/raid1/www/Hosts/bankrupt/TCRLA_Public/070703.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
Monday, July 2, 2007, Vol. 8, Issue 129
Headlines
A R G E N T I N A
ALITALIA SPA: AP Holding Seeks Valuation to Boost Bid
ALITALIA SPA: OAO Aeroflot Refutes Bid Pullout Reports
AMR CORPORATION: Sees US$12-Mil. Cut in Annual Interest Expense
ARCH CAPITAL: Credit Suisse Raises Rating on Firm to Outperform
AEROFLEX INC: To Hold Stockholders Special Meeting on July 26
ARIAS HERMANOS: Trustee To File Individual Reports on Oct. 3
ATLANTICA SERVICIOS: Claims Verification Deadline Is Sept. 4
BOSTON SCIENTIFIC: Inks Deal with CryoCor in Atrial Fibrillation
FERRO CORP: Richard Hipple Joins Board's Finance Committee
FUNDACION NUESTRA: Reorganization Proceeding Concluded
HUNTSMAN CORP: Basell to Acquire Assets for US$9.6 Billion
IEPSI SA: Reorganization Proceeding Concluded
L Y M: Proofs of Claim Verification Deadline Is Aug. 10
RED HAT: JMP Securities Maintains Market Perform Rating on Firm
RENAUTO TUCUMAN: Will Hold Informative Assembly on Aug. 2
YPF SA: Repsol in Talks with Enrique Eskenazi for Stake Sale
B A R B A D O S
INTERPOL INC: Extends Tender Offer Consent Date to June 29
B E R M U D A
ARCH CAPITAL: Credit Suisse Raises Rating on Firm to Outperform
BLUE TERCEL: Proofs of Claim Must be Filed Today
BLUE TERCEL: Sets Final General Meeting for July 16
JUPITER POWER: Proofs of Claim Filing Is Until July 13
JUPITER POWER: Sets Final General Meeting for July 30
MARTIN CURRIE: Sets Final General Meeting for July 2
WEST SOLUTIONS: Final General Meeting Is Set for July 3
B O L I V I A
* BOLIVIA: Government Okays Incentives for Telecom Companies
B R A Z I L
AES CORP: Almost Reaching Debt Payment Pact with Banco Nacional
BANCO NACIONAL: Close To Reaching Debt Payment Accord with AES
BANCO NACIONAL: Will Fund Dominican Republic's Bus Purchase
GENERAL MOTORS: Goldman Sachs Raises Shares to Buy on Wage Cuts
GENERAL MOTORS: Sells Unit to Carlyle Group & Onex for US$5.6BB
HERCULES INC: S&P Revises BB Rating's Outlook to Positive
RHODIA SA: AMF Unit Releases Investigation Results
PETROLEO BRASILEIRO: Expects Hike in Gas Import
PETROLEO BRASILEIRO: Investing US$2 Billion in Carabobo Block
SOLECTRON CORP: Earns US$12.1 Million in Quarter Ended June 1
TK ALUMINUM: Unit Closes Equity Interest Sale in Nanjing Teksid
NOVELIS INC: Extends Change of Control Notes Offer to July 3
C A Y M A N I S L A N D S
AHON BRIDGE: Proofs of Claim Filing Deadline Is July 26
ARGENT NIM: Proofs of Claim Filing Ends on July 26
CABLE & WIRELESS: Unit Using Calix’s Access Platform
CLEMATIS FINANCIAL: Proofs of Claim Filing Deadline Is July 26
CLEMATIS FIN'L MASTER: Proofs of Claim Must be Filed by July 26
DISC LTD: Proofs of Claim Must be Filed by July 26
DUPLEX FIFTH: Proofs of Claim Filing Deadline Is July 26
ENRON INTERNATIONAL: Proofs of Claim Filing Ends on July 26
ENRON INT'L BRAZIL: Proofs of Claim Must be Filed by July 26
FCT PACIFIC: Proofs of Claim Filing Deadline Is July 26
KKR FINANCIAL (2006-2): Proofs of Claim Must be Filed by July 26
KKR FINANCIAL (2007-2): Proofs of Claim Filing Is Unitl July 26
KKR FINANCIAL (2007-3): Proofs of Claim Filing Ends on July 26
MERRILL LYNCH: Proofs of Claim Must be Filed by July 26
MERRILL LYNCH (USD): Proofs of Claim Filing Ends on July 26
MERRILL LYNCH (EUR): Proofs of Claim Must be Filed by July 26
TYPHOON FUNDING: Proofs of Claim Filing Ends on July 26
WINDING RIVER: Proofs of Claim Must be Filed by July 26
C H I L E
CONSTELLATION BRANDS: Hires Rob Sands as Chief Executive Officer
EASTMAN KODAK: Sells All-In-One Inkjet Printers to Office Depot
SHAW GROUP: Energy & Climate Picked as Asset Advisors for Leaf
C O L O M B I A
PARKER DRILLING: Prices US$115 Million Senior Notes Offering
ROYAL & SUN: Confirms Completion of Codan AS Takeover
* COLOMBIA: Peso Bonds Surge on Interest Rate Outlook
D O M I N I C A N R E P U B L I C
ASHMORE ENERGY: Completes Calidda Acquisition from SUEZ Energy
JETBLUE AIRWAYS: Launching Syracuse-Fort Lauderdale Service
M E X I C O
AXTEL SAB: Launches Operations in Merida
BALLY TOTAL: Unveils Treatment of Claims Under Pre-Packaged Plan
COMMSCOPE INC: Andrew Corp. Deal Cues Moody's to Review Ratings
DAIMLERCHRYSLER: Executive Says Russia a Key Market for Chrysler
DAIMLERCHRYSLER AG: MAN & Freightliner Settle ERF Case
DYNCORP INTERNATIONAL: Awarded LOGCAP IV Contract by US Army
P A N A M A
AES CORP: Files Appeal in US Court for NatGas Terminal Ban
SOLO CUP: Closes US$130 Million Leaseback Deal of Six Facilities
P U E R T O R I C O
CLEAN HARBORS: Moody's Lifts Corp. Family Rating to Ba3 from B1
GAMESTOP CORP: Board Okays Redemption of Sr. Floating Rate Notes
U R U G U A Y
SOL MELIA: S&P Affirms BB+ Corp. Credit Rating; Revises Outlook
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Investing US$2 Billion in Carabobo Block
CITGO PETROLEUM: To Appeal Environmetal Judgment in the U.S.
FREEPORT-MCMORAN: Paying Cash Dividends on Aug. 1
PETROLEOS DE VENEZUELA: Chinese Firm Wants to Drill at Orinoco
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: AP Holding Seeks Valuation to Boost Bid
-----------------------------------------------------
AP Holding S.p.A., AirOne S.p.A. and Intesa-San Paolo S.p.A.'s acquisition
vehicle, is seeking a valuation in preparation for its bid to acquire the
Italian government's 39.9% stake in Alitalia S.p.A., Il Sole 24 Ore
reports.
The valuation, Il Sole relates, will allow AP Holding's financial backers
-- Morgan Stanley, Lehman Brothers, Nomura Holdings Inc., and Banca Monte
Paschi di Siena -- to support its bid for the national carrier.
PricewaterhouseCoopers have estimated AP Holding's value to be worth
between EUR850 million and EUR1 billion, Il Sole says.
Reuters says that observers have questioned whether AirOne could pull off
the acquisition of the much larger Alitalia, since its own annual revenues
barely match Alitalia's annual losses. Alitalia has EUR1.2 billion in
market capitalization.
AP Holding will try to outbid rivals MatlinPatterson Global
Advisers LLC and consortium OAO Aeroflot-Unicredito Italiano S.p.A.
The bidders have until July 12, 2007, to submit a binding offer.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for passengers and
air transport of cargo on national, international and inter-continental
routes. The company also operates in
Argentina, China, and Japan. The Italian government owns 49.9% of Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia
posted net losses of EUR256 million and EUR907 million in 2000 and 2001
respectively. Alitalia registered
EUR93 million in net profits in 2002 after a EUR1.4 billion
capital injection. The carrier booked consecutive annual net
losses of EUR520 million in 2003, EUR813 million in 2004, and
EUR168 million in 2005.
ALITALIA SPA: OAO Aeroflot Refutes Bid Pullout Reports
------------------------------------------------------
OAO Aeroflot denied reports it will withdraw its bid to acquire the
Italian government's 39.9% stake in Alitalia S.p.A., Il Sole 24 Ore says
citing a spokeswoman for the Russian carrier.
"There was a board meeting which discussed the Alitalia issue but no
decision was taken about any withdrawal," the spokeswoman was quoted by Il
Sole 24 Ore as saying.
An anonymous Aeroflot board member had told Interfax News Agency that the
Russian airline will pull out its Alitalia bid.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The company also operates in
Argentina, China, and Japan, among others. The Italian government owns
49.9% of Alitalia.
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.
AMR CORPORATION: Sees US$12-Mil. Cut in Annual Interest Expense
---------------------------------------------------------------
AMR Corporation, the parent company of American Airlines Inc.,
provided an update on actions taken in the second quarter of 2007 as part
of its ongoing efforts to strengthen its balance sheet and build a
stronger financial foundation. The company said that these actions are
expected to eliminate about US$12 million in annual net interest expense.
Actions in the second quarter include:
-- American amended the US$442 million floating rate term
loan portion of its credit facility, which has been
outstanding since December 2004, lowering the interest
rate from 3.25% over LIBOR to 2% over LIBOR.
-- AMR's wholly owned subsidiary, American Eagle Airlines
Inc., prepaid US$48.2 million in principal amount of
aircraft debt. The debt prepayment is in addition to
AMR's US$1.3 billion in scheduled principal payments in
2007.
-- American refinanced US$127.7 million of bonds that were
originally issued to fund facilities expansion and
renovation at Dallas/Fort Worth International Airport,
reducing the interest rate by 1.75 percentage
points to 5.5%.
-- American refinanced US$108.7 million in bonds that were
originally issued to fund expansion and improvements at
O'Hare International Airport in Chicago, reducing the
interest rate by 2.7 percentage points to 5.5%.
These efforts by AMR to improve its balance sheet follow similar
actions taken by the company earlier in 2007, which resulted in
the elimination of more than US$15 million in annual net interest expense.
AMR anticipates ending the second quarter of 2007 with about
US$6.2 billion in cash and short-term investments, including a
restricted balance of about US$500 million, compared to a cash and
short-term investment balance of US$5.7 billion, including a
restricted balance of US$525 million, at the end of the second
quarter of 2006.
The company expects to end the second quarter of 2007 with total
debt, which the company defines as the aggregate of its long-term debt,
capital lease obligations, the principal amount of airport facility
tax-exempt bonds and the present value of aircraft operating lease
obligations, of about US$17.3 billion. AMR's total debt was about US$19.4
billion at the end of the second quarter of 2006 and about US$20.1 billion
at the end of 2005.
The company expects to end the second quarter of 2007 with net
debt, which the company defines as Total Debt less unrestricted
cash and short-term investments, of about US$11.6 billion, compared to net
debt of about US$14.2 billion at the end of the second quarter of 2006 and
about US$16.3 billion at end of 2005.
"We continue to make progress in strengthening our balance sheet, which
gives us greater flexibility and builds our foundation for the future,"
said Thomas W. Horton, executive vice president of finance and planning
and chief financial officer of AMR. "We have more work ahead of us to
reduce debt and improve our overall cost structure, but we believe that we
are on the right path to position the company for long-term success."
About AMR Corporation
Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines
Inc. -- http://www.aa.com/-- a worldwide scheduled passenger
airline. At the end of 2006, American provided scheduled jet
service to about 150 destinations throughout North America, the
Caribbean, Latin America, Europe and Asia, including Belgium, Brazil,
Japan, among others. American is also a scheduled airfreight carrier,
providing freight and mail services to shippers throughout its system.
Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle." American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
* * *
As reported in the Troubled Company Reporter on June 21, 2007,
Moody's Investors Service assigned a rating of Caa1 to the Chicago O'Hare
International Airport Special Facility Revenue Refunding Bonds, Series
2007 (American Airlines Inc. Project). Moody's affirmed all ratings of
AMR Corporation and its subsidiaries, corporate family rating at B2, and
the outlook remains stable.
ARCH CAPITAL: Credit Suisse Raises Rating on Firm to Outperform
---------------------------------------------------------------
Credit Suisse analysts have upgraded their ratings on Arch Capital Group
Ltd’s shares to "outperform" from "neutral," Newratings.com reports.
According to Newratings.com, the target price for Arch Capital was
increased to US$83 from US$80.
The analysts said in a research note that the “sell-off in Arch Capital’s
stock on account of the distribution of shares by Warburg Pincus and
Hellman & Friedman presents an attractive investment opportunity.”
The analysts told Newratings.com that Arch Capital has a robust balance
sheet, low financial leverage, below-average hurricane risk and
diversified earnings. However, its stock has “underperformed” that of
other companies “year-to-date.”
The earnings per share estimate for 2007 was raised to US$9.51, while the
estimate for 2008 was increased US$9.15, to indicate the “increased level
of share buybacks and favorable cat trends” in the second quarter 2007.
