/raid1/www/Hosts/bankrupt/TCRLA_Public/070622.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
Friday, June 22, 2007, Vol. 8, Issue 123
Headlines
A R G E N T I N A
AGRINTSA SA: Proofs of Claim Verification Deadline Is Aug. 10
ALITALIA SPA: Aeroflot Sees Stake's Asking Price as Too High
BALLY TECHNOLOGIES: Incurs US$2.7 Million Quarter Net Loss
CLAXSON INTERACTIVE: Earns US$3.5 Million in Qtr. Ended March 31
INDUSTRIAS METALURGICAS: Individual Reports Due on Sept. 20
IRAMA SA: Proofs of Claim Verification Is Until July 6
RACCA CEREALES: Proofs of Claim Verification Ends on Aug. 15
RED HAT: UBS Maintains Neutral Rating on Company's Shares
SUPERTODO ENSENADA: Proofs of Claim Verification Ends on Aug. 6
VADRA SRL: Trustee Verifies Proofs of Claim Until Aug. 6
WISPER SRL: Proofs of Claim Verification Deadline Is Aug. 1
B A H A M A S
ISLE OF CAPRI: Moody's Affirms B1 Corporate Family Rating
ISLE OF CAPRI: Moody's Downgrades Restricted Group Ratings
B E R M U D A
CITIC RESOURCES: Plans to Sell Shares to Temasek for HK$450.5MM
INTELSAT LTD: Moody's Reviews Ratings for Possible Downgrade
TELEGLOBE: Will Hold Final General Meeting on June 27
VSNL TELECOMMUNICATIONS: Final General Meeting Is on June 28
WHITEROCK LTD: Schedules Final General Meeting on June 29
B O L I V I A
* BOLIVIA: Purchasing Liquefied Petroleum from Venezuela
* BOLIVIA: Sends Armed Forces to Posokoni to Prevent Tin Theft
B R A Z I L
ACTUANT CORP: Reports US$29.6 Mil. Net Income in Third Quarter
BANCO NACIONAL: Okays BRL35.6-Mil. Loan for Biodiesel Production
BANCO NACIONAL: Approves BRL1.48B Financing for CSA Steel Mill
CA INC: Secures US$500 Million Accelerated Share Repurchase Pact
COMPANHIA PARANAENSE: Regulator Orders Firm to Reduce Tariffs
DUERR AG: ATON GmbH Acquires 10.1% Equity Interest
DYNEA CANADA: High Leverage Prompts S&P’s B Corp. Credit Rating
FRESENIUS MEDICAL: Plans US$500 Million Senior Notes Offering
JAPAN AIRLINES: To Acquire 10 Jets from Embraer
NOMURA HOLDINGS: Provides US$230-Mil. Loan to CrimsonPower
NOMURA HOLDINGS: To Announce First Quarter Results on July 25
PETROLEO BRASILEIRO: Breaks Production Record in Espirito Santo
PETROLEO BRASILEIRO: Negotiating Oil Rig Contract with Keppel
PETROLEO BRASILEIRO: Eyes Possible Biz Opportunities in Qatar
UNITED AIR: Moody's Rates Class C Certificates at B1
UNITED AIR: S&P Puts Preliminary B Rating on Class C Certs.
* BRAZIL: Holding Off Bank of the South Launching
* BRAZIL: Dominican Republic Wants Trade Pact with Nation
C A Y M A N I S L A N D S
ALLCOURT INVESTMENTS: Final Shareholders Meeting Is on June 28
BANCAJA INTERNATIONAL: Proofs of Claim Must be Filed by June 28
CABLE & WIRELESS: Deploying SMS Platform in Panama & Caribbean
CEMENT HOLDINGS: Proofs of Claim Filing Is Until June 28
CORUS CAPITAL: Proofs of Claim Filing Ends on June 28
FCT INVESTMENTS: Proofs of Claim Filing Ends on June 28
FERN INVESTMENTS: Proofs of Claim Filing Is Until June 28
FIRST DOMINION: Proofs of Claim Filing Deadline Is June 28
FRESH VIEW: Will Hold Final Shareholders Meeting on June 28
FRESH VIEW: Proofs of Claim Filing Is Until June 28
GREAT PRESTIGE: Proofs of Claim Filing Deadline Is June 28
INNFIELD INVESTMENTS: Proofs of Claim Filing Is Until June 28
LINDIAN HOLDINGS: Sets Final Shareholders Meeting for June 28
LINDIAN HOLDINGS: Proofs of Claim Filing Deadline Is June 28
NEWOAK LTD: Proofs of Claim Filing Ends on June 28
OAKHAVEN INT’L: Proofs of Claim Filing Ends on June 28
PERU PRIVATISATION: Proofs of Claim Must be Filed by June 28
PESCADORA LTD: Proofs of Claim Filing Ends on June 28
SHANDON LTD: Will Hold Final Shareholders Meeting on June 28
STRATEGEMA GLOBAL: Sets Final Shareholders Meeting for June 28
C H I L E
LIBERTY GLOBAL: Belgian Cable Opts to Buy Shares in Telenet
C O L O M B I A
NOVELL INC: Unveils Real-Time Linux Enhancements & Partnerships
SOLUTIA INC: Wants Equistar & Millenium Settlements Approved
SOLUTIA INC: Recorded June 1 to June 15 Claim Transfers
* COLOMBIA: Setting Up Oil Price Stabilization Fund
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Keen on Strategic Trade Pact with Brazil
E C U A D O R
GENERAL MOTORS: Plans to Sell 100,000 Chevrolets in Germany
GENERAL MOTORS: Prepares Fuel Cell Technology for Future Output
E L S A L V A D O R
* EL SALVADOR: State Firm Concludes Plant Modernization Program
G U A T E M A L A
GLOBAL CROSSING: Picks Alcatel-Lucent for Maintenance Services
H A I T I
TRILOGY INT'L: Moody's Affirms B2 Corporate Family Rating
J A M A I C A
AIR JAMAICA: Will Enter Into Closer Ties with Regional Airlines
DYOLL INSURANCE: Policyholders To Vote on Payout Scheme
M E X I C O
CABLEMAS SA: Partners with Cedar to Use SAFARI Multimedia System
CATALYST PAPER: Plans US$200 Mil. Senior Notes Private Placement
CINRAM INTERNATIONAL: Subsidiary Inks Service Pact with Motorola
FIRST DATA: Special Shareholders Meeting Scheduled for July 31
INTERTAPE POLYMER: Board Finds Dissident’s Proposals Flawed
INTERTAPE POLYMER: Annual & Special Meeting Set for June 26
MEGA BRANDS: Keith Bowman Joins Board of Directors
SATELITES MEXICANOS: Bracewell to Seek Financial Options
SENSATA TECH: S&P Revises Outlook to Negative from Stable
SONIC CORP: Third Quarter Net Income Down to US$20.6 Million
P A N A M A
AES CORP: Shuts Down Los Angeles Unit for Maintenance
CHIQUITA BRANDS: Selling 12 Cargo Vessels for US$227 Million
CHIQUITA BRANDS: Executives Adopt Prearranged Stock Trading Plan
TITAN PETROCHEMICAL: Sets Sights on Becoming Fuel Storage Giant
P A R A G U A Y
* PARAGUAY: Holding Off Bank of the South Launching
P E R U
DOE RUN: Concludes Negotiations with Union Workers
SK CORPORATION: Shuts Down Crude Distillation Unit
U R U G U A Y
SUPERCLICK INC: April 30 Balance Sheet Upside-Down by US$2.3MM
V E N E Z U E L A
CMS ENERGY: Fitch Assigns BB- Rating on US$400-Mil. Senior Notes
* VENEZUELA: Lowers Oil Production by 195,000 BPD
* VENEZUELA: Will Launch Mobile Spectrum Tender on July 11
* VENEZUELA: Holding Off Bank of the South Launching
- - - - -
=================
A R G E N T I N A
=================
AGRINTSA SA: Proofs of Claim Verification Deadline Is Aug. 10
-------------------------------------------------------------
Carlos Piatelli, the court-appointed trustee for Agrintsa S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
Aug. 10, 2007.
Mr. Piatelli will present the validated claims in court as individual
reports on Sept. 24, 2007. The National Commercial Court of First
Instance in Mendoza will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Agrintsa 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 Agrintsa's accounting and
banking records will be submitted in court on Nov. 6, 2007.
Mr. Piatelli is also in charge of administering Agrintsa's assets under
court supervision and will take part in their disposal to the extent
established by law.
The debtor can be reached at:
Agrintsa S.A.
Ruta Provincial 50
Rodeo del Medio, Maipu
Mendoza, Argentina
The trustee can be reached at:
Carlos Piatelli
Capitan de Fragata Moyano 53
Ciudad de Mendoza, Mendoza
Argentina
ALITALIA SPA: Aeroflot Sees Stake's Asking Price as Too High
------------------------------------------------------------
The OAO Aeroflot-Unicredit Italiano S.p.A. is complaining over the price
tag and bidding conditions for the Italian government's 39.9% stake in
Alitalia S.p.A., various reports say.
"Everything depends on the conditions," Irina Dannenberg, a spokeswoman
for Aeroflot, told reporters. "We are not happy with the conditions and
do not intend to buy Alitalia at any price."
Leonid Dushatin, a board member of National Reserve Corp., which owns 30%
of Aeroflot, told Reuters that the Russia carrier believes that the
bidding process would not allow it to turn Alitalia around.
Alexander Lebedev, NRK's majority owner, told Reuters that though he was
against the Alitalia bid, Aeroflot proceeded while taking cue from the
Russian government, which owns 51% of the carrier.
Bid Pullout
Aeroflot, meanwhile, denied it was withdrawing its bid to acquire
Alitalia, The Financial Times relates.
Ms. Dannenber added that the matter would be addressed at an upcoming
meeting of the company's board of directors.
Alitalia press secretary Federica Mancinella has confirmed Aeroflot's
statement, RIA Novosti relates.
Giacomo Chiorino of Nuovi Investimenti Sim told Reuters that if Aeroflot
pulls out from the race, the bidding process may fail.
"The concern is that if you're left with only bidder, he gets much more
negotiating power," Mr. Chiorino said. "Then they can bid what they want,
and then it's up to the government to decide whether to accept it."
As reported on June 20, 2007, the AirOne S.p.A.-Intesa San Paolo
consortium is grumbling over lack of adequate information on Alitalia's
operation. The consortium reportedly wants access to Alitalia's legal
contracts and other date that would allow them to assess accurately the
profitability of the carrier's route network.
AirOne wrote to Italian finance minister Tommaso Padoa-Schioppa bemoaning
that it cannot devise a proper business plan for Alitalia due to limited
information.
About Alitalia
http://www.alitalia.it/-- provides air travel services for
Headquartered in Rome, Italy, Alitalia S.p.A. --
passengers and air transport of cargo on national, international
and inter-continental routes. 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.
BALLY TECHNOLOGIES: Incurs US$2.7 Million Quarter Net Loss
----------------------------------------------------------
Bally Technologies Inc. has filed with the U.S. Securities and Exchange
Commission, its quarterly reports on Form 10-Q for the three-month periods
ended Sept. 30, 2006 and Dec. 31, 2006.
The company reported operating income of US$14.3 million for the fiscal
2007 period compared with an operating loss of US$11.3 million in the
fiscal 2006 period. The company reported a net loss of US$2.7 million
(US$0.05 per share) for the fiscal 2007 period compared with a net loss in
the fiscal 2006 period of US$17.3 million (US$0.33 per share).
Revenues for the fiscal 2007 period increased 31 percent, to US$305.6
million from US$232.9 million in the fiscal 2006 period ended Dec. 31,
2005. Further, current deferred revenue increased by US$16.4 million to
US$63.5 million at Dec. 31, 2006 compared with US$47.1 million at June 30,
2006. In the fiscal 2007 and 2006 periods, the company recorded
stock-based compensation of US$5.3 million, net of tax benefit (US$0.10
per share) and US$3.8 million, net of tax benefit (US$0.07 per share),
respectively.
The company's Gaming Equipment and Systems revenues increased 35
percent to US$282.6 million for the fiscal 2007 period compared with
US$208.8 million in the fiscal 2006 period.
Gaming Equipment revenue increased 49 percent, to US$136.6 million for the
fiscal 2007 period compared with US$91.4 million in the fiscal 2006
period, with unit sales of gaming devices increasing 43 percent to 9,704
units in the fiscal 2007 period compared with 6,789 units in the fiscal
2006 period.
The average selling price of new gaming devices (excluding OEM
sales) increased 14 percent to US$12,363 per unit for the fiscal 2007
period compared with US$10,802 per unit in the fiscal 2006 period. The
company recorded inventory obsolescence charges of US$6.2 million in the
fiscal 2007 period compared with US$8.0 million in the fiscal 2006 period.
Gross margin on the company's gaming equipment increased to 35 percent in
the fiscal 2007 period from 27 percent in the fiscal 2006 period. The
increase in margin was primarily due to lower sales discounts and lower
production costs in the fiscal 2007 period compared with the fiscal 2006
period. In addition, in the fiscal 2006 period, the company recorded
higher inventory obsolescence charges in connection with the company's
introduction of ALPHA OS(TM) products.
Gaming Operations revenue increased 8 percent to US$77.8 million from
US$71.8 million in the fiscal 2006 period. Revenue from the Company's
rental and daily fee, lottery and centrally determined games improved 24
percent to US$63.0 million in the fiscal 2007 period compared with US$50.9
million in the fiscal 2006 period as a result of a 32 percent increase in
the installed base of games at Dec. 31, 2006, to 43,044 compared with
33,127 at
Dec. 31, 2005. The increase in games was driven by new placements of the
company's premium participation games, including Hot Shot Progressive(TM),
as well as the placement of approximately 2,600 lottery games in New York
state late in the period. The increase in Gaming Operations revenue was
partially offset by a decrease in revenues from wide-area products to
US$13.2 million in the fiscal 2007 period from US$19.4 million in the
fiscal 2006 period resulting from a decrease in the number of wide-area
progressive games deployed. Gross margin on Gaming Operations increased
to 58 percent in the fiscal 2007 period compared with 45 percent in the
fiscal 2006 period as a result of increased revenues from the company's
premium participation games and a decrease in depreciation expense. In
the fiscal 2006 period, the lives of certain participation games were
shortened resulting in an acceleration of depreciation over the remainder
of their useful lives. Many of these games became fully depreciated in the
three-month period ended
Sept. 30, 2006.
Systems revenue increased 50 percent to US$68.2 million in the fiscal 2007
period compared with US$45.6 million in the fiscal 2006 period. Revenues
were impacted by an increase in deferred revenues during the fiscal 2007
period. Gross margins on System sales decreased to 68 percent in the
fiscal 2007 period from 82 percent in the fiscal 2006 period due to the
increase in the proportion of sales of lower margin hardware products
versus
software.
The company's selling general and administrative expenses increased 17
percent to US$101.7 million in the fiscal 2007 period compared with
US$87.0 million in the fiscal 2006 period. This increase was partially
attributable to an increase in payroll and related costs to support the
current and planned growth in the company's business. Professional and
legal fees also increased as a result of the October 2006 restatement of
the company's fiscal 2005, 2004 and 2003 financial statements as well as
ongoing intellectual property litigation.
The company's net interest expense increased to US$16.8 million in the
fiscal 2007 period compared with US$11.7 million in the 2006 fiscal period
as a result of higher interest rates as compared with the fiscal 2006
period as well as approximately US$2.1 million in fees paid to amend the
company's bank agreement as a result of the delayed filing of the
company's 2006 Form 10-K.
Research and development costs increased 23 percent to US$25.9 million in
the fiscal 2007 period compared with US$21.0 million in the fiscal 2006
period. This increase in research and development reflects the company's
focus on a continued high level of product innovation and quality for
growth.
Robert C. Caller, Chief Financial Officer, said, "These two filings
represent another important accomplishment as we move closer to our goal
of becoming a timely filer. These are our sixth and seventh major filings
in the last eight months. We are anxious to complete the filing of our
fiscal 2007 Form 10-K on a timely basis."
Fiscal 2007 Business Outlook
"Our financial results for the six months ended Dec. 31, 2006, began to
show the fruits of our efforts in consolidating the company's various
businesses and re-tooling the product lines," said Richard M. Haddrill,
Chief Executive Officer. "All of our principle product lines showed
increases, with revenues from Gaming Equipment and from Systems increasing
49 percent and 50 percent, respectively. As we continue to execute our
strategy, we expect that our operating results in the second half of
fiscal 2007 and fiscal 2008 will show additional improvement over our
results for the first half of the fiscal year."
The company expects it will record revenue for the six months ended June
30, 2007, in the range of US$365 to US$385 million, bringing total
revenues for the year to an expected range of US$670 to US$690 million.
Total gross margin is expected to increase in the second half of fiscal
2007. Excluding sales of OEM units, the Company expects to sell in excess
of 13,000 gaming devices in the second half of fiscal 2007. The company
expects accelerating growth in Gaming Operations revenues in the second
half of fiscal 2007 and expects to have placed in excess of 2,000 of its
premium Hot Shot Progressive game by
June 30, 2007. Revenue from Systems will continue to fluctuate as the
company applies complicated software revenue recognition accounting
standards.
The company expects its selling, general and administrative expenses in
the second of half of fiscal 2007 will be between US$107 and US$112
million. Research and development costs are expected to range between
US$25 and US$28 million.
Filing Status
The company currently intends to file its 2007 Annual Report on Form 10-K
in a timely manner. The company will file its Form 10-Q for the
three-month period ended March 31, 2007, simultaneously with the filing of
the Form 10-K, but may provide additional business updates prior to that
time.
Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide. Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms. Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions. The company also owns and operates
Rainbow Casino in Vicksburg, Miss. The company's South American
operations are located in Argentina. The company also has
operations in Macau, China, and India.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Standard & Poor's Ratings Services revised its
CreditWatch implication on its ratings for Bally Technologies
Inc. to developing from negative. The corporate credit rating
on the company is 'B-'. The ratings were initially placed on
CreditWatch on Sept. 9, 2005, and several rating actions have
occurred since the original CreditWatch listing.
CLAXSON INTERACTIVE: Earns US$3.5 Million in Qtr. Ended March 31
----------------------------------------------------------------
Claxson Interactive Group Inc. announced financial results for the
three-month period ended March 31, 2007. In December 2006, the Company
executed agreements for the sale of the majority of its Pay TV division
and Broadcast Radio divisions with Turner and Prisa, respectively, and in
accordance with applicable accounting principles, the assets, liabilities
and operations of these two operations are reflected as assets and
liabilities held for sale in the balance sheet and as discontinued
operations in the statement of the company's operations.
The management has made a proposal to take the company private at a price
of US$10.50 per share. Claxson’s board of directors has formed a special
committee to evaluate and negotiate this proposal and other strategic
alternatives.
First Quarter 2007
The following is a discussion of the results of the continuing operations.
Net revenue for the first quarter of 2007 was US$6.5 million, a 12%
increase from net revenue of US$5.8 million for the first quarter of 2006.
Operating expenses for the three months ended March 31, 2007 were US$8.1
million, a 16% increase from the US$7.0 million for the first quarter of
2006. Operating loss was US$1.6 million for the three-month period ended
March 31, 2007 compared to US$1.2 million for the three-month period ended
March 31, 2006. Foreign currency exchange loss for the three-month period
ended March 31, 2007 was US$0.3 million compared to a foreign exchange
gain of US$0.1 million for the three-month period ended March 31, 2006.
Net loss from continuing operations for the three months ended March 31,
2007 was US$1.6 million (US$0.07 per common and diluted share), compared
to a net loss of US$1.3 million (US$0.07 per common and US$0.06 per
diluted share) for the same period in 2006. Net income for the three
months ended March 31, 2007, was US$3.5 million (US$0.16 per common and
diluted share), compared to US$3.1 million (US$0.15 per common and US$0.14
per diluted share) for the same period in 2006.
“As we go through the regulatory approval processes for the Pay TV and
Radio transactions we continue to successfully operate the discontinued
businesses and prepare for the transition,” said Roberto Vivo, Chairman
and CEO. “Although we do not have control of these processes, we are
optimistic that we will be able to close within the anticipated
timeframes.”
The financial results of operations of Pay TV only include the Playboy TV
Latin America joint venture as well as the operation of our technical
facility in Miami which are not part of the discontinued operations.
Pay TV
Net revenue for the first quarter of 2007 was US$6.1 million, a 7%
increase from net revenue of US$5.7 million for the first quarter of 2006.
The increase in net revenue is principally attributable to the
development of the Mobile business for our Pay TV content.
Operating expense (before depreciation and amortization) for the first
quarter of 2007 was US$6.5 million compared to US$5.8 million for the same
period in 2006. The increase is principally attributable to higher
programming expenditures as a result of increased production for both
television and Mobile content, and to a lesser extent to charges for
uncollectible accounts receivable.
Operating loss for the first quarter of 2007 was US$0.5 million compared
to operating loss of US$0.3 million for the same period in 2006.
Broadband & Internet
As part of a plan to grow the Broadband & Internet business, in April 2006
the Company separated the assets of this unit into a newly formed
subsidiary and as a result the operations for the periods 2006 and 2007
are not comparable. Net revenue for the first quarter of 2007 was US$0.3
million driven by the launch of services to new clients, and operating
expenses (before depreciation and amortization) for the first quarter of
2007 were US$0.4 million. Operating loss for the first quarter of 2007
was US$0.2 million.
Liquidity
As of March 31, 2007, Claxson had cash and cash equivalents of US$10.7
million (excluding US$10.4 million in cash at companies subject to the
sale transactions) and financial debt of US$40.0 million including
principal and accrued but unpaid interest. In addition, future interest
payments on the Company’s 8.75% Senior Notes due in 2010, totaling US$7.0
million as of March 31, 2007, are recorded as debt.
For the three-month period ended March 31, 2007, Claxson’s operating
activities (including the discontinued operations) generated cash flows of
US$3.8 million compared to US$3.1 million for the same period of 2006.
The difference is primarily due to improved operating results. Cash
generated from operating activities was primarily used for the payment of
debt obligations and for capital expenditures.
Other Items
The audit of the Company’s annual financial statements for fiscal year
2006 has not been finalized and as a result the information presented in
this press release related to the year 2006 is subject to change and
should not be considered final until the annual report in form 20-F is
filed with the U.S. Securities and Exchange Commission. In addition, the
Company is analyzing the impact of the adoption of new accounting
pronouncement FASB Interpretation No. 48 (FIN 48), “Accounting for
Uncertainty in Income Taxes,” applicable to the 2007 fiscal year.
Consequently, no effect has been recorded in our first quarter financial
results
Headquartered in Buenos Aires, Argentina, and Miami, Florida,
Claxson Interactive Group Inc. (Pink Sheets: XSONF) has a
presence in the United States and all key Ibero-American
countries, including Mexico, Chile, Brazil, Spain and Portugal. Claxson's
principal shareholders are the Cisneros Group of Companies and funds
affiliated with Hicks, Muse, Tate & Furst Inc.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 4, 2007, Claxson Interactive Group Inc.'s obligaciones
negociables for US$44,400,000 is rated BB by Fitch Argentina.
The rating action was based on the company's balance sheet at
Sept. 30, 2006.
