/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070529.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 29, 2007, Vol. 8, Issue 105 Headlines A N T I G U A & B A R B U D A BETONSPORTS: Officials Plead Guilty to Fraud Charges A R G E N T I N A AES CORPORATION: Provides Financial Guidance Through 2011 FAPA SRL: Trustee Verifies Proofs of Claim Por Via Incidental INSTITUTO MODELO: Trustee Verifies Proofs of Claim Until June 22 MARANELLO AUTOMOTORES: Court Appoints Reynaldo Munch as Trustee PINNACLE ENTERTAINMENT: Earns US$2.9 Mil. in Qtr. Ended March 31 TARAI SA: Proofs of Claim Verification Deadline Is July 10 TODONAVIDAD SRL: Proofs of Claim Verification Ends on Aug. 6 B A H A M A S TEEKAY SHIPPING: Completes Initial Tender Offer for OMI Shares B A R B A D O S CABLE & WIRELESS: Reports Robust Growth in Barbados Operations TARGUS GROUP: S&P Puts All Ratings Under Negative Watch B E R M U D A CIC SOFTWARE: Proofs of Claim Filing Is Until June 8 CIC SOFTWARE: Schedules Final General Meeting on June 26 ACCOUNTANTS PROFESSIONAL: Proofs of Claim Filing Ends on June 8 ACCOUNTANTS PROFESSIONAL: Final General Meeting Is on July 3 MARTIN CURRIE: Proofs of Claim Filing Ends on June 8 MARTIN CURRIE: Sets Final General Meeting for July 2 B O L I V I A * BOLIVIA: Oil Ministry Hopeful with Energy Industry’s Growth B R A Z I L AMERICAN TOWER: Seeks US$1.25 Bil. Revolving Credit Refinancing AMRO REAL: Inter-American Investment Okays Two Credit Lines BANCO NACIONAL: Board Grants BRL349.5-Mil. Loan to Integracao BANCO SCHAHIN: Moody's Assigns Ba3 Foreign Currency Rating BASELL AF: Moody's Rates EUR1.65 Bln New Bank Facilities at Ba2 BRASKEM SA: To Halt Dimethyl Terephthalate Feedstock Production BRASKEM SA: Using SmartPlant Software to Boost Productivity GERDAU AMERISTEEL: Inks Deal with Steelworkers at Canadian Mill GERDAU SA: Eyes Acquisition Outside Latin America JAPAN AIRLINES: S&P Places B+ Credit Rating Under Negative Watch PETROLEO BRASILEIRO: May Invest in Ethanol Pipeline PETROLEO BRASILEIRO: Inks LNG Cooperation Pact with Sonatrach * BRAZIL: Moody's Places Ratings on Review for Likely Upgrade * BRAZIL: Currency Gains Due to Likely Moody's Upgrade C A Y M A N I S L A N D S C60 EUROPEAN: Proofs of Claim Filing Is Until June 5 C60 EUROPEAN LONG: Proofs of Claim Must be Filed by June 5 CABLE & WIRELESS: Earns GBP174 Million in Year Ended March 31 NEMO INTERNATIONAL: Proofs of Claim Filing Deadline Is June 5 PACTUAL CORPORATE: Proofs of Claim Filing Is Until June 5 UNIVEST CONVERTIBLE: Proofs of Claim Filing Ends on June 6 UNIVEST DIVERSIFIED: Proofs of Claim Filing Deadline Is June 6 UNIVEST HIGH: Proofs of Claim Must be Filed by June 6 C H I L E GENERAL MOTORS: May Sell Allison Transmission to Boost Liquidity GENERAL MOTORS: SEC Inquiry May Need Restatement of Past Results C O L O M B I A HEXION SPECIALTY: Signs Pact with ARKEMA to Buy German Business C U B A * CUBA: Inks Cooperation & Technical Aid Agreement with India * CUBA: To Build Hydroelectric Plant in Rio Grande D O M I N I C A N R E P U B L I C GERDAU SA: Buying 30% Stake in Industrias Nacionales for US$42MM E L S A L V A D O R PERRY ELLIS: George Pita To Resign as Chief Financial Officer G U A T E M A L A BRITISH AIRWAYS: Cancels Italy Flights Due to Alitalia Strike BRITISH AIRWAYS: Investing GBP25 Mln on New 550 Airport Vehicles G U Y A N A DIGICEL LTD: Will Implement New Weekend Phone Call Rates J A M A I C A AIR JAMAICA: Edmund Bartlett Criticizes London Route Sale NATIONAL WATER: Investing Under US$390MM on Computerized System NATIONAL WATER: Must Settle Impasse with Major Supplier M E X I C O AMSCAN HOLDINGS: Credit Increase Cues S&P to Affirm Ratings BAUSCH & LOMB: Advanced Medical May Vie with Warburg Pincus' Bid EMPRESAS ICA: Inks Contract to Build Water Supply in Queretaro EPICOR SOFTWARE: Earns US$4.4 Mil. in First Qtr. Ended March 31 PORTRAIT CORP: Waiting Period on CPI Corp.'s Acquisition Expires RIO VISTA: Incurs US$470,000 Net Loss in Quarter Ended March 31 N I C A R A G U A * NICARAGUA: Taking Steps To Solve Energy Deficit P A N A M A AES CORP: Acquires 51% Stake in IC ICTAS Energy Group AES CORP: Awards US$7.1-Million Compensation to Paul Hanrahan AES CORP: Eyes 20% Boost in Earnings Through 2011 P U E R T O R I C O ADVANCE AUTO: Elwyn Murray Assumes Exec. VP-Merchandising Role ADVANCED MEDICAL: Mulls Competing Offer for Bausch & Lomb ADVANCED MEDICAL: B&L Acquisition Cues S&P's Developing Watch SANTANDER BANCORP: Board Declares US$0.16 Per Share Dividend T R I N I D A D & T O B A G O DIGICEL LTD: Peter Permell Calls on Firm To Make Public Apology U R U G U A Y GENERAL MOTORS: In Talks w/ Investors About Delphi's Ch. 11 Exit GENERAL MOTORS: Gets US$4.1 Bil. Credit Facility Commitments V E N E Z U E L A DAIMLERCHRYSLER AG: Court Authorizes Collins & Aikman Settlement DAIMLERCHRYSLER AG: Chery Denies Report About Deal's Delay PETROLEOS DE VENEZUELA: Bonds Affected by RCTV Conflict PETROLEOS DE VENEZUELA: Government Creating Three Units * VENEZUELA: RCTV Hands Over Broadcast Infrastructure to Gov't - - - - - ================================= A N T I G U A & B A R B U D A ================================= BETONSPORTS: Officials Plead Guilty to Fraud Charges ---------------------------------------------------- Officials of Internet gambling firm BetOnSports have pleaded guilty to "racketeering charges" on behalf of the company before the federal court in St. Louis, The Associated Press reports. Catherine Hanaway, Esq., said in a statement that by pleading guilty, BetOnSports admitted that: -- it ran an illegal gambling business, -- laundered money, and -- committed mail and wire fraud. In exchange for immunity against future related charges filed against BetOnSports directors, the company agreed to bring forth witnesses and evidence in the pending cases against the co-defendants, GamingNews.com notes. According to GamingNews.com, BetOnSports could be fined about US$500,000 or more, based on the financial gain or loss caused by the enterprise. The firm will undergo permanent injunction that requires it to repay money received from US gamblers as of June 1, 2006. GamingNews.com relates that BetOnSports is in the process of paying off clients, creditors and works, with the help of the Financial Services Regulatory Committee in Antigua. Earlier this month, BetOnSports founder Gary Stephen Kaplan pleaded not guilty to racketeering and other charges, according to Ms. Hanaway's statement. The trial against Mr. Kaplan and BetOnSports Chief Executive David Carruthers continues, the AP says. The AP relates that the prosecutors argued Mr. Kaplan's release, saying that the BetOnSports founder had planned to escape to a country that would not extradite him. The prosecutors told the AP that Mr. Kaplan had these items when he was arrested in March: -- a handcuff key, -- five passports, and -- cash from four nations. Mr. Kaplan was arrested in the Dominican Republic. His passports had his picture, different names, places of birth or other information, the AP says, citing Mike Fagan, the lead prosecutor. Emily Swoboda at GamingNews.com emphasizes that Mr. Fagan said the passports included: -- one from Israel in a name other than Mr. Kaplan's, -- a US passport acquired in Costa Rica for which he failed to provide his real social security number; -- two Peruvian passports with fake names, with one that belonged to a woman; and -- one Dominican Republic passport. Mr. Kaplan has had others securing lodging for him in names other than his own, GamingNews.com's Ms. Swoboda notes, citing Mr. Fagan. Referring to an FBI affidavit, Mr. Fagan said that the large sums of cash came "from countries where extradition is difficult or impossible." Mr. Kaplan's plan to win diplomatic protection and asylum in Nicaragua was detailed in a spiral notebook. Mr. Kaplan has US$107 million in assets in other countries and has multiple bank accounts, the AP relates. GamingNews.com's Ms. Swoboda underscores that Mr. Kaplan has traveled to Israel, Venezuela and Argentina on his US passport. He admitted to bribing authorities. Warren Hoeffner, Mr. Kaplan's father-in-law told the AP that the BetOnSports founder thought he could legally operate a gambling business outside the US. Mr. Kaplan wouldn't flee or do anything that might hurt his relatives. Mr. Kaplan's wife is purchasing a house in St. Louis and is will be moving there with their two children. Mr. Hoeffner said that he could put up houses that total about US$6.6 million to ensure Mr. Kaplan's appearance in court. Mr. Kaplan's legal representatives requested U.S. Magistrate Judge Mary Ann Medler for more time to answer the accusations, the AP notes. Meanwhile, GamingNews.com says that Mr. Carruthers remains on house arrest in St. Louis. He was arrested in Dallas while changing planes on his way to Costa Rica. He pled not guilty on May 14. A trial date has not been set, the AP states. BetOnSports was forced in August 2006 to close down its US business. The US action against on online gaming started in July 2006 with the arrest of BetOnSports Chief Executive David Carruthers, Reuters states. As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2007, BetOnSports was ordered last year by a U.S. federal court to stop operating in Antigua and Costa Rica -- from where it accepted bets from thousands of American customers. The federal court ruling said that deposits paid by American bettors should be returned. In December 2006, the Eastern Caribbean Supreme Court ruled that the online gambling company couldn't sell its Antiguan operations. Instead, the company was asked to provide the regulatory commission an account of all its assets. BetonSports is an online gaming company publicly trading on the London Stock Exchange, but has no operations in the United Kingdom. Around 80% of the company's business operates in the United States, where sports betting is illegal except in the State of Nevada. The group also has operations in China, Argentina, and Mexico. BetOnSports was ordered last year by a U.S. federal court to stop operating in Antigua and Costa Rica -- from where it accepted bets from thousands of American customers. ================= A R G E N T I N A ================= AES CORPORATION: Provides Financial Guidance Through 2011 --------------------------------------------------------- The AES Corporation announced its long-term financial guidance through 2011. Diluted earnings per share from continuing operations are expected to increase from 2007 guidance of US$1.04 to between US$1.75 and US$2.15 in 2011, yielding a compound annual growth rate -- CAGR -- of between 14% and 20%. Net cash flow from operating activities is expected to increase from US$2.2 billion to US$2.3 billion in 2007 to between US$3 billion and US$4 billion in 2011, an increase of between 30% and 74%. Free cash flow (a non-GAAP financial measure) is expected to increase from between US$1.2 billion and US$1.4 billion in 2007 to between US$2.3 billion and US$3.3 billion in 2011, an increase of between 64% and 136%. Subsidiary distributions (a non-GAAP financial measure) are expected to increase from US$1.1 billion in 2007 to between US$1.5 billion and US$2.5 billion in 2011, an increase of between 36% and 127%. "We continue to see AES delivering strong long-term earnings growth through our business development pipeline and investment in new and adjacent markets," said AES President and Chief Executive Officer Paul Hanrahan. "Alternative energy is a promising sector within the energy industry and will be an important driver in our overall growth strategy. We also will continue to deliver long-term earnings growth from our core power business, by focusing our expansion efforts on markets with a growing demand for power." In its core power business, AES plans to expand its current base of 40,000 MW worldwide to up to 46,500 MW by 2011. The company currently has five power plants under construction totaling 1,682 MW in four countries and 20,000 MW of potential new greenfield power plants worldwide in its development pipeline. AES will focus its expansion in selected markets where it currently has a significant presence or in new markets that have a high growth potential through platform expansions, selective acquisitions and other new projects. In the area of alternative energy, the Company plans to more than triple its wind capacity over the next four years by adding approximately 2,100 MW in new wind generation worldwide by 2011. The company has 600 MW of wind generation in operations, one 233 MW power plant under construction and 3,000 MW of wind projects in various stages of development throughout the world. In the emerging greenhouse gas emission offset industry, the Company has targeted a production level of up to 26 million tons per year of tradable offsets, or Certified Emission Reductions, by 2011. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES Corp.'s Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. Fuels include biomass, diesel, coal, gas and hydro. The group also pursues business development activities in the region. AES has been in the region since May 1993, when it acquired the CTSN power plant in Argentina. * * * In Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. FAPA SRL: Trustee Verifies Proofs of Claim Por Via Incidental ------------------------------------------------------------- The court-appointed trustee for Fapa S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim "por via incidental." The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Santa Fe 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 Fapa 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 Fapa's accounting and banking records will be submitted in court. Infobae did not state the reports submission dates as well as the name of the trustee. The debtor can be reached at: Fapa S.R.L. Ruta Provincial Numero 2, Km. 12.5, Monte Vera Santa Fe, Argentina INSTITUTO MODELO: Trustee Verifies Proofs of Claim Until June 22 -------------------------------------------------------------- Marcos Adrian Santa Cruz, the court-appointed trustee for Instituto Modelo Viedma S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until June 22, 2007. The National Commercial Court of First Instance in Viedma, Rio Negro, approved a petition for reorganization filed by Instituto Modelo Viedma, according to a report from Argentine daily Infobae. Mr. Santa Cruz will present the validated claims in court as individual reports on Aug. 31, 2007. The court will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Instituto Modelo Viedma 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 Instituto Modelo's accounting and banking records will be submitted in court on Oct. 1, 2007. The informative assembly will be held on April 9, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The trustee can be reached at: Marcos Adrian Santa Cruz Saavedra 566, Viedma Rio Negro, Argentina MARANELLO AUTOMOTORES: Court Appoints Reynaldo Munch as Trustee --------------------------------------------------------------- The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 2, has appointed Otto Reynaldo Munch as the trustee for Maranello Automotores SA's reorganization proceeding. The court approved a petition for reorganization filed by Maranello Automotores, according to a report from Argentine daily La Nacion. Mr. Munch will verify creditors' proofs of claim. He will present the validated claims in court as individual reports. The court will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Maranello Automotores 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 Maranello Automotores' accounting and banking records will be submitted in court. La Nacion did not state the reports submission dates. The trustee can be reached at: Otto Reynaldo Munch Maipu 509 Buenos Aires, Argentina PINNACLE ENTERTAINMENT: Earns US$2.9 Mil. in Qtr. Ended March 31 ---------------------------------------------------------------- Pinnacle Entertainment Inc. reported net income of US$2.9 million, versus the prior-year quarter's net income of US$13.5 million. Such results reflect significant pre-opening and development costs, non-cash charges related to stock compensation and losses from discontinued operations. For the first quarter of 2007, revenues were US$232.8 million. The first quarter's results reflect the benefit of the December 2006 acquisition of the President Riverboat Casino. For the 2006 first quarter, revenues were US$234.1 million. The 2006 results included exceptional first quarter operating results at Boomtown New Orleans, which benefited from the temporary closure of many competitors in the New Orleans and Gulf Coast areas following the major hurricanes of 2005. The company's balance sheet as of March 31, 2007, had total assets of US$2 billion, total liabilities of US$1 billion, and total stockholders' equity of US$965 million. Liquidity The company had about US$441 million in cash, cash equivalents and restricted cash at March 31, 2007. Of the company's US$1 billion bank credit facility, about US$707 million remained unutilized as of March 31, 2007. The company's working capital was US$364.1 million at March 31, 2007, versus US$75.5 million at Dec. 31, 2006, the increase primarily attributed to the common stock offering completed in early 2007. In January 2007, the company completed the issuance of 11.5 million newly issued shares of common stock, resulting in net proceeds of about US$353 million, US$60 million of which was used to repay the company's revolver facility in February 2007. As of March 31, 2007, the company's debt consisted of US$275 million of term loans under the credit facility, various letters of credit totaling about US$18.3 million and two issues of senior subordinated indebtedness: US$300 million aggregate principal amount of 8.25% senior subordinated notes due March 2012 and US$135 million aggregate principal amount of 8.75% senior subordinated notes due October 2013. As of March 31, 2007, the company had a US$1 billion bank credit facility, including a US$625 million revolving credit facility and a US$375 million term loan facility, which facilities mature in December of 2010 and 2011, respectively. A full-text copy of the company's first quarter 2007 report is available for free at http://ResearchArchives.com/t/s?1ffe "Our properties are continuing to perform well and posted solid overall results in the quarter," said Daniel R. Lee, chairman and chief executive officer of Pinnacle Entertainment Inc. "Just as important, we've made significant progress on our development pipeline. Both Lumière Place and our