T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, May 10, 2007, Vol. 8, Issue 92 Headlines A R G E N T I N A DANA CORP: Wants Section 1113/1114 Ruling Deferred Until May 31 DANA CORP: Wants Open-Ended Deadline to Remove Court Actions EL PASO: Assessment for Brazilian Wells Will be Ready in 3Q EL PASO: Reports US$629 Mil. Net Income in Qtr. Ended March 31 FIRST LINE: Proofs of Claim Verification Deadline Is July 3 TENNECO INC: Eight Directors Re-Elected at 2007 Annual Meeting B A R B A D O S ANDREW CORPORATION: Posts US$2 Mil. Net Loss in Second Qtr. 2007 B E R M U D A ANNUITY & LIFE: Reports US$58,948 Net Income in First Quarter FOSTER WHEELER: Five-Year Credit Facility Increased to US$100MM SCOTTISH RE: MassMutual Deal Cues A.M Best to Up Ratings SCOTTISH RE: Fitch Changes Outlook on Low B Ratings to Positive SEA CONTAINERS: Seeking Court Okay for Unsec. Creditors' Funding SEA CONTAINERS: Wants Court to Set July 16 as Claims Bar Date TEKSID ALUMINUM: Moody's Confirms Junk Ratings B O L I V I A COEUR D'ALENE: Earns US$14 Million Net Income in 2007 First Qtr. B R A Z I L AMERICAN TOWER: Earns US$22 Mil. in First Quarter Ended March 31 AMSTED INDUSTRIES: Moody's Lifts Corporate Family Rating to Ba3 ARMOR HOLDINGS: Inks US$4.1 Billion Sale Pact with BAE Systems ARMOR HOLDINGS: S&P Places Watch to Positive on BAE Acquisition BANCO ITAU: First Qtr. Net Income Profit Increased to BRL1.90B DELPHI CORP: Court Extends Lease-Decision Period Until Sept. 30 DELPHI CORP: Posts US$63 Million Net Loss in March 2007 DELPHI CORP: Section 1113/1114 Conference Set for May 23 FENDER MUSICAL: Moody's Puts B2 Rating on US$200-Mln Senior Loan GOL LINHAS: Prudential Financial Pares Shares to Neutral Weight NRG ENERGY: Pursues Refinancing to Support Capital Share Plan USINAS SIDERURGICAS: Analyst Sees BRL819MM First Qtr. Net Income C A Y M A N I S L A N D S NAUTILUS EUROPE: Sets Final Shareholders Meeting for May 30 P RETOS: Proofs of Claim Filing Deadline Is Today P RETOS INVESTMENT: Proofs of Claim Filing Is Until Today P RETOS INVESTMENT (CAYMAN): Proofs of Claim Filing Ends Today SPHINX: Liquidators Can't Get Info from Europe Using U.S. Law C H I L E BUCYRUS INT'L: Completes DBT GMBH Purchase for US$731 Million CONSTELLATION BRANDS: Moody's Puts Ba3 Rating on US$700MM Notes EASTMAN KODAK: Posts US$151 Million Net Loss in First Qtr. 2007 EASTMAN KODAK: Sells China Assets to Xiamen Land for US$40 Mil. EASTMAN KODAK: Taps Dale Patterson to Lead Packaging Segment C O L O M B I A ARMOR HOLDINGS: BAE Merger Pact Cues Moody's to Review Ratings ARMOR HOLDINGS: Prudential Downgrades Shares to Neutral Weight ARMOR HOLDINGS: Stifel Nicolaus Downgrades Firm's Shares to Hold BANCOLOMBIA: Board Resolves Terms of Proposed Issuance of Bonds BANCOLOMBIA: Says Loan Growth Will Slow Down to 20% This Year PARKER DRILLING: First Quarter Net Profit Rises to US$30 Million G U A T E M A L A BRITISH AIRWAYS: To Launch Consortium Bid for Iberia This Week BRITISH AIRWAYS: Inks Strategic Partnership with HEICO Aerospace J A M A I C A AIR JAMAICA: Govt's Air Services Pact with UK Won't Hurt Airline DYOLL INSURANCE: Coffee Farmers Hold Protest on Payment Delay SUGAR COMPANY: Bruce Golding Says Asset Divestment Not Working SUGAR COMPANY: Gets Five More Bids for Factories WEST CORP: Moody's Pares B1 Ratings on US$2.6-Bln Secured Loans M E X I C O BELL MICROPRODUCTS: Signs Distribution Pact with Fabrik Inc. CLEAR CHANNEL: In Talks with Equity Group on Amended Merger Deal CLEAR CHANNEL: Units Ink Asset Purchase Deal with GoodRadio.TV DOMINO'S PIZZA: March 25 Balance Sheet Upside-Down by US$561MM EMPRESAS ICA: Seeks US$25-Million Financing from Int'l Finance FORD MOTOR: To Halt Cleveland Casting Plant Operations in 2009 GLOBAL POWER: Selects BDO Seidman as Auditors GLOBAL POWER: Wants to Issue EUR1.1 Mill. L/C from DIP Facility GLOBAL POWER: Ct. Extends Lease Decision Period Until June 2007 HIPOTECARIA CREDITO: To Launch Mortgages with AIG & Genworth PORTRAIT CORP: Plan Confirmation Hearing Scheduled for May 21 VITRO SAB: Finacity Assists Trade Deal Extension for U.S. Unit P U E R T O R I C O ADVANCED CARDIOLOGY: Files Disclosure Statement in Puerto Rico HC CARIBBEAN: Proofs of Claim Must be Filed by Aug. 22 HC CARIBBEAN: Section 341(a) Meeting Slated for May 24 PILGRIM'S PRIDE: Incurs US$40 Mil. Net Loss in Second Qtr. 2007 T R I N I D A D & T O B A G O BRISTOW GROUP: Board Declares US$0.68750 Per Share Dividend U R U G U A Y WORLDSPAN LP: Inks Strategic Deals with Sua Viagem & Confianca V E N E Z U E L A DAIMLERCHRYSLER: Chrysler Launches Ad Campaign to Define Brand PEABODY ENERGY: Taps Jeanne Hull as Senior VP-Technical Services PETROLEOS DE VENEZUELA: Assures Payments to Workers PETROLEOS DE VENEZUELA: Will Continue Exploring Gas in Gambia * VENEZUELA: ABN Amro Lowers Exposition to Country's Bonds * VENEZUELA: Analysts Say Bank Nationalization Won't Materialize * VENEZUELA: ConocoPhillips Says Agreement with Gov't Possible * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= DANA CORP: Wants Section 1113/1114 Ruling Deferred Until May 31 --------------------------------------------------------------- Dana Corp. and its debtor-affiliates, the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America and the United Steelworkers delivered to the United States Bankruptcy Court a joint letter asking the Hon. Burton Lifland to defer ruling on their Section 1113/1114 disputes until May 31, 2007. Judge Lifland previously said that he would rule on the labor disputes by the end of April. The Debtors and the Unions stated in the joint letter that the extension is needed "in light of ongoing discussions" between them. On the other hand, Judge Lifland approved the settlement between the Debtors and the International Association of Machinists and Aerospace Workers Union, wherein the Debtors agreed to allocate US$2,250,000 to resolve all IAMAW claims. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China, Argentina and Italy. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances of that plan. DANA CORP: Wants Open-Ended Deadline to Remove Court Actions ------------------------------------------------------------ Dana Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to further extend the time by which they may file notices of removal with respect to any actions to federal court under Section 1452 of the Judicial Procedure Code and Rule 9027 of the Federal Rules of Bankruptcy Procedure until the date a plan of reorganization is confirmed. The Debtors seek that the Removal Period Extension be without prejudice to: (a) any position they may take regarding whether Section 362 of the Bankruptcy Code applies to stay any Actions; and (b) their right to seek further extensions of time to remove all Actions. The Debtors continue to require more time to decide whether the possible removal of any of the Actions would promote their interests in the context of their overall restructuring process, Corinne Ball, Esq., at Jones Day, in New York, tells the Court. Ms. Ball relates that the Debtors are currently focused on a host of key reorganization and business activities, including developing a reorganization plan. Developing a reorganization plan would entail attending to numerous and significant tasks like completing the divestitures of certain businesses and assets, securing the profit improvements from the various "Restructuring Initiatives," refining the Debtors' business plan, completing their proceedings under Sections 1113 and 1114 of the Bankruptcy Code, and determining the proper capital structure of the Reorganized Debtors. The Debtors are also reviewing and analyzing more than 15,000 claims filed against them, Ms. Ball adds. The Debtors aim to efficiently and timely resolve all the disputed claims. Ms. Ball contends that the outcome of the claim review and analysis bears directly on the Debtors' decision whether to remove the Actions. Moreover, the Debtors must oversee and implement the day-to-day operation of their businesses as debtors-in-possession. Given the current distress in the U.S. automotive industry, this task cannot be underestimated, Ms. Ball asserts. Because of the reasons stated, the Debtors have not yet reached the point where they can make final decisions relating to the potential removal of the Actions, Ms. Ball says. About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China, Argentina and Italy. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors' exclusive period to file a plan expires on Sept. 3, 2007. They have until Nov. 2, 2007, to solicit acceptances of that plan. EL PASO: Assessment for Brazilian Wells Will be Ready in 3Q ----------------------------------------------------------- U.S. company El Paso Corp.'s exploration and production head, Brent Smolik, said in a Web cast that the firm expects an assessment of three exploratory wells being drilled in Brazil to be ready early in the third quarter. Mr. Smolik told Business News Americas that El Paso "spudded" in February the wells Acai and Cacau in its Pinauna project, which has significant reserve potential. The two wells could bring up to 130 million barrels to Pinauna's proved reserves, which reached 12 million barrels last year. Though El Paso has a 100% working interest in the wells, it may decrease its interest, pending assessment results, as a "prudent approach to managing" its exploration and production portfolio. Brazilian state-owned oil firm Petroleo Brasileiro runs the other well Bia prospect, BNamericas notes, citing Mr. Smolik. The Brazilian company sees the well as a 280-million-barrle structure that straddles El Paso's block boundaries. El Paso holds 35% working interest in Bia prospect, BNamericas states. Headquartered in Houston, Texas, El Paso Corp. (NYSE:EP) -- http://www.elpaso.com/-- provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. The company has operations in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on March 21, 2007, Standard & Poor's Ratings Services raised its corporate credit ratings on El Paso Corp. and its subsidiaries to 'BB' from 'B+' and removed the ratings from CreditWatch with positive implications. S&P said the outlook is positive. EL PASO: Reports US$629 Mil. Net Income in Qtr. Ended March 31 -------------------------------------------------------------- El Paso Corporation disclosed that its first quarter 2007 earnings were US$629 million compared with US$356 million for the same period in 2006. First quarter 2007 results include a gain on the sale of ANR Pipeline Company and related assets as well as a charge for debt repurchase costs. The Pipeline Group's throughput was up 9 percent from 2006 levels while production volumes in the Exploration and Production segment increased 7 percent including the company's proportionate share of Four Star volumes. Results for ANR Pipeline Company and associated assets, which were sold on Feb. 22, 2007, are included in discontinued operations for all periods. "The first quarter of 2007 was one of the most impactful in our company's history," said Doug Foshee, president and chief executive officer. "With the completion of the ANR sale, we reduced our debt to US$11.7 billion, which is approximately half of what it was only four years ago. As a result, our pipelines regained investment grade credit ratings, which lowered the cost of capital that we employ towards our US$2.3 billion backlog of expansion projects. And our pipeline and E&P businesses delivered very good results, putting us on a path to achieve the 2007 goals that we announced in February." 2007 First Quarter For the three months ended March 31, 2007, the company's continuing operations include a US$128 million after-tax charge related to the purchase and retirement of US$3.5 billion of debt during the quarter. Results also include a US$56 million after- tax loss related to the mark-to-market impact on derivatives intended to manage price risk on natural gas and oil production compared to a US$104 million after-tax gain in the first quarter of 2006. After-tax amounts were calculated using a 36-percent tax rate. Pipeline Group The Pipeline Group's earnings before interest expense and taxes for the three months ended March 31, 2007, were US$364 million, compared with US$346 million for the same period in 2006. The increase is due to higher reservation revenues from several projects that went into service during 2006, higher costs associated with hurricanes Katrina and Rita in the first quarter of 2006, and other factors. Throughput was up 9 percent from 2006 levels due to expansion projects, colder weather in January and February, and new power loads in the Southeast. Exploration and Production The Exploration and Production segment's EBIT for the three months ended March 31, 2007, was US$179 million, compared with US$199 million for the same period in 2006. First quarter 2007 production volumes averaged 750 million cubic feet equivalent per day, excluding unconsolidated affiliate volumes of 70 MMcfe/d. First quarter 2006 production volumes averaged 694 MMcfe/d, excluding 71 MMcfe/d of unconsolidated affiliate volumes. The increase was due to the success of the onshore drilling program, recovery of volumes shut-in by hurricane damage, and new discoveries in the Gulf of Mexico and South Louisiana. Brazilian volumes were 16 MMcfe/d lower in 2007 primarily due to a contractual ownership reduction that took place in early 2006. The realized price for natural gas during the three months ended March 31, 2007, was US$7.19 per thousand cubic feet (Mcf), compared with US$7.03 per Mcf for the same period in 2006. Oil, condensate, and natural gas liquids realized prices were US$49.32 per barrel in first quarter 2007, down 4 percent from the same period in 2006. Total per-unit cash costs increased to an average of US$1.99 per thousand cubic feet equivalent (Mcfe) in first quarter 2007, compared with US$1.71 per Mcfe for the same 2006 period. The company's higher operating costs were primarily a result of increased production expenses resulting from higher workover activity levels, industry inflation in services, labor and material costs, and lower severance tax credits. New Hedge Positions for 2008 El Paso has entered into option contracts intended to hedge its 2008 E&P natural gas volumes. The new positions created an US$8.00 per million British thermal unit floor price and a US$10.53 per MMBtu ceiling price on 44 trillion British thermal units of anticipated 2008 natural gas production. When combined with existing 2008 hedges, the positions create an average floor price of US$7.14 per MMBtu and an average ceiling price of US$9.89 per MMBtu for 67 TBtu of anticipated 2008 natural gas production. These new positions were placed at El Paso Exploration & Production Company. They are expected to receive hedge accounting treatment and do not require margin postings. Other Operations Marketing The Marketing segment reported an EBIT loss of US$135 million for the three months ended March 31, 2007, compared to a gain of US$208 million for the same period in 2006. The first quarter 2007 and 2006 results included US$87 million of losses and US$162 million of gains, respectively, of MTM changes in the fair value of derivatives intended to manage the price risk of the company's natural gas and oil production. First quarter 2007 results also included a US$13-million loss on the assignment of a natural gas option contract to supply gas in the northeast U.S., while first quarter 2006 results included a US$49-million non-cash gain associated with the assignment of two natural gas derivative contracts to supply natural gas in the southeastern U.S. Power The Power segment reported EBIT of US$18 million for the three months ended March 31, 2007, compared with US$3 million for the same period in 2006. The increase is primarily from the Porto Velho project in Brazil, which generated EBIT of US$13 million in the 2007 period compared to US$7 million in the 2006 period. A reduction of general and administrative expenses also contributed to the increase in earnings in 2007. Corporate And Other During the first quarter of 2007, corporate and other reported an EBIT loss of US$210 million compared with break-even results for the same period in 2006. First quarter 2007 results were unfavorably impacted by a US$201-million charge for debt repurchase costs and US$28 million of unfavorable changes in litigation, insurance, and other reserves. The first quarter 2006 EBIT includes US$22 million of unfavorable changes in litigation, insurance, and other reserves. About El Paso Headquartered in Houston, Texas, El Paso Corp. (NYSE:EP) -- http://www.elpaso.com/-- provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. The company has operations in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on March 21, 2007, Standard & Poor's Ratings Services raised its corporate credit ratings on El Paso Corp. and its subsidiaries to 'BB' from 'B+' and removed the ratings from CreditWatch with positive implications. S&P said the outlook is positive. FIRST LINE: Proofs of Claim Verification Deadline Is July 3 ----------------------------------------------------------- Eva Gords, the court-appointed trustee for First Line SRL's bankruptcy proceeding, verifies creditors' proofs of claim until July 3, 2007. Ms. Gords will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 11 in Buenos Aires, with the assistance of Clerk No. 21, 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 First Line 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 First Line's accounting and banking records will be submitted in court. La Nacion did not state the reports submission date. Ms. Gords is also in charge of administering First Line's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: First Line SRL Dorrego 1639 Buenos Aires, Argentina The trustee can be reached at: Eva Gords Callao 1121 Buenos Aires, Argentina TENNECO INC: Eight Directors Re-Elected at 2007 Annual Meeting -------------------------------------------------------------- Tenneco Inc. disclosed that in its annual meeting, its shareholders re-elected Charles W. Cramb, Frank E. Macher, Roger B. Porter, David B. Price, Jr., Gregg Sherrill, Paul T. Stecko, Mitsunobu Takeuchi and Jane L. Warner to the company's board of directors. The directors have been re-elected to serve a term expiring at the 2008 annual meeting of stockholders. As the company had previously announced in its 2007 proxy statement, M. Kathryn Eickoff-Smith and Dennis Severance retired from the board, effective as the company's annual meeting. Stockholders also ratified the appointment of Deloitte & Touche LLP as independent public accountants for 2007. Headquartered in Lake Forest, Ill., Tenneco Inc., (NYSE: TEN) -- http://www.tenneco.com/-- manufactures automotive ride and emissions control products and systems for both the worldwide original equipment market and aftermarket. Leading brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has global operations in Argentina, Japan, and Germany, among others, with its European operations headquartered in Brussels, Belgium. * * * As reported in the Troubled