands
Telephone: 949 4123
Fax: 949 4647
ARRAN PARTNERS: Will Hold Final Shareholders Meeting on May 17
--------------------------------------------------------------
Arran Partners International Master Fund, Ltd. will hold its
final shareholders meeting on May 17, 2007, at 10:00 a.m., at:
Queensgate House, South Church Street
Grand Cayman, Cayman Islands
These matters will be discussed 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 liquidator can be reached at:
Ogier
Attention: Ramanan Navakadadcham
Queensgate House, South Church Street
Grand Cayman, Cayman Islands
Telephone: (345) 949 9876
Fax: (345) 949 1986
ARRAN PARTNERS INT'L: Sets Final Shareholders Meeting for May 17
----------------------------------------------------------------
Arran Partners International will hold its final shareholders
meeting on May 17, 2007, at 10:05 a.m., at:
Queensgate House, South Church Street
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 liquidator can be reached at:
Ogier
Attention: Ramanan Navakadadcham
Queensgate House, South Church Street
Grand Cayman, Cayman Islands
Telephone: (345) 949 9876
Fax: (345) 949 1986
EOS SECTOR: Will Hold Final Shareholders Meeting on May 17
----------------------------------------------------------
EOS Sector Strategies Offshore Ltd. will hold its final
shareholders meeting on May 17, 2007, at 12:00 p.m., at the
office of the company.
These matters will be discussed 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 liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 945 4237
ESS MASTER: Sets Final Shareholders Meeting for May 17
------------------------------------------------------
ESS Master Fund Ltd. will hold its final shareholders meeting on
May 17, 2007, at 11:00 a.m., at the office of the company.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
and
2) authorizing the liquidators to retain the company's
records for a period of six 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:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 945 4237
FAIRFIELD FUND: Proofs of Claim Filing Ends on May 17
-----------------------------------------------------
Fairfield Trafalgar Fund Ltd.'s creditors are given until
May 17, 2007, to prove their claims to Chris Humphries and Mark
Cummings, 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.
Fairfield Trafalgar's shareholder decided on March 27, 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 Humphries
Mark Cummings
c/o Stuarts Walker Hersant
Cayman Financial Centre
36a Dr. Roy's Drive, George Town
P.O. Box 2510
Grand Cayman KY1-1104
Cayman Islands
FAIRFIELD FUND: Proofs of Claim Filing Is Until May 17
------------------------------------------------------
Fairfield Trafalgar Fund Ltd.'s creditors are given until
May 17, 2007, to prove their claims to Chris Humphries and Mark
Cummings, 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.
Fairfield Trafalgar's shareholder decided on March 27, 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 Humphries
Mark Cummings
c/o Stuarts Walker Hersant
Cayman Financial Centre
36a Dr. Roy's Drive, George Town
P.O. Box 2510
Grand Cayman KY1-1104
Cayman Islands
MILTON INT'L: Sets Final Shareholders Meeting for May 17
--------------------------------------------------------
Milton International Corp. will hold its final shareholders
meeting on May 17, 2007, at 11:30 a.m., at the office of the
company.
These matters will be discussed 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 liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 945 4237
=========
C H I L E
=========
GOODYEAR TIRE: March 31 Balance Sheet Upside-Down by US$90 Mil.
---------------------------------------------------------------
The Goodyear Tire & Rubber Company's balance sheet at
March 31, 2007, showed US$15.86 billion in total assets and
US$15.95 billion in total liabilities, resulting in a US$90
million total stockholders' deficit.
The Goodyear Tire & Rubber Company reported a net loss of
US$174 million for the first quarter ended March 31, 2007,
compared with net income of US$74 million for the same period of
fiscal 2006. This net loss includes a loss from discontinued
operations of US$64 million related to classifying the
Engineered Products business as "held for sale". This compares
to income from discontinued operations of US$28 million in the
fiscal 2006 period.
The company reported first quarter sales from continuing
operations of US$4.50 billion, up 1 percent from first quarter
sales from continuing operations in fiscal 2006 of US$4.46
billion despite the impact of a fourth quarter strike last year
in North America.
The improvement in global sales was driven by Goodyear's three
emerging market tire businesses, which were up 11 percent from
last year. Each of these businesses had record first quarter
sales. The sales improvement was also supported by a faster-
than-expected recovery from the United Steelworkers strike in
North America.
This growth offset a 10 percent decline in sales for Goodyear's
North American Tire business, which was impacted by the strike
and an exit from certain segments of the private label tire
business, which together reduced sales by about US$200 million.
"Our first quarter represented a strong start to the year, with
revenue per tire up 8 percent. This reflected strong pricing
and product mix, which exceeded raw material cost increases in
the quarter. Our focus on speed and the pace of change at
Goodyear is having a meaningful impact," said Robert J. Keegan,
chairman and chief executive officer.
"Our recovery from the strike is going much better than
expected. We restored production faster than anticipated and
weaker consumer OE demand enabled us to sell more high-value-
added tires into the replacement market," he said.
As a result of improved profitability from increased replacement
market sales, the company has reduced its estimated impact of
the USW strike on North American Tire to between US$100 million
and US$120 million for the year. The previous estimate was
US$200 million to US$230 million.
Including an estimated US$34 million impact from the strike,
Goodyear's first quarter segment operating income from
continuing operations was US$226 million in 2007. This compares
to income of US$282 million last year, which included US$30
million in settlements from suppliers.
For the 2007 first quarter, Goodyear reported a loss from
continuing operations of US$110 million, compared to income from
continuing operations of US$46 million during the 2006 period.
In addition to the strike, the loss in the 2007 quarter was also
impacted by after-tax curtailment charges of US$64 million due
to salaried benefit plan changes and US$31 million for
rationalizations, including accelerated depreciation related to
previously announced plant closures.
Improved pricing and product mix of approximately US$165 million
more than offset increased raw material costs of approximately
US$120 million.
Income from continuing operations in the 2006 quarter benefited
from after-tax items including supplier settlements of
US$26 million, a pension plan change of US$13 million and a
legal settlement of US$10 million. Negatively impacting the
quarter was an after-tax charge of US$29 million for
rationalizations, including accelerated depreciation and asset
write-offs.
Discontinued Operation
As a result of its agreement on March 23, 2007 to sell
substantially all of its Engineered Products business, Goodyear
now reports these results as a discontinued operation.
Sales from discontinued operations in the first quarter of 2007
totaled US$383 million, down from US$394 million the previous
year.
Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available
for free at http://researcharchives.com/t/s?1e12
Liquidity and Capital Resources
At March 31, 2007, the company had US$2.08 billion in cash and
cash equivalents as well as US$1.72 billion of unused
availability under its various credit agreements, compared to
US$3.86 billion and US$533 million at Dec. 31, 2006. Cash and
cash equivalents decreased primarily due to repayments on the
amounts borrowed under the US$1.0 billion revolving portion of
the US$1.5 billion First Lien Credit Facility, the 8.5% Notes
due 2007 and the German revolving credit facility due 2010.
Cash and cash equivalents do not include restricted cash.
Net cash used in operating activities from continuing operations
in the first quarter of 2007 of US$393 million decreased from
US$315 million in the first quarter of 2006. The decrease was
due primarily to lower operating results offset by improved
working capital.
Net cash used in investing activities from continuing operations
was US$55 million during the first quarter of 2007, compared to
US$144 million in the first quarter of 2006. Capital
expenditures were US$97 million and US$111 million in the first
quarter of 2007 and 2006, respectively. The change in cash used
in investing activities was primarily the result of the 2006
acquisition of the remaining outstanding shares of South Pacific
Tyres Ltd.
Net cash used in financing activities from continuing operations
was US$1.31 billion in the first quarter of 2007 compared to
US$150 million in the first quarter of 2006. The increase in
cash used was due primarily to the payments of US$873 million on
the U.S. revolving credit facility, US$300 million on the 8.5%
Notes due 2007, and approximately US$200 million repayment of
the German revolving credit facility due 2010.