hotel expansion at L'Auberge du Lac will be 'topping off' this month. We continue to work on the design of our Atlantic City project while preparing the project site. In Baton Rouge, we put more than 500 acres of land under contract and have announced plans for a creative mixed-use development anchored by a luxurious casino and championship golf course." About Pinnacle Entertainment Headquartered in Las Vegas, Nevada, Pinnacle Entertainment Inc. (NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates casinos in Nevada, Louisiana, Indiana and Argentina, owns a hotel in Missouri, receives lease income from two card club casinos in the Los Angeles metropolitan area, has been licensed to operate a small casino in the Bahamas, and owns a casino site and has significant insurance claims related to a hurricane-damaged casino previously operated in Biloxi, Mississippi. Pinnacle opened a major casino resort in Lake Charles, Louisiana in May 2005 and a new replacement casino in Neuquen, Argentina in July 2005. * * * Pinnacle Entertainment Inc. carries Moody's Investors Service's B2 Corporate Family Rating. At the same time, the company carries Standard & Poor's Ratings Services 'BB-' rating and '1' recovery rating following Pinnacle's announcement of a US$250 million senior secured bank facility add-on. TARAI SA: Proofs of Claim Verification Deadline Is July 10 ---------------------------------------------------------- Ana Maria Lopez, the court-appointed trustee for Tarai S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until July 10, 2007. Ms. Lopez will present the validated claims in court as individual reports on Sept. 6, 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 Tarai 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 Tarai's accounting and banking records will be submitted in court on Oct. 19, 2007. Ms. Lopez is also in charge of administering Tarai'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 Lopez San Martin 662 Buenos Aires, Argentina TODONAVIDAD SRL: Proofs of Claim Verification Ends on Aug. 6 ------------------------------------------------------------ Ulrico Luis Lauren, the court-appointed trustee for Todonavidad SRL's bankruptcy proceeding, verifies creditors' proofs of claim until Aug. 6 2007. Mr. Lauren will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 2, 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 Todonavidad 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 Todonavidad's accounting and banking records will be submitted in court. La Nacion did not state the reports submission dates. Mr. Lauren is also in charge of administering Todonavidad's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Todonavidad SRL Uriburu 362 Buenos Aires, Argentina The trustee can be reached at: Ulrico Luis Lauren Libertad 293 Buenos Aires, Argentina ============= B A H A M A S ============= TEEKAY SHIPPING: Completes Initial Tender Offer for OMI Shares -------------------------------------------------------------- Teekay Shipping Corporation and A/S Dampskibsselskabet TORM reported that, based on preliminary information provided by the depositary, OMI Corporation shareholders tendered approximately 49,762,507 shares (including shares tendered pursuant to guaranteed delivery procedures), which, after accounting for the 2,415,610 restricted shares that will be cancelled on the date of purchase of the tendered shares, represents approximately 83.5% of all outstanding shares. Pursuant to the terms of the tender offer by Teekay and TORM for all of the outstanding common stock of OMI, all shares that were validly tendered and not withdrawn have been accepted for payment. The initial period of the tender offer expired at 5:00 p.m., New York City time, on May 25, 2007. Teekay and TORM intend to make payment on May 31, 2007, to OMI shareholders that validly tendered shares. The same day that the shares are purchased, OMI will pay a special cash dividend in the amount of US$0.10 per share, assuming a May 31, 2007, purchase date. Payment for shares validly tendered during the initial offering period shall be made promptly in accordance with the terms of the tender offer. Teekay and TORM also commenced a subsequent offering period for all remaining OMI shares that will expire at 5:00 p.m., New York City time, on Tuesday, June 5, 2007, unless further extended. During the subsequent offering period, shares will be accepted for payment as they are tendered at the same offer price paid during the initial offer period of US$29.25 net per share in cash. All shares validly tendered during this subsequent offering period will be immediately accepted and payment will be made promptly after acceptance, in accordance with the terms of the offer. Shares tendered during the subsequent offering period may not be withdrawn and cannot be delivered by the guaranteed delivery procedure. Teekay Shipping Corp., a Marshall Islands corporation headquartered in Nassau, Bahamas, transports more than 10% of the world's sea borne oil and has expanded into the liquefied natural gas shipping sector through its publicly listed subsidiary, Teekay LNG Partners L.P., and into the offshore production, storage and transportation sector through its publicly-listed subsidiary, Teekay Offshore Partners L.P. With a fleet of over 140 tankers, offices in 17 countries and 5,100 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. * * * As reported in the Troubled Company Reporter-Latin America on April 23, 2007, Moody's Investors Service affirmed the debt ratings of Teekay Shipping Corporation (Ba3 senior unsecured, Ba2 corporate family, SGL-2 speculative grade liquidity rating, negative outlook) upon the announcement of the planned acquisition of OMI Corporation (B1 senior unsecured, Ba3 corporate family, stable outlook) through an acquisition vehicle jointly owned by Teekay and A/S Dampskibsselskabet TORM. The acquisition assigns an enterprise value to OMI of US$2.2 billion, including the assumption of the net debt of OMI, which stood at US$390 million at Dec. 31, 2006. =============== B A R B A D O S =============== CABLE & WIRELESS: Reports Robust Growth in Barbados Operations -------------------------------------------------------------- Chris Hetherington, Cable & Wireless' Chief Executive Officer for the Americas and Caribbean, told the Caribbean Broadcasting Corp. that the Barbadian market showed robust growth this year. Cable & Wireless' broadband subscribers grew by 75% this year, compared to last year. Meanwhile, mobile clients increased by 27%, CBC relates. At the end of the financial year ended March 31, 2007, mobile client base increased by 44% compared to the previous period, CBC notes, citing Cable & Wireless' unit C&W International. Cable & Wireless' mobile revenue rose 19% to GBP406 million in 2006, compared to the previous year. Its and broadband revenue increased by 45% to GBP77 million. Meanwhile, operating profit grew 6% to GBP277 million, CBP states. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and Technology sectors last week, the rating agency confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% * Issuer: Cable & Wireless International Finance B.V. Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- GBP200 million 8.625% Senior Unsecured Regular Bond/Debenture Due 2019 B1 LGD4 60% Cable & Wireless Plc's long-term and short-term foreign issuer credit carry Standard & Poor's BB- ratings. Its short-term foreign and local issuer credit were rated at B. The outlook is negative. TARGUS GROUP: S&P Puts All Ratings Under Negative Watch ------------------------------------------------------- Standard & Poor's Ratings Services placed all of its ratings on Targus Group International Inc., including the 'B' corporate credit rating, on CreditWatch with negative implications. "The CreditWatch listing is based on the company's weaker-than-expected progress in reducing excess inventories through March 31, 2007, and the expectation that covenant cushion will significantly tighten in the coming quarters," said Standard & Poor's credit analyst Christopher Johnson. "Although year-to-date EBITDA and sales have met and exceeded the company's 2007 budget, margins continue to be pressured by higher raw material costs and product mix, and debt leverage remains very high," said Mr. Johnson. Standard & Poor's will review Targus' strategic plan with management, evaluate their progress in reducing excess inventories, and monitor the status of the company's liquidity and covenant cushion before resolving the CreditWatch. About Targus Targus Group International Inc. -- http://www.targus.com/-- invented the notebook case and continues to advance the mobile accessories category with innovative and relevant solutions for today's mobile lifestyle. Targus products enhance productivity, connectivity, and security, liberating users to work in any and all environments with the utmost convenience and comfort. Founded in 1983, Targus headquarters are located in Anaheim, California, with offices worldwide and distribution agreements in more than 100 countries, including Germany, France, Italy, Spain and United Kingdom. The company has Latin America operations in Argentina, Barbados, Costa Rica and El Salvador. ============= B E R M U D A ============= CIC SOFTWARE: Proofs of Claim Filing Is Until June 8 ---------------------------------------------------- CIC Software Technologies Ltd.'s creditors are given until June 8, 2007, to prove their claims to Ernest A. Morrison, 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. CIC Software's shareholders agreed on May 21, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Ernest A. Morrison Milner House, 18 Parliament Street Hamilton, Bermuda CIC SOFTWARE: Schedules Final General Meeting on June 26 -------------------------------------------------------- CIC Software Technologies Ltd.'s final general meeting is scheduled on June 26, 2007, at 10:00 p.m. at: Milner House, 18 Parliament Street Hamilton HM12, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- by resolution dissolving the company. The liquidator can be reached at: Ernest A. Morrison Milner House, 18 Parliament Street Hamilton, Bermuda ACCOUNTANTS PROFESSIONAL: Proofs of Claim Filing Ends on June 8 --------------------------------------------------------------- The Accountants Professional Risk Insurance Ltd.'s creditors are given until June 8, 2007, to prove their claims to Paul Van Elten and Keith Vance, 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. The Accountants shareholders agreed on May 22, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidators can be reached at: Paul Van Elten Keith Vance Craig Appin House, 8 Wesley Street Hamilton, Bermuda ACCOUNTANTS PROFESSIONAL: Final General Meeting Is on July 3 ------------------------------------------------------------ The Accountants Professional Risk Insurance Ltd.'s final general meeting is scheduled on July 3, 2007, at 9:30 a.m. at: Craig Appin House, 8 Wesley Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- by resolution dissolving the company. The liquidators can be reached at: Paul Van Elten Keith Vance Craig Appin House, 8 Wesley Street Hamilton, Bermuda MARTIN CURRIE: Proofs of Claim Filing Ends on June 8 ---------------------------------------------------- Creditors of Martin Currie Predecessor Fund Ltd., fka Martin Currie China "A" Fund Limited, are given until June 8, 2007, to prove their claims to Peter Martin, 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. Martin Currie's shareholders agreed on May 21, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Peter Martin Mello Jones & Martin Hamilton, Bermuda MARTIN CURRIE: Sets Final General Meeting for July 2 ---------------------------------------------------- Martin Currie Predecessor Fund Ltd., fka Martin Currie China "A" Fund Limited's final general meeting is scheduled on July 2, 2007, at 10:00 p.m. at: Thistle House, 4 Burnaby Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- by resolution dissolving the company. The liquidator can be reached at: Peter Martin Mello Jones & Martin Hamilton, Bermuda ============= B O L I V I A ============= * BOLIVIA: Oil Ministry Hopeful with Energy Industry’s Growth ------------------------------------------------------------- Bolivia's Oil Ministry says that the country will turn into a center of the South American energy market due to the construction of the region's largest gas pipelines, Prensa Latina reports. Energy Minister Carlos Villegas said in an interview that only Argentina's Northeastern Gas Pipeline -- GNEA -- with an area of 932 miles, will guarantee supplies to Buenos Aires and Brazil. Citing Mr. Villegas, Prensa Latina relates that the GNEA construction project, signed by Bolivian Presidents Evo Morales and his Argentine counterpart Nestor Kirchner on Oct. 19 last year, is expected to be completed on December 2009. Reports show that Bolivia ranks as the second South American country with the largest gas reserves. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer =========== B R A Z I L =========== AMERICAN TOWER: Seeks US$1.25 Bil. Revolving Credit Refinancing --------------------------------------------------------------- American Tower Corporation is seeking to refinance the existing senior secured credit facilities at the American Tower operating company level with its new senior unsecured credit facility. The proposed new credit facility is expected to consist of a US$1.25 billion revolving credit facility. The company is in the process of requesting commitments from a group of lenders for the new credit facility, and is seeking to have the new credit facility in place before the end of the second quarter of 2007. The new credit facility would be subject to satisfactory lender commitments, negotiation, execution and delivery of definitive loan documentation and various other conditions. The company expects to use borrowings under the new credit facility in part to repay all amounts outstanding under the existing operating company credit facilities, under which approximately US$1 billion in principal amount is currently outstanding. The balance of the new credit facility would be available for general corporate purposes, including purchases of shares of the Company’s Class A common stock. About American Tower Based in Boston, Massachusetts, American Tower Corporation (NYSE: AMT) -- http://www.americantower.com/-- is an independent owner, operator and developer of broadcast and wireless communications sites in the U.S., Mexico and Brazil. American Tower owns and operates over 22,000 sites and manages about 2,000 revenue producing rooftop and tower sites. * * * As reported in the Troubled Company Reporter on Feb. 16, 2007, Moody's Investors Service upgraded the corporate family rating of American Tower Corporation to Ba1 from Ba2, and affirmed the company's SGL-1 liquidity rating. The outlook is stable. AMRO REAL: Inter-American Investment Okays Two Credit Lines ----------------------------------------------------------- The Inter-American Investment Corporation said in a press release that it has ratified two credit lines of up to US$100 million for ABN Amro Real. IIC told Business News Americas that the first loan is about US$15 million, while the second is US$85 million. The loans will be used to fund lending operations to over 1,400 small and medium-sized enterprises in Brazil. IIC General Manager Jacques Rogozinski said in March that the corporation would expand lending to small and medium-sized enterprises in Latin America by 25% in 2007, compared to 2006, BNamericas states. ABN Amro Real specializes in commercial banking, capital markets, corporate banking, asset management, and trade finance. Its more than 22,000 employees assist over five million clients throughout five thousand different points of sales. In 1999, the bank merged with Brazil's Banco Real. The regional office for Latin America and the Caribbean is located in Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Sept 4, 2006, Moody's Investors Service upgraded Banco ABN AMRO Real S.A.'s long-term foreign currency deposits to Ba3, from B1. Moody's said the rating outlook is stable. BANCO NACIONAL: Board Grants BRL349.5-Mil. Loan to Integracao ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES' directors approved a BRL349.5 million financing to Integracao Transmissora de Energia S/A. The funds will be destined for the installation of a group of transmission lines and substations that comprise stretch 2 of Complexo de Interligacao Norte - Sul III [Interconnection North-South III Complex]. The new stretch, representing a 695-kilometer expansion, will interconnect the municipalities of Colinas to Minacu. BNDES will participate with 70% of the total cost estimated for the project, of BRL499.5 million. Among the merits of the investments is the generation of 1.5 thousand direct jobs during the construction phase and another 400 indirect. The new line will ensure benefits to the Sistema Interligado Nacional [National Interconnected System], such as the outflow or energy from the new generation point located in the States of Tocantins and Para. Besides that, it will enable reduction of transmission losses in the region, with direct repercussion on SIN transmission cost. The project supported by BNDES will also increase the power export capacity of the Northern Region, from 2.3 thousand MW in average, to 3.9 thousand MW in average, and the power import and export capacity of the Southern Region, from 1.7 thousand MW in average, to 3.4 thousand MW in average. Integracao Transmissora de Energia is a Specific Purpose Company, formed by Fundo de Investimento em Participacoes Brasil Energia, Eletronorte, Chesf and Engevix Engenharia. Environmental The project contemplates different environmental impact mitigating programs and will rely on Environmental Management Plans for the construction and control of solid residues. Among the projects aimed at mitigating the impact of the works on the environment are, for example, Programa de Educação Ambiental [Environmental Education Program], Monitoramento e Controle de Processos Erosivos [Monitoring and Control of Erosive Processes], Recuperacao de Areas Degradadas [Recuperation of Degraded Areas], Supressao de Vegetacao [Supression of Vegetation], Monitoramento da Fauna e Recuperacao de Areas Degradadas [Monitoring of the Fauna and Recuperation of Degraded Areas]. About BNDES Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. BANCO SCHAHIN: Moody's Assigns Ba3 Foreign Currency Rating ---------------------------------------------------------- Moody's