Company Reporter-Latin America on March 20, 2007, Fitch Ratings has assigned a rating of 'BB+' to Tenneco Inc.'s new senior secured bank facility. The new facility replaces Tenneco's existing bank facility. As such, there is no impact to Fitch's current ratings of the existing debt or rating outlook, which are: -- Issuer Default Rating (IDR) 'BB-'; -- Senior secured bank facility 'BB+'; -- Senior secured second lien notes 'BB'; and -- Senior subordinated notes 'B'. =============== B A R B A D O S =============== ANDREW CORPORATION: Posts US$2 Mil. Net Loss in Second Qtr. 2007 ---------------------------------------------------------------- Andrew Corporation reported preliminary results for the second quarter of fiscal 2007 with total sales of US$502.7 million and a net loss of US$2 million. The company had total sales of US$481.7 million and a net income of US$3.7 million for the second quarter ended March 31, 2006. Higher income taxes contributed to the loss in the quarter, which compared to net income for the prior year second quarter of US$3.6 million. "As we previously guided, the first half of our fiscal year has been challenging due to consolidation issues with two significant North American customers, volatile commodity costs and a number of important facility start-ups and relocations," said Ralph Faison, president and chief executive officer, Andrew Corporation. "While our revenue growth for the quarter was modest in our seasonally weakest quarter, we are pleased that we have been able to replace reduced revenues of over US$130 million to those two customers in the first half of our fiscal year 2 with significant increases in volume with other customers and in other geographies. We also have been able to recover a significant portion of our higher commodity costs incurred during the quarter. "In addition, we have executed well on two significant facility relocations this year. Our new world-class cable facility in Joliet is in production, on budget and ahead of our expectations and our new factory in India is also in production and ramping up well, helping to serve the unprecedented demand we are experiencing in India. As we look ahead, we believe that Andrew is well positioned to continue to be the supplier of choice on a global basis to serve the needs of wireless operators and infrastructure original equipment manufacturers. While we believe that our North American business is starting to improve and should help drive a stronger second half, we remain cautious about our prospects in that geography if we do not see meaningful sequential improvement from the two customers where we have had significant weakness for the last two quarters. Finally, we continue to deliver on our goal of improving gross margins consistent with our previous guidance. We expect higher levels of business in the June and September quarters and anticipate improved operating leverage on that seasonal uptick." The company made significant progress in exiting its Orland Park facility and transitioning to its new Joliet, Illinois cable facility during the quarter. About US$8 million of relocation and start-up costs, including unabsorbed overhead for lost production and duplicate facilities, were incurred during the quarter, which reduced gross margin by about 160 basis points. Satellite Communications Business The company has retained an investment bank, CIBC World Markets Corp., to help explore strategic alternatives for its Satellite Communications business and intends to sell the business. Mr. Faison said, "In exploring strategic alternatives, we have received several indications of interest for Satellite Communications. As a result, we have decided to pursue a sale of the business. Similar to the recent sale of our broadband cable assets, which we completed subsequent to the end of the second quarter, this decision allows management to focus all of its time, attention and resources on our core wireless infrastructure products and solutions." The final terms of any divestiture transaction are subject to board approval, and there can be no assurance as to the terms, timing or consummation of any such transaction. Balance Sheet and Cash Flow Highlights Cash flow from operations was US$21.8 million in the second quarter, compared to US$13.4 million in the prior year second quarter. Cash and cash equivalents were US$127 million at March 31, 2007, compared to US$100 million at Dec. 31, 2006. Total debt outstanding was US$366 million at March 31, 2007, as compared with US$386 million at Dec. 31, 2006. During the quarter, the company amended the operating lease agreement for its new Joliet, Illinois facility, which served to reduce the amount of debt previously recorded on the balance sheet by about US$30 million. As of March 31, 2007, the company posted US$2.3 billion in total assets and total liabilities of US$842.5 million, resulting in a total stockholders' equity of US$1.5 billion. Fiscal 2007 Outlook Sales are anticipated to range from US$2.2 billion to US$2.3 billion, excluding any significant rationalization of product lines or significant acquisitions. The company currently anticipates the effective tax rate for the year will be in the range of 44% to 46%, based on the anticipated full year results. About Andrew Corporation Headquartered in Westchester, Illinois, Andrew Corp. (NASDAQ:ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including, among others, these Latin American countries: Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. Andrew is an S&P 500 company Founded in 1937. * * * As reported in the Troubled Company Reporter-Latin America on March 12, 2007, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit and other ratings on Andrew Corp. and removed the ratings from CreditWatch, where they were placed with positive implications on May 31, 2006. S&P said the outlook is stable. ============= B E R M U D A ============= ANNUITY & LIFE: Reports US$58,948 Net Income in First Quarter ------------------------------------------------------------- Annuity and Life Re (Holdings), Ltd. has reported financial results for the three months ended March 31, 2007. The company reported a net gain of US$58,948 or US$.00 per fully diluted share for the three months ended March 31, 2007, as compared to a net loss of US$355,552 or US$0.01 per fully diluted share for the three months ended March 31, 2006. Net realized investment gain for the three months ended March 31, 2007 were US$170,101, as compared with net realized investment losses of US$360,863 for the three months ended March 31, 2006. Gross unrealized losses on the company's investments were US$101,465 as of March 31, 2007, as compared to gross unrealized losses of US$368,372 as of Dec. 31, 2006. The company's investment portfolio currently maintains an average credit quality of AA. Cash used by operations for the three months ended March 31, 2007, was US$177,062, compared to cash used by operations of US$3,917,214 for the three months ended March 31, 2006. The dispute with Transamerica concerning an Agreement to novate certain reinsurance contracts to Transamerica effective Dec. 31, 2004 remains unresolved, pending review by an independent actuary and settlement negotiations. The Company is continuing exclusive discussions with an unrelated third party regarding the possible sale of its U.S. domiciled insurance company. Annuity and Life Re (Holdings), Ltd. -- http://www.alre.bm/or http://www.annuityandlifere.com/-- provides annuity and life reinsurance to insurers through its wholly owned subsidiaries, Annuity and Life Reassurance, Ltd., and Annuity and Life Reassurance America, Inc. Going Concern Doubt Chartered Accountants of Hamilton, Bermuda, raised substantial doubt about Annuity and Life Re (Holdings), Ltd.'s ability to continue as a going concern after it audited the company's annual report for 2004. The auditor pointed to the company's significant losses from operations and experience of liquidity demands. FOSTER WHEELER: Five-Year Credit Facility Increased to US$100MM --------------------------------------------------------------- Foster Wheeler Ltd. has signed an amendment, effective May 4, 2007, to its five-year senior secured domestic credit facility to: a) increase the facility by US$100 million; b) reduce the pricing applicable to the US$150 million synthetic portion of the facility by 50 basis points per annum; and c) provide a new option to increase the facility by an additional US$100 million at a later date. "This amendment to the facility provides the increased bonding capacity that we require to support the continued growth of our operations and volume of business," said John T. La Duc, executive vice president and chief financial officer. "The facility's improved pricing reflects the recent upgrades to our credit ratings by Moody's Investors Service and Standard & Poor's." The company does not intend to borrow under the facility during 2007. Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter on Dec. 18, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the company. The company had about US$217 million of total debt at Sept. 29, 2006. SCOTTISH RE: MassMutual Deal Cues A.M Best to Up Ratings -------------------------------------------------------- A.M. Best Co. has upgraded the financial strength rating to B+ (Good) from B (Fair) and the issuer credit ratings to "bbb-" from "bb+" for the primary operating insurance subsidiaries of Scottish Re Group Limited (Cayman Islands) [NYSE: SCT]. A.M. Best has also upgraded the ICR to "bb-" from "b" and the various debt ratings of Scottish Re. All ratings have been removed from under review with positive implications and assigned a stable outlook. These rating actions follow the completion of the previously announced agreement in which MassMutual Capital Partners, LLC and Cerberus Capital Management, LP each would invest $300 million into Scottish Re. Under the agreement, Scottish Re will issue convertible preferred shares, which is the equivalent of a 68.7% ownership interest in the company. The capital investment is permanent and enables Scottish Re to meet both its short-term and longer-term capital and cash flow needs. A.M. Best notes the support demonstrated by its new ownership and expects financial and risk management controls will improve as a result of this change. Capital levels at the insurance entities currently support a "Secure" rating. However, Scottish Re recorded a substantial loss in 2006 on both a statutory and GAAP basis. Moreover, A.M. Best expects that improvement in earnings may be slow to emerge in the near term, as costs related to operational and corporate governance measures are incurred. In addition, rebuilding its brand in the reinsurance market will likely take time. The generation of new business has been negatively impacted by rating downgrades and Scottish Re's financial difficulties, and retention of current treaties will need to be monitored. Operating leverage also remains at a high level. The stable outlook reflects A.M. Best's opinion that Scottish Re will benefit from the discipline from its new Board of Directors and the stability provided by its investors. A.M. Best will closely monitor the profit emergence of its inforce business as well as the ability to generate new business profitably. The FSR has been upgraded to B+ (Good) from B (Fair) and the ICRs to "bbb-" from "bb+" for the following subsidiaries of Scottish Re Group Limited: * Scottish Annuity & Life Insurance Company (Cayman) Ltd. * Scottish Re (U.S.), Inc. * Scottish Re Life Corporation * Scottish Re Limited * Orkney Re, Inc. The ICR has been upgraded to "bb-" from "b" for Scottish Re Group Limited. These debt ratings have been upgraded: Scottish Re Group Limited- * to "b" from "ccc+" on $125 million non-cumulative preferred shares Stingray Pass-thru Trust- * to "bbb-" from "bb" on $325 million 5.902% senior secured pass-thru certificates, due 2012 These indicative ratings for debt securities have been upgraded: Scottish Re Group Limited- * to "bb-" from "b" on senior unsecured debt * to "b+" from "b-" on subordinated debt * to "b" from "ccc+" on preferred stock * Scottish Holdings Statutory Trust II and III-to "b+" from "b-" on preferred securities Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. SCOTTISH RE: Fitch Changes Outlook on Low B Ratings to Positive --------------------------------------------------------------- Fitch Ratings has revised the Rating Watch on these ratings of Scottish Re Group Ltd. (NYSE:SCT) to Positive from Evolving: -- Issuer Default Rating 'B+'; -- 7.25% Non-cumulative perpetual preferred stock 'B-/RR6'. The Rating Watch on SCT was revised following the completion of the US$600 million investment transaction with MassMutual Capital Partners LLC, and affiliates of Cerberus Capital Management, L.P. After the upcoming meetings with management, including representatives from MassMutual Capital and Cerberus, Fitch expects to review SCT's financial, business and operating profile and plans, following the investment cited above. Following this review, which is expected to be completed within the month of May, Fitch may resolve the Rating Watch by upgrading SCT's ratings or affirming them with a Stable Outlook. Fitch also placed these ratings on Rating Watch Positive from Rating Watch Evolving: Scottish Annuity & Life Insurance Company (Cayman) Limited -- Insurer financial strength rating 'BB+'. Scottish Re (U.S.) Inc. -- IFS 'BB+'. Scottish Re Limited -- IFS 'BB+'. Stingray Pass Through Trust -- US$325 million 5.902% collateral facility securities due Jan. 12, 2015 'BB+'. SEA CONTAINERS: Seeking Court Okay for Unsec. Creditors' Funding ---------------------------------------------------------------- Sea Containers Ltd. asks the U.S. Bankruptcy Court for the District of Delaware, to authorize US$176.5 million in secured financing from Caspian Capital Partners LP, Dune Capital LP and Trilogy Capital LLC, which are three of the five members of the company's unsecured creditors' committee, the Royal Gazette reports. The Royal Gazette relates that Sea Containers would use the amount to pay off its debt to its secured lenders Wachovia Capital Markets LLC and Ableco Finance LLC. The assets of Sea Containers SPC Ltd., Sea Containers' non- bankrupt subsidiary, "are threatened with foreclosure" by Wachovia Capital and Ableco Finance, the Royal Gazette notes. According to the Royal Gazette, Wachovia Capital and Ableco Finance demanded payment on a US$141-million in debt, claiming that Sea Containers breached loan covenants. The report says that Sea Containers "didn't agree about the default," but decided that paying the loan "was the best business decision to preserve the value" of Sea Containers SPC's assets. The Royal Gazette states the new financing would consist: -- a US$151.5-million term loan, which will pay interest of at least 3.5% above London interbank offered rate; -- a US$25-million revolving credit, with a spread of 4%. Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers Ltd. disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Debtors' exclusive period to file a chapter 11 plan of reorganization expires on June 12, 2007. SEA CONTAINERS: Wants Court to Set July 16 as Claims Bar Date ------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to establish July 16, 2007, 5:30 p.m., as the deadline for all persons and entities holding or wishing to assert a claim against any of the Debtors to file a proof of claim in these Chapter 11 cases. In the event a Debtor rejects an executory contract or unexpired lease pursuant to Section 365 of the Bankruptcy Code, the Debtors anticipate that a claim may be asserted in connection with that rejection. Accordingly, the Debtors propose that the bar date for filing any proof of claim relating to their rejection of an executory contract or unexpired lease pursuant to a Court order entered prior to the applicable Debtor's plan of reorganization will be the later of: (i) the general bar date; or (ii) 30 calendar days after the effective date of that Court order, unless otherwise provided. Persons or entities who need not file proofs of claim include: * any person or entity that already has filed a signed proof of claim against the applicable Debtor with either BASIC or the Clerk of the Bankruptcy Court for the District of Delaware in a form substantially similar to Official Bankruptcy Form No. 10; * any person or entity who does not dispute its Claim as listed on the Debtors' Schedules of Assets and Liabilities; * any holder of a claim that previously has been allowed by a Court order; * any holder of a claim that has been paid in full by any of the Debtors in accordance with the Bankruptcy Code or a Court order; * any holder of a claim for which a specific deadline previously has been by the Court; * any Debtor asserting a claim against another Debtor; * any direct or indirect non-debtor wholly-owned subsidiary of a Debtor asserting a claim against a Debtor; * any holder of a claim allowable under Section 503(b) and 507(a)(2) as an expense of administration; * any professional retained by the Debtors or Court-approved Committees who asserts administrative claims for fees and expenses; * any current officer or director of any Debtor asserting indemnification, contribution or reimbursement claims; * any holder of a claim arising with respect to any of these issuances of Sea Containers Ltd. public notes: -- 10 3/4% notes due October 15, 2006, -- 7 7/8% notes due February 15, 2008, -- 12 1/2% notes due December 1, 2009, -- 10 1/2% notes due May 15, 2012; * any individual participant in the Sea Containers 1983 and 1990 Pension Schemes asserting a claim arising under or in respect of those pension plans; and * any holder of equity securities of, or other interests in, the Debtors solely with respect to that holder's ownership interest in or possession of those equity securities or other interests. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers Ltd. disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Debtors' exclusive period to file a chapter 11 plan of reorganization expires on June 12, 2007. TEKSID ALUMINUM: Moody's Confirms Junk Ratings ---------------------------------------------- Moody's Investors Service confirmed the Caa3 Corporate Family Rating of Teksid Aluminum Ltd as well as the Ca rating of the company's senior notes at Teksid Aluminum Luxembourg Sarl SCA with a stable outlook. This rating action concludes the review with direction uncertain initiated on Nov. 3, 2006 following the company's announcement that it has entered into a definitive agreement to sell certain core assets to Tenedora Nemak, S.A. de C.V and the intention of a redemption of outstanding debt with the proceeds of the asset disposal; the review was maintained following the last rating action on Jan. 16, 2007, when the ratings were downgraded by two notches to Caa3/Ca. At that time, the downgrade by two notches reflected the company's inability to make the interest payment due on the 11-3/8% Senior Notes and its breach of certain financial covenants of its bank facility in the fourth quarter of 2006 as a result of a further deterioration of Teksid's operating performance. While the downgrade also reflected the likelihood that recovery rates of the senior notes could be substantially lower than initially anticipated, the review with an uncertain direction also indicated the possibility of a significant variance in recovery values that could either improve the bond rating to Caa3 or weaken it to C. The rating confirmation with a stable outlook reflects the progress achieved in the asset disposal process over the last months, including: (1) an agreement on revised terms for the Nemak sale, (2) the consent of the bondholders achieved to permit the sale of certain assets and operations to Nemak, (3) continuation of the asset disposal process including disposal of plants in North and South America, and Poland, following respective regulatory approvals, (4) the partial redemption of the company's other financial and operating liabilities, (5) a successful tender offer for up to EUR35 million aggregate principal amount and accrued interest of its outstanding EUR240 million senior notes. The Ca rating for the senior notes reflects an expected recovery value range between 10-50%, which now can be determined with a higher level of certainty. The recent tender offer for around 15% of the outstanding notes reflects the minimum recovery value achieved for the notes. The upper recovery boundary is likely to be at around 50%, considering the company's estimate for a maximum final recovery of around 50% for the notes, which could further increase due to a 5.5% synthetic equity interest in the Nemak business but could be negatively affected by the continuous needs to fund ongoing losses of the underlying operations, working capital needs, capital expenditures, restructuring costs until disposal of the remaining businesses. Outlook Actions: * Issuer: TK Aluminum Ltd -- Outlook, Changed To Stable From Rating Under Review * Issuer: Teksid Aluminum Luxembourg Sarl SCA -- Outlook, Changed To Stable From Rating Under Review Confirmations: * Issuer: TK Aluminum Ltd -- Corporate Family Rating, Confirmed at Caa3 * Issuer: Teksid Aluminum Luxembourg Sarl SCA -- Senior Unsecured Regular Bond/Debenture, Confirmed at Ca The stable outlook takes into account that positive rating developments mainly depend on recovery rates, which would need to be substantially above expectations for current ratings. TK Aluminum Ltd, a Bermuda-based company with corporate offices in Carmagnola, Italy, is a leading global supplier of aluminium casting components for the automotive industry worldwide. For the twelve months ended Dec. 31, 2005 the company generated net revenues of EUR1 billion. ============= B O L I V I A ============= COEUR D'ALENE: Earns US$14 Million Net Income in 2007 First Qtr. ---------------------------------------------------------------- Coeur d'Alene Mines Corporation reported net income of US$14.0 million for the first quarter of 2007, compared to net income of US$14.3 million for the year-ago period. First quarter 2006 income from continuing operations before taxes increased 32 percent, to US$17.7 million, as compared to US$13.4 million in the year-ago period. Cash flow from operations increased 32 percent, to US$22.7 million in the first quarter of 2007, as compared to US$17.2 million in the year-ago period. Metal sales for the first quarter of 2007 increased nearly 13 percent, to US$50.9 million, as compared to US$44.9 million in the year-ago quarter. In commenting on the company's performance relative to the year- ago quarter, Dennis E. Wheeler, Chairman, President and Chief Executive Officer, said, "The company's improved pretax income was driven by higher realized prices and particularly strong operating results at the Rochester, Endeavor, and Martha mines. The change in net income was due largely to an income tax provision of US$3.7 million in the first quarter of 2007 as compared to an income tax benefit of US$0.3 million in the year- ago quarter. Separately, we are pleased with the construction progress at San Bartolome and look forward to placing the mine into production by the first quarter of 2008. San Bartolome is projected to add 9 million ounces of silver production in 2008." Mr. Wheeler added, "As the year progresses, we expect to see quarterly production levels that are consistently above the levels of the first quarter of 2007." Mr. Wheeler also commented on the company's recent agreement to merge with Bolnisi Gold and Palmarejo Silver and Gold. "The transaction represents a transformation of Coeur into the world's leading primary silver-producing company. By virtue of the transaction, Coeur will be positioned to produce an expected 32 million ounces of silver and 290,000 ounces of gold in 2009. We look forward to delivering the significant benefits of the combination to all shareholders." Update on San Bartolome Silver Project Construction proceeds on schedule and on budget at San Bartolome. Capital expenditures totaled US$11.3 million for the first quarter of 2007. Commercial production is expected to commence in January 2008, with approximately 9 million ounces forecast to be produced that year. Construction highlights are summarized, as of April 2007: -- 23 contractors on site and total employment of approximately 615 workers, most of whom are Bolivian -- More than 340,000 man-hours without a lost-time accident -- Concrete batch plant is operating -- Have begun pouring concrete foundations for the leach tank area and the crusher -- 93% complete with engineering procurement -- Nearing completion of site preparation for processing plant Update on Kensington Gold Project At Kensington, capital expenditures totaled US$24.9 million for the first quarter of 2007. Recent work has focused on completion of the surface processing facilities and underground tunnels. The company expects to complete the construction of all surface facilities -- with the exception of the tailings facility, which is the subject of legal action -- by September of 2007. The company expects to complete the main underground tunnel in July of this year. In addition, the company continues to progress with the required mine development work that is expected to enable the mine to begin ore extraction. This work includes ramps and horizontal tunnels that provide lateral access to the ore bodies. Highlights by Individual Property Rochester (Nevada) Silver production for the first quarter of 2007 increased from the level of the year-ago quarter due to increases in recovery of silver from the leach pad. Gold production declined due to lower grade. Rochester remains on track to achieve full-year silver cash costs of well below a dollar per ounce. First- quarter silver cash cost increased relative to the year-ago period due to decreased gold by-product credits. Cerro Bayo (Chile) Gold production increased 7 percent relative to the year-ago quarter due to sharply improved grade. The increase in gold production, and the resulting by-product credits, caused silver cash cost per ounce in the first quarter of 2007 to decline 65 percent to US$1.21 per ounce. Silver production in the first quarter of 2007 was below the level of a year ago, despite an increase in grade, because the mill processed fewer tons as Cerro Bayo continued its transition to higher-grade areas of the mine, specifically the Cascada vein system. The company began obtaining ore from Cascada in the fourth quarter of 2006 in connection with development work. The company now has all necessary permits to commence full-scale mining operations in Cascada. Martha (Argentina) Silver production in the first quarter of 2007 increased nearly 15 percent and gold production was up nearly 25 percent on a sharp improvement in grades as compared to the first quarter of 2006. Silver cash cost per ounce increased relative to that of the year-ago period due largely to increased royalties associated with higher realized market prices and increased labor costs. Construction has commenced on a new US$13.9 million mill facility, which is expected to be operational near the end of the year. The mill is intended to support the company's continued success in expanding the high-grade reserves and resources at Martha, as well as the mine's significant exploration upside potential. Endeavor (Australia) Silver production in the first quarter of 2007 increased 90 percent from the level of a year ago as the mine more than doubled its tons milled. Silver cash cost per ounce in the first quarter of 2007 was higher than it was in the year-ago period due to higher smelting and refining charges associated with the increased market value of silver deductions charged pursuant to the smelting and refining contracts. The Endeavor mine reported an increase in its proven and probable silver mineral reserves to approximately 32 million ounces in 2006. Broken Hill (Australia) Silver production in the first quarter was below the level of a year ago due to a temporary curtailment of operations early in the period following an accident at the mine. Silver cash cost per ounce was higher than that of the year-ago period due to lower production volumes and higher smelting and refining charges associated with the increased market value of silver deductions charged pursuant to the smelting and refining contracts. Broken Hill reported an increase in its proven and probable silver mineral reserves to approximately 18 million ounces in 2006. Balance Sheet and Capital Investment Highlights The company had US$321.4 million in cash and short-term investments as of March 