About Goodyear Tire
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear Tire has marketing operations in almost
every country around the world including Chile, Colombia,
Guatemala, Jamaica and Peru in Latin America. Goodyear employs
more than 80,000 people worldwide.
As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Fitch Ratings has affirmed ratings for The
Goodyear Tire & Rubber Co. and revised the rating outlook to
positive from stable:
-- Issuer Default Rating 'B';
-- USUS$1.5 billion first-lien credit facility 'BB/RR1';
-- USUS$1.2 billion second-lien term loan 'BB/RR1';
-- USUS$300 million third-lien term loan 'B/RR4';
-- USUS$650 million third-lien senior secured notes 'B/RR4';
-- Senior unsecured debt 'CCC+/RR6'.
===============
C O L O M B I A
===============
TOWER RECORDS: Can Assume & Assign IP Contracts to Caiman Hldgs.
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave MTS
Inc. dba Tower Records and its debtor-affiliates authority to
assume certain of their executory contracts and assign them to
Caiman Holdings, Inc.
Pursuant to a purchase agreement in which Caiman Holdings
purchased the Debtors' intellectual property assets, the Debtors
have agreed to assume certain intellectual property executory
contracts identified by Caiman, a list of which can be accessed
for free at http://researcharchives.com/t/s?1e09
The contract list constitutes a universe of contracts from which
Caiman will select. Caiman may not choose, at the present time,
to have the Debtor assume and assign all of the contracts
listed.
Headquartered in West Sacramento, California, MTS, Inc., dba
Tower Records -- http://www.towerrecords.com/-- is a retailer
of music in the U.S., with nearly 100 company-owned music, book,
and video stores. The company has stores in the United Kingdom,
the Philippines and Colombia.
The Company and its affiliates previously filed for chapter 11
protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No.
04-10394). The Court confirmed the Debtors' plan on
March 15, 2004.
The Company and seven of its affiliates filed their second
voluntary chapter 11 petition on Aug. 20, 2006 (Bankr. D. Del.
Case Nos. 06-10886 through 06-10893). Richards, Layton &
Finger, P.A. and O'Melveny & Myers LLP represent the Debtors.
The Official Committee of Unsecured Creditors is represented by
McGuirewoods LLP and Cozen O'Connor. When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than US$100 million. The Debtors' exclusive period to
file a chapter 11 plan expires on Dec. 18, 2006.
Moody's Investors Service gave the company's issuer rating and
long-term corporate family rating a Ca, and its senior
subordinated rating a C.
===================
C O S T A R I C A
===================
BETCASCADE: Withdrawal of Financial Support Leads to Bankruptcy
---------------------------------------------------------------
Costa Rican sources told TOW Industry Newswire that BetCascade
sportsbook's business has collapsed.
According to TOW Industry, BetCascade's business started to
weaken when its former financial backer pulled out his support
and one of the original associates in the business retired at
the end of the football season.
TOW Industry notes that BetCascade was in a "slow pay mode" at
the start of February 2007 and has stopped paying since the
middle of April 2007.
BetCascade owes hundreds of players, agents and vendors well in
excess of US$2 million, TOW Industry says, citing Costa Rican
sources. Professional players represent over 65% of the
company's debtors.
BetCascade owner's personal assets account for 30% of the debt,
Costa Rican sources told TOW Industry.
TOW Industry says that the company tried looking for new
financial partners but failed, and the "total loss of goodwill"
cancelled out chances of a "last minute deal."
Despite its collapse, BetCascade continues to advertise on some
Web sites, TOW Industry states.
The Cascade Sportsbook & Casino or BetCascade --
http://www.betcascade.comand http://www.cascadesportsbook.com-
- is an online betting site.
SMURFIT KAPPA: Debt Prepayment Spurs Fitch to Hike Ratings to BB
----------------------------------------------------------------
Fitch Ratings upgraded Smurfit Kappa Funding's EUR33 million and
US$72 million senior notes to 'BB' from 'BB-'. This follows the
completion of Smurfit Kappa Funding's second tender offer in
respect of its remaining EUR131 million and US$280 million
senior notes due 2012, which resulted in redemption of a further
EUR98 million and US$208 million of senior notes. The ratings
are removed from Rating Watch Positive. All other ratings are
affirmed:
-- Smurfit Kappa Acquisitions' Issuer Default rating: 'BB-'
-- Smurfit Kappa Acquisitions' senior secured facilities:
'BB+'
-- Smurfit Capital Funding guaranteed debentures due 2025:
'BB+'
-- Smurfit Kappa Funding's senior subordinated notes due
2015: 'B+'
The company also redeemed its remaining PIK notes on April 20.
Following the further prepayment of senior notes, pro forma
leverage for this class of debt has fallen to 4.3x from 5.3x at
fourth quarter of 2006. This has narrowed the leverage
differential between senior secured debt and the senior notes
and therefore the rating differential between the senior secured
debt and the senior notes is reduced to a single notch.
Headquartered in Dublin, Ireland, Smurfit Kappa Group --
http://www.smurfit-group.com/-- manufactures containerboard
containerboard and converts it into corrugated cases, folding
cartons, paper sacks, tubes, and composite cans. Other products
include boxboard, sack kraft paper, and printing and writing
paper. The company produces 6 million tons of paper annually
and has 300 facilities worldwide. In Latin America, the company
operates in Argentina, Brazil, Chile, Colombia, Costa Rica,
Dominican Republic, Ecuador, Mexico and Venezuela.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO INTERCONTINENTAL: Cayman Lawyers to Probe Ex-Pres.' Yacht
---------------------------------------------------------------
The Liquidation Commission, which is in charge of liquidating
Banco Intercontinental's assets, has hired Grand Cayman
attorneys to investigate and to demand the possession of the
Patricia yacht, which authorities in the Dominican Republic
claim as one of the assets that former bank president Ramon Baez
Figueroa acquired using the bank's funds, Dominican Today
reports.
According to Dominican Today, the Liquidation Commission
director Zunilda Paniagua testified in the trial against former
Banco Intercontinental officials, saying that the group didn't
have "greater details" on the actions taken in Grand Cayman to
recover the yacht. Ms. Paniagua said that apparently a sale was
made.
Clave Digital relates that Juarez Castillo, one of Mr.
Figueroa's lawyers, asked Ms. Paniagua how the Liquidation
Commission could file a lawsuit for an asset that was not
registered to Banco Intercontinental.
Ms. Paniagua replied that there were data showing that Banco
Intercontinental funds were used to acquire the Patricia yacht,
Clave Digital says.
Dominican Today notes that Mr. Castillo produced a document
indicating that Mr. Figueroa transferred the yacht to Intermarin
Corporation.
Dominican Today notes that the Justice Ministry's Sept. 13, 2001
indictment says that Mr. Figueroa signed with Benetti -- an
organization represented by the Azimuth, S. P.A. -- a purchase
order of the yacht that would "denominate" it for US$14,600,000,
which should have been hand over on Dec. 20, 2001. Before the
delivery of the yacht, Mr. Figueroa proceeded to transfer the
yacht in favor of Inter Marine Overseas, LTD -- a firm
"constituted Offshore in the British Virgin Islands -- on the
Oct. 29, 2001. The Justice Ministry stated, "Currently who
appears as empowered of the indicated Offshore is the father of
Baez Figueroa, Ramon Baez Romano."
Dominican Today reports that authorities claimed that the money
used to pay for the yacht -- including the down payment and the
subsequent payments -- were taken from Banco Intercontinental
even if Inter Marine Overseas "figures as the supposed
proprietor."
The authorities argued that Mr. Figueroa, faced with Banco
Intercontinental's intervention, quickly sold a large number of
assets, including the yacht, Dominican Today states.
Banco Intercontinental aka Baninter collapsed in 2003 as a
result of a massive fraud that drained it of about US$657
million in funds. As a consequence, all of its branches were
closed. The bank's current and savings accounts holders were
transferred to the bank's new owner -- Scotiabank. The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product. It cost Dominican taxpayers DOP55 billion and resulted
to the country's worst economic crisis.