INDUSTRIAS METALURGICAS: Individual Reports Due on Sept. 20
-----------------------------------------------------------
Susana Beatriz Fernandez, the court-appointed trustee for Industrias
Metalurgicas Suarez S.A.'s reorganization proceeding, will present
creditors' validated claims as individual reports in the National
Commercial Court of First Instance No. 18 in Buenos Aires on Sept. 20,
2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Industrias Metalurgicas and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Fernandez verifies creditors' proofs of claim until
Aug. 8, 2007.
Ms. Fernandez will also submit to court a general report containing an
audit of Industrias Metalurgicas' accounting and banking records on Nov.
2, 2007.
The informative assembly will be held on May 9, 2008. Creditors will vote
to ratify the completed settlement plan
during the assembly.
Clerk No. 35 assists the court on this case.
The debtor can be reached at:
Industria Metalurgicas Suarez SA
Tucuman 540
Buenos Aires, Argentina
The trustee can be reached at:
Susana Beatriz Fernandez
Florida 520
Buenos Aires, Argentina
IRAMA SA: Proofs of Claim Verification Is Until July 6
------------------------------------------------------
Marina Fernanda Tynik, the court-appointed trustee for Irama S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until July 6,
2007.
Ms. Tynik will present the validated claims in court as individual reports
on Aug. 20, 2007. The National Commercial Court of First Instance in
Buenos Aires will determine if the verified claims are admissible, taking
into account the trustee's opinion, and the objections and challenges that
will be raised by Irama 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 Irama's accounting and banking
records will be submitted in court on Oct. 1, 2007.
Ms. Tynik is also in charge of administering Irama's assets under court
supervision and will take part in their disposal to the extent established
by law.
The trustee can be reached at:
Marina Fernanda Tynik
Avenida Rivadavia 10444
Buenos Aires, Argentina
RACCA CEREALES: Proofs of Claim Verification Ends on Aug. 15
------------------------------------------------------------
The court-appointed trustee for Racca Cereales S.A.'s bankruptcy
proceeding, verifies creditors' proofs of claim until
Aug. 15, 2007.
Infobae did not state the name of the trustee.
The trustee will present the validated claims in court as individual
reports on Nov. 20, 2007. The National Commercial Court of First Instance
in Bell Ville, Cordoba, 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 Racca Cereales 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 Racca Cereales' accounting and
banking records will be submitted in court. Infobae didn't specify the
submission date of the report.
The trustee is also in charge of administering Racca Cereales' assets
under court supervision and will take part in their disposal to the extent
established by law.
The debtor can be reached at:
Racca Cereales S.A.
Lavalleja Esquina Las Heras, Laborde
Cordoba, Argentina
RED HAT: UBS Maintains Neutral Rating on Company's Shares
---------------------------------------------------------
UBS analysts have kept their "neutral" rating on Red Hat Inc.'s shares,
Newratings.com reports.
According to Newratings.com, the target price for Red Hat's shares was set
at US$25.
The analysts said in a research note that Red Hat would report strong
results in the fiscal first quarter 2008, with sales and earnings per
share likely to be "in-line with the consensus."
The analysts told Newratings.com that there is "upside to the billing
estimates for Red Hat in the quarter, in view of the robust momentum the
firm saw during the quarter."
The Linux server demand seemed stroing, heading into the second half of
2007, Newratings.com states, citing UBS.
Headquartered in Raleigh, North Carolina Red Hat, Inc. --
http://www.redhat.com/-- is an open source and Linux provider. Red Hat
provides operating system software along with middleware, applications and
management solutions. Red Hat also offers support, training, and
consulting services to its customers worldwide and through top-tier
partnerships.
The company has offices in Singapore, Germany, and Argentina,
among others.
* * *
As reported on Nov. 3, 2006, Standard & Poor's Ratings Services revised
its outlook on Raleigh, North Carolina-based operating systems provider
Red Hat Inc. to stable from positive, and affirmed its 'B+' corporate
credit rating.
SUPERTODO ENSENADA: Proofs of Claim Verification Ends on Aug. 6
---------------------------------------------------------------
Pablo Javier Kainsky, the court-appointed trustee for Supertodo Ensenada
S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim on
Aug. 6, 2007.
Mr. Kainsky will present the validated claims in court as individual
reports on Sept. 21, 2007. The National Commercial Court of First
Instance in La Plata, Buenos Aires, will determine if the verified claims
are admissible, taking into account the trustee's opinion, and the
objections and challenges that will be raised by Supertodo Ensenada 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 Supertodo Ensenada's accounting
and banking records will be submitted in court on
Nov. 6, 2007.
The informative assembly will be held on May 16, 2008. Creditors will
vote to ratify the completed settlement plan during the assembly.
The trustee can be reached at:
Pablo Javier Kainsky
Calle 15, Numero 779
La Plata, Buenos Aires
Argentina
VADRA SRL: Trustee Verifies Proofs of Claim Until Aug. 6
--------------------------------------------------------
Zulma Gloria Ghigliano, the court-appointed trustee for Vadra S.R.L.'s
reorganization proceeding, verifies creditors' proofs of claim on Aug. 6,
2007.
Ms. Ghigliano will present the validated claims in court as individual
reports on Sept. 4, 2007. The National Commercial Court of First Instance
in Buenos Aires will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Vadra 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 Vadra's accounting and banking
records will be submitted in court on Oct. 17, 2007.
The informative assembly will be held on March 12, 2008. Creditors will
vote to ratify the completed settlement plan during the assembly.
The trustee can be reached at:
Zulma Gloria Ghigliano
Pasaje Cipoletti 554
Buenos Aires, Argentina
WISPER SRL: Proofs of Claim Verification Deadline Is Aug. 1
-----------------------------------------------------------
Oscar Alfredo Arias, the court-appointed trustee for Wisper S.R.L.'s
bankruptcy proceeding, verifies creditors' proofs of claim until Aug. 1,
2007.
Mr. Arias will present the validated claims in court as individual reports
on Sept. 12, 2007. The National Commercial Court of First Instance in
Buenos Aires will determine if the verified claims are admissible, taking
into account the trustee's opinion, and the objections and challenges that
will be raised by Wisper 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 Wisper's accounting and banking
records will be submitted in court on Oct. 24, 2007.
Mr. Arias is also in charge of administering Wisper's assets under court
supervision and will take part in their disposal to the extent established
by law.
The debtor can be reached at:
Wisper S.R.L.
Viamonte 1866
Buenos Aires, Argentina
The trustee can be reached at:
Oscar Alfredo Arias
Carlos Pellegrini 1063
Buenos Aires, Argentina
=============
B A H A M A S
=============
ISLE OF CAPRI: Moody's Affirms B1 Corporate Family Rating
---------------------------------------------------------
Moody's Investors affirmed Isle of Capri Black Hawk, LLC's B1
corporate family rating, B2 probability of default rating, and B1 (LGD-3,
34%) senior secured bank loan rating. The rating outlook remains stable.
The affirmation of ICBH's ratings follow the downgrade of Isle of Capri,
Inc.'s restricted group ratings that occurred earlier in a separate rating
action. Isle of Capri, Inc. (B1/stable) owns 57% of ICBH.
ICBH's ratings consider that despite increased competition and
sometimes unfavorable weather conditions in the Black Hawk, CO market, the
company is expected to generate positive cash flow after interest, tax
distributions, management fees and maintenance and development capital
expenditures in fiscal 2007 and 2008, and debt/EBITDA after management
fees is expected to remain below 6.0 times over the next two years.
Debt/EBITDA after management fees for the 12-month period ended
Jan. 28, 2007, was about 5.6x. The affirmation also considers ICBH's
stand-alone financing and non-recourse nature status and does not assume
any implied support from its parent, Isle of Capri Casinos, Inc.
The stable rating outlook acknowledges that the Black Hawk gaming market
has a good historical growth rate and is characterized by favorable
demographics. Moody's also considers Colorado a moderate regulatory risk
jurisdiction with respect to gaming legislation. The stable outlook
anticipates that the examination and restatement of Isle of Capri, Inc.'s
consolidated financial results, primarily related to lease
accounting and rent expense, will not have a material impact on ICBH's or
Isle of Capri, Inc.'s reported earnings and cash flow.
Material findings related to the examination and restatement of
financial statements above what is already expected could have a negative
impact on ratings. Material EBITDA declines over the next several
quarters could also have a negative impact on ratings. Although ICBH has
achieved revenue growth, EBITDA has declined in the past two quarters due
to a combination of severe weather and increased supply in the market.
The company was able to negotiate a modification to its total leverage
covenant earlier this year that slightly increased the maximum
consolidated total leverage ratio through the remainder of fiscal 2007.
Ratings upside is limited at this time given ICBH's relatively small size
and lack of geographic diversification. The ratings are also limited by
the high degree of competition in Black Hawk, which will likely keep
credit metrics consistent with a 'B' category corporate family rating.
Moody's most recent action on ICBH occurred on Sep. 26, 2006 when
Probability of Default ratings and Loss Given Default assessments were
assigned to the ICBH as part of the general roll-out of the LGD product.
Isle of Capri Black Hawk, L.L.C., is a 57% wholly owned,
unrestricted subsidiary of Isle of Capri Casinos, Inc. (Ba3/On
review for possible downgrade) Nevada Gold & Casinos, Inc., owns
the remaining 43% ownership interest in ICBH.
Based in Biloxi, Miss., Isle of Capri Casinos, Inc. (Nasdaq:
ISLE) -- http://www.islecorp.com/-- a developer and owner of
gaming and entertainment facilities, operates 16 casinos in 14
locations. The Company owns and operates riverboat and dockside
casinos in Biloxi, Vicksburg, Lula and Natchez, Miss.; Bossier
City and Lake Charles (two riverboats), La.; Bettendorf,
Davenport and Marquette, Iowa; and Kansas City and Boonville,
Mo. The Company also owns a 57% interest in and operates land-
based casinos in Black Hawk (two casinos) and Cripple Creek,
Colorado. Isle of Capri's international gaming interests
include a casino that it operates in Freeport, Grand Bahama, and
a 2/3 ownership interest in casinos in Dudley, Walsal and
Wolverhampton, England. The company also owns and operates
Pompano Park Harness Racing Track in Pompano Beach, Fla.
ISLE OF CAPRI: Moody's Downgrades Restricted Group Ratings
----------------------------------------------------------
Moody's Investors lowered Isle of Capri, Inc.'s restricted group
ratings based on the expectation that the company will not be able to
reduce its leverage to a level considered more appropriate for a Ba3
corporate family rating. The downgrade considers that as a result of
increased debt associated with several expansion projects and competitive
pressures, particularly in Iowa and Kansas City, Restricted Group
debt/EBITDA will likely remain above 6.0 times through 2009.
The Restricted Group's corporate family and probability of default ratings
were lowered to B1 from Ba3. The rating on the company's existing US$700
million secured bank loan facility was lowered to Ba2 (LGD-2, 20%) from
Ba1 (LGD-2, 18%) while its senior subordinated note ratings were lowered
to B3 (LGD-5, 78%) from B1 (LGD-5, 76%).
This action affects Restricted Group ratings only and does not affect Isle
of Capri Black Hawk, LLC's ratings (B1/stable). Isle Black Hawk is a
57%-owned unrestricted subsidiary of Isle of Capri Inc. Isle Black Hawk
along with Isle's 67% interest in Blue Chip PLC are held through
unrestricted subsidiaries, and as a result, the debt at those subsidiaries
is non-recourse to the Restricted Group.
The assignment of a stable rating outlook acknowledges the Restricted
Group's geographic and property diversification, and expectation that both
the Pompano Park racino (opened
April 2007) and the Waterloo Casino in Iowa (expected to open by June 30,
2007) will have a long-term positive impact on the Restricted Group's cash
flow and asset profile. The stable outlook also assumes that the
examination and restatement of
financial results currently underway will not have a material impact on
reported earnings and cash flow. The examination and restatement is
related primarily to lease accounting and rent expense.
Material findings related to the examination and restatement of
financial statements above what is already expected could have a negative
impact on ratings. A slower than expected ramp up of the Waterloo casino
and Pompano Park could also have a negative impact on ratings. Ratings
improvement would require that the Restricted Group achieve and maintain
debt/EBITDA at or below 5.0x and that profitability and coverage measures
also map within the 'Ba' indicated rating category as defined in
Moody's Global Gaming Methodology.
Separately, Moody's assigned a rating of Ba3 (LGD-3, 34%) to all
tranches of the Restricted Group's new US$1.35 billion senior secured bank
credit facility including a US$500 million revolver, US$700 million term
loan, and US$150 million delay draw term loan. Proceeds from the new
credit facility will be used to refinance the company's existing US$700
million credit facility and US$200 million 9% senior subordinated notes
due 2012, and provide additional liquidity for anticipated expansion
projects and pay prepayment premiums and transaction related fees. The
rating assigned to the new senior secured credit facility reflects the
application of Moody's Loss Given Default methodology to the pro forma
capital structure. The Restricted Group's US$500 million 7% senior
subordinated notes will remain in the capital structure and its rating is
not expected to change once the new bank facility closes. The
Ba2 rating on the Restricted Group's existing US$700 million bank facility
will be withdrawn once the new US$1.35 billion bank facility becomes in
effect.
Moody's most recent action on the Restricted Group occurred on Sept. 28,
2006, when Probability of Default ratings and LGD assessments were
assigned to the company as part of the general roll-out of the LGD
product.
Based in Biloxi, Miss., Isle of Capri Casinos, Inc. (Nasdaq:
ISLE) -- http://www.islecorp.com/-- a developer and owner of
gaming and entertainment facilities, operates 16 casinos in 14
locations. The Company owns and operates riverboat and dockside
casinos in Biloxi, Vicksburg, Lula and Natchez, Miss.; Bossier
City and Lake Charles (two riverboats), La.; Bettendorf,
Davenport and Marquette, Iowa; and Kansas City and Boonville,
Mo. The Company also owns a 57% interest in and operates land-
based casinos in Black Hawk (two casinos) and Cripple Creek,
Colorado. Isle of Capri's international gaming interests
include a casino that it operates in Freeport, Grand Bahama, and
a 2/3 ownership interest in casinos in Dudley, Walsal and
Wolverhampton, England. The company also owns and operates
Pompano Park Harness Racing Track in Pompano Beach, Fla.
=============
B E R M U D A
=============
CITIC RESOURCES: Plans to Sell Shares to Temasek for HK$450.5MM
---------------------------------------------------------------
CITIC Resources Holdings plans to sell up to HK$450.5 million worth of new
shares to Singapore's Temasek Holdings for general working capital, market
sources told The Standard.
According to the paper's sources, the company is selling
101 million shares at HK$4.46 each, representing a 0.67% discount to
HK$4.49 before suspension.
Temasek Holdings held 335 million shares in CITIC Resources as of the end
of March, representing a 7.11% interest. The Singapore state-owned
investment company initially acquired a 5% holding in CITIC Resources in
February, the report notes.
Incorporated in Bermuda in 1997, CITIC Resources has its shares
listed on the Hong Kong Stock Exchange. The company positions
itself as an integrated provider of key commodities and
strategic natural resources with particular focus in oil
business. The principal activities of the company and its
subsidiaries are in the fields of oil, aluminium, coal, import
and export of commodities, manganese and iron ore. CITIC Group
(formerly China International Trust and Investment Corporation)
became the majority controlling shareholder of the Company in
March 2004, indirectly holding interest in the Company of over
54%. The company has operations in Kazakhstan.
Standard & Poor's Ratings Services on May 9, 2007, assigned its
BB long-term corporate credit rating to CITIC Resources Holdings
Ltd. The outlook is developing. At the same time, it issued
its BB issue rating to a proposed intermediate-term U.S. dollar
benchmark issue of senior unsecured notes by Citic Resources
Finance (2007) Ltd.
INTELSAT LTD: Moody's Reviews Ratings for Possible Downgrade
------------------------------------------------------------
Moody's Investors placed the long-term debt ratings of the Intelsat Ltd.
group of companies on review for possible downgrade. The rating action
was prompted by news that TD/EBITDA will increase substantially from 7.6x
to 10.3x (based on last three quarters annualized, i.e. since last
August's acquisition of PanAmSat Holding Corporation, and incorporating
Moody's adjustments to the company's reported figures). In turn, this
results from the company's June 19, 2007 announcement that funds advised
by BC Partners are to acquire 76% of the equity of Intelsat's parent
company, Intelsat Holdings, Ltd. The current shareholders, Apax Partners,
Apollo Management, Madison Dearborn Partners, Permira and management, will
retain the 24% balance. It was reported that Intelsat's debt will
increase by approximately US$3.85 billion, an increase
of some 33%, and there is no change to expectations of cash generation.
The review will focus on Intelsat's business and prospects, debt and
capital structure, and liquidity arrangements. Moody's Credit Opinion
dated 8 September 2006 provides a thorough review of these matters prior
to incorporating this latest development. Moody's anticipates
concluding the ratings review in advance of closing, which the company has
indicated is expected within six-to-nine months.
On Review for Possible Downgrade:
Issuer: Intelsat (Bermuda), Ltd.
-- Senior Unsecured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently B2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently Caa1
Issuer: Intelsat Corporation
-- Senior Secured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently Ba2
-- Senior Secured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently Ba2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently B2
Issuer: Intelsat Holding Corporation
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently Caa1
Issuer: Intelsat Intermediate Holding Company, Ltd.
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently B3
Issuer: Intelsat Subsidiary Holding Co. Ltd.
-- Senior Secured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently Ba2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently B2
Issuer: Intelsat, Ltd.
-- Probability of Default Rating, Placed on Review for
Possible Downgrade, currently B2
-- Corporate Family Rating, Placed on Review for Possible
Downgrade, currently B2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently Caa1
Outlook Actions:
Issuer: Intelsat, Ltd.
-- Outlook, Changed To Rating Under Review From Stable
The company has noted that current plans call for its 5.25% US$400 million
notes due November 2008 in the name of Intelsat, Ltd. to be defeased or
retired. In addition, some US$860 million of debt in the name of Intelsat
(Bermuda), Ltd. has been highlighted as being repaid, although specific
instruments have not been identified. The ratings review will also
address the matter of certain debts being repaid.
Intelsat, headquartered in Bermuda, is the largest fixed
satellite service operator in the world and is owned by Apollo
Management, Apax Partners, Madison Dearborn, and Permira.
TELEGLOBE: Will Hold Final General Meeting on June 27
-----------------------------------------------------
TELEGLOBE's final general meeting will be held on June 27, 2007,
at 9:30 a.m., at:
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken during the meeting:
-- the presentation of an account on the wind up process of
the company by the liquidator, Robin J. Mayor, who will
show the manner in which the winding-up has been
conducted, how the property of the company has been
disposed of and explain the process;
-- the determination by resolution the manner in which the
books, accounts and documents of the company and of the
liquidator will be disposed; and
-- filing a resolution for the dissolution of the company.
The liquidator can be reached at:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
VSNL TELECOMMUNICATIONS: Final General Meeting Is on June 28
------------------------------------------------------------
VSNL Telecommunications (Bermuda) Ltd. final general meeting is
scheduled on June 28, 2007, at 9:30 a.m., at:
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken during the meeting:
-- the presentation of an account on the wind up process of
the company by the liquidator, Robin J. Mayor, who will
show the manner in which the winding-up has been
conducted, how the property of the company has been
disposed of and explain the process;
-- determination by resolution the manner in which the
books, accounts and documents of the company and of the
liquidator will be disposed; and
-- filing a resolution for the dissolution of the company.
The liquidator can be reached at:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
WHITEROCK LTD: Schedules Final General Meeting on June 29
---------------------------------------------------------
Whiterock Limited's final general meeting is scheduled on
June 29, 2007, at 10:30 a.m., at:
27 Reid Street
Hamilton HM11, Bermuda
These matters will be taken during the meeting:
-- the presentation of an account on the wind up process of
the company by the liquidator, Donna A. Trott., who will
show the manner in which the winding-up has been
conducted, how the property of the company has been
disposed of and explain the process;
-- determination by resolution the manner in which the
books, accounts and documents of the company and of the
liquidator shall be disposed; and
-- filing a resolution for the dissolution of the company.
The liquidator can be reached at:
Donna A. Trott
27 Reid Street
Hamilton HM11, Bermuda
=============
B O L I V I A
=============
* BOLIVIA: Purchasing Liquefied Petroleum from Venezuela
--------------------------------------------------------
Yacimientos Petroliferos Fiscales Bolivianos’ Operations Vice-President
Sebastian Daroca told El Universal that his nation is importing liquefied
petroleum gas from Venezuela due to shortages.
"There should be no deficit, if smuggling is strictly controlled. But
based on the trends of demand, we have estimated deficit at 30-40 tons LPG
a day," the Bolivian official explained to the a reporter from El
Universal.
* * *
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: Sends Armed Forces to Posokoni to Prevent Tin Theft
--------------------------------------------------------------
The Bolivian government has sent about 200 members of the armed forces to
Posokoni to prevent tin theft, state news agency Agencia Boliviana de
Informacion reports.
According to ABI, some 200 tons per meter of tin has been stolen,
indicating losses for the state of almost US$2.4 million.
Business News Americas relates that Posokoni is part of the Huanuni mine
run by miner Empresa Minera Huanuni, which is controlled by state miner
Comibol.
The number of thieves is not known. Authorities estimate that there could
be up to 300 thieves, ABI says.
Comibol head Hugo Mirando commented to ABI, "If we don't take measures, it
could get worse in the future, which is very worrisome."
Comibol will do what it can to prevent the thief from worsening and
causing more big losses for EMH, BNamericas states, citing Mr. Mirando.
* * *
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
===========
ACTUANT CORP: Reports US$29.6 Mil. Net Income in Third Quarter
--------------------------------------------------------------
Actuant Corporation reported results for its third quarter ended May 31,
2007. Including restructuring charges, third quarter fiscal 2007 net
earnings and diluted earnings per share were US$29.6 million and US$0.95,
respectively, compared to prior year net earnings and EPS of US$26.8
million and US$0.86, respectively. Fiscal 2007 third quarter results
include a US$0.4 million (US$0.01 per diluted share) charge covering a
portion of the Company’s previously announced restructuring of its
European Electrical business. Fiscal 2006 third quarter results include a
US$2.6 million (US$0.08 per diluted share) one-time tax benefit.
Excluding the restructuring charge and prior year tax benefit, third
quarter EPS increased 23% year-over-year from US$0.78 to US$0.96.
Third Quarter 2007 Highlights:
* 23% improvement in EPS, excluding restructuring and prior
year tax benefit, representing largest quarterly EPS growth
of the year.
* Record sales of US$385 million, a 22% increase over the
prior year.
* Strong cash flow resulting in third quarter net debt
reduction of US$88 million. Year-to-date free cash flow of
US$98 million, a 138% conversion of net income.
* Sequential and year-over-year operating profit and EBITDA
margin improvement.
* Completed acquisition of T.T. Fijnmechanica B.V.,
broadening the Industrial Segment product offering.
* Announced US$250 million Senior Notes offering (completed
June 12).
Robert Arzbaecher, President and CEO of Actuant commented, "We are pleased
with our performance in the third quarter which added to our track record
of consistent, profitable growth. With the exception of the expected
year-over-year sales decline in the Actuation Systems segment, we saw
continued core sales growth in our other three segments. These results
reinforce the benefits of Actuant’s customer, market and geographic
diversification. In addition, acquisitions contributed US$42 million or
13% of the sales improvement in the third quarter and highlight the
success of adding to growth opportunities in our existing businesses via
acquisitions.”