Investors Service assigned a Ba3 long-term foreign currency rating to Banco Schahin S.A.'s US$300 million Global Euro Medium-term Note Program, with a stable outlook. Moody's also intends to assign a (P)Ba3 long-term foreign currency rating to the senior unsecured notes in the amount of US$100 million to be issued under the program. Moody's stated that the Ba3 bond rating incorporates Banco Schahin's fundamental credit quality, which is reflected by its Ba3 global local-currency deposit rating, and which includes all relevant country risks. At this rating level, Schahin's foreign currency bond rating is unconstrained by Brazil's country ceiling. Banco Schahin is headquartered in Sao Paulo, Brazil. As of March 31, 2007, the bank had R$1.544 billion (US$703.4billion) in total assets and R$202.1 million (U$92.1 million) in shareholders' equity. This rating was assigned to Banco Schahin S.A.: -- US$300million Global Medium Term Note Program: Long-Term Foreign-Currency Bond Rating of Ba3, stable outlook. This rating is expected to be assigned: -- US$100 million Senior Unsecured Notes due in 2010: Long-Term Foreign Currency Bond Rating of (P)Ba3, stable outlook. BASELL AF: Moody's Rates EUR1.65 Bln New Bank Facilities at Ba2 --------------------------------------------------------------- Moody's Investors Service changed the outlook on ratings of Basell AF SCA and its subsidiaries to positive and assigned Ba2/LGD 2 (29%) to the new EUR1.65 billion senior secured bank facilities raised by the group to refinance part of its original LBO package. Basell performance in 2006 was robust as the company continued to benefit from the cyclical upturn in the polyolefin markets. Strong pricing environment and growing volumes allowed Basell to generate strong FCF and reduce its absolute debt to a more sustainable level. Taking into account the effects from the change in the technology revenue accounting policy, Basell's reported EBITDA stood at EUR1.1 billion and adjusted leverage was reduced to x3.2 times at the end of 2006. In the medium term, Moody's notes that Basell's FCF will be mainly affected by CAPEX requirements (including part of the rebuild of Munchsmunster not covered by insurance compensation) and equity contributions to the JVs to deliver future profitable growth; while an efficient WC management, further strengthening of FCF contribution from the differentiated products and increasing distributions from the new JVs are expected to support Basell's FCF as the cycle turns. Moody's review of the outlook for positive reflects continued strength of the polyolefins cycle, while the key risks relate to the prospects of sustained GDP growth in Basell's key markets and in Asia. Looking forward, the improvement of the ratings will depend on the ability to sustain strong FCF through the cycle and maintain the strong balance sheet. Moody's expects that Basell will continue to exercise its prudent financial discipline, while actively managing its portfolio of assets. The rating and the outlook do not factor any M&A activity. In May 2007, Basell refinanced its senior secured bank facilities with new EUR1.65 billion revolving facilities supported by guarantees and first-ranking pledge of shares in group companies representing at least 50% of EBITDA and 65% of total assets. These ratings were affected: * Basell AF SCA: -- Corporate Family Rating -- Ba3 / PD rating - Ba3; -- EUR500 million and US$615 million 2015 senior secured guaranteed notes - B2 / LGD at 5 (84%); * Basell Finance Company -- USD 300 m senior guaranteed notes - B2 / LGD at 5 (84%); * Basell AF SCA and its subsidiaries -- Senior secured bank facilities - PD at Ba2 and LGD at 2 (29%). Headquartered in The Netherlands, Basell AF SCA -- http://www.basell.com/ -- is the producer of polypropylene and advanced polyolefins products, a leading supplier of polyethylene and catalysts, and a global leader in the development and licensing of polypropylene and polyethylene processes. The company, together with its joint ventures, has manufacturing facilities around the world and sells products in more than 120 countries. With research and development activities in Europe, North America and the Asia-Pacific region, Basell is continuing a technological heritage that dates back to the beginning of the polyolefins industry. In 2006, the Company reported Revenues of EUR10.5 billion and EBITDA of EUR1.1 billion. Basell has regional offices in Belgium, Germany, the United States, Brazil and Hong Kong, as well as sales offices in the major markets around the globe. BRASKEM SA: To Halt Dimethyl Terephthalate Feedstock Production --------------------------------------------------------------- Braskem told Chemical Week that it will stop producing dimethyl terephthalate feedstock at Camaari, Brazil. The 80,000-million ton per year dimethyl plant lacks the scale, technology, and cost advantage to compete internationally, Chemical Week says, citing Braskem. Braskem also said that it will temporarily postpone polyethylene terephthalate production, Chemical Week notes. The polyethylene plant can produce about 78,000 million tons yearly, Chemical Week notes. Braskem told Chemical Week that it will study the restart of the polyethylene plant "from a new technological route" that ensures competitive costs for the polyester group in Brazil. Braskem said that it will continue supplying polyethylene terephthalate resin to its clients through a contract with Mossi & Ghisolfi's Brazilian unit, Chemical Week states. Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. * * * As reported in the Troubled Company Reporter-Latin America on March 26, 2007, Fitch Ratings has affirmed its BB+ ratings on Braskem S.A. and Braskem International following the announcement by Braskem, Petrobras and the Ultra Group that they have reached an agreement to acquire the Ipiranga Group's petrochemical, refining and fuel distribution assets. Fitch also affirmed these ratings: Braskem S.A. -- Foreign currency issuer default rating at 'BB+'; -- Local currency issuer default rating at 'BB+';; -- Senior unsecured notes 2008, 2014 at 'BB+'; -- Senior unsecured Perpetual Bonds at 'BB+'; -- Senior unsecured notes 2017 at 'BB+'; -- National rating at 'AA (bra)'; -- Debentures 12th Issuance at 'AA (bra)'; and -- Debentures 13th Issuance at 'AA (bra)'. Braskem International -- Senior unsecured notes 2015 at 'BB+'. BRASKEM SA: Using SmartPlant Software to Boost Productivity ----------------------------------------------------------- Braskem has selected Intergraph's SmartPlant Enterprise engineering software to enhance productivity, increase the capacity of its industrial plants, and support the development of environmentally compliant projects. Sisgraph, Intergraph's exclusive representative in Latin America, was responsible for the sale. Braskem chose Intergraph's SmartPlant Enterprise solutions including PDS(r) and SmartPlant Instrumentation to standardize its tools and improve the accuracy of materials surveys in response to its challenge of building a new piping system in existing plants without interfering with operations. Braskem Engineering Manager Jorge Luis Menezes explained, "We selected Intergraph's solutions because they support our productivity requirements, can integrate multidisciplinary data, and reduce the time needed to create engineering designs. Additionally, Intergraph provides the most complete solution available and its technology is trusted by the market inside and outside of Brazil." Because most plant improvement projects are made in real operating structures, Braskem's engineering team needed to simulate how the new design will interact with the existing plant layout. Braskem plans to perform an as-built plant survey by combining Intergraph's PDS 3D modeling capabilities with laser scanning technology. "We plan to perform a laser scan of the plant to acquire an image of all of its physical objects. That image will become a 3D model which we will process through PDS to develop the project." Braskem piping specialist Ivo Andrei said. Intergraph's systems will reduce the time to design and construct new projects and will improve the overall quality of the projects, resulting in better materials acquisition and fewer operational disruptions as well as facilitate future plant modifications, Mr. Andrei commented. Sisgraph is providing training and support to Braskem and its partner engineering companies to ensure a successful implementation. About Intergraph Intergraph Corp. -- http://www.intergraph.com-- is the leading global provider of spatial information management (SIM) software. Security organizations, businesses and governments in more than 60 countries rely on the company's spatial technology and services to make better and faster operational decisions. Intergraph's customers organize vast amounts of complex data into understandable visual representations, creating intelligent maps, managing assets, building and operating better plants and ships and protecting critical infrastructure and millions of people around the world. About Sisgraph Sisgraph -- http://www.sisgraph.com.br-- has been providing Intergraph solutions to Latin America since 1980. Sisgraph, which is headquartered in Sao Paulo, Brazil, provides exclusive sales, consulting, implementation and training services for all Intergraph products in Latin America. About Braskem Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. * * * As reported in the Troubled Company Reporter-Latin America on March 26, 2007, Fitch Ratings has affirmed its BB+ ratings on Braskem S.A. and Braskem International following the announcement by Braskem, Petrobras and the Ultra Group that they have reached an agreement to acquire the Ipiranga Group's petrochemical, refining and fuel distribution assets. Fitch also affirmed these ratings: Braskem S.A. -- Foreign currency issuer default rating at 'BB+'; -- Local currency issuer default rating at 'BB+';; -- Senior unsecured notes 2008, 2014 at 'BB+'; -- Senior unsecured Perpetual Bonds at 'BB+'; -- Senior unsecured notes 2017 at 'BB+'; -- National rating at 'AA (bra)'; -- Debentures 12th Issuance at 'AA (bra)'; and -- Debentures 13th Issuance at 'AA (bra)'. Braskem International -- Senior unsecured notes 2015 at 'BB+'. GERDAU AMERISTEEL: Inks Deal with Steelworkers at Canadian Mill --------------------------------------------------------------- Gerdau Ameristeel Corporation has reached an agreement with the United Steelworkers at Gerdau Ameristeel's Manitoba, Canada mill. The new contract is effective May 24, 2007, and expires on May 23, 2012. "The Company is pleased that another contract has been completed with the United Steelworkers. While there are three remaining negotiations at Calvert City Kentucky; Joliet, Illinois and Sand Springs, Oklahoma, the company continues to work to find common ground to settle remaining agreements at these facilities," said Terry Danahy, Gerdau Ameristeel's Vice President and Chief Human Resources Officer. Gerdau Ameristeel -- http://www.gerdauameristeel.com/-- (NYSE: GNA; TSX:GNA.TO) is the second largest minimill steel producer in North America with annual manufacturing capacity of over 9 million tons of mill finished steel products. Through its vertically integrated network of 17 minimills (including one 50%-owned joint venture minimill), 17 scrap recycling facilities and 51 downstream operations (including seven joint venture fabrication facilities), Gerdau Ameristeel serves customers throughout North America. The company's products are generally sold to steel service centers, to steel fabricators, or directly to original equipment manufacturers for use in a variety of industries, including construction, automotive, mining, cellular and electrical transmission, metal building manufacturing and equipment manufacturing. The company is a subsidiary of Brazil's Gerdau SA. * * * As reported in the Troubled Company Reporter-Latin America on May 16, 2007, Standard & Poor's Ratings Services raised its corporate credit rating on Tampa, Florida-based Gerdau Ameristeel Corp. to 'BB+' from 'BB' and removed all ratings from CreditWatch, where they were placed with positive implications on Jan. 17, 2007. S&P also raised its rating on the company's senior unsecured debt to 'BB+' from 'BB'. S&P said the outlook is stable. GERDAU SA: Eyes Acquisition Outside Latin America ------------------------------------------------- Gerdau SA will make its next acquisition outside Latin America, financial daily Gazeta Mercantil reports. Business News Americas relates that Gerdau acquired a majority stake in Peruvian steel maker Siderperu in 2006. It bought steel firms in the US. Gerdau also acquired Mexican company Siderurgica Tultitlan this year for US$259 million. "We base our growth on acquisitions. We plan on making our next investments in global markets," Gerdau Chief Financial Officer Osvaldo Schmirmer told Gazeta Mercantil. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. * * * As reported in the Troubled Company Reporter on Jan. 19, 2007, Standard & Poor's Ratings Services placed its ratings, including its 'BB' corporate credit rating, on Tampa, Fla.-based Gerdau Ameristeel Corp. on CreditWatch with positive implications. JAPAN AIRLINES: S&P Places B+ Credit Rating Under Negative Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B+' long-term corporate credit ratings on Japan Airlines Corp. and the company's 100% subsidiary, Japan Airlines International Co. Ltd., on CreditWatch with negative implications. This action reflects the heightening need to scrutinize the credit impact of the current stance financial institutions are taking toward JAL. At the same time, the 'B+' ratings on the companies' long-term senior unsecured debt ratings were affirmed. According to media reports, JAL has requested capital support from its main banks in the form of a debt-for-equity swap on a portion of its debt obligations. In response to the reports, JAL asserts that nothing has been determined regarding a capital boost. Standard & Poor's does not hold any concrete views on the authenticity of the media reports. However, under Standard & Poor's credit ratings criteria, a debt-for-equity swap is considered to be equivalent to a default on debt obligations. In general, Standard & Poor's will lower the corporate credit rating on a company that has proceeded with a debt-for-equity swap to 'SD'. Standard & Poor's has not been able to take an optimistic stance regarding recovery in JAL's performance thus far. Moreover, following numerous recent media reports, Standard & Poor's will have to further scrutinize the stances of the financial institutions involved. Despite Standard & Poor's belief that there will be no major concerns regarding JAL's short-term liquidity, the corporate credit rating increasingly needs to be reviewed to reflect the credit impact of the financial institutions' stance toward the company. To remove the rating on JAL from CreditWatch, Standard & Poor's will have to focus on the stance of the financial institutions toward the company. The long-term credit rating on JAL may be lowered if the company is unable to achieve recovery in its business performance in line with its medium-term management plan, or if the likelihood that its main banks will conduct a debt-for-equity swap increases. Conversely, it is likely that the rating will be affirmed if recovery in the company's business performance exceeds expectations or the company is able to boost its capitalization without a debt-for-equity swap. The progress in corporate restructuring, particularly with regard to lowering its personnel costs and improving business performance in the next several months, seems to be an important factor for banks in determining their transaction policy. Standard & Poor's will focus heavily on whether the company will be able to achieve improvement in its business performance according to its plans. The long-term senior unsecured debt ratings were affirmed. If the financial institutions proceed with a debt-for-equity swap, this will actually underpin the credit quality of the JAL's remaining outstanding bonds. In contrast, if there is a chance that bondholders might incur a financial burden, the unsecured debt ratings will also come under downward pressure. At the moment, JAL's corporate credit and senior unsecured debt ratings are at the same level. The debt rating was lowered by one notch because JAL had a high proportion of secured debt. However, a one-notch increase was allowed, based on the expectation of debt forgiveness by creditor banks in case of default. Japan Airlines International Co. Ltd. Senior Unsecured Local Currency B+ Ratings Affirmed; CreditWatch/Outlook Action To From -- ---- Japan Airlines Corp. Corporate Credit Rating B+/Watch Neg/-- B+/Negative/-- Ratings Affirmed; CreditWatch/Outlook Action; New Rating To From -- ----- Japan Airlines International Co. Ltd. Corporate Credit Rating B+/Watch Neg/-- B+/Negative/NR Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. PETROLEO BRASILEIRO: May Invest in Ethanol Pipeline --------------------------------------------------- A Brazilian state-run oil firm Petroleo Brasileiro spokesperson told reporters that the company could invest in a 900-kilometer ethanol pipeline connecting Mato Grosso do Sul to the southern port of Paranagua in Parana. Business News Americas relates that the pipeline project would begin in Campo Grande in Mato Grosso do Sul and cross Parana to Paranagua, which has ethanol storage tanks. According to BNamericas, Petroleo Brasileiro would partner with Japanese trading firm Mitsui, which is negotiating with the Parana government for the project. This would be Mitsui's and Petroleo Brasileiro's second ethanol transportation project. The two firms already signed a memorandum of understanding for a 1,150-kilometer pipeline connecting Goias and Sao Paulo port Sao Sebastino, where Petroleo Brasileiro has a fuels terminal. BNamericas notes that Petroleo Brasileiro wants to ship ethanol fuel chiefly to Japan. It is also considering other markets like South Korea, the United States and South Africa. Investments in the two projects are expected at US$2 billion. They are included in the Brazilian government's acceleration growth program, BNamericas 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. PETROLEO BRASILEIRO: Inks LNG Cooperation Pact with Sonatrach ------------------------------------------------------------- Petroleo Brasileiro SA aka Petrobras and Algerian national oil company Sonatrach, signed a Memorandum of Understandings to study, among others projects, a possible cooperation in Liquefied Natural Gas to supply the import terminals that Petrobras is deploying in Pacem and in the Guanabara Bay. Signed in Algeria, the agreement also foresees exploration and production cooperation studies both for onshore and, especially, offshore blocks in Brazil, Algeria, and in other countries of mutual interest. Petrobras and Sonatrach, which is the African continent's biggest and ranked 12th in the world according to Petroleum Intelligence Weekly, already have a long standing commercial relationship that involves, by and large, oil, naphtha and LPG. With the MOU, workgroups will be created and meet periodically to discuss cooperation opportunities. Other issues the companies will evaluate include increasing and developing new commercial operations for oil and oil derivatives, petrochemical and downstream opportunities, in addition to Petrobras' participation in the Algerian Petroleum Institute. Petrobras and Sonatrach also signed an LNG Master Supply Agreement that outlines the general clauses that determine the bases the two companies will comply with for possible LNG purchase and sales. Petrobras' president, Jose Sergio Gabrielli de Azevedo, and Sonatrach's president and general director, Mohamed Meziane, signed the MOU. The Master Agreement, meanwhile, was signed by Petrobras' Gas & Energy director, Ildo Sauer, and Sonatrach's Vice-Executive President, Chawki Rahal. The Brazilian and Algerian governments support the companies' partnership. Algeria's Minister of Mines & Energy, Chakib Khelil, and Brazil's ambassador to Algeria, Sergio Danese, also attended the agreement signing ceremony. 