GENERAL CABLE: Creates Two Joint Ventures in India
--------------------------------------------------
General Cable Corp. will form two joint venture companies in
India with the Plaza Cable Group of Companies.
The ventures, headquartered in New Delhi, will incorporate all
of Plaza's existing wire and cable assets. Plaza, with annual
revenues of approximately US$25 million, currently manufactures
low and medium voltage energy and construction cables for the
Indian market.
When completed, General Cable will hold a majority interest in
both companies with the remaining interest held by the current
owners. The Company expects to use available cash to fund both
the initial purchase price and any required short-term capital
investments. The energy cable venture is effective today, while
the construction cable venture will be completed during the
second quarter. Over the next two years the company plans to
invest up to US$40 million to expand cable production of low,
medium and high voltage electric utility products.
"We have worked hard to create the optimal entry strategy for
the Indian market and believe the combination of Plaza's strong
brand and business network coupled with our technical resources
and management expertise provides us the best possible platform
to grow our business in India," Campbell Whyte, President and
Chief Executive Officer, General Cable Asia Pacific, said.
"India's energy cable market is expected to continue to grow in
the 7%-8% range over the next several years. With an
experienced local management team led by Aviral Garg, General
Cable's India Country Manager, we will significantly expand
current production capabilities and capacity to serve this
growing market for energy infrastructure and construction cables
in India."
"This transaction, along with the recent acquisition in China,
further our strategy of global expansion into economies that are
building (or rebuilding) their energy infrastructure," Gregory
B. Kenny, President and Chief Executive Officer of General
Cable, said. "We have ambitious plans for further growth in
India and expect to quickly become a leading supplier in the
Indian market. We continue to actively seek additional
acquisition opportunities to grow our position in this
strategically important market."
About General Cable
Headquartered in Highland Heights, KY, General Cable Corp. --
http://www.generalcable.com/-- makes aluminum, copper, and
fiber-optic wire and cable products. Brand names include Carol
and Brand Rex. It also produces power cables, automotive wire,
mining cables, and custom-designed cables for medical equipment
and other products.
The company also operates in France, Turkey, Spain, Portugal,
Norway, China, Australia, New Zealand, Brazil, Angola, Dominican
Republic, Mexico, and Canada.
* * *
As reported on March 13, Moody's Investors Service assigned a
rating of B1 to the proposed US$325 million senior unsecured
notes of General Cable Corporation consisting of $125 million of
floating rate notes and US$200 million fixed rate notes.
Concurrently, Moody's affirmed all other ratings for this
issuer. Moody's said the rating outlook remains stable.
Moody's took these rating actions:
Assigned:
-- US$125 million senior unsecured floating rate notes due
2015, B1, LGD4, 63%
-- US$200 million senior unsecured notes due 2017, B1, LGD4,
63%
Affirmed:
-- US$355 million senior unsecured convertible notes due
2013, at B1, LGD4, 63%
-- US$285 million senior unsecured notes due 2010, at B1,
LGD4, 63%
-- Corporate Family Rating, at Ba3
-- Probability of Default Rating, at Ba3
The outlook is stable.
The rating on the US$285 million senior unsecured notes due 2010
will be withdrawn upon the successful conclusion of the tender
offer.
OCHOA BANK: Monetary Board Orders Bank's Closure & Liquidation
--------------------------------------------------------------
The Dominican Republic's Monetary Board has ordered the closure
and liquidation of the Ochoa Savings and Loans Bank, Dominican
Today reports, citing the Banks Superintendence.
As reported in the Troubled Company Reporter-Latin America on
April 30, 2007, the Banks Superintendence intervened the Ochoa
Bank as liquidity and compensation problems were detected in the
bank. The Banks Superintendence inspects Ochoa Bank shareholder
Ochoa Motors although it isn't part of the bank, to determine
any connection between the two entities. Ochoa Bank and Ochoa
Motors have a DOP1.2-billion deficit. Rumors on Ochoa Bank's
collapse had caused several of its clients 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 that the Ochoa Bank had failed,
calling the Banks Superintendence's intervention as ridicule.
Dominican Today relates that the Banks Superintendence disclosed
that the closure and liquidation order from the Monetary Board
was made on April 19.
The Banks Superintendence assumed Ochoa Bank's administration
and operations, and appointed Yeimy M. Lora and Yanet Feliz as
members of the "liquidator commission," Dominican Today states.
=============
E C U A D O R
=============
* ECUADOR: Declares Eduardo Somensatto as Persona Non Grata
-----------------------------------------------------------
Eduardo Somensatto, the World Bank's representative in Ecuador,
has been expelled from the country for allegedly blackmailing
President Rafael Correa back in 2005 when he was still economy
minister.
The World Bank in 2005 refused to release an approved US$100
million loan in response to Ecuador's restructuring of an oil
stabilization fund.
Hal Weitzman at the Financial Times says the expulsion order is
both personal and political. The administration of Mr. Correa,
an ally of Venezuela's Hugo Chavez, has signalled its hostility
to international lenders and threatened to default on its
external debt. At the same time, Mr. Correa is settling an old
score that saw him snubbed by the bank in Washington during his
short time as Ecuador's finance minister.
The government has previously said in reports that the World
Bank's representative would be asked to explain why the loan was
cancelled. Expulsion would result absent a satisfactory
explation, Pres. Correa has said.
The World Bank, the FT says, has confirmed receipt of the
expulsion order and is now "studying the implications... We
reiterate the institution's wish to maintain dialogue at the
highest level with the authorities of the country."
Ecuador owes the World Bank US$748 million.
* * *
As reported in the Troubled Company Reporter on Jan. 25, 2007,
Fitch Ratings downgraded the long-term foreign currency Issuer
Default Rating of Ecuador to 'CCC' from 'B-', indicating that
default is a real possibility in the near term.
In addition, these ratings were downgraded:
-- Uncollateralized foreign currency bonds to
'CCC/RR4' from 'B-/RR4';
-- Collateralized foreign currency Par and Discount
Brady bonds to 'CCC+/RR3' from 'B/RR3'; and
-- Short-term foreign currency IDR to 'C' from 'B'.
Fitch also affirmed the Country ceiling rating at 'B-'.
=====================
E L S A L V A D O R
=====================
TARGUS GROUP: Moody's Junks Rating on US$85MM Secured Term Loan
---------------------------------------------------------------
Moody's Investors Service downgraded all ratings of Targus Group
International, Inc., including the corporate family rating to
Caa1 and the rating outlook is negative. The rating downgrade
was prompted by Moody's concern regarding the sufficiency of the
revolving credit facility given the company's potential working
capital needs over the next four quarters, its weak operating
profitability, and its high interest burden. The negative
outlook recognizes that the ratings could again fall if
operating performance does not meaningfully improve or liquidity
concerns deepen.
Ratings downgraded:
-- US$230 million first-lien secured bank facilities to B2
(LGD-2, 25%) from Ba3;
-- US$85 million second-lien secured term loan to Caa2
(LGD-4, 69%)from B3;
-- Corporate family rating to Caa1 from B2;
-- Probability of Default Rating to Caa1 from B2.
The Caa1 corporate family rating of Targus reflects the high
fixed charge burden relative to Moody's medium-term expectations
for ongoing EBITDA, our belief that compliance will be tight as
bank loan covenants start to tighten in December 2007, and
Moody's concern about liquidity availability relative to working
capital that has proven to be volatile. Important quantitative
credit metrics, such as leverage, interest coverage, free cash
flow, and scale, are consistent with a low-rated issuer.
Potentially offsetting these risks are the revenue diversity
from a worldwide geographic footprint, three separate
distribution channels (retailers, original equipment
manufacturers, and computer distributors), and two product
categories (notebook cases and computer accessories) and the
favorable growth trends for notebook cases and computer
accessories as global notebook computer unit sales continue to
rapidly increase.