Consolidated Results
Third quarter sales increased 22% to US$385 million from US$317 million in
the prior year, reflecting the combination of core growth, business
acquisitions and the weaker US dollar. Excluding the impact of foreign
currency rate changes (5%) and acquisitions (13%), core sales growth was
4%. The Industrial Segment once again generated double-digit core sales
growth while the Actuation Systems Segment reported a year-over-year sales
decline due to prior year convertible top launches and the North American
heavy-duty truck pre-buy.
The third quarter operating margin was 13.7%, excluding restructuring
charges, an increase of 20 basis points versus the prior year resulting
from improvements in both gross profit margin and selling, administrative
and engineering spending, partially offset by higher acquisition related
amortization expense. These improvements reflect the Company's strategic
sourcing and Lean Enterprise Across Discipline (LEAD) activities.
Sales for the nine months ended May 31, 2007 were US$1.069 billion, or 22%
higher than the US$877 million in the comparable prior year period.
Excluding the impact of foreign currency rate changes and sales from
acquired businesses, core sales increased 7%.
Earnings for the nine months ended May 31, 2007, excluding the
restructuring charge, rose 19% to US$77.1 million, or US$2.48 per diluted
share, compared to US$64.8 million, or US$2.11 for the comparable prior
year period (excluding the tax benefit). Year-to-date fiscal 2007 results
include US$0.10 per diluted share of European Electrical restructuring
charges while fiscal 2006 included an US$0.08 favorable tax adjustment
(see attached reconciliation of earnings).
Third quarter fiscal 2007 Industrial Segment sales increased 36% to US$113
million, resulting from increased demand, the weaker US dollar and sales
from acquired businesses. Excluding currency translation and sales from
acquired businesses, Industrial Segment sales increased approximately 15%
from the comparable prior year period, driven by continued strong demand
in both the high-force hydraulic tool and joint integrity product lines.
Third quarter operating profit margins expanded 370 basis points to 29.3%
due primarily to the benefit of higher volume and operating efficiencies.
Fiscal 2007 third quarter Electrical Segment sales increased 17% to US$128
million, reflecting 3% core sales growth, favorable foreign currency
exchange rate changes and the August 2006 acquisition of Actown. The
Electrical Segment operating profit margin declined from 10.2% in the
third quarter of fiscal 2006 to 8.1% in fiscal 2007, excluding
restructuring charges, primarily due to restructuring related
inefficiencies in the European Electrical operations, product buyback and
reset costs and unfavorable sales and acquisition mix. The company
expects to substantially complete the previously announced restructuring
of its European Electrical operations by the end of calendar 2007.
Fiscal 2007 third quarter Engineered Products Segment sales more than
doubled to US$32.9 million reflecting both 5% core sales growth and the
acquisition of Maxima in December 2006. Operating profit increased to
US$4.3 million from US$2.1 million while margins declined 120 basis
points.
Financial Position
Quarter-end net debt (total debt of US$555 million less US$74 million of
cash) was US$481 million, a decrease of US$88 million from the beginning
of the quarter. Actuant’s free cash flow in the quarter was approximately
US$92 million driven by strong earnings conversion, improved working
capital management and the timing of certain cash payments. Approximately
US$23 million of cash was used in business acquisitions which nearly
offset the US$20 million increase in accounts receivable securitization
proceeds in the quarter.
Outlook
The Company updated its fiscal year 2007 guidance to reflect both the TTF
acquisition and third quarter results. Full year fiscal 2007 EPS is
expected to be in the range of US$3.38-3.43 (excluding European Electrical
restructuring charges) on sales of US$1.430-1.440 billion. Fourth quarter
EPS (excluding restructuring charges) is projected to be in the
US$0.90-0.95 range.
Actuant also provided its preliminary outlook for fiscal 2008, which
reflects the continued execution of its dual strategy of organic growth
and tuck-in business acquisitions. The company is targeting approximately
10-15% EPS growth (excluding future acquisitions), above the mid-point of
its fiscal 2007 EPS guidance. Diluted EPS is projected to be in the
US$3.70-3.90 range, excluding European Electrical restructuring charges.
The company currently anticipates that next year’s sales will be in the
US$1.530–1.550 billion range, an increase of 6-8% over fiscal 2007.
Mr. Arzbaecher commented, “We are very pleased with the way fiscal 2007
has developed and expect 2008 to follow a similar pattern. Our 2007 EPS
guidance from last June anticipated 9-14% growth because, similar to our
preliminary 2008 guidance, it didn’t include the benefit of future
acquisitions. As a result of acquisitions and base business performance,
fiscal 2007 EPS is currently forecasted to grow 17-18% above the prior
year. We are excited about the prospects for the upcoming year. There are
growth opportunities in all our segments and the pipeline for additional
acquisitions remains very active. Our focus on LEAD, including Asian
sourcing, will continue to drive margin enhancement opportunities. We
expect continued strong performance in 2008.”
Headquartered in Butler, Wis., Acuant Corp. (NYSE: ATU) --
http://www.actuant.com/-- is a diversified industrial company
with operations in more than 30 countries including Australia,
China, Italy, United Kingdom, Brazil, among others. The Actuant
businesses are market leaders in highly engineered position and motion
control systems and branded hydraulic and electrical tools and supplies.
The company employs a workforce of more than 6,700 worldwide.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 6, 2007, Moody's Investors Service assigned a Ba2 (LGD3, 43%) rating
to Actuant Corporation's US$250 million senior unsecured notes and
affirmed the company's Ba2 Corporate Family Rating.
Standard & Poor's Ratings Services assigned its 'BB-' rating to
Actuant Corp.'s proposed US$250 million senior unsecured notes due 2017.
The proceeds from the notes will be principally used to repay a portion of
borrowings under the company's senior credit facility due 2009.
BANCO NACIONAL: Okays BRL35.6-Mil. Loan for Biodiesel Production
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social Aka BNDES' board of
directors approved a BRL35.6 million financing, operating directly with
Taua Biodiesel Ltda., for the implementation of an integrated industrial
unit for extraction of vegetable oils and biodiesel production. The
plant, located in the city of Nova Mutum, in the State of Mato Grosso,
will have a 36 thousand cubic meter per year production capacity.
The new unit will contribute for diversification of the energetic matrix
and, using ethanol and oleaginous vegetables as raw materials, it will
produce 100% renewable and less polluting fuel. It will also reduce the
need to import mineral diesel, helping to increase the energetic
self-sufficiency in the country. In addition, it shall be supporting
familiar agriculture, by acquiring from small rural producers 10% of the
input required for biodiesel production. The project should generate 147
direct jobs and 588 indirect work posts, after its implementation.
The use of renewable fuel is a worldwide trend, resulting from the issue
of global warming, added to higher oil prices. Following this trend, the
Brazilian government created a specific legislation, offering incentives
to the production of biodiesel in the country and ensures market with the
authorization of a 2% mix of biodiesel to oil diesel, since 2006. In
2008, this addition should start to be compulsory, forecast to increase to
5% by 2013, which date can be anticipated.
The raw material to be used in the project (soy, sunflower and cotton
seeds) are abundant in Taua's (MT) region of influence, which represents a
considerable competitive advantage in favor of the company. Another
aspect, which deserves highlight is the flexibility of the biodiesel plant
which allows the use of different oleaginous vegetables as raw materials.
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: Approves BRL1.48B Financing for CSA Steel Mill
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a statement
that it has authorized a BRL1.48-billion funding for the
"under-construction five-million-ton-per-year CSA steel mill in Rio de
Janeiro."
Business News Americas relates that CSA is a joint venture between
Brazilian mining and metals group CVRD and German industrial conglomerate
ThyssenKrupp. It would launch operations in 2009.
BNamericas notes that the complex will require total investments of BRL8
billion for CSA and a port to import coal and export the finished steel,
of which Banco Nacional will provide 18%.
Resources from the financing will fund the acquisition of equipment and
machinery from Brazilian suppliers, civil works and other activities,
according to Banco Nacional's statement.
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.
CA INC: Secures US$500 Million Accelerated Share Repurchase Pact
----------------------------------------------------------------
CA Inc. has repurchased approximately 16.9 million common shares, or 3
percent of its outstanding common shares, at a cost of about US$435
million.
The repurchase was executed under an accelerated share repurchase
agreement with a third-party financial institution and was funded with
existing cash. The company is authorized to repurchase up to US$500
million in common shares under the ASR agreement. The ASR is part of the
Company’s previously announced US$2 billion share repurchase plan.
The ASR provides CA with immediate delivery of the common shares. The
third-party financial institution is expected to purchase an equivalent
number of common shares in the open market during the term of agreement.
The initial price of the accelerated share repurchase is subject to an
adjustment based on the volume weighted average price of CA’s common
shares during this period. As a result, the company may receive
additional common shares at the termination of the program. The program
is expected to terminate on or before Dec. 6, 2007. The company does not
plan to make additional share repurchases during this period.
Headquartered in Islandia, New York, CA Inc. (NYSE:CA) --
http://www.ca.com/-- is an information technology management software
company that unifies and simplifies the management of enterprise-wide IT.
Founded in 1976, CA serves customers in more than 140 countries. The
company has operations in Brazil, Indonesia, Luxembourg, Philippines and
Thailand.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 7, 2007, Standard & Poor's Rating Services affirmed its 'BB'
corporate credit and senior unsecured debt ratings on Islandia, New
York-based CA Inc. S&P revised the outlook to stable from negative.
As reported in the Troubled Company Reporter-Latin America on
May 31, 2007, Fitch has affirmed these ratings for CA, Inc.:
-- Issuer Default Rating at 'BB+';
-- Senior unsecured revolving credit facility expiring 2008
at 'BB+';
-- Senior unsecured debt at 'BB+'.
COMPANHIA PARANAENSE: Regulator Orders Firm to Reduce Tariffs
-------------------------------------------------------------
The Brazilian power regulator Aneel said in a statement that it has
ordered Companhia Paranaense de Energia SA to decrease its tariffs,
effective June 24.
Business News Americas relates that residential customers will pay 2.04%
less to Companhia Paranaense.
Industrial clients' bill to the company will have an average rate
reduction of 0.21%, BNamericas states.
Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Parana and has a generating capacity of nearly 4,600
MW, primarily from hydroelectric plants. COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services. The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitely postponed. In response, COPEL is
re-evaluating its corporate structure. The government of Parana
controls about 59% of COPEL.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2006, Moody's America Latina upgraded the corporate
family rating of Companhia Paranaense de Energia aka Copel to
Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its
Brazilian national scale. The rating outlook was stable. This
rating action concludes the review process initiated on
July 26, 2006.
Moody's upgraded thesE ratings:
-- Corporate Family Rating: to Ba2 from Ba3 (Global Local
Currency) and to Aa2.br from A3.br (Brazilian National
Scale);
-- BRL500 million Senior Unsecured Guaranteed Debentures due
2007: to Ba2 from Ba3 (Global Local Currency) and to
Aa2.br from A3.br (Brazilian National Scale); and
-- BRL400 million Senior Secured Guaranteed Debentures due
2009: to Ba1 from Ba2 (Global Local Currency) and to
Aa1.br from A1.br (Brazilian National Scale).
DUERR AG: ATON GmbH Acquires 10.1% Equity Interest
--------------------------------------------------
ATON GmbH notified Duerr AG that it holds 10.1% of the company's shares.
The investment company, founded by Dr. Lutz Helmig, is now Duerr's second
largest shareholder.
The Heinz Duerr family, which still owns 44.2% of the share capital via
Heinz Duerr GmbH and the foundation Heinz und Heide Duerr-Stiftung,
continues to be the largest shareholder of Duerr AG.
ATON acquired 5.0% of the shares of Duerr AG from
Sued-Kapitalbeteiligungs-Gesellschaft mbH, a subsidiary of Landesbank
Baden-Wuerttemberg, whose ownership interest in Duerr is now 5.0%. ATON
acquired the other 5.1% from Kreissparkasse Biberach.
"We welcome the change in the circle of shareholders. We can certainly
profit from the know-how and experience of an industrial holding company
which is active in a wide range of sectors," Duerr AG's CEO Ralf Dieter
commented.
Headquartered in Fulda, Germany, ATON GmbH -- http://www.aton.de/-- is an
investment company, wholly-owned by Dr. Helmig family. It was established
in 2001 and currently has interests in eleven firms in the areas of
applied technology, natural resources and services.
The company's largest affiliate in terms of sales is EDAG AG, which is
active in the areas of automobile development, manufacturing technology
and aerospace. EDAG AG and Duerr AG collaborate on specific projects in
the aerospace sector.
About Duerr
Headquartered in Stuttgart, Germany, Duerr AG --
http://www.durr.com/en-- supplies products, systems, and
services for automobile manufacturing. Its range of products
and services covers important stages of vehicle production. As
a systems supplier, Duerr plans and builds complete paint shops
and final assembly facilities. It also delivers cleaning and
filtration systems for the manufacture of engine and transmission
components as well as balancing systems.
The company has operations in Brazil, China and India.
* * *
As of April 10, 2007, Duerr AG carries Moody's Long-term
Corporate Family rating of B2, Senior Subordinated Debt rating
of Caa1 with Outlook Negative.
Moody's also assigned Loss-Given-Default Rating of LGD5 for
Duerr's 9.75% Senior Subordinated Regular Bond/Debenture Due
2011.
Standard & Poor's assigned Long-Term Foreign Issuer Credit
rating of B to Duerr, its Long-term Local Issuer Credit is at B
with Outlook Stable.
DYNEA CANADA: High Leverage Prompts S&P’s B Corp. Credit Rating
---------------------------------------------------------------Standard &
Poor's Ratings Services assigned its 'B' long-term corporate credit rating
to Mississauga, Ontario-based Dynea Canada Ltd. The outlook is stable.
At the same time, S&P assigned its bank loan and recovery ratings to
Dynea's, and its subsidiary, Bond U.S. Holdings Inc.'s, proposed US$220
million first-lien senior secured credit facility and US$30 million
second-lien senior secured loan. The first lien is rated 'B+', with a
recovery rating of '2', indicating a substantial (70%-90%) recovery of
principal in the event of default. The second lien is rated 'CCC+', with
a recovery rating of '6', indicating an expectation of negligible (0%-10%)
recovery of principal in the event of default.
Proceeds from the bank facilities will be used to fund the purchase of
Dynea International Oy's (B/Watch Dev/--) North American assets by private
equity sponsor Teachers' Private Capital.
"The ratings on Dynea reflect its highly leveraged capital structure,
cyclical and low-margin commodity resin business, and relatively small
size compared with its main competitors," said Standard & Poor's credit
analyst Jatinder Mall. "These risks are partially offset by a strong
market position in the resins and overlays markets, the ability to pass
through incremental raw material costs, and some product and end-market
diversity," Mr. Mall added.
Dynea is a manufacturer of formaldehyde-based adhesive resins and overlays
product, with operations in Canada, the U.S., and Mexico. The company
generates about 57% of its revenues from panelboard resins, and the
overlays segment makes up the balance of revenues. Dynea generates most
of its revenues from the U.S. and Canada. A large portion of the
company's business is in commodity resins, which tend to be low margin and
price-sensitive.
The outlook is stable. Dynea has a highly leveraged capital structure,
but its current ability to pass through high raw material costs and
generate positive cash flows support the ratings. The outlook could be
revised to negative if a downturn in the industry weakens the company's
margins or volumes, or if Dynea can no longer pass through high raw
material costs. In addition, the ratings could be lowered if there are
additional capital costs or delays in construction of the Sexsmith,
Alberta facility. S&P could revise the outlook to positive if Dynea
improves costs and reduces leverage as projected.
Dynea Canada is a subsidiary of Dynea International Oy --
http://www.dynea.com/-- provides adhesion and surfacing solutions. In
2005, Dynea had revenues of EUR1.2 billion. After the transaction Dynea
has 39 production units and some 2,200 employees in 23 countries in
including Malaysia, Ukraine and Brazil.
FRESENIUS MEDICAL: Plans US$500 Million Senior Notes Offering
-------------------------------------------------------------
Fresenius Medical Care AG & Co. KGaA intends to sell approximately US$500
million senior unsecured notes. Proceeds from the offering will be used
to reduce the company’s debts under its senior secured bank credit
facility, short-term debt, and for general corporate purposes. The
company expects to complete the offering at the beginning of July 2007.
The notes will be offered mainly to US institutional investors.
The proposed offering will not be registered under the Securities Act of
1933, but will be offered in the United States pursuant to an exemption
from registration under Rule 144A as well as outside the United States
under Regulation S.
About Fresenius
Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG
(Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS/P) --
http://www.fmc-ag.com/-- provides products and services for
individuals undergoing dialysis because of chronic kidney
failure, a condition that affects more than 1,500,000
individuals worldwide. Fresenius Medical Care also provides
dialysis products such as hemodialysis machines, dialyzers and
related disposable products. Through its network of around 2,194 dialysis
clinics in North America, Europe, Latin America, Asia-Pacific and Africa,
Fresenius Medical Care provides dialysis treatment to around 128,200
patients around the globe. Fresenius AG holds around 37% of Fresenius
Medical Care AG & Co. KgaA's capital.
The company also operates facilities in Australia, Brazil, Canada, China,
France, Korea, Mexico, Portugal and Sweden, among others.
* * *
The company carries Moody's Investors Service's Ba2 corporate family rating.
JAPAN AIRLINES: To Acquire 10 Jets from Embraer
-----------------------------------------------
Empresa Brasileira de Aeronautica SA, widely known as Embraer, said Monday
that it has agreed to sell 10 commercial jets to Japan Airlines
International Company, Limited, the Japan Times reports.
According to the report, Embraer said that the total cost would come to
US$435 million, which includes options to acquire another five aircraft.
Japan Times relates that the Brazilian aircraft manufacturer added that
the first delivery of the 70- to 80-seat jets is scheduled for 2008.
In an Embraer statement grabbed by the Japan Times, it said that "The
Embraer 170 E-Jets will fly for J-Air Corp., a wholly owned JAL
subsidiary, serving the airline's regional network routes throughout
Japan."
Japan Times quotes JAL Group Chief Executive Officer
Haruka Nishimatsu as saying that "the introduction of the Embraer 170 will
enable the JAL Group to promote its optimal aircraft size, depending on
the scale of demand of each domestic route, develop business operations
more efficiently, and increase convenience to customers."
The planned aircraft acquisition is part of JAL's restructuring program,
the report relates.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger of Japan
Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines
flies to the United States, Brazil and France.
* * *
As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services
affirmed its 'B+' long-term corporate credit and issue ratings on Japan
Airlines Corp. (B+/Negative/--) following the company's announcement of
its new medium-term management plan. The outlook on the long-term
corporate credit rating is negative.
As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its
Ba3 long-term debt ratings and issuer ratings for both Japan Airlines
International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating
affirmation is in response to the planned restructuring of the Japan
Airlines Corporation group on Oct. 1, 2006, with the completion of the
merger of JAL's two operating subsidiaries, JAL International and Japan
Airlines Domestic. JAL International will be the surviving company.
Moody’s said the rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt
obligations and expenses for new aircraft have placed it in an unfavorable
financial position. Fitch assigned a BB- rating on the company, which is
three notches lower than investment grade.
NOMURA HOLDINGS: Provides US$230-Mil. Loan to CrimsonPower
----------------------------------------------------------
Nomura Holdings, Inc. said that it provided a US$230 million mezzanine
loan to CrimsonPower Holdings Company, Inc., a joint venture formed by The
Tokyo Electric Power Company, Incorporated and Marubeni Corporation.
The loan, provided via a newly established special purpose vehicle, is
part of a financing arrangement for the acquisition of three power
stations in the Philippines totaling 2,200 megawatts from Mirant
Corporation, an independent US power company. The remainder of the
acquisition financing consists of a US$2.7 billion senior loan by the
Japan Bank for International Cooperation and commercial banks, and equity
financing by TEPCO and Marubeni.
In early 2007, Nomura set up dedicated team of project finance experts in
Tokyo and Hong Kong to work on expanding the firm's project finance
operations. The mezzanine loan for CrimsonPower marks the first deal for
Nomura.
Demand for project finance deals across Asia is expected to increase as
the need for infrastructure development rises on the back of the region's
rapid economic growth. Nomura will focus on creating new investment
opportunities for a broad base of investors via the capital markets by
arranging mezzanine loans, while making it easier for project sponsors to
take on risk and stimulate the market for infrastructure projects in Asia.
About Nomura Holdings
Nomura Holdings, Inc. -- http://www.nomura.com/-- is a securities and
investment banking firm in Japan and have worldwide operations in more
than 20 countries and regions including Japan, the United States, the
United Kingdom, Singapore and Hong Kong and Brazil through its
subsidiaries. Nomura operates in five business segments: Domestic Retail,
which includes investment consultation services to retail customers;
Global Markets, which includes fixed income and equity trading and asset
finance businesses in and outside Japan; Global Investment Banking, which
includes mergers and acquisitions advisory and corporate financing
businesses in and outside Japan; Global Merchant Banking, which includes
private equity investments in and outside Japan, and Asset Management,
which includes development and management of investment trusts, and
investment advisory services.
As of May 11, 2007, Nomura Holdings still carries Fitch Ratings' 'C'
individual rating that was given on April 13, 2006.
NOMURA HOLDINGS: To Announce First Quarter Results on July 25
-------------------------------------------------------------
Nomura Holdings, Inc., plans to announce its operating results for the
first quarter of the fiscal year ending March 31, 2008, at 15:00 JST on
July 25. Financial statements and presentation materials will be
available on the Nomura Holdings Web site shortly after the announcement.
A live audio Web cast of the company's conference call is scheduled to be
delivered via http://nomura.comat:
-- 21:00 (JST)
-- 13:00 (BST)
-- 08:00 (EST)
About Nomura Holdings
Nomura Holdings, Inc. -- http://www.nomura.com/-- is a securities and
investment banking firm in Japan and have worldwide operations in more
than 20 countries and regions including Japan, the United States, the
United Kingdom, Singapore and Hong Kong through its subsidiaries. Nomura
operates in five business segments: Domestic Retail, which includes
investment consultation services to retail customers; Global Markets,
which includes fixed income and equity trading and asset finance
businesses in and outside Japan; Global Investment Banking, which includes
mergers and acquisitions advisory and corporate financing businesses in
and outside Japan; Global Merchant Banking, which includes private equity
investments in and outside Japan, and Asset Management, which includes
development and management of investment trusts, and
investment advisory services.
Nomura Holdings carries Fitch Ratings' 'C' individual rating that was
given on April 13, 2006.
PETROLEO BRASILEIRO: Breaks Production Record in Espirito Santo
---------------------------------------------------------------
Petroleo Brasileiro SA disclosed that its total oil & natural gas
production (Brazil & abroad) was 1% lower than April's mark. Production
capped at 2,269,503 barrels of oil equivalent per day (boe/day) in the
Brazilian and foreign fields last month.
The State of Espirito Santo, Brazil's second biggest oil producer,
trailing only Rio de Janeiro, broke a new daily production record last
week, when it topped-out at 141,700 barrels. According to the report,
this is an expressive volume compared to the average produced in May
(99,100 barrels/day), which had already been 5.7% above the average
achieved in April (93,700 barrels/day). The record-setting Espirito Santo
production was mainly the outcome of platform P-34's good performance in
the Jubarte Field, which operated at top capacity and produced 60,000
barrels per day. Its total production down 1% in May.