Headquartered in Bermuda, Arch Capital Group Ltd. (NASDAQ: ACGL)
-- http://www.archcapgroup.bm-- is a public limited liability
company, which provides insurance and reinsurance on a worldwide
basis through operations in Bermuda, the United States, Europe
and Canada. It provides a range of property and casualty
insurance and reinsurance lines, and focus on writing specialty
lines of insurance and reinsurance. Arch Capital classifies its
business into two underwriting segments: reinsurance and
insurance. The company's reinsurance operations are conducted
on a worldwide basis through its reinsurance subsidiaries, Arch
Reinsurance Ltd. and Arch Reinsurance Company. The company's
insurance operations in Bermuda are conducted through Arch
Insurance (Bermuda), a division of Arch Re Bermuda, which has an
office in Hamilton, Bermuda.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 15, 2006, A.M. Best assigned these ratings on to Arch
Capital's debts:
-- "bb+" from "bb" on US$200 million 8% non-cumulative
Series A preferred shares; and
-- to "bb+" from "bb" on US$125 million 7.875% non-cumulative
Series B preferred shares.
AEROFLEX INC: To Hold Stockholders Special Meeting on July 26
-------------------------------------------------------------
Aeroflex Incorporated will hold a special meeting of stockholders on July
26, 2007, at 10:00 a.m., local time, at the Garden City Hotel, Stewart
Avenue, Garden City, New York, for the purpose of considering the adoption
of the merger agreement providing for the acquisition of Aeroflex by
Veritas Capital. Stockholders of record of Aeroflex as of the close of
business on Monday, June 4, 2007, will be entitled to vote at the special
meeting. The definitive proxy statement covering this matter was mailed
to Aeroflex’s stockholders earlier this week.
Aeroflex currently expects to complete the merger by late July or early
August 2007, subject to the approval and adoption of the merger agreement
by Aeroflex’s stockholders and the satisfaction of other closing
conditions.
Headquartered in Plainview, NY, Aeroflex Inc. is a specialty
provider of microelectronics and test and measurement products
to the aerospace, defense, wireless, broadband and medical
markets. For the twelve months ended March 31, 2007, revenues
were US$577 million. Aeroflex has offices in China, France,
Germany, and Argentina.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 28, 2007, Moody's Investors Service assigned first-time ratings to
Aeroflex Incorporated:
-- Corporate Family Rating -- B3
-- Probability of Default Rating -- B3
-- US$60 Million Senior Secured First Lien Revolver due 2013,
B1 (LGD-2, 27%)
-- US$500 Million Senior Secured First Lien Term Loan due
2014, B1 (LGD-2, 27%)
-- US$370 Million Senior Subordinated Notes due 2017, Caa2
(LGD-5, 83%)
-- Speculative Grade Liquidity Rating, SGL-2
Moody's said the ratings outlook is positive.
ARIAS HERMANOS: Trustee To File Individual Reports on Oct. 3
------------------------------------------------------------
Elida Alicia Victorero, the court-appointed trustee for Arias Hermanos
S.A.'s bankruptcy proceeding, will present creditors' validated claims as
individual reports in the National Commercial Court of First Instance in
Buenos Aires on
Oct. 3, 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 Arias Hermanos and its creditors.
Inadmissible claims may be subject for appeal in a separate proceeding
known as an appeal for reversal.
Ms. Victorero verified creditors' proofs of claim until
Aug. 22, 2007.
Ms. Victorero will also submit to court a general report containing an
audit of Arias Hermanos’ accounting and banking records on Nov. 28, 2007.
The trustee can be reached at:
Elida Alicia Victorero
Montevideo 711
Buenos Aires, Argentina
ATLANTICA SERVICIOS: Claims Verification Deadline Is Sept. 4
------------------------------------------------------------
Jacobo Luterstein, the court-appointed trustee for Atlantica Servicios
S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until
Sept. 4, 2007.
Mr. Luterstein will present the validated claims in court as individual
reports on Oct. 17, 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 Atlantica Servicios' 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 Atlantica Servicios' accounting
and banking records will be submitted in court on Nov. 28, 2007.
Mr. Luterstein is also in charge of administering Atlantica Servicios'
assets under court supervision and will take part in their disposal to the
extent established by law.
The trustee can be reached at:
Jacobo Luterstein
Rodriguez Pena 694
Buenos Aires, Argentina
BOSTON SCIENTIFIC: Inks Deal with CryoCor in Atrial Fibrillation
----------------------------------------------------------------
Boston Scientific Corporation and CryoCor, Inc., entered into a strategic
collaboration in the field of cryoablation, or the use of extreme cold,
for the treatment of cardiac arrhythmias. The collaboration involves the
co-development of therapeutic solutions for atrial fibrillation, or Afib.
Afib is the most common cardiac arrhythmia and affects approximately 6
million patients around the globe, and it is estimated that over US$9
billion is spent annually in the United States on healthcare costs
associated with Afib.
The collaboration involves the co-development of a console intended to
deliver cryo energy to Boston Scientific's proprietary cryo balloon
catheter for the treatment of Afib. Under the collaboration, CryoCor will
be responsible for the development, and possible manufacture, of a
cryoablation console for use with Boston Scientific's internally developed
cryo-therapy balloon, which may incorporate some of CryoCor's catheter
technologies. Upon successful achievement of pre-established development
milestones, Boston Scientific has agreed to make certain payments to
CryoCor. Boston Scientific also has agreed to pay CryoCor royalties on
the sale by Boston Scientific of the products developed under the
collaboration. In addition to the development program, Boston Scientific
purchased shares of CryoCor common stock for an aggregate purchase price
of US$2.5 million, and agreed to purchase an additional US$2.5 million of
common stock upon successful achievement of certain development
milestones.
Boston Scientific intends to market its cryo-therapy balloon for the
treatment of Afib, subject to regulatory approvals. Boston Scientific's
cryo balloon is being developed to attempt to provide a safe,
standardized, and broadly applicable method to isolate the electrical
activity originating from the pulmonary veins, which are believed to be a
source for the initiation and propagation of Afib.
Joe Fitzgerald, President of Boston Scientific's Electrophysiology
Division, stated, "we believe that the proposed combination of CryoCor's
proprietary console design and cryogenics expertise, along with Boston
Scientific's extensive history of balloon catheter leadership, will be a
significant strategic and competitive advantage in the Afib market."
Ed Brennan, Chief Executive Officer of CryoCor, said, "we are pleased that
Boston Scientific chose to collaborate with CryoCor for the development of
this important product. We view this relationship as further validation
of cryoablation, and CryoCor specifically, and we believe that Boston
Scientific can provide valuable assistance to us as we prepare for the
launch of our cryoablation system in the United States."
About CryoCor
CryoCor Inc. -- http://www.cryocor.com/-- is a medical technology company
that has developed and manufactures a disposable catheter system based on
its proprietary cryoablation technology for the minimally invasive
treatment of cardiac arrhythmias. CryoCor's product, the CryoCor Cardiac
Cryoablation System, or the Cryoablation System, is designed to treat
cardiac arrhythmias through the use of cryoenergy, or extreme cold, to
destroy targeted cardiac tissue.
The Cryoablation System has been approved in Europe for the treatment of
Afib and Atrial Flutter, the two most common and difficult to treat
arrhythmias since 2002. In the United States, CryoCor is conducting a
pivotal trial to evaluate the safety and efficacy of the Cryoablation
System for the treatment of Afib, and has submitted an application for
premarket approval for the treatment of Atrial Flutter.
About Boston Scientific
Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties. The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.
* * *
As reported in the Troubled Company Reporter on May 11, 2007,
Moody's placed Boston Scientific Corporation's ratings including
its Baa3 senior unsecured and Prime-3 short term, under review
for possible downgrade. The rating action reflects Moody's
expectation that, absent any material debt reduction, financial
strength measures over the near term will be below those
identified for an investment grade company under Moody's Global
Medical Products & Device Industry Rating Methodology.
FERRO CORP: Richard Hipple Joins Board's Finance Committee
----------------------------------------------------------
Ferro Corporation's Board of Directors has elected Richard J. Hipple to
serve on its Finance Committee. The election increases the number of
members of Ferro’s Board to ten.
Mr. Hipple has served as Chairman, President and Chief Executive Officer
of Brush Engineered Materials Inc. since 2006. He joined Brush in 2001
and has held a variety of senior management positions, including President
and Chief Operating Officer. Prior to joining Brush, Mr. Hipple was
President of LTV Steel Company, a business unit of LTV Corporation.
Mr. Hipple received a bachelor’s degree in engineering from Drexel
University in 1975.
“We are very pleased to have Dick join our Board and provide us the
benefits of his experience in managing global operations of multinational
companies,” said Ferro Chairman, President and Chief Executive Officer
James F. Kirsch. “I look forward to Dick’s guidance and contribution to
the Board as we accomplish our transformation of Ferro into a winning
organization.”
Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE)
-- http://www.ferro.com/-- is a global producer of an array of
specialty chemicals including coatings, enamels, pigments,
plastic compounds, and specialty chemicals for use in industries
ranging from construction, pharmaceuticals and
telecommunications. Ferro operates through the following five
primary business segments: Performance Coatings, Electronic
Materials, Color and Performance Glass Materials, Polymer
Additives, and Specialty Plastics. Revenues were US$2 billion
for the FYE ended Dec. 31, 2006.
Ferro Corp. has global locations in Argentina, Australia,
Belgium, Brazil, China, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service assigned a B1 corporate
family rating to Ferro Corporation. Moody's also assigned a B1
rating to the company's US$200 million senior secured notes
(issued as unsecured notes in 2001) due in January 2009 and an
SGL-3 speculative grade liquidity rating.
FUNDACION NUESTRA: Reorganization Proceeding Concluded
------------------------------------------------------
Fundacion Nuestra Senora de Lujan's reorganization proceeding has ended.
Data published by Infobae on its Web site indicated that the process was
concluded after a court in Buenos Aires approved the debt agreement signed
between the company and its creditors.
The debtor can be reached at:
Fundacion Nuestra Senora de Lujan
Mitre 597, San Nicolas
Buenos Aires, Argentina
HUNTSMAN CORP: Basell to Acquire Assets for US$9.6 Billion
----------------------------------------------------------
Huntsman Corporation (NYSE: HUN) and Basell have signed a definitive
agreement pursuant to which Basell will acquire Huntsman in a transaction
valued at approximately US$9.6 billion, including the assumption of debt.
Under the terms of the agreement, Basell will acquire all of the
outstanding common stock of Huntsman for US$25.25 per share in cash.
The transaction was unanimously approved by the Boards of Directors of
both Basell and Huntsman. Huntsman's Board of Directors approved the
transaction agreement at the recommendation of a Transaction Committee
comprised of Huntsman independent directors.
The transaction is subject to customary closing conditions, including
regulatory approval in the U.S. and in Europe, as well as the approval of
Huntsman shareholders. Entities controlled by MatlinPatterson and the
Huntsman family, who collectively own 57% of Huntsman's common stock, have
agreed to approve the transaction. Closing is expected in the fourth
quarter of 2007.
The combined company will have an extensive geographic footprint, with
operations on all continents of the world, and will be well positioned in
fast-growing markets such as China, India, Eastern Europe and Latin
America. In 2006, Basell and Huntsman had combined revenues of more than
US$26 billion and employed approximately 20,900 people.
"Basell's industry-leading polyolefins businesses and Huntsman's
businesses will benefit from the expertise both companies have
demonstrated in technology, innovation and customer service. Together we
will be able to achieve even more," Volker Trautz, CEO of Basell, said.
Commenting on the announcement, Len Blavatnik, Chairman and founder of
U.S.-based Access Industries, owner of Basell, said: "This transaction
enhances our position as a global industrial group with long-term
strategic assets in the chemicals industry."
Mr. Blavatnik added: "Basell's management team has done an excellent job
in growing and enhancing the company over the last two years, putting it
in a position to make this acquisition. We look forward to further growth
and profitability in this industry."
Jon M. Huntsman, founder and Chairman of Huntsman Corporation, said: "This
transaction opens a new chapter in the proud history of Huntsman and for
the thousands of people who work in our facilities around the world. I am
confident Basell is the right owner for the company going forward. The
proceeds of this transaction will allow our family to focus more
effectively on the elimination of human suffering and on finding cures for
cancer."
Peter R. Huntsman, President and CEO of Huntsman, said: "This transaction
represents outstanding value for Huntsman's shareholders. The merger of
Basell and Huntsman creates one of the largest chemical companies in the
world. I am confident that this combination will allow us to even more
effectively pursue our underlying business strategies and continue to
provide rewarding opportunities for our associates."
About Basell
Basell -- http://www.basell.com/-- is the global leader in polyolefins
technology, production and marketing. It is the largest producer of
polypropylene and advanced polyolefin products; a leading supplier of
polyethylene and catalysts, and the industry leader in licensing
polypropylene and polyethylene processes, including providing technical
services for its proprietary technologies. Basell, together with its joint
ventures, has manufacturing facilities in 19 countries and sells products
in more than 120 countries. Basell is privately owned by Access
Industries.
About Huntsman
Huntsman Corporation -- http://www.huntsman.com/-- is a global
manufacturer and marketer of differentiated chemicals and pigments. Its
operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation, textiles,
footwear, paints and coatings, construction, technology, agriculture,
health care, detergents, personal care, furniture, appliances and
packaging. Originally known for pioneering innovations in packaging and,
later for rapid and integrated growth in petrochemicals, Huntsman today
has operations in 24 countries, including Argentina, Belarus, Japan,
Luxembourg, Malaysia, Spain and teh United Kingdom, among others. The
company had 2006 revenues from all operations of over US$13 billion.