The negative rating outlook recognizes that immediate concerns
about financial performance would place downward pressure on the
ratings over the next 12 to 18 months, given the challenges in
meaningfully improving from current levels operating
performance, free cash flow, and credit metrics. Ratings will
decline if outflows for cash interest expense, capital
expenditures, and working capital cause continued free cash flow
deficits and permanent revolving credit facility utilization or
if collateral value declines. Given the negative outlook,
Moody's currently believes that an upgrade is unlikely.
Headquartered in Anaheim, California, Targus Group International
Inc. -- http://www.targus.com/-- supplies notebook carrying
cases and accessories. The company has offices on every
continent and distributes in over 145 countries including
Argentina, Barbados, Costa Rica and El Salvador.
=========
H A I T I
=========
BASIC ENERGY: Will Build Haitian Plant with Dominican Partners
--------------------------------------------------------------
Basic Energy head Rolando Gonzalez Bunster told Business News
Americas that the company and its Dominican Republic affiliates
will construct a 35-megawatt thermo plant in Haiti.
Mr. Gonzalez explained to Dominican daily Hoy that the US$50-
million plus, heavy fuel oil-fired plant will supply over 20% of
Haiti's national grid.
Hoy relates that the Haitian government chose E Power, a group
headed by Basic Energy -- in a bidding process for a contract to
construct the plant.
Headquartered in Texas, USA, Basic Energy Services, Inc.,
provides a range of well site services to oil and gas drilling
and producing companies, including well servicing, fluid
services, drilling and completion services, and well site
construction services. Basic Energy has four segments: well
servicing encompasses a range of services performed with a
mobile well servicing rig; fluid services provides transport,
store and dispose of a variety of fluids; drilling and
completion services provides oil and gas operators with a
package of services, and well site construction services employs
an array of equipment and assets to provide services for the
construction and maintenance of oil and gas production
infrastructure. In March 2007, it acquired JetStar Consolidated
Holdings, Inc.
In the Dominican Republic, Basic Energy controls power companies
Cepm, Cespm and Ege Haina.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on domestic oilfield services
provider Basic Energy Services Inc. At the same time, Standard
& Poor's assigned its 'BB' debt rating and '1' recovery rating
to the company's proposed US$225 million revolving credit
facility. S&P said the outlook remained positive.
=============
J A M A I C A
=============
NATIONAL COMMERCIAL: Earns US$1.6 Billion in Second Quarter 2007
----------------------------------------------------------------
Ashford W. Meikle at the Jamaica Gleaner reports that the
National Commercial Bank's increased to US$1.6 billion in the
second quarter 2007, from US$1.2 billion in the second quarter
2006.
The Gleaner's Mr. Meikle relates that the National Commercial's
net profit increased 32% year over year mainly due to the growth
in its income from its "non-core operations."
Mr. Meikle at The Gleaner notes that the National Commercial's
net interest income from loans and securities -- its "core
operations" -- increased by 8% to US$3.1 billion in the second
quarter 2007, compared to the same quarter in 2006.
The National Commercial's management said in a statement that
the group continues to concentrate more on increasing earning
assets quarter over quarter. According to The Gleaner's Mr.
Meikle, the National Commercial said in the past that it will
boost its loan portfolio.
The National Commercial's interest income from loans increased
by 5% to US$1.9 billion in the second quarter 2007, compared to
the second quarter 2006, The Gleaner's Mr. Meikle says. The
National Commercial's US$49-billion loan portfolio is 20% of its
US$234-billion asset base, compared to the almost 60% of its
assets concentrated in investment securities.
The Gleaner's Mr. Meikle reports that the National Commercial's
net fee and commission income increased by 23% to US$873 million
in the second quarter 2007, compared to the same quarter in
2006. In this year's second quarter, net trading income rose
78% to US$870 million, from last year's second quarter.
The Gleaner's Mr. Meikle says that the National Commercial's
other income increased to US$356 million in the second quarter
2007, compared to US$30 million in the second quarter 2006.
The National Commercial's expenses increased by 24% to US$3.2
billion in the second quarter 2007, from the same period in
2006. The bank's operating profit grew 29% to just over US$2
billion in the second quarter 2007, The Gleaner's Mr. Meikle
states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd. S&P said the outlook is stable.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2006, Fitch initiated rating coverage on Jamaica's
National Commercial Bank Jamaica, Ltd., by assigning 'B+'
ratings on the bank's long-term foreign currency. Other ratings
assigned by Fitch include: Long-term local currency at 'B+';
Short-term foreign currency at 'B'; Short-term local currency at
'B'; Individual at 'D'; Support at '4'.
Fitch said the ratings had a stable rating outlook.
NATIONAL WATER: St. Elizabeth Wants Explanation on Poor Service
---------------------------------------------------------------
Radio Jamaica reports that residents of housing developments in
Santa Cruz, St. Elizabeth, have asked the National Water
Commission's explanation on poor water distribution in their
communities.
The residents told Radio Jamaica that they have been
experiencing poor water distribution for years despite the
National Water's plans to set up new pumping facilities.
According to them, houses in high elevation are the most
affected. They claimed that the National Water has made very
little effort to solve the problem.
As reported in the Troubled Company Reporter-Latin America on
July 13, 2006, Lenworth Blake, a member of the parliament for
South East St. Elizabeth, criticized the National Water
Commission due to the shoddy service it offers to residents of
Southfield and neighboring communities. Mr. Blake said that the
problem on the delivery of piped water to Southfield has been
there for more than 30 years. Mr. Blake claimed that the
National Water hasn't kept pace with the delivery of trucked
water to the people. The National Water has also failed to take
appropriate action against illegal connections.
Radio Jamaica relates that the National Water has been working
for over four years to install a new water distribution system
to serve Santa Cruz and its adjoining districts. The system
isn't complete yet.
Kern Spencer, the Peoples National Party Caretaker for North
East St. Elizabeth, told RJR News that he would be working with
the Parliament member Roger Clarke for a new water system from
Rocky Hill.
Developers must properly check with relevant utility agencies to
determine whether or not services can be provided, Radio Jamaica
notes, citing Mr. Spencer.
Mr. Spencer told Radio Jamaica that if the new water system is
set up, the water problem of residents of Glenco, Olive Park,
Longwood and Bybrook and other communities can be alleviated as
proper planning could be put in place.
For now Mr. Spencer is asking the National Water to "truck
water" to Santa Cruz, Radio Jamaica states.
* * *
As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
* JAMAICA: Will Finalize Accord on Railway Corp.'s Privatization
----------------------------------------------------------------
Radio Jamaica reports that the government will still finalize a
sale agreement for the Jamaica Railway Corporation's
privatization.
According to Radio Jamaica, a series of negotiations has been
conducted for the firm's privatization. The government has
tried for almost 10 years to place the company in private hands.
The government admitted that activities for the privatization
haven't progressed as expected.
A report from the finance ministry on the revenue and
expenditure of public entities indicates that the government
will continue efforts to privatize the Jamaica Railway.
According to the report, the railway's operations have been
significantly reduced since the suspension of rail services in
October 1992.
The Jamaica Railway is carrying on limited activities on
maintenance of track, gate keeping and locomotive repairs, as
required under the Track User Agreement with WINDALCO. About
US$73 million is expected to be realized from these activities,
with total expenses of US$109 million, resulting in a deficit of
just under US$36 million, Radio Jamaica states.
* * *
As reported on Mar. 9, 2007, Standard & Poor's Ratings Services
affirmed its 'B' ratings on Jamaica's long-term and short-term
sovereign credit, with stable outlook.
===========
M E X I C O
===========
DAIMLERCHRYSLER AG: Chrysler Sale May Sabotage Marysville Deal
--------------------------------------------------------------
The Chrysler Group's US$700 million investment in Marysville and
the 1,000 jobs that come with it may unravel if DaimlerChrysler
AG's plan to sell the unit pushes through, Jim Bloch writes for
The Voice.