Oil and gas production in Brazilian fields totaled 2,024,327 boe/day, also
1% lower than the April average. Meanwhile, the company's total
production abroad (oil & gas) was 245,176 boe/d, 0.6% above the previous
month's. The exclusive average oil production abroad was 130,479 barrels
per day, while gas production topped at 19.5 million cubic meters a day,
constant compared to previous months. Only taking domestic field oil
production into account, the average production in May was 1,761,432
barrels, remaining within the range of Brazilian derivative consumption,
and 11,000 barrels above the average daily demand in 2006.
Brazil's natural gas production averaged 41.8 million cubic meters per
day, stable compared to the previous month's.
The 1% production reduction -- 17,400 barrels below the average achieved
in April -- resulted from the postponement, to May, of scheduled platform
shutdowns in the Campos Basin, which had previously been expected to take
place in February. These shutdowns are mandatory in order for maintenance
to be carried out on the equipment used to operate the platforms.
In addition to the scheduled shutdowns in the Campos Basin, there were
also operating problems in the Sergipe Sea, where the pipeline that
connects the Guaricema and Dourado fields to the mainland broke. There
were also problems in the gas compressor installed on platform P-34. The
power generator that supplies the compressor malfunctioned, and without it
was not possible to lift oil.
Finally, the FPSO-type Sheillan vessel -- a platform that produces,
processes, stores and offloads oil -- experienced technical issues and
didn't produce, throughout May, 20,000 barrels per day. Chartered by
Petrobras, this vessel operates in the Golfinho area, off the Espirito
Santo coast.
Operating problems of this sort are transitory and inherent to the oil
industry. All cases, pipeline and platforms, were satisfactorily and
quickly solved, and the operating situation has been entirely restored.
The P-34 had its maximum operating capacity restored before the month's
end, going back to lifting 60,000 barrels per day.
When the P-52 and P-54 platforms (Roncador Field, in the Campos Basin),
and the Piranema Field platform (Sergipe-Alagoas Basin) go online in the
second half of the year, Petrobras' oil production is expected to reach
the 2-million-barrel-a-day milestone by late 2007. A significant oil
production is guaranteed for June, when new wells will kick their
production off and when the operating problems, which took place in May
will have been fully overcome.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Negotiating Oil Rig Contract with Keppel
-------------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA's press official
told Dow Jones Newswires that it is negotiating a contract with
Singaporean Keppel Corp.'s unit for the construction of a new oil rig.
Dow Jones notes that the P-56 rig will be similar to the P-51 rig, which
Keppel's Brazilian unit Keppel Fels is constructing in consortium with
French oil engineering company Technip SA's unit Technip Engenharia SA.
The cost of the project still needs to be negotiated. The P-51 will cost
US$830 million once it is completed, Dow Jones says, citing Petroleo
Brasileiro's press official.
Petroleo Brasileiro could not tell Dow Jones if P-56 could cost US$1.2
billion as reports in Singapore say. Construction costs of oil rigs for
the firm have increased in recent years due to higher costs for steel and
service providers.
According to published reports, Petroleo Brasileiro could reach a deal
with Keppel by the end of this month.
Dow Jones relates that the P-56 will be in the Marlim Sul field in
Brazil's oil-rich Campos Basin.
Petroleo Brasileiro must hold public tenders for bids for the construction
of most new oil rigs. However, it won't have to hold a tender for the
P-56 as it will be constructed as a copy of the P-51, Dow Jones states,
citing the press official.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors in
Brazil. Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Eyes Possible Biz Opportunities in Qatar
-------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras' president, Jose Sergio Gabrielli de
Azevedo, was in Qatar on June 17 for a series of meetings with local
Government representatives to evaluate business opportunities there.
Qatar is the world's biggest Liquefied Natural Gas producer and holds
nearly 5% of the global natural gas reserves. The entourage led by
Petrobras' president met with the Vice-Prime Minister and also Minister of
Energy & Industry of Qatar, HE Abdullah Bin Hamad Al Attivah, with
Minister of State, Dr. Mohammad Saleh Al-Sada, and with Qatar Petroleum
and RasGas executives.
With Qatar Petroleum International's CEO, Nasser Khalil Al-Jaidah, Jose
Sergio discussed the possibility of Petrobras importing LNG from Qatar and
of entering that Arab country's exploration & production sector. Qatar
Petroleum International also showed interest in discussing joint business
opportunities with other countries and possible participation in
thermoelectric generation in Brazil. The two companies are studying
signing a Memorandum of Understandings to deepen their relationship and
give continuity to the negotiations.
At Petrobras' invitation, a technical delegation from Qatar is expected to
visit Brazil to learn more about the company's operations. The Brazilian
entourage's visit to Qatar was the highlight of the Economy news sections
of the country's main newspapers, such as the Gulf Times, the Qatar
Tribune, The Peninsula, as well as on the Al Jazeera TV network.
In addition to Petrobras' president, the company's Gas & Energy Director,
Ildo Sauer; Executive Manager for Gas & Energy Marketing and Trade, Luiz
Antonio Pereira; Market Supply Alternative Development Coordinator for the
LNG area, Marcio Demori; and New International Business area Managers,
Demarco Jorge and Bassim Dhajah, were also in the Brazilian delegation.
The LNG Project
Two months ago, Petrobras' Board approved the hiring of Golar LNG Ltd. to
charter vessels for the Liquefied Natural Gas terminals in the Guanabara
Bay, Rio de Janeiro, and in Pacem, Ceara. These are two Floating
Regasifying and Storage units that can also be used to transport LNG. One
of the units will be capable of regasifying up to 14 million cubic meters
of gas per day, while the other up to 7 million.
In the same period, the company signed a Master LNG supply Agreement with
Nigeria LNG. A similar agreement was also reached with Algerian
Sonatrach, in addition to an MOU to study, among other projects, a
possible Liquefied Petroleum Gas supply cooperation agreement to supply
the product's import terminals to be deployed in Pacem and in the
Guanabara Bay.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
UNITED AIR: Moody's Rates Class C Certificates at B1
----------------------------------------------------
Moody's Investors Service assigned a Caa1 rating to US$275 million of City
and County of Denver, Colorado Special Facilities Airport Revenue
Refunding Bonds, Series 2007A. In a related action, Moody's also assigned
ratings of Baa2 to the Class A, Ba2 to the Class B and B1 to the Class C
Certificates of the United Air Lines Pass Through Certificates, Series
2007-1.
Moody's affirmed all debt ratings of UAL Corporation and its subsidiaries,
corporate family rating at B2, and the outlook remains stable.
Rating of the Denver Facility Bonds
The Caa1 rating on the Denver Facility Bonds is based on the Special
Facilities and Ground Lease which obligates United to pay sufficient
amounts to the City and County of Denver, Colorado to pay the principal,
premium, if any and interest on the Bonds. In addition, United provides a
direct, unconditional guaranty of full and prompt payment on the Denver
Facility Bonds.
Ratings of the Certificates
The Certificate ratings considers the credit quality of United as obligor,
the value of the aircraft pledged as security, the credit support provided
by the liquidity facilities on the Class A and Class B Certificates, and
the additional structural features of the transaction. The ratings
reflect Moody's opinion of the ability of the Pass Through Trustees to
make timely payment of interest and the ultimate payment of principal at a
date no later than January 2019, the final maturity date. Moody's also
notes that this transaction includes cross-collateralization of the
aircraft securing the individual notes underlying the transaction, which
enhances the potential recovery for investors in the event of default, as
well as a revised waterfall and cross-default at the final maturity date
of the Notes.
Structure of the United Airlines Pass Through Certificates, 2007-1 EETCs
Property of the Pass Through Trust will be Equipment Notes to be issued by
United, which will be secured by a perfected security interest in the
aircraft being financed by this transaction. Each aircraft will be
subject to a separate indenture with a separate loan trustee. It is the
opinion of counsel to United that the Notes will be entitled to benefits
under Section 1110 of the U.S. Bankruptcy Code. Under this provision, if
United fails to pay its obligations under the Notes, the collateral
trustee has the right to repossess any aircraft which have been rejected
by United.
The Certificates are not obligations of, nor are they guaranteed by
United. However, the amounts payable by United under the Notes will be
sufficient to pay all principal and interest on the Certificates when due.
The Class C Certificates rank junior in priority to the Class B
Certificates and the Class B Certificates rank junior to the Class A
Certificates.
Interest on the Class A Certificates and Class B Certificates will be
supported by liquidity facilities intended to pay up to three semi-annual
interest payments in the event United defaults on its obligations under
the Notes. The liquidity facilities do not provide for payments of
principal due, and there is no liquidity facility for the Class C
Certificates. The liquidity provider is Morgan Stanley Senior Funding,
Inc. whose obligations will be unconditionally guaranteed by Morgan
Stanley, which has a Moody's short-term rating of P-1. The liquidity
provider has a priority claim on proceeds from liquidation ahead of any of
Certificate holders and is also the controlling party following default.
Cross Collateralization Feature
The ratings of all Certificates benefit from cross collateralization,
because Moody's believes this feature potentially enhances recovery
prospects. Under the cross collateralization structure, if all aircraft
are sold, then surplus proceeds from the sale of any aircraft are made
available to cover any shortfall due under the Notes related to the sale
of any other aircraft. All surplus proceeds will be retained until
maturity of the financing or the indentures are cancelled. Moody's
believes expected recovery is enhanced because of:
* the number of aircraft,
* that no single aircraft type comprises a substantial
portion of the equipment pool, and
* while there is some correlation in the value of the
aircraft types in the transaction, there is sufficient
diversity to produce the benefit of cross
collateralization. This transaction was accorded the
maximum rating benefit from the existence of cross
collateralization because of the number of aircraft and
the different types of aircraft.
Collateral for the 2007-1 EETC
Proceeds from the sale of the Certificates will be used to purchase Notes
to finance two B767-300ER, four B777-200, four B777-200ER and three
B747-400 aircraft originally delivered to United between 1998 and 2002.
While there is some commonality among these aircraft as they are all
long-haul widebody commercial jets, there are some differences in terms of
their current and future usage which is reflected in their expected
valuations. The B767-300ER is one of the most widely accepted widebody
aircraft among commercial airlines, and is generally used for long-range
flights. The B777-200, while intended for transcontinental, regional and
international routes with cargo capacity similar to that of the B747, has
largely been superceded by the 777-200ER. The B777-200ER has a range about
50% higher than the -200. The B747-400, which has been superceded by
next-generation commercial passenger aircraft, has primary value as a
freighter conversion. Moody's believes the current aircraft values are
supported by particularly strong market conditions, which may be nearing
the peak of the demand cycle. Should a downturn in the demand occur,
Moody's believes the impact on the values of the aircraft in this
transaction operating in passenger configuration would be greater than for
other aircraft types. First, widebody aircraft would likely have less
operational flexibility than narrowbody aircraft in a softer economic
environment, and their use would likely be discontinued sooner. Second,
these aircraft are at or near their economic half-lives. Some models have
been superceded by newer, more efficient aircraft types, which is likely
to generate greater value volatility in an economic downturn. Finally,
the cost of modification of these aircraft to cargo configuration is
significant and potentially prohibitive.
Assignments:
Issuer: Denver (City & County of) CO
-- Senior Unsecured Revenue Bonds, assigned Caa1 (LGD5, 86%)
Issuer: United Air Lines, Inc. 2007-1 Pass Through Trusts
-- Class A Certificates, Assigned Baa2
-- Class B Certificates, Assigned Ba2
-- Class C Certificates, Assigned B1
UAL Corporation, which, through its primary subsidiary United Airlines,
Inc., is one of the largest airlines in the world providing scheduled
passenger service throughout North America, Latin America, Europe and
Asia, is headquartered in Chicago, Illinois.
The airline flies to Brazil, Korea and Germany.
UNITED AIR: S&P Puts Preliminary B Rating on Class C Certs.
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'BBB' rating
to United Air Lines Inc.'s (B/Stable/--) series 2007-1 Class A
pass-through certificates, its preliminary 'BB-' rating to the Class B
certificates, and its preliminary 'B' rating to the Class C certificates.
The expected maturity for the Class A certificates is Jan. 2, 2022, for
the Class B certificates Jan. 2, 2019, and for the Class C certificates
Jan. 2, 2014. The final legal maturities will be 18 months after the
expected maturities for the Class A and Class B certificates only. The
issues are a drawdown under a Rule 415 shelf registration. Final ratings
will be assigned upon conclusion of a legal review of the documentation.
"The preliminary ratings are based on United's credit quality, substantial
collateral coverage by aircraft that are important to the airline's
international operations, and on legal and structural protections
available to the pass-through certificates," said Standard & Poor's credit
analyst Philip Baggaley. Proceeds of the offering are being used to
refinance 2 B767-300ER, 4 B777-200, 4 B777-200ER, and 3 B747-400 widebody
aircraft originally delivered to United over 1998-2002.
The pass-through certificates are a form of enhanced equipment trust
certificate, and benefit from legal protections afforded under Section
1110 of the federal bankruptcy code and, in the case of the Class A and
Class B certificates, by liquidity facilities provided by Morgan Stanley
Senior Funding Inc., guaranteed by Morgan Stanley (A+/Positive/A-1). The
liquidity facilities are intended to cover up to three semi-annual
interest payments, a period during which collateral could be repossessed
and remarketed following any default by the airline. As with other EETCs,
the Class A certificates rank senior to the Class B certificates, which in
turn rank senior to the Class C certificates.
Standard & Poor's criteria for rating EETCs start with the airline's
corporate credit rating and add credit for: The likelihood that airline
would continue to make payments in bankruptcy in order to maintain control
of the aircraft, and,If that is not the case, credit for the possibility
that full payment could be achieved through repossession and sale of the
planes or restructuring of the obligations with the bankrupt airline.
The planes in this transaction are important to United's international
operations, which now represent a greater portion of the airline's
revenues following operational changes and restructuring undertaken in
Chapter 11. United currently has no aircraft on order, and, even when it
does order new widebody aircraft to operate its international routes, the
planes in this transaction, as relatively recent deliveries, would likely
be at lesser risk of being returned to creditors than older planes. In
evaluating collateral quality for an EETC, S&P consider technological
risk, resale liquidity, and diversification of the aircraft. This
transaction was scored somewhat lower on technological risk and resale
liquidity than some other recent EETCs, based on the types of aircraft
collateral. Diversification is a lesser consideration in judging
collateral quality, but the 2007-1 collateral has reasonable diversity.
The 'B' corporate credit rating on United and parent UAL Corp.
(B/Stable/--) reflects United's participation in the price-competitive,
cyclical, and capital-intensive airline industry; pricing pressure from
low-cost carriers in the U.S. domestic market; and an overall highly
leveraged financial profile. These weaknesses are mitigated somewhat by
United's extensive and well-positioned route system and by reductions in
labor costs and financial obligations achieved in bankruptcy. United is
the second-largest U.S. airline, with strong positions in the Midwest and
Western U.S. and on trans-Pacific routes, and a solid position on
trans-Atlantic routes.
The airline flies to Brazil, Korea and Germany.
* BRAZIL: Holding Off Bank of the South Launching
-------------------------------------------------
Venezuela, along with five Latin American governments, has postponed the
execution of an agreement to establish a regional bank that would compete
with the International Monetary Fund and the World Bank.
The Bank of the South was previously set for launching on
June 26, with each member-country contributing equally to its capital base.
Ecuadorian Ministry of Economy told AFP that no new date has been set.
"In principle, the agreement was to be initialed on June 26. However, it
seems that some countries failed to come to terms and the execution will
be delayed for some additional days," an unnamed source was quoted by El
Universal as saying.
The proposed bank's board will be comprised of heads of state of
Argentina, Bolivia, Brazil, Ecuador, Paraguay, and Venezuela.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the IMF and the World Bank,
on much lower rates and better financing conditions.
As previously reported, Brazilian Finance Minister Guido Mantega said that
founding members' contributions would range between US$500 million to
US$300 million.
* * *
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 was stable.
* BRAZIL: Dominican Republic Wants Trade Pact with Nation
---------------------------------------------------------
The Dominican Republic's President Leonel Fernandez is interested to enter
into a strategic trade alliance with Brazil, taking advantage of the Free
Trade Agreement with Central America and the United States, Dominican
Today reports.
Dominican Today notes that President Fernandez proposed for an alliance in
a meeting with the members of the Sao Paulo Industrialists Federation.
The Dominican Republic and Brazil "have been joined by historical" and
cultural relations, "with greater possibilities of development now open,"
Dominican Today states, citing President Fernandez.
* * *
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 was stable.
===========================
C A Y M A N I S L A N D S
===========================
ALLCOURT INVESTMENTS: Final Shareholders Meeting Is on June 28
--------------------------------------------------------------
Allcourt Investments Ltd. will hold its final shareholders meeting on June
28, 2007, at:
CIBC Financial Centre
George Town, Grand Cayman
Cayman Islands
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) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
BANCAJA INTERNATIONAL: Proofs of Claim Must be Filed by June 28
---------------------------------------------------------------
Bancaja International Capital creditors are given until
June 28, 2007, to prove their claims to Richard Gordon and Joshua Grant,
the company's liquidators, or be excluded from receiving any distribution
or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Bancaja International’s shareholders agreed on May 11, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Richard Gordon
Joshua Grant
Maples Finance Limited
P.O. Box 1093
Grand Cayman KY1-1102, Cayman Islands
CABLE & WIRELESS: Deploying SMS Platform in Panama & Caribbean
--------------------------------------------------------------
Cable & Wireless will install a short messaging service or SMS platform
from Irish telecoms solutions company Jinny Software in Panama and the
Caribbean, Jinny Software said in a statement.
Business News Americas relates that Cable & Wireless awarded Jinny
Software contracts to cover the firm's 13 Caribbean operations and its
Panamanian unit by collaborating with the company's equipment provider
Ericsson.
According to BNamericas, the platform for Cable & Wireless Panama offers
an SMS center so the firm can charge prepaid clients of Global System for
Mobile and Time division multiple access technologies for SMS service.
The platform in the Caribbean will also include a content management
function for prepaid client messaging.
The installment of the service indicates a new focus on Latin America for
Jinny Software, which has a small office in Rio de Janeiro for both its
sales staff and those of parent firm Acotel, BNamericas states, citing the
firm's marketing communications manager Eithne Hynes.
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 April 2007, in connection with the implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the corporate families in the Telecommunications, Media
and Technology sector, Moody's
Investors Service 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%
CEMENT HOLDINGS: Proofs of Claim Filing Is Until June 28
--------------------------------------------------------
Cement Holdings Ltd.’s creditors are given until June 28, 2007, to prove
their claims to Buchanan Limited, 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.
Cement Holdings shareholder agreed on May 17, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
CORUS CAPITAL: Proofs of Claim Filing Ends on June 28
-----------------------------------------------------
Corus Capital Pan-Asia Master Fund Ltd.'s creditors are given until June
28, 2007, to prove their claims to DMS Corporate Services Ltd., 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.
Corus Capital’s shareholder 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:
DMS Corporate Services Ltd
Attention: Jenny Suto
Ansbacher House, P.O. Box 1344
Grand Cayman, KY1-1108
Telephone: (345) 946 7665
Fax: (345) 946 7666
FCT INVESTMENTS: Proofs of Claim Filing Ends on June 28
-------------------------------------------------------
FCT Investments Ltd. creditors are given until June 28, 2007, to prove
their claims to Jan Neveril and Richard Gordon, 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.
FCT Investments shareholders agreed on May 17, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Jan Neveril
Maples Finance Limited
P.O. Box 1093
Grand Cayman KY1-1102
Cayman Islands
FERN INVESTMENTS: Proofs of Claim Filing Is Until June 28
---------------------------------------------------------
Fern Investments Ltd.’s creditors are given until June 28, 2007, to prove
their claims to Buchanan Limited, 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.
Fern Investments shareholder agreed on May 17, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
FIRST DOMINION: Proofs of Claim Filing Deadline Is June 28
----------------------------------------------------------
First Dominion Funding II creditors are given until
June 28, 2007, to prove their claims to Wendy Ebanks and
Emile Small, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
First Dominion’s shareholders agreed on May 7, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Wendy Ebanks
Emile Small
Maples Finance Limited
P.O. Box 1093
Grand Cayman KY1-1102
Cayman Islands
FRESH VIEW: Will Hold Final Shareholders Meeting on June 28
-----------------------------------------------------------
Fresh View Holdings Ltd. will hold its final shareholders
meeting on June 28, 2007, at:
CIBC Financial Centre
George Town, Grand Cayman
Cayman Islands
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) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
FRESH VIEW: Proofs of Claim Filing Is Until June 28
---------------------------------------------------
Fresh View Holdings Ltd.’s creditors are given until
June 28, 2007, to prove their claims to Buchanan Limited, 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.
Fresh View’s shareholder agreed on May 17, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
GREAT PRESTIGE: Proofs of Claim Filing Deadline Is June 28
----------------------------------------------------------
Great Prestige Holdings Ltd.’s creditors are given until
June 28, 2007, to prove their claims to Buchanan Limited, 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.
Great Prestige’s shareholder agreed on May 17, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
INNFIELD INVESTMENTS: Proofs of Claim Filing Is Until June 28
-------------------------------------------------------------
Innfield Investments Ltd.’s creditors are given until
June 28, 2007, to prove their claims to Buchanan Limited, 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.
Innfield Investments shareholder agreed on May 17, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
LINDIAN HOLDINGS: Sets Final Shareholders Meeting for June 28
-------------------------------------------------------------
Lindian Holdings Ltd. will hold its final shareholders meeting on June 28,
2007, at:
CIBC Financial Centre
George Town, Grand Cayman
Cayman Islands
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) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
LINDIAN HOLDINGS: Proofs of Claim Filing Deadline Is June 28
------------------------------------------------------------
Lindian Holdings Ltd.’s creditors are given until June 28, 2007, to prove
their claims to Buchanan Limited, 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.
Lindian Holdings shareholder agreed on May 17, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
NEWOAK LTD: Proofs of Claim Filing Ends on June 28
--------------------------------------------------
Newoak Ltd.’s creditors are given until June 28, 2007, to prove their
claims to Buchanan Limited, 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.
Newoak Ltd.’s shareholder agreed on May 17, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
OAKHAVEN INT’L: Proofs of Claim Filing Ends on June 28
------------------------------------------------------
Oakhaven International Ltd.’s creditors are given until
June 28, 2007, to prove their claims to Buchanan Limited, 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.
Oakhaven International’s shareholder agreed on May 17, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
PERU PRIVATISATION: Proofs of Claim Must be Filed by June 28
------------------------------------------------------------
Peru Privatisation Fund Management Services Co. Ltd. creditors are given
until June 28, 2007, to prove their claims to Scott Aitken and Connan
Hill, 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.
Peru Privatisation’s shareholders agreed on May 15, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Scott Aitken
Connan Hill
P.O. Box 1109
George Town
Grand Cayman
Telephone: (345) 949-7755
Fax: (345) 949-7634
PESCADORA LTD: Proofs of Claim Filing Ends on June 28
-----------------------------------------------------
Pescadora Ltd.’s creditors are given until June 28, 2007, to prove their
claims to Royhaven Secretaries Limited, 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.
Pescadora Ltd.’s shareholder agreed on May 14, 2007, to place the company
into voluntary liquidation under The Companies Law (2004 Revision) of the
Cayman Islands.
