/raid1/www/Hosts/bankrupt/TCRLA_Public/070530.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
Wednesday, May 30, 2007, Vol. 8, Issue 106
Headlines
A R G E N T I N A
ALITALIA SPA: Risks Bankruptcy If Bids are Low, Says Di Pietro
ALITALIA SPA: Aeroflot To Issue EUR900 Mln Eurobond to Back Bid
ALITALIA SPA: Passenger Traffic Down 0.4% in April 2007
HUGO CARLOS: Trustee To File General Report on June 1
NAVARRO SEGURIDAD: Trustee To File General Report on June 1
PLASTICOS DE SUDAMERICA: Claims Verification Deadline Is June 1
PLUSPACK SA: General Report Due in Court on June 1
TACURAL SACIF: Will Hold Informative Assembly on June 1
SUPERPLAGA: Proofs of Claim Verification Deadline Is June 1
UNION VECINAL: Trustee To File Individual Reports on June 2
B E R M U D A
ENERGY XXI: Affiliate Prices US$750 Mil. Senior Notes Offering
SEA CONTAINERS: Wants Exclusive Period Extended to Sept. 28
SEA CONTAINERS: Court Fixes July 16 as Claims Bar Date
SEA CONTAINERS: Court Approves Archlane Leases Settlement Pact
B O L I V I A
* BOLIVIA: Tax Agency Fines Entel BOB434 Million
* BOLIVIA: Buying Two Brazilian Refineries on June 11
B R A Z I L
BANCO NACIONAL: Inks Deal w/ Sebrae to Support Small Investments
BANCO NACIONAL: Okays BRL1.5-Billion Loan for Vivo
DELPHI CORP: Wants Claims Settlement Procedures Supplemented
DELPHI CORP: Wants Court Nod on US$10.5 Mln Umicore Settlement
FIAT SPA: May Discard Joint Venture with Nanjing Automobile
JBS SA: Acquires Swift & Co. for US$1.4 Billion
* BRAZIL: To Build Train Link Between Two Cities by 2008
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: Inks Four-Year Pact with Virgin Media
CABLE & WIRELESS: Names Jonathan Bass as Vice Pres. of Finance
GOLDMAN SACHS: Will Hold Final Shareholders Meeting Tomorrow
NEMO INTERNATIONAL: Proofs of Claim Filing Deadline Is June 5
PACTUAL CORPORATE: Proofs of Claim Filing Is Until June 5
SANYO ELECTRIC: USA Unit Moves Headquarters to Frisco
TT PARTNERS: Will Hold Final Shareholders Meeting on June 2
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 O L O M B I A
SOLUTIA INC: Court OKs Dequest Sale to Thermphos for US$67 Mil.
C O S T A R I C A
SMURFIT KAPPA: EBITDA Up 40% to EUR254 Mln in First Quarter 2007
C U B A
* CUBA: Sends Experts to Inspect North Dakota Fields
* CUBA: Working with Venezuela to Launch Oil Plant in Nation
D O M I N I C A N R E P U B L I C
GERDAU SA: Industrias Nacionales Acquisition Cheap, Says Analyst
G R E N A D A
* GRENADA: High Air & Sea Transportation Cost Hurt Nation
G U A T E M A L A
BRITISH AIRWAYS Closes Booking in Dar es Salaam
J A M A I C A
AIR JAMAICA: Confirms Reports on Discontinuing London Route
AIR JAMAICA: Union Says No Job Losses from London Route Sale
DIGICEL LTD: Telikom Feels Threatened by Firm's Market Entry
M E X I C O
ADVANCED MARKETING: Wants de Minimis Asset Sale Procedures OK'd
BAUSCH & LOMB: Advanced Medical Confirms Interest in Acquisition
BEST MANUFACTURING: Section 341(a) Meeting Scheduled for June 14
BEST MANUFACTURING: Trustee Selects Becker Meisel as Counsel
ENESCO GROUP: Wants Baker & McKenzie as Hong Kong Tax Counsel
HERBALIFE LTD: Names CEO Michael Johnson as Board's Chairman
P A N A M A
* PANAMA: Will Auction Two Mobile Concession Licenses in October
P E R U
* PERU: Calling for Bids to Build & Run Transmission Line
* PERU: Urges Algeria to Raise Investments in North Africa
P U E R T O R I C O
GLOBAL HOME: Wants Exclusive Plan Filing Extended Until August 3
T R I N I D A D & T O B A G O
DIGICEL LTD: Says Cell Tower Will Help Increase Mobile Coverage
HILTON HOTELS: Matthew J. Hart to Assume CEO Post in 2008
U R U G U A Y
HIPOTECARIO DEL URUGUAY: Earns UYU1.78 Billion in First Quarter
V E N E Z U E L A
* VENEZUELA: 99 of Cantv Managerial Staff Won’t be Changed
* VENEZUELA: Ministry Reaching Price Pact with Ternium This Week
* VENEZUELA: Working with Cuba to Launch Oil Plant
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: Risks Bankruptcy If Bids are Low, Says Di Pietro
--------------------------------------------------------------
Alitalia S.p.A. may succumb to bankruptcy if bidders do not submit
adequate offers to relaunch the ailing carrier, La Republica reports
citing Italian infrastructure minister Antonio Di Pietro.
Mr. Di Pietro hit the recent industrial action by Alitalia's staff, saying
that the strikes were "counterproductive and inopportune."
"We have to work together, not create difficulties," Mr. Di Pietro said,
adding that Alitalia's current sale process also aims to achieve an
industrial plan that safeguards jobs.
Alitalia reported EUR625.6 million in net loss on EUR4.72 billion in
operating revenues for the year ended Dec. 31, 2006, compared with
EUR176.6 million in net loss on EUR4.8 billion in operating revenues for
the year ended Dec. 31, 2005.
The company attributed its net loss mainly to a EUR197.3 million write off
of its aging fleet, Reuters reports. Alitalia also attributed its poor
results on higher fuel costs, stiff competition from low-cost carriers,
strikes and difficulties in achieving cost-cutting objectives. Around
EUR100 million in losses were caused by strikes.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. In Europe, the company reaches 45
airports, with 1,238 flights per week. In the rest of the
world, the Alitalia Group's aircrafts operate out of 32 airports
with 255 flights per week. The Alitalia Group network is
centered on two main airports, Rome Fiumicino and Milan
Malpensa, and includes, as of Sept. 30, 2006, an operating fleet
of 182 aircrafts. The Italian government owns 49.9% of
Alitalia. The company also operates in Argentina, China, and Japan.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia registered EUR93
million in net profits in 2002 after a EUR1.4 billion capital
injection. The carrier booked consecutive annual net losses of
EUR520 million in 2003, EUR813 million in 2004, and EUR168
million in 2005.
ALITALIA SPA: Aeroflot To Issue EUR900 Mln Eurobond to Back Bid
---------------------------------------------------------------
OAO Aeroflot plans to issue EUR900 million in Eurobond to finance its bid
for the Italian government's 39.9% stake in troubled carrier Alitalia
S.p.A., RIA Novosti reports.
As reported on May 25, 2007, Aeroflot received preliminary approval from a
group of banks for a EUR900 million credit. Aeroflot Finance Director
Mikhail Poluboyarinov told Russian daily Vedomosti that the carrier is
seeking credit from 20 foreign banks including Deutsche Bank, Bank of
Scotland,
Citigroup, Commerzbank and ABN AMRO.
Aeroflot, at the time, did not specify the type of credit it would take.
The Italian government said it is willing to sell its entire Alitalia
stake to the winning bidder, should the buyer requests it.
Mr. Poluboyarinov, however, commented that Aeroflot is not necessarily
interested in acquiring Italy's entire stake, RIA Novosti relates. He,
however, said that Italy should retain a stake in Alitalia for a board
seat to "correctly position the company on the market."
The consortium of Aeroflot and Unicredit Italiano S.p.A. is trying to
outbid other interested groups -- AirOne S.p.A. and Intesa-San Paolo
S.p.A.; and TPG Capital, MatlinPatterson Global Advisers and Mediobanca --
for the stake. The parties gained access to Alitalia's data room on May
24, 2007, and have to present their binding offers on July 2. The
government eyes to complete the sale process by end of July.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for passengers and
air transport of cargo on national, international and inter-continental
routes. In Europe, the company reaches 45 airports, with 1,238 flights
per week. In the rest of the world, the Alitalia Group's aircrafts
operate out of 32 airports with 255 flights per week. The Alitalia Group
network is centered on two main airports, Rome Fiumicino and Milan
Malpensa, and includes, as of Sept. 30, 2006, an operating fleet of 182
aircrafts. The Italian government owns 49.9% of Alitalia. The company
also operates in Argentina, China, and Japan.
Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia
posted net losses of EUR256 million and EUR907 million in 2000 and 2001
respectively. Alitalia registered
EUR93 million in net profits in 2002 after a EUR1.4 billion
capital injection. The carrier booked consecutive annual net
losses of EUR520 million in 2003, EUR813 million in 2004, and
EUR168 million in 2005.
ALITALIA SPA: Passenger Traffic Down 0.4% in April 2007
-------------------------------------------------------
Alitalia S.p.A. released its traffic statistics for April 2007.
Traffic data compared to the same period in 2006 showed an increase in
cargo business and passenger business in line.
Passengers Operations
Traffic, measured in Revenue Passenger Kilometers, decreased 0.4% and the
capacity, measured in Available Seat Kilometers, decreased 0.7%.
Therefore load factor reached 75.9%, in line with April 2006 (0.2
percentage points increase).
Alitalia carried 2.11 million passengers, up 1.1% compared to the previous
year.
Comparisons with April 2006:
-- Domestic Passenger Network: traffic increased by 1.1% with
offered capacity down 2.9%. Load factor was 70.2%.
-- International Passenger Network: traffic increased by 2.8%
and offered capacity by 1.1%. Load factor was 74.1%.
-- Intercontinental Passenger Network: traffic decreased by
3.1% while capacity was down 1.2%. Load factor was 79.4%.
Cargo Operations
April 2007 Cargo performance showed, compared to March 2006, a significant
traffic and offered capacity increase (traffic, measured in terms of
Revenue Ton Kilometers, increased by 19.3% while capacity was up 13.8%).
Overall Load factor was 67.6% with an increase by 3.1 percentage points.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. In Europe, the company reaches 45
airports, with 1,238 flights per week. In the rest of the
world, the Alitalia Group's aircrafts operate out of 32 airports
with 255 flights per week. The Alitalia Group network is
centered on two main airports, Rome Fiumicino and Milan
Malpensa, and includes, as of Sept. 30, 2006, an operating fleet
of 182 aircrafts. The Italian government owns 49.9% of
Alitalia. The company also operates in Argentina, China, and Japan.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia registered EUR93
million in net profits in 2002 after a EUR1.4 billion capital
injection. The carrier booked consecutive annual net losses of
EUR520 million in 2003, EUR813 million in 2004, and EUR168
million in 2005.
HUGO CARLOS: Trustee To File General Report on June 1
-----------------------------------------------------
Nora Mabel Pszemiarower, the court-appointed trustee for Hugo
Carlos Rey SA's reorganization proceeding, will file a general report
before the National Commercial Court of First Instance in Buenos Aires on
June 1, 2007.
Ms. Pszemiarower verified proofs of claim from Hugo Carlos’ creditors
until March 6, 2007. She then presented individual reports out of the
validated claims on April 18, 2007. The court determined if the verified
claims were admissible, taking into account the trustee's opinion and the
objections and challenges raised by Hugo Carlos and its creditors.
The informative assembly will be held on Nov. 11, 2007. Creditors will
vote to ratify the completed settlement plan during the assembly.
The trustee can be reached at:
Nora Mabel Pszemiarower
Avenida Corrientes 1257
Buenos Aires, Argentina
NAVARRO SEGURIDAD: Trustee To File General Report on June 1
-----------------------------------------------------------
Viviana Patricia Ferrarotti, the court-appointed trustee for
Navarro Seguridad SRL's reorganization proceeding, will file a general
report before the National Commercial Court of First Instance in Buenos
Aires on June 1, 2007.