The TCR-Europe reported on April 19 that the Chrysler Group
will boost the Michigan economy with an investment of
US$1.78 billion, much of it to start a multi-product
"Powertrain Offensive." The initiative will consist of:
* US$730 million for a new plant in Trenton, Mich., to
produce the "Phoenix" family of V-6 engines;
* US$700 million in Marysville, Mich., to build a new axle
plant;
* US$300 million in the Sterling Heights (Mich.) Assembly
Plant (SHAP) to expand its paint shop; and
* US$50 million for retooling of Warren Truck Assembly Plant
and Warren Stamping Plant for future product.
The new axle plant in Marysville will incorporate engineering
and development for the creation of a new family of axles that
provide better fuel economy. In addition, the common axle will
allow the company to consolidate the number of axles for better
economies of scale.
The city of Marysville is planning to buy the property for US$3
million, annex it from the township, and then give the land to
Chrysler, The Voice relates. However, the deal to build the
axle plant in Marysville could fall through in the event of
Chrysler's sale. The agreement includes a hold-harmless clause,
under which the city would get its money back for the property
and any other ancillary expenses should something go haywire.
The Economic Development Alliance of St. Clair County, which
played a key role in putting the deal together, currently
controls the option on the farmland, The Voice states. The city
hopes to regain its investment through Chrysler's taxes in the
next three to five years.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- http://www.daimlerchrysler.com/-- develops,
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
DELTA AIR: Exit Chap. 11 with US$2.5 Billion Financing Facility
---------------------------------------------------------------
Delta Air Lines (NYSE: DAL.WI) has emerged from Chapter 11
positioned to compete aggressively around the globe with a
best-in-class cost structure and balance sheet, a diversified
global network, a renewed focus on the customer experience, and
a workforce with a substantial financial stake in the company's
future.
Following a successful and efficient 19-month restructuring,
Delta has fundamentally transformed its business and is
positioned to emerge as a top-tier performer financially and
operationally. Among the company's restructuring
accomplishments, Delta:
-- Completed a comprehensive transformation plan one year
ahead of schedule, delivering US$3 billion in annual
financial improvements;
-- Reported four consecutive quarters of operating profits,
with US$155 million in operating profit in the first
quarter of 2007;
-- Achieved the lowest mainline non-fuel CASM (excluding
special items) of the network carriers in 2006;
-- Reduced the revenue gap with the industry - Delta's
length of haul adjusted PRASM was 95 percent of the
industry average in the first quarter of 2007 - up from
87 percent for the same quarter in 2005; and
-- Is projected to reduce net debt by more than 50 percent,
from US$16.9 billion at June 30, 2005, to a projected
US$7.6 billion at the end of 2007.
In celebrating the company's recent achievements, Delta Chief
Executive Officer Gerald Grinstein said: "This is a great day in
Delta's history -- a day that would not have been possible
without the hard work and sacrifice of Delta people around the
world. Through our restructuring we have successfully repaired
our balance sheet, improved the customer experience, expanded
our international route system and built a platform for future
success. Delta is now a fierce competitor in a tough industry
and we are confident that we will reclaim our rightful place as
an industry leader.
"Emergence from bankruptcy is not the end of a journey; instead,
it is the beginning of a new and prosperous era at Delta. Many
challenges are ahead - and, thanks to our successful
restructuring, we are stronger and better positioned to meet
them," Grinstein continued.
The U.S. Bankruptcy Court for the Southern District of New York
approved Delta's exit from bankruptcy on April 25 when it
entered an order confirming Delta's Plan of Reorganization. To
conclude the exit process, Delta will close on a US$2.5 billion
exit financing facility that will be used to repay the company's
US$2.1 billion debtor-in-possession credit facilities led by GE
Capital and American Express, to make other payments required
upon exit from bankruptcy, and to increase its already strong
liquidity position. The exit facility was co-led by ten
financial institutions -- JPMorgan, Goldman Sachs & Co., Merrill
Lynch, Lehman Brothers, UBS, Barclays Capital, Royal Bank of
Scotland, CIT, Credit Suisse and Calyon -- and consists of an
industry leading US$1 billion first-lien revolving credit
facility, a US$600 million first-lien synthetic revolving
facility, and a US$900 million second-lien Term Loan B. The
facility is secured by substantially all of the first-priority
collateral in the previous debtor-in-possession facilities.
Delta's restructuring success builds on more than five years of
change at Delta that has delivered more than US$8 billion in
annual cost and revenue improvements to the company.
"Rather than simply cut costs, Delta used the Chapter 11 process
to completely transform every aspect of our business and create
a platform for long-term success that will enable us to weather
future volatility in the airline industry," said Edward H.
Bastian, Delta's chief financial officer. "With a best-in-class
cost structure, improving revenue performance and a strong
financial foundation, we are exiting Chapter 11 in a position of
strength and are ready to build on this momentum."
Delta's operational improvements have focused on enhancing the
customer experience and creating a stronger, more balanced
network as a result of the addition of more than 60 new
international routes.
"In just over 19 months we have undertaken the largest
international expansion in Delta's history," said Jim
Whitehurst, Delta's chief operating officer. "Today, Delta
takes customers to more places than any other airline and is the
leading carrier between the U.S. and trans-Atlantic
destinations.
"Even in the midst of our turnaround, our employees continued
to focus on the customer and the operation. Delta employees
delivered stellar performance in on-time arrivals and customer
service last year. In fact, Delta ranked in the top two in the
2006 J.D. Power North America Airline Satisfaction Study,"
continued Whitehurst.
In accordance with Delta's prior announcements and as required
by the Plan of Reorganization approved by the Bankruptcy Court,
Delta's pre-plan common stock (which had traded over the counter
with the symbol DALRQ) will be cancelled (effective at 9 a.m.
April 30, 2007). Holders of the pre-plan common stock will not
receive a distribution of any kind under the Plan of
Reorganization.
The company will issue new shares of Delta common stock in
payment of bankruptcy claims and as part of a post-emergence
compensation program for Delta employees. These new shares will
be issued in early May 2007. The new shares have been approved
for listing on the New York Stock Exchange. Trading on the NYSE
commenced April 26, 2007, on a "when issued" basis (DAL.WI), and
"regular way" trading is anticipated to begin on May 3, 2007
under the symbol DAL.
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.
FORD MOTOR: Posts US$282 Million Net Loss in 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," 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 US$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 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 US$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 USUS$3-billion of senior convertible notes
due 2036.
GENERAL MOTORS: Halts Vehicle Development Programs in Two Plants
----------------------------------------------------------------
General Motors Corp. suspended development activities on
vehicles at its Fairfax, Kan., and Lordstown, Ohio, plants after
the United Auto Workers union backed out of negotiations on cost
cuts at the facilities, John D. Stoll and Jeffrey McCracken of
The Wall Street Journal report.
According to WSJ, the suspended programs include the Epsilon
midsize-car program and the Delta compact-car program.
Sharon Terlep of The Detroit News relates that the stoppage came
after the UAW ordered its local negotiating teams to stop
bargaining with the company on work rules designed to make the
factories more competitive specially with the automaker's
Japanese rivals.
"The management and union leadership at both Lordstown and
Fairfax are in discussions about improving the competitiveness
of both plants and putting both plants in a better position to
secure future products," Detroit News cited GM spokesman Dan
Flores as saying.
CEO Takes the Challenge to Beat Toyota's Sales
In response to Toyota Motor Corp.'s disclosure early last week
that it topped GM in quarterly sales for the first time, GM
Chairman and Chief Executive Rick Wagoner vowed to "fight hard
for every sale," the Associated Press said.
AP cited Mr. Wagoner as saying that GM's business strategies
around the globe were working and would help the auto
manufacturer succeed.
"We still have the majority of the year in front of us, and we
will fight hard for every sale -- all the while staying focused
on our long-term goals as a global, growing company," Mr.
Wagoner said in an email obtained by AP.
Toyota said it sold 2.35 million vehicles world-wide in the
first quarter of 2007, AP said, citing preliminary figures.