31, 2007. Capital spending during the first quarter of 2007 totaled US$42 million, most of which was spent on the Kensington and San Bartolome projects as summarized above. Exploration Activity Highlights As previously announced, the company expects to spend a record amount of its 2007 exploration budget on greenfields activity and began drilling activity on such properties in Argentina during the first quarter. In total, the company incurred total expenditures of US$3.8 million on exploration activity in the first quarter of 2007. San Bartolome Both silver mineral reserves and resources, compared to year-end 2006, increased significantly as of April 2007. Silver mineral reserves increased by 3.5 million ounces to a total of 155.4 million ounces, with an improvement in grade to 3.37 ounces per ton as compared to 3.29 ounces per ton. Indicated silver mineral resources, exclusive of mineral reserves, increased to 32.3 million ounces from 160,000 ounces at year-end 2006. The increases resulted from recently completed exploration work -- consisting of new sampling, analytical work, and deposit modeling, as well as updated cost parameters - that has been used to complete a new mineral resource and reserve estimate for this important development project. Cerro Bayo Exploration focused on reserve development/delineation drilling and discovery of new mineralization. Approximately 12,400 meters (40,800 feet) were drilled in the two programs. The majority of the drilling (71%) was devoted to definition of new reserves around the current mine operations areas. Results from both programs are expected to produce additional reserves and mineralized material though the impact of the new drilling will not be fully evaluated until the program is completed. Martha A total of 8,985 meters (29,500 feet) of drilling was completed during the first quarter to expand reserves and discover new mineralization. Results obtained from drilling R4 Deep, Francisca and Catalina continue to expand the strike and depth of the mineralization in those veins, which were discovered in 2004. Drilling will continue throughout the year on these and other targets in the Martha mine district. Tanzania The company continued exploration on its properties in the Lake Victoria Goldfields District of northern Tanzania. Core and reverse circulation drilling was conducted on the Saragurwa and Kiziba Hill properties in the quarter and totaled 2,799 meters (9,180 feet). Drilling continues at Kiziba Hill for which analytical results are expected in the second quarter. About Coeur d'Alene Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. =========== B R A Z I L =========== AMERICAN TOWER: Earns US$22 Mil. in First Quarter Ended March 31 ---------------------------------------------------------------- American Tower Corporation recorded US$22.2 million in net income for the first quarter ended March 31, 2007, as compared with a US$1.9 million net loss for the quarter ended March 31, 2006. Total revenues for the quarter ended March 31, 2007, increased to US$352.5 million from US$320.4 million for the same quarter a year earlier. Its rental and management segment revenues increased to US$346 million from US$316.3 million for the same quarter a year earlier. Jim Taiclet, American Tower's chief executive officer, stated, "Wireless communications continue to increase in importance for consumers and business users alike. As a result, our major customers in both the U.S. and Latin America are enjoying sustained growth in revenue and profitability. Moreover, wireless service providers are focusing on improving the quality of their services and launching new services. "These two factors, the profitable growth of the wireless industry and its focus on high quality existing and new services, drive strong demand for tower space that we believe is sustainable over time. Our first quarter financial results reflect both this overarching industry growth trend and American Tower's ability to consistently deliver the highest operating margins in the tower sector. "We are also taking advantage of the size and quality of our tower portfolio to advance our financial strategy. Our recently completed US$1.75 billion securitization of a portion of our tower assets increased our financial flexibility while reducing our cost of financing. With the securitized financing in place, we are in a solid position to move forward on additional improvements to our balance sheet while supporting our ongoing share repurchase program and maintaining our readiness to pursue strategic opportunities." Free Cash Flow increased to US$139.9 million, consisting of US$171.4 million of cash provided by operating activities, less US$31.4 million of payments for purchases of property and equipment and construction activities, including US$16.6 million of discretionary capital spending. The company completed the construction of 22 towers and the installation of 4 in-building systems during the quarter and spent about US$9.9 million on ground lease purchases. The company's balance sheet as of March 31, 2007, reflected total assets of US$8.3 billion, total liabilities of US$4.3 billion, and minority interest of US$3.5 million, resulting in a total stockholders' equity of US$4 billion. The company's March 31 balance sheet also reflected strained liquidity with total current assets of US$259.6 million available to pay total current liabilities of US$306.3 million. It recorded an accumulated deficit of US$2.7 billion as of March 31, 2007. Stock Repurchase Program During the quarter ended March 31, 2007, the company completed its US$750 million stock repurchase program and commenced repurchases pursuant to its US$1.5 billion stock repurchase program. As of May 2, 2007, the company had repurchased pursuant to its publicly announced stock repurchase programs an aggregate of 29.3 million shares of its Class A common stock for about US$1 billion since November 2005. The company expects to complete the remaining US$1,211 million of stock repurchases pursuant to its current US$1.5 billion stock repurchase program by February 2008. Financing Highlights On May 4, 2007, the company completed the issuance, in a private transaction, of US$1.75 billion of Commercial Mortgage Pass- Through Certificates due April 2037 with an interest rate of 5.61%. The Certificates are backed by debt of two special- purpose subsidiaries of the company, which are secured primarily by mortgages on its interests in 5,295 wireless and broadcast communication towers and the related tower sites. Net proceeds from the offering of the Certificates were used to repay about US$765 million outstanding under the company's SpectraSite credit facility, as well as US$250 million under its American Tower revolving credit facility. The company expects to use the remaining net proceeds to fund the repurchase of about US$325 million of its 7.25% senior subordinated notes due 2011 of American Towers Inc., to pay other consideration payable, and for general corporate purposes. The company had about US$1 billion of available liquidity as of May 7, 2007. About American Tower Headquartered in Boston, Massachusetts, American Tower Corp. (NYSE: AMT) -- http://www.americantower.com/-- is an independent owner, operator and developer of broadcast and wireless communications sites in the United States, Mexico and Brazil. American Tower owns and operates over 22,000 sites in the United States, Mexico, and Brazil. Additionally, American Tower manages approximately 2,000 revenue producing rooftop and tower sites. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 16, 2007, Moody's Investors Service upgraded the corporate family rating of American Tower Corp. to Ba1 from Ba2, affirmed the company's SGL-1 liquidity rating and changed the ratings of its various debt instruments pursuant to the loss given default methodology. This concludes the ratings review commenced Dec. 11, 2006. Moody's said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on Feb. 14, 2007, Fitch Ratings has upgraded the ratings on American Tower Corp. and its subsidiaries as: American Tower Corp. -- Issuer Default rating to 'BB+' from 'BB-'; -- Senior Unsecured notes to 'BB+' from 'BB-'. American Towers Inc. -- IDR to 'BB' from 'BB-'. SpectraSite Communications Inc. -- IDR to 'BB' from 'BB-'. AMSTED INDUSTRIES: Moody's Lifts Corporate Family Rating to Ba3 --------------------------------------------------------------- Moody's Investors Service raised its Corporate Family and Probability of Default ratings of Amsted Industries Incorporated; CFR to Ba3 from B2, PDR to Ba3 from B2. Moody's also affirmed its Ba3 senior secured rating but changed the Loss Given Default assessment to LGD3, 46% from LGD3, 30%; and raised its senior unsecured rating to B2 (LGD6, 90%) from Caa1, (LGD5, 80%). The outlook was changed to stable from positive. The upgrades reflect the combination of continuing strong performance of Amsted's operations which contributed to improved financial metrics and the elimination of the potential for a technical default that existed under the Indenture of the US$250 Million Senior Unsecured Notes due 2011. The technical default was possible because Amsted's strong financial performance had raised the specter that its required purchases of ESOP shares could exceed the amount of restricted payments allowed pursuant to the Notes' indenture. On March 29, 2007, Amsted completed its tender offer for the Notes and the related consent solicitation to eliminate substantially all of the restrictive covenants and certain events