IEPSI SA: Reorganization Proceeding Concluded
---------------------------------------------
Iepsi S.A.'s reorganization proceeding has ended. Data published by
Infobae on its Web site indicated that the process was concluded after a
court in Buenos Aires approved the debt agreement signed between the
company and its creditors.
The debtor can be reached at:
Iepsi S.A.
Urquiza 130, San Nicolas
Buenos Aires, Argentina
L Y M: Proofs of Claim Verification Deadline Is Aug. 10
-------------------------------------------------------
Jorge H. Campi, the court-appointed trustee for L y M Constructora
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until
Aug. 10, 2007.
Mr. Campi will present the validated claims in court as individual
reports. The National Commercial Court of First Instance in San Rafael,
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 L y M's 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 L y M's accounting and banking
records will be submitted in court.
Infobae didn’t state the reports submission dates.
Mr. Campi is also in charge of administering L y M's assets under court
supervision and will take part in their disposal to the extent established
by law.
The debtor can be reached at:
L y M Constructora S.R.L.
El Libertador 20, San Rafael
Mendoza, Argentina
The trustee can be reached at:
Jorge H. Campi
Day 46, San Rafael
Mendoza, Argentina
RED HAT: JMP Securities Maintains Market Perform Rating on Firm
---------------------------------------------------------------
JMP Securities analyst Denny C. Fish, Jr. has kept his "market perform"
rating on Red Hat Inc.’s shares, Newratings.com reports.
Mr. Fish said in a research note that Red Hat reported its fiscal first
quarter 2008 revenues and earnings per share ahead of the consensus.
According to Newratings.com, Red Hat’s non-GAAP operating cash flows
dropped to “US$52 million in the fiscal first quarter 2008,” from US$54
million in the same period the previous year. Red Hat has “guided to an
earnings per share” of up to US$0.72 for fiscal year 2008.
The non-GAAP earnings per share estimate for fiscal year 2008 was
increased to US$0.72 from US$0.69. Meanwhile, estimates for the fiscal
year 2009 was raised to US$0.85 from US$0.84.
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.
RENAUTO TUCUMAN: Will Hold Informative Assembly on Aug. 2
---------------------------------------------------------
Renauto Tucuman S.A., a company under reorganization, will hold an
informative assembly on Aug. 2, 2007.
The court-appointed for Renauto Tucuman's reorganization proceeding,
verified creditors' claims against the company. Validated claims were
used as basis in creating individual reports, which he presented in court.
The trustee also presented a general report.
The debtor can be reached at:
Renauto Tucuman S.A.
Avenida Mitre 132, San Miguel de Tucuman
Tucuman, Argentina
YPF SA: Repsol in Talks with Enrique Eskenazi for Stake Sale
------------------------------------------------------------
Argentine banker Enrique Eskenazi told Thomson Financial that he is
negotiating with Repsol YPF SA for the purchase of a 25% stake in the
company’s Argentine unit, YPF SA.
Thomson Financial relates that Mr. Eskenazi leads the Petersen group,
which controls several provincial banks in Argentina and is also active in
the construction business.
Once an accord is reached, the operation would be finalized next year,
Thomson Financial notes, citing Mr. Eskenazi.
Mr. Eskenazi told La Nacion, “We are a serious group ... I have been
working on this deal for a year. It's a long process.”
The funding for the purchase of the 25% YPF stake would come from foreign
banks, Thomson Financial says, citing Mr. Eskenazi.
Mr. Eskenazi commented to Thomson Financial, “There are groups prepared to
finance the deal ... because they have confidence in us.”
Repsol told Thomson Financial that it is studying selling up to 45% of
YPF, where it owns a 99.9% stake.
About Repsol
Repsol YPF, S.A. is an integrated oil and gas company engaged in
all aspects of the petroleum business, including exploration,
development and production of crude oil and natural gas,
transportation of petroleum products, liquefied petroleum gas
and natural gas, petroleum refining, petrochemical production
and marketing of petroleum products, petroleum derivatives,
petrochemicals and natural gas. The company operates in four
segments: Exploration and Production, Refining and Marketing,
Chemicals, and Gas and Electricity.
About YPF SA
Headquartered in Buenos Aires, Argentina, YPF S.A. is an
integrated oil and gas company engaged in the exploration,
development and production of oil and gas, natural gas and
electricity-generation activities (upstream), the refining,
marketing, transportation and distribution of oil and a range of
petroleum products, petroleum derivatives, petrochemicals and
liquid petroleum gas (downstream). The company is a subsidiary of Repsol
YPF, S.A., a Spanish company engaged in oil exploration and refining,
which holds 99.04% of its shares. Its
international operations are conducted through its subsidiaries,
YPF International S.A. and YPF Holdings Inc.
* * *
Fitch Ratings assigned BB+ long-term issuer default rating on
YPF SA. Fitch said the outlook is stable.
Moody's Investors Service assigned these ratings on YPF SA:
-- B2 long-term foreign currency corporate family
rating; and
-- Ba2 foreign currency senior unsecured rating;
Moody's said the outlook was negative.
===============
B A R B A D O S
===============
INTERPOL INC: Extends Tender Offer Consent Date to June 29
----------------------------------------------------------
Interpool Inc. has extended the consent date applicable to its previously
announced tender offer for all of the US$230 million principal amount of
its outstanding 6.0% Senior Notes due 2014, CUSIP Number 46062R AP 3. The
consent date will now be 5:00 p.m., New York City time, on June 29, 2007.
In connection with the tender offer, consents are being solicited from
noteholders to make certain proposed amendments to the indenture governing
the Notes.
Interpool is offering to purchase all of the outstanding Notes at a price
of US$1,015.00 per US$1,000 principal amount of the Notes. The Total
Consideration includes US$20.00 per US$1,000 principal amount of Notes
payable only in respect of Notes validly tendered with consents on or
prior to the new Consent Date. The Total Consideration less the Consent
Payment is referred to as the “Tender Offer Consideration.” In addition,
holders who validly tender and do not validly withdraw their Notes in the
tender offer will receive accrued and unpaid interest from the last
interest payment date up to, but not including, the date of payment for
the Notes, if the Notes are accepted for purchase pursuant to the tender
offer. Holders who tender their Notes after the new Consent Date, will
not be eligible to receive the Consent Payment. Any holder validly
tendering Notes after the new Consent Date will, if such Notes are
accepted for purchase pursuant to the tender offer, receive the Tender
Offer Consideration, plus accrued but unpaid interest to, but not
including, the date of payment for the Notes so tendered.
The expiration date of the tender offer, 8:00 a.m., New York City time, on
July 19, 2007, remains unchanged. All other terms, provisions and
conditions of the Offer to Purchase and Consent Solicitation will remain
in full force and effect. The terms of the Offer and Solicitation,
including the proposed amendments to the indenture governing the Notes,
are described in the Offer to Purchase and Consent Solicitation Statement
dated June 13, 2007.
The exclusive dealer manager and solicitation agent for the tender offer
is Bear, Stearns & Co. Inc. Questions regarding the tender offer may
directed to Bear Stearns at (877) 696-BEAR (toll free) or (212) 272-5112
(collect). The tender agent for the tender offer is D.F. King & Co., Inc.
Requests for Tender Offer Documents may be directed to:
D.F. King & Co., Inc.
Information Agent
48 Wall Street, 22nd Floor
New York, NY 10005.
The information agent may be contacted at (212) 269-5550 (for banks and
brokers only) and (800) 628-8208 (for all others toll free).
About Interpool
Interpool, Inc. (NYSE: IPX) is a supplier of equipment and services to the
transportation industry. It is a lessor of intermodal container chassis
and a world-leading lessor of cargo containers used in international
trade. The company has operations in Barbados, Singapore and Basel.
* * *
As reported in the Troubled Company Reporter on Apr. 26, 2007,
Interpool had entered into a definitive agreement to be acquired by
certain private equity funds managed by affiliates of Fortress Investment
Group LLC pursuant to a merger in which all IPX stockholders would receive
US$27.10 in cash for each share of IPX common stock that they hold. The
total transaction value, including assumed debt, is approximately US$2.4
billion.
Fitch placed the ratings of Interpool and its related subsidiaries on
Rating Watch Negative on Jan. 17, 2007. The action reflected Fitch
concerns regarding the underlying financing structure of a proposed
acquisition offer led by its current chief executive officer, Marty
Tuchman for US$24 per share of common stock.
Fitch rated Interpool and its subsidiaries, all on Rating Watch Negative:
Interpool Inc.
-- Long-term Issuer Default Rating 'BB+';
-- Senior unsecured debt 'BB+'; and
-- Senior secured credit facility 'BBB-'.
Interpool Containers Limited
-- Long-term Issuer Default Rating 'BB+'
Interpool Capital Trust
-- Preferred stock 'BB-'.
=============
B E R M U D A
=============
ARCH CAPITAL: Credit Suisse Raises Rating on Firm to Outperform
---------------------------------------------------------------
Credit Suisse analysts have upgraded their ratings on Arch Capital Group
Ltd.’s shares to "outperform" from "neutral," Newratings.com reports.
According to Newratings.com, the target price for Arch Capital was
increased to US$83 from US$80.
The analysts said in a research note that the “sell-off in Arch Capital’s
stock on account of the distribution of shares by Warburg Pincus and
Hellman & Friedman presents an attractive investment opportunity.”
The analysts told Newratings.com that Arch Capital has a robust balance
sheet, low financial leverage, below-average hurricane risk and
diversified earnings. However, its stock has “underperformed” that of
other companies “year-to-date.”
The earnings per share estimate for 2007 was raised to US$9.51, while the
estimate for 2008 was increased US$9.15, to indicate the “increased level
of share buybacks and favorable cat trends” in the second quarter 2007.
Headquartered in Bermuda, Arch Capital Group Ltd. (NASDAQ: ACGL)
-- http://www.archcapgroup.bm-- is a public limited liability
company, which provides insurance and reinsurance on a worldwide
basis through operations in Bermuda, the United States, Europe
and Canada. It provides a range of property and casualty
insurance and reinsurance lines, and focus on writing specialty
lines of insurance and reinsurance. Arch Capital classifies its
business into two underwriting segments: reinsurance and
insurance. The company's reinsurance operations are conducted
on a worldwide basis through its reinsurance subsidiaries, Arch
Reinsurance Ltd. and Arch Reinsurance Company. The company's
insurance operations in Bermuda are conducted through Arch
Insurance (Bermuda), a division of Arch Re Bermuda, which has an
office in Hamilton, Bermuda.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 15, 2006, A.M. Best assigned these ratings on to Arch
Capital's debts:
-- "bb+" from "bb" on US$200 million 8% non-cumulative
Series A preferred shares; and
-- to "bb+" from "bb" on US$125 million 7.875% non-cumulative
Series B preferred shares.
BLUE TERCEL: Proofs of Claim Must be Filed Today
------------------------------------------------
Blue Tercel Ltd.'s creditors are given until July 2, 2007, to prove their
claims to Mark W.R. Smith, 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.
Blue Tercel's shareholders agreed on June 14, 2006, to place the company
into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Mark W.R. Smith
Deloitte & Touche
Corner House
Church & Parliament Streets
P.O. Box HM 1556
Hamilton, HM FX
Bermuda
BLUE TERCEL: Sets Final General Meeting for July 16
---------------------------------------------------
Blue Tercel Ltd.'s final general meeting is scheduled on
July 16, 2007, at 11:00 a.m., at:
Corner House
Church & Parliament Streets
P.O. Box HM 1556
Hamilton, HM FX
Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that
may be given by the liquidator;
-- determining by resolution the manner in which the
books, accounts and documents of the company and of the
liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
JUPITER POWER: Proofs of Claim Filing Is Until July 13
------------------------------------------------------
Jupiter Power Holdings Ltd.'s creditors are given until
July 13, 2007, to prove their claims to Jennifer Y. Fraser, the company's
liquidator, or be excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full names,
addresses, the full particulars of their debts or claims, and the names
and addresses of their lawyers, if any.
jupiter Power's shareholders agreed on June 25, 2006, to place the company
into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court
22 Victoria Street
Bermuda
JUPITER POWER: Sets Final General Meeting for July 30
-----------------------------------------------------
Jupiter Power Holdings Ltd.'s final general meeting is
scheduled on July 30, 2007, at 9:00 a.m., at:
Canon's Court
22 Victoria Street
Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that
may be given by the liquidator;
-- determining by resolution the manner in which the
books, accounts and documents of the company and of the
liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
MARTIN CURRIE: Sets Final General Meeting for July 2
----------------------------------------------------
Martin Currie Predecessor Fund Ltd., fka Martin Currie China "A"
Fund Limited's final general meeting is scheduled on
July 2, 2007, at 10:00 p.m. at:
Thistle House, 4 Burnaby Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that
may be given by the liquidator;
-- determining by resolution the manner in which the
books, accounts and documents of the company and of the
liquidator shall be disposed; and
-- by resolution dissolving the company.
The liquidator can be reached at:
Peter Martin
Mello Jones & Martin
Hamilton, Bermuda
WEST SOLUTIONS: Final General Meeting Is Set for July 3
-------------------------------------------------------
West Solutions Ltd.'s final general meeting will be at 11:00
a.m. on July 3, 2007, or as soon as possible, at the
liquidator's place of business.