Early this month, GM said in a press statement that for the
first quarter of 2007, the company delivered 909,094 vehicles, a
decline of 5.6%, driven by reductions of almost 60,000 daily
rental vehicle sales. GM's retail sales for the first quarter
of 2007 were up 0.5%. The reductions in fleet sales have
resulted in a significant improvement in the retail/fleet mix,
the company explained.
In addition, GM Latin America, Africa and Middle East region set
a new first quarter sales record in 2007, selling over 269,000
vehicles, up approximately 39,000 units over the same period
last year. GM said its quarterly market share in the region
increased 0.2% to 16.3%.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader for 76 years. GM currently employs about 280,000 people
around the world. GM manufactures its cars and trucks in 33
countries. In 2006, nearly 9.1 million GM cars and trucks were
sold globally under these brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.
* * *
As reported in the Troubled Company Reporter on Dec. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with negative implications, where
they were placed March 29, 2006. S&P said the outlook is
negative.
As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
US$1.5 billion secured term loan of General Motors Corp.
As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
US$1.5 billion secured term loan of General Motors Corp.
GRUPO IUSACELL: Post MXN1.2 Bil. Net Loss in 2007 First Quarter
---------------------------------------------------------------
Grupo Iusacell, S.A. de C.V. disclosed its financial results for
the first quarter 2007.
"As compared with first quarter of 2006, the company's EBITDA
experienced remarkable growth during this first quarter of 2007
as a result of increased revenues and a firm control over all
expense items," noted Iusacell CEO Gustavo Guzman. "We are
confident our solid results will receive a very significant
additional boost from the merger with Unefon Holdings, recently
approved by our shareholders."
Recent events
As reported in the Troubled Company Reporter-Latin America on
Apr 2, 2007, the shareholders approved the merger between Grupo
Iusacell, which will remain as the merger, and Unefon Holdings,
as merged entity, and the agreements were reached for said
execution.
First Quarter Results
Net Revenues
In the first quarter of 2007 net income grew 9% to MXN2,053
million, compared with MXN1,887 million during the first quarter
2006. The increase was mainly driven by:
(i) revenue growth from subscription services generated by
an increase in the subscriber base,
(ii) a rise in roaming revenues and
(iii) revenue derived from the "Nationwide Calling Party Pays"
plan (which did not exist in the first quarter of 2006).
Grupo Iusacell ended the first quarter of 2007 with
approximately 2.2 million subscribers.
Cost and Expenses
During the quarter, total costs increase 11% to MXN1,276
million, from MXN1,147 million in first quarter 2006. The
increase in total costs is mainly the result of
(i) increased cost of handset subsidies and
(ii) new interconnection costs derived from the "Nationwide
Calling Party Pays" plan.
Operating expenses decreased 12% during the first quarter to
MXN401 million, compared with MXN453 million reported for the
same year-ago period. The reductions resulted mostly from:
(i) personnel expense cuts,
(ii) reduced professional fee expenses and
(iii) reductions in repair and maintenance expenses.
Operating income Before Depreciation and Amortization
Earnings Before Interest, Tax, Depreciation and Amortization
increased 31% during the quarter, to MXN377 million, compared
with MXN287 million for the same period in 2006.
Total Financing Costs
Total Financing Costs fell 30% during the first quarter of 2007
to MXN384 million, compared with the MXN547 million posted for
the same year-ago period. The TFC reduction was mainly the
result of the following:
(i) a reduction in the loss caused by fluctuation of the
Mexican Peso rate against the U.S. dollar and
(ii) lower interest expenses as a result of debt
restructuring.
Said items were partially offset by lower financial gains and a
loss caused by the valuation of derivative financial instruments
Non-recurring items
The company decided to charge MXN804 million against first
quarter results corresponding to transmission cells being
replaced by EV-DO technology (Evolution-Data Optimized), which
provides greater advantages in the transmission of voice, video
and data.
Net Loss
During the first quarter, the company posted a net loss of
MXN1,238 million, 142% higher than the MXN512 million net loss
posted in the first quarter 2006.
Capital Expenditures
During first quarter 2007, the company invested approximately
US$22 million, mainly in the expansion of coverage and capacity
for the Iusacell 3-G network and EV-DO services.
Other Events
On April 12, the company announced that the 7th District Court
on Civil Matters of Mexico City returned a verdict granting
final approval to the Convenio Concursal entered into between
Iusacell and its creditors, giving rise to subsequent
proceedings derived from said judgment, including the process
for the issuance of the new notes.
About Grupo Iusacell
Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV
(BMV: CEL) -- http://www.iusacell.com-- is a wireless cellular
and PCS service provider in Mexico with a national footprint.
Independent of the negotiations towards the restructuring of its
debt, Grupo Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, including its new 3G network, throughout all of the
regions in which it operate.
As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit
widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000
at Dec. 31, 2004.
Grupo Iusacell filed for bankruptcy protection on June 18 under
Mexican Law to prevent creditors from disrupting its debt
restructuring talks. On July 14, 2006, Gramercy Emerging
Markets Fund, Pallmall LLC and Kapali LLC, owed an aggregate
amount of US$55,878,000 filed an Involuntary Chapter 11 Case
against Grupo Iusacell's operating subsidiary, Grupo Iusacell
Celular, SA de CV (Bankr. S.D.N.Y. Case No. 06-11599). Alan M.
Field, Esq., at Manatt, Phelps & Phillips, LLP, represents the
petitioners. Iusacell Celular then filed for bankruptcy
protection under Mexican Law on July 18.
The involuntary petition in the United States was dismissed in
December 2006.
===========
P A N A M A
===========
BANCO LATINOAMERICANO: Moody's Lifts Fin'l Strength Rating to D+
----------------------------------------------------------------
Moody's Investors Service has confirmed that it raised its bank
financial strength rating on Banco Latinoamericano de
Exportaciones, SA aka Bladex to D+ from D-, in connection with
the rating agency's implementation of its refined joint default
analysis and updated BFSR methodologies for banks in Panama.
The Foreign Currency Deposit, Senior Unsecured Debt, and Issuer
Ratings are affirmed at Baa3, based on the support of its main
shareholder group, the 23 countries of Latin America and the
Caribbean. Because Bladex is a supranational and a US dollar-
based bank, Moody's believes the bank would not be considered
for extraordinary support from any particular central bank in
the region.
The updated BFSR methodology has benefited the BFSRs of Bladex,
a supranational bank. Solidly improving financial fundamentals
combined with a benign operating and regulatory environment in
the region have been the main drivers of the BFSR upgrades of
each of these banks.
Moody's assigns support levels to banks in Panama using its
fully dollarized country support guideline and Baa2 local and
foreign currency deposit ceilings. The country support
guideline takes into consideration the historic evidence of
support for banks in addition to the size, strength, and the
degree of fragmentation of the Panamanian banking system.
Because of Panama's legal dollarization regime, the guideline
also takes into account the very limited availability of direct
support for banks because of the lack of a true lender of last
resort.
BFSRs evaluate the stand-alone or intrinsic financial strength
of banks without reference to external support factors. BFSRs
are the starting point of Moody's bank credit analysis, and are
an important determinant of Moody's bank deposit and debt
ratings.
Moody's then uses its JDA methodology to incorporate the
potential for external support into a bank's local currency
deposit rating. The potential for external support can reduce
the riskiness of a bank's deposit and debt obligations; however,
such support is often uncertain. Moody's uses conservative
support assumptions and a limited number of support levels to
ensure that sufficient weight is given to a bank's intrinsic
financial strength in its bank deposit and debt ratings.
Moody's uses deposit ratings to determine bank debt ratings
based on its notching guidelines for bank securities. Ratings
for foreign currency obligations are determined after
considering Moody's country ceilings for foreign currency
ratings.
The methodologies are being implemented country by country, with
results being announced on a weekly basis. Results for those
banks with a parent bank located in another country where the
methodologies have not yet been implemented will be concluded at
the same time as that of the parent.