of default. Approximately US$5 million of Notes remain outstanding. Moody's ratings of Amsted recognize the respective lead positions of most of Amsted's products and the favorable effect on operating margins from the higher variable cost structure attained since the most recent earnings trough of fiscal 2003. Demand across the company's product lines remains above mid- cycle levels and is perpetuating cyclically-strong financial results, strong credit metrics and good liquidity. While aggregate demand across the company's product lines is likely to soften in step with economic fundamentals in North America, the critical nature of Amsted's products as core components of its customers' products should support demand during troughs. As well, the higher variable cost component should support higher earnings generation relative to the levels achieved during prior troughs and credit metrics that remain indicative of the Ba3 or higher rating. The high level of cyclicality of the company's markets, the reduced benefit of portfolio diversification as demand in each segment correlates positively to economic activity in North America and the still high debt level counter the current strong credit profile. Significant payments in the near term for stock appreciation rights and ongoing repurchases of ESOP shares could strain free cash flow. This call on cash from Amsted's obligations to purchase ESOP shares constrains the ratings. These returns to shareholders limit the potential for debt reduction and will reduce cash, although overall liquidity should remain supportive of the current ratings. The stable outlook reflects Moody's belief that demand for Amsted's products should remain favorable over the intermediate term. Metrics remain strong relative to the median values of other Ba3-rated corporate families and provide a cushion for Amsted to absorb lower business volumes that would accompany a cyclical downturn or higher debt that could result, possibly from excessive redemptions of ESOP shares. Debt to EBITDA being sustained below 3.0 times and EBIT to Interest being sustained above 4.0 times during the next cyclical trough could lead to an upgrade. The ratings may be downgraded if Amsted's product markets suffer a prolonged decline resulting in sustained negative free cash flow or if Amsted was to significantly rely on the revolver to meet working capital needs. Downwards rating pressure could also result if Debt to EBITDA is sustained above 4.0 times or EBIT to interest is sustained below 2.5 times. Downgrades: * Senior Secured Bank Credit Facility, Downgraded to 46 - LGD3 from 30 - LGD3 * Senior Unsecured Regular Bond/Debenture, Downgraded to 90 - LGD6 from 80 - LGD5 Upgrades: * Probability of Default Rating, Upgraded to Ba3 from B2 * Corporate Family Rating, Upgraded to Ba3 from B2 * Senior Unsecured Regular Bond/Debenture, Upgraded to B2 from Caa1 Outlook is changed to stable from positive. Based in Chicago, Illinois, Amsted Industries, Inc. -- http://www.amsted.com/-- is a diversified manufacturer of industrial components serving primarily the railroad, vehicular, and construction and building markets. Amsted currently designs, manufactures and markets products primarily for the North American marketplace where 85% of their revenues are derived. The company has 47 manufacturing facilities located in 11 countries with approximately 9,200 employees worldwide. The company has locations in Canada, Brazil, Africa, Europe and India. ARMOR HOLDINGS: Inks US$4.1 Billion Sale Pact with BAE Systems -------------------------------------------------------------- Armor Holdings, Inc. entered into a definitive merger agreement to be acquired by BAE Systems, Inc., a wholly owned subsidiary of BAE Systems plc, for US$4.1 billion, or a price per common share of US$88 through a one-step merger. The transaction is subject to approval of Armor Holdings, Inc. shareholders and to customary closing conditions, including compliance with The Hart-Scott-Rodino Antitrust Improvements Act of 1976 and approval under the Exon-Florio National Security Test for Foreign Investment. The transaction is expected to close in the third quarter. "We are exceptionally pleased to join forces with BAE Systems plc, a global leader in the defense industry," Warren B. Kanders, Chairman and Chief Executive Officer of Armor Holdings, Inc. said. "We would like to thank our shareholders for the constant support they have shown our company through numerous transactions and business initiatives that have enabled us to deliver superior investment returns. Importantly, we would also like to thank our management team and our Board of Directors for their dedication and stewardship over the years." "We are excited to move this business to the next phase of its development," Robert R. Schiller, President of Armor Holdings, Inc., commented. "We have no doubt that BAE Systems will place the needs of our customer and those of the men and women in uniform who depend on our products at the center of their ongoing effort. We owe a special thanks and a deep debt of gratitude to each of our over 8,000 employees around the world. Their tireless commitment to excellence and innovation has and will continue to make this organization strong for many years into the future." Armor Holdings was advised by Goldman, Sachs & Co., Inc. and Merrill Lynch & Co., Inc., as financial advisors and Kane Kessler, P.C., as legal counsel. Headquartered in Jacksonville, Florida, Armor Holdings, Inc. (NYSE: AH)-- http://www.armorholdings.com/-- manufactures and distributes security products and vehicle armor systems for the law enforcement, military, homeland security, and commercial markets. The company has operations in Australia, England and Brazil. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency confirmed its Ba3 Corporate Family Rating for Armor Holdings Inc. Additionally, Moody's affirmed its B1 ratings on the company's 2% Convertible Senior Subordinated Notes Due 2024 and 8.25% Senior Subordinated Notes Due 2013. Moody's assigned those debentures an LGD5 rating suggesting noteholders will experience a 77% loss in the event of default. Armor Holdings, Inc.'s 8-1/4% Senior Subordinated Notes due 2013 carry Moody's Investors Service's B1 rating and Standard & Poor's B+ rating. ARMOR HOLDINGS: S&P Places Watch to Positive on BAE Acquisition --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings, including the 'BB' corporate credit rating, on Jacksonville, Fla.-based Armor Holdings Inc. on CreditWatch with positive implications. "The CreditWatch follows the announcement that Armor has agreed to be acquired by Farnborough, U.K.-based BAE Systems PLC for a total consideration of US$4.5 billion, including assumed debt," said Standard & Poor's credit analyst Christopher DeNicolo. The acquisition is subject to customary regulatory approvals, as well as approval by Armor's shareholders, and is expected to close in the third quarter of 2007. Ratings are likely to be withdrawn if outstanding rated debt is repaid or converted to common stock in the case of Armor's US$345 million convertible notes. The company's aerospace and defense group (about 80% of revenues in 2006) produces armored military vehicles, military body armor, soldier equipment, and crew seats for military helicopters and transports. Armor is a leading provider of law enforcement equipment, including body armor, holsters, riot gear, and batons, through its Products group. Armor also provides commercial vehicle armoring through its Mobile Security division (5%). BANCO ITAU: First Qtr. Net Income Profit Increased to BRL1.90B -------------------------------------------------------------- Banco Itau Holding Financeira's net profits increased 30.3% to BRL1.90 billion in the first quarter 2007, compared to the first quarter 2006. Banco Itau said in its financial statements that its insurance, private pension and savings bond businesses increased net profits by 17.1% in the first quarter 2007 to BRL185 million, from BRL158 million in the same period in 2006. However, net income decreased by 25.1% from BRL247 million in the fourth quarter 2006, Business News Americas relates, citing Banco Itau. BNamericas notes that the combined ratio for Banco Itau's three units improved to 84.4% in the first quarter 2007, from 91.2% in the first quarter 2006. However, it was declined compared to 82.8% in the fourth quarter 2006. The report says that Banco Itau's overall operating income grew 39.6% to BRL282 million in the first quarter 2007, compared to the first quarter 2006, because higher operating income helped offset lower financial income, which decreased 19.6% overall to BRL127 million. According to BNamericas, claims dropped 8.06% across the board to BRL331 million in this year's first quarter, from last year's first quarter. Technical provisions for Banco Itau's three units increased 22.5% to BRL19.0 billion in the first quarter 2007, compared to the same period in 2006. Banco Itau's insurance, private pension and savings bond operations grew 21.7% to BRL22.1 billion, BNamericas relates. Meanwhile, Banco Itau's head of accounting, Silvio de Carvalho, said in a conference call that the bank expects its focus on retail and small and medium-sized enterprise financing to help boost overall lending by up to 25% in 2007, compared to 2006. Mr. Carvalho told BNamericas that Banco Itau expects to increase retail lending by 40% and loans to small enterprises by 30% this year, from last year. According to Banco Itau's financial statements, it increased total lending by 40.3% to