West Solutions shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company and of the liquidator will be
disposed.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
=============
B O L I V I A
=============
* BOLIVIA: Government Okays Incentives for Telecom Companies
------------------------------------------------------------
The Bolivian government has issued a decree permitting incentives to
encourage telecom companies to expand services in rural areas, the
presidential gazette reports.
Bolivian news daily Los Tiempos reports that the decree, number 29174,
allows incentives like:
-- direct awarding of concessions for rural services,
-- licenses for the use of frequencies,
-- exemption from spectrum usage fees in rural
projects,
-- the possibility to interconnect rural networks with
other operators' networks, and
-- special interconnection rates for operators
involved in rural projects.
Business News Americas relates that telecoms operator Entel wants a
“two-pronged project to bring modern cellular technology and Internet to
over 130 communities in rural Bolivia.”
As part of a connectivity accord with the Bolivian government, Entel is
installing infrastructure in rural areas, BNamericas states.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
===========
B R A Z I L
===========
AES CORP: Almost Reaching Debt Payment Pact with Banco Nacional
---------------------------------------------------------------
The AES Corporation is close to reaching an agreement with the Banco
Nacional de Desenvolvimento Economico e Social S.A. for the repayment of
its loan to the bank, Brazilian news daily Valor Economico reports.
Valor Economico notes that AES will pay some US$1 billion to Banco Nacional.
The report says that Banco Nacional is allegedly offering a discount to
AES for the debt repayment.
Business News Americas relates that SEB, a consortium controlled by AES,
borrowed some US$750 million from Banco Nacional in 1997 to help acquire a
US$1-billion, 33% voting right stake in Companhia Energetica de Minas
Gerais. SEB signed a shareholder pact with Companhia Energetica to let
the consortium influence managerial decisions at the company.
Brascan brokerage analyst Felipe Cunha said in a report that AES would
likely reach a deal with Banco Naciona.
Mr. Cunha told BNamericas, "The deal should be concluded because AES has a
strategic interest in solving this problem and BNDES [Banco Nacional]
intends to recover the money, which was already booked in its balance
sheet as a loss."
However, Carlos Constantini, a market analyst at Sao Paulo brokerage
Unibanco Corretora, said in a report that AES's strategy is unclear.
Mr. Constantini commented to BNamericas, "The key issue here is trying to
figure out AES's strategy -- raising funding to acquire BNDES' stake in
[power holding company] Brasiliana or selling all assets and quitting the
country -- and its next movement in this game of chess."
According to BNamericas, Banco Nacional has a 49.99% stake in Brasiliana.
It has disclosed plans to sell its shares.
Mr. Constantini told BNamericas, "We cannot disregard the fact AES would
strengthen its position in terms of its financial capacity to dispute
control of Brasiliana with any other sector player."
Due to AES’ ability to reach a deal on its debt with Banco Nacional,
stronger financial capacity would be possible, BNamericas states.
About Banco Nacional
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.
About The AES Corporation
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.
BANCO NACIONAL: Close To Reaching Debt Payment Accord with AES
--------------------------------------------------------------
The AES Corporation is close to reaching an agreement with the Banco
Nacional de Desenvolvimento Economico e Social S.A. for the repayment of
its loan to the bank, Brazilian news daily Valor Economico reports.
Valor Economico notes that AES will pay some US$1 billion to Banco Nacional.
The report says that Banco Nacional is allegedly offering a discount to
AES for the debt repayment.
Business News Americas relates that SEB, a consortium controlled by AES,
borrowed some US$750 million from Banco Nacional in 1997 to help acquire a
US$1-billion, 33% voting right stake in Companhia Energetica de Minas
Gerais. SEB signed a shareholder pact with Companhia Energetica to let
the consortium influence managerial decisions at the company.
Brascan brokerage analyst Felipe Cunha said in a report that AES would
likely reach a deal with Banco Naciona.
Mr. Cunha told BNamericas, "The deal should be concluded because AES has a
strategic interest in solving this problem and BNDES [Banco Nacional]
intends to recover the money, which was already booked in its balance
sheet as a loss."
However, Carlos Constantini, a market analyst at Sao Paulo brokerage
Unibanco Corretora, said in a report that AES's strategy is unclear.
Mr. Constantini commented to BNamericas, "The key issue here is trying to
figure out AES's strategy -- raising funding to acquire BNDES' stake in
[power holding company] Brasiliana or selling all assets and quitting the
country -- and its next movement in this game of chess."
According to BNamericas, Banco Nacional has a 49.99% stake in Brasiliana.
It has disclosed plans to sell its shares.
Mr. Constantini told BNamericas, "We cannot disregard the fact AES would
strengthen its position in terms of its financial capacity to dispute
control of Brasiliana with any other sector player."
Due to AES’ ability to reach a deal on its debt with Banco Nacional,
stronger financial capacity would be possible, BNamericas states.
About The AES Corporation
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.
About Banco Nacional
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: Will Fund Dominican Republic's Bus Purchase
-----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social will provide funding
to the Dominican Republic for its purchase of some 300 ethanol-fueled
buses, Business News Americas reports, citing the Dominican government.
The Dominican government said that the busses will be used as "feeder
lines to the new metro in capital Santo Domingo," BNamericas notes.
Dominican news daily Hoy Digital relates that the loan will finance the
purchase of the buses from a Brazilian firm. It will also fund the
US$93.7-million purchase of eight Super Tucano military aircraft.
Banco Nacional President Luciano Coutinho said in a statement that the
bank has financed about US$644 million of infrastructure and water
projects in the Dominican Republic.
Banco Nacional Vice President Armando Mariante told Hoy Digital that the
bank will distribute the first tranches of its US$442 million in finance
for the construction of these dams:
-- Pinalito,
-- Palomino, and
-- Las Placetas.
Reports say that Banco Nacional is financing the construction of the Linea
Noroeste and Samana aqueducts.
Money for the projects couldn't go directly to private firms, BNamericas
states, citing Mr. Coutinho.
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.
GENERAL MOTORS: Goldman Sachs Raises Shares to Buy on Wage Cuts
---------------------------------------------------------------
Goldman Sachs Group, Inc. has upgraded General Motors Corp.'s shares to
"buy" from "neutral," citing the potential for sizable wage and benefit
cuts during negotiations with the United Auto Workers for a new labor
contract, Reuters reports.
The firm also increased the 52-week price target on the stock to US$42
from US$29. The automaker's shares rose to a four-month high on Monday as
a result of the upgrade, Reuters reveals.
General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler
Group are seeking unprecedented concessions from the United Auto Workers
union in a bid to narrow what they say is a US$30-an-hour labor-cost
disadvantage against Asian rivals like Toyota Motor Corp. and Honda Motor
Co.
"GM can make a compelling case to UAW members that material wage and
benefit cuts are needed," Goldman Sachs analyst Robert Barry said in a
research note. "And we suspect members and retirees are increasingly
amenable to such cuts." He added that the "UAW pattern bargaining implies
positive read across for Ford," Reuters notes.
According to Reuters, GM shares were up 3.2 percent, or US$1.12, at
US$36.58 in early trading on the New York Stock Exchange after reaching a
session high of US$36.84. Ford shares were up 1.8 percent, or 16 cents,
at US$9.29. Monday's gains pushed GM's stock to its highest level since
Feb 20, 2007. The stock has increased 23 percent in the last two weeks.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE:GM) -- http://www.gm.com/-- was founded in 1908, GM employs about
280,000 people around the world. With global manufactures its cars and
trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks
were sold globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.
GM's OnStar subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.
At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating, and
maintained its SGL-3 Speculative Grade Liquidity Rating. The rating
outlook remains negative.
GENERAL MOTORS: Sells Unit to Carlyle Group & Onex for US$5.6BB
---------------------------------------------------------------
General Motors Corp. reached a definitive agreement for the company to
sell its Allison Transmission commercial and military business to The
Carlyle Group and Onex Corporation for approximately US$5.6 billion.
The sale agreement covers substantially all of Allison Transmission,
including seven manufacturing facilities in Indianapolis, Indiana and its
worldwide distribution network and sales offices. The production facility
in Baltimore, Maryland is dedicated to the production of conventional and
hybrid 2MODE transmissions used in GM's retail pick-up trucks and SUVs and
will remain with GM. The transaction is structured to preserve GM's and
Allison's competitive strengths in their respective product lines and is
expected to close as early as the third quarter of this year pending union
and regulatory approval.
"This is another important step to strengthen our liquidity and provide
resources to support our heavy investments in new products and
technology," Rick Wagoner, GM chairman and CEO, said. "At the same time,
this sale will position Allison for growth with strong partners in Carlyle
and Onex, which have well-established track records of working effectively
with their management teams, unions and employees," Wagoner went on to
say.
"We believe Allison is poised for excellent growth in its sector with the
increasing rate of adoption of automatic transmissions in commercial
vehicles both in North America and abroad,” Seth Mersky, managing director
of Onex said. “Allison's exceptional reputation for product quality and
reliability, its strong brand and talented management team provide it with
a competitive advantage that will allow the company to capture that
growth."
"We are excited to partner with Onex, the Allison management team and
employees as we grow this iconic brand and support its transition to a
stand-alone business," Carlyle managing director Greg Ledford said.
Allison Transmission designs and manufactures automatic transmissions for
medium and heavy-duty commercial vehicles. Its products are used in
on-highway, off-highway and vehicles. Headquartered in Indianapolis,
Indiana, Allison Transmission employs approximately 3,400 people, has
seven plants in Indianapolis and sells its transmissions through a
worldwide distribution network with sales offices in North America, South
America, Europe, Africa and Asia. The company generates annual revenues
in excess of US$2 billion.
About Carlyle Group
The Carlyle Group –- http://www.carlyle.com/-- is a private equity firm
with US$58.5 billion under management. Carlyle invests in buyouts,
venture & growth capital, real estate and leveraged finance in Asia,
Europe and North America, focusing on aerospace & defense, automotive &
transportation, consumer & retail, energy & power, healthcare, industrial,
infrastructure, technology & business services and telecommunications &
media. Since 1987, the firm has invested US$28.3 billion of equity in 636
transactions for a total purchase price of US$132 billion. The Carlyle
Group employs more than 800 people in 18 countries. In the aggregate,
Carlyle portfolio companies have more than US$87 billion in revenue and
employ more than 286,000 people around the world.
About Onex
Onex Corp. makes private equity investments through the Onex
Partners and ONCAP family of Funds. These companies are in a
variety of industries, including electronics manufacturing
services, aerostructures manufacturing, healthcare, financial
services, aircraft & aftermarket, metal services, customer
management services, theatre exhibition, personal care products
and communications infrastructure.
About General Motors
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries.
General Motors has Asia-Pacific operations in India, China, Indonesia,
Japan, the Philippines, among others. I t 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.
* * *
Standard & Poor's Ratings Services assigned its 'B+' bank loan
rating to General Motors Corp.'s proposed US$1.5 billion senior term loan
facility, expiring 2013, with a recovery rating of '1'. The 'B+' rating
was placed on Creditwatch with negative implications, consistent with the
other issue ratings of GM,
excluding recovery ratings.
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
proposed US$1.5 Billion secured term loan of General Motors
Corporation. The term loan is expected to be secured by a first
priority perfected security interest in all of the US machinery
and equipment, and special tools of GM and Saturn Corporation.
HERCULES INC: S&P Revises BB Rating's Outlook to Positive
---------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Wilmington,
Delaware-based Hercules Inc. to positive from stable and affirmed the
existing 'BB' corporate credit rating.
The outlook revision recognizes the potential for a continuation of the
steady strengthening of key cash flow protection measures.
S&P also raised the rating on the company's 6.6% notes due 2027 to 'BBB-'
from 'BB' and assigned a '1' recovery rating, reflecting our expectation
of very high recovery (90%-100%) in the event of default and asset
protection on par with the secured bank debt.
"We could raise all of the ratings within the next 12 months if business
conditions remain favorable and the company's leverage policies support a
financial profile that exceeds expectations for the current ratings," said
Standard & Poor's credit analyst Wesley E. Chinn.
The ratings reflect Hercules' aggressive, albeit declining, debt balance;
low-growth, very competitive pulp and paper chemicals markets; and some
exposure to asbestos-related liabilities. These negatives are partially
offset by Hercules' satisfactory business profile -- generating annual
revenues of about US$2 billion -- in the specialty chemical sector, a long
track record of good operating margins, and improving cash flow
generation.
Hercules derives roughly 60% of its consolidated operating earnings from
the Aqualon group, a leading producer of water-soluble polymers. Diverse
end markets include water-based paints and coatings, construction
materials, personal care, pharmaceutical, food, and oil and gas drilling.
Another positive is a strong global presence, as more than 60% of
Aqualon's sales come from outside the U.S. Aqualon's results should
continue to benefit from increasing environmental awareness, regulation
favoring water-soluble polymers, global-supply arrangements with
customers, and the increasing use of products in emerging markets. In
particular, volume growth should reflect new capacity expansions in China,
and S&P expect the overall energy business to be one of the larger growth
components for Aqualon.
Hercules Inc. (NYSE:HPC) -- http://www.herc.com/-- manufactures and
markets chemical specialties globally for making a variety of products for
home, office and industrial markets. The company has its regional
headquarters in China and Switzerland, and a production facility in
Brazil.