Headquartered in Panama City, Panama, Banco Latinoamericano de
Exportaciones, SA aka Bladex -- http://www.bladex.com-- is a
supranational bank originally established by the Central Banks
of Latin American and Caribbean countries to promote trade
finance in the Region. The bank's shareholders include central
banks and state- owned entities in 23 countries in the Region,
as well as Latin American and international commercial banks,
along with institutional and retail investors. Through
Dec. 31, 2005, Bladex had disbursed accumulated credits of over
US$135 billion.
=======
P E R U
=======
DOE RUN: La Oroya Miners Join Nationwide Strike
-----------------------------------------------
Luis Castillo, the president of the National Federation of
Metallurgic and Steel Miners, which is made up of 74 unions and
representing about 28,000 of Peru's 100,000 mine workers, said
that most of its members have staged a strike beginning 1 a.m.
on April 30 after talks with the government failed.
The miners have demanded higher wages and better pensions as
rising metal prices generate record earnings for mining
companies. Peru is among the world's top two silver producers,
and is No. 3 in copper and zinc and No. 5 in gold.
According to Reuters, one of the union federation's demands is
that President Alan Garcia fulfill campaign pledges to eliminate
outsourcing among mining companies. Union leaders have said
this was the main sticking point in talks.
Roque Benavides, chief executive officer of Cia. de Minas
Buenaventura SA, Peru's leading locally owned precious metals
producer, was quoted by Bloomberg News as saying that the
nationwide strike may spark a rally in metal prices this week.
Officials of the National Society of Mining, Petroleum and
Energy, told Reuters that the strike would only partially
disrupt operations.
Workers of the country's largest mine, Antamina, have not joined
the strike because they don't belong to the mining federation,
Reuters relates.
Union members of Doe Run's La Oroya poly-metallic smelter have
joined the strike.
About Doe Run Resources
Based in St. Louis, Mo., The Doe Run Company --
http://www.doerun.com/-- is a privately held natural resources
company dedicated to environmentally responsible mineral
production, metals fabrication, recycling and reclamation. The
company and its subsidiaries deliver products and services
needed to provide power, protection and convenience through
premium products and associated metals including lead, zinc,
copper, gold and silver. As the operator of one of the world's
only multi-metal facilities and the Americas' largest integrated
lead producer, Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.
Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold. Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.
Going Concern Doubt
Crowe Chizek and Company LLC raised substantial doubt about Doe
Run Peru's ability to continue as a going concern after auditing
the consolidated balance sheets of The Doe Run Resources
Corporation and subsidiaries as of Oct. 31, 2005, and 2004. Doe
Run Peru has not filed financial reports for fiscal year ended
Oct. 31, 2006.
Crowe Chizek pointed to Doe Run Peru's significant capital
requirements under environmental commitments, which, if not met,
could result in defaults of the company's credit agreements; has
substantial contingencies related to tax; and has significant
debt service obligations.
At Dec. 31, 2005, The Doe Run Resources' balance sheet showed
US$167,905,000 of stockholders' deficit.
GRUPO MEXICO: Peruvian Unit Faces Nationwide Mining Strike
----------------------------------------------------------
Luis Castillo, the president of the National Federation of
Metallurgic and Steel Miners, which is made up of 74 unions and
representing about 28,000 of Peru's 100,000 mine workers, said
that most of its members have staged a strike beginning 1 a.m.
on April 30 after talks with the government failed.
The miners have demanded higher wages and better pensions as
rising metal prices generate record earnings for mining
companies. Peru is among the world's top two silver producers,
and is No. 3 in copper and zinc and No. 5 in gold.
According to Reuters, one of the union federation's demands is
that President Alan Garcia fulfill campaign pledges to eliminate
outsourcing among mining companies. Union leaders have said
this was the main sticking point in talks.
Roque Benavides, chief executive officer of Cia. de Minas
Buenaventura SA, Peru's leading locally owned precious metals
producer, was quoted by Bloomberg News as saying that the
nationwide strike may spark a rally in metal prices this week.
Officials of the National Society of Mining, Petroleum and
Energy, told Reuters that the strike would only partially
disrupt operations.
Workers of the country's largest mine, Antamina, have not joined
the strike because they don't belong to the mining federation,
Reuters relates.
About Southern Copper Corporation
Headquartered in Phoenix, Ariz., Southern Copper Corporation
produces copper, molybdenum, zinc, and silver. It engages in
mining, milling, and flotation of copper ore to produce copper
concentrates and molybdenum concentrates; the smelting of copper
concentrates to produce anode and blister copper; and the
refining of blister/anode copper to produce copper cathodes.
The company also engages in the mining and processing of gold
and lead, as well as produces refined copper using SX/EW
technology. It operates the Toquepala and Cuajone mines in the
Andes Mountains, which is located approximately 984 kilometers
southeast of the city of Lima, Peru; and a smelter and refinery
west of the Toquepala and Cuajone mines in the coastal city of
Ilo, Peru. Southern Copper Corporation has its mining,
smelting, and refining operations in Peru and Mexico, as well as
exploration operations in Chile.
About Grupo Mexico
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'. Fitch said the rating outlook is stable.
=====================
P U E R T O R I C O
=====================
GAMESTOP CORP: Earns US$158.3 Million for Year Ended February 3
---------------------------------------------------------------
GameStop Corp. released its unaudited financial results for the
full year and fourth quarter ended Feb. 3, 2007.
GameStop posted US$158.3 million in net profit on US$5.32
billion in net revenues for the year ended Feb. 3, 2007,
compared with US$100.8 million in net profit on US$3.09 billion
in net revenues for the year ended Jan. 8, 2006.
GameStop posted US$129.8 million in net profit on US$2.3 billion
in net revenues for the fourth quarter ended Feb. 3, 2007,
compared with US$85.0 million in net profit on US$1.67 billion
in net revenues for the fourth quarter ended Jan. 8, 2006.
As of Feb. 3, 2007, GameStop had US$3.35 billion in total
assets, US$1.97 billion in total liabilities, and US$1.38
billion in total shareholders' equity.
"2006 was a remarkable year for GameStop," Richard Fontaine,
GameStop's Chairman and Chief Executive Officer, said. "During
the year we successfully and fully integrated over 2,000 EB
Games stores into the GameStop portfolio and opened 421 new
stores worldwide; 276 in the United States and 145 in the
international divisions. In fact, our internal rate of return
for new stores was the highest ever and, in aggregate,
significantly exceeded plan.
"While we are in the very early stages of another strong growth
cycle, it is not a mirror of the past," Mr. Fontaine added. "In
fact, our 2007 guidance is based on our belief that this cycle
will be deeper, wider, and longer than any previous period of
new console introductions. From the technology powerhouses of
Xbox 360 and PS3, to the uniquely engaging ease of play and
inventiveness of the Wii, to the portability of the DS Lite, to
the value of the PS2, there is a product and a price range to
stimulate the core and casual gamer, and attract new customers
to the video game experience."
Outlook for Fiscal Year 2007
For fiscal 2007 ending Feb. 2, 2008, sales are projected to grow
between 19.0% and 21.0%, with comparable store sales ranging
from +14.0% to +16.0%, backed by a strong release slate of video
game titles across all platforms. Diluted earnings per share
for the full year are expected to range from US$1.37 to US$1.40.
GameStop expects to open between 500-550 stores worldwide in
2007.
For the first quarter of fiscal 2007, the company expects
comparable store sales to range from +12.0% to +14.0%, driven by
the expected launches of Sony's PlayStation 3 in Europe and
Australia, Sony's GOD OF WAR II for the PlayStation 2 in the
U.S., the worldwide launch of Nintendo's POKEMON DIAMOND and
PEARL for the Nintendo DS, as well as continued strong demand
for Microsoft Xbox 360 titles. Diluted earnings per share are
expected to range from US$0.15 to US$0.16. This compares to
earnings per share of US$0.07 in the first quarter of 2006.