The liquidator can be reached at:
Royhaven Secretaries Limited
Attention: N A Wilkins
P.O. Box 707
Grand Cayman KY1-1107
Telephone: 945-4777
Fax: 945-4799
SHANDON LTD: Will Hold Final Shareholders Meeting on June 28
------------------------------------------------------------
Shandon Ltd. will hold its final shareholders meeting on
June 28, 2007, at:
CIBC Financial Centre
George Town, Grand Cayman
Cayman Islands
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) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
STRATEGEMA GLOBAL: Sets Final Shareholders Meeting for June 28
--------------------------------------------------------------
Strategema Global Perspectives Fund Ltd. will hold its final shareholders
meeting on June 28, 2007, at 3:00 p.m., at:
Ansbacher House, 2nd Floor
20 Genesis Close
P.O. Box 1344, George Town
Grand Cayman KY1-1108
Cayman Islands
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) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
DMS Corporate Services Ltd.
Attention: Jenny Suto
Ansbacher House, P.O. Box 1344
Grand Cayman KY-1108, Cayman Islands
Telephone: (345) 946 7665
Fax: (345) 946 7666
=========
C H I L E
=========
LIBERTY GLOBAL: Belgian Cable Opts to Buy Shares in Telenet
-----------------------------------------------------------
Liberty Global Inc. said that Belgian Cable Investors (Delaware) GP, which
is controlled by Liberty Global, has exercised options to purchase 18.668
million shares in Telenet Group Holding N.V., the largest cable operator
in Belgium, for a total purchase price of EUR466.7 million (US$626.6
million) or EUR25 per share. The shares will be acquired by Belgian Cable
Investors Affiliate LGI Ventures B.V. The settlement of the exercise will
take place within 10 business days of today unless the exercise is
withdrawn before settlement.
As a result of the current transaction, Liberty Global will increase its
controlling position from 31.32% to 49.70% of the outstanding shares of
Telenet at June 20, 2007. The shares are being purchased from existing
shareholders of Telenet.
Mike Fries, President and CEO of Liberty Global, said, “It was a logical
next step for us to exercise these options given their expiration dates
and terms.”
At the ordinary general meeting of Telenet on May 31, 2007 Liberty
Global’s controlling stake was used to appoint nine directors (out of a
total of 17) nominated by Liberty Global at the board of directors of
Telenet.
Telenet offers cable television, voice and broadband services to
residential customers. At March 31, 2007, Telenet had approximately
3,047,000 revenue generating units including 1,761,000 video RGUs (of
which 281,000 were digital video RGUs), 482,000 voice RGUs and 804,000
broadband Internet RGUs.
About Liberty Global
Headquartered in Englewood, Colorado, Liberty Global Inc. --
http://www.www.lgi.com/-- is an international broadband
communications provider of video, voice and Internet access
services, with consolidated broadband operations in 19
countries, primarily in Europe, Japan and Chile.
Through its indirect wholly owned subsidiary UGC Europe, Inc.,
and its wholly owned subsidiaries UPC Holding B.V. and Liberty
Global Switzerland, Inc., collectively Europe Broadband, Liberty
Global provides video, voice and Internet access services in 13
European countries.
Through Liberty Global's indirect controlling ownership interest
in Jupiter Telecommunications Co., Ltd., the Company provides
video, voice and Internet access services in Japan. Through the
Company's indirect 80%-owned subsidiary VTR GlobalCom, S.A., it
provides video, voice and Internet access services in Chile.
* * *
As reported on April 2, Standard & Poor's Ratings Services
revised its outlook on international cable TV and broadband
provider Liberty Global Inc. to positive from stable.
The outlooks on related entities in the LGI group, including UPC
Broadband Holding and VTR GlobalCom S.A., were also revised to
positive from stable. The ratings on LGI and its related
entities, including the 'B' long-term corporate credit rating on
LGI, were affirmed.
===============
C O L O M B I A
===============
NOVELL INC: Unveils Real-Time Linux Enhancements & Partnerships
---------------------------------------------------------------
Novell Inc. disclosed new enhancements to SUSE(R) Linux Enterprise Real
Time and new partnerships that expand the ecosystem around Novell's low
latency Linux solution. SUSE Linux Enterprise Real Time, the only
enterprise-class, open source real-time operating system offered by an
enterprise Linux distributor, is a high performance, customizable, fully
supported solution for running mission-critical applications that require
deterministic processing and speed. As a result, customers can run their
time sensitive mission-critical applications reliably and predictably,
even under severe system loads, with SUSE Linux Enterprise Real Time.
"SUSE Linux Enterprise Real Time provides customers a flexible, open
standards-based operating system to maximize the performance of their time
sensitive workloads, such as trading applications in the financial
sector," said Ken Barnes, vice president, Business & Planning at Wombat
Financial Software. "The improvements Novell is delivering this summer,
as well as the vision for this technology farther out, makes it clear
Novell intends to continue providing valuable innovations for the capital
markets."
Built on top of SUSE Linux Enterprise's desktop to datacenter platform,
SUSE Linux Enterprise Real Time contains the kernel enhancements,
packages, tools and utilities that create a robust, high performance,
deterministic and low latency operating system. Novell builds SUSE Linux
Enterprise Real Time in conjunction with Concurrent Computer Corporation,
a leading provider of real-time Linux software technology. With real-time
technology, customers can segment portions of their processors, network
bandwidth and other hardware for high-priority mission-critical workloads.
This ensures that these workloads are not interrupted by systems calls
made by lower-priority workloads or system tasks, delivering predictable
performance in time-critical environments.
Product Improvements
Novell will ship a maintenance update for SUSE Linux Enterprise Real Time
in July 2007. This maintenance update delivers new performance
enhancements to the real-time operating system. It inherits the
improvements and enhancements associated with the recently launched
Service Pack 1 for SUSE Linux Enterprise, including new high availability
storage and processor support. This update also incorporates support for
the latest open source InfiniBand software stack, Open Fabrics Enterprise
Distribution
(OFED) 1.2, an emerging industry standard for server and storage
connectivity.
The next generation of SUSE Linux Enterprise Real Time, which is
currently in development, will focus on significantly improving latency
and performance, not only for applications with relatively fewer threads
that can be prioritized and shielded, but also for massively threaded
applications with low latency requirements, such as real time Java
messaging. There is significant innovation around real-time functionality
in the open source community in which Novell is participating, including,
among other things, work on kernel locking optimizations (to reduce busy
wait), priority inheritance, execution of interrupts in kernel threads
with
definable priority and high resolution timers that improve synchronization
and process accounting.
New Partnerships
In support of its real time offerings, Novell also announced
partnerships with key players in the real time arena. These included:
a) Concurrent Computer Corporation – Concurrent's
field-proven NightStar(TM) advanced analysis and debugging
software now supports SUSE Linux Enterprise Real Time from
Novell(R). Novell is now reselling NightStar tools,
offering customers the ability to minimize data latencies,
reduce costs and improve efficiency throughout the data
center.
b) Voltaire -- Novell and Voltaire are delivering a combined
solution to increase transaction rates, lower latency and
improve CPU utilization. The combined solution consists
of SUSE Linux Enterprise Real Time, Voltaire Grid
Backbone(TM) InfiniBand-based switching solutions, OFED
1.2 InfiniBand software, and additional functionality from
Voltaire.
"SUSE Linux Enterprise Real Time delivers tested, enterprise-quality
solutions that result in system-wide near zero latency, from the operating
system to the application layer," said Roger Levy, general manager for
Open Platform Solutions at Novell. "Today's announcement confirms
Novell's leadership position in the real-time market, and is a direct
result of our close collaboration with the open source community. The
leadership of SUSE Linux Enterprise Real Time is reinforced by our
expanded list of partners with whom we are collaborating to deliver new
value to our mutual customers."
Availability
SUSE Linux Enterprise Real Time can be purchased today. The maintenance
update for SUSE Linux Enterprise Real Time will be available in July. The
next generation release of SUSE Linux Enterprise Real Time is currently in
development. As with all SUSE Linux Enterprise products, customers with a
current subscription can upgrade to any released version at any time
without additional charge.
About Novell
Headquartered in Waltham, Mass., Novell, Inc. (Nasdaq: NOVL) --
http://www.novell.com/-- delivers Software for the Open
Enterprise. With more than 50,000 customers in 43 countries,
Novell helps customers manage, simplify, secure and integrate
their technology environments by leveraging best-of-breed, open
standards-based software.
Novell has sales offices in Argentina, Brazil and Colombia.
* * *
Novell, Inc.'s Subordinated Debt carries Moody's Investors
Service's 'B1' rating.
SOLUTIA INC: Wants Equistar & Millenium Settlements Approved
------------------------------------------------------------
Equistar Chemicals LP and Millenium both supply Solutia Inc.
with chemical products and raw materials that Solutia would
otherwise have a significant difficulty obtaining for its Nylon
and Saflex Businesses.
Equistar is a wholly owned subsidiary of Lyondell Chemical
Company, which is among North America's largest independent,
publicly traded chemical company. Equistar operates two
chemical-producing units as a guest at Solutia's chemical plant
at Chocolate Bayou in Alvin, Texas.
Millenium was purchased by Lyondell in 2004 and is a wholly owned
subsidiary of Lyondell.
Contracts with Suppliers
(1) Equistar
Solutia relates that the most critical among the raw materials is
propylene, which Equistar supplies to its Chocolate Bayou plant pursuant
to a chemical grade propylene sales agreement, dated January 1, 1999, as
amended. Because of the importance of their relationship and desire to
continue doing business with each other, Solutia, Equistar and Millenium
have reached an agreement that enables Solutia to assume the amended
Propylene Agreement and continue to receive the chemical products and raw
materials it needs from Equistar and Millenium.
Equistar also leases land at the Chocolate Bayou Plant from
Solutia pursuant to a real estate lease, effective October 16,
1981, between Solutia's predecessor, Monsanto Company, and
Equistar's predecessor-in-interest, Conoco, Inc.
To minimize Solutia's operational costs at the Chocolate Bayou
Plant, Solutia and Equistar entered into an amended and restated
utilities and services agreement, effective September 30, 1999.
The U&S Agreement governs Solutia's provision of certain site
services and utility feeds to Equistar, including compressed air,
nitrogen, electricity, treated water and the operation of a barge dock
facility.
In addition to the Executory Contracts, Equistar and Solutia were also
parties to certain chemical supply contracts, pursuant to which Equistar
supplied Solutia with, among other things,
ethanol, methanol and benzene; and benzene sales contract,
effective Jan. 1, 2003.
Solutia and Equistar have agreed to the terms of a new benzene
sales contract -- amended Benzene Sales Contract.
(2) Millenium
Solutia purchased vinyl acetate monomer from Millenium pursuant
to a vinyl acetate monomer agreement, dated January 1, 1985,
until its expiration on December 31, 2004.
On January 1, 2005, both entered into a certain VAM sales
contract as a replacement for the Original VAM Contract. Solutia uses VAM
in the production of its Saflex(R) brand windshield and architectural
glass interlayer.
Dispute
Jonathan S. Henes, Esq., Kirkland & Ellis LLP, in New York, says
that because of the breadth and complexity of their relationship, various
commercial disputes often arise between Solutia and Equistar in connection
with the Contract and the Supply Contracts. Some of the disputes relate
to the Propylene
Agreement.
At various times from January 2001 to July 2005, there were
certain inaccuracies in the meter that measured volume of
propylene Equistar delivered to Solutia. As a result of the
inaccuracies, Solutia contends that it paid for more than it
actually received. It sought a US$925,036 refund from Equistar.
Solutia has also claimed entitlement to certain refunds based on
certain years' annual average weighted purity -- calculated based on the
ratio of propylene molecules to molecules of other
chemicals in the product delivered. Solutia believes that is
owed a purity credit of US$1,373,228 for propylene delivered
through December 31, 2006.
Assumption of Contracts
To facilitate their continued negotiations, Solutia and Equistar
entered into a series of bridge agreement extending the term of
the Propylene Agreement, and adjusting the price, to allow them
to continue to negotiate the terms of the amended Propylene
Agreement, resolve outstanding disputes and enter into other
commercial agreements between the parties.
These negotiations resulted in Solutia and Equistar reaching
agreement on the Amended Propylene Agreement and the settlement
agreement between Solutia, Equistar and Millenium.
The Amended Propylene Agreement salient terms include:
-- the initial term is through December 31, 2010. However,
there is an evergreen provision pursuant to which the
Amended Propylene Agreement would renew for 2-year periods
unless terminated by either party on two years' notice. To
terminate, Equistar or Solutia must provide the other party
with two years' written notice prior to December 31, 2010,
or any subsequent December 31 anniversary;
-- highly competitive pricing and commercial terms that are
equal to or better than terms Solutia would expect to
receive in the absence of the Amended Propylene Agreement.
The pricing is consistent with the pricing contained in a
series of bridging agreements that have been in effect
since Jan. 1, 2007;
-- Solutia has the right to purchase and store excess amounts
of propylene, which would provide it more supply security
when market conditions are tight and allow Solutia to take
advantage of price hedging;
-- Equistar may adjust its price for a limited quantity of
propylene, or allow the affected quantity to be released
from the contract if, due to significant change in market
conditions, Solutia presents a competitive offer for the
purchase of that quantity of propylene at a lower price and
on similar terms from a different propylene supplier;
-- if either party plans a substantial restructuring reduction
in the production of propylene or usage of propylene, it
may elect a reduction n sale/purchase of propylene by
providing advance notice. The reduction must be in
increments over two years with a limit on the circumstances
that will justify the reduction, and on the total quantity
that can be reduced using the provision; and
-- Equistar will provide Solutia with a higher maximum credit
limit than it has been providing Solutia since prior to
the commencement of the Debtors' Chapter 11 cases.
Solutia also agreed to assume the Real Estate Lease, without
modifications, and to amend and assume the U&S Agreement, with
salient terms including:
-- the term is extended to Dec. 31, 2010, to align it with
the Amended Propylene Agreement;
-- the U&S Agreement and the Amended Propylene Agreement
contain cross termination rights. If one party gives the
other written notice to terminate either agreement, the
other party can terminate the other agreement; and
-- a performance monitoring system is provided to define
certain performance targets covering areas of reliability,
quality, environmental and administrative.
The Amended Benzene Sales Contract will be assumed to ensure that Solutia
has a secure supply source of the cyclohexane grade
benzene.
As part of the settlement agreement and Solutia's payment of
Equistar allowed cure claim, Solutia and Equistar will enter into a
certain letter agreement dated June 7, 2007. Pursuant to the Credit
Agreement, Equistar will provide Solutia with payment
terms for the propylene supplied pursuant to the Amended
Propylene Agreement that are better than those in place
prepetition.
Mr. Henes notes that the Credit Agreement:
-- contemplates that Equistar will provide Solutia with a
US$25,000,000 credit line for Solutia's purchases from
Equistar and Millenium;
-- Equistar has agreed to provide Solutia with an additional
US$25,000,000 credit line, for a total of up to
US$50,000,000, contingent upon Equistar being able to
obtain put option credit assurance through the financial
services market on commercially reasonable terms. Equistar
and Solutia will share the cost of obtaining the Credit
Assurance equally; and
-- will provide Solutia with approximately US$43,000,000 of
additional liquidity that Solutia can use for significant
additional working capital flexibility and a meaningful
reduction of its interest expense.
Claims
Equistar filed Claim No. 5625 against Solutia for US$6,013,617,
which is premised upon prepetition amounts Solutia allegedly owed pursuant
to Equistar Contracts.
Pursuant to a reclamation demand letter, dated Dec. 17, 2003, and a
supplemental letter, dated Dec. 19, 2003, Equistar asserted a total of
US$6,539,394 for shipments of goods between Dec. 7, 2003, and Dec. 16,
2003.
Millenium filed Claim No. 1041, amended by Claim No. 14733,
asserting US$757,004 against Solutia. Solutia does not dispute the
Millenium Prepetition Claim.
Settlement Agreement
Mr. Henes tells the U.S. Bankruptcy Court for the Southern
District of New York that the Settlement Agreement will
resolve the Metering Error Claim; Purity Credit; and the
Millenium Prepetition Claim. Specifically:
-- the Metering Error Claim will be set off and deducted from
the Equistar Prepetition Claim, reducing the claim by
US$925,036;
-- US$799,938 of the Purity Credit Claim will be set off
against the Millenium Prepetition Claim, as well as the
portion of the Equistar Prepetition Claim not related to
either the Contracts nor included in Equistar's US$42,934
reclamation claim; and
-- the remaining portion of the Purity Credit Claim will be
set off against the Equistar Prepetition Claim, reducing it
by an additional US$573,290.
Pursuant to the Settlement Agreement, the amount of the Equistar
Prepetition Claim allowed as a cure claim will be US$4,472,357,
Mr. Henes says.
Equistar has alleged that pursuant to the terms of the Propylene
Agreement, it is entitled to be paid interest at the rate of 18%
on any unpaid amounts related to the Propylene Agreement.
Equistar has agreed to waive its claim for interest through the
settlement effective date, and the amount of the Equistar Allowed Cure
Claim does not include the interest.
Solutia will pay the Equistar Allowed Cure Claim in full within
five business days of the settlement effective date. Solutia's
obligation to pay the Equistar Allowed Cure Claim is conditioned
upon the Credit Agreement being effective, Mr. Henes informs the
Court.
Moreover, Solutia has agreed to withdraw and dismiss the
adversary proceedings it commenced against Equistar and Millenium with
prejudice. In the Equistar Adversary, Adversary Proceeding No. 05-3348,
Solutia sought to recover US$46,444,743 in potential preferential
transfers. Solutia sought to recover US$5,870,293 in potential
preferential transfers from Millenium in Adversary Proceeding No. 05-3349.
Mr. Henes asserts that Solutia should be authorized to enter into the
settlement agreement because:
* the assumption of executory contracts will enable Solutia
to continue to receive the propylene it needs to
manufacture acrylonitrile -- AN, which is the first step in
the multiple-step nylon manufacturing process chain that
spans four different Solutia plant sites -- on favourable
terms and reduce its fixed costs at the Chocolate Bayou
Plant;
* pursuant to the Settlement Agreement, Equistar and
Millenium will provide Solutia with credit terms that will
increase its liquidity by up to US$43,000,000; and
* it enables Solutia, Equistar and Millenium to amicably
resolve various disputes on favourable terms without the
need for protracted litigation.
Solutia seeks the Court's authority to enter into the Settlement
Agreement and assume the Executory Contracts, as amended.
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. The Court is set to consider
approval of the Disclosure
Statement describing Solutia’s First Amended Reorganization
Plan on July 10, 2007. Objections to the Disclosure Statement,
if any, are due on June 28, 2007. The Debtors' exclusive
period to file a plan expires on July 30, 2007. (Solutia
Bankruptcy News, Issue No. 89; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
SOLUTIA INC: Recorded June 1 to June 15 Claim Transfers
-------------------------------------------------------
The Bankruptcy Clerk of the U.S. Bankruptcy Court for the
Southern District of New York recorded these claim transfers
from June 1, 2007, to June 15, 2007:
Face Amount
Transferor Transferee Claim No. of Claims
---------- ---------- --------- ---------
Allied Sales & Hain Capital 2330 US$45,487
Service Co. Holdings, LLC
Allied Sales & Hain Capital 2331 3,372
Service Co. Holdings, LLC
Altenahr Group Ltd. Argo Partners - 3,736
Andon Specialties Argo Partners - 3,652
Inc.
Applied Thermal Fair Harbor - 3,529
Capital, LLC
Systems Inc.
Blue Ridge Grain & Argo Partners 14629 8,945
Marketing Inc.
Bobcat of Greater Debt Acquisition - 790
Springfield Company of
America V, LLC
BRI Inc. Contrarian - 24,047
Funds, LLC
Bruggemann Chemical Argo Partners 1263 22,605
U.S.
Brusco Rich Contrarian - 204
Funds, LLC
Brusco Rich Contrarian 3778 24,065
Funds
Burgess Manning Inc. Debt Acquisition 1196 408
Company of
America V, LLC
Calabrian Corp. Hain Capital 1236 28,672
Holdings, LLC
Campbell, Campbell Argo Partners - 20,701
& Edwards PC
Carlson-Dimond & Fair Harbor 929 2,892
Wright Inc. Capital, LLC
Central Machine Hain Capital 1888 21,858
Works Inc. Opportunities,
LLC
Chattowah Open Hain Capital 1927 24,007
Land Trust Holdings, LLC
Cintas Corporation Fair Harbor - 5,490
Capital
Cobalt Electric Inc. Debt Acquisition 477 250
Company
Compressors Argo Partners - 2,668
Engineering Corp.
De Kalb Feeds Inc. Fair Harbor - 2,516
Capital
Dillon Supply Co. Argo Partners 1210 4,288
Fluid Engineering Fair Harbor - 5,740
Inc. Capital, LLC
Frilot Partridge Liquidity - 25,989
Kohnke & Clements Solutions, Inc.
George Rozelle & Debt Acquisition - 2,422
Associates Inc. Company
George Rozelle & Debt Acquisition - 1,874
Associates Inc. Company
Gulf City Body & Liquidity 3597 5,600
Trailer Works Inc. Solutions
Hunter Assoc Labs Liquidity 3355 5,743
Solutions
Hyspan Precision Fair Harbor - 8,624
Products Inc. Capital
Ionics Incorporated Debt Acquisition - 600
Company
JV Industrial Ore Hill Hub 319 467,693
Companies, Ltd. Fund, Ltd.
Lummus Corporation Fair Harbor - 6,544
Capital
Mallinckrodt, Inc. Hain Capital 974 66,134
Holdings, LLC
McNaughton-McKay Fair Harbor 4460 2,499
Electric Co. Capital
Metalforms Hain Capital 604 118,433
Incorporated Holdings, LLC
Mitchell Engineering Fair Harbor 4489 2,000
Inc. Capital
Penske Truck Leasing Liquidity - 1,157
Co. LP Solutions
Precision Sierra Asset - 2,943
Electronics Management
Printing Partners Liquidity - 5,340
Solutions
Promac, Inc. Sierra Asset - 39,732
Management
Riviera Utilities Argo Partners 3696 284,054
Royalty Products Debt Acquisition 1129 1,540
Company Company
S. R. Hansen & Liquidity - 9,375
Associates Solutions
Safety Source Inc. Debt Acquisition - 2,674
Company
Search Enterprises Argo Partners 6189 14,375
South, Inc.
Seaway Mechanical Hain Capital 1208 89,127
Contractors Inc. Holdings, LLC
Southern Technical CVI GVF (Lux) - 149,548
Services Inc. Master S.a.r.l.
Southwest Electric Hain Capital 2040 43,049
Co. Holdings, LLC
Spectrum Systems Debt Acquisition 737 2,231
Inc. Company
Sun Valley Fire Debt Acquisition 856 1,228
Equipment Company
Sun Valley Fire Debt Acquisition 864 330
Equipment Company
Tidland Corporation Liquidity 3784 2,739
Solutions
Town Hall Archery Liquidity - 1,781
Solutions
Unisource Worldwide, Contrarian 439 1,516
Inc. Funds
Unisource Worldwide, Contrarian 11569 114,637
Inc. Funds
Unisource Worldwide Debt Acquisition 439 1,516
Inc. Company
Vigilar Liquidity - 3,479
Solutions
Wal-Tech Marine Liquidity 1607 8,682
Inc. Solutions
Liquidity Solutions is doing business as Revenue Management.