RHODIA SA: AMF Unit Releases Investigation Results
--------------------------------------------------
The Commission des Santions, a unit of the French securities regulator,
the Autorite des Marches Financiers, released findings on its
investigation into certain financial issues at Rhodia S.A. dating back to
2001 to 2003.
The commission rejected the complaints concerning the valuation of Chirex
in 2002 and 2003 and the necessity to depreciate the related goodwill at
the end of the first half of 2003. It found that Rhodia's disclosures in
October 2003 were inadequate with regard to one specific issue relating to
that business.
The complaint relating to cash flow was rejected. The commission also
rejected the complaint regarding the disclosures of environmental risks.
The commission found that Yves-Rene Nanot, currently chairman of Rhodia's
board and former chairman of the board's audit committee, did not violate
any AMF rules.
The Commission des Sanctions however upheld:
-- the complaint concerning disclosure of the Group's debt in
the years 2001 to 2003; and
-- the complaint concerning omission of the depreciation of
deferred tax assets as of June 30, 2003. Rhodia stated
that this depreciation was recorded on December 31, 2003.
Based on its findings, the Commission imposed a fine on Rhodia of EUR750,000.
"With this decision, a page of Rhodia's history has been turned. I want
to emphasize the importance I attach to the quality and transparency of
the Group's financial communications," Rhodia CEO Jean-Pierre Clamadieu
stated.
About Rhodia
Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) --
http://www.rhodia.com/-- is a global specialty chemicals company
partnering with major players in the automotive, electronics,
pharmaceuticals, agrochemicals, consumer care, tires, and paints and
coatings markets. Rhodia offers tailor- made solutions combining original
molecules and technologies to respond to customers' needs. The group
generated sales of EUR4.8 billion in 2006 and employs around 16,000 people
worldwide.
Rhodia is listed on Euronext Paris and the New York Stock Exchange. The
company has operations in Brazil.
* * *
As reported in the TCR-Europe on April 26, 2007, Fitch Ratings affirmed
Rhodia S.A.'s Issuer Default Rating at BB- and revised the Outlook to
Positive from Stable. Fitch has assigned Rhodia SA's proposed issue of up
to EUR595.125 million bonds convertible and/or exchangeable for new and/or
existing shares an expected 'BB-' rating.
As reported in the TCR-Europe on April 23, 2007, Moody's Investors Service
upgraded Rhodia S.A. corporate family rating to Ba3 and assigned
Probability-of-Default rating for the group at Ba3; Moody's also upgraded
senior secured notes at Rhodia S.A. to B1 and assigned LGD assessment at
LGD4 (69%). The proposed convertible notes are rated (P)B1, LGD4 (69%).
These ratings are affected:
-- Corporate Family Ratings upgraded to Ba3;
-- Probability-of-Default assigned at Ba3;
-- Rhodia S.A. Senior Unsecured ratings upgraded to B1, LGD4
(69%); and
-- Rhodia S.A. Senior convertible notes rated (P)B1, LGD4
(69%).
Standard & Poor's Ratings Services raised its long-term corporate credit
rating on Rhodia to BB- from B+, and its long- term debt rating on the
group to B from B-.
At the same time, Standard & Poor's assigned its B senior unsecured debt
rating to Rhodia's proposed new bond, which will be used for refinancing
purposes.
PETROLEO BRASILEIRO: Expects Hike in Gas Import
-----------------------------------------------
Petroleo Brasileiros' International Area Manager Nestor Cervero was quoted
by official news agency ABN as saying that Brazil's need for imported gas
over the years would grow.
Brazil has its own reserves but the volume is not enough to meet local
demand. It currently imports most of its gas needs from Bolivia,
Venezuela and Peru.
Brazil and Venezuela has inked an agreement for the construction of a
Southern Gas Pipeline that would link the two countries, providing an
avenue to increase imports from Venezuela.
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: Investing US$2 Billion in Carabobo Block
-------------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA told the Associated
Press that it, along with Venezuelan counterpart Petroleos de Venezuela
SA, will invest some US$2 billion in the development of the Carabobo block
in the Orinoco heavy oil belt in Venezuela.
Petroleo Brasileiro and Petroleos de Venezuela would start production from
the extra-heavy field in 2009, the AP says, citing Petroleo Brasileiro
spokesperson Carolina Rocha.
Petroleo Brasileiro’s International Director Nestor Cervero told Brazilian
news daily Folha de S. Paulo that the firm will hold a 40% stake in the
project. Meanwhile, Petroleos de Venezuela will have 60% of the project.
Petroleo Brasileiro and Petroleos de Venezuela will upgrade the tar oil
from Carabobo I in Venezuela and send part of the output to a heavy oil
plant in northeastern Brazil to be constructed by the two firms, the AP
states.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state
oil company in charge of the development of the petroleum, petrochemical
and coal industry, as well as planning, coordinating, supervising and
controlling the operational activities of its divisions, both in Venezuela
and abroad. The company has a commercial office in China.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors in
Brazil. Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
SOLECTRON CORP: Earns US$12.1 Million in Quarter Ended June 1
-------------------------------------------------------------
Solectron Corporation earned US$12.1 million for the three months ended
June 1, 2007, compared to US$42 million of net income for the three months
ended May 26, 2006.
The company also recorded sales of US$2.99 billion in the third quarter of
fiscal 2007, an increase of 3 percent over second quarter fiscal 2007
revenues of US$2.90 billion, and an increase of 10 percent over third
quarter fiscal 2006 revenues of US$2.70 billion.
The company reported GAAP profit after tax from continuing operations of
US$12.2 million in the third quarter of fiscal 2007, compared with a GAAP
profit after tax from continuing operations of US$15.6 million in the
second quarter of fiscal 2007. In the third quarter of fiscal 2006,
Solectron reported a GAAP profit after tax from continuing operations of
US$42.4 million.
Non-GAAP profit after tax from continuing operations was US$50.2 million,
in the third quarter of fiscal 2007, compared with non-GAAP profit after
tax from continuing operations of US$41.0 million for the second quarter
of fiscal 2007. In the third quarter of fiscal 2006, Solectron reported
non-GAAP profit after tax from continuing operations of US$38.9 million.
Non-GAAP financial results do not include restructuring costs, impairment
charges, amortization of intangibles, or stock-based compensation
expenses.
Recent Acquisition
On June 4, 2007, Solectron and Flextronics International Ltd. reported
that they have entered into a definitive agreement for Flextronics to
acquire Solectron. The merger agreement has been filed with the SEC. The
transaction is expected to close in the fourth calendar quarter of 2007.
About Solectron
Headquartered in Milpitas, California, Solectron Corp.
(NYSE: SLR) -- http://www.solectron.com/-- provides a full range of
worldwide manufacturing and integrated supply chain services to the
world's premier high-tech electronics companies. Solectron's offerings
include new-product design and introduction services, materials
management, product manufacturing, and product warranty and end-of-life
support. The company operates in more than 20 countries on five
continents including France, Malaysia, and Brazil, among others. It had
sales from continuing operations of US$10.6 billion in fiscal 2006.
* * *
As reported in the Troubled Company Reporter on Dec. 14, 2006, Standard &
Poor's Ratings Services raised its corporate credit and senior unsecured
ratings on Milpitas, California-based Solectron Corp. to 'BB-' from 'B+',
and its subordinated debt rating to 'B' from 'B-'. S&P said the outlook
is stable.
On May 9, 2007, Fitch Ratings affirmed Solectron Corporation's ratings as:
-- Issuer Default Rating at 'BB-';
-- Senior secured bank facility at 'BB+';
-- Senior unsecured debt at 'BB-'; and
-- Subordinated debt at 'B+'.
TK ALUMINUM: Unit Closes Equity Interest Sale in Nanjing Teksid
---------------------------------------------------------------
TK Aluminum Ltd., the indirect parent of Teksid Aluminum Luxembourg S.A
R.L., S.C.A., disclosed that on June 27, 2007, its subsidiary Teksid
Aluminum S.r.l. completed the sale of its remaining 40% equity interest in
Nanjing Teksid Aluminum Foundry
Co., Ltd. to Tenedora Nemak, S.A. de C.V., a subsidiary of ALFA, S.A.B. de
C.V. Teksid Luxembourg indirectly sold an additional 30% stake in Nanjing
Teksid to Nemak on March 15, 2007. With the completion of the sale of
this remaining interest in Nanjing
Teksid, the company has consummated the sales contemplated by the
previously disclosed revised terms of the Nemak transaction.
Pursuant to the revised terms of the Nemak transaction, the aggregate
purchase price allocated to the sale of the Company's entire 70% interest
in Nanjing Teksid and receivables related thereto was approximately
US$15.3 million in cash consideration plus the issuance of an additional
0.21% of synthetic equity interest in the Nemak business (bringing the
company's total synthetic equity interest in the Nemak business to 6.68%).
At the closing of the sale of the company's 40% equity interest in
Nanjing Teksid, the company's subsidiaries received aggregate net cash
proceeds of approximately US$14.8 million for the company's entire 70%
indirect interest in Nanjing Teksid and certain related receivables, which
aggregate net proceeds included a payment of approximately US$1.9 million
for Teksid Luxembourg's 30% interest in Nanjing Teksid indirectly
transferred to Nemak as part of the initial closing on
March 15, 2007, and approximately US$1.4 million related to the purchase
of a loan receivable from Teksid Luxembourg. In addition, at the June
27th closing, Teksid Italy received an additional approximately US$1.7
million in cash related to the purchase of certain equipment used by
Nanjing Teksid from Teksid Italy, and Teksid Luxembourg received an
additional approximately US$1 million in cash as the result of the
issuance of a loan by ALFA. The aggregate cash proceeds were based on the
purchase price allocation and estimated withholding taxes as contemplated
by the revised terms of the Nemak transaction.
Teksid Aluminum -- http://www.teksidaluminum.com/--
manufactures aluminum engine castings for the automotive
industry. Principal products include cylinder heads, engine
blocks, transmission housings, and suspension components. The
company operates 15 manufacturing facilities in Europe, North
America, South America, and Asia. The company maintains
operations in Italy, Brazil, and China.
Until Sept. 2002, Teksid Aluminum was a division of Teksid
S.p.A., which was owned by Fiat. Through a series of
transactions completed between Sept. 30, 2002 and Nov. 22, 2002,
Teksid S.p.A. sold its aluminum foundry business to a consortium
of investment funds led by equity investors that include
affiliates of each of Questor Management Company, LLC, JPMorgan
Partners, Private Equity Partners SGR SpA and AIG Global
Investment Corp. As a result of the sale, Teksid Aluminum is
now owned by its equity investors through TK Aluminum Ltd., a
Bermuda holding company.
* * *
On Jan. 16, Moody's Investors Service placed TK Aluminum
Ltd.'s long-term corporate family rating at Caa3.
NOVELIS INC: Extends Change of Control Notes Offer to July 3
------------------------------------------------------------
Novelis Inc. has extended the expiration date of its previously announced
change of control offer to 5:00 p.m., New York City time, on July 3, 2007.
The original change of control offer expiration date was 8:00 a.m., New
York City time, on June 15, 2007 and was extended to 5:00 p.m., New York
City time, on
June 27, 2007. As of the extended expiration date, US$984,000 aggregate
principal amount of senior notes had been validly tendered pursuant to the
change of control offer. All senior notes validly tendered pursuant to the
change of control offer prior to the new extended expiration date will be
entitled to receive the offer consideration of US$1,010 per US$1,000
principal amount of senior notes.
Other than as set forth herein, the change of control offer as described
in the Offer to Purchase and Consent Solicitation Statement dated May 16,
2007, remains unchanged.
UBS Investment Bank and ABN AMRO Incorporated are acting as dealer
managers in connection with the change of control offer. Questions about
the change of control offer may be directed to the Liability Management
Group of UBS Investment Bank at (888) 722-9555 ext. 4210 (toll free) or
(203) 719-4210 (collect) and to Robert Silverschotz at ABN AMRO
Incorporated at (212) 409- 6862. Requests for documentation should be
directed to Global Bondholder Services Corporation, the information agent
in connection with the change of control offer, at (212) 430-3774 or (866)
807-2200 (toll free). The depositary for the change of control offer is
The Bank of New York Trust Company, N.A.
Based in Atlanta, Georgia, Novelis Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- is the global provider of aluminum
rolled products and aluminum can recycling. The company
operates in 11 countries and has approximately 12,900 employees.
Novelis has the capability to provide its customers with a
regional supply of technologically sophisticated rolled aluminum
products throughout Asia, Europe, North America and South
America. Through its advanced production capabilities,
the company supplies aluminum sheet and foil to the automotive
and transportation, beverage and food packaging, construction
and industrial, and printing markets.
Novelis South America operates two rolling plants and primary
production facilities in Brazil in the Latin American region.
Novelis also has operations in Germany, Switzerland and Korea.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 25, 2007, Standard & Poor's Ratings Services assigned its 'BB' debt
rating, with a recovery rating of '2', to Novelis Inc.'s US$860 million
secured term loan due 2014. The '2' recovery rating indicates an
expectation of substantial (70%-90%) recovery in the event of default.
As reported in the Troubled Company Reporter on June 6, 2007,
Standard & Poor's Ratings Services affirmed all of its ratings
on Novelis Inc., including the 'BB-' long-term corporate credit
rating, and removed the ratings from CreditWatch with developing
implications, where they were placed Feb. 12, 2007. S&P said the outlook
is negative.