BRL101 billion in the first quarter 2007, compared to the first quarter 2006. This year's first quarter lending, including sureties and guarantees, was 7.90% higher compared to December 2006. BNamericas notes that Banco Itau's retail lending increased 50.6% to BRL46.4 billion in the first quarter 2007, from the first quarter 2006. This year's first quarter retail lending was 14.6% higher, compared to the fourth quarter 2006. Vehicle funding increased 59.3% year-on-year, personal loans grew 39.9% and credit card operations rose 26.1%. According to the report, Banco Itau's commercial lending increased 33.5% to BRL49.0 billion in the first quarter 2007, compared to the same time in 2006, and 3.70% compared to the fourth quarter 2006. Its loans to small enterprises rose 77.6% to BRL24.4 billion year-on-year and 19.3% quarter-on-quarter. Loans to corporations increased 7.20% to BRL24.6 billion compared to the first quarter 2006, but declined 8.20% from the fourth quarter 2006. Mr. Carvalho told BNamericas that Banco Itau's non-performing loan (NPL) ratio improved to 5.0% in the first quarter 2007, from 5.2% in the first quarter 2006, and 5.3% in the fourth quarter 2006. The NPL ratio -- excluding BankBoston operations in Brazil, Chile and Uruguay -- was 5.2%. Banco Itau's NPL ratio is a little bit below 5% this year. Telma Marotto of Bloomberg News relates that Andre Caminada, who helps manage about 115 million reais at Victoire Finance Capital in Sao Paulo, said, "Itau has been very aggressive in providing credit to consumers. With good numbers on the macroeconomic level, banks are more comfortable in giving out credit and so are the consumers in taking the loans." Banco Itau's return on equity dropped to 31.3% in the first quarter 2007, from 36.3% in the first quarter 2006, but increased from 22.6% in the fourth quarter 2006. Return on equity declined from the first quarter 2006 due to the incorporation of BankBoston operations, BNamericas says, citing Mr. Carvalho. Mr. Carvalho told BNamericas that Brazil was still Itau's primary focus. He didn't dismiss Banco Itau's possible interest in ABN Amro Real, whose Dutch parent ABN Amro recently disclosed a merger with UK bank Barclays. "ABN Amro in Brazil holds an important position for any local bank, including Itau," Mr. Carvalho commented to BNamericas. Banco Itau's assets increased 56.8% to BRL258 billion in the first quarter 2007, compared to the first quarter 2006, BNamericas states. Banco Itau currently has 51 thousand employees serving more than 16 million clients, through its network of 2,391 branches and 22 thousand ATMs. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of these ratings of Banco Itau Holding Financiera S.A.: -- Foreign currency IDR at 'BB+'; Outlook to Positive from Stable; -- Local currency IDR at 'BBB-'; Outlook to Positive from Stable; and -- National Long-term rating at 'AA+(bra)'; Outlook to Positive from Stable. DELPHI CORP: Court Extends Lease-Decision Period Until Sept. 30 --------------------------------------------------------------- The Hon. Robert Drain of the United States Bankruptcy Court for the Southern District of New York further extended the date by which Delphi Corp. and its debtor-affiliates must assume or reject unexpired non-residential real property leases through and including the earlier of: (a) Sept. 30, 2007; or (b) the date on which a plan of reorganization in the Debtors' Chapter 11 cases is confirmed. The Debtors are lessors or lessees with respect to approximately 80 Real Property Leases, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, notes. The Debtors, according to Mr. Butler, are in the process of implementing their transformation plan. To facilitate their transformation plan, the Debtors recently entered into the Equity Purchase Commitment Agreement and the Plan Framework Support Agreement with, among others, Appaloosa Management L.P., Harbinger Capital Partners Master Fund I, Ltd., and Cerberus Capital Management, L.P., which provide a platform for the resolution of transformation issues and the formulation of a consensual plan of reorganization. Until the outcome of the Framework Agreements is known, the Debtors cannot determine which Real Property Leases should be assumed and which should be rejected, Mr. Butler asserts. The Sept. 30, 2007 deadline coincides with the Debtors' current deadline to solicit acceptances of a plan of reorganization. Mr. Butler notes that the Debtors sought the September 30, 2007 solicitation extension because of the possibility that: -- emergence from reorganization might be delayed because of the size and complexity of their cases; -- the actions required to be taken under the Framework Agreements might not be completed by the end of the second quarter of 2007; and -- the transactions contemplated by the Framework Agreements might not be consummated. "These same factors can delay the Debtors' ability to acquire all information necessary to decide whether to assume or reject a lease," Mr. Butler avers. Thus, the Debtors require more time to complete their evaluation of the Real Property Leases. If the current Lease Decision Deadline is not extended, the Debtors may be compelled, prematurely, to assume substantial, long-term liabilities under the Real Property Leases or forfeit benefits associated with some Leases to the detriment of the Debtors' ability to operate and preserve the going-concern value of their business, Mr. Butler points out. The non-debtor parties under the Real Property Leases will not be prejudiced by an extension because the Debtors are making payments under the Leases as they come due, Mr. Butler assures the Court. ORIX Responds ORIX Warren, LLC, and Delphi Automotive Systems, LLC, are parties to a certain lease for non-residential real property located at 4551 Research Parkway, Warren, Ohio. ORIX relates that it does not object to the extension requested by the Debtors. ORIX, however, reserves its right to (i) object to any future request for an extension of time to assume or reject the Lease, and (ii) file a motion to shorten the Extension Period. Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil, and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed US$17,098,734,530 in total assets and US$22,166,280,476 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. DELPHI CORP: Posts US$63 Million Net Loss in March 2007 ------------------------------------------------------- Delphi Corporation, et al. Unaudited Consolidated Balance Sheet As of March 31, 2007 (In Millions) ASSETS Current assets: Cash and cash equivalents US$113 Restricted cash 108 Accounts receivable, net General Motors and affiliates 1,649 Other third parties 977 Non-Debtor subsidiaries 389 Notes receivable from non-Debtor subsidiaries 352 Inventories, net Productive material, work-in-process and supplies 826 Finished goods 302 Prepaid expenses and other 297 -------- TOTAL CURRENT ASSETS 5,013 Long-term assets: Property, net 2,134 Investment in affiliates 376 Investments in non-Debtor subsidiaries 3,402 Goodwill 152 Other intangible assets 33 Other 336 -------- TOTAL ASSETS US$11,446 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities not subject to compromise: Debtor-in-possession financing US$3,072 Accounts payable 1,272 Accounts payable to non-Debtor subsidiaries 446 Accrued liabilities 815 -------- TOTAL CURRENT LIABILITIES 5,605 Long-term liabilities not subject to compromise: Employee benefit plan obligations and other 639 -------- TOTAL LONG-TERM LIABILITIES 639 Liabilities subject to compromise 17,607 -------- TOTAL LIABILITIES 23,851 Stockholders' deficit: Common stock 6 Additional paid-in capital 2,772 Accumulated deficit (12,274) Accumulated other comprehensive loss (2,857) Treasury stock, at cost (3.2 million shares) (52) -------- TOTAL STOCKHOLDERS' DEFICIT (12,405) -------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT US$11,446 Delphi Corporation, et al. Unaudited Consolidated Statement of Operations Month Ended March 31, 2007 (In Millions) Net sales: General Motors and affiliates US$849 Other customers 567 Intercompany non-Debtor subsidiaries 95 -------- Total net sales 1,511 -------- Operating expenses: Cost of sales 1,387 Selling, general and administrative 82 Depreciation and amortization 53 -------- Total operating expenses 1,522 -------- Operating loss (11) Interest expense (31) Loss on extinguishment of debt (23) Other income, net 7 Reorganization items (6) Income tax benefit (expense) (3) Equity income from non-consolidated subsidiaries 5 Equity income from non-Debtor subsidiaries, net of tax (1) -------- NET LOSS (US$63) Delphi Corporation, et al. Unaudited Consolidated Statement of Cash Flows Month Ended March 31, 2007 (In Millions) Cash flows from operating activities: Net loss (US$63) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 53 Pension and other postretirement benefit expenses 42 Equity loss from unconsolidated subsidiaries, net (5) Equity loss from non-Debtor subsidiaries, net of tax 1 Reorganization items 6 Loss on debt extinguishment 23 Changes in operating assets and liabilities: Accounts receivable, net (149) Inventories, net 41 Prepaid expenses and other (4) Accounts payable, accrued and other long-term debts (65) U.S. employee special attrition program (29) Pension contributions (1) Other postretirement benefit payments (17) Receipts (payments) for reorganization items, net (15) Other (8) -------- Net cash used in operating activities (190) Cash flows from investing activities: Capital expenditures (11) Proceeds from sale of property