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. The Court is set to consider
approval of the Disclosure
Statement describing Solutia’s First Amended Reorganization
Plan on July 10, 2007. Objections to the Disclosure Statement,
if any, are due on June 28, 2007. The Debtors' exclusive
period to file a plan expires on July 30, 2007. (Solutia
Bankruptcy News, Issue No. 89; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* COLOMBIA: Setting Up Oil Price Stabilization Fund
---------------------------------------------------
Colombia's news agency SNE reports that the government is setting up an
oil price stabilization fund to "cushion" oil prices in Colombia from
unexpected increases on the global markets.
Business News Americas relates that the fund is included in the national
development plan.
The Colombian congress already ratified the fund and it will be passed to
the president for final approval. The finance ministry would administer
the fund, which would receive financing from state-owned oil firm
Ecopetrol's current oil stabilization fund, BNamericas states.
As reported in the Troubled Company Reporter-Latin America on
June 15, 2007, Standard & Poor's Ratings Services assigned its 'BB+'
long-term senior unsecured rating to the Republic of Colombia's proposed
2027 Global Titulos de Tesoreria bond, a bond denominated in Colombian
pesos but payable in US dollars.
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Keen on Strategic Trade Pact with Brazil
--------------------------------------------------------------
Dominican Today reports that the Dominican Republic's President Leonel
Fernandez is interested to enter into a strategic trade alliance with
Brazil, taking advantage of the Free Trade Agreement with Central America
and the US.
Dominican Today notes that President Fernandez proposed for an alliance in
a meeting with the members of the Sao Paulo Industrialists Federation.
The Dominican Republic and Brazil "have been joined by historical" and
cultural relations, "with greater possibilities of development now open,"
Dominican Today states, citing President Fernandez.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Moody's Investors Service upgraded the Dominican
Republic government's foreign- and local-currency bond ratings
to B2 from B3. The Dominican Republic's foreign-currency
country ceiling was upgraded to Ba3 from B1. The country's
ceiling for foreign-currency bank deposits was also upgraded to
B3 from Caa1. Moody's said all ratings have stable outlook.
=============
E C U A D O R
=============
GENERAL MOTORS: Plans to Sell 100,000 Chevrolets in Germany
-----------------------------------------------------------
General Motors Corp. intends to quadruple sales of its Chevrolet brand
cars in Germany within seven years, Die Welt newspaper quotes the
division's manager as saying, Reuters reports.
"In the next six to seven years we want to reach a sales level of 100,000
cars,” Chevrolet Germany Managing Director Peter Sommer told the paper,
Reuters notes. Mr. Sommer added that Chevrolet plans to increase the
number of dealers in Germany over the next two years to between 350 and
360, from 300 now, and the number of outlets to 600, from 450.
Chevrolet's European sales rose 15.6 percent in 2006 to more than 341,000
cars, including 23,132 in Germany, helping to push General Motors' overall
European sales over the 2 million mark for the first time, Reuters
relates.
About General Motors
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's
largest automaker and has been the global industry sales leader for 76
years. GM currently employs about 280,000 people around the world. GM
manufactures its cars and trucks in 33 countries. General Motors has
Asia-Pacific operations in India, China, Indonesia, Japan, the
Philippines, among others. It has locations in European countries
including Belgium, Austria, and France. In Latin America, the company
maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador,
Venezuela, Paraguay and Uruguay.
In 2006, nearly 9.1 million GM cars and trucks were sold globally under
these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER,
Opel, Pontiac, Saab, Saturn and Vauxhall.
As of March 31, 2007, GM's balance sheet showed a stockholders' deficit of
US$4,347,000,000, compared to a positive equity of US$15,779,000,000 at
March 31, 2006.
* * *
In May 2007, Fitch Ratings has downgraded General Motors Corporation's
senior unsecured debt rating to 'B-/RR5' from 'B/RR4'. GM's Issuer
Default Rating remains at 'B' and is still on Rating Watch Negative (along
with the other outstanding ratings) by Fitch following the company's
announcement that it will be raising US$4.1 billion in secured financing
and US$1.1 billion in senior unsecured convertible securities.
The US$4.1 billion 364-day facility, to be secured by GM's common equity
holdings in GMAC, will be assigned a rating of 'BB/RR1', while the senior
unsecured convertible securities will be rated 'B-/RR5'.
GENERAL MOTORS: Prepares Fuel Cell Technology for Future Output
---------------------------------------------------------------
General Motors Corp. is moving more than 500 fuel cell experts from
advanced development laboratories to core engineering functions to prepare
this technology for future production.
More than 400 fuel cell engineers will report to GM’s Powertrain Group to
begin production engineering of fuel cell systems. Another 100 will
transfer to GM’s Global Product Development organization to start
integrating fuel cells into future company vehicles. Finally, more than
150 fuel cell scientists and program support will remain as part of GM’s
Research and Development center to continue advanced research in hydrogen
storage, fuel cells and program commercialization.
The transition is aimed at expediting the company’s efforts to produce
vehicles that displace petroleum through energy diversity.
"Eight years ago we said that hydrogen fuel cell electric vehicle
technology could make a major contribution to solving the energy and
environmental challenges facing the automobile industry," said Larry
Burns, GM vice president, Research and Development. "Today’s announcement
signals another important milestone as we move fuel cell vehicles closer
to future production."
GM shared details about its fifth-generation fuel cell system technology
when it unveiled the fuel cell-powered E-Flex version of the Chevrolet
Volt at the Shanghai Auto Show in April. This latest system is half the
size of its predecessor, yet provides the same power and performance.
GM’s fourth-generation system currently powers the Chevrolet Sequel and
Equinox Fuel Cell vehicles. The Sequel recently went into the record
books as the first electrically-driven fuel cell vehicle to achieve more
than 300 miles on one tank of hydrogen, in and out of traffic on public
roads, while producing zero emissions. The Chevrolet Equinox Fuel Cell
will be launched later this year as part of Project Driveway, which will
place more than 100 hydrogen fuel cell vehicles with consumers in New
York, Washington, D.C. and Los Angeles.
"Moving our fuel cell experts from advanced development laboratories to
our core engineering organizations highlights our strong commitment to
developing electrically-driven vehicles using diverse energy sources" said
Tom Stephens, GM Group vice president of Global Powertrain.
Leading the fuel cell engineering team is Dr. J. Byron McCormick,
currently executive director, GM Fuel Cell Activities. He will report
simultaneously to Dan Hancock, GM Powertrain Vice President, Global
Engineering, and John Buttermore, GM Powertrain Vice President, Global
Manufacturing. McCormick has been working on electric and fuel cell
propulsion system research and development for more than 30 years. He was
instrumental in the development of the EV-1 electric vehicle, and during
the past 10 years, has led the GM fuel cell activities team to becoming
the world’s leader in fuel cell technology.
This realignment is yet another initiative in GM’s commitment to displace
petroleum usage in the auto industry through a range of propulsion
alternatives, including:
-- E85-capable biofuel vehicles -- GM is a leading producer
with more than 2 million on the road today
-- GM’s 2-mode hybrid system for large city buses
-- GM’s Hybrid System in the Saturn Vue Green Line and Saturn
Aura Green Line
-- Coming this fall, GM’s 2-mode hybrid system in the
Chevrolet Tahoe and GMC Yukon full-size SUVs, which
provides a more than 25-percent improvement in fuel
economy to what is already the industry’s most fuel
efficient large SUVs, with no compromises in performance
or towing capability
-- Due next year, a front-wheel-drive 2-mode Saturn Vue Green
Line that is expected to deliver up to a 45-percent
improvement in combined city and highway fuel economy
compared with the current non-hybrid Vue, based on current
federal test procedures
-- Plans to produce a plug-in version of the 2-mode hybrid
Vue Green Line that has the potential to achieve double
the fuel efficiency of any current SUV
Additionally, GM provides more vehicles that achieve 30 mpg on the highway
than any other manufacturer in the U.S. market. GM is also the first
automotive member to join the U.S. Climate Action Partnership (USCAP), a
group of global companies and non-governmental organizations formed to
support an economy-wide, market-driven approach to reducing carbon
emissions.
About General Motors
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's
largest automaker and has been the global industry sales leader for 76
years. GM currently employs about 280,000 people around the world. GM
manufactures its cars and trucks in 33 countries. General Motors has
Asia-Pacific operations in India, China, Indonesia, Japan, the
Philippines, among others. It has locations in European countries
including Belgium, Austria, and France. In Latin America, the company
maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador,
Venezuela, Paraguay and Uruguay.
In 2006, nearly 9.1 million GM cars and trucks were sold globally under
these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER,
Opel, Pontiac, Saab, Saturn and Vauxhall.
As of March 31, 2007, GM's balance sheet showed a stockholders' deficit of
US$4,347,000,000, compared to a positive equity of US$15,779,000,000 at
March 31, 2006.
* * *
In May 2007, Fitch Ratings has downgraded General Motors Corporation's
senior unsecured debt rating to 'B-/RR5' from 'B/RR4'. GM's Issuer
Default Rating remains at 'B' and is still on Rating Watch Negative (along
with the other outstanding ratings) by Fitch following the company's
announcement that it will be raising US$4.1 billion in secured financing
and US$1.1 billion in senior unsecured convertible securities.
The US$4.1 billion 364-day facility, to be secured by GM's common equity
holdings in GMAC, will be assigned a rating of 'BB/RR1', while the senior
unsecured convertible securities will be rated 'B-/RR5'.
=====================
E L S A L V A D O R
=====================
* EL SALVADOR: State Firm Concludes Plant Modernization Program
---------------------------------------------------------------
El Salvador's state-owned power firm Comision Ejecutiva Hidroelectrica del
Rio Lempa's spokesperson Ramon Moreno told Business News Americas that it
has concluded a US$64.4-million plant upgrade program.
According to BNamericas, Mr. Moreno said that the program was aimed at
Comision Ejecutiva's four hydroelectric plants:
-- Guajoyo,
-- Cerron Grande,
-- 5 de Noviembre, and
-- 15 Septiembre.
The upgrade was also for the plants' 10 generation units, BNamericas says,
citing Mr. Moreno.
BNamericas notes that the program was launched in 1999. It concluded with
the US$15-million restoration of the 157-megawatt 15 de Septiembre plant,
which increased the plant's capacity to 23.4 megawatts.
The Guajoyo plant's capacity was raised to 19.7 megawatts from 15
megawatts. The 5 de Noviembre plant can now make 99.4 megawatts of power
from 92.4 megawatts, while Cerron Grande can now generate 170 megawatts
from 135 megawatts, BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Fitch Ratings affirmed these ratings on El
Salvador:
-- Foreign and Local Currency Issuer Default Ratings
at 'BB+';
-- Short-term Issuer Default Rating at 'B'; and
-- Country Ceiling at 'BBB-'.
Fitch said the rating outlook was stable.
=================
G U A T E M A L A
=================
GLOBAL CROSSING: Picks Alcatel-Lucent for Maintenance Services
--------------------------------------------------------------
Global Crossing Ltd. has selected Alcatel-Lucent to reduce their global
network maintenance costs and improve network operating efficiencies.
Alcatel-Lucent will oversee the maintenance of optical and transport
equipment for Global Crossing, by providing technical support, repair,
field maintenance and program management services.
"By choosing Alcatel-Lucent as one of our providers to oversee portions of
our network maintenance, we are able to streamline network operations and
reduce costs with a common set of processes and a minimized set of
interfaces," said Dan Enright, Global Crossing's executive vice president
of global operations. "Alcatel-Lucent has the global assets and expertise
necessary to support the maintenance demands of our global IP network as
they have done in the past."
Global Crossing joins a prestigious roster of service providers around the
world that are leveraging Alcatel-Lucent's expertise to manage their
complex communications systems, ensuring the quality and reliability of
their networks and lowering operating and capital expenditure costs.
Alcatel-Lucent has multi-vendor, multi-technology maintenance experience
spanning more than 1,600 products from nearly 300 suppliers.
"This agreement underscores Alcatel-Lucent's breadth of experience in
managing complex, multi-vendor communications networks," said John Meyer,
president for Alcatel-Lucent's Services business. "Service providers have
begun to realize the operational importance and cost-savings of having a
single point of contact for maintaining and managing today's complicated
networks. Alcatel-Lucent's network services organization is one of the
most experienced in the industry. That experience, backed by the network
expertise of Bell Labs, gives us a competitive advantage unrivalled in
this space."
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to deliver voice,
data and video communication services to end users. Alcatel-Lucent
maintains operations in 130 countries, including, Austria, Germany,
Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica,
Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Australia,
Indonesia, Brunei and Cambodia.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their
merger transaction, and began operations as a communication solutions
provider under the name Alcatel-Lucent on Dec. 1, 2006.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
(NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, and the United Kingdom. Global Crossing
serves many of the world's largest corporations, providing a
full range of managed data and voice products and services. The company
filed for chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No.
02-40188). When the Debtors filed for protection from their creditors,
they listed US$25,511,000,000 in total assets and US$15,467,000,000 in
total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003.
At Dec. 31, 2006, Global Crossing Ltd.'s balance sheet showed a
US$195 million stockholders' deficit, compared to a US$173 million
stockholders' deficit at Dec. 31, 2005.
=========
H A I T I
=========
TRILOGY INT'L: Moody's Affirms B2 Corporate Family Rating
---------------------------------------------------------
Moody's Investors affirmed Trilogy International Partners LLC's
B2 corporate family and B2 senior secured rating on its
announcement that it would upsize its planned term loan to US$250 million
from US$200 million, using the incremental proceeds for general corporate
purposes. Moody's does not believe the resulting modest increase in
leverage (approximately half an EBITDA turn) materially alters the
company's credit profile, however notes that Trilogy's initial adjusted
leverage
of roughly 3x remains close to our previously defined downgrade
criteria. Accordingly, Moody's believe Trilogy's rating would unlikely
hold should additional debt proceeds be raised, or should leverage fail to
reduce comfortably below 3x by mid 2008. The ratings reflect a B2
probability of default and a loss-given-default assessment of LGD 4, 51%
on the senior secured term loan. The outlook remains stable.
Ratings Affirmed:
-- Corporate Family Rating B2
-- Probability of Default Rating B2
-- Senior Secured Term Loan B2, LGD 4, 51%
The B2 corporate family rating reflects Moody's view that Trilogy's
political/ regulatory risks are considerable given essentially all of its
revenues are derived from wireless operations in emerging economies
(Haiti, Bolivia, and the Dominican Republic), with the majority of its
(EBITDA -- Capex) cash flows generated from Haiti, a region with a history
of significant instability. The rating also considers that a
reasonable portion of the company's cash flows are generated in U.S.
Dollars, which partially mitigates foreign exchange risks arising from
having to service U.S denominated debt obligations with local cash flows,
which can't be effectively hedged.
The rating also considers Trilogy's favorable growth prospects within each
of these three countries given the relatively low levels of wireless
penetration currently, its favorable competitive position demonstrated by
a current blended market share of roughly 20% and a modest diversification
of country risk. Finally, the B2 rating incorporates Moody's opinion that
the company's initial adjusted total leverage of roughly
3x may reduce to under 2.5x by the end of 2008 but that free cash flow
through the next couple of years is unlikely to be robust as capital
expenditures remain elevated.
Based in Bellevue, Washington, Trilogy International Partners LLC provides
wireless communication services to 1.8 million subscribers in Haiti,
Dominican Republic and Bolivia.
=============
J A M A I C A
=============
AIR JAMAICA: Will Enter Into Closer Ties with Regional Airlines
---------------------------------------------------------------
Air Jamaica told Radio Jamaica that it will be entering into closer
alliances with regional airlines.
Air Jamaica will be "rationalizing its schedules to compliment those of
other airlines," Radio Jamaica notes, citing Air Jamaica Chief Executive
Officer Mike Conway. According to him, the will significantly lessen
waiting time for travelers between connecting flights.
Air Jamaica's Sales and Marketing Senior Vice President Paul Pennicooke
told RJR News Center that this would make sure that Air Jamaica will
"route its passengers to destinations" where it no longer flies to.
Air Jamaica is mulling a "region-wide frequent flyer program" to let
clients earn "miles on one carrier and use them to travel on any other
Caribbean airline," 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.
* * *
As reported in the Troubled Company Reporter-Latin America on June 12,
2007, Moody's Investors Service assigned a rating of B1 to Air Jamaica
Limited's guaranteed senior unsecured notes.
DYOLL INSURANCE: Policyholders To Vote on Payout Scheme
-------------------------------------------------------
Dyoll Insurance Company's policyholders will meet at the Jamaica
Conference Center to vote on the payout scheme, Radio Jamaica states.
Radio Jamaica relates that once the scheme of arrangement is ratified,
some US$305 million will be distributed to policyholders left with
unsettled claims when Dyoll Insurance collapsed over two years ago.
The meeting's organizers have implemented measures to prevent any trouble
before the voting. They issued a press release saying that no sharp
objects or weapons will be allowed in the meeting, Radio Jamaica states.
The Jamaica Gleaner relates that Jamaica's almost 5,900 coffee farmers
mostly don't have insurance coverage over two years after Dyoll
Insurance's collapse. The farmers have been trying to find a new
provider.
The Gleaner notes that under Dyoll Insurance, about 500,000 boxes of
coffee produced at traders Mavis Bank, Wallenford, Moy Hall were insured
for US$1.25 a box under a scheme monitored by the trustees.
Coffee Insurance Trust's director general St. Clair Shirley commented to
The Gleaner, "This is a high-risk area and given the many disasters over
the past three years, insurance companies are reluctant to do crop
insurance and the premiums being looked at are heavy almost not
affordable. However, we are still shopping around to see if any will come
in at the last minute."
Derrick Simon, the coffee farmers' representative, told The Gleaner that
the coffee farmers are trying to promote to the Jamaican government a plan
to self-insure. The proposal would need about US$60 million of public
support to set up a fund. He said, "Presently, with the start of the
hurricane season, if some form of insurance policy is not put in place,
then farmers would be left to their own devices."
Agriculture and Lands Minister Roger Clarke is still considering the
proposal, the report notes, citing Mr. Simon.
The Gleaner says that the farmers would pay premiums to set up the fund.
Mr. Shirley told The Gleaner that the trustees and the state-owned Coffee
Industry Broad have courted several reinsurers and are waiting for their
response.
According to The Gleaner, the farmers are worrying about possible losses
when the next big storm comes, as they don't have any new insurance scheme
to "take up the slack left by Dyoll" Insurance.
The Gleaner notes that the lack of coverage was raised as a concern at the
Jamaica Agricultural Society's 112th annual general meeting last week, as
heavy storms are expected this year. With no insurance, "the sector's
shelter would have to come from the public purse."
Minister Clarke told The Gleaner that "assistance was not a given."
The report says that the Jamaican government gave some US$40 million of
support to the coffee producers in 2006. However, "the level of
assistance is not standard." It depends on "available resources."
Minister Clarke explained to The Gleaner, "The ministry doesn't have the
resources to act as a buffer for farmers in the event of a disaster."
However, Minister Clarke admitted that farmers are having difficulty in
getting coverage, "leaving open the possibility of financial help in the
event of a catastrophe," According to The Gleaner. The minister said that
the "executive" has the right to decide on the matter.
Minister Clarke told The Gleaner that the new coverage should be
compulsory, "where all farmers are insured and must contribute to the
scheme." He called for increased protection for smaller coffee growers.
Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business. Jamaica's Financial Services
Commission has assumed temporary management of the Jamaica-based Dyoll
Insurance Co. Ltd. in Mar. 7, 2005, in order to establish the true
position of the Company, address the matter of settlement to its claimants
and ensure that its policies will remain in force after a high level of
insurance claims were leveled on the company as a result of the hurricane
Ivan. Kenneth Tomlinson was appointed temporary manager. Jamaica's
Supreme Court ordered for the distribution of a US$653 million fund held
by the FSC in accordance with the Insurance Act 2001, section 59, which
says that the prescribed deposit, on the winding up of an insurance
company, should be applied first to settle the claims of local
policyholders.
===========
M E X I C O
===========
CABLEMAS SA: Partners with Cedar to Use SAFARI Multimedia System
----------------------------------------------------------------
Cablemas S.A. of Mexico and Cedar Point Communications, a leader in
integrated VoIP switching technologies for the service provider and
enterprise telecommunications industries, disclosed that Cablemas is using
Cedar Point's SAFARI C(Cubed)(TM) Multimedia Switching System for the
delivery of VoIP services throughout Mexico.
Cablemas, which initially deployed SAFARI C(Cubed) in conjunction with its
triple play offering in Cuernavaca, received voice concession licenses in
22 more cities and towns earlier this year. The first cable operator to
offer triple play service in multiple cities in Mexico, Cablemas plans to
have voice services available to customers in those cities between the
middle of 2007 and the beginning of 2008.
Latin Broadband, a Cedar Point reseller and support partner for the Latin
American and Caribbean markets, assisted Cedar Point in the completion of
the agreement.
"Our early work with Cedar Point has reinforced our belief that SAFARI
C(Cubed) offers a simple, cost-effective and scalable way to deploy cable
telephony," said Arnoldo Meiselmann COO for Cablemas. "We look forward to
working with the Cedar Point team to deploy voice services throughout our
customer base in the year ahead."
"Cablemas' expansion signals an increase in the ability of cable to
compete with traditional telco service providers," said Chris Zanyk,
managing director, Latin America for Cedar Point Communications. "Over
the next year, the skills they demonstrated in Cuernavaca will help them
emerge as a leading new provider of cable voice services in Mexico."
About Cedar Point
Based in Derry, New Hampshire, Cedar Point Communications' totally
integrated switching platforms enable the scalable, cost-effective, less
complex delivery of VoIP and multimedia for network operators. Designed
to provide carrier-class performance and reliability, while increasing
network integrity, security and privacy, Cedar Point's SAFARI C(Cubed)(TM)
Multimedia Switching System is a PacketCable(TM)- qualified solution that
supports legacy circuit, NCS and SIP-based voice services, as well as
delivering core IMS capabilities.
About Cablemas
Cablemas SA de CV -- http://www.cablemas.com-- is the
second-largest cable television operator in Mexico based on the
number of subscribers and homes passed. As of June 30, 2005,
the company's network served over 546,000 cable subscribers and
in excess of 87,000 high-speed Internet subscribers, with more
than 1,647,000 homes passed. It is the concessionaire with the
broadest coverage in Mexico, operating in 46 cities throughout
the country's oil, maquiladora and tourist regions.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Fitch Ratings has affirmed these ratings for
Cablemas with a Stable Rating Outlook:
-- Foreign Currency Issuer Default Rating 'BB-';
-- Local Currency Issuer Default Rating 'BB-';
-- US$175 million senior notes due 2015 'BB-'; and
-- National scale 'A(mex)'.
CATALYST PAPER: Plans US$200 Mil. Senior Notes Private Placement
----------------------------------------------------------------
Catalyst Paper Corporation intends to sell, on a private placement basis,
US$200 million in aggregate principal amount of senior notes with a
proposed maturity of 2017 through an offering within the United States
pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended,
and in certain Canadian Provinces and other jurisdictions under Regulation
S under the U.S. Securities Act of 1933, as amended.
The net proceeds of the offering of the senior notes will be used for
general corporate purposes, which may include acquisitions and investments
to support our continued growth.