===========================
C A Y M A N I S L A N D S
===========================
AHON BRIDGE: Proofs of Claim Filing Deadline Is July 26
-------------------------------------------------------
Ahon Bridge creditors are given until July 26, 2007, to prove their claims
to Martin Couch 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.
Ahon Bridge's shareholders agreed on June 12, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
ARGENT NIM: Proofs of Claim Filing Ends on July 26
--------------------------------------------------
Argent Nim 2003-N7 creditors are given until July 26, 2007, to prove their
claims to Karen Ellerbe 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.
Argent Nim's shareholders agreed on June 11, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
CABLE & WIRELESS: Unit Using Calix’s Access Platform
----------------------------------------------------
Cable & Wireless’ unit in Barbados said in a statement that it has chosen
US solutions provider Calix Management System as the supplier of a
multiservice access platform for the expansion of its network.
Business News Americas relates that the Calix C7 platform will convert
Cable & Wireless Barbados' infrastructure into an Internet protocol-based
access network, which the firm expects to let some 24,000 additional lines
and a number of digital subscriber line Internet connections. The network
also lets the company offer different Internet Protocol Multimedia
Subsystem value added solutions.
Cable & Wireless Barbados’ networks vice president El Layne said in a
statement, "Our market is competitive and with the Calix C7 we are able to
maintain and increase our competitive advantage as we move to an IP-based
network."
Cable & Wireless Barbados uses a Calix platform for over 10,000 telephony
and asymmetric digital subscriber lines, BNamericas states.
Headquartered in London, Cable & Wireless Plc --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
The company has operations are in the United Kingdom, India,
China, the Cayman Islands and the Middle East.
* * *
In 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%
CLEMATIS FINANCIAL: Proofs of Claim Filing Deadline Is July 26
--------------------------------------------------------------
Clematis Financial Fund Ltd. creditors are given until
July 26, 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.
Clematis Financial's shareholders agreed on June 8, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
CLEMATIS FIN'L MASTER: Proofs of Claim Must be Filed by July 26
---------------------------------------------------------------
Clematis Financial Master Fund Ltd. creditors are given until July 26,
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.
Clematis Financial's shareholders agreed on June 8, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
DISC LTD: Proofs of Claim Must be Filed by July 26
--------------------------------------------------
Disc Ltd. creditors are given until July 26, 2007, to prove their claims
to Chris Marett 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.
Disc Ltd.'s shareholders agreed on June 6, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Chris Marett
Emile Small
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
DUPLEX FIFTH: Proofs of Claim Filing Deadline Is July 26
--------------------------------------------------------
Duplex Fifth creditors are given until July 26, 2007, to prove their
claims to Guy Major 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.
Duplex Fifth's shareholders agreed on June 6, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Guy Major
Joshua Grant
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
ENRON INTERNATIONAL: Proofs of Claim Filing Ends on July 26
-----------------------------------------------------------
Enron International’s creditors are given until July 26, 2007, to prove
their claims to Michael P. Borom, 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.
Enron International’s shareholders agreed on June 11, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Michael P. Borom
Impala Partners LLC, 18 Marshall Street
Suite 112, Norwalk CT 06854
U.S.A.
ENRON INT'L BRAZIL: Proofs of Claim Must be Filed by July 26
-----------------------------------------------------------
Enron International Brazil Gas Holdings Ltd.’s creditors are given until
July 26, 2007, to prove their claims to Michael P. Borom, 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.
Enron International’s shareholders agreed on June 11, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Michael P. Borom
Impala Partners LLC, 18 Marshall Street
Suite 112, Norwalk CT 06854
U.S.A.
FCT PACIFIC: Proofs of Claim Filing Deadline Is July 26
-------------------------------------------------------
FCT Pacific Equities Ltd. creditors are given until
July 26, 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 Pacific's shareholders agreed on May 17, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
KKR FINANCIAL (2006-2): Proofs of Claim Must be Filed by July 26
----------------------------------------------------------------
KKR Financial CLO 2006-2 Ltd. creditors are given until
July 26, 2007, to prove their claims to George Bashforth 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.
KKR Financial's shareholders agreed on June 12, 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
George Bashforth
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
KKR FINANCIAL (2007-2): Proofs of Claim Filing Is Unitl July 26
---------------------------------------------------------------
KKR Financial CLO 2007-2 Ltd. creditors are given until
July 26, 2007, to prove their claims to George Bashforth 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.
KKR Financial's shareholders agreed on June 12, 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
George Bashforth
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
KKR FINANCIAL (2007-3): Proofs of Claim Filing Ends on July 26
--------------------------------------------------------------
KKR Financial CLO 2007-3 Ltd. creditors are given until
July 26, 2007, to prove their claims to George Bashforth 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.
KKR Financial's shareholders agreed on June 12, 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
George Bashforth
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MERRILL LYNCH: Proofs of Claim Must be Filed by July 26
-------------------------------------------------------
Merrill Lynch European Equity Hedge Fund Ltd. creditors are given until
July 26, 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.
Merrill Lynch's shareholders agreed on Feb. 5, 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
Jan Neveril
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MERRILL LYNCH (USD): Proofs of Claim Filing Ends on July 26
-----------------------------------------------------------
Merrill Lynch European Equity Hedge Fund (USD) Ltd. creditors are given
until July 26, 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.
Merrill Lynch's shareholders agreed on Feb. 5, 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
Jan Neveril
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MERRILL LYNCH (EUR): Proofs of Claim Must be Filed by July 26
-------------------------------------------------------------
Merrill Lynch European Equity Hedge Fund (EUR) Ltd. creditors are given
until July 26, 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.
Merrill Lynch's shareholders agreed on Feb. 5, 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
Jan Neveril
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
TYPHOON FUNDING: Proofs of Claim Filing Ends on July 26
-------------------------------------------------------
Typhoon Funding Corp. creditors are given until July 26, 2007, to prove
their claims to Richard Gordon and Andrew Dean, 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.
Typhoon Funding's shareholders agreed on June 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:
Richard Gordon
Andrew Dean
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
WINDING RIVER: Proofs of Claim Must be Filed by July 26
-------------------------------------------------------
Winding River Funding (Cayman), Ltd. creditors are given until July 26,
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.
Winding River's shareholders agreed on May 30, 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
George Town, Grand Cayman
Cayman Islands
=========
C H I L E
=========
CONSTELLATION BRANDS: Hires Rob Sands as Chief Executive Officer
----------------------------------------------------------------
Constellation Brands Inc.'s board of directors has named Robert S. (Rob)
Sands, chief executive officer effective July 26, 2007. Richard Sands
will remain active in the company as chairman of the board.
"The board of directors of Constellation Brands has unanimously concurred
that it is in the best interests of the company and its stockholders that
Rob Sands succeed Richard Sands as the next chief executive officer,"
stated James A. Locke III, head of the board's governance committee.
"Rob's 21 years with the company; his proven knowledge, experience and
leadership abilities; established track record in having already served as
Constellation's general counsel, chief operating officer and president;
collectively give the board full confidence in his capabilities to lead
the company."
Rob Sands joined Constellation Brands in June 1986 as general counsel
overseeing the company's legal affairs, with an emphasis on its
acquisitions. In 1993 he was appointed executive vice president and
general counsel and promoted to chief executive officer of Constellation
International after the company's acquisition of the United Kingdom's
Matthew Clark plc in 1998. From 2000 through most of 2002, he served as
group president over both the U.K. operations and Canandaigua Wine
company.
He was named president and chief operating officer for Constellation
Brands in December 2002. He is a member of the company's board of
directors and has a bachelor's degree from Skidmore College and a law
degree from Pace University. Prior to joining Constellation he was an
attorney at a Rochester, N.Y., law firm.
"After 28 years with the company, and the last 14 as chief executive
officer, it is time for me to pass the CEO baton, and Rob is the right
choice to maintain continuity in Constellation's ongoing pursuit of True
Growth and harvesting opportunities to improve return on invested capital,
earnings and free cash flow," said Richard Sands, Constellation Brands
chairman and chief executive officer. "Rob's focus will be to lead
Constellation Brands to the next level of growth and value creation by
maintaining the company's entrepreneurial spirit, decentralized structure,
core values and long-term strategic vision. I will be available to
provide guidance, although Rob will be running the company, something I
firmly believe is the right structure to maximize the company's future
growth potential."
Richard Sands joined Constellation Brands in August 1979, and
subsequently served in various wine production, finance, sales and
marketing roles before being named executive vice president in 1982. In
May 1986, he was named president and chief operating officer, and was
named chief executive officer in 1993. In September 1999 he was named
chairman.
He has a bachelor's degree from the University of Vermont, in addition to
master's and doctorate degrees in social psychology from the University of
North Carolina.
Resulting from these changes, Keith Wilson has been promoted to the newly
created position of chief administrative officer and he will report to Rob
Sands, also effective July 26, 2007. Mr. Wilson, who is currently
Constellation's executive vice president and chief human resources
officer, will be overseeing the company's global information technology,
human resources and supply chain activities, in addition to having
responsibility for the corporate communications and community relations
group. Also effective on July 26, 2007, Jose Fernandez will be promoted
to the new position of chief executive officer for Constellation Wines
North America, which encompasses the company's Constellation Wines U.S.
and Vincor Canada operations. He is currently chief executive officer for
Constellation Wines U.S.
Headquartered in Fairport, New York, Constellation Brands Inc.
(NYSE:STZ, ASX:CBR) -- http://www.cbrands.com/-- produces and
markets beverage alcohol brands with a broad portfolio across
the wine, spirits and imported beer categories. The company
also operates in the United Kingdom, Canada, Australia, Japan,
and New Zealand. One of Constellation Brands wine and grape
processing facilities is located in Casablanca, Chile.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 15, 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured debt rating to Constellation Brands
Inc.'s proposed US$700 million note offering due 2017, issued
under Rule 144A with registration rights.
As reported in the Troubled Company Reporter-Latin America on
May 11, 2007, Fitch Ratings has assigned a 'BB-' rating to
Constellation Brands Inc.'s proposed US$700 million 10-year
senior note offering.
As reported in the Troubled Company Reporter-Latin America on
May 10, 2007, Moody's assigned a Ba3 rating to Constellation
Brands Inc.'s US$700 million senior unsecured note issuance
which will be used to reduce outstanding borrowings under the
US$900 million revolving portion of the company's senior credit
facility. Moody's affirmed all other ratings of the company
with stable outlook.
EASTMAN KODAK: Sells All-In-One Inkjet Printers to Office Depot
---------------------------------------------------------------
Eastman Kodak Company reported that Office Depot, a leading global
provider of office products and services, will carry the KODAK EASYSHARE
family of All-in-One printers beginning July 1. This innovative
all-in-one printing solution can save consumers up to 50 percent on
everything they print, including text documents and photos. Savings based
on home printing of documents and photos, using average ink costs of
comparable consumer inkjet printers. Actual results may vary.
“Kodak’s is revolutionizing home printing and our printers are receiving
resounding support from consumers,” said Michael Korizno, General Manager
for the Americas Consumer Digital Group, Vice President of Kodak. “We’re
excited to be able to expand product availability with a market leader
such as Office Depot.”
Office Depot will sell KODAK EASYSHARE All-in-One printers in all of the
company’s more than 1,170 retail stores in the U.S., as well as online at
www.officedepot.com.
“The new Kodak printing system is an ideal solution for consumers who are
looking for quality and performance at an excellent value,” said Scott
Koerner, Senior Vice President of Merchandising for Office Depot. “This
service provides customers with another choice when it comes to purchasing
ink for the home or office.”
The exclusive KODACOLOR technology integrated in KODAK EASYSHARE
All-in-One inkjet printers is a combination of several elements:
* innovative pigment inks and permanent print heads,
* micro-porous photo paper, and
* Kodak’s long-standing experience in color and photo
technology.
This combination ensures excellent results for all printouts, be it text,
graphics, or photos with vibrant colors.
Office Depot customers will enjoy the above savings as compared to other
consumer inkjet systems for all types of printouts, with manufacturer
suggested pricing of US$9.99 for black ink cartridges and US$14.99 for
five-ink color cartridges. These ink prices ensure low cost-of-printing,
as recently confirmed by third-party ink yield testing by independent
testing lab QualityLogic, and a Kodak cost-of-printing analysis.
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK)-- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.
The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Fitch Ratings has upgraded Eastman Kodak Company's
senior unsecured debt to 'B/RR4' from 'B-/RR5' due to improved
recovery prospects following the company's redemption on
May 3, 2007, of a US$1.15 billion secured term loan funded with a portion
of the proceeds from the sale of its Health Group to
Onex Healthcare Holdings, Inc., for US$2.35 billion on
April 30, 2007.
In addition, Fitch has affirmed these Kodak ratings:
-- Issuer Default Rating 'B';
-- Secured credit facility 'BB/RR1'.
SHAW GROUP: Energy & Climate Picked as Asset Advisors for Leaf
--------------------------------------------------------------
The Shaw Group Inc. announced that Energy and Climate Advisors, a joint
venture company formed by Shaw Capital, Inc., and London-based EEA Fund
Management Ltd., has been selected to serve as the asset advisor for Leaf
Clean Energy Company. Leaf is a clean energy asset company that began
trading today on the London Stock Exchange AIM market with an initial
market capitalization of approximately US$400 million. Under the Asset
Advisory Agreement, Energy and Climate Advisors will assist Leaf in the
sourcing of investment opportunities in the renewable and alternative
energy markets and provide support to Leaf in the screening, evaluation,
development, and operation and maintenance of assets acquired by Leaf.