Ms. Ferrarotti verified proofs of claims from Navarro Seguridad’s
creditors on March 2, 2007. She also presented creditors' validated
claims as individual reports in court on April 18, 2007. The court
determines if the verified claims were admissible, taking into account the
trustee's opinion and the objections and challenges raised by Navarro
Seguridad and its creditors.
The informative assembly will be held on Nov. 15, 2007.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The trustee can be reached at:
Viviana Patricia Ferrarotti
Calle 21 Numero 622 Mercedes
Buenos Aires, Argentina
PLASTICOS DE SUDAMERICA: Claims Verification Deadline Is June 1
---------------------------------------------------------------
Carlos Grela, the court-appointed trustee for Plasticos de
Sudamerica SA's bankruptcy proceeding, verifies creditors'
proofs of claim until June 1, 2007.
Mr. Grela will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 11 in Buenos Aires, with the assistance of Clerk
No. 21, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Plasticos de Sudamerica
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 Plasticos de
Sudamerica's accounting and banking records will be submitted in
court.
La Nacion did not state the date for the submission of the
reports.
Mr. Grela is also in charge of administering Plasticos de
Sudamerica's assets under court supervision and will take part
in their disposal to the extent established by law.
The debtor can be reached at:
Plasticos de Sudamerica SA
Maipu 216
Buenos Aires, Argentina
The trustee can be reached at:
Carlos Grela
Tucuman 1585
Buenos Aires, Argentina
PLUSPACK SA: General Report Due in Court on June 1
--------------------------------------------------
A court-appointed trustee for Pluspack SA's reorganization proceeding,
will file a general report before the National Commercial Court of First
Instance in Buenos Aires on
June 1, 2007.
The trustee verified creditors' proofs of claim until
Feb. 28, 2007. The trustee also presented the validated claims in court
as individual reports on April 17, 2007. The court determined if the
verified claims were admissible, taking into account the trustee's opinion
and the objections and challenges raised by Pluspack and its creditors.
TACURAL SACIF: Will Hold Informative Assembly on June 1
-------------------------------------------------------
Tacural S.A.C.I.F y A., a company under reorganization, will hold an
informative assembly on June 1, 2007.
Hector Edgardo Grun, the court-appointed for Tacural's reorganization
proceeding, verified creditors' claims against the company until Aug. 21,
2006. Validated claims were used as basis in creating individual reports,
which he presented in court on Oct. 2, 2006. He also presented a general
report on Nov. 14, 2006.
The trustee can be reached at:
Hector Edgardo Grun
San Martin 551
Buenos Aires, Argentina
SUPERPLAGA: Proofs of Claim Verification Deadline Is June 1
-----------------------------------------------------------
Gabriel Vulej, the court-appointed trustee for Superplaga SRL's bankruptcy
proceeding, verifies creditors' proofs of claim until
June 1, 2007.
Mr. Vulej will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 24 in Buenos Aires, with the assistance of Clerk
No. 47, 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 Superplaga 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 Superplaga's
accounting and banking records will be submitted in court.
La Nacion did not state the reports submission date.
Mr. Vulej is also in charge of administering Superplaga's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Superplaga SRL
Lavalle 2628
Buenos Aires, Argentina
The trustee can be reached at:
Gabriel Vulej
Tucuman 1484
Buenos Aires, Argentina
UNION VECINAL: Trustee To File Individual Reports on June 2
-----------------------------------------------------------
Jorge Alberto Amezqueta, the court-appointed trustee for Union Vecinal La
Estanzuela Barrio Dolores Prats de Huisi's reorganization proceeding, will
file individual reports before the National Commercial Court of First
Instance in Mendoza on June 2, 2007.
Mr. Amezqueta verified creditors' proofs of claim until
Feb. 28, 2007.
The court will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and challenges
raised by Union Vecinal 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 Union Vecinal's accounting and
banking records will follow on Oct. 27, 2007.
On March 14, 2008, Union Vecinal's creditors will vote on a settlement
plan that the company will lay on the table.
The trustee can be reached at:
Jorge Alberto Amezqueta
Buenos Aires 136, Ciudad de Mendoza
Mendoza, Argentina
=============
B E R M U D A
=============
ENERGY XXI: Affiliate Prices US$750 Mil. Senior Notes Offering
--------------------------------------------------------------
Energy XXI (Bermuda) Limited's subsidiary, Energy XXI Gulf Coast, Inc.,
has priced an aggregate of US$750 million of its Senior Notes due 2013 at
par with a coupon of 10% in a private placement in the United States in
reliance on Section 4(2) and/or Regulation D of the Securities Act of
1933, as amended, and in offshore transactions to non-U.S. persons in
reliance on Regulation S of the Securities Act.
The offering is expected to close on June 8, 2007, and is subject to
execution of definitive subscription documents and other customary closing
conditions.
Net proceeds of the proposed offering and additional borrowings under the
company's first lien revolving credit facility are intended to fund
acquisition of certain oil and natural gas properties in the Gulf of
Mexico from Pogo Producing Company and to repay the company's second lien
revolving credit facility in full.
The notes have not been registered under the Securities Act or applicable
state securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state laws.
About Energy XXI Gulf Coast
Headquartered in Houston, Texas, Energy XXI Gulf Coast Inc. is an
independent exploration and production company and is an indirect wholly
owned subsidiary of Energy XXI (Bermuda) Limited.
About Energy XXI (Bermuda) Limited
Founded in 2005, Energy XXI (Bermuda) Limited (LSE:EGY) --
http://www.energyxxi.com/-- is an independent oil and natural gas
exploration and production company whose growth strategy emphasizes
acquisitions, enhanced by its value-added organic drilling program. The
company's properties are primarily located in the U.S. Gulf of Mexico
waters and the Gulf Coast onshore.
* * *
As reported in the Troubled Company Reporter on May 21, 2007, Standard &
Poor's Rating Services assigned its 'CCC+' corporate
credit rating to oil and gas exploration and production company
Energy XXI Limited. At the same time, Standard & Poor's assigned its
'CCC' senior unsecured rating to subsidiary Energy XXI Gulf Coast Inc.'s
proposed US$700 million note offering. The outlook is stable.
SEA CONTAINERS: Wants Exclusive Period Extended to Sept. 28
-----------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the District of Delaware to further extend their exclusive
periods to:
(a) file a Chapter 11 plan through and including
Sept. 28, 2007; and
(b) solicit acceptances of that plan through and including
Nov. 27, 2007.
The Debtors contend that the deadlines need to be extended since they need
to consider their litigation with GE SeaCo SRL, pending the course and
potential outcome of the arbitration proceedings. The Debtors reason that
their restructuring plans may be affected by the outcome of the
arbitration because of the importance of GE SeaCo to the bankruptcy
estate.
GE SeaCo SRL, a joint venture between Sea Containers Ltd. and GE
Capital Corporation, manages a substantial portion of SCL's
container leasing business. Prior to Petition Date, GE Capital
asserted that it had the right to purchase SCL's equity interest
in GE SeaCo SRL because of an alleged change of control at SCL. SCL
strongly denied the alleged control change and the Debtors
are currently preparing to arbitrate the dispute, Mr. Greecher
notes. The Debtors expect the arbitrator to issue a decision on the
Control Change Issue around the end of September 2007.
The Debtors add that additional time is also required to:
* execute the sale of non-core assets; and
* various financing arrangements of the Debtors need to
be resolved and settled.
The Court will convene a hearing on June 7, 2007, to consider the Debtors'
extension request. By application of Rule 9006-2 of the Local Rules of
Bankruptcy Practice and Procedures of the United States Bankruptcy Court
for the District of Delaware, the deadline of the Debtors' Exclusive
Periods is automatically extended through the conclusion of that hearing.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers Ltd.
disclosed total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 17;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SEA CONTAINERS: Court Fixes July 16 as Claims Bar Date
------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware established July 16, 2007, 5:30 p.m., as the deadline for all
persons and entities holding or wishing to assert a claim against Sea
Containers Ltd. and its debtor-affiliates to file a proof of claim in
their Chapter 11 cases.
All proofs of claim must conform substantially to Form No. 10 of
the Official Bankruptcy Form and must be filed by mailing the
original proof of claim to:
BMC Group
Attn: SCL Claims Agent
P.O. Box 949
El Segundo, California
90245-0949
All other administrative claims must be made by separate requests for
payment in accordance with Section 503(b) of the Bankruptcy Code, and will
not be deemed proper if made by proof of claim.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers Ltd.
disclosed total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 17;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The Debtors' exclusive period to file a plan of reorganization expires on
Sept. 28, 2007.
SEA CONTAINERS: Court Approves Archlane Leases Settlement Pact
--------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware has approved the leases settlement agreement between Sea
Containers, Ltd. and its debtor-affiliates, and Archlane Limited.
As reported in the Troubled Company Reporter on May 10, 2007, the
settlement pertains to the Debtors' corporate headquarter premises, of
which Archlane Limited is the current landlord.
The aggregate annual rent under the Leases is approximately
GBP2,550,000, or about US$5,100,000 at current exchange rates.
SCSL also pays about GBP1,116,020, or US$2,178,040, in additional
aggregate annual charges under the Leases for utilities and other
services. The Debtors estimate that the aggregate payment obligations
remaining under the Lease may aggregate more than US$36,000,000.
After careful analysis of their options with respect to the
Leases, the Debtors have decided that a settlement with Archlane
surrendering the Leases and entering into new shorter-term leases is the
best choice for maximizing value for their estates.
After intensive negotiations, the Debtors and Archlane reached a
settlement that principally provides for, among others:
(1) Surrender of SCSL's current Leases subject to a
GBP7,000,000 payment to Archlane; and
(2) Entry into new leases for the current occupied Premises
under the Leases commencing on May 18, 2007, and expiring
on June 30, 2007.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers Ltd.
disclosed total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 17;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
The Debtors' exclusive period to file a plan of reorganization expires on
Sept. 28, 2007.
=============
B O L I V I A
=============
* BOLIVIA: Tax Agency Fines Entel BOB434 Million
------------------------------------------------
Bolivian government tax agency Servicio de Impuestos Nacionales has
ordered fixed line incumbent Entel to pay BOB434 million for allegedly
failing to disclose a remittance of profits to Italy in its October 2005
tax report, Bolivian reporters say, citing the nation’s tax regulator
Superintendencia Tributaria General.
According to the press, STG ruled that Entel remitted BOB1.60 billion to
its holding firm Euro Telecom International without fulfilling its
obligations under tax law 843. La Paz's tax office informed Entel on
March 27, 2006, about its pending debt, which included interest of BOB227
million and a BOB208-million fine.
Entel denied in a statement that it made any remittances abroad.
Reporters note that Entel said, "We have never sent profits abroad, we
have simply returned the capital invested by ETI, which benefited all the
Bolivian partners and shareholders. In Bolivia there is no law that taxes
the movement of capital. The practice of taxing capital discourages
investment in the country."
Business News Americas relates that Bolivian telecoms regulator Sittel
earlier said it was fining Entel US$3.6 million for failing to meet
quality of service commitments in rural areas and for not fulfilling
growth plans in four different areas in the 2000-01 period.
The Bolivian government wants to completely nationalize Entel, BNamericas
states.
* * *
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
* BOLIVIA: Buying Two Brazilian Refineries on June 11
-----------------------------------------------------
State Bolivian Tax Oil Fields president Guillermo Aruquipa said that June
11 marked the date to start controlling two refineries belonging to the
Brazilian state-oil firm, Petroleo Brasileiro SA, Prensa Latina reports.
YPFB, by that date, would have deposited US$56 million of US$112 million
agreed in the accord to purchase the "Gualberto Villarroel" factory in
central Cochabamba and "Guillermo Elder Bell" plant in east Santa Cruz,
Mr. Aruquipa commented
Prensa Latina states that after handing over of both plants, the agreement
included the second payment to be delivered on
Aug. 11.
Mr. Aruquipa asserted that YPFB and Petrobras have conformed three
technical groups to negotiate logistic, trade and managerial aspects.
* * *
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
===========
BANCO NACIONAL: Inks Deal w/ Sebrae to Support Small Investments
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES President
Luciano Coutinho and Carlos Alberto dos Santos, director of Finance and
Administration of Sebrae Nacional, signed, an agreement to jointly select
the projects submitted to the Bank, within the scope of Programa de
Investimentos Coletivos Produtivos (Productive Collective Investment
Program). The proposals will be submitted by Sebrae state units and
higher regional impact projects will have priority. The selection
criterion will also take into account the territorial distribution.
The investment will support up to ten projects characterized to contribute
for the development of their locations, improve the performance and
strength of local production chains, expand the access to new markets and
enhance product quality, besides significantly improving the income of
members of the cooperatives and allowing inclusion of new beneficiaries.
The projects should have as beneficiaries those cooperatives with gross
operating revenue equal to BRL10.5 million or lower and foundations which
projects are carried out in low-income regions.
BNDES financial resources destined to these projects will have a
refundable nature, that is, they will require their amortization and
payment of interest, and also not refundable, on account of Fundo Social
BNDES (BNDES Social Fund). The total volume of Fund resources will be
limited to BRL10 million.
BNDES participation in each project shall be of up to 80% of the amount
supported. This may range between BRL500 thousand to BRL1.5 million,
according to criteria that consider level of income, economic dynamism of
the municipality and investment characteristics. It will also be taken
into account the economic sustainability of the client.
Proinco was created to support workers, producers and/or national
companies with collective investments that may have an influence on the
social and economic development of the communities and of their
surrounding locations, with emphasis on the less developed ones.
With the signature of this agreement, Sebrae will be able to assist in
project structuring and later monitoring of enterprise implementation or,
even, in their statement of accounts before BNDES. The agreement will
allow increased agility in the project elaboration and delivery, as well
as their more efficient monitoring.
About BNDES
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
BANCO NACIONAL: Okays BRL1.5-Billion Loan for Vivo
--------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a statement
that it has authorized a BRL1.5-billion loan for Brazilian mobile phone
firm Vivo.
According to Banco Nacional’s statement, the funds will be allocated for
the completion of Vivo's GSM overlay and for its network in general. Vivo
runs in 19 of the 27 concession areas.
Business News Americas relates that Vivo invested more than BRL2.1 billion
last year, with over half of the amount being allotted to the installation
of a GSM overlay on its code division multiple access network.
Vivo is the sole Brazilian mobile phone carrier using code division
multiple access technology. It has already implemented GSM technology in
2,295 municipalities since last year. It is a joint venture between
Spain's Telefonica and Portugal Telecom.
Banco Nacional said in a statement that the project will let Vivo prepare
its technology for the migration of services to 3G. Banco Naconal
ratified some BRL4.5 billion in loans for Brazil's telecoms sector last
year.
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.
DELPHI CORP: Wants Claims Settlement Procedures Supplemented
------------------------------------------------------------
Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to supplement its
previously issued order on settlement procedures to clarify that
the Debtors are authorized to settle claims:
(a) against the estates of specific Debtor entities; and
(b) with a priority or status different from that which was
asserted by claimants.
The Debtors further ask to Court to rule that the Supplemental
Settlement Procedures Order will be effective nunc pro tunc to
June 29, 2006, in order to protect the soundness of their
consummated settlements since that time.
The Debtors had previously obtained the Court's authority to
establish and enforce certain guidelines and notice procedures
that enable the Debtors, without further Court approval, to:
(i) settle disputes in commercial transactions and other
circumstances outside the ordinary course of business;
and
(ii) allow certain claims.
The Court entered the Claims Settlement Procedures Order on
June 29, 2006.
John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, notes that the Claims Settlement
Procedures Order does not expressly authorize the Debtors to:
(1) allow, nor does it expressly prohibit the Debtors from
allowing, claims against specific Debtor entities and
their estates; and
(2) characterize claims as having a priority or other status
different from that originally asserted by the claims.
The Debtors, however, believe that that authority is inherent in
the relief granted by the Claims Settlement Procedures Order.
Thus, since the entry of the Order, they have utilized the Claims
Settlement Procedures to enter into agreements with claimants that allow
prepetition claims against the estates of specific Debtor entities rather
than against the Debtors as a whole, and that characterize claims with a
status different from that which was asserted by the claimants.
Mr. Butler relates that specifying the estate against which each
prepetition claim will be allowed is a necessary part of settling
prepetition claims because the Debtors' estates are not
substantively consolidated, and because the Debtors often dispute the
specific estate against which certain claims are asserted.
The Debtors' ability to assign a claim with a status different
from that originally asserted is also a necessary part of the
claims settlement process because the characterization of a
prepetition claim is a key component to any claim settlement, and because
the Debtors often dispute the claim classification
asserted by claimants, Mr. Butler tells the Court.
About Delphi Corporation
Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) --
http://www.delphi.com/-- is the single largest global supplier of vehicle
electronics, transportation components, integrated systems and modules,
and other electronic technology. The company's technology and products
are present in more than 75 million vehicles on the road worldwide.
Delphi has regional headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in
total assets and US$23,851,000,000 in total debts. The Debtors' exclusive
plan-filing period expires on July 31, 2007. (DelphiCorporation
Bankruptcy News, Issue No. 69; Bankruptcy Creditors'Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DELPHI CORP: Wants Court Nod on US$10.5 Mln Umicore Settlement
--------------------------------------------------------------
Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to approve their
settlement agreement with Umicore Autocat Canada Corp..
In October 2005, Umicore submitted a demand to the Debtors
asserting a reclamation claim for US$2,742,819.
In July 2006, Umicore filed Claim No. 12924 against Delphi
Automotive Systems, LLC, asserting a US$10,671,101 unsecured non-priority
claim and an unliquidated unsecured priority claim for goods and services
delivered to DAS.
Upon review of their books and records and the supporting
documentation provided by Umicore, the Debtors have determined
that they only owe Umicore US$10,558,893.
After arm's-length bargaining, the Parties arrived at a
settlement agreement that provides for the full resolution of
Umicore's Claims.
Under the Settlement Agreement, the Debtors agree to allow Claim
No. 12924 as a prepetition general unsecured non-priority claim
for US$10,558,893, without further defense, set-off or reduction. For its
part, Umicore agrees to withdraw its Reclamation Demand with prejudice.
The Settlement Agreement will avoid costly litigation of
Umicore's Claims, John Wm. Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom LLP, in Chicago, Illinois, tells the Court.
The Debtors aver that the Settlement Agreement is in the best
interest of their estates and their creditors.
About Delphi Corporation
Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) --
http://www.delphi.com/-- is the single largest global supplier of vehicle
electronics, transportation components, integrated systems and modules,
and other electronic technology. The company's technology and products
are present in more than 75 million vehicles on the road worldwide.
Delphi has regional headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in
total assets and US$23,851,000,000 in total debts. The Debtors' exclusive
plan-filing period expires on July 31, 2007. (DelphiCorporation
Bankruptcy News, Issue No. 69; Bankruptcy Creditors'Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
FIAT SPA: May Discard Joint Venture with Nanjing Automobile
-----------------------------------------------------------
Fiat S.p.A. CEO Sergio Marchionne is considering discarding its joint
venture with Nanjing Automobile Group Corp. in favor of an alliance with
another Chinese carmaker, John Reed and Geoff Dyer write for the Financial
Times.
"We missed an opportunity. I don’t think its too late, but we have to do
more," Mr. Marchionne was quoted by FT as saying.
According to FT, Fiat wants to sell 300,000 cars in China by 2010, but its
Nanjing Auto venture produced around 31,300 cars in 2006, with market
share of less than one percent.
"We have different opinions on the market situation, targets as well as
developing strategy with Nanjing Auto," Zheng Xiaoli, publicity officer of
Nanjing Fiat Automobile Co Ltd. told Jin Jing of Shanghai Daily.
"We keep negotiating to solve the problem, but we will also try other ways
including teaming up with other Chinese partners to reach our target in
China," Mr. Xiaoli added.
Mr. Marchionne told FT that Nanjing had been distracted by its efforts to
relaunch the MG brand.
FT said that Fiat is considering on expanding one of its existing
partnerships with Shanghai automotive Industry Corp. or with Chery
Automobile.
"I remained committed to working out the matter with Nanjing Auto, but if
we don't we'll have to find an alternative. We have a relationship with
SAIC and one with Chery on engines that could become a car alliance," Mr.
Marchionne relates.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction equipment. It also
manufactures, for use by the company's automotive sectors and for sale to
third parties, other automotive-related products and systems, principally
power trains (engines and transmissions), components, metallurgical
products and production systems. Fiat's creditors include Banca Intesa,
Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among
others.
* * *
Standard & Poor's Ratings Services raised its long-term corporate credit
rating on Italian industrial group Fiat S.p.A. to 'BB' from 'BB-'. At the
same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat.
S&P said the outlook is stable.
The company carries Fitch Ratings' Issuer Default rating and senior
unsecured rating at BB-. The Short-term rating is affirmed at B. Around
EUR6 billion of debt is affected by this rating action.
In addition, Fiat Spa also carries Moody's Investors Services
Ba3 Corporate Family Rating with positive outlook. The long- term senior
unsecured ratings as well as the short-term non-
Prime rating also remains.
JBS SA: Acquires Swift & Co. for US$1.4 Billion
-----------------------------------------------
JBS S.A., one of Latin America's largest beef processor, has bought Swift
& Co. for US$1.4 billion, which includes the assumption of about US$1.2
billion in debts.
Daniel J. Goldstein and Madelene Pearson, at Bloomberg News, report that
the transaction includes the purchase of Swift's assets in the United
States and Australia.
Swift & Co., controlled by Dallas-based buyout firm HM Capital Partners
LLC, is the third-largest seller of beef and pork in the U.S.
The Tribune relates that the sale was announced in January and was
prompted by losses resulting from beef bans in Asian markets. Swift has
hired JP Morgan Chase to explore strategic and financial alternatives
after it received unsolicited inquiries.
Swift reported US$48.6 million net loss for the quarter ended
Feb. 25, 2007.
Bloomberg says the acquisition will give JBS access to the U.S, the
world's top consumer of beef, and open Asian markets such as Japan, which
ban imports from Brazil.
"North America and North Asia are the prized markets for the beef industry
around the world," Wendy Voss, a Sydney- based senior analyst at Rabobank
Group, said to Bloomberg.
JBS' share rose 26 centavos, or 3.7%, to BRL7.31 in Sao Paulo stock
exchange composite trading Monday.
Swift & Company, headquartered in Greeley, Colorado, is a major
processor of beef and pork, with operations in the US and
Australia. It has sales offices in Mexico.
HM Capital Partners LLC and Booth Creek Management Corp. acquired Swift
from ConAgra Foods Inc. in 2002 for US$1.23 billion in cash and assumed
debt.
Headquartered in Sao Paulo, Brazil, JBS is the fourth largest
beef company in the world in terms of live cattle slaughtering
capacity and the largest beef processor and exporter in Brazil,
Argentina and Latin America. With operations in Brazil and
Argentina, JBS produces, prepares, packages and delivers fresh,
chilled and processed beef and beef by-products to customers
both in Brazil and abroad. The group also manufactures and
sells hygiene and cleaning products.
* * *
As reported in the Troubled Company Reporter on Jan. 9, 2007,
Standard & Poor's Ratings Services said that its 'B+' long-term
corporate credit rating on JBS S.A. will not be affected by the
company's proposed spin-off of its hygiene and cleaning unit.
JBS proposes to transfer all assets and liabilities of its
hygiene and cleaning unit, as well as certain other assets that
are not directly related to its core beef business, to a
recently created company, Flora Produtos de Higiene e Limpeza
Ltda (Flora; not rated), which will be controlled by J&F
Participacoes Ltda., the same holding company that controls JBS.