The senior notes have not been, and will not be, registered under the U.S.
Securities Act of 1933, as amended, or any state securities laws, and may
not be offered or sold in the United Sates absent registration or an
applicable exemption from the registration requirements.
Headquartered in Vancouver, British Columbia, Catalyst Paper Corporation
(TSE:CTL) -- http://www.catalystpaper.com/--
together with its subsidiaries, is a newsprint and specialty ground wood
paper producer in North America. The company operates four manufacturing
divisions, and one paper recycling division in British Columbia, Canada.
The company operates in three business segments: Specialty Papers, engaged
in the manufacture and sale of ground wood specialty printing paper;
Newsprint, engaged in the manufacture and sale of newsprint, and Pulp,
engaged in the manufacture and sale of long and short fiber pulp and
containerboard. The primary market for the company's paper products is
North America. The primary markets for the company's pulp products are
Asia, Australasia and Europe.
The company sells in Japan, the United Kingdom and Latin America.
* * *
Catalyst Paper's 8-5/8% Series C Senior Notes carry Moody's
Investors Service's B2 rating, Standard & Poor's B+ rating, and
Dominion Bond Rating Service's BB rating.
CINRAM INTERNATIONAL: Subsidiary Inks Service Pact with Motorola
----------------------------------------------------------------
Cinram International Income Fund's indirect wholly owned
subsidiary, Cinram Wireless LLC, has entered into a multi-year agreement
with Motorola, Inc., a global leader in mobile communications and seamless
mobility solutions, to provide fulfillment services for mobile phones and
accessories in North America.
"We are very excited about the opportunity to work with such a
well-respected company as Motorola to streamline, automate and add value
to their supply chain," said Cinram chief executive officer Dave
Rubenstein.
Under the agreement, Cinram will begin transitioning fulfillment
operations at Motorola's Fort Worth, Texas, facility in June 2007, and
will provide picking, packing, programming, packaging and reverse
logistics for Motorola mobile phones and accessories. Cinram will also
transfer the existing operations from Motorola's current facility to an
expanded, custom-built Cinram greenfield site in the Fort Worth area.
Financial terms of the agreement were not disclosed.
"We looked at a number of third-party logistics providers and selected
Cinram because its world-class supply chain infrastructure is geared
toward meeting the complex and dynamic requirements of our industry," said
Tim Cawley, senior vice president of logistics for Motorola's Integrated
Supply
Chain. "By consolidating our North America mobile handset supply chain
operations with Cinram, Motorola will be able to offer expanded,
state-of-the-art logistic services, bringing further value to our wireless
partners and customers."
This fulfillment services agreement marks Cinram's entry into the
telecommunications industry. Cinram is already a leading provider of
logistics services in the theatrical home entertainment and video game
industry, reaching in excess of 240,000 points of distribution worldwide,
making its customers some of the best-rated suppliers to retail stores
throughout North America and Europe.
"This agreement is an integral part of Cinram's long-term strategy of
leveraging our core competencies in other industries to diversify our
business," concluded Mr. Rubenstein.
About Motorola
Motorola -- http://www.motorola.com/-- is known around the world for
innovation and leadership in wireless and broadband communications. The
company desigs and delivers "must have" products, "must do" experiences
and powerful networks -- along with a full complement of support services.
A Fortune 100 company with global presence and impact, Motorola has sales
of US$42.9 billion in 2006.
About Cinram International
Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/
-- an indirect wholly owned subsidiary Cinram International
Income Fund, provides pre-recorded multimedia products and
related logistics services. With facilities in North America
and Europe, Cinram International Inc. manufactures and
distributes pre-recorded DVDs, VHS video cassettes, audio CDs,
audio cassettes and CD-ROMs for motion picture studios, music
labels, publishers and computer software companies around the
world. The company has sales offices in Mexico.
* * *
Cintram International Income Fund carries Moody's B1 long-term
corporate family and bank loan debt rating. Moody’s said the ratings
outlook is stable.
FIRST DATA: Special Shareholders Meeting Scheduled for July 31
--------------------------------------------------------------
First Data Corp. will have a special meeting of shareholders to vote on
the proposed acquisition of First Data by an affiliate of Kohlberg Kravis
Roberts & Co. on July 31, 2007. The meeting will be held in New York, New
York. In addition, First Data's Board of Directors approved June 21, 2007,
as the record date for the special meeting.
On May 29, 2007, First Data filed a preliminary proxy statement in
connection with the proposed transaction with the U.S. Securities and
Exchange Commission. The proxy statement, once final, will be mailed
together with a proxy card and notice of the special meeting to First Data
shareholders of record as of the record date. First Data expects the
final proxy statement to be available shortly.
First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/--
provides electronic commerce and payment solutions for businesses
worldwide, including those in New Zealand, the Netherlands and Mexico.
The company's portfolio of services and solutions includes merchant
transaction processing services; credit, debit, private-label, gift,
payroll and other prepaid card offerings; fraud protection and
authentication solutions; electronic check acceptance services through
TeleCheck; as well as Internet commerce and mobile payment solutions. The
company's STAR Network offers PIN-secured debit acceptance at 2 million
ATM and retail locations.
* * *
As reported in the Troubled Company Reporter on April 4, 2007,
Standard & Poor's Ratings Services lowered its corporate credit
rating on First Data Corp. to 'BB+' from 'A' and placed it on
CreditWatch with negative implications. The rating action
followed First Data's agreement to be acquired by Kohlberg
Kravis Roberts & Co. in a transaction valued at about US$29 billion.
INTERTAPE POLYMER: Board Finds Dissident’s Proposals Flawed
-----------------------------------------------------------
Intertape Polymer Group Inc.’s board of directors met early this
week to consider a dissident proxy circular issued by 6789536
Canada Inc., a newly incorporated company. In the meeting, the
board determined that the dissident's proposals are not in the
best interests of Intertape shareholders and involve significant
risks. The board also found the dissident proxy circular to be
vague and lacking specifics. The board also noted significant
flaws and other deficiencies in the dissident's proposals.
The dissident proxy circular solicited proxies to prevent the
previously announced sale of the company and to replace the board of
directors with nominees supported by the dissident.
Intertape’s board confirmed its support for the proposed plan of
arrangement involving the company and an entity formed by
Littlejohn Fund III, L.P., pursuant to which all of the
outstanding common shares of the company are to be acquired at a
price of US$4.76 per share in cash as fully detailed in Intertape's
management information circular dated May 25, 2007. The board continues
to recommend that shareholders vote in favor of the arrangement.
"The dissident is attempting to frustrate the board's process of
maximizing value to shareholders without providing a clear plan
for value realization or creation," said Michael L. Richards,
chairman of Intertape. "Obstructing the Arrangement and failing
to provide a viable alternative is clearly detrimental to the
shareholders, exposes them to significant risk and the board of
directors advises shareholders to ignore the dissident's proxy
solicitation attempts and only to execute the form of proxy
provided with Intertape management's proxy circular."
The dissident's stated intention is to use proxies it receives to vote
against the arrangement and to vote for a slate of director nominees that
for the most part have had little or no involvement with the company.
The board strongly recommends that shareholders reject the
dissident action for several reasons, including:
-- The dissident would prevent shareholders from receiving
immediate and fair value for their investment.
-- Change of board of directors would have immediate
negative financial consequences for Intertape and its
shareholders:
-- The dissident's nominees have no material ownership in
Intertape and would gain control of the company with no
compensation for shareholders.
-- The measures proposed by the Dissident for Intertape are
vague and without particularity.
-- The dissident proxy circular omits important
information.
"The dissident offers shareholders only a number of nominees for
directors without any indication of strategy for the company,"
said Mr. Richards. "The dissident proxy circular lacks concrete
proposals that could reasonably be expected to create value for
the Intertape shareholders. In fact, the only certain result of
the dissident's proposals will be the lost opportunity for
realizing fair value, in cash, for their investment through the
arrangement."
The shareholders of Intertape, if they were to support the
dissident, would be adopting an uncertain, speculative and
hypothetical path through measures with no clear objective or
plan.
"The shareholders of Intertape should make an informed decision,
based on facts. The dissident is asking shareholders to make a
leap of faith and supporting a poorly considered corporate
direction," concluded Mr. Richards.
About Intertape Polymer
Headquartered in Quebec, Canada, Intertape Polymer Group (TSX:
ITP) (NYSE: ITP) -- http://www.intertapepolymer.com/-- develops
and manufactures specialized polyolefin plastic and paper based
packaging products and complementary packaging systems for
industrial and retail use. The company employs about 2450
employees with operations in 18 locations, including 13
manufacturing facilities in North America, one in Europe and in
Mexico.
* * *
Intertape Polymer Group, Inc. carries Standard & Poor's Ratings'
'B-' corporate credit and senior secured ratings. In addition,
the company also carries Standard & Poor's 'CCC' senior
subordinated rating.
INTERTAPE POLYMER: Annual & Special Meeting Set for June 26
-----------------------------------------------------------
Intertape Polymer Group 's annual and special meeting of shareholders will
be held at 4:00 p.m., Montreal time, on
June 26, 2007, at the Hotel Omni Mount Royal in Montreal, Quebec.
Shareholders voting by proxies should ensure that the completed
forms of proxy that accompanied the management proxy circular are received
at the office of the company's Canadian transfer agent, CIBC Mellon Trust
Company, 2001 University Street, 16th Floor, Montreal, Quebec, Canada, H3A
2A6, by 4:00 p.m., Montreal time, June 21, 2007. This will ensure that
proxies are recognized at the meeting.
Shareholders who have questions about the information contained
in the circular or require assistance in completing the proxy
should contact Georgeson at its North America toll free number
of 1-866-717-7668.
About Intertape Polymer
Headquartered in Quebec, Canada, Intertape Polymer Group (TSX:
ITP) (NYSE: ITP) -- http://www.intertapepolymer.com/-- develops
and manufactures specialized polyolefin plastic and paper based
packaging products and complementary packaging systems for
industrial and retail use. The company employs about 2450
employees with operations in 18 locations, including 13
manufacturing facilities in North America, one in Europe and in
Mexico.
* * *
Intertape Polymer Group, Inc. carries Standard & Poor's Ratings'
'B-' corporate credit and senior secured ratings. In addition,
the company also carries Standard & Poor's 'CCC' senior
subordinated rating.
MEGA BRANDS: Keith Bowman Joins Board of Directors
--------------------------------------------------
MEGA Brands Inc. has appointed Keith B. Bowman, FCA, to the
Board of Directors. "Keith Bowman is a highly accomplished professional
whose leadership, experience and entrepreneurial spirit are well suited to
the needs of a growing company like ours," stated Marc Bertrand, President
and CEO of MEGA Brands.
During a four decade career with Ernst & Young Canada, Bowman held
numerous senior positions, including Regional Managing Partner in Ontario
and National Director of Assurance, Quality and Risk Management. He also
acted as Chair of the Institute of Chartered Accountants of Ontario and
served on that organization's Council from 1993 to 2000. Bowman's
appointment as an independent director and member of the Audit Committee
of the Board of Directors of MEGA Brands took effect on
June 8, 2007.
MEGA Brands Inc. -- http://www.megabrands.com/-- (TSE:MB) is a
distributor of construction toys, games & puzzles, arts & crafts
and stationery. The company is headquartered in Montreal,
Canada and has offices in Belgium, United Kingdom, Germany,
France, Spain, Mexico, and Australia.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 23, 2007, Standard & Poor's Ratings Services lowered its ratings on
Montreal, Quebec-based MEGA Brands Inc., including the long-term corporate
credit rating on the company, to 'B+' from 'BB-'. The ratings remain on
CreditWatch with negative implications, where they were placed April 20,
2007.
As reported in the Troubled Company Reporter-Latin America on
April 23, 2007, Moody's placed the Ba3 corporate family rating
and other long-term ratings of MEGA Brands, Inc. on review for
possible downgrade after the company announced weaker than
expected results for the fourth quarter of 2006 and for the full
year. The speculative grade liquidity rating was affirmed at
SGL-3.
Ratings under review for possible downgrade:
MEGA Brands Inc.
-- Ba3 Corporate Family Rating
MEGA Brands Inc.
-- Ba2 rating on the 5-year revolving credit facility;
LGD 2; 24%
MEGA Blocks US
-- Ba2 rating on the 5-year revolving credit facility;
LGD 2; 24%
MEGA Brands Inc.
-- Ba2 rating on the US$40 million, 5-year term loan A
facility; LGD 2; 24%
MEGA Brands Finco
-- Ba2 rating on the US$260 million 7-year term loan B
facility; LGD 2; 24%
MEGA Brands Inc.
-- Probability of Default rating at B1
SATELITES MEXICANOS: Bracewell to Seek Financial Options
--------------------------------------------------------
A group of bondholders accounting for 50% of the equity held in trust for
Satelites Mexicanos have hired New York law firm Bracewell & Giuliani to
seek new strategic and financial options, Bracewell & Giuliani said in a
statement.
Business News Americas relates that Bracewell & Giuliani specializes in
high profile initial public offerings, lobbying and consulting. The group
Bracewell & Giuliani represents "equates to creditors" owning 70% of
Satelites Mexicanos bonds. Around bondholders owned 76% of Satelites
Mexicanos after a restructuring process that closed at the end of 2006.
Satelites Mexicanos launched an auction in May, seeking for bidders who
will pay at least US$500 million for the company. However, the auction
had failed, BNamericas says.
Satelites Mexicanos representatives met with bondholders to discuss what
to do next, Bracewell & Giuliani told BNamericas. One option is to change
the funding structure to maximize the bonds' value.
Satelites Mexicanos Chief Executive Officer Raul Cisneros told reporters
that the firm might try to restructure its debt with bondholders, or find
a new creditor to consolidate the debt with a better interest rate.
The law firm hired by bondholdersto seek new options can be reached at:
Bracewell & Giuliani
1177 Avenue of the Americas
19th Floor
New York, New York 10036-2714
USA
Phone: 212.508.6100
Fax: 212.508.6101
Satelites Mexicanos, SA de CV, provides fixed satellite services
in Mexico. Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-
site transmission of live news reports, sporting events and
other video feeds. Satmex also provides satellite transmission
capacity to telecommunications service providers for public
telephone networks in Mexico and elsewhere and to corporate
customers for their private business networks with data, voice
and video applications. Satmex also provides the government of
the United Mexican States with approximately 7% of its satellite
capacity for national security and public purposes without
charge, under the terms of the Orbital Concessions.
The Debtor filed for chapter 11 petition on Aug. 11, 2006,
(Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice
in the Debtor's Mexican Bankrutpcy proceedings. UBS Securities
LLC and Valor Consultores, SA de CV, give financial advice to
the Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq.,
and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld
LLP give legal advice to the Ad Hoc Existing Bondholders'
Committee. Dennis Jenkins, Esq., and George W. Shuster, Jr.,
Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal
advice to Ad Hoc Senior Secured Noteholders' Committee. As of
July 24, 2006, the Debtor has US$905,953,928 in total assets and
US$743,473,721 in total liabilities.
On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the company (Bankr. S.D.N.Y. Case No. 05-13862). On
June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was
assigned to the Second Federal District Court for Civil Matters
for the Federal District in Mexico City.
On Aug. 4, 2005, Satmex filed a petition, pursuant to
Section 304 of the Bankruptcy Code that commenced a case
ancillary to the Concurso Proceeding and a motion for injunctive
relief that sought among other things, to enjoin actions against
Satmex or its assets (Bankr. S.D.N.Y. Case No. 05-16103).
Satmex concluded its reorganization efforts on Nov. 30, 2006,
and emerged from its U.S. bankruptcy case. The company
consummated its U.S. chapter 11 plan of reorganization, which
was confirmed by the United States Bankruptcy Court for the
Southern District of New York by order dated Oct. 26, 2006, and
implemented the restructuring approved in Satmex's Mexican
Concurso Mercantil proceeding by the Concurso Plan Order issued
on July 14, 2006.
SENSATA TECH: S&P Revises Outlook to Negative from Stable
---------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Sensata
Technologies B.V. to negative from stable. The outlook revision follows
the company's announcement that it will acquire Airpax Holdings Inc. for
US$276 million plus fees and expenses using a combination of cash and
debt. All of its ratings on Sensata, including our 'B+' corporate credit
rating, have been
affirmed.
"The acquisition delays the financial deleveraging that Standard & Poor's
expects for the ratings," said Standard & Poor's analyst Clarence Smith.
The ratings on Attleboro, Mass.-based Sensata continue to reflect its
highly leveraged financial profile, which more than offsets its
satisfactory business profile.
Headquartered in Attleboro, Massachusetts, Sensata Technologies
-- http://www.sensata.com/-- is a supplier of sensors and
controls across a range of markets and applications. The
company has manufacturing locations in Brazil, Mexico, China,
Japan and the Netherlands. Sensata Technologies employs
approximately 5,400 people world-wide.
SONIC CORP: Third Quarter Net Income Down to US$20.6 Million
------------------------------------------------------------
Sonic Corp. reported US$20.6 million of net income for the third fiscal
quarter ended May 31, 2007, compared to US$23.8 million of net income for
the same period in 2006.
Highlights of the quarter included:
* System-wide same-store sales growth of 4.0%;
* A 15% increase in net income per diluted share to US$0.31
from US$0.27 per diluted share in the same quarter last
year;
* A 13% increase in total revenues to US$209.9 million from
US$186.5 million in the year-earlier quarter; and
* The opening of 48 new drive-ins versus a total of 43 in the
same quarter last year.
Commenting on the news, Clifford Hudson, Chairman and Chief Executive
Officer, said, "The solid sales trends we have experienced continued in
the third quarter, and we were particularly pleased that our partner
drive-ins posted their strongest same-store sales growth since the summer
of 2005.
Key to this performance was the continued success of our multi-layered
growth strategies, including strong new product news, continued growth in
non-traditional day parts, the widening implementation of our retrofit
program, the ongoing benefit of our PAYS program, and increased media
expenditures to support our brand message to customers. We are pleased to
note that these sales-driving initiatives continue to shape a positive
outlook for Sonic and have paced same-store sales within our long-term
target range in the first three weeks of June. With this momentum, Sonic
is well positioned for a solid finish to fiscal 2007 as we begin the
fourth and seasonally strongest quarter of our year."
Net income per diluted share rose 15% to US$0.31 for the third quarter
from US$0.27 in the year-earlier period. For the first nine months of
fiscal 2007, net income per diluted share declined slightly to US$0.58
compared with US$0.59 last year. The company's year-to-date earnings were
reduced by previously announced special items, related primarily to
Sonic's tender
offer and financing activities earlier in the year, which totaled
approximately US$0.06 per diluted share. Excluding special items, net
income per diluted share was US$0.64 for the first nine months of 2007,
representing a year-over-year increase of 8%. However, as a result of
increased debt and higher net interest expense associated with the
company's share repurchases, net income for the third quarter declined 13%
to US$20.6 million versus US$23.8 million last year. For the first nine
months of fiscal 2007, net income declined 21% to US$42.2 million from
US$53.2 million in the year-earlier period.
Revenues for the third fiscal quarter rose 13% to US$209.9 million from
US$186.5 million in the year-earlier period, with the year-over-year
growth reflecting same-store sales gains, the acquisition of eight
franchise drive- ins effective
Jan. 1, 2007, and increased franchising income related to new development
as well as the company's ascending royalty rate. Revenues for the first
nine months of fiscal 2007 increased 10% to US$546.2 million from US$495.2
million in the same period last year.
Sonic's system-wide same-store sales increased 4.0% during the third
quarter versus 4.3% in the year-earlier period, reflecting a 4.1% increase
at franchise drive-ins and a 3.3% increase at partner drive-ins. For the
first nine months of fiscal 2007, system-wide same-store sales increased
3.2% compared with 4.8% for the first nine months of fiscal 2006,
reflecting a 3.5% increase at franchise drive-ins and a 1.6% increase at
partner drive-ins.
Sonic's strong sales reflect the positive impact of the company's new
product news, backed by system-wide marketing expenditures that should
exceed US$170 million this fiscal year, versus US$145 million in fiscal
2006. The company has directed approximately one-half of this annual
media plan toward national cable advertising, which has provided
additional reach to both core and developing markets and also has enabled
Sonic to post strong opening sales as it enters new markets. Sales by
franchise drive-ins in fiscal 2007 also have continued to benefit from the
implementation of Sonic's new PAYS program (credit card terminals at each
drive-in stall), which began in February 2005 and was virtually completed
by the end of December 2006. The positive impact of the PAYS rollout is
expected to continue throughout calendar 2007.
Franchising income for the third quarter was boosted by two positive
developments. First, Sonic recently offered franchisees the option to
convert to a newer form of license agreement that extends the franchisees'
license agreement term for 20 years from the date of conversion. The new
agreement, which went into effect April 1, 2007, for 787 franchise
drive-ins, added about US$500 thousand in incremental royalty income in
the third quarter and is expected to add another US$750 thousand to US$800
thousand in the fourth quarter. Also, new drive-in development
accelerated during the quarter. In the third quarter, Sonic opened 48 new
drive-ins, including 43 franchise drive-ins, compared with a total of 43
in the year-earlier period, which included 37 by franchisees. For the
first nine months of fiscal 2007, the total number of drive-in openings
was 114 compared with 109 in the first nine months of fiscal 2006. Sonic
still anticipates opening a total of 180-190 new drive-ins in fiscal 2007,
including approximately 150-160 by franchisees.
During the third quarter, Sonic continued to implement its new retrofit
program, which the company began testing in 2003 and finalized late last
summer as to actual prototype elements. Through the first nine months of
fiscal 2007, Sonic has retrofitted 120 partner drive-ins, including 66 in
the third quarter. The company also has extended the rollout of this
program to its franchisees, who have retrofitted 81 drive-ins, including
76 in the third quarter. The reception of Sonic's new look by customers
and franchisees has been very encouraging, providing momentum for this
multi-year retrofit program. The company plans to retrofit a total of 150
partner drive-ins this fiscal year, along with 250 to 300 franchise
drive-ins. The retrofit of the entire Sonic system is expected to occur
over the next three to four years.
In the fourth fiscal quarter ending Aug. 31, 2007, Sonic estimates that
diluted earnings per share will total approximately US$0.32 to US$0.33
versus US$0.29 per diluted share in the year-earlier quarter. The company
bases this outlook on the following assumptions:
-- Total revenue growth of 10% to 12% over the comparable
2006 period, reflecting:
* System-wide same-store sales growth within the
company's 2% to 4% target range for the fourth
quarter;
* Approximately 65 to 75 new drive-in openings in the
fourth quarter, including 50 to 60 by franchisees;
* The contribution of eight franchise drive-ins
acquired effective Jan. 1, 2007; and
* Growth in the company's franchising income of
approximately US$3.5 million to US$4.0 million, which
includes both franchise fees and franchise royalties
and reflects the impact of additional drive-ins and
higher volumes based on the company's unique
ascending royalty rate, as well as the impact of the
license conversion mentioned earlier.
-- Restaurant-level costs are expected to be unfavorable as
a percentage of sales, on a year-over-year basis, by
approximately 75 to 125 basis points based upon:
* Increased costs in dairy and soybean oil; and
* Increased labor costs on a year-over-year basis,
reflecting recent minimum wage increases in several
states and an increase in the federal minimum wage
effective late in July.
* To partially offset these cost pressures, Sonic
expects to increase prices at partner drive-ins in
late July.