J.M. Bernhard, Jr., chairman, president and chief executive officer of
Shaw, referring to the appointment, said, “Shaw Capital is quickly
establishing itself as an important component of Shaw’s complete suite of
solutions for its clients. Not only can Shaw provide traditional services
such as evaluating project feasibility, providing engineering and
construction services, and supporting the operation and maintenance of the
asset; now, through Shaw Capital, we may also provide access to capital
for projects through our relationships with entities like Leaf.”
Dan Shapiro, president of Shaw Capital, added, “Shaw Capital’s strategic
relationship with EEA provides a unique combination of skills and
experience for success in the robust new energy and emerging climate
change markets, particularly those occurring within North America."
Simon Shaw (no relation to The Shaw Group), founder of EEA, said, “The
U.S. is now in the embryonic stages of a fundamental long-term transition
to a low carbon economy, which is a massive step forward for the clean
energy sector. Together with our partners at The Shaw Group, we are well
positioned to access project level opportunities within this sector.”
Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR)
-- http://www.shawgrp.com/-- provides services to the
environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers. It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries. The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution. In
January 2005, the company sold substantially all of the assets
of its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.
The company has operations in Chile, China, Malaysia, the United
Kingdom and Venezuela, among others.
* * *
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
October 2006. S&P said the outlook is stable.
In addition, 'BB' senior secured debt rating was affirmed after
the US$100 million increase to the company's revolving credit
facility.
===============
C O L O M B I A
===============
PARKER DRILLING: Prices US$115 Million Senior Notes Offering
------------------------------------------------------------
Parker Drilling Company disclosed the pricing of its registered public
offering of US$115 million aggregate principal amount of convertible
senior notes due 2012. The Notes will pay interest semiannually at a rate
of 2.125% per year; were priced at 100%; and have an initial conversion
rate of 72.2217 shares of common stock per US$1,000 principal amount of
notes (equivalent to an initial conversion price of approximately US$13.85
per share), subject to adjustment. The sale of the Notes is expected to
close on July 5, 2007. Parker granted the underwriters an option to
purchase up to an additional US$10 million aggregate principal amount of
Notes solely to cover over-allotments.
Parker intends to use the net proceeds from the offering to redeem all of
its outstanding senior floating rate notes due 2010 and for general
corporate purposes. Additionally, Parker intends to use a portion of the
net proceeds to pay the net cost of convertible note hedge and warrant
transactions, which is expected to reduce the potential dilution to
Parker's common stock from the conversion of the Notes and to have the
effect of increasing the conversion price of the Notes. Parker has been
advised by the counterparties to the convertible note hedge and warrant
transactions that the counterparties expect to enter into various
derivative transactions at and possibly after the pricing of the offering
of the Notes and may unwind such derivative transactions, enter into other
derivative transactions and purchase and sell Parker's common stock in
secondary market transactions following the pricing of the Notes
(including during any cash settlement averaging period relating to the
Notes). These derivative transactions could have the effect of
increasing, or preventing a decline in, the price of Parker's common stock
at or shortly after the pricing of the offering of the Notes. If the
counterparties were to unwind various derivatives and/or purchase or sell
Parker's common stock in secondary market transactions prior to the
maturity of the Notes, such activity could adversely affect the price of
Parker's common stock or the settlement amount payable upon conversion of
the Notes.
The offering was made pursuant to an effective registration statement
filed with the U.S. Securities and Exchange Commission.
The sole book-running manager for this offering will be Banc of America
Securities LLC. Deutsche Bank Securities and Lehman Brothers will be
acting as co-managers. When available, copies of the prospectus relating
to the Notes may be obtained by contacting:
Banc of America Securities LLC
Capital Markets Operations (Prospectus Fulfillment)
100 West 33rd Street
New York, NY 10001.
Headquartered in Houston, Texas, Parker Drilling Company
-- http://www.parkerdrilling.com/-- provides contract drilling
and drilling-related services worldwide. The company has rigs
located in Indonesia, New Zealand, Colombia and Mexico, among
others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 6, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the oilfield service and refining
and marketing sectors last week, the rating agency confirmed its
B2 Corporate Family Rating for Parker Drilling Company, as well
as it B2 rating on the company's 9.625% Senior Unsecured
Guaranteed Global Notes Due 2013, and Senior Unsecured
Guaranteed Floating Rate Global Notes Due 2010. Moody's
assigned those debentures an LGD4 rating suggesting noteholders
will experience a 55% loss in the event of default.
ROYAL & SUN: Confirms Completion of Codan AS Takeover
-----------------------------------------------------
Royal & Sun Alliance Insurance Group plc considers all conditions of the
Tender Offer launched on May 24, 2007, to have been satisfied and confirms
that it will complete the Offer.
RSA Overseas Holdings B.V., a unit of Royal & Sun Alliance, launched a
voluntary conditional public tender offer for the acquisition of all the
outstanding issued shares and voting rights in Codan A/S.
On June 21, 2007, the Tender Offer expired and at that time R&SA owned or
had received valid acceptances for an aggregate of 41,894,201 Codan shares
of nominal value DKK20 each.
R&SA now holds 97.4% of the issued Shares and voting rights of Codan
excluding the 2,212,825 (4.89%) treasury shares already held by Codan.
Settlement is expected to take place today, June 28, 2007.
R&SA intends to initiate a compulsory acquisition procedure to acquire the
remaining shares, and has today requested an Extraordinary General Meeting
of Codan to seek shareholder approval for the delisting of Codan shares
from the Copenhagen Stock Exchange.
About Royal & Sun Alliance
Headquartered in London, England, Royal & Sun Alliance Insurance
Group Plc -- http://www.royalsunalliance.com/-- provides
insurance products and services in over 130 countries.
The group consists of three regions -- U.K., Scandinavia, and
International -- with operations in Argentina, Bahrain, Belgium,
Brazil, Canada, Chile, China, Colombia, Denmark, Egypt, France,
Germany, Hong Kong, India, Ireland, Italy, Latvia, Lithuania,
Malaysia, Mexico, Netherland Antilles, Netherlands, Norway,
Oman, Saudi Arabia, Singapore, Sweden, UAE, Uruguay and
Venezuela.
* * *
As of Feb. 22, 2007, Royal & Sun Alliance Insurance Group PLC
carries Moody's Ba1 preferred stock rating.
* COLOMBIA: Peso Bonds Surge on Interest Rate Outlook
-----------------------------------------------------
Colombia's peso bonds gained on speculations the central bank may halt
increase in interest rates, Bloomberg News reports.
"Bonds are benefiting from expectations inflation will slow through this
year as food prices fall and higher interest rates slow spending,"
Alexander Cardenas, head analyst at Bogota-based Acciones y Valores
brokerage told Bloomberg. "That will likely lead the central bank to halt
rate increases after next month."
Expectations the Federal Reserve would resist calls to raise its key
lending rate strengthened the peso today, Mr. Cardenas added, according to
Bloomberg.
Overnight lending rate was hiked to 9% in June 15, making it the highest
since October 2001, Bloomberg says. The rate increases were aimed at
curbing inflation.
Colombia's annual inflation rate will likely slow to 6.13% in June from
6.23% in May, Bloomberg says, citing the median forecast of 14 economists
surveyed. The central bank targets inflation between 3.5% and 4.5% this
year.
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
===================================
ASHMORE ENERGY: Completes Calidda Acquisition from SUEZ Energy
--------------------------------------------------------------
Ashmore Energy International, in partnership with Promigas, has completed
its acquisition of Calidda from SUEZ Energy International. Calidda is a
natural gas distribution company serving Lima and Callao in Peru. AEI and
Promigas hold 60% and 40% ownership positions in Calidda, respectively.
AEI owns 52.9% of Promigas.
The transaction, which was first announced in February 2007, has received
all of the necessary approvals, including that of Peru’s Minister of
Energy and Mines. AEI and Promigas also have created Compania Peruana de
Servicios Energeticos SA (Copeser) to manage the operations of Calidda, to
focus on the expansion of services in the Lima and Callao service areas
and to develop other natural gas projects throughout Peru.
AEI and Promigas have developed a long-term business plan for their
operations in Peru. The companies believe that their plan will benefit a
large portion of the Peruvian population and they are confident that more
people in the country will have access to natural gas than before.
Calidda will pursue an aggressive strategy to sign up new customers. AEI
and Promigas also hope to expand the coverage area for the natural
gas-powered vehicles market, so that the vehicles become a competitive and
viable transportation option in Peru. Meanwhile, Calidda will work to
identify and implement important energy solutions for its industrial
clients and to position itself as a responsible corporate citizen in Peru.
Ashmore Energy International Ltd. -- http://www.ashmoreenergy.com-- owns
and operates a portfolio of energy infrastructure assets in power
generation, transmission, and distribution of natural gas, gas liquids,
and electric power. Ashmore Energy's portfolio, directly or indirectly,
consists of 19 companies in 14 countries, most of which are located in
Latin America. The company's largest asset is Brazilian electric
distribution company, Elektro, which represents approximately 43% of
EBITDA, and 55.3% of fiscal 2006 consolidated cash flow to parent company
Ashmore Energy. The company also operates a power plant in the Dominican
Republic.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 3, 2007, Standard & Poor's Ratings Services assigned its 'B+'
secured debt rating and '3' recovery rating to Ashmore Energy
International's US$105 million synthetic revolving credit facility due in
2012. At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating on Ashmore Energy; its 'B+' senior secured debt rating and
'3' recovery rating on its US$395 million revolving credit facility due
2012, which was reduced from US$500 million; and its 'B+' senior secured
debt rating and '3' recovery rating on Ashmore Energy's US$1 billion term
loan due in 2014. AEI Finance Holding LLC is a co-borrower to Ashmore
Energy's bank facility. S&P said the outlook is stable.
As reported in the Troubled Company Reporter-Latin America on
Feb. 27, 2007, Fitch Ratings assigned a BB Issuer Default rating to
Ashmore Energy International Ltd. and rated its US$500 million senior
revolver credit facility at BB.
Also, Moody's Investors Service assigned a Ba3 rating to the
senior secured credit facilities.
JETBLUE AIRWAYS: Launching Syracuse-Fort Lauderdale Service
-----------------------------------------------------------
JetBlue Airways told the Miami Herald that it will launch a nonstop
service between Syracuse and Fort Lauderdale on Nov. 1.
According to the Miami Herald, JetBlue Airways said the daily flight will
be operated with the Embraer 190 aircraft. It will be Syracuse's sole
nonstop connection to South Florida. Fares will begin at US$99 each way,
plus taxes and fees.
The Miami Herald states that JetBlue Airways will offer the service
between Fort Lauderdale and six destinations in New York, including:
-- Newburgh,
-- New York/JFK,
-- New York/LaGuardia,
-- White Plains, and
-- Buffalo.
Based in Forest Hills, New York, JetBlue Airways Corp.
(Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger
air transportation services primarily in the United States. As
of Feb. 14, 2006, the Company operated approximately 369 daily
flights serving 34 destinations in 15 states, Bermuda, Puerto Rico, the
Dominican Republic, and the Bahamas. The Company also provides in-flight
entertainment systems for commercial aircraft, including live in-seat
satellite television, digital satellite radio, wireless aircraft data link
service, and cabin
surveillance systems and Internet services, through its wholly
owned subsidiary, LiveTV, LLC.
* * *
As reported in the Troubled Company Reporter-Latin America on May 21,
2007, Moody's Investors Service downgraded the ratings of JetBlue Airways
Corporation debt and selected classes of JetBlue's Enhanced Equipment
Trust Certificates, including the corporate family and probability of
default ratings to B3, and the senior unsecured rating to Caa2 (LGD-5,
89%).
The Class A Certificates of JetBlue's EETC's supported by
policies issued by Aaa rated monoline insurance companies are
affirmed at Aaa. The outlook remained negative.
Downgrades:
* JetBlue Airways Corp.
-- Probability of Default Rating, Downgraded to B3 from B2
-- Corporate Family Rating, Downgraded to B3 from B2
-- Senior Secured Enhanced Equipment Trust, Downgraded to B1
from Ba3
-- Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to
a range of 89 - LGD5 to Caa2 from a range of 88 - LGD5 to
Caa1
===========
M E X I C O
===========
AXTEL SAB: Launches Operations in Merida
----------------------------------------
Axtel said in a statement that it has launched operations in Merida, Yucatan.
Business News Americas relates that Axtel would implement a US$25-million
investment scheme over the next five years, which is the same thing it did
for other expansions. Axtel now operates in 21 cities, which gives it
access to some 45 million clients.
According to BNamericas, the initial network deployment in Merida covers
85% of the population, with telephone, Internet and data services for the
residential and business sectors.
"[The expansion] reinforces Axtel's promise to continue growing in
Mexico... [and] is our entry point into the southeast region of Mexico,"
Axtel’s southern region director Roberto Reynoso said in a statement.