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. * BRAZIL: Moody's Places Ratings on Review for Likely Upgrade ------------------------------------------------------------- Moody's Investors Service placed on review for possible upgrade Brazil's key ratings to determine the extent to which improved macroeconomic, external, and fiscal prospects are likely to lead to a sustained improvement in the government's overall debt profile that may reduce Brazil's medium-term credit risks. The review will cover Brazil's Ba1 foreign-currency bond ceiling and the government's Ba2 foreign- and local-currency bond ratings. The foreign-currency bond ceiling is based on the government foreign-currency bond rating and Moody's assessment of a moderate risk of a payments moratorium in the event of a government default. The country's Ba3 ceiling for foreign-currency bank deposits will also come under the review. "While Brazil's external vulnerability indicators have sustained an impressive reduction, the improvement in government debt indicators has been less striking," said Moody's Senior Analyst Mauro Leos. "Still, the domestic debt structure is improving, and government debt ratios are trending downwards." Not only is Brazil benefitting from pro-active debt management, but budget trends and prospects should lead to further declines in debt ratios over the medium term. Leos noted that "from a fundamental perspective, an improved credit standing requires both of these." He said Moody's review will assess the prospects for a sustained reduction in government debt ratios and the likelihood that Brazil's debt burden will align more closely to those of countries rated in the upper end of the Ba category. "Assessing sustainable progress will require confidence in the political support for proposals that, if approved and implemented by Congress, could strengthen fiscal fundamentals over time," said Leos. "Of particular significance are measures that could contribute to reducing the growth in primary spending, which has driven the upward trend in government spending in previous years." In assessing prospects for sustaining improvements in the government domestic debt, Moody's will be evaluating the likelihood of further reductions in the share of floating-rate debt and increases in the debt stock's average maturity. "The recent surge observed in capital inflows, while supportive of boosting international reserves, represents a key challenge to the authorities," said Leos. "We will closely examine its potential consequences on domestic financial markets, particularly under scenarios of a potential reversal of those flows." Finally, he said, the review will also look at alternative external scenarios that incorporate less favorable global conditions that could test the resilience to adverse external shocks of the economy, the balance of payments, and the fiscal accounts. Brazil's A1 local-currency deposit ceiling and the A1 local-currency bond ceiling — the highest possible rating that could be assigned to obligors and obligations denominated in local currency within the country — are not under review. * BRAZIL: Currency Gains Due to Likely Moody's Upgrade ------------------------------------------------------ Adriana Brasileiro and Heloiza Canassa at Bloomberg News report that the Brazilian real gained as a result of a likely upgrade from Moody's Investors Service. Standard & Poor's and Fitch Ratings have recently upgraded the country's ratings. "The recent decisions by ratings agencies only reaffirm the positive perception investors have of Brazil at the moment," Standard Bank Group's Chief Economist Nuno Almeida said in an interview with Bloomberg. "The underlying trend of appreciation will continue because inflows are very strong." Bloomberg notes the real rose 0.9% to 1.9510 per dollar at 4:49 p.m. on Friday, New York time. Yesterday, the real fell nearly 1 percent on concern that rising yields in the U.S. may reduce demand for riskier, emerging-market assets. The yield on the government's benchmark zero-coupon bond due in January 2008 fell 4 basis points, or 0.04 percentage point, to 11.42%, according to Banco UBS Pactual SA. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. On May 16, Standard & Poor's Ratings Services raised its long-term foreign sovereign credit rating on the Federative Republic of Brazil one notch, to 'BB+' from 'BB', and its long-term local currency sovereign credit rating by two notches, to 'BBB' from 'BB+'. Standard & Poor's also raised its short-term local currency sovereign credit rating on Brazil o 'A-3' from 'B' and affirmed its 'B' short-term foreign currency rating. The outlook on the long-term ratings remains positive. The national scale credit rating on the republic was raised to 'brAAA' from 'brAA+', and the outlook on this rating is stable. Standard & Poor's also raised its transfer and convertibility assessment for Brazil to 'BBB' from 'BBB-'. =========================== C A Y M A N I S L A N D S =========================== C60 EUROPEAN: Proofs of Claim Filing Is Until June 5 ---------------------------------------------------- C60 European Long Short Master Fund Ltd.'s creditors are given until June 5, 2007, to prove their claims to David A.K. Walker and Lawrence Edwards, 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. C60 European's shareholder agreed on March 13, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Lawrence Edwards Attention: Miguel Brown P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8665 Fax: (345) 945 4237 C60 EUROPEAN LONG: Proofs of Claim Must be Filed by June 5 ---------------------------------------------------------- C60 European Long Short Fund Ltd.'s creditors are given until June 5, 2007, to prove their claims to David A.K. Walker and Lawrence Edwards, 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. C60 European's shareholder agreed on March 13, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Lawrence Edwards Attention: Miguel Brown P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8665 Fax: (345) 945 4237 CABLE & WIRELESS: Earns GBP174 Million in Year Ended March 31 ------------------------------------------------------------- Cable & Wireless plc released its financial results for the year ended March 31, 2007. Cable & Wireless reported GBP174 million in net profit against GBP3.3 billion in revenues for the year ended March 31, 2007, compared with GBP76 million in net profit against GBP3.2 billion in revenues for the same period in 2006. At March 31, 2007, the Group's balance sheet showed GBP4.5 billion in total assets, GBP2.6 billion in total liabilities and GBP1.9 billion in stockholders' equity. "It's been a good year," Cable and Wireless plc Chairman Richard Lapthorne said. "The success of the structural changes we made a year ago is there for all to see. International has performed well delivering growth in customers and revenue and, as a result, improved EBITDA. We have made a very encouraging start to the Europe, Asia & US turnaround and we now have sufficient visibility to believe that we'll deliver on our ambitious targets. All of which reinforces our confidence in our future prospects, which is reflected in the dividend. I'm delighted to announce that we're recommending a 34% increase in the final dividend to 4.15 pence, which with the interim of 1.7 pence gives a full year dividend of 5.85 pence, an increase of 30% over 2005/06." About Cable & Wireless Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and Technology sectors last week, the rating agency confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% * Issuer: Cable & Wireless International Finance B.V. Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- GBP200 million 8.625% Senior Unsecured Regular Bond/Debenture Due 2019 B1 LGD4 60% Cable & Wireless Plc's long-term and short-term foreign issuer credit carry Standard & Poor's BB- ratings. Its short-term foreign and local issuer credit were rated at B. The outlook is negative. NEMO INTERNATIONAL: Proofs of Claim Filing Deadline Is June 5 ------------------------------------------------------------- Nemo International's creditors are given until June 5, 2007, to prove their claims to Rogerio Ziviani and Bernardo Szpigel, 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. Nemo International's shareholder agreed on April 26, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Rogerio Ziviani Bernardo Szpigel Attention: Martina de Lima c/o Ogier, Queensgate House South Church Street P.O. Box 1234 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1986 PACTUAL CORPORATE: Proofs of Claim Filing Is Until June 5 --------------------------------------------------------- Pactual Corporate Debt High Yield Fund, Ltd.'s creditors are given until June 5, 2007, to prove their claims to Carolina Tepedino de Lima Costa and Iuri Rapoport, 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. Pactual Corporate's shareholder agreed on March 26, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Carolina Tepedino de Lima Costa Iuri Rapoport Attention: Giorgio Subiotto c/o Ogier P.O. Box 1234 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1986 UNIVEST CONVERTIBLE: Proofs of Claim Filing Ends on June 6 ---------------------------------------------------------- Univest Convertible Arbitrage Fund Ltd.'s creditors are given until June 6, 2007, to prove their claims to K.D. Blake, 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. Univest Convertible's shareholders agreed on May 8, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: K.D. Blake Attention: Gundega Tamane P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands Telephone: 345-914-4309 Fax: 345-949-7164 UNIVEST DIVERSIFIED: Proofs of Claim Filing Deadline Is June 6 -------------------------------------------------------------- Univest Diversified Fund II Ltd.'s creditors are given until June 6, 2007, to prove their claims to K.D. Blake, 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. Univest Diversified's shareholder agreed on May 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: K.D. Blake Attention: Gundega Tamane P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands Telephone: 345-914-4309 Fax: 345-949-7164 UNIVEST HIGH: Proofs of Claim Must be Filed by June 6 ----------------------------------------------------- Univest High Yield Fund Ltd. creditors are given until June 6, 2007, to prove their claims to K.D. Blake, 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. Univest High's shareholders agreed on May 8, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: K.D. Blake Attention: Gundega Tamane P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands Telephone: 345-914-4309 Fax: 345-949-7164 ========= C H I L E ========= GENERAL MOTORS: May Sell Allison Transmission to Boost Liquidity ---------------------------------------------------------------- General Motors Corporation said last week in a regulatory filing with the U.S. Securities and Exchange Commission that it is considering measures to strengthen liquidity and focus on its core business of designing, manufacturing, and selling cars and light trucks globally. Among other items, GM said it is currently discussing the potential sale of its Allison Transmission business with a number of potential buyers. GM management believes that a sale of Allison Transmission is probable, subject to union, regulatory, and other approvals. GM has provided unaudited pro forma financial information reflecting Allison Transmission's assets and liabilities as held for sale as of March 31, 2007, and reporting its operations as discontinued for the three months ended March 31, 2007 and 2006, and for the years ended December 31, 2006, 2005, and 2004. A full-text copy of the pro forma financial information is available for free at http://researcharchives.com/t/s?2038 General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * As reported in the Troubled Company Reporter on May 25, 2007, Fitch Ratings downgraded General Motors Corporation's ratings including the company's 'B/RR4' rated senior unsecured debt to 'B-/RR5'. GM's Issuer Default Rating remains at 'B' and is still on Fitch's Negative Rating Watch. GENERAL MOTORS: SEC Inquiry May Need Restatement of Past Results ---------------------------------------------------------------- General Motors Corporation said it received a document request from the U.S. Securities and Exchange Commission relating to the company's disclosure in its most recent Annual Report on Form 10-K regarding the restatement of its previously filed financial statements in connection with GM's accounting for certain foreign exchange contracts and commodities contracts in accordance with SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended (SFAS No. 133). According to GM, it continues to cooperate on this and all other SEC matters and is preparing to provide the requested information. Additionally, GMAC received a letter from the SEC's Division of Corporation Finance on its 2005 Annual Report on Form 10-K and subsequent filings pertaining to hedging relationship testing methodologies and consideration of credit ratings in assessing hedge effectiveness for purposes of SFAS No. 133. GM said GMAC advised the company that they continue to work with the SEC on these matters. GM notes that a negative outcome could require the company to restate prior financial results. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * As reported in the Troubled Company Reporter on May 25, 2007, Fitch Ratings downgraded General Motors Corporation's ratings including the company's 'B/RR4' rated senior unsecured debt to 'B-/RR5'. GM's Issuer Default Rating remains at 'B' and is still on Fitch's Negative Rating Watch. =============== C O L O M B I A =============== HEXION SPECIALTY: Signs Pact with ARKEMA to Buy German Business --------------------------------------------------------------- Hexion Specialty Chemicals has reached a definitive agreement to acquire the German resins and formaldehyde business of ARKEMA GmbH. Terms of the agreement were not disclosed. The transaction is subject to normal governmental reviews and is expected to close during the third quarter. Based in the Leuna industrial park, located in east central Germany, the ARKEMA German resins and formaldehyde business manufactures formaldehyde and formaldehyde-based resins including urea-formaldehyde, phenol-formaldehyde and melamine-based resin systems. These resins are used to manufacture engineered wood panels including oriented strandboard, particleboard and medium density fiberboard. The business also produces impregnation resins used to laminate decorative paper surfaces to wood products. The business employs 100 people and had 2006 revenues of approximately EUR101 million. “The ARKEMA German resins and formaldehyde business is a tremendous fit for Hexion as we expand our forest product resins business to serve our global customer base,” said Joseph Bevilaqua, president of the company’s Phenolic & Forest Product Resins Division. “This acquisition will give us a strong position in Germany, the largest wood panels market in Europe, and ready access to growing markets in Eastern Europe. It also complements both our existing European presence and our leading positions in the Americas and the Asia-Pacific region.” About Arkema A global chemical player, Arkema GmbH -- http://www.arkema.com/-- consists of 3 coherent and related business segments: Vinyl Products, Industrial Chemicals, and Performance Products. Present in over 40 countries with 17,000 employees, Arkema achieved sales of 5.7 billion euros in 2006. With its 6 research centers in France, the United States and Japan, and internationally recognized brands, Arkema holds leadership positions in its principal markets. About Hexion Specialty Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://hexionchem.com/-- makes thermosetting resins (or thermosets). Thermosets add a desired quality (heat resistance, gloss, adhesion) to a number of different paints and adhesives. Hexion also makes formaldehyde and other forest product resins, epoxy resins, and raw materials for coatings and inks. The company has 86 manufacturing and distribution facilities in 18 countries. In Latin America, the company has operations in Argentina, Brazil and Colombia. The company has its Asian headquarters in Singapore, with offices in Australia, China, Korea, Malaysia, New Zealand, Taiwan, and Thailand. The company has its European headquarters in Belgium, with offices in Czech Republic, Finland, France, Germany, Italy, Netherlands, Portugal, Spain, Sweden and UK. The company at March 31, 2007, recorded total assets of US$3.7 billion, total liabilities of US$5.1 billion, minority interest of US$10 million and a total stockholders' deficit of US$1.4 billion. ======= C U B A ======= * CUBA: Inks Cooperation & Technical Aid Agreement with India ------------------------------------------------------------- EFE News reports that Cuba has signed a cooperation and technical assistance accord with India for the development of renewable energy sources. The accord signed by Cuban Deputy Science Technology and Environment Minister Fernando Gonzalez and India's New and Renewable Energy Minister Vilas Muttemwar calls for the sharing of information on renewable energy sources as well as the sending of Cuban scientists to India for training, according to EFE News. Minister Muttemwar stated in a press conference, "We are going to help each other in promoting renewable energy in our respective countries." Minister Muttemwar talked about the studies being carried out in Cuba on wind energy development, as well as Cuba's potential for using solar energy and biomass from the sugar sector to generate power, EFE News states. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1 foreign-currency issuer rating reflects the debt moratorium that has been in place for more than 15 years, leading to the accumulation of principal and interest arrears. Moody's assigned these ratings on Cuba: -- CC LT Foreign Bank Deposit, Caa2 -- CC LT Foreign Currency Debt, Caa1 -- CC ST Foreign Bank Deposit, NP -- CC ST Foreign Currency Debt, NP -- Issuer Rating, Caa1 * CUBA: To Build Hydroelectric Plant in Rio Grande -------------------------------------------------- Cuba is building a hydroelectric plant at the Cuban town of Rio Grande, in the eastern province of Santiago, Prensa Latina reports. According to the same report, the Japanese Communit Projects Help Fund will finance the plant, which has a power of 7 kilowatts to benefit 52 homes, 20 more than scheduled because of the rationalization of the project and amplification of electric networks. In addition, the project includes other social areas like a school, video room and others, all of them in Rio Grande, municipality of Guama. The investment consists of a tank for water distribution with capacity of 27,000 liters, and a building for the hydroelectric plant. Prensa Latina states that the number of hydroelectric plants in the Cuban eastern mountain zone will increase to 18. Specialist Angel Luis Ricardo commented that the neighbors in that community would assume the construction with the supervision of experts. The project is more than 60% built and once completed, the zone will obtain quality water and electricity, Prensa Latina says. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1 foreign currency issuer rating reflects the debt moratorium that has been in place for more than 15 years, leading to the accummulation of principal and interest arrears. Moody's assigned these ratings on Cuba: -- CC LT Foreign Bank Deposit, Caa2 -- CC LT Foreign Currency Debt, Caa1 -- CC ST Foreign Bank Deposit, NP -- CC ST Foreign Currency Debt, NP -- Issuer Rating, Caa1 =================================== D O M I N I C A N R E P U B L I C =================================== GERDAU SA: Buying 30% Stake in Industrias Nacionales for US$42MM ---------------------------------------------------------------- Gerdau SA will acquire a 30% stake in Industrias Nacionales CA -- a firm in the Dominican Republic -- from Multisteel Business Holdings for US$42 million, Dominican Today reports. Gerdau said in a statement that Multisteel Business controls Industrias Nacionales, which makes and sells some 400,000 tons yearly of reinforcing rod, wire, tubes, beams and other steel products. Gerdau Chief Executive Officer Andre Gerdau Johannpeter said in a statement, "This operation secures the entry of the Gerdau Group in a new consumer market for steel that is in clear expansion. It is part of our strategy for expansion in the Americas." Gerdau Chairperson Jorge Gerdau Johannpeter told Dominican Today that the firm is expanding in Brazil, the US, Canada, Mexico, Colombia, Peru and Spain to increase profit by boosting its share of markets where it already operates. Gerdau will help Industrias Nacionales raise investment and will provide management, technical and marketing advice. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. * * * As reported in the Troubled Company Reporter on Jan. 19, 2007, Standard & Poor's Ratings Services placed its ratings, including its 'BB' corporate credit rating, on Tampa, Fla.-based Gerdau Ameristeel Corp. on CreditWatch with positive implications. ===================== E L S A L V A D O R ===================== PERRY ELLIS: George Pita To Resign as Chief Financial Officer ------------------------------------------------------------- Perry Ellis International, Inc.'s Chief Financial Officer George Pita, has signed its resignation effective June 18, 2007, to pursue other interests. Following Mr. Pita’s departure, Mr. Thomas D’Ambrosio will assume the role of interim CFO until a permanent successor is selected. Mr. D’Ambrosio has been the Senior Vice President and Corporate Controller of Perry Ellis since June 2005. Previously, he served as Vice President of Finance at Office Depot and Divisional Controller of Blockbuster. “We are pleased that Tom has agreed to accept this assignment. His successful tenure at Perry Ellis assures continuity throughout the transition,” remarked Perry Ellis International Chairman and CEO George Feldenkreis. “We want to thank George for his service to Perry Ellis International. He helped guide the company through a period of extraordinary growth, including our successful acquisition and integration of Tropical Sportswear International. We wish George the best in his new endeavor,” said Mr. Feldenkreis. Perry Ellis International Inc., based in Miami, Florida, designs, sources, markets and licenses a portfolio of brands including Perry Ellis, Jantzen, John Henry, Cubavera, Munsingwear, Original Penguin and Farah. The company also operates 38 retail locations including 3 Original Penguin locations. The company has sourcing offices in Indonesia, India, Korea, Thailand, Peru, Nicaragua, and El Salvador. * * * In October 2006, Moody's Investors Service's confirmed its B1 Corporate Family Rating for Perry Ellis International, Inc., and its B3 rating on the company's US$150 million senior subordinated notes. Additionally, Moody's assigned an LGD5 rating to those bonds, suggesting noteholders will experience a 78% loss in the event of a default. ================= G U A T E M A L A ================= BRITISH AIRWAYS: Cancels Italy Flights Due to Alitalia Strike ------------------------------------------------------------- British Airways plc and other European airlines scrapped its flights to and from Italy on Tuesday, May 22, 2007, due to a strike by air-traffic controllers and flight attendants of Alitalia S.p.A., published reports say. The strike took place between 10:00 a.m. and 6:00 p.m. local time, Bloomberg News relates. According to BBC News, British Airways has cancelled 16 of its flights to Italy, 10 from Gatwick and six from Heathrow. Bloomberg says British Airways rebooked passengers onto later flights. As previously reported in the TCR-Europe, the flight attendants launched the strike to keep the pressure on Alitalia over contract negotiations. The flight attendants have been demanding that Alitalia follow the rules regulating the number of crew members and hours of rest between flights. Thousands of passengers were stranded because of the strike. Alitalia executives met with Civil Aviation Authority officials to discuss the strikes. The authority, however, ruled that the strikes didn't violate flight-safety rules. Alitalia, 39.9% of which is being sold by the Italian government, had been loss-making for the past years and had attributed its near-demise to strikes, competition from low-cost carriers and high fuel costs. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba1 Corporate Family Rating for British Airways Plc. Moody's also assigned a Ba1 Probability-of-Default Rating to the company. * Issuer: British Airways, Plc Projected Old New LGD Loss-iven Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% As reported in the TCR-Europe on March 27, 2007, Standard & Poor's Ratings Services said that its 'BB+' long-term corporate credit rating on British Airways PLC remains on CreditWatch, with positive implications, following a vote on March 22 by EU ministers approving a proposed "open skies" aviation treaty with the U.S. BRITISH AIRWAYS: Investing GBP25 Mln on New 550 Airport Vehicles ---------------------------------------------------------------- British Airways plc is to invest more than GBP25 million on a new fleet of 550 airport vehicles as part of its move to Terminal 5 in March 2008. The new vehicles will replace older models and will help the airline to reduce its ground emissions at Heathrow and improve its punctuality performance. The fleet contains around 15 different vehicle types including baggage tractors, loading equipment, passenger buses and cargo tugs. Customers will particularly benefit from the 38 strong new fleet of Citaro passenger buses made by DaimlerChrysler. The 12m long Citaro meets the very highest Euro 5 standard in environmental performance and is currently the "greenest" bus used by any airline at Heathrow. The Euro 5 standards represent a further 43 percent reduction in nitrogen oxide emissions over Euro 4 standards. The first bus, which are planned to carry 45 passengers, was delivered this week and will go into service in early June once drivers have undergone a full training program. The remaining 37 buses will be delivered in the coming weeks. Geoff Want, director of ground operations for British Airways, said: "Terminal 5 is a once in a life opportunity for the airline and the new ground equipment fleet will be critical to the overall success of the move. "The new fleet will enable us to better manage our operations and have the right equipment to meet the different layout around the new terminal buildings. "When we ordered each of the vehicle types one of the key considerations was their environmental performance. "We are looking forward to retiring many of our oldest vehicles in the next few months which has a triple benefit of reducing emissions, improving customer experience and also giving staff better working conditions." As part of the bus replacement program and the operational changes within Terminal 5 the number of buses used by British Airways at Heathrow will also reduce by more than 50 percent by 2010. The overall number of ground equipment vehicles required will also reduce by just under 40 percent from 1300 in 2007 to just under 800 in 2010. More than 300 of the new vehicles will be fitted with telematics, which utilizes satellite navigation technology. This will enable the vehicle condition to be remotely monitored and will help to ensure an improved maintenance regime. It will also help in understanding the location of vehicles around the airport. British Airways was a founding member of the BAA's Heathrow Clean Vehicles Programme and currently has the very top-level "Diamond" rating for its performance. Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba1 Corporate Family Rating for British Airways Plc. Moody's also assigned a Ba1 Probability-of-Default Rating to the company. * Issuer: British Airways, Plc Projected Old New LGD Loss-iven Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% As reported in the TCR-Europe on March 27, 2007, Standard & Poor's Ratings Services said that its 'BB+' long-term corporate credit rating on British Airways PLC remains on CreditWatch, with positive implications, following a vote on March 22 by EU ministers approving a proposed "open skies" aviation treaty with the U.S. =========== G U Y A N A =========== DIGICEL LTD: Will Implement New Weekend Phone Call Rates -------------------------------------------------------- Digicel Ltd. said in a press release that it welcomes the Guyana Public Utilities Commission's approval of new weekend rates, allowing the firm to extend its current 50% discount weekend calls promotion to include international calls. Stabroek News relates that Digicel said last week it would match the Guyana Telephone and Telegraph Company's 50% discount on all international mobile phone calls on weekends. Digicel has already implemented a 50% discount on domestic calls, the report says. Digicel Chief Executive Officer Tim Bahrani commented to Stabroek News, "Digicel's entry into the Guyana mobile market has driven a phenomenal change in the mobile service on offer to the people of Guyana. We are delighted to be playing a part in forcing these changes in the mobile market and will continue to offer our customers the most innovative products and promotions that they deserve." Stabroek News notes that Digicel has also launched: -- free voicemail, -- per-second billing, -- rollover minutes, and -- Blackberry. Digicel Ltd. is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started 0operations in Jamaica in April 2001 and now offers GSM mobile services in Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Bermuda, Cayman, and Curacao among others. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings took these rating actions for Digicel Group Ltd., Digicel Ltd. and Digicel International Finance Ltd.: Digicel Group Ltd. -- Proposed US$1.4 billion senior subordinated notes due 2015 assigned 'CCC+/RR5' Digicel Ltd. -- Foreign currency Issuer Default Rating downgraded to 'B-' from 'B'; and -- US$450 million senior notes due 2012 downgraded to 'B-/RR4' from'B/RR4'. Digicel International Finance Ltd. --US$850 million senior secured credit facility assigned 'B/RR3'. Fitch said the outlook on all ratings was stable. ============= J A M A I C A ============= AIR JAMAICA: Edmund Bartlett Criticizes London Route Sale --------------------------------------------------------- Edmund Bartlett, the opposition tourism spokesperson, has criticized Air Jamaica's decision to sell its Jamaica-London route to Virgin Atlantic, saying that it will lead to loss of 2,000 passengers weekly, Horace Hines at the Jamaica Observer reports. Mr. Bartlett spoke last week at the Rotary Club of Montego Bay East monthly meeting. He said that the move meant that Jamaica's regional rivals in the tourism sector are now enjoying more flights than Jamaica from the United Kingdom destination, The Observer's Mr. Hines relates. Mr. Bartlett commented to The Observer's Mr. Hines, "The stark reality of this ill-thought decision is that regular daily service to Jamaica from the United Kingdom's most strategic airport, London Heathrow, is to disappear. The daily service offered by Air Jamaica to both Montego Bay and Kingston will be replaced by a mere two flights a week to Kingston, operated by Virgin Atlantic and from a far less popular departure point, London Gatwick. It represents a loss of 1,953 seats a week to the tourist hub. This is nothing to be proud about when one considers that Barbados welcomes 10 British Airways flights a week, seven Virgin Atlantic flights and three from British Midland. Even Antigua and St Lucia can now boast of better-scheduled flight options than Jamaica, allowing the consumer choice and flexibility. Jamaica is the loser as a result of this decision." The Jamaican government had sold a "key air transportation route" at a time when Jamaica was trying to enter the European market the government, The Observer's Mr. Hines says, citing Mr. Bartlett. The airline would never be able to reclaim the route in the future. Mr. Bartlett explained to The Observer's Mr. Hines, "By selling these slots the government of Jamaica has relinquished the historical right that Jamaica owned for its national carrier to fly from the airport. They cannot be obtained again and should in some eventuality Air Jamaica decides to return to trans-Atlantic service they will be obliged to do so from Gatwick or Stanstead." The Observer relates that Jamaica Labor Party transportation spokesperson Mike Henry said he was worried about the route sale. According to him, the opposition was again calling for an urgent meeting of the committee to discuss the matter and provide clarity on the issue. He said there were economic and logistical factors needed to be seriously considered before the sale of the route could be justified. Mr. Henry told The Observer that the sale of Air Jamaica's London route could mean a significant drop in the prospective value of the airline once it considers privatization. He added that any decrease in the number of flights between London and Jamaica would "unsettle" the Jamaican tourism sector, which has for some time been concentrated on "tapping more into the European market" through the London gateway. "London has been a premium route for Air Jamaica and its loss would have a significant bearing on the worth of the airline if or whenever privatisation considerations come into play. How this Virgin deal will impact on the longer-term scenario is something the JLP is deeply concerned about, for example, whether or not the deal is really a quick-fix, with its real implications to come down the road," Mr. Henry commented to The Observer. Air Jamaica's management, Finance Minister Dr. Omar Davies, and Transport Minister Robert Pickersgill had not disclosed any details on the deal, The Observer states, citing Mr. Henry. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * On July 21, 2006, Standard & Poor's Rating Services assigned B long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, is based on the government's unconditional guarantee of both principal and interest payments. NATIONAL WATER: Investing Under US$390MM on Computerized System --------------------------------------------------------------- The Jamaica Gleaner reports that the National Water Commission is investing less than US$390 million in a new computerized system to improve efficiency in tracking clients as well as water usage patterns and billings. The project will require a US$387.29-million investment, although the figure may change depending on the final bids to contstruct the system, the Gleaner says, citing the Jamaica Public Bodies 2007-08 report produced by the Ministry of Finance. According to The Gleaner, the new client information system will replace an accounting system that has been used since 1992. National Water spokesperson Charles Buchanan told The Gleaner, "At the time, we were the first to implement such a system. But the technology has grown leaps and bounds since then, and despite patches, the existing system can't meet expanded needs." The report says that the National Water has about 450,000 clients on its accounts. However, as the monopoly builder of water systems and supplier of the commodity, it expects customers to increase up to 20,000 yearly. The Gleaner notes that for the first time this year, the National Water's billing revenues would surpass US$10 billion, although the figure indicates a slowing of income. The company expects that its income will increase by 5.5%, or US$529 million, to US$10.12 billion this year, compared to US$9.6 billion in 2006. Revenue will grow over 12%. Overall income -- inclusive of fees, interest income and other revenues -- is expected at US$10.9 billion. Client increase mainly depends on the number of new and expanded water systems commissioned in a year, The Gleaner says, citing Mr. Buchanan. The Gleaner relates that the increase in client is also dependent on how successful the National Water's Revenue Protection Division is at spotting and correcting fraudulent connections. Mr. Buchanan told The Gleaner, "The growth rate is also affected by our success at prosecuting and regularizing illegal connections." According to the report, the National Water is spending over US$2.3 billion this year on developments in Kingston and the north coast -- systems that are already under construction. This indicates that client base will increase. Mr. Buchanan commented to The Gleaner that the old billing system can handle the current 450,000 client accounts with "increasing difficulty." It takes time to take customer information from the system. Meanwhile, the new system would be faster, more user-friendly, and has less possibility of errors. He said, "It will facilitate a look at the history of the client, the processing of disconnections, and have ability of system to interrogate accounts -- taking the history, usage pattern into account -- with greater ease. The current system does the same, but with a significant time element." The Gleaner reports that the National Water already developed the terms of reference for the client information service, guided by its management information system and other specialists. The firm will then focus on the contracting process. The National Water will also acquire new meters and new vehicles for its maintenance crews, The Gleaner 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. NATIONAL WATER: Must Settle Impasse with Major Supplier ------------------------------------------------------- The National Water Commission's impasse with one of its major suppliers could result to the loss of water in Clarendon, Radio Jamaica reports. Radio Jamaica relates that Maxwell Leiba, who owns property where the National Water pumps water, is threatening to hack connections with the firm if no effort would be taken to address his concerns. According to Radio Jamaica, Mr. Leiba had sent a letter to the National Water seeking reimbursement for overhead costs he incurred due to the water being pumped from the property. For years he has complained about the electricity he incurs every time the company pumps water from a well on his property. He is angry that he hasn't received a response from the firm, threatening to block access to his well. Mike Henry, a member of Parliament for Central Clarendon, "is insisting that the matter needs urgent attention," 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. =========== M E X I C O =========== AMSCAN HOLDINGS: Credit Increase Cues S&P to Affirm Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its loan and recovery ratings on Amscan Holdings Inc.'s US$575 million proposed senior secured credit facilities, following the announcement that the company will increase the asset-based revolving credit facility by US$50 million and decrease the term loan by US$50 million. The facility now comprises a US$200 million ABL revolver, which is rated 'BB-', with a recovery rating of '1', indicating an expectation of full (100%) recovery of principal in the event of payment default; and a US$375 million first-lien term loan B, which is rated 'B', with a '3' recovery rating, indicating expectations of meaningful (50%-80%) recovery of principal in the event of a payment default. Despite a higher level of priority debt in the capital structure as a result of the increase in the ABL, term loan lenders should continue to expect meaningful recovery. Additionally, there will be a 101 soft call protection on the first lien term loan B for the first year after close, meaning that the company would be obligated to repay 101% of the outstanding principal balance if it prepays the loan within the first year. Ratings List Amscan Holdings Inc. Corporate Credit Rating B/Negative/-- Senior Secured US$200 Million ABL Revolving Credit Facility BB- (Recovery Rating: 1) US$375 Million First-Lien Term Loan B B (Recovery Rating: 3) Headquartered in Elmsford, New York, Amscan Holdings Inc. makes more than 400 specially designed ensembles of party accessories and novelties, including balloons, invitations, pi¤atas, stationery, and tableware. Amscan sells to more than 40,000 retail outlets worldwide, mainly party goods superstores, mass merchandisers, and other distributors. Party City accounted for about 13% of sales before the firm bought it in 2005. Amscan itself makes party items (which bring in about 60% of sales) and buys the rest from other manufacturers, primarily in Asia. It has production and distribution facilities in Asia, Australia, Europe, and North America. Berkshire Partners and Weston Presidio are Amscan's principal owners. The company has a wholly owned metallic balloon distribution operations located in Mexico. BAUSCH & LOMB: Advanced Medical May Vie with Warburg Pincus' Bid ---------------------------------------------------------------- Advanced Medical Optics Inc. expressed interest in exploring an offer for Bausch & Lomb Inc. following the eye-care company's announcement of an agreement to be acquired by private-equity firm Warburg Pincus subject to higher and better offers, Jon Kamp and Keith J. Winstein of The Wall Street Journal report. Advanced Medical has been looking at Bausch's US$710 million lens business and US$658 million eye-drug line to add to its portfolio of eye-care products, WSJ relates, citing a person familiar with the matter. According to WSJ's source, Advanced Medical believes a deal between the two companies would offer significant cost synergies, something a private-equity firm cannot offer. Warburg Pincus Deal About two weeks ago, Bausch & Lomb agreed to be merged with affiliates of Warburg Pincus in a transaction valued at approximately US$4.5 billion, including approximately $830 million of debt. Under the terms of the agreement, affiliates of Warburg Pincus will acquire all of the outstanding shares of Bausch & Lomb common stock for US$65 per share in cash. This represents a premium of approximately 26% over the volume weighted average price of Bausch & Lomb's shares for 30 days prior to press reports of rumors regarding a potential acquisition of the company. Bausch & Lomb's Board of Directors, following the recommendation of a Special Committee composed entirely of independent directors, has unanimously approved the agreement and recommends that Bausch & Lomb shareholders approve the merger. Morgan Stanley & Co. Incorporated is acting as financial advisor to the Special Committee of the Bausch & Lomb Board of Directors and has delivered a fairness opinion. Wachtell Lipton Rosen & Katz is acting as legal counsel to the Special Committee in the transaction. Banc of America, Citi, Credit Suisse and JPMorgan served as the financial advisors to Warburg Pincus, and Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor to Warburg Pincus. Rating Agencies Take Action The Warburg Pincus Deal prompted Standard & Poor's Ratings Services to lower its ratings on Bausch & Lomb and placed them on CreditWatch with negative implications. Among others, S&P lowered the company's corporate credit rating to 'BB+' from 'BBB'. According to S&P, even if the transaction is not consummated, management's willingness to aggressively increase leverage to this extent is not commensurate with an investment-grade rating. Additionally, Moody's Investors Service said it will continue its review of Bausch & Lomb's ratings for possible downgrade, including the company's Ba1 Corporate Family rating. Sidney Matti, an analyst at Moody's, stated that, "The review for possible downgrade will focus primarily on the company's post-acquisition capital structure and the likelihood that BOL's post-acquisition credit metrics would fall below the 'Ba' rating category." Furthermore, Fitch maintained its Negative Rating Watch on Bausch & Lomb emphasizing that the transaction would significantly increase leverage and likely result in a multiple-notch downgrade. Fitch also warns that the transaction would result in an Issuer Default Rating of no higher than 'BB-'. About Bausch & Lomb Bausch & Lomb (NYSE:BOL) -- http://www.bausch.com/-- is the eye health company, dedicated to perfecting vision and enhancing life for consumers around the world. Its core businesses include soft and rigid gas permeable contact lenses and lens care products, and ophthalmic surgical and pharmaceutical products. The Bausch & Lomb name is one of the best known and most respected healthcare brands in the world. Founded in 1853, the company is headquartered in Rochester, New York, and employs approximately 13,000 people worldwide. Its products are available in more than 100 countries. The company manages its business through five business segments, which include three regional commercial segments: the Americas; Europe, Middle East and Africa (Europe), and Asia, and two centralized functions: Global Operations and Engineering, and Research and Development. The company's international operations include Brazil, Mexico, Australia, China, France, and Germany, among others. EMPRESAS ICA: Inks Contract to Build Water Supply in Queretaro -------------------------------------------------------------- Empresas ICA, S.A. de C.V. has signed a concession contract by an ICA-led consortium and the State Water Commission of Queretaro for the construction, operation, and maintenance of the Aqueduct II water supply and purification system in Queretaro state. The Aqueduct II will bring water 108km from the Infiernillo springs on the Moctezuma River in the Sierra Madre to the city of Queretaro. The project includes the construction of a diversion dam, two pumping plants to bring the water up 1,150m over a distance 24km to the continental divide, a 4,840m tunnel through the mountains, an 84km downhill section, a purification plant, and a storage tank. The Aqueduct II system will supply 50 million m3 of potable water per year—equivalent to 75% of the metropolitan Queretaro’s current supply—and the aqueduct and purification plant will each have a capacity of 1.5m 3/s. The project is designed to enable the stabilization of the aquifer in the Valley of Queretaro, which has been depleted by rapid population growth, and to promote the development of other regions of the state including Cadereyta and Ezequiel Montes. The project is expected to satisfy the water needs in the state capital and semi-desert regions of the state for the next 30 years. It has been designed to minimize any environmental impact and meet the highest safety standards. The project scope includes the development of the executive project, construction, installation and testing of electromechanical equipment, operation, maintenance, and conservation of the Aqueduct II over the 20-year term of the concession. The required investment of MXN2,854 million, including costs of financing and construction, will be financed with resources provided by Banobras’ Infrastructure Investment Fund (FINFRA), equity capital from the consortium, and commercial bank debt. The project will be constructed over a term of 26 months. Empresas ICA -- http://www.ica.com.mx/-- the largest engineering, construction, and procurement company in Mexico, was founded in 1947. ICA has completed construction and engineering projects in 21 countries. ICA's principal business units include civil construction and industrial construction. Through its subsidiaries, ICA also develops housing, manages airports, and operates tunnels, highways, and municipal services under government concession contracts and/or partial sale of long-term contract rights. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 23, 2006, Standard & Poor's Ratings Services revised its long-term corporate credit rating on Empresas ICA S.A. de C.V. to 'BB-' from 'B'. The ratings were removed from CreditWatch Positive, where they were placed on April 7, 2006. S&P said the outlook is stable. EPICOR SOFTWARE: Earns US$4.4 Mil. in First Qtr. Ended March 31 --------------------------------------------------------------- Epicor Software Corporation recorded a net income of US$4.4 million for the three months ended March 31, 2007, as compared with a net income of US$4.6 million for the three months ended March 31, 2006. Total revenues for the first quarter of fiscal year 2007 increased 20% to 101.3 million, as compared with US$84.5 million in the first quarter of fiscal year 2006. Net license revenue was US$22 million in the first quarter of fiscal year 2007, compared to US$19.3 million in the first quarter of fiscal year 2006. Consulting revenue was US$32.7 million in the first quarter of fiscal year 2007, as compared with US$25 million in the first quarter 2006. Maintenance revenue during the first quarter of fiscal year 2007 was US$39.1 million, as compared with US$36.2 million in the first quarter 2006 partly driven by a 94% customer retention rate. Hardware and other revenue for the first quarter of fiscal year 2007 was US$7.5 million, up from US$4 million in the prior year's first quarter. As of March 31, 2007, the company's balance sheet listed total assets of US$44.8 million, total liabilities of US$226.6 million, and total stockholders' equity of US$214.2 million. Liquidity and Capital Resources As of March 31, 2007, the company's principal sources of liquidity included cash and cash equivalents of US$75.5 million and unused borrowing capacity of US$99.8 million under its senior revolving credit facility. The company's operations provided US$6 million in cash during the three months ended March 31, 2007. As of March 31, 2007, the company had US$1.6 million in cash obligations for severance costs, lease terminations and other costs related to the company's restructurings. These obligations are expected to be paid through August 2009 and the company believes these obligations will be funded from existing cash reserves and cash generated from continuing operations. The company's working capital excluding deferred revenue is US$130.2 million. The company believes this is a relevant measurement of working capital as deferred revenue is an obligation for services not cash. The cost of providing these services is generally fixed in nature and ranges from 21% to 24% of the related revenues. On May 8, 2007, the company closed the offering of US$230 million aggregate principal amount of 2.375% convertible senior notes due 2027. The company estimates that the net proceeds from this offering, including the exercise in full of the underwriters' over allotment option, will be about US$222.3 million after deducting the underwriters' discounts and commissions and estimated offering expenses. On May 8, 2007, the company used about US$94 million of the proceeds to repay in full its term loan outstanding under its credit facility. The balance of the net proceeds will be used for working capital, capital expenditures and other general corporate purposes. A full-text copy of the company's first quarter 2007 report is available for free at http://ResearchArchives.com/t/s?200c About Epicor Software Corporation Headquartered in Irvine, California, Epicor Software Corporation --- http://www.epicor.com/www/-- is a provider of enterprise resource planning, customer relationship management, and supply chain management software and solutions to mid-market companies worldwide. Epicor Software has worldwide locations in China, Australia, Canada, Germany, Hong Kong, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, Singapore, Taiwan, and the United Kingdom, among others. The Troubled Company Reporter Asia Pacific reported that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for Epicor Software Corporation. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$100 Million Senior Secured Revolving Credit Facility due 2009 B1 Ba3 LGD2 27% US$100 Million Senior Secured First Lien due 2012 B1 Ba3 LGD2 27% PORTRAIT CORP: Waiting Period on CPI Corp.'s Acquisition Expires ---------------------------------------------------------------- The waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 relating to CPI Corp.'s acquisition of substantially all of the operating assets of Portrait Corporation of America, Inc., has expired. Portrait Corp. had filed a motion with the U.S. Bankruptcy Court for the Southern District of New York seeking approval of the sale transaction with CPI. The hearing on that motion is scheduled for June 4, 2007. On May 21, 2007, the Official Committee of Unsecured Creditors appointed in PCA's Chapter 11 case filed a statement with the Court expressing its support for the sale transaction to CPI. The transaction is expected to close by the end of June 2007. About CPI Corp. CPI Corp. (NYSE: CPY) -- http://www.searsphotos.com/-- is a portrait photography company offering photography services in the United States, Puerto Rico and Canada through Sears Portrait Studios. About Portrait Corp. Portrait Corporation of America Inc. -- http://pcaintl.com/-- provides professional portrait photography products and services in North America. The Company operates portrait studios within Wal-Mart stores and Supercenters in the United States, Canada, Mexico, Germany, and the United Kingdom. The company also operates a modular traveling business providing portrait photography services in additional retail locations and to church congregations and other institutions. Portrait Corporation and its debtor-affiliates filed for Chapter 11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case No. 06-22541). John H. Bae, Esq., at Cadwalader Wickersham & Taft LLP, represents the Debtors in their restructuring efforts. Berenson & Company LLC serves as the Debtors' Financial Advisor and Investment Banker. Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP represents the Official Committee of Unsecured Creditors. Peter J. Solomon Company serves as financial advisor for the Committee. At June 30, 2006, the Debtor had total assets of US$153,205,000 and liabilities of US$372,124,000. RIO VISTA: Incurs US$470,000 Net Loss in Quarter Ended March 31 --------------------------------------------------------------- Rio Vista Energy Partners L.P. disclosed its financial results for the quarter ended March 31, 2007. The company incurred a net loss from continuing operations of US$470,000 and a net loss from continuing operations allocable to its common units of US$461,000 or US$0.24 per common unit. Results of Operations The following discussion of Rio Vista’s results of operations from continuing operations for all periods presented excludes the results of operations related to the assets sold to TransMontaigne Product Services Inc. in August 2006, including revenues, direct costs and associated interest expenses, which have been reclassified as discontinued operations. As a result, the results of operations from continuing operations reflects only the results associated with the LPG Transportation Business, including all costs associated with operation of the US-Mexico Pipelines and Matamoros Terminal Facility and all indirect income and expenses of Rio Vista. Revenues from Rio Vista’s LPG Transportation Business commenced on August 22, 2006 although expenses associated with operation of the US-Mexico Pipelines and Matamoros Terminal Facility were incurred during the entire period for each period presented. Continuing Operations Revenues for the three months ended March 31, 2007, were US0$.7 million. There were no revenues during the three months ended March 31, 2006 since the LPG Transportation business did not commence until Aug. 22, 2006. All revenues prior to Aug. 22, 2006, were derived from Rio Vista’s LPG sales business and have been reclassified as discontinued operations. Cost of goods sold for the three months ended March 31, 2007, was US$0.4 million compared with US$0.5 million for the three months ended March 31, 2006. The cost of goods sold consists of those costs associated with operation of the US–Mexico Pipelines and Matamoros Terminal Facility. All costs associated with Rio Vista’s LPG sales business prior to the LPG Asset Sale, except for costs associated with the US–Mexico Pipelines and Matamoros Terminal Facility, which are also being used for Rio Vista’s LPG Transportation business, have been reclassified as discontinued operations. Selling, general and administrative expenses were US$.7 million for the three months ended March 31, 2007, compared with US$.7 million for the three months ended March 31, 2006. These costs were comprised of indirect selling, general and administrative expenses directly incurred by Rio Vista or allocated by Penn Octane to Rio Vista in accordance with the Omnibus Agreement. Salary related costs allocated by Penn Octane were based on the percentage of time spent by those employees (including executive officers) in performing Rio Vista related matters compared with the overall time spent working by those employees. Going Concern Doubt As reported on the Troubled Company Reporter on May 5, 2006, Burton Mccumber & Cortez, L.L.P., in Brownsville, Texas, raised substantial doubt about the ability of Rio Vista Energy Partners L.P. to continue as a going concern after auditing the Company's consolidated financial statements for the years ended Dec. 31, 2004, and 2005. About Rio Vista Headquartered in Houston, Texas, Rio Vista Energy Partners L.P. (NASDAQ: RVEP) buys, transports and sells liquefied petroleum gas. Rio Vista owns and operates terminal facilities in Brownsville, Texas and in Matamoros, Tamaulipas, Mexico and approximately 23 miles of pipelines, which connect the Brownsville Terminal Facility to the Matamoros Terminal Facility. The primary market for Rio Vista's LPG is the northeastern region of Mexico, which includes the states of Coahuila, Nuevo Leon and Tamaulipas. ================= N I C A R A G U A ================= * NICARAGUA: Taking Steps To Solve Energy Deficit ------------------------------------------------- Nicaraguan President Daniel Ortega has said that the nation will use fuel oil powered electricity generators and distribute fluorescent light bulbs to fight energy crisis, Prensa Latina reports. Venezuela and Cuba will bring in power generators with 60-megawatt capacity by year-end, Prensa Latina says, citing President Ortega. The new equipment will use fuel oil, which is a cheap fuel. President Ortega told Prensa Latina that Venezuela and Cuba had already installed 32 stations that have been operating since March using diesel. President Ortega said that Nicaragua's talks with Brazil, Canada, and Taiwan are in progress. Nicaragua is courting the countries to send stations that work with fuel oil, Prensa Latina states. * * * Moody's Investor Service assigned these ratings to Nicaragua: Rating Rating Date ------ ----------- Long Term Caa1 June 30, 2003 Senior Unsecured Debt B3 June 30, 2003 =========== P A N A M A =========== AES CORP: Acquires 51% Stake in IC ICTAS Energy Group ----------------------------------------------------- AES Corp. told Thomson Financial that it has purchased a 51% stake in Turkish hydroelectricity developer and producer IC ICTAS Energy Group. Thomson Financial relates that IC ICTAS has a 26-megawatt hydroelectric power capacity. It has another 390-megawatt hydroelectric power capacity under development. AES told Thomson Financial that its expansion into Turkey would bring in 3,000 megawatts of new capacity every year through at least 2015. It advances its strategy to concentrate its core business expansion on "select high growth markets." John McLaren -- AES' Executive Vice President and President for Europe, CIS and Africa region -- told Thomson Financial, "In addition to our venture in Turkey, our presence in this region also includes two projects in Bulgaria: a 670-megawatt power plant that recently began construction and an investment in a 120-megawatt wind development project." AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES Corp.'s Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. Fuels include biomass, diesel, coal, gas and hydro. The group also pursues business development activities in the region. AES has been in the region since May 1993, when it acquired the CTSN power plant in Argentina. * * * In Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. AES CORP: Awards US$7.1-Million Compensation to Paul Hanrahan ------------------------------------------------------------- AES Corp. said in a filing with the U.S. Securities and Exchange Commission that Paul Hanrahan, its chief executive, was awarded a US$7.1-million compensation package for 2006. The Associated Press relates that the compensation package include: -- US$897,667 base salary; -- US$4-million performance-based cash compensation; and -- other compensation, includes: * US$228,228 car and driver and contributions to retirement plans, and * almost US$2 million in restricted stock and option awards. AES released earlier this month its 2006 full-year report, which disclosed that its profit decreased to US$261 million compared to US$605 million in the previous year. The firm earned US$1.14 per share, excluding one-time charges. Its revenue increased by 12% to US$12.3 billion, the AP states. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES Corp.'s Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. Fuels include biomass, diesel, coal, gas and hydro. The group also pursues business development activities in the region. AES has been in the region since May 1993, when it acquired the CTSN power plant in Argentina. * * * In Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. AES CORP: Eyes 20% Boost in Earnings Through 2011 ------------------------------------------------- AES Corp. told the Associated Press that it expects per-share earnings to increase up to 20% yearly through 2011 due to the strength of the growing market for alternative energy. According to the AP, AES predicted that its 2011 earnings would total up to US$2.15 per share, representing yearly growth of up to 20% compared to its $1.04 per share projected profit this year. AES said in a statement that it expects its core power business to increase capacity by 16% to 46,500 megawatts by 2011, compared to this year due to its expansion efforts on markets with a growing demand for power. The AP notes that AES would triple its capacity for generating energy from wind in the next four years, from this year's 600 megawatts. AES also sees that its free cash flow will increase to US$3.3 billion in 2011, from a projected range of US$1.4 billion in 2007, the AP states. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES Corp.'s Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. Fuels include biomass, diesel, coal, gas and hydro. The group also pursues business development activities in the region. AES has been in the region since May 1993, when it acquired the CTSN power plant in Argentina. * * * In Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. ===================== P U E R T O R I C O ===================== ADVANCE AUTO: Elwyn Murray Assumes Exec. VP-Merchandising Role -------------------------------------------------------------- Advance Auto Parts, Inc. reported that Elwyn G. Murray, III, has assumed additional responsibilities and will now serve as the company's Executive Vice President, Merchandising, Supply Chain and Technology, effective immediately. “In this new role, Elwyn will have responsibility for merchandising, marketing and store operations support in addition to retaining his current responsibilities for logistics, information technology , risk management and corporate purchasing,” said Jack Brouillard, interim Chairman, President and CEO. “Elwyn played a key role in our strategic review and has the vision, commitment and capability to drive the implementation of our key growth initiatives. One of his key objectives will be to enhance our parts availability and coverage.” Mr. Murray joined Advance in April 2005 as Executive Vice President, Administration. Prior to joining the company, Mr. Murray served as Senior Vice President of Store Operations for Food Lion, based in Salisbury, North Carolina, with whom he was employed for 16 years. He received both his Bachelor of Science in Business and Accounting and MBA from Wake Forest University, Winston-Salem, North Carolina. In conjunction with this management change, Dave Mueller has resigned as Executive Vice President, Merchandising and Marketing. Mr. Mueller joined Advance in March 2003 and has held his current position since November 2004. “We would like to thank Dave for his many contributions and wish him the best in future endeavors,” stated Mr. Brouillard. About Advance Auto Headquartered in Roanoke, Va., Advance Auto Parts (NYSE: AAP) -- http://www.advanceautoparts.com/-- is the second-largest retailer of automotive aftermarket parts, accessories, batteries, and maintenance items in the United States, based on store count and sales. As of April 22, 2006, the Company operated 2,927 stores in 40 states, Puerto Rico, and the Virgin Islands. The Company serves both the do-it-yourself and professional installer markets. * * * As reported in the Troubled Company Reporter on April 3, 2007, Standard & Poor's Ratings Services revised its outlook on auto parts retailer Advance Auto Parts Inc. to stable from positive, reflecting soft same-store sales growth and a retrenchment in capital spending that may slow progress. All ratings on the company, including the 'BB+' corporate credit rating, were affirmed. As reported in the Troubled Company Reporter on Jan. 3, 2007, Moody's Investors Service downgraded the speculative grade liquidity rating of Advance Auto Parts, Inc. to SGL-2 from SGL-1, affirmed its Ba1 corporate family rating, and upgraded its probability of default rating to Ba1 from Ba2. Moody's says the outlook on its long-term ratings remains positive. ADVANCED MEDICAL: Mulls Competing Offer for Bausch & Lomb --------------------------------------------------------- Advanced Medical Optics Inc. expressed interest in exploring an offer for Bausch & Lomb Inc. following the eye-care company's announcement of an agreement to be acquired by private-equity firm Warburg Pincus subject to higher and better offers, Jon Kamp and Keith J. Winstein of The Wall Street Journal report. Advanced Medical has been looking at Bausch's US$710 million lens business and US$658 million eye-drug line to add to its portfolio of eye-care products, WSJ relates, citing a person familiar with the matter. According to WSJ's source, Advanced Medical believes a deal between the two companies would offer significant cost synergies, something a private-equity firm cannot offer. Warburg Pincus Deal About two weeks ago, Bausch & Lomb agreed to be merged with affiliates of Warburg Pincus in a transaction valued at approximately US$4.5 billion, including approximately US$830 million of debt. Under the terms of the agreement, affiliates of Warburg Pincus will acquire all of the outstanding shares of Bausch & Lomb common stock for US$65 per share in cash. This represents a premium of approximately 26% over the volume weighted average price of Bausch & Lomb's shares for 30 days prior to press reports of rumors regarding a potential acquisition of the company. Bausch & Lomb's Board of Directors, following the recommendation of a Special Committee composed entirely of independent directors, has unanimously approved the agreement and recommends that Bausch & Lomb shareholders approve the merger. Morgan Stanley & Co. Incorporated is acting as financial advisor to the Special Committee of the Bausch & Lomb Board of Directors and has delivered a fairness opinion. Wachtell Lipton Rosen & Katz is acting as legal counsel to the Special Committee in the transaction. Banc of America, Citi, Credit Suisse and JPMorgan served as the financial advisors to Warburg Pincus, and Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor to Warburg Pincus. Headquartered in Santa Ana, California, Advanced Medical Optics -- http://www.amo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. Sales for the twelve months ended June 24, 2005 were approximately US$921 million. The company has operations in Germany, Japan, Ireland, Puerto Rico and Brazil. ADVANCED MEDICAL: B&L Acquisition Cues S&P's Developing Watch ------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Advanced Medical Optics Inc. on CreditWatch with developing implications, given the company's announced interest to acquire Bausch & Lomb Inc. (B&L; BB+/Watch Neg/--). On May 16, Bausch & Lomb entered into a definitive merger agreement with Warbug Pincus in a takeover valued at US$4.5 billion (including about US$830 billion of assumed debt). Under the agreement, B&L has 50 calendar days to solicit superior proposals, and Advanced Medical Optics has indicated that the offer extended by Warburg Pincus undervalues B&L. "The CreditWatch action reflects the potential for Advanced Medical Optics to be upgraded or downgraded depending on several factors," explained Standard & Poor's credit analyst Cheryl Richer. "If the acquisition is financed with a conservative mixture of debt and equity, that and the prospect of a more diverse portfolio of eye care products could result in an upgrade. However, a material increase in debt leverage could result in a downgrade." In addition, S&P anticipate that Advanced Medical Optics may divest a portion of the portfolio; while the company has publicly expressed interest in the contact lens business, it has also stated publicly that it has no interest in eye care pharmaceuticals. If Advanced Medical Optics is ultimately successful, S&P will evaluate the structure and financing of the transaction to determine the ratings outcome. Headquartered in Santa Ana, California, Advanced Medical Optics -- http://www.amo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. Sales for the twelve months ended June 24, 2005 were approximately US$921 million. The company has operations in Germany, Japan, Ireland, Puerto Rico and Brazil. SANTANDER BANCORP: Board Declares US$0.16 Per Share Dividend ------------------------------------------------------------ Santander BanCorp's Board of Directors declared a cash dividend amounting to US$0.16 per common share. The dividend shall be payable on July 2, 2007, to shareholders of record as of June 8, 2007. Cash dividends on common shares are eligible for direct reinvestment under the company's Dividend Reinvestment and Cash Purchase Plan. For additional information on how to participate in Santander BanCorp's Dividend Reinvestment and Cash Purchase Plan, shareholders should contact our transfer agent and registrar, Mellon Investor Services LLC, at (800) 851-9677. Santander BanCorp (NYSE: SBP) (LATIBEX: XSBP) is a publicly held financial holding company that is traded on the New York Stock Exchange and on Latibex (Madrid Stock Exchange). About 91% of the outstanding common stock of Santander BanCorp is owned by Banco Santander Central Hispano, SA aka Santander. The company has four wholly owned subsidiaries -- Banco Santander Puerto Rico, Santander Securities Corp., Santander Financial Services and Santander Insurance Agency. * * * As reported in the Troubled Company Reporter on May 30, 2006, Fitch affirmed the Individual ratings of Santander Bancorp and Banco Santander Puerto Rico at 'C'. ================================= T R I N I D A D & T O B A G O ================================= DIGICEL LTD: Peter Permell Calls on Firm To Make Public Apology --------------------------------------------------------------- Peter Permell, the head of the Association for Radio Frequency Emission Control in Trinidad and Tobago, told Ruth Osman at the Trinidad and Tobago Express that Digicel Ltd. should issue a public apology to media houses and Jerningham Avenue residents due to threats made my men contracted to dismantle the firm's cell tower. Mr. Permell criticized in a press release the "unwarranted and unprovoked verbal and ... physical attack on the media personnel." According to The Express, TV6 camerawoman Kerry Patrick said that she and photographers from other media houses were taking shots of the dismantling process when the workers asked them to stop and they complied. However, one of the workers came out of the van and hurled a stone after The Guardian photographer, The Express' Ms. Osman relates, citing Ms. Patrick. "He missed and he came up to me with a stone in his hand," she said. However, Digicel Public Relations Manager Kevin Garcia told The Express' Ms. Osman that it is unfair to blame the firm. He said, "We are getting reports that there may have been words between people, but there were villagers there also... It's anybody's guess if it was the villagers or the sub-contractors." Digicel is carrying out a probe on the matter, The Express' Ms. Osman states. Digicel Ltd. is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started 0operations in Jamaica in April 2001 and now offers GSM mobile services in Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Bermuda, Cayman, and Curacao among others. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings took these rating actions for Digicel Group Ltd., Digicel Ltd. and Digicel International Finance Ltd.: Digicel Group Ltd. -- Proposed US$1.4 billion senior subordinated notes due 2015 assigned 'CCC+/RR5' Digicel Ltd. -- Foreign currency Issuer Default Rating downgraded to 'B-' from 'B'; and -- US$450 million senior notes due 2012 downgraded to 'B-/RR4' from'B/RR4'. Digicel International Finance Ltd. --US$850 million senior secured credit facility assigned 'B/RR3'. Fitch said the outlook on all ratings was stable. ============= U R U G U A Y ============= GENERAL MOTORS: In Talks w/ Investors About Delphi's Ch. 11 Exit ---------------------------------------------------------------- General Motors Corporation said it continues to negotiate with Delphi Corporation and certain potential investors in Delphi regarding arrangements that would permit Delphi to emerge from bankruptcy proceedings. GM anticipates that the arrangements contemplated by the framework support agreement among Delphi, GM, and potential investors, described in the Current Report on Form 8-K dated Dec. 18, 2006, and subsequent filings by GM, will be modified to reflect a number of items, including the withdrawal of Cerberus Capital Management as a plan investor. GM currently expects that under the modified agreement the consideration it would receive upon the termination of Delphi's bankruptcy proceedings would not materially differ from previous arrangements described by GM, although the composition may be altered. General Motors has received proposals from Delphi and from the United Auto Workers Union regarding support to be provided by GM as part of Delphi's restructuring, and believes that the proposals provide a basis for continuing productive negotiations. GM intends to update its estimate of contingent exposures related to Delphi as appropriate to reflect the outcome of all negotiations. Based on the current status of all the negotiations, GM believes it is appropriate to update the previously disclosed range of contingent exposures between US$6 billion and US$7.5 billion to approximately US$7 billion. GM currently expects to reimburse Delphi for certain labor expenses with an initial payment of up to approximately $500 million when it emerges from bankruptcy, and provide annual labor-related payments between US$300 million and US$400 million and annual transitional payments of approximately US$100 million. The total amount of the contingent liability and the specific amounts and periods that such subsidies would be paid, are still subject to negotiation. GM continues to expect that the cost of these reimbursements will be more than offset in the long term by its savings from reductions to the US$2 billion price penalty it now pays Delphi annually for systems, components, and parts. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * As reported in the Troubled Company Reporter on May 25, 2007, Fitch Ratings downgraded General Motors Corporation's ratings including the company's 'B/RR4' rated senior unsecured debt to 'B-/RR5'. GM's Issuer Default Rating remains at 'B' and is still on Fitch's Negative Rating Watch. GENERAL MOTORS: Gets US$4.1 Bil. Credit Facility Commitments ------------------------------------------------------------ General Motors Corporation disclosed in a regulatory filing with the Securities and Exchange Commission that as of May 22, 2007, the company had obtained non-binding lender commitments to provide a secured revolving credit facility in an aggregate principal amount of approximately US$4.1 billion. GM anticipates that the facility will be secured by GM's common equity interest in GMAC LLC and will mature 364 days after the date that the definitive agreements are executed. According to GM, the credit facility could be used for general corporate purposes, including working capital needs. The commitments are subject to a number of conditions, including negotiation of definitive agreements. Consequently, GM said there can be no assurance that it will ultimately enter into the contemplated credit facility, and if the transaction to establish the facility is successfully closed, GM's ability to borrow under the facility will be subject to customary conditions and limitations. Fitch Takes Action Fitch Ratings downgraded GM's senior unsecured debt rating to 'B-/RR5' from 'B/RR4' and placed GM's 'B' Issuer Default Rating under Negative Watch along with other outstanding ratings following the company's announcement that it will be raising US$4.1 billion in secured financing. According to Fitch, the US$4.1 billion 364-day facility, to be secured by GM's common equity holdings in GMAC, will be assigned a rating of 'BB/RR1'. Fitch states that the downgrade action reflects increase in debt levels and the resulting reduced recovery expectations for senior unsecured debt holders. GM Amends Proposed Underwriting Pacts On March 18, 2004, General Motors filed a post-effective amendment to its registration statement on Form S-3 (File #333-108532). Exhibit 1(a) to that registration statement contained a form of proposed Underwriting Agreement of GM relating to Debt Securities (including form of Delayed Delivery Contract) and Exhibit 1(b) contained a form of proposed Underwriting Agreement of GM relating to Convertible Debt Securities. GM said it has amended each of the forms. A revised form of the proposed Underwriting Agreement relating to debt securities is available for free at: http://researcharchives.com/t/s?2039 A revised form of the proposed Underwriting Agreement relating to convertible debt securities is available for free at: http://researcharchives.com/t/s?203b About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * As reported in the Troubled Company Reporter-Latin America on May 27, 2007, Moody's Investors Service assigned a Caa1 (LGD4, 58%) to the US$1.1 billion of convertible debt securities of General Motors Corporation, and a Ba3 (LGD1, 6%) rating to the company's proposed US$4.1 billion, 364 day credit facility that would be secured by its 49% ownership in GMAC LLC. Moody's also affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. Moody’s said the rating outlook remains negative. ================= V E N E Z U E L A ================= DAIMLERCHRYSLER AG: Court Authorizes Collins & Aikman Settlement ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan has approved Collins & Aikman Corp.'s settlement and option agreement with DaimlerChrysler AG and DaimlerChrysler Canada Inc. The agreement, sanctioned by the Honorable Judge Steven W. Rhodes, will help Collins & Aikman facilitate the sale of its assets, Bankruptcy Law360 reports. Collins & Aikman said the agreement, along with the customer agreement as a whole, would save thousands of jobs and provide a framework for the bankruptcy’s resolution. Collins & Aikman added that costly and time-consuming litigation would have resulted had a deal not been reached, Bankruptcy Law360 notes. As previously reported, in December 2006, Collins & Aikman and its debtor-affiliates successfully negotiated a comprehensive agreement that, among other things: (a) provides a framework to facilitate the orderly sale of a majority of the Debtors' businesses with the support of the agents to the Debtors' prepetition senior, secured lenders and postpetition secured lenders and the Debtors' principal customers; (b) provides a meaningful opportunity to save thousands of jobs; (c) memorializes an agreement among the Debtors, the Agents and the Customers on the substantive terms of the Plan; and (d) provides a clear framework toward a consensual resolution and conclusion to these cases. In connection with the customer agreement, the Debtors also negotiated certain customer-specific agreements with individual Customers that resolved disputed pre- and postpetition commercial matters. The Debtors had not finalized and filed each of the specific agreements with individual Customers prior to the hearing to consider Court-approval of the customer agreement. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, relates the Debtors and DaimlerChrysler continued to negotiate and, on May 11, 2007, reached the settlement and option agreement. As with the other Customer-Specific Agreements, the DaimlerChrysler Agreement has been filed under seal and shared only with the U.S. Trustee, the Official Committee of Unsecured Creditors and the Agents due to the sensitive and confidential commercial information contained therein. Generally, a settlement under Rule 9019(a) of the Federal Rules of Bankruptcy Procedure should be approved if it is determined to be fair and equitable and does not fall below the lowest level of reasonableness, Mr. Schrock notes, citing Bauer v. Commerce Union Bank, 859 F.2d 438, 441 (6th Cir. 1988); In re Haven, Inc. 2005 WL 927666, at *3 (6th Cir. B.A.P. 2005); and Dow Corning, 192 B.R. at 421. The DaimlerChrysler Agreement satisfies this standard, he asserts. Mr. Schrock explains that the DaimlerChrysler Agreement resolves a number of issues between the Debtors and DaimlerChrysler, each, if left unresolved, would undoubtedly result in costly and time-consuming litigation. For example, He says, if the parties did not agree to the DaimlerChrysler Agreement, the parties would likely become embroiled in disputes over breaches of the Debtors' obligations under numerous purchase orders and postpetition agreements. Similarly, he points out, the Debtors would expect that, but for the consideration provided under the DaimlerChrysler Agreement, the parties would be required to litigate numerous disputes over ownership rights of certain equipment currently held by the Debtors. The expenses incurred to resolve the numerous disputes would be an additional burden to the estates and their creditors, Mr. Schrock avers. The DaimlerChrysler Agreement avoids these disputes and the heavy encumbrance that the disputes would place on their estates. Here, the Debtors' decision to enter into the DaimlerChrysler Agreement is clearly an exercise of their sound business judgment as it is integral to and effectuates the customer agreement, Mr. Schrock asserts. He relates that, although the terms of the DaimlerChrysler Agreement must remain confidential due to its sensitive commercial terms, the customer agreement, together with the DaimlerChrysler Agreement, provide the Debtors with numerous benefits, including: (a) significant prepetition claim settlement amounts; (b) a recovery that will maximize the value of the Debtors' working capital; and (c) the continued support of DaimlerChrysler for the sale of the Debtors' businesses and the Plan. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed US$3,196,700,000 in total assets and US$2,856,600,000 in total debts. The Debtors' disclosure statement explaining their First Amended Joint Chapter 11 Plan was approved on Jan. 25, 2007. The hearing to consider confirmation of the Debtors' Amended Joint Plan is set for April 19, 2007. (Collins & Aikman Bankruptcy News, Issue No. 61; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DAIMLERCHRYSLER AG: Chery Denies Report About Deal's Delay ---------------------------------------------------------- Chery Automobile Co. Ltd. has denied a May 21, 2007, report published by German financial daily Handelsblatt that the Chinese automaker wanted to re-examine a limited partnership with DaimlerChrysler AG to build Chrysler-branded cars in light of the unit's sale to Cerberus Capital Management LP, Reuters relates, quoting a Chery spokesman. The Associated Press reports that Zhang Li, the general manager of Chery Automobile, told Handelsblatt that the company has halted the project and wants to renegotiate its agreement on building a new compact for Chrysler. The decision, the German paper reported, came after DaimlerChrysler agreed last week to sell its money-losing Chrysler Group to private equity firm Cerberus Capital in a US$7.41 billion deal, AP notes. Mr. Zhang said the deal came as a "total surprise" for his company and it had not yet talked with Cerberus about the move. "We continue to be in talks with Chrysler, but we don't have any contact with the new owners yet," Handelsblatt quoted Mr. Zhang as saying. Handelsblatt Misquotation A Chery spokesman told Reuters that the newspaper had misquoted his colleague and that the earlier deal with Chrysler Group was moving ahead. The spokesman declined to elaborate on the status of that deal, which still needs Chinese government approval, or confirm whether the Chinese carmaker wants to renegotiate the terms with Chrysler's new owner, Reuters relates. Chrysler-Chery Deal The TCR-Europe reported on March 1, 2007, that under the non-equity partnership, Chery-built vehicles would be distributed under Chrysler Group brands, primarily in North America and Western Europe. Chrysler Group indicated that the partnership would allow the company to become a bigger player on the global automotive stage by giving it access to products in new segments more quickly, with less capital spending. Small vehicles such as these will allow Chrysler Group brands to compete in segments in which the brands do not currently compete, and which are especially important in price- and fuel-economy sensitive markets. Global growth remained an important aspect of Chrysler's transformation and recovery plan, AP says, quoting Daimler spokeswoman Mary Gauthier. She added that the sale to Cerberus had not changed those goals. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. PETROLEOS DE VENEZUELA: Bonds Affected by RCTV Conflict ------------------------------------------------------- Petroleos de Venezuela SA's bonds are negatively affected by fears of new political tensions following President Hugo Chavez's decision not to renew Radio Caracas Television's broadcasting license. The license expired at midnight of May 27. The government declared on Dec. 28, 2006, that RCTV's license won't be renewed on grounds of its alleged role in the coup attempts against Pres. Chavez's administration. The yield on the Petroleos de Venezuela's 5.25% dollar-denominated security due April 2017 jumped 10 basis points, or 0.10 percentage point, to 8% at 4:19 p.m. New York time, according to a Bloomberg News composite price from 10 banks. The price, which moves inversely to the yield, fell 0.6 cent to 81.5 cents on the dollar -- the lowest since May 15. Analyst Matt Festa, at 4Cast Inc., said that the only reason why the bonds decline is due to the RCTV case, Bloomberg relates. The U.S. senate and the European parliament passed resolutions condemning the Venezuelan government's decision. The actions, however, were mocked by President Hugo Chavez, Bloomberg says. About RCTV Radio Caracas Television was a Venezuelan television network headquartered in Caracas. It is sometimes referred to as the Canal de Barcenas. Currently owned by Empresas 1BC, RCTV was founded on Nov. 15, 1953, by William H. Phelps. Its radio counterpart is Radio Caracas Radio. On May 27, 2007, the Venezuelan government took the channel off the air by denying the renewal of its broadcasting license, which President Hugo Chavez said had tried to undermine his government. It was replaced by the state-sponsored channel, TVes, which uses the same RCTV equipment and facilities. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. PETROLEOS DE VENEZUELA: Government Creating Three Units ------------------------------------------------------- Venezuelan President Hugo Chavez said at an official function that the government is creating three new units for state-run oil company Petroleos de Venezuela SA, Business News Americas reports. According to BNamericas, the new subsidiaries include: -- PDV Servicios, which will handle field services like operating drill rigs; -- PDV Industrial, which will manufacture and supervise imports of equipment such as drilling platforms and rigs; and -- PDV Agricola, which will handle new and existing agricultural projects. Petroleos de Venezuela said in a statement that it has appointed Asdrubal Chavez as vice president of refining, trade and supply. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. * VENEZUELA: RCTV Hands Over Broadcast Infrastructure to Gov't -------------------------------------------------------------- Radio Caracas Television's license expired at midnight on May 27, ending the network's 53 years of broadcasting. Venezuelan Hugo Chavez announced late last year that the network's license won't be renewed alleging that it's part of a move to destabilize the Chavez administration. Despite local and international protests, the government went on ahead of its plans and refused a dialogue with the company. An appeal filed with the Supreme Tribunal of Justice didn't help the network get a license renewal. According to El Universal, the government will take temporary control of RCTV's infrastructure to ensure that government-sponsored Televisora Venezolana Social, RCTV's replacement, can be watched all over the country, in accordance with a decree from the Supreme Court. The court also ordered the Armed Forced to guard, monitor and control permanently the use of installations and equipments and guarantee their use by the new channel, the same report adds. About RCTV Radio Caracas Television was a Venezuelan television network headquartered in Caracas. It is sometimes referred to as the Canal de Barcenas. Currently owned by Empresas 1BC, RCTV was founded on Nov. 15, 1953, by William H. Phelps. Its radio counterpart is Radio Caracas Radio. On May 27, 2007, the Venezuelan government took the channel off the air by denying the renewal of its broadcasting license, which President Hugo Chavez said had tried to undermine his government. It was replaced by the state-sponsored channel, TVes, which uses the same RCTV equipment and facilities. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. Fitch said the outlook on the ratings remains stable. *********** 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, and Christian Toledo, 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 * * *