Based on expected strong video game industry fundamentals, the
company's expanding worldwide retail portfolio, and sound cash
generation, GameStop currently expects earnings per share to
grow at least 25% annually in fiscals 2008 and 2009.
About GameStop Corp.
Headquartered in Grapevine, TX, GameStop Corp. retails video
game and entertainment software. The company operates 4,778
retail stores in the U.S., Puerto Rico, Ireland, Australia,
Canada, Denmark, Germany, Guam, Italy, New Zealand, Norway, and
Sweden.
* * *
GameStop carries a Ba3 Corporate Family and a B1 Probability-of-
Default ratings from Moody's Investor Service.
The company also carries a B+ Corporate Credit Rating from
Standard & Poor's Ratings Services. S&P said the outlook is
positive.
SALLY BEAUTY: Picks Gregory Coffey as New Vice Pres. & Treasurer
----------------------------------------------------------------
Sally Beauty Holdings Inc.'s Board of Directors has named J.
Gregory Coffey as Vice President & Treasurer, reporting to David
Rea, Senior Vice President and Chief Financial Officer. Mr.
Coffey will oversee the capital markets activities of the
Company, as well as cash management, risk management and
financial planning and analysis.
Mr. Coffey brings 19 years of treasury and finance experience to
the Company and most recently served as Chief Financial Officer
of Dean & Deluca, Inc. in Wichita, Kansas. Prior to that, Mr.
Coffey was Vice President & Treasurer of Pier 1 Imports (U.S.),
Inc. Mr. Coffey also held management positions in finance and
treasury at Electronic Data Systems Corporation and American
Airlines, Inc. Mr. Coffey is a graduate of the University of
Central Arkansas and earned his MBA degree from Vanderbilt
University.
Headquartered in Denton, Texas, Sally Beauty Holdings, Inc.
(NYSE:SBH) -- http://www.sallybeautyholdings.com/-- retails and
distributes beauty supplies with operations under its Sally
Beauty Supply and Beauty Systems Group businesses. The company
has stores in Canada, Mexico, Puerto Rico, the U.K., Ireland,
Germany and Japan.
As of Dec. 31, 2006, the company's balance sheet showed a
stockholders' deficit of US$836,209,000, compared to a
stockholders' equity of US$1,005,967,000 at Sept. 30, 2006.
* * *
As reported in the Troubled Company Reporter on Oct. 26, 2006,
Moody's Investors Service assigned first time ratings, including
a corporate family rating of B2 and a speculative grade
liquidity rating of SGL-2, to Sally Holdings, LLC.
Moody's said the rating outlook is stable. The ratings are
conditional upon review of final documentation.
These were the rating actions:
-- Corporate family rating at B2
-- Probability-of-default rating at B2
-- US$400 million senior secured guaranteed bank revolving
credit facility at Ba2 (LGD 1, 7% LGD rate)
-- US$1.07 billion senior secured guaranteed term loans at
B2 (LGD 4, 50% LGD rate)
-- US$430 million senior unsecured guaranteed notes at B2
(LGD 4, 55% LGD rate)
-- US$280 million unsecured senior subordinated guaranteed
notes at Caa1 (LGD 6, 93% LGD rate)
-- Speculative Grade Liquidity Rating of SGL-2
=================
V E N E Z U E L A
=================
ARVINMERITOR INC: Board Declares 10 Cents Per Share Dividend
------------------------------------------------------------
The ArvinMeritor Inc.'s Board of Directors, at a meeting held on
April 27, 2007, at its corporate headquarters, declared a
quarterly dividend of US$0.10 per share on the common stock,
payable June 11, 2007, to holders of record at the close of
business on May 21, 2007.
Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM)
-- http://www.arvinmeritor.com/-- is a premier US$8.8
billion global supplier of a broad range of integrated systems,
modules and components to the motor vehicle industry. The
company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets. ArvinMeritor employs approximately 29,000 people
at more than 120 manufacturing facilities in 25 countries.
These countries are: China, India, Japan, Singapore, Thailand,
Australia, Venezuela, Brazil, Argentina, Belgium, Czech
Republic, France, Germany, Hungary, Italy, Netherlands, Spain,
Sweden, Switzerland, United Kingdom, among others. ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.
* * *
As reported in the Troubled Company Reporter on Feb. 12,
Dominion Bond Rating Service assigned a rating of BB (low) to
the US$175 million Convertible Senior Unsecured Notes of
ArvinMeritor Inc. The trend is Stable.
As reported on on Feb. 6, Moody's Investors Service has
downgraded ArvinMeritor's Corporate Family Rating to Ba3 from
Ba2. Ratings on the company's secured bank obligations and
unsecured notes were lowered one notch as a result.
Ratings lowered:
ArvinMeritor Inc.
-- Corporate Family Rating to Ba3 from Ba2
-- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3,
LGD-2, 18%
-- Senior Unsecured notes to B1, LGD-4, 65% from Ba3,
LGD-4, 64%
-- Probability of Default to Ba3 from Ba2
-- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3,
LGD-4, 64%
Arvin Capital I
-- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96%
Arvin International PLC
-- Unsecured notes guaranteed by ArvinMeritor Inc. to B1,
LGD-4, 65% from Ba3, LGD-4, 64%
Ratings affirmed:
ArvinMeritor Inc.
-- Speculative Grade Liquidity rating, SGL-2
DAIMLERCHRYSLER AG: UAW Doesn't Favor Magna as Chrysler's Buyer
---------------------------------------------------------------
United Auto Workers President Ron Gettelfinger has denied
reports that the union endorsed Magna International Inc. as its
preferred buyer for DaimlerChrysler AG's Chrysler Group, adding
that the UAW maintains its stand against the unit's sale, John
D. Stoll writes for Dow Jones Newswires.
According to the report, Mr. Gettelfinger explained that the
Detroit News misquoted Canadian Auto Workers representative
Jerry Dias as saying the UAW was on board with such a plan. Mr.
Gettelfinger further said the union isn't playing favorites and
hasn't expressed support for Magna or any of Chrysler's
potential buyers. The UAW and CAW are not affiliated although
they both represent Chrysler workers in North America.
The TCR-Europe reported on April 24 that DaimlerChrysler's top
leaders, including Chief Executive Dieter Zetsche, plans to meet
with labor groups, who plan to ask about the company's strategic
review of Chrysler and the status of talks with three other
groups, WSJ reveals. Mr. Zetsche faces pressure from
shareholders who are concerned that Chrysler, with its
US$18 billion unfunded health-care liabilities and recent
operating losses, is pulling down the company's profitable
Mercedes-Benz luxury-car business.
The UAW, however, is not taking things lying down.
"We have established what we refer to as a war room where we
have our people taking a look and monitoring every conceivable
situation at Daimler," Mr. Gettelfinger said. "We have publicly
[and] repeatedly said that we feel like we could make the case
why DaimlerChrysler should keep the Chrysler Group."
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- http://www.daimlerchrysler.com/-- develops,
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
FERRO CORP: Paying 14.5 Cents Per Share Dividend Due June 8
-----------------------------------------------------------
Ferro Corporation's Board of Directors has declared a regular
quarterly dividend of 14.5 cents per share of common stock. The
dividend is payable on June 8, 2007 to shareholders of record on
May 15, 2007.
Headquartered in Cleveland, Ohio, Ferro Corp. (NYSE:FOE) --
http://www.ferro.com/-- supplies technology-based performance
materials for manufacturers. Ferro materials enhance the
performance of products in a variety of end markets, including
electronics, telecommunications, pharmaceuticals, building and
renovation, appliances, automotive, household furnishings, and
industrial products. The company has approximately 6,800
employees globally. In Latin America, the company has
operations in Argentina, Brazil, Mexico and Venezuela.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on Ferro Corp. and raised the
senior debt rating to 'B+' from 'B'. The ratings are removed
from CreditWatch, where they were placed Nov. 18, 2005, with
negative implications. S&P said the outlook is stable.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, 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 * * *