Headquartered in Monterrey, Mexico, AXTEL is a Mexican
telecommunications company that provides local and long distance
telephony, broadband Internet, data and built-to-suit
communications solutions in 17 cities and long distance
telephone services to business and residential customers in over
200 cities. The seventeen cities in which AXTEL currently
provides local services are Mexico City, Monterrey, Guadalajara,
Puebla, Leon, Toluca, Queretaro, San Luis Potosi,
Aguascalientes, Saltillo, Ciudad Juarez, Tijuana, Torreon
(Laguna region), Veracruz, Chihuahua, Celaya and Irapuato.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 25, 2007, Standard & Poor's Ratings Services assigned its
'BB-' rating to Axtel SAB de CV's US$250 million Senior
Unsecured Notes due January 2017. It also affirmed its 'BB-'
long-term corporate credit rating on Axtel. S&P said the
outlook is negative.
As reported in the Troubled Company Reporter-Latin America on
Jan. 23, 2007, Moody's Investors Service has confirmed Axtel,
S.A.B. de C.V.'s Ba3 corporate family rating and changed the
rating outlook to stable.
BALLY TOTAL: Unveils Treatment of Claims Under Pre-Packaged Plan
----------------------------------------------------------------
Bally Total Fitness Holding Corp., and its affiliates, in injunction with
the commencement of the solicitation of approvals for its pre-packaged
chapter 11 plan of reorganization, filed with the U.S. Securities and
Exchange Commission its pre-packaged chapter 11 plan and an accompanying
disclosure statement explaining that plan.
Treatment of Claims
Under the pre-packaged chapter 11 plan, the claims are expected a 100%
recovery;
* Administrative Claims, estimated at US$24,704,600;
* Priority Tax Claims, estimated at US$17,904,440;
* Non-Tax Priority Claims, estimated at US$25,265,635;
* Other Secured Claims, estimated at US$15,040,312;
* Unimpaired Unsecured Claims, estimated at US$107,222,660;
and
* Lenders Claims, estimated at US$262,400,000.
Holders of Senior Notes, with claims estimated at US$235,000,000, on the
effective date, will receive the Prepetition Senior Notes Indenture
Amendment Fee and the New Senior Second Lien Notes, which alter their
contractual rights as set forth in the New Senior Second Lien Notes
Indenture.
Holders of Prepetition Senior Subordinated Notes, owed an estimated
US$323,041,667, and Holders of Rejection Claims against Bally Total will
receive:
(a) New Subordinated Notes with a principal amount equal to
24.8% of the amount of such Allowed Claim,
(b) New Junior Subordinated Notes with a principal amount
equal to 21.7% of the amount of such Allowed Claim,
(c) 0.00093 shares of New Common Stock per US$1.00 of
Allowed Claim and
(d) Rights to purchase Rights Offering Senior Subordinated
Notes with a principal amount equal to 27.9% of the
amount of such Allowed Claim.
Holders of Rejection Claims against any of Bally's affiliates, at the
company's option, will receive either:
(a) cash in an amount equal to the amount of the Claim,
(b) other less favorable treatment to which the Holder and
the Debtors agree or
(c) quarterly installments over a 5 year period equal to the
amount of the Claim plus interest at 12-3/8% per annum.
Holders of Subordinated Claims will receive nothing under the plan.
On the Effective Date, the Old Equity Interests of Bally will be canceled
and the Holders will receive no distribution.
The Reorganized Debtors will retain the Interests they hold in Affiliate
Debtors.
A full-text copy of the Pre-Packaged Chapter 11 Plan and Disclosure
Statement may be viewed for free at:
http://ResearchArchives.com/t/s?214a
About Bally Total Fitness
Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT)(OTC BB: BFTH) -- http://www.ballyfitness.com/-- is a
commercial operator of fitness centers in the U.S., with over 375
facilities located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and
Sports Clubs of Canada (R) brands. Bally offers a unique platform for
distribution of a wide range of products and services targeted to active,
fitness-conscious adult consumers.
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Bally Total Fitness reached an agreement in principle on the
proposed terms of a consensual restructuring with certain holders of over
80% in amount of its 9-7/8% Senior Subordinated Notes due 2007. The
company plans to implement the proposed restructuring through a
pre-packaged Chapter 11 bankruptcy filing of the parent company, Bally
Total Fitness Holding Corporation, and certain of its subsidiaries.
COMMSCOPE INC: Andrew Corp. Deal Cues Moody's to Review Ratings
---------------------------------------------------------------
Moody's Investors Service placed CommScope Inc.'s ratings under review for
downgrade after their announced intent to acquire Andrew Corp. for US$2.6
billion. Although CommScope's Ba2 corporate family rating could
accommodate some level of debt financed acquisitions, the size of the
Andrew acquisition is substantial and could potentially increase leverage
well above 4x which could result in a downgrade. Moody's notes the
details of the capital structure and synergies have not been disclosed at
this time. Both companies have leading market positions in their
particular industries and the combination offers numerous opportunities
for cost savings and sharing of facilities. The Andrew acquisition has
been approved by both company's boards but is still conditioned on Andrew
shareholder and regulatory approval.
Moody's review of CommScope will assess (1) the challenges of integrating
Andrew, a company that is roughly equal to CommScope's size in terms of
revenue and EBITDA, (2) proposed synergies, plant consolidation plans and
potential asset sales (3) proposed capital structure and (4) cash flow
generating prospects. The ratings could be confirmed at their current
level depending on the outcome of the review.
Ratings under review for downgrade include:
-- Corporate Family Rating, Ba2
-- US$250 million Convertible Senior Subordinated Debentures
due 2024, Ba3
Moody's notes that the existing CommScope convertible debt conversion
price is significantly below the current market price of the stock. To
the extent the debt is converted, the instrument ratings will be
withdrawn.
Headquartered in Hickory, North Carolina, CommScope is a provider of cable
and connectivity solutions for enterprise, cable, and telecom industries.
DAIMLERCHRYSLER: Executive Says Russia a Key Market for Chrysler
----------------------------------------------------------------
DaimlerChrysler AG's Chrysler Group, which the company recently sold to
Cerberus Capital Management LP, plans to strengthen its presence in
Russian car sales and production, a top Chrysler executive told Automotive
News Europe in an interview, Reuters notes.
"If you look at our worldwide presence, then Russia is a key market for
us," said Michael Manley, Chrysler's executive vice president of
international sales and marketing.
Chrysler is currently exploring possible partnerships with Russian
companies, the report said. Mr. Manley projects Chrysler's international
sales could double to 400,000 vehicles by 2012. The U.S. automaker said
it doubled its Russian car sales to 4,021 in 2006 compared with 2005 and
had seen early 2007 sales up by 93% year-on-year.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) --
http://www.daimlerchrysler.com/-- develops, manufactures, distributes,
and sells various automotive products, primarily passenger cars, light
trucks, and commercial vehicles worldwide. It primarily operates in four
segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada, Mexico, United
States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan,
Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up trucks, sport
utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand
names. It also sells parts and accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees
and retirees, continuing high fuel prices and a stronger shift in demand
toward smaller vehicles. At the same time, key competitors have further
increased margin and volume pressures -- particularly on light trucks --
by making significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group as
quickly and comprehensively, measures to increase sales and cut costs in
the short term are being examined at all stages of the value chain, in
addition to structural changes being reviewed as well.
DAIMLERCHRYSLER AG: MAN & Freightliner Settle ERF Case
------------------------------------------------------
MAN AG has reached an agreement with DaimlerChrysler AG's Freightliner
division, in the litigation with the group in USA and Canada, that settles
MAN’s claims for damages in connection with the financial fraud committed
at ERF, a British truck maker taken over by MAN. The settlement provides
that Freightliner shortly pay an indemnity of GBP250 million (EUR370
million) to MAN.
Back in 2000, MAN had taken over ERF from Canada’s Western Star, a company
shortly afterwards acquired by Freightliner. After the ERF acquisition,
it emerged that ERF’s financial statements and thus its value had been
severely and fraudulently manipulated and misrepresented.
In 2002, MAN sued Freightliner as Western Star’s legal successor for
damages of around GBP300 million. While MAN had been successful in the
actions brought before British and US courts, time-consuming and costly
actions before higher-instance courts in Britain and the US nonetheless
awaited MAN, and these are now avoided by the settlement.
About MAN AG
Based in Munich, Germany, the MAN Group -- http://www.man.de/-- is one of
Europe's leading manufacturers of commercial vehicles, engines and
mechanical engineering equipment with annual sales of approximately EUR13
billion and circa 50,000 employees worldwide. MAN supplies trucks, buses,
diesel engines, turbomachinery, as well as industrial services and holds
leading market positions in all its business areas.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) --
http://www.daimlerchrysler.com/-- develops, manufactures, distributes,
and sells various automotive products, primarily passenger cars, light
trucks, and commercial vehicles worldwide. It primarily operates in four
segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada, Mexico, United
States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan,
Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up trucks, sport
utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand
names. It also sells parts and accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees
and retirees, continuing high fuel prices and a stronger shift in demand
toward smaller vehicles. At the same time, key competitors have further
increased margin and volume pressures -- particularly on light trucks --
by making significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group as
quickly and comprehensively, measures to increase sales and cut costs in
the short term are being examined at all stages of the value chain, in
addition to structural changes being reviewed as well.
DYNCORP INTERNATIONAL: Awarded LOGCAP IV Contract by US Army
------------------------------------------------------------
DynCorp International was one of three companies awarded a contract by the
U.S. Army to feed, house and provide other services to U.S. troops in
Iraq, the Washington Post reports. The contract, which is worth up to
US$150 billion, was also awarded to Fluor Intercontinental and KBR, Inc.
According to the report, the three companies were chosen from around six
competitors based on their management, past performance, price and
technical abilities.
The contract, known as the Logistics Civil Augmentation Program or LOGCAP
IV, is considered as one of the biggest deals in the contracting service
industry, the report adds. The Post relates that DynCorp had previously
won a LOGCAP contract in 1997 or work in the Philippines and East Timor.
The Post discloses that the Army decided to award the contract to more
than one company on concerns of lack of competition.
DynCorp International Inc. -- http://www.dyn-intl.com/-- (NYSE:
DCP) through its operating company DynCorp International LLC, is a
provider of specialized mission-critical technical services, mostly to
civilian and military government agencies. It operates major programs in
law enforcement training and support, security services, base operations,
aviation services and operations, and logistics support worldwide.
Headquartered in Falls Church, Virginia, DynCorp International LLC has
approximately 14,600 employees worldwide including Haiti.
* * *
DynCorp still carries Standard and Poor’s BB- rating assigned on June 15,
2006. S&P said the outlook is stable.
===========
P A N A M A
===========
AES CORP: Files Appeal in US Court for NatGas Terminal Ban
----------------------------------------------------------
AES Corporation has filed an appeal in the U.S. Court of Appeals for the
Fourth Circuit to try to abolish a Baltimore County law blocking its
proposed liquefied natural gas terminal at Sparrows Point, Andy Rosen at
the Daily Record reports.
According the Daily Record, the law bans liquefied natural gas terminals
in an area within 1,000 feet off the Chesapeake Bay’s tidal waters or
wetlands.
The AES is arguing that the law is the Baltimore County’s attempt to
regulate liquefied natural gas facility construction, the Daily Record
notes.
AES told the Daily Record that it believes that power belongs to the
Federal Energy Regulatory Agency.
The report says that AES is challenging a decision the U.S. District Court
in Baltimore had made. Judge Richard D. Bennett had ruled that the law
didn’t commit any violation on federal power as state-level governments
have the authority to decide on coastal management issues linked with
liquefied natural gas construction.
The Daily Record relates that the county has emphasized that it is
prepared to continue the battle over the terminal.
The terminal has been opposed since it was proposed in January 2007, the
Daily Record 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.
SOLO CUP: Closes US$130 Million Leaseback Deal of Six Facilities
----------------------------------------------------------------
Solo Cup Company has completed the sale and leaseback of six manufacturing
facilities. Proceeds from the transaction have been used to pay off the
company’s US$130 million second lien term loan in its entirety. The
transaction includes Solo Cup manufacturing plants in Dallas, Texas,
Chicago, Ill., Urbana, Ill., Augusta, Ga., Conyers, Ga., and Federalsburg,
Md. The Company has entered into a 20-year lease with four five-year
extension options for each facility. There will be no change in
day-to-day operations at these or other Solo Cup facilities.
“As previously discussed, one of our key goals for the year is to unlock
value in our assets to reduce our overall leverage and invest in our
business,” said Robert M. Korzenski, CEO, Solo Cup Company. “This
transaction enables us to achieve this objective while continuing to serve
our customers on a business-as-usual basis. We expect to be a part of the
business community in these locations for many years to come.”
Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable
foodservice products for the consumer and retail, foodservice,
packaging, and international markets. Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names. The company was established in 1936 and has a
global presence with facilities in Asia, Canada, Europe, Mexico,
Panama and the United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 12, 2007, Moody's Investors Service confirmed the B3
Corporate Family Rating of Solo Cup Co. and revised the rating
outlook to negative. Moody's assigned a B1 rating to both the
US$638 million senior secured term loan B and US$150 million
revolver and confirmed all other instrument ratings. This
confirmation of the ratings concludes a rating review for
possible downgrade that was initiated on Sept. 15, 2006.
=====================
P U E R T O R I C O
=====================
CLEAN HARBORS: Moody's Lifts Corp. Family Rating to Ba3 from B1
---------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating of Clean
Harbors, Inc. to Ba3 from B1 and assigned a stable outlook. The ratings
have been on positive outlook since
June 29, 2006. Moody's also upgraded the existing senior secured credit
facilities and the