-- Growth in corporate overhead expenses in the 10% to 12%
range.
-- An increase in depreciation and amortization expense in
the range of 10% from the prior year due to asset
additions.
-- Net interest expense in the range of US$11 million to
US$12 million, up from US$2.0 million in the year-earlier
quarter, which reflects approximately US$560 million in
additional debt; as a result of the company's share
repurchases this year, weighted average outstanding
common shares for the fourth quarter of fiscal 2007 are
expected to decline to approximately 67 million from 88
million in the fourth quarter of fiscal 2006; the
positive impact from this decline will be offset
partially by higher interest expense, resulting in
accretion to reported earnings per share of approximately
US$0.01 to US$0.02 per share for the fourth quarter.
-- A tax rate in the range of 36% to 37% for the quarter.
-- An ongoing outlook for total capital expenditures of
approximately US$80 million for the year, excluding
acquisitions, for the cost of partner drive-in
development as well as higher expenditures for the
retrofit of approximately 150 partner drive-ins (at an
average projected cost of US$125,000 to US$135,000 each).
-- Continued positive cash flow from operations, which is
expected to be used in the fourth and future quarters to
fund capital expenditures and, on an opportunistic basis,
to repurchase company stock or purchase franchise drive-
ins.
-- The benefit of repurchasing approximately US$506 million
of common stock since the beginning of the fiscal year,
leaving approximately US$40 million authorized under its
stock repurchase program through August 31, 2007.
About Sonic Corp.
Is America's Drive-In. It originally started as a hamburger and
Sonic Corp. (Nasdaq: SONC) -- http://www.sonicdrivein.com/--
root beer stand in 1953 in Shawnee, Okla., called Top Hat Drive-
In, and then changed its name to Sonic in 1959. The first
drive-in to adopt the Sonic name is still serving customers in
Stillwater, Okla. Sonic has more than 3,200 drive-ins coast to
coast and in Mexico, where more than a million customers eat
every day.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 19, 2007, Standard & Poor's Rating Services withdrew its
'BB-' corporate credit rating on Sonic Corp. as all of the
company's debt is securitized.
===========
P A N A M A
===========
AES CORP: Shuts Down Los Angeles Unit for Maintenance
-----------------------------------------------------
The AES Corp. has stopped its Unit 5 in the Alamitos natural gas-fired
power plant Los Angeles from operating for an unplanned maintenance,
according to a report by the California Independent System Operator.
Reuters relates that the CISO didn't say when the unit will start
operating again.
The unit was shut off several weeks up to the middle of April, Reuters
states.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.
AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela. Fuels include biomass, diesel, coal, gas and
hydro. The group also pursues business development activities
in the region. AES has been in the region since May 1993, when
it acquired the CTSN power plant in Argentina.
* * *
In Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
given-default rating methodology. Additionally, Moody's revised its
probability-of-default ratings and assigned loss-given-default ratings on
the company's loans and bond debt obligations including the B1 rating on
its senior unsecured notes 7.75% due 2014, which was also given an LGD4
loss-given default rating, suggesting noteholders will experience a 55%
loss in the event of a default.
CHIQUITA BRANDS: Selling 12 Cargo Vessels for US$227 Million
------------------------------------------------------------
Chiquita Brands International Inc. has completed the previously announced
sale of its 12 refrigerated cargo vessels for US$227 million. The cash
proceeds from the transaction are being used to repay approximately US$170
million of debt, and the remainder will be retained for general corporate
purposes, including growth investments or future debt repayments. The
ships have been chartered back from an alliance formed by Eastwind
Maritime Inc. and NYKLauritzenCool AB. The parties also entered a
long-term strategic agreement in which the alliance will serve as
Chiquita's preferred supplier in ocean shipping to and from Europe and
North America.
As reported in the Troubled Company Reporter-Latin America on
May 31, 2007, Chiquita Brands said that it signed definitive accords with
Eastwind Maritime Inc. and NYKLauritzenCool AB to
sell its 12 "refrigerated" cargo vessels. The ships will be "chartered
back from an alliance" by Eastwind Maritime and NYKLauritzenCool.
Chiquita Brands will lease back 11 of the vessels for seven years, with
options to extend it to two or five years -- one vessel for three years.
The vessels that would be sold include:
-- eight reefer ships, and
-- four container ships.
Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets fresh-cut
fruit and other branded, value-added fruit products.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service changed the rating
outlook for Chiquita Brands International, Inc. to negative from stable.
Ratings affirmed:
* Chiquita Brands International, Inc. (parent holding company)
-- Corporate family rating at B3
-- Probability of default rating at B3
-- US$250 million 7.5% senior unsecured notes due 2014 at
Caa2 (LGD5, 89%)
-- US$225 million 8.875% senior unsecured notes due 2015 at
Caa2 (LGD5, 89%)
* Chiquita Brands LLC (operating subsidiary):
-- US$200 million senior secured revolving credit agreement
at B1 (LGD2, 26%)
-- US$24.3 million senior secured term loan B at B1 (LGD2,
26%)
-- US$368.4 million senior secured term loan C at B1 (LGD2,
26%).
CHIQUITA BRANDS: Executives Adopt Prearranged Stock Trading Plan
----------------------------------------------------------------
Chiquita Brands International Inc.’s executive officers has adopted a
prearranged stock trading plan in accordance with
guidelines specified by Rule 10b5-1 under the Securities Exchange Act of
1934, as amended.
Rule 10b5-1 allows plans to be established that permit corporate
executives to prearrange sales of company securities at a time when they
are not aware of any material non-public information. Such plans typically
involve a plan to sell shares over a set period of time. These
pre-arranged planned trades will be executed at a specified later date, as
set forth in the plan, without further action or oversight by the
executive officer.
A plan can provide for sales of stock on a particular date or at a
particular price or a combination of both of these factors, along with
others. The rules allow corporate executives to diversify their
investment portfolios and avoid concerns about initializing stock
transactions while possibly in possession of material non-public
information.
Chiquita's president and chief operating officer of its Chiquita Fresh
Group, Robert F. Kistinger, has adopted a plan under Rule 10b5-1, which is
in accordance with company's stock ownership guidelines and provides for
the liquidation of portions of his holdings over multiple quarters, as
part of systematic financial planning for the benefit of his family.
Shares sold pursuant to the plan will be disclosed publicly through Form
144 filings
and Form 4 filings as required by the SEC.
About Chiquita Brands
Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and
distributes fresh food products including bananas and nutritious
blends of green salads. The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks. Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide, including
Panama and the Philippines.
* * *
As reported in the Troubled Company Reporter on May 16, 2007,
Moody's Investors Service Ratings affirmed these ratings on Chiquita
Brands International Inc.: (i) corporate family rating at B3; (ii)
probability of default rating at B3; (iii) US$250 million 7.5% senior
unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million
8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's
changed the rating outlook for Chiquita Brands to negative from stable.
Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's
Ratings Services placed its 'B' corporate credit
and other ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc. on CreditWatch with negative implications,
meaning that the ratings could be lowered or affirmed following
the completion of their review. Total debt outstanding at the
company was about US$1.3 billion as of March 31, 2007.
TITAN PETROCHEMICAL: Sets Sights on Becoming Fuel Storage Giant
---------------------------------------------------------------
Titan Petrochemicals Group Ltd may build 5.66 million cubic meters of
tankage in the east coast of China in the next four years, Shanghai Daily
reports, citing Bloomberg News.
The company, based on a presentation made by Chief Executive Barry Cheung
and a copy of which was obtained by Bloomberg News, wants to reduce
dependence on its tanker business, whose profit contribution dropped to
75% in 2006 from 90% a year earlier. The company expects tankers to
account for no more than a fifth of the company's earnings in two to three
years.
"Titan will continue to reduce dependence on its shipping division, by
selling off two more Very Large Crude Carriers," Mr. Cheung was quoted as
saying by Bloomberg in the presentation to bond investors in Singapore.
The company is "converting three others to become floating storage units
at the end of the year."
Titan has the Chinese government's approval to build a maximum of 5.66
million cubic meters of storage capacity in three locations on the east
coast of China, the repost says. They include a 1.8-million-cubic-meter
facility at Nansha in Guangdong Province, a 1.49-million-cubic-meter
facility at Quanzhou in Fujian Province and a 2.37-million-cubic-meter
facility at Yangshan in Shanghai.
The business unit managing the facilities is tentatively named China
Storage Co, according to the company presentation.
Titan will construct the three facilities in phases, and the speed of
construction will depend on the demand for storage. The company has built
around 10 percent of the planned facilities, the paper relates.
Titan will operate no more than six VLCCs, each of which can carry as much
as two million barrels of oil, under its shipping unit, the report says.
In addition, Titan may consider listing the company's storage business on
stock exchanges within five years, enabling shareholders to increase the
value of their investments. "The listing of the storage facilities in
China is one of the options in four to five years down the road," said
Nora Yong, Titan's corporate communications director in a telephone
interview with Shanghai Daily. "The listing of the storage unit would be
one of the several options for Warburg Pincus to increase the value of its
investment."
Titan Petrochemicals Group Ltd -- http://www.petrotitan.com/-- is an
Asian integrated oil logistics, distribution and supply services provider.
It was listed on the Hong Kong Stock Exchange in 2002. Headquartered in
Hong Kong, its operations are spread over Singapore, Malaysia and China.
It also operates in Russia and Panama. It manages 25 tankers and has
on-shore storage facilities in Guangdong, Fujian and Shanghai. On
March 29, 2007, Moody's Investors Service affirmed the B1 corporate family
rating of Titan Petrochemicals Group Ltd and its senior unsecured bond
rating of B2. This follows Titan's announcement of its fiscal year 2006
results, which show a 9.5% increase in sales but a marked decline in net
income by 67%.
On May 4, 2006, the Troubled Company Reporter - Asia Pacific reported that
the Standard & Poor's Ratings Services revised its outlook on Titan
Petrochemicals Group Ltd. to negative from stable. At the same time, it
affirmed the "BB-" long-term corporate credit rating on Titan. The "B+"
issue rating on the company's senior unsecured notes was also affirmed.
===============
P A R A G U A Y
===============
* PARAGUAY: Holding Off Bank of the South Launching
---------------------------------------------------
Venezuela, along with five Latin American governments, has postponed the
execution of an agreement to establish a regional bank that would compete
with the International Monetary Fund and the World Bank.
The Bank of the South was previously set for launching on
June 26, with each member-country contributing equally to its capital base.
Ecuadorian Ministry of Economy told AFP that no new date has been set.
"In principle, the agreement was to be initialed on June 26. However, it
seems that some countries failed to come to terms and the execution will
be delayed for some additional days," an unnamed source was quoted by El
Universal as saying.
The proposed bank's board will be comprised of heads of state of
Argentina, Bolivia, Brazil, Ecuador, Paraguay, and Venezuela.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the IMF and the World Bank,
on much lower rates and better financing conditions.
As previously reported, Brazilian Finance Minister Guido Mantega said that
founding members' contributions would range between US$500 million to
US$300 million.
* * *
Moody's assigned these ratings on Paraguay:
-- CC LT Foreign Bank Deposit, Caa2
-- CC LT Foreign Currency Debt, Caa1
-- CC ST Foreign Bank Deposit, NP
-- CC ST Foreign Currency Debt, NP
-- LC Currency Issue
=======
P E R U
=======
DOE RUN: Concludes Negotiations with Union Workers
--------------------------------------------------
Doe Run Peru has concluded a month-long negotiation with union workers,
Living In Peru reports.
The labor minister told Living In Peru that the two parties have reached
an accord on the union workers' demands.
According to Living In Peru, Doe Run signed legal documents with the union
to put an end to the protest. Under the agreement, Doe Run pledges to:
* categorize the work status of eight workers by July
20 in the areas of:
-- Accounting,
-- Security,
-- Training, and
-- Human Resources; and
* purchase an ambulance for its employees. The
ambulance will be ready to assist workers on
July 31.
The report says that Doe Run is temporarily renting other means of
transportation.
The employees were able to have Doe Run promise to complete the
construction of facilities like a sports center, a swimming pool and light
posts on the soccer field, Living In Peru states.
Based in St. Louis, Mo., The Doe Run Company --
http://www.doerun.com/-- is a privately held natural resources
company dedicated to environmentally responsible mineral
production, metals fabrication, recycling and reclamation. The
company and its subsidiaries deliver products and services
needed to provide power, protection and convenience through
premium products and associated metals including lead, zinc,
copper, gold and silver. As the operator of one of the world's
only multi-metal facilities and the Americas' largest integrated
lead producer, Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.
Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold. Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.
Doe Run Peru Going Concern Doubt
As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.
Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments. In addition, there are
substantial contingencies related to taxes.
The Doe Run Peru Revolving Credit Facility expires on
Sept. 22, 2006, and will require negotiations to extend its
terms. There can be no assurance that Doe Run Peru will be
successful in extending the existing credit agreement or
negotiating a new agreement, or if it is successful, that the
extended or new credit agreement would be at terms that are
favorable to Doe Run Peru.
Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility. A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.
SK CORPORATION: Shuts Down Crude Distillation Unit
--------------------------------------------------
SK Corp. will shut down its No.5 260,000 barrels per day (bpd) crude
distillation unit for unplanned maintenance at the end of July, Reuters
Key Developments reports.
About SK Corp
Headquartered in Seoul, South Korea, SK Corp. --
http://eng.skcorp.com/-- is an energy and petrochemical company
with 4,916 employees and 22 offices around the world in 2005.
The company is strategically positioned as Korea's largest and
Asia's leading refiner next to Sinopec and PetroChina. SK Corp.
currently explores, develops and produces oil in 13 nations,
including Peru, London and the United States.
The Troubled Company Reporter - Asia Pacific reported that on
Feb. 20, 2006, Moody's Investors Service has placed on review
for possible upgrade the Ba1 long-term rating of SK Corp.
=============
U R U G U A Y
=============
SUPERCLICK INC: April 30 Balance Sheet Upside-Down by US$2.3MM
--------------------------------------------------------------
Superclick Inc.'s consolidated balance sheet at April 30, 2007, showed
US$2,031,190 in total assets and US$4,395,803 in total liabilities,
resulting in a US$2,364,613 total stockholders' deficit.
The company's consolidated balance sheet at April 30, 2007, also showed
strained liquidity with US$1,808,404 in total current assets available to
pay US$4,373,019 in total current liabilities.
Superclick Inc. reported net income after cumulative effect adjustment for
the second quarter of US$54,001, compared to a net loss of US$480,709 for
the three months ended
April 30, 2006.
The cumulative effect adjustment for the three months ended
April 30, 2007, was US$73,700. During the quarter ended
April 30, 2007, the company detected an error in the credit rate used to
determine the 2004 and 2005 Provincial Research and Development Tax Credit
refund. The error was a result of the use of the 100% Canadian owned rate
versus that of a foreign owned rate, which are higher and thus the amount
of the eligible refund was overstated.
Superclick Inc. reported net revenues of US$1,237,649 for the second
quarter ended April 30, 2007, compared to US$907,809 in revenue for the
second quarter of 2006. The increase of US$329,840 in revenue, or 36.3%,
for the second quarter on a year-over-year basis, was attributable to
improving installation revenue and the strengthening of support contracts.
In particular, the company improved revenue performance in customer
support revenues for the second quarter on a year-over-year basis by
64.7%.
Gross profit for the second quarter ended April 30, 2007, was US$688,554,
or 55.6% compared with the US$431,322, or 47.5% reported for the second
quarter ended April 30, 2006.
Selling, general and administrative expenses for the three months ended
April 30, 2007, and 2006, were US$435,703, or 35.2% and US$492,846 or
54.3% respectively.
Superclick ended the quarter with US$650,553 in cash and US$932,378 in
accounts receivable.
Sandro Natale, chief executive officer, commented that "we continue to be
pleased with the progress we are making on many levels. From an
operational standpoint, we have substantially streamlined our operations
and are now committed to investing into core areas that will enable us to
further scale revenue on a more profitable basis. On the technology
front, we continue to demonstrate the depth of our SIMS platform and MAMA
application and believe that we are truly differentiated in terms of our
ability to provide customers with management transparency and performance
over their networks. In terms of our development for the future, we are
excited about the prospects we see developing for our Media Distribution
System application and hope to begin announcing successes here over the
quarters to come. Our approach of developing services and products
focused on resolving customer needs first and foremost is yielding strong
results and this will continue to be our catalyst for growth moving
forward."
Full-text copies of the company's consolidated financial statements for
the quarter ended April 30, 2007, are available for free at
http://researcharchives.com/t/s?2107
Going Concern Doubt
As reported in the Troubled Company Reported on Feb. 6, 2007,
Bedinger & Company, in Concord, California, expressed substantial doubt
about Superclick Inc.'s ability to continue as a going concern after
auditing the company's consolidated financial statements for the year
ended Oct. 31, 2006. The auditing firm pointed to the company's recurring
losses from operations.
About Superclick Inc.
Superclick Inc. (OTC BB: SPCK.OB) -- http://www.superclick.com/-- through
its wholly owned, Montreal-based subsidiary Superclick Networks Inc.,
develops, manufactures, markets and supports the Superclick Internet
Management System, Monitoring and Management Application and Media
Distribution System in worldwide hospitality, conference center and event,
multi-tenant unit and university markets. Current clients include MTU
residences and Candlewood Suites, Crowne Plaza, Fairmont Hotels, Four
Points by Sheraton, InterContinental Hotels Group PLC, Hilton, Holiday
Inn, Holiday Inn Express, Hampton Inn, Marriott, Novotel, Radisson,
Sheraton, Westin and Wyndham hotels in Canada, the Caribbean and the
United States.
Superclick has operations in Argentina, Aruba, Australia, Bahamas,
Barbados, Belgium, Bermuda, Brazil, Cayman Islands, Chile, Colombia, Costa
Rica, Dominica, Dominican Republic, El Salvador, France, Guatemala,
Jamaica, Luxembourg, Martinique, Mauritius, Netherlands, Portugal, Puerto
Rico, Sweden, Switzerland, Trinidad and Tobago, Turks and Caicos Islands,
United States, Virgin Islands, British, Virgin Islands, and the United
States.
=================
V E N E Z U E L A
=================
CMS ENERGY: Fitch Assigns BB- Rating on US$400-Mil. Senior Notes
----------------------------------------------------------------
Fitch has assigned a rating of 'BB-' to these new issues from CMS Energy
Corp.:
-- US$250 million 6.55% senior notes, due July 17, 2017;
-- US$150 million floating-rate senior notes, due
Jan. 15, 2013.
Proceeds from the sale will be used to retire outstanding debt and for
general corporate purposes. The Rating Outlook is Positive.
CMS' ratings reflect the company's reduced business risk profile as it
continues to exit several international businesses and focus on the
utility operations at its primary subsidiary, Consumers Energy Co.
(Consumers; rated with an Issuer Default Rating of 'BB', Outlook Positive,
by Fitch), as well as its still below investment grade leverage metrics.
Fitch notes that CMS has raised proceeds of more than US$4 billion in
asset divestitures, including the recently announced GasAtacama in Chile
and its interest in the Jamaica Private Power Co. LLC. The proceeds from
the asset sales will enable the company to reduce parent level debt by
approximately US$2.5 billion and further improve the utility's common
equity ratio to about 50%. Going forward, CMS' business mix will change
from 70%/30% regulated/unregulated to approximately 90%/10%
regulated/unregulated. Management has indicated that it does not intend
to significantly expand the unregulated operations going forward. Any
unregulated activities will be focused on domestic assets only.
The Positive Outlook for CMS takes into consideration Fitch's
expectation that once the announced asset sales are closed, and a major
portion of the proceeds used to pay down parent company debt, CMS' credit
metrics will improve significantly starting in 2008. Fitch expects the
funds flow coverage ratio to improve to around 3.7 times by December 2008
from its current level of 2.9x for the 12-month period ended March 31,
2007. If the additional non-regulated asset sales that are contemplated
come to fruition, that would also be viewed positively.
Furthermore, the Positive Outlook reflects Fitch's expectation that the
company will continue to benefit from the stable cash distributions from
Consumers and maintain its current business strategy of focusing growth on
regulated utility operations.
CMS is a utility holding company whose primary subsidiary is Consumers, a
regulated electric and gas utility serving more than 3.5 million customers
in western Michigan. CMS also has operations in natural gas pipelines and
independent power production.
Based in Jackson, Michigan, CMS Energy Corporation is an electric and
natural gas utility, natural gas pipeline systems, and independent power
generation operator. The company has offices in Venezuela.
* VENEZUELA: Lowers Oil Production by 195,000 BPD
-------------------------------------------------
Venezuela, one of the world's biggest crude exporters, has cut production
by 195,000 barrels per day to comply with the Organization of Petroleum
Exporting Countries' mandate, El Universal reports, citing Energy and
Petroleum Minister Rafael Ramirez.
Production cuts were implement in heavy-crude oil and extra-heavy crude
oil Orinoco belt, east Venezuela, and in Boscan oilfield, west Venezuela,
El Universal says, citing a Reuters report.
OPEC curtails production to preven a sudden plunge in oil prices. The
most recent cuts were in November 2006 and February 2007.
* * *
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: Will Launch Mobile Spectrum Tender on July 11
----------------------------------------------------------
The Venezuelan government will launch a "mobile spectrum" auction on July
11, Business News Americas reports.
El Universal relates that the government will award mobile spectrum in the
1,800 megahertz and 1,900 megahertz bands to boost mobile penetration in
Venezuela.
Reporters say that the initial bidding price is US$120 million. The
government will grant concession licenses for 15 years. Winners of the
auction would begin operating by Nov. 13.
Telecommunications Minister Jesse Chacon told BNamericas that the mobile
sector "has reached maturity" with penetration over 75%, which is expected
at 90% by 2011.
According to BNamericas, the government said it will consider quality of
service, coverage and the value of the bid.
The government will study all the infrastructure deployed by participating
bidders. It expects all towns with over 500 residents to have access to
telecommunications services by 2011, 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 remained
stable.
* VENEZUELA: Holding Off Bank of the South Launching
----------------------------------------------------
Venezuela, along with five Latin American governments, has postponed the
execution of an agreement to establish a regional bank that would compete
with the International Monetary Fund and the World Bank.
The Bank of the South was previously set for launching on
June 26, with each member-country contributing equally to its capital base.
Ecuadorian Ministry of Economy told AFP that no new date has been set.
"In principle, the agreement was to be initialed on June 26. However, it
seems that some countries failed to come to terms and the execution will
be delayed for some additional days," an unnamed source was quoted by El
Universal as saying.
The proposed bank's board will be comprised of heads of state of
Argentina, Bolivia, Brazil, Ecuador, Paraguay, and Venezuela.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the IMF and the World Bank,
on much lower rates and better financing conditions.
As previously reported, Brazilian Finance Minister Guido Mantega said that
founding members' contributions would range between US$500 million to
US$300 million.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch
Ratings affirmed Venezuela's long-term foreign and local currency Issuer
Default Ratings at 'BB-'. At the same time, the agency also affirmed the
short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'.
Fitch said the outlook on the
ratings remains stable.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA.
Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande delos Santos, and
Christian Toledo, Editors.
Copyright 2007. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or publication
in any form (including e-mail forwarding, electronic re-mailing and
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Information contained herein is obtained from sources believed to be
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for the term of the initial subscription or balance thereof are US$25
each. For subscription information, contact Christopher Beard at
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