* BRAZIL: To Build Train Link Between Two Cities by 2008
--------------------------------------------------------
The Brazilian government would start the construction on a US$9 billion
high speed rail linking Rio de Janeiro and Sao Paulo as early as next
year, The Associated Press reports, citing the transportation ministry.
According to the ministry, Brazilian, South Korean, French and Italian
companies are interested in building the 403-kilometer rail link. In
April, Agencia Estado news service reported that French train maker Alstom
had proposed to build the link.
The AP says that the bullet-train link between two cities, which has been
discussed for decades, is expected to be built in seven years.
* * *
As reported on Nov. 24, 2006, Standard & Poor's Ratings Services
revised its outlook on its long-term ratings on the Federative
Republic of Brazil to positive from stable. Standard & Poor's
also affirmed these ratings on the Republic of Brazil:
-- 'BB' for long-term foreign currency credit rating,
-- 'BB+' for long-term local currency credit rating, and
-- 'B' for short-term currency sovereign credit rating.
* * *
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.
===========================
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: Inks Four-Year Pact with Virgin Media
-------------------------------------------------------
Cable & Wireless has entered into a four-year accord with Virgin Media to
become its “exclusive unbundled local loop network provider on a wholesale
basis until 2011,” Financial Mirror reports.
Financial Mirror relates that Cable & Wireless will provide wholesale
broadband services to support Virgin Media's “off net” clients. Virgin
Media will be able to provide broadband, phone and television service to
areas of the United Kingdom not served by its cable network.
Cable & Wireless has “the experience and understanding of Virgin's
culture” due to its long-standing relationships with some Virgin brands --
including Virgin Atlantic and Virgin Group, Financial Mirror says.
Virgin Media Chief Operating Officer Neil Berkett commented to Financial
Mirror, "Cable & Wireless' service and technology will allow us to offer
enhanced broadband and home phone services to an additional four million
customers. It also lays a foundation for us to provide our unique quad
play services to the 50% of households outside our cable network."
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.
CABLE & WIRELESS: Names Jonathan Bass as Vice Pres. of Finance
--------------------------------------------------------------
Cable & Wireless has appointed Jonathan Bass as its Vice President of
Finance, The Democrat Newspaper reports.
According to The Democrat, Mr. Bass’ appointment took effect on
April 1. He replaced Richard Henry, who was transferred to Cable &
Wireless Grenada.
The Democrat relates that Mr. Bass is a Certified Public Accountant. He
has had a distinguished career in accounting locally. He started working
at Cable & Wireless in 1999 as Financial Accountant. He also worked for
Cable & Wireless Anguilla for two years. He was Business Controls Manager
in a regional capacity, working with the East Area Team based in St.
Lucia.
Mr. Bass commented to The Democrat, "I am pleased to serve Cable &
Wireless at this level, having benefitted from 8 years' experience in
various capacities in the organization."
"This is another proud moment for me to welcome another son of the soil to
Cable & Wireless'' senior management team. Your appointment to this
position solidifies Cable & Wireless'' strong record of entrusting the
leadership of its business to Caribbean nationals. I have every
confidence that you would perform creditably in this role, having acquired
a wealth of experience over the last several years," Cable & Wireless
Chief Executive Patricia Walters told The Democrat.
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.
GOLDMAN SACHS: Will Hold Final Shareholders Meeting Tomorrow
------------------------------------------------------------
Goldman Sachs Global Equity Long/Short Partners Cayman Ltd. will
hold its final shareholders meeting tomorrow, at 10:30 a.m., at the
company's offices.
These matters will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
and
2) authorizing the liquidators to retain the company's
records for a period of five years from its dissolution,
after which they may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
P.O. Box 908
Grand Cayman KY1-9002
Cayman Islands
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
SANYO ELECTRIC: USA Unit Moves Headquarters to Frisco
-----------------------------------------------------
Sanyo Energy USA has moved its headquarters from San Diego to Frisco, San
Francisco, to save money, reports Penny Rathbun of The Frisco Enterprise.
This manufacturer of rechargeable batteries is a subsidiary of Sanyo
Electric Co., Ltd.,
Aside from the monetary cause of the transfer, Sanyo Energy finds that the
cost of living in Frisco is much less expensive compared to San Diego and
company executives find the weather much favorable to them, Ms. Rathbun
relates. The company has been planning this transfer for more than a
year, Ms. Rathbun adds.
Sanyo Energy Vice President of Operations Andrew Sirjord stated that along
with the company’s transfer, it has also instigated some operational
changes that will help them recoup all of its relocation costs within
three years, according to the report.
According to Ms. Rathbun, Frisco Economic Development Corporation provided
incentives for the company to make the move but did not state what these
incentives are. Sanyo Electric has signed a long-term deal for 30,000
square feet at the 2600 Network Avenue location.
About Sanyo Electric
Headquartered in Osaka, Japan, SANYO Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading manufacturers of
consumer electronics products. The company has global operations in
Brazil, Germany, India, Ireland, Spain, the United States and the United
Kingdom, among others.
* * *
In March 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and senior
unsecured ratings on rating watch negative.
On May 23, 2006, Standard & Poor's Ratings Services affirmed its negative
BB long-term corporate credit and BB+ senior unsecured debt ratings on
SANYO Electric Co. Ltd. At the same time, the ratings were removed from
CreditWatch where they were first placed with negative implications on
Sept. 28, 2005.
TT PARTNERS: Will Hold Final Shareholders Meeting on June 2
-----------------------------------------------------------
TT Partners Ltd. will hold its final shareholders meeting on
June 2, 2007, at 10:00 a.m., at:
100 rue du Rhone
CH-1204 Geneva
Switzerland
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
and
2) authorizing the liquidator to retain the records
of the company for a period of three years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Luc Estenne
100 rue du Rhone, CH-1204
Geneva, Switzerland
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 O L O M B I A
===============
SOLUTIA INC: Court OKs Dequest Sale to Thermphos for US$67 Mil.
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
has given the green light for Solutia Inc.'s sale of its
Dequest(R) water treatment phosphonates business to Thermphos
Trading GmbH.
The Honorable Prudence Carter Beatty has authorized Solutia to
enter into the asset purchase agreement dated March 11, 2007, with
Thermphos, which has agreed to acquire the Dequest business for
US$67,000,000, subject to certain adjustments based on an agreed upon
working capital and inventory value as of the closing date.
Under the terms of the APA, Solutia's sale of Dequest to
Thermphos, a Swiss corporation, was subject to higher and better
offers to be determined through a Court-approved auction process.
"No other entity has submitted a qualified bid providing greater
economic value to the Debtors for [Dequest] than has the
[Thermphos'] bid set forth in the Purchase Agreement," Judge
Beatty ruled in her sale order.
The Purchase Agreement includes an agreement by Solutia not to
compete in the business of production and sale of phosphonates
and phosphonate-based specialty additives and the purchase and
resale of those products for a period of three years following
the closing date, except that it may continue its Fluids
business, which is into selling or servicing products used in
aviation and non-aviation hydraulic systems, equipment and
testing labs.
The Purchase Agreement also includes an agreement by Thermphos
not to hire nor solicit any employees of Solutia or its
affiliates for a period of two years following the closing date.
Under the terms of the Purchase Agreement, Solutia is required to
indemnify, defend and hold harmless Thermphos and its affiliates from and
against any and all losses, damages and liabilities resulting from
breaches of the representations, warranties and covenants contained in the
Purchase Agreement or from any excluded liabilities.
At closing, US$2,500,000 of the sale proceeds will be placed into escrow
for one year to secure Solutia's indemnification
obligations to Thermphos under the Purchase Agreement.
A portion of the net proceeds of the sale will be used to pay
down the term loan under Solutia's DIP Credit Facility.
Closing of the Purchase Agreement is subject to a number of
conditions, including receipt of other required government and
regulatory approvals as well as customary closing conditions.
The Purchase Agreement provides the parties with customary
termination rights relating to material adverse changes or
impossibility of conditions precedent to the closing.
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in the
manufacture and sale of chemical-based materials, which are used in
consumer and industrial applications worldwide. Solutia has operations in
Malaysia, China, Singapore, Belgium, and Colombia.
The company and 15 debtor-affiliates filed for chapter 11 protection on
Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed
for protection from their creditors, they listed US$2,854,000,000 in
assets and US$3,223,000,000 in debts.
Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl,
LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull
Group LLC is the Debtor's claims and
noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq.,
and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP
represent the Official Committee of Unsecured Creditors, and
Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital
provides the Creditors' Committee with financial advice. (Solutia
Bankruptcy News, Issue No. 87; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
The Debtors' exclusive period to file a plan expires on
July 30, 2007.
===================
C O S T A R I C A
===================
SMURFIT KAPPA: EBITDA Up 40% to EUR254 Mln in First Quarter 2007
----------------------------------------------------------------
Smurfit Kappa Group plc disclosed key financial performance metrics for
the quarter ended March 31, 2007, and a trading update in respect of a
four-month period ended April 30, 2007.
For the first quarter of 2007, SKG is reporting net sales of EUR1.8
billion, which represents a 3.6% increase on net sales of EUR1.7 billion
in the first quarter of 2006. EBITDA, before exceptional items, of EUR254
million increased 40% against EBITDA of EUR181 million in the first
quarter of 2006. This represents an EBITDA margin on net sales of 14.2%
and 10.5% respectively. Exceptional items in the first quarter of 2007
were EUR85 million, of which EUR75 million related to once-off IPO related
costs, primarily in respect of the early paydown of debt.
For the first quarter of 2007, SKG is reporting net sales of EUR1.8
billion, which represents a 2.6% increase on net sales of EUR1.7 billion
in the fourth quarter of 2006. EBITDA, before exceptional items, of
EUR254 million was flat quarter-on-quarter with an EBITDA margin on net
sales of 14.2% and 14.5% respectively.
Net Debt reduced by EUR1.3 billion from EUR4.9 billion at December 2006 to
EUR3.5 billion at March 2007.
Capital Structure & Debt Pay Down
SKG successfully returned to public equity markets through the completion
of an all primary IPO in March, 2007. The Group raised gross proceeds of
EUR1.5 billion through a global institutional offering, which was
significantly oversubscribed. This comprised an initial public offering of
EUR1.3 billion and the full exercise of over-allotment arrangements, which
raised an additional EUR195 million. Proceeds were applied to optimize
SKG's capital structure. The Group's financial objective for 2007 is
equity accretion through debt pay down as the expected benefits of a
better pricing environment are realized.
Synergies & Re-structuring Costs
Following the conclusion of the merger of the operations of JSG and Kappa,
one of the Group's key priorities was the delivery of defined synergy
benefits of EUR160 million at the end of three years. Target synergy
areas included paper mill rationalization, paper logistics and
integration, optimization of the SKG corrugated system, specialties,
purchasing savings and central and administrative overhead savings. SKG's
synergy program delivered approximately EUR87 million in 2006, ahead of
the Group's target of EUR60 million. SKG's annualized synergy run rate,
at the end of 2006, was approximately EUR124 million. This was also ahead
of SKG's original expectation of a run rate of EUR95 million per annum by
the end of 2006. In the first quarter of 2007, SKG delivered synergy
benefits of EUR34 million as against EUR9 million in the first quarter of
2006 and EUR31 million in the fourth quarter of 2006. The momentum behind
the synergy program continues and SKG's current objective is to deliver
total synergy benefits, ahead of the original EUR160 million estimate, by
the end of three years.
Efficient Capacity Management
During 2006, SKG rationalized 495,000 tons of high-cost recycled
containerboard capacity, primarily through machine closures and through
permanent grade switches to kraftliner and semi-chemical medium. In
addition, SKG closed 60,000 tons of coated paper and 20,000 tons of
folding boxboard. These closures and grade switches are contributing to
an improving overall cost profile for SKG's existing mill system.
In March 2007, SKG announced the closure of a mill in Alaincourt, France,
with capacity of 90,000 tons of recycled containerboard. SKG will use the
machine from this mill to replace another machine within its system;
however, the net reduction in tonnage will be a minimum of 60,000 tons.
SKG also recently implemented the closure of two corrugated plants, a
solid board machine, and a solid board packaging operation. Operating cost
reduction and further improving the quality of the Group's existing asset
base will be the subject of ongoing projects in 2007 and beyond.
The Group will also continue to assess opportunities to expand in Eastern
Europe and Latin America, where SKG believes it can enhance its market
position and earnings profile in what are attractive and high growth
markets. Capital expenditure is expected to be approximately 90% of
depreciation for the 2007 full year.
Trading update for four months to April 30, 2007
Overall trading in the first four months of 2007 is significantly ahead
of the same period in 2006. This reflects
tight market conditions in recycled containerboard in Europe together with
the benefit of a positive price environment. The benefit of higher
containerboard pricing was partly offset in the period by higher raw
material prices. Box prices are being progressively increased to recover
containerboard prices increases. The implementation of box price
increases is, however, a slower process than the implementation of paper
price increases. While overall price momentum is positive, there is some
margin pressure within the Group's corrugated system as current box
pricing does not yet reflect higher containerboard prices.
In Latin America, the Group's operations benefited from a combination of
higher sales volumes and higher average selling prices during the first
four months relative to the comparable period in 2006. Demand growth is
generally positive across the region with overall corrugated volumes
showing a significant year-on-year increase. A combination of strong
demand and a generally better pricing environment is contributing to
increased earnings growth for this region.
Outlook
"Demand is strong and capacity is increasingly coming into balance across
each of our markets," Smurfit Kappa Group CEO Gary McGann commented.
"Inventory levels, for both OCC and recycled containerboard, are
significantly below prior year levels. While we are experiencing
near-term margin compression, we are reporting a solid financial
performance for the first quarter. SKG expects to deliver a FY 2007
outcome in line with current market expectations."
About Smurfit Kappa Group
Headquartered in Dublin, Ireland, Smurfit Kappa Group --
http://www.smurfit-group.com/-- manufactures containerboard
containerboard and converts it into corrugated cases, folding
cartons, paper sacks, tubes, and composite cans. Other products
include boxboard, sack kraft paper, and printing and writing
paper. The company produces 6 million tons of paper annually
and has 300 facilities worldwide. In Latin America, the company
operates in Argentina, Brazil, Chile, Colombia, Costa Rica,
Dominican Republic, Ecuador, Mexico and Venezuela.
* * *
As reported on Feb. 19, 2007, Standard & Poor's Ratings Services
maintained its credit ratings, including its 'B+' long-term corporate
credit rating, on Ireland-based paper and packaging company Smurfit Kappa
Group Ltd. and related entities on CreditWatch with positive implications.
As reported on June 30, 2006, Fitch Ratings affirmed Smurfit Kappa
Acquisitions' Issuer Default Rating at 'B+'. At the same time the agency
affirmed the instrument ratings. Fitch said the outlook is stable.
The stable outlook assigned to Smurfit Kappa Group's ratings
reflects Fitch's view that EBITDA will return to growth during
the course of 2006 and that SKG will be in a position to
generate significant cashflow for debt repayment from 2007-8.
=======
C U B A
=======
* CUBA: Sends Experts to Inspect North Dakota Fields
----------------------------------------------------
Officials told Canadian Press that Cuba is dispatching experts to the
fields of North Dakota this summer as it closes in on the first deal to
import American seed potatoes.
According to Canadian Press reporter Will Weissert, two Cuban agricultural
inspectors made proposals to investigate the state's varieties and observe
how seed potatoes are packed for shipping. Cuba will buy about 100 tonnes
of seed potatoes to plant in its fields if all goes well.
In an interview with Pedro Alvarez, head of Communist Cuba's food import
company Alimport, Canadian Press relates said the island already made
imports more than 40,000 tonnes of seed potatoes annually from Canada and
the Netherlands.
Citing Mr. Alvarez, Canadian Press says that Cuba intended to test the
North Dakota seed potatoes in its soil before buying larger quantities.
Officials hoped to have the state's potatoes planted in Cuba when growing
season starts in November.
* * *
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
* CUBA: Working with Venezuela to Launch Oil Plant in Nation
------------------------------------------------------------
Cuba is working with Venezuela to launch an oil plant, Armando Saez Chavez
at Periodico 26 reports.
Ali Rodriquez Araque, the Venezuelan ambassador to Cuba, told Periodico
26’s Mr. Chavez, “We are very pleased with the joint effort between Cuba
and my country [Venezuela] to finish building the oil refinery [in
Cienfuegos]. We believe its opening in December will be a hard blow to
the blockade.”
The PDV-CUPET joint venture firm of Cuba and Venezuela is part of a series
of energy accords signed between the two nations. The project’s is on
schedule. The first operational phase should be underway by year-end. It
would process about 65,000 barrels of oil daily, Period 26’s Mr. Chavez
notes, citing Mr. Araque.
Mr. Araque told Periodico 26’s Mr. Chavez that the key areas of the oil
sector that are being worked on include:
-- completion of the Cienfuegos oil refinery,
-- a project to boost storage capacity in the Matanzas
supertanker dock, and
-- reactivation of the oil pipeline between Cienfuegos
and Matanzas.
Periodico 26’s Mr. Chavez relates that the works at the Camilo Cienfuegos
Oil Refinery include:
-- replacing the instrumentation system with updated
technology,
-- modernizing storage tanks facilities, and
-- replacing pipes, seals and bearings.
According to Periodico 26’s Mr. Chavez, oil tanker wharfs are also being
upgraded while environmental protection equipment is being set up.
Periodico 26’s Mr. Chavez states that the Cienfuegos oil plant will produce:
-- liquefied gas,
-- gas,
-- jet aircraft fuel,
-- diesel, and
-- fuel oil.
* * *
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
===================================
D O M I N I C A N R E P U B L I C
===================================
GERDAU SA: Industrias Nacionales Acquisition Cheap, Says Analyst
----------------------------------------------------------------
An analyst at brokerage Planner Corretora told Business News Americas that
Gerdau's move to purchase a stake in a Dominican Republic steel firm was
"relatively cheap" compared to other purchases.
BNamericas relates that Gerdau signed a strategic alliance to acquire a
30.45% stake in holding firm Multisteel Business Holdings, which holds
98.57% of steel company Industrias Nacionales, for US$42 million.
The analyst told BNamericas that Gerdau is paying about US$105 per ton of
Indusrias Nacionales’ capacity. Meanwhile, the company paid US$110 per
ton for U.S. steel firms Fargo Iron and Metal, US$220 per ton for rebar
producer Callaway Building Products and US$172 per ton for Sheffield
Steel.
According to BNamericas, Industrias Nacionales is a long steel rolling
mill. It produces concrete reinforcing bars, pipes and other steel
products. Shipments reach about 400,000 tons yearly.
The Industrias Nacionales stake acquisition is part of Gerau's strategy on
growth in Central and North America, BNamericas states, citing the
analyst.
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.
=============
G R E N A D A
=============
* GRENADA: High Air & Sea Transportation Cost Hurt Nation
---------------------------------------------------------
Grenadan Prime Minister Keith Mitchell told RJR 94 FM that the high cost
of air and sea transportation continues to hurt the nation.
According to RJR 94 FM, St. Lucia complained earlier about expensive
airfares, blaming them on a commercial accord between Leeward Islands Air
Transport and the Caribbean Star. The two carriers planned to merge fully
by June 15.
St. Lucia Tourism Minister Allan Chastanet said last week that the nation
entered into a pact with American Eagle to let the carrier enter its
market to compete with LIAT and bring down the high fares, RJR 94 FM
states.
As reported in the Troubled Company Reporter-Latin America on
April 4, 2007, Standard & Poor's Ratings Services lowered its long-term
foreign and local currency sovereign credit ratings on Grenada to 'CCC+'
from 'B-' because of increasing fiscal pressures and a deteriorating
payment culture, demonstrated by intermittent (currently cured) arrears on
domestic commercial bank debt. S&P said the outlook was stable.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS Closes Booking in Dar es Salaam
-----------------------------------------------
Wilfred Edwin at The East African reports that British Airways has shut
down its booking in Dar es Salaam.
According to The East African’s Mr. Edwin, British Airways shifted to
online ticket bookings, in response to an increasing number of clients who
book flights on the airline’s Web site -- www.ba.com -- and decreasing
number of those who use the booking office.
The East African’s Mr. Edwin says that British Airways launched a call
centre to aid clients. The airline also set up an offline facility at
Citibank for customers who are unable to pay online.
British Airways Tanzania Commercial manager Saada Juma told The East
African’s Mr. Edwin that clients have been advised to use the airline’s
Web site or contact the local British Airways office through phone or
e-mail. Customers can also contact their local travel agent.
The East African’s Mr. Edwin notes that British Airways’ online booking
tool through its Web site has been simplified. It provides clients “with
a more personal means to control their travel plans.” It allows them to
buy and pay for their ticket online, and check in and select their seats.
The changes would guarantee that British Airways clients fully enjoy the
benefits of Terminal 5 when it is launched in March 2008, The East
African’s Mr. Edwin says, citing Ms. Juma. The focus on self-service
check-ins -- through a self-service kiosk or using the Web site -- will
provide clients with smoother, quicker and less complicated experience
that will ensure minimal queuing.
"This decision has been taken to give our customers more control, from
when they first make their booking to actually checking in 24 hours before
their flight departs. This can be done without making a trip to the
booking office," Ms. Juma commented to The East African’s Mr. Edwin.
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 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.
=============
J A M A I C A
=============
AIR JAMAICA: Confirms Reports on Discontinuing London Route
-----------------------------------------------------------
Air Jamaica’s management admitted in a press statement that it will
discontinue its service to London beginning Oct. 28.
As reported in the Troubled Company Reporter-Latin America on
May 25, 2007, Air Jamaica was reported to have sold its air space and
landing slot for its London route to Virgin Atlantic. Air Jamaica would
take its last daily flight out of London Heathrow International Airport on
Oct. 27, the reports said. Members of the Jamaican community were
reportedly informed of Air Jamaica's plan during a meeting at the Jamaican
High Commission in London on May 17. Virgin Atlantic recently started
flying from the United States into Montego Bay, and was believed to be the
leading bidder for the purchase of Air Jamaica's Kingston to London route.
Virgin Atlantic allegedly settled the deal with Air Jamaica over rival
British Airways.
Air Jamaica's decision to decrease its service is due to several factors,
including:
-- rising fuel bill,
-- competition on the Kingston to London route, and
-- huge financial losses,
-- the possibility of further competition from other
airlines.
Air Jamaica also said in a release that it will enter into a code share
agreement with Virgin Atlantic.
Participating airlines under a code sharing accord can present a common
flight number for several reasons, including:
-- connecting flights,
-- flights from both airlines that fly the same route,
and
-- perceived service to unserved markets.
Under a code sharing pact, the airline operates the flight but the tickets
for that flight are sold by another company or companies.
According to Radio Jamaica, passengers currently holding Air Jamaica
tickets for travel after Oct. 28 will be accommodated on Virgin Atlantic
at no additional cost.
Virgin Atlantic, under the agreement, will run four round-trips per week
from London Gatwick starting Oct. 30, Radio Jamaica states.
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.
AIR JAMAICA: Union Says No Job Losses from London Route Sale
------------------------------------------------------------
The National Workers Union representing workers in Air Jamaica told Radio
Jamaica that no worker dismissal are expected from the sale of the
airline’s London route to Virgin Atlantic.
As reported in the Troubled Company Reporter-Latin America on
May 25, 2007, Air Jamaica was reported to have sold its air space and
landing slot for its London route to Virgin Atlantic. Air Jamaica would
take its last daily flight out of London Heathrow International Airport on
Oct. 27, the reports said. Members of the Jamaican community were
reportedly informed of Air Jamaica's plan during a meeting at the Jamaican
High Commission in London on May 17. Virgin Atlantic recently started
flying from the United States into Montego Bay, and was believed to be the
leading bidder for the purchase of Air Jamaica's Kingston to London route.
Virgin Atlantic allegedly settled the deal with Air Jamaica over rival
British Airways.
Air Jamaica's decision to decrease its service is due to several factors,
including:
-- rising fuel bill,
-- competition on the Kingston to London route, and
-- huge financial losses,
-- the possibility of further competition from other
airlines.
National Workers Vice-President Granville Valentine told RJR News that Air
Jamaica's management said that the change won’t affect employees.
The sale will double Virgin Atlantic’s flights to Jamaica, Radio Jamaica
states.
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.
DIGICEL LTD: Telikom Feels Threatened by Firm's Market Entry
------------------------------------------------------------
The National Online reports that Telikom was worried that the entry of
foreign mobile phone firms like Digicel Ltd. into Papua New Guinea may
push Telikom out of business.
Telikom Chief Executive Officer Peter Loko said last week that “Digicel
would just be riding on the telecommunications backbone which the local
phone service has put up nationwide,” The National Online notes.
Mr. Loko told The National Online that Ethan group, the government’s
consultants, predicted that in a rush to bring in foreign mobile firms to
Papua New Guinea “and make profits from their investments, Telikom’s core
network and other services might be deprived of income that would keep
them sustainable and may even cease to function.”
Papua New Guinea would depend on at least two foreign mobile phone
companies, The National Online says, citing Mr. Loko. The CEO said, “If
one (company) saw profits in selling out to the other, then PNG [Papua New
Guinea] would end up with one foreign-owned mobile phone provider, making
it a new monopoly. This would mean that we, as a nation, have destroyed a
valuable national asset, Telikom, and privatised our communications
industry to foreigners for no profit at all.”
However, Telikom sees competition as a modern and business-like
development. The competition already invested on mobile phone
infrastructure in the nation, Mr. Loko told The National Online.
Mr. Loko said that while Telikom was re-investing profits into developing
service areas, Digicel would just be sending its profits to its parent
company outside the country, The National Online says.
“It can be expected that they (Digicel) intend to make profit on Telikom’s
investment. It can be expected that this profits will go overseas, year
after year … in contrast, all of Telikom’s profits are re-invested in
developing services in the country,” Mr. Loko commented to The National
Online.
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.
===========
M E X I C O
===========
ADVANCED MARKETING: Wants de Minimis Asset Sale Procedures OK'd
---------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates ask the United
States Bankruptcy Court for the District of Delaware to approve procedures
by which they may consummate certain de minimis asset sales. The Debtors
propose to utilize the De Minimis Sale Procedures to obtain more
expeditious and cost-effective review by interested parties of sales
involving smaller, less-valuable, non-core assets.
The Debtors maintain various assets including personal and
intangible property, which have not yet been sold but are now or
in the foreseeable future may become no longer necessary for the
continued operation of their businesses.
According to Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, the Debtors anticipate that during the pendency of
their Chapter 11 cases, they will attempt to sell a number of the assets
that are either unproductive or nonessential. The Debtors believe that
the sales will involve non-core assets that, in most cases, are of
relatively de minimis value compared to their total asset base. Although
the Debtors have been, and intend to continue, consulting with the
Official Committee of Unsecured Creditors on the terms of sales, and
whether they are ordinary course, the Debtors anticipate that many
contemplated asset sales may constitute transactions outside of the
ordinary course of their businesses requiring court approval pursuant to
Section 363(b)(1) of the Bankruptcy Code.
However, in many instances the necessity of obtaining individual
court approval with respect to de minimis asset sales would be
administratively burdensome to the Court and costly for the
Debtors' estates, Mr. Collins says.
According to Mr. Collins, the De Minimis Sale Procedures will
apply only to the sale of assets involving, in each case, the
transfer of US$100,000 or less in total consideration, as measured by the
amount of cash and other consideration being received by the Debtors on
account of the assets being sold. Under the De Minimis Sale Procedures,
the Debtors will be (i) permitted to sell assets that are encumbered by
liens, encumbrances or other interests only if those liens and other
interests are capable of monetary satisfaction or the holders of those
liens and interests consent to the sale, and (ii) will be permitted to
sell assets co-owned by a Debtor and a third party pursuant to the De
Minimis Sale Procedures only to the extent that the sale does not violate
Section 363(h) of the Bankruptcy Code.
After the Debtors enter into a contract or contracts
contemplating a sale under the De Minimis Sale Procedures, they
will serve a notice of the proposed De Minimis Sale by facsimile,
overnight delivery or hand delivery on:
-- the Office of the U.S. Trustee for the District of
Delaware;
-- counsel to the Creditors Committee; and
-- all known parties holding or asserting liens on or other
interests in the assets that are the subject of the
proposed De Minimis Sale and their respective counsel, if
known.
Interested Parties will have 10 calendar days from service of the Sale
Notice to file and serve any objections to a De Minimis
Sale. The Debtor will also file the Sale Notice with the Court.
The relevant Debtor or Debtors may consummate a De Minimis Sale
before the expiration of the applicable Notice Period if the
Debtor or Debtors obtain each Interested Party's written consent
to the De Minimis Sale.
On or before the 15th day of every calendar month, the Debtors
will file with the Court, and serve on all parties entitled to
notice in their bankruptcy cases, a report summarizing any De
Minimis Sales that were consummated pursuant to the De Minimis
Sales Procedures during the immediately preceding calendar month.
All buyers will take assets sold by the Debtors pursuant to the
De Minimis Sale Procedures "as is" and "where is," without any
representations or warranties from the Debtors as to the quality
or fitness of the assets for either their intended or any
particular purpose. Buyers will, however, take title to the
assets free and clear of liens, claims, encumbrances and other
interests. All the liens, claims, encumbrances and other
interests will attach to the proceeds of the sale.
De Minimis Sale to Baker & Taylor
The Debtors are mindful of their duties to maximize the value of
the estates and are working to obtain the highest consideration
for all their assets, but are concerned that unnecessary delay in testing
the results of their efforts would in fact decrease the net income to the
estate, Mr. Collins tells the Hon. Judge Christopher S. Sontchi.
As a specific example, Mr. Collins says, the Debtors have no need of an
Accupack-sort system located on the mezzanine level of the former AMS
facility in Woodland, California, but under the terms of their asset
purchase agreement with Baker & Taylor, Inc., the Debtors are obligated to
remove the system, thereby incurring rent for the space the system
occupies until the removal is completed.
While Baker & Taylor originally determined not to purchase the
system, it has since considered and wishes to acquire the system
for US$15,000, coupled with a reduction in rent allocated to the
Debtors for the space occupied by the sorter, Mr. Collins
explains.
In accordance with the proposed De Minimis Sale Procedures, the
Debtors seek the Court's blessing to sell the Accupack-sort
system to Baker & Taylor.
Mr. Collins says the Debtors have solicited and entertained other offers
for the system, but when the additional consideration to the estate in the
form of reduced rent is considered, the offer from Baker & Taylor proved
superior. The total benefit to the estate from the Baker & Taylor offer
is approximately US$45,000, while the highest offer from any other party
was only US$35,000.
Mr. Collins asserts that because there is a time element to be
considered in Baker & Taylor's purchase offer in the form of
avoided rent, the benefit to the estates diminishes the longer it takes to
consummate the sale, and the costs of running a formal auction or filing a
separate formal request could also
substantially diminish the net benefit to the estate.
About Advanced Marketing
Based in San Diego, California, Advanced Marketing Services, Inc. --
http://www.advmkt.com/-- provides customized merchandising, wholesaling,
distribution and publishing services, currently primarily to the book
industry. The company has operations in the U.S., Mexico, the United
Kingdom and Australia and employs approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group Incorporated and
Publishers Group West Incorporated filed for chapter 11 protection on Dec.
29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne
S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq.,
O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I.
Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at
Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel.
Lowenstein Sandler PC represents the Official Committee of
Unsecured Creditors. When the Debtors filed for protection from
their creditors, they listed estimated assets and debts of more
than US$100 million.
The Debtors' exclusive period to file a plan expires on
Aug. 10, 2007. (Advanced Marketing Bankruptcy News, Issue
No. 12; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/
or 215/945-7000).
BAUSCH & LOMB: Advanced Medical Confirms Interest in Acquisition
----------------------------------------------------------------
Advanced Medical Optics, Inc., a global leader in ophthalmic surgical
devices and eye care products, has issued a statement in response to media
reports regarding the company's interest in entering Bausch & Lomb's "go
shop" process.
"We believe it is only logical to explore this opportunity given the
highly complementary nature of our two businesses," Advanced Medical said
in the statement. "Consideration of this potential transaction is
consistent with our existing strategy to provide a full range of products
that address vision care needs of people of all ages. We believe that the
current transaction with Warburg Pincus undervalues Bausch & Lomb, and we
plan to enter the go-shop process with the intention of exploring a
superior offer for the company. Of course, we will only proceed with a
transaction if after conducting thorough due diligence, our Board of
Directors determines it is in the best interest of AMO stockholders."
Advanced Medical warns, however, that there can be no assurance that the
exploration of this opportunity will result in any transaction. It does
not anticipate any further public comment on this issue unless and until
it deems further public comment to be necessary and appropriate.
About Advanced Medical Optics
Santa Ana, California-based Advanced Medical Optics, Inc. --
http://www.amo-inc.com/-- develops advanced, life-improving vision
technologies for people of all ages. Products in the cataract/implant line
include intraocular lenses, phacoemulsification systems, viscoelastics,
and related products used in ocular surgery. AMO is based in Santa Ana,
California, and employs approximately 4,200 worldwide. The company has
operations in 24 countries and markets products in approximately 60
countries.
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.
* * *
On May 18, 2007, Moody's Investors Service stated that it will continue
its review of Bausch & Lomb Incorporated's ratings for possible downgrade,
including the company's Ba1 Corporate Family rating and Ba1 Probability of
Default rating, after the company entered into a definitive merger
agreement with affiliates of Warburg Pincus.
Fitch maintains its Negative Rating Watch on the company following the
announcement, and, as currently contemplated, the transaction would result
in an Issuer Default Rating of no higher than 'BB-'. Fitch now has an IDR
of 'BBB-' on the company and first placed it on Negative Watch on April
12, 2006. The Negative Watch also reflects the fact that the company has
yet to file its first-quarter 2007 10Q.
Meanwhile, Standard & Poor's Ratings Services lowered its ratings on
Bausch & Lomb Inc. and placed them on CreditWatch with negative
implications. The corporate credit rating was lowered to 'BB+' from
'BBB'.
BEST MANUFACTURING: Section 341(a) Meeting Scheduled for June 14
----------------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of Best Manufacturing
Group LLC and its debtor-affiliates' creditors on June 14, 2007, 9:00
a.m., at Suite 1401, One Newark Center, in Newark, New Jersey.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Headquartered in Jersey City, New Jersey, Best Manufacturing
Group LLC -- http://www.bestmfg.com/-- and its subsidiaries
manufacture and distribute textiles, career apparel and other
products for the hospitality, healthcare and textile rental
industries with satellite operations located across the United
States, Canada, Mexico and Asia.
The company and four of its subsidiaries filed for chapter 11 protection
on Aug. 9, 2006 (Bankr. D. N.J. Case No. 06-17415). The case was
converted to Chapter 7 on May 3, 2007.
Stacey L. Meisel was appointed as Chapter 7 Trustee on
May 4, 2007. Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman &
Leonard, P.A., represents the Debtors. Scott L. Hazan, Esq., at
Otterbourg, Steindler, Houston & Rosen, and Brian L. Baker, Esq., and
Stephen B. Ravin, Esq., at Ravin Greenberg PC, represent the Official
Committee of Unsecured Creditors. When the Debtors filed for protection
from their creditors, they estimated assets and debts of more than US$100
million.
BEST MANUFACTURING: Trustee Selects Becker Meisel as Counsel
------------------------------------------------------------
Stacey L. Meisel, Esq., the Chapter 7 Trustee for Best Manufacturing Group
LLC and its debtor-affiliates' cases, seeks permission from the U.S.
Bankruptcy Court for District of New Jersey to employ Becker Meisel LLC as
her counsel.
Becker Meisel will:
a) provide legal assistance in reviewing liens, claims,
matters involving the use and sale of property,
investigation into assets and liabilities of the Debtors;
and
b) assist the Trustee in the administration of the estate's
assets.
Ms. Meisel, a partner at Becker Meisel LLC, tells the court of the firm's
professional hourly rates:
Designation Hourly Rate
----------- -----------
Partners US$250 - US$450
Associates US$160 - US$250
Paralegals and law clerks US$ 75 - US$125
Ms. Meisel assures the Court that the firm does not hold any
interest adverse to the Debtors' estate and is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
Ms. Meisel can be reached at:
Becker Meisel LLC
No. 354 Eisenhower Parkway,
Livingston, NJ 07039
Tel: (973) 422-1100
Headquartered in Jersey City, New Jersey, Best Manufacturing
Group LLC -- http://www.bestmfg.com/-- and its subsidiaries
manufacture and distribute textiles, career apparel and other
products for the hospitality, healthcare and textile rental
industries with satellite operations located across the United
States, Canada, Mexico and Asia.
The company and four of its subsidiaries filed for chapter 11 protection
on Aug. 9, 2006 (Bankr. D. N.J. Case No. 06-17415). The case was
converted to Chapter 7 on May 3, 2007.
Stacey L. Meisel was appointed as Chapter 7 Trustee on
May 4, 2007. Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman &
Leonard, P.A., represents the Debtors. Scott L. Hazan, Esq., at
Otterbourg, Steindler, Houston & Rosen, and Brian L. Baker, Esq., and
Stephen B. Ravin, Esq., at Ravin Greenberg PC, represent the Official
Committee of Unsecured Creditors. When the Debtors filed for protection
from their creditors, they estimated assets and debts of more than US$100
million.
ENESCO GROUP: Wants Baker & McKenzie as Hong Kong Tax Counsel
-------------------------------------------------------------
Enesco Group Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court
for the District of Illinois, Eastern Division, to employ Baker & McKenzie
as their special tax counsel, effective as of March 16, 2007.
The Debtors also want the Court to approve a compensation arrangement with
the firm. The Debtors want Baker & McKenzie to handle their Hong Kong tax
appeals.
Hong Kong Tax Appeal
On March 31, 2005, the Hong Kong Inland Revenue Department issued six
additional profit tax assessments to Enesco International (HK) Limited for
the years of assessment 1998/1999 to 2003/2004 for HKD59,144,430.
On April 27, 2005, Enesco-HK filed a notice of objection to dispute the
additional tax assessments and applied for a holdover of the tax assessed
pending the resolution of the objection. The Hong Kong IRD granted an
unconditional holdover of HKD29,572,215, and Enesco-HK purchased tax
reserve certificates for the same amount.
On Jan. 19, 2007, the Hong Kong IRD issued a notice of payment of
provisional profit tax for the year of assessment 2006/2007 amounting to
HKD4,638,585. The tax was not paid by the March 5 due date, so the Hong
Kong IRD issued a late payment surcharge notice of HKD231,929 on March 21,
2007. The total amount due in relation to the year of assessment
2006/2007 is HKD4,870,514.
On March 29, 2007, the Hong Kong IRD issued an additional profit tax
assessment to Enesco-HK for Enesco International Ltd. for the year of
assessment 2000/2001 amounting to HKD82,100.
Enesco-HK objected to the Commissioner of Inland Revenue in relation to
this assessment on April 27, 2007.
If Enesco-HK prevails on the tax dispute in relation to the six additional
profit tax assessment for the years of assessments 1998/1999 to 2003/2004,
Enesco-HK may be entitled to a refund of the HKD29,582,215 tax reserve
certificates, plus interest, Allen J. Guon, Esq., at Shaw Gussis Fishman
Glantz Wolfson & Towbin LLC in Chicago told the Court.
The Hong Kong IRD, however, may order the tax reserve certificates to be
applied to settle other outstanding tax liabilities. In the event that
Enesco-HK does not prevail in the tax dispute in relation to the six
additional profit tax assessments, Enesco-HK may be required to pay an
additional HKD29,572,215, plus penalties to the Hong Kong IRD.
Scope of Work
Before filing for bankruptcy, Baker & McKenzie represented the Debtors in
connection with the Hong Kong Tax Appeal. In connection with the Debtors'
bankruptcy cases, Baker & McKenzie will:
(a) give the Debtors legal advice with respect to their
rights, powers and duties in connection with the Tax
Appeal and litigation related to the Tax Appeal
proceedings;
(b) prepare applications, motions, complaints, orders and
other legal documents necessary in connection with the
appropriate adminstration of the Tax Appeal;
(c) participate on behalf of the Debtors in matters before
the Inland Revenue Board of Review and the courts in
Hong Kong relating to the Tax Appeal; and
(d) perform any and all other legal services on behalf of the
Debtors, which may be required to aid in the proper
administration of the pending Tax Appeal proceedings.
Baker & McKenzie disclosed that it received a US$25,000 retainer. The
firm's hourly rates ranged from US$620 to US$840 for partners and US$260
to US$645 for associates.
To the best of the Debtors' knowledge, Baker & McKenzie neither holds nor
represents any adverse interest in connection with the matter in which it
is to be employed.
Headquartered in Itasca, Ill., Enesco Group, Inc. ---
http://www.enesco.com/-- produces giftware, and home and
garden decor products. Enesco's product lines include some of
the world's most recognizable brands, including Disney,
Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane,
Border Fine Arts, among others.
Enesco distributes products to a wide array of specialty gift
retailers, home decor boutiques and direct mail retailers, as
well as mass-market chains. The company serves markets
operating in Europe, Australia, Mexico, Asia and the Pacific
Rim. With subsidiaries in Europe, Canada and a business unit in
Hong Kong, Enesco's international distribution network leads the
industry.
Enesco Group and its two affiliates, Enesco International Ltd.
and Gregg Manufacturing, Inc., filed for chapter 11 protection
on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565).
Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps,
Slate, Meagher & Flom LLP, represent the Debtors. Adelman &
Gettleman, Ltd., and Greenberg Traurig, LLP, represent the
Official Committee of Unsecured Creditors. In its schedules
filed with the Court, Enesco Group disclosed total assets of
US$61,879,068 and total liabilities of US$231,510,180.
HERBALIFE LTD: Names CEO Michael Johnson as Board's Chairman
------------------------------------------------------------
Herbalife Ltd. has named Chief Executive Officer Michael O. Johnson as
chairman of the company’s board of directors.
Since taking the helm in April 2003, Mr. Johnson has developed a close
working relationship of mutual respect with the company's independent
distributors, a factor considered by the nominating committee.
The board also created the post of director-in-charge of executive
sessions, which will be held on a rotating, annual basis by an independent
director, to facilitate executive meetings of the board’s independent
directors. Richard Bermingham has been appointed to this role for the
next 12 months.
The board accepted the resignations of Chairman Peter Castleman and member
David Halbert. Messrs. Castleman and Halbert resigned to focus on their
other business activities.
Since Mr. Johnson took the company public in December 2004, its market cap
has nearly tripled.
Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/--
Herbalife, now in its 26th year, conducts business in 62
countries. The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China as well as major distribution centers in Venray,
Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn.,
Guadalajara, Mexico, and El Salvador. The company also has
operations in Venezuela.
* * *
As reported in the Troubled Company Reporter on April 5, 2007,
Standard & Poor's Ratings Services said that its 'BB+' corporate
credit rating on Los Angeles-based Herbalife Ltd. remains on
CreditWatch with negative implications following the company's
announcement that the company's board of directors has rejected a bid to
be acquired by Whitney V L.P. The board indicated that
although it views Whitney's bid as too low, it would consider an
improved offer.
===========
P A N A M A
===========
* PANAMA: Will Auction Two Mobile Concession Licenses in October
----------------------------------------------------------------
Victor Urrutia, an official at the Panamanian public services regulator
Asep, told reporters that the agency will launch an auction for two
30-year mobile concession licenses in October and award them in 2008.
Business News Americas relates that the regulator seeks to boost mobile
penetration to 70% from the current 50%.
According to BNamericas, bids for the concessions would be over US$30
million.
The report says that the new licenses could attract some of the regional
operators with no operations in Panama, particularly Mexico's America
Movil and the Caribbean's Digicel.
Panama currently has two mobile operators -- Movistar, of Spain's
Telefonica, and UK's Cable & Wireless, the same report says.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 8, 2007, Standard & Poor's Ratings Services revised its
outlook on its 'BB' long-term sovereign credit rating on the
Republic of Panama to positive from stable and affirmed its 'B'
short-term foreign currency sovereign credit rating on the
republic.
=======
P E R U
=======
* PERU: Calling for Bids to Build & Run Transmission Line
---------------------------------------------------------
A spokesperson ProInversion, the Peruvian state agency for promoting
private investment, told Business News Americas that the agency will call
for bids to construct and operate the 220-kilovolts Machupicchu-Cotaruse
transmission line in July.
According to BNamericas, the spokesperson said that the energy and mines
ministry is amending concession details.
BNamericas notes that preliminary information says that it would take
about 18 months to construct the 200-kilometer line, while the concession
will run 30 years.
The report says that the government expected US$60-million investment on
the project.
By transporting electricity from the 85-megawatt Machupicchu and planned
109-megawatt Santa Teresa hydro plants, the transmission line will boost
power supply in southern Peru, BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Standard & Poor's Ratings Services assigned its
'BB+' foreign currency credit rating to the Republic of Peru's
(BB+/Stable/B foreign, BBB-/Stable/A-3 local currency sovereign
credit ratings) US$1.24 billion global bond due in 2037 issued
as part of a new liability management operation.
* PERU: Urges Algeria to Raise Investments in North Africa
----------------------------------------------------------
Prensa Latina reports that Peruvian Deputy Foreign Minister Gonzalo
Gutierrez Reinel encouraged boosting investments in the Andean nation and
the North African country.
The general secretary of the Peruvian Foreign Affairs tries to promote in
the larger exponent of the activity is the 10-percent participation of the
state Algerian company Sonatrach in the Camisea project, which exploit gas
fields in the southeastern zone of Peru, in production since last three
years, reports say.
After a discussion with Algeria's Foreign Minister Moahemed Bedjaoui,
where both officials reviewed bilateral diplomatic relations, Mr. Reinel
shared his satisfaction for the current state of those links and exhorted
to reinforce them in the political, diplomatic and economic spheres.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Standard & Poor's Ratings Services assigned its
'BB+' foreign currency credit rating to the Republic of Peru's
(BB+/Stable/B foreign, BBB-/Stable/A-3 local currency sovereign
credit ratings) US$1.24 billion global bond due in 2037 issued
as part of a new liability management operation.
=====================
P U E R T O R I C O
=====================
GLOBAL HOME: Wants Exclusive Plan Filing Extended Until August 3
----------------------------------------------------------------
Global Home Products LLC and it debtor-affiliates ask the United
States Bankruptcy Court for the District of Delaware to further extend
their exclusive periods to:
a. file a Chapter 11 plan of reorganization until
Aug. 3, 2007; and
b. solicit acceptances of that plan through and including
Oct. 4, 2007.
The Debtors need more time to negotiate with its creditors an acceptable
plan and to prepare adequate financial information concerning the
ramifications of any proposed plan.
The Debtors' request for extension does not seek to pressure it creditors.
Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
April 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub LLP, represent the Debtors. Bruce Buechler,
Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq., at Pepper
Hamilton LLP represent the Official Committee of Unsecured Creditors.
Huron Consulting Group LLC gives financial advice to the Committee. When
the company filed for protection from their creditors, they estimated
assets between US$50 million and US$100 million and estimated debts of
more than US$100 million.
=================================
T R I N I D A D & T O B A G O
=================================
DIGICEL LTD: Says Cell Tower Will Help Increase Mobile Coverage
---------------------------------------------------------------
Digicel Ltd. Told The Trinidad & Tobago Express that its cell tower on top
of the Aranjuez Educational Secondary School would help improve mobile
coverage for residents to guarantee that they are getting high quality
network coverage from the firm.
The Express notes that there was no official word on whether Digicel has
secured authorization from the Telecommunications Authority of Trinidad
and Tobago.
Sources commented to The Express that it wasn’t necessary to seek the
approval of the Ministry of Education because the school is a
privately-owned facility.
Digicel said in a statement that the tower was constructed on May 26.
The Express says that Digicel officials refrained from stating whether the
Ministry of Planning and Development had been informed on the installation
of the tower.
Digicel said in a statement, "Independent scientific review bodies around
the world have consistently concluded that the weight of scientific
evidence to date suggests that exposure to radio-waves from cell sites
operating within international guidelines do not cause adverse health
effects."
Tests carried out by TATT indicated that Digicel sites runs many times
below the safety requirements, The Express 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.
HILTON HOTELS: Matthew J. Hart to Assume CEO Post in 2008
---------------------------------------------------------
Hilton Hotels Corporation's board of director's disclosed the assumption
of Matthew J. Hart, the company's president and chief operating officer,
to the role of president and chief executive officer effective Jan. 1,
2008. Mr. Hart, who was also elected to the company's board in January
2007, will replace Stephen F. Bollenbach as company CEO.
Mr. Bollenbach will retire as CEO on Dec. 31, 2007, but continue as
co-chairman of the board and serve as an employee consultant.
These executives continue reporting directly to Mr. Hart:
* Ian R. Carter, executive vice president and chief executive
officer, Hilton International;
* Thomas L. Keltner, executive vice president and chief
executive officer, Americas and Global Brands;
* Antoine Dagot, executive vice president and president/chief
executive officer, Hilton Grand Vacations Company;
* Tim Harvey, executive vice president, global distribution
services and chief information officer; and
* Molly McKenzie-Swarts, executive vice president, human
resources, diversity and administration.
In addition:
* Madeleine A. Kleiner, executive vice president, general
counsel and corporate secretary; and
* Robert M. La Forgia, executive vice president and chief
financial officer begin reporting to Mr. Hart effective
immediately.
Mr. Hart will become only the fourth chief executive officer in the
company's nearly 90-year history, following Conrad N. Hilton, Barron
Hilton and Mr. Bollenbach. Since joining Hilton in 1996, he has been
instrumental in completing several strategic transactions, including the
acquisitions of Bally's Entertainment, Promus Hotel Company and Hilton
International; creating and implementing the company's financial strategy;
overseeing the acquisition of numerous hotel properties; and introducing
several new product, service and marketing initiatives, including the
launch of the company's new luxury brand, The Waldorf Astoria Collection.
"With his nearly 30 years of experience in the lodging industry, and the
breadth of his responsibilities here at Hilton since 1996, including
driving our financial and operational activities, Matt is uniquely suited
to lead our company into the future and strengthen our position as the
premier global hotel company," said Mr. Bollenbach. "This is the next
logical step in Matt's career and one that he is perfectly equipped to
take on. The Board of Directors and I are confident that Matt and his
team will take Hilton to new heights in the coming years."
Mr. Hart said: "I am deeply honored to follow as CEO such respected
business leaders and pioneers as Barron and Steve, and am grateful for the
confidence the Board has shown in me. Our company's worldwide prospects
and opportunities have never been greater, and with the industry's best
management team and 100,000 talented and dedicated team members around the
world, we look forward to continue delivering great results to our
customers, to our owners and to our shareholders."
One of the most visible and respected executives in the lodging industry,
Mr. Hart is highly regarded for his participation in and leadership of
numerous industry organizations and events. He is a featured annual
panelist and speaker at the prestigious NYU Lodging Conference and was the
keynote speaker at the 2007 International PowWow, the travel industry's
premier business exhibition. In addition, he is active in the American
Hotel & Lodging Association's Industry Real Estate Financing Advisory
Council, receiving the organization's Lifetime Achievement Award in 2003.
After joining Hilton in 1996 as executive vice president and chief
financial officer, Mr. Hart was named president and chief operating
officer in 2004. Prior to joining Hilton, he was senior vice president
and treasurer for the Walt Disney Company, before which he served as
executive vice president and chief financial officer for Host Marriott
Corporation. He also held various financial positions with Marriott
Corporation, which he joined in 1981 as manager, project finance. Mr.
Hart also was a lending officer with Bankers Trust Company in New York.
In addition to serving on Hilton's board of directors, Mr. Hart is a
director of US Airways Group, Inc., Kilroy Realty Corporation and the
non-profit Heal the Bay. He graduated cum laude from Vanderbilt
University in 1974 and received his MBA from Columbia University in 1976.
Mr. Hart lives in Brentwood, California with his wife and three children.
About Hilton Hotels
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries, engages in
the ownership, management, and development of hotels, resorts, and
timeshare properties, as well as in the franchising of lodging properties
in the United States and internationally, including Australia, Austria,
Barbados, Finland, India,
Indonesia, Trinidad and Tobago, Philippines and Vietnam.
* * *
In March 2007, Standard & Poor's Ratings Services raised its corporate
credit and senior unsecured ratings on Hilton Hotels Corp. to 'BB+' from
'BB' and removed the ratings from CreditWatch where they were placed with
positive implications on Jan. 31. S&P said the outlook is stable.
In February 2007, Moody's Investors Service upgraded Hilton
Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a
reduction in leverage from a faster than expected pace of asset sales and
strong earnings during 2006. Adjusted debt to EBITDAR has improved to
around 5.0x from 6.0x in January
2006.
=============
U R U G U A Y
=============
HIPOTECARIO DEL URUGUAY: Earns UYU1.78 Billion in First Quarter
---------------------------------------------------------------
Banco Hipotecario del Uruguay’s profit increased 41.2% to UYU1.78 billion
in the first quarter 2007, compared to the first quarter 2006, the
Uruguayan central bank said on its Web site.
Business News Americas relates that Banco Hipotecario’s net interest
income rose 23.0% to UYU1.06 billion in the first quarter 2007, compared
to the same quarter in 2006. Its fee income grew 12.0% to UYU8 million.
According to BNamericas, the Uruguayan government sent in December 2006 a
bill to congress that includes spending up to US$250 million to capitalize
Banco Hipotecario as part of a restructuring plan that will let the bank
return to lending in the second quarter 2007.
The report says that Banco Hipotecario's mortgage loan operations have
been shut down since 2002, “when the Argentine meltdown caused a severe
financial crisis in Uruguay that led to massive deposit withdrawals and
several banks going bankrupt.”
Banco Hipotecario can grant mortgage loans to fund houses already
constructed. These loans were virtually flat at UYU17.4 billion in March
2007, compared to March 2006, according to BNamericas.
Banco Hipotecario’s past-due loan ratio deteriorated to 82.7% in March
2007 from 69.4% in March 2006. It had UYU33.7 billion in assets and
UYU31.3bn in deposits, BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2006, Moody's Investors Service assigned these ratings
on Banco Hipotecario del Uruguay:
-- Foreign currency deposit rating: B2 from Caa1,
stable outlook
-- National scale rating for foreign currency deposits:
A3.uy from Ba2.uy, with a stable outlook
-- National scale foreign currency debt rating: A2.uy
from Baa2.uy
=================
V E N E Z U E L A
=================
* VENEZUELA: 99 of Cantv Managerial Staff Won’t be Changed
----------------------------------------------------------
Venezuelan fixed line operator Cantv, which has already been nationalized,
said in a statement that 99 of its 122 managerial staff will remain in
their positions.
As reported in the Troubled Company Reporter-Latin America on
May 17, 2007, the Venezuelan government has purchased a controlling stake
in Cantv, for US$1.3 billion. The government increased its stake in Cantv
to 86.2% from 6.6% after purchasing the shares through tender offer on the
stock exchanges in Caracas and New York. Cantv said in a statement that
the New York Stock Exchange was suspending trading with immediate effect
of the firm's American Depositary Shares, each representing seven class D
shares, due to the company's nationalization. NYSE said the firm's ADSs
were no longer suitable for continued listing due to the current
circumstances after the completion of the tender offer by the Venezuelan
government. Cantv also chose on May 21 a new board during an
extraordinary shareholders meeting, effectively returning control of the
company to the state. Socorro Hernandez heads the board for the 2007-08
period.
According to Cantv’s statement, the company has formed two new departments.
The new public institutions department will be in charge of improving the
Internet technology transformation of the state while the transition to
socialism department will be responsible for “promoting community
participation and spreading universal access,” BNamericas states.
* * *
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 ratings' outlook remains
stable.
* VENEZUELA: Ministry Reaching Price Pact with Ternium This Week
----------------------------------------------------------------
The Venezuelan basic industries and mining ministry, Mibam, expects to
reach a price accord with steelmaker Ternium Sidor this week, Business
News Americas reports.
Mibam Minister Jose Khan said in a statement, "What we want is for the
price of Sidor products to be lower than prices on the foreign market,
which hasn't been possible until now."
Minister Khan told BNamericas the Techint group will decide on the
nationalization of Sidor and will depend on how the firm responds to the
government's concerns.
According to Mibam’s statement, “concerns touch on the need to set up a
preferential cost that is tailored to the reality of the market and allows
for the creation of national plans with a social nature.”
If no accord is reached, other measures will be taken. The
nationalization hasn’t been ruled out, BNamericas says, citing Minister
Khan. Sidor managers know that Venezuela is endorsing a new scheme in
terms of industrialization and state firms, which President Hugo Chavez
“has oriented around socialist companies, indicating that there must be a
centralized plan.”
Sidor was privatized in 1997. It is the largest steelmaker in Venezuela,
with an average production of 4.2 million tons yearly of liquid steel.
Ternium owns 59.73% of its shares, the Venezuelan state controls 20.36%
through state heavy holding firm CVG and workers hold 19.91%, BNamericas
states.
* * *
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.
* VENEZUELA: Working with Cuba to Launch Oil Plant
--------------------------------------------------
Venezuela is working with Cuba to launch an oil plant, Armando Saez Chavez
at Periodico 26 reports.
Ali Rodriquez Araque, the Venezuelan ambassador to Cuba, told Periodico
26’s Mr. Chavez, “We are very pleased with the joint effort between Cuba
and my country [Venezuela] to finish building the oil refinery [in
Cienfuegos]. We believe its opening in December will be a hard blow to
the blockade.”
The PDV-CUPET joint venture firm of Cuba and Venezuela is part of a series
of energy accords signed between the two nations. The project’s is on
schedule. The first operational phase should be underway by year-end. It
would process about 65,000 barrels of oil daily, Period 26’s Mr. Chavez
notes, citing Mr. Araque.
Mr. Araque told Periodico 26’s Mr. Chavez that the key areas of the oil
sector that are being worked on include:
-- completion of the Cienfuegos oil refinery,
-- a project to boost storage capacity in the Matanzas
supertanker dock, and
-- reactivation of the oil pipeline between Cienfuegos
and Matanzas.
Periodico 26’s Mr. Chavez relates that the works at the Camilo Cienfuegos
Oil Refinery include:
-- replacing the instrumentation system with updated
technology,
-- modernizing storage tanks facilities, and
-- replacing pipes, seals and bearings.
According to Periodico 26’s Mr. Chavez, oil tanker wharfs are also being
upgraded while environmental protection equipment is being set up.
Periodico 26’s Mr. Chavez states that the Cienfuegos oil plant will produce:
-- liquefied gas,
-- gas,
-- jet aircraft fuel,
-- diesel, and
-- fuel oil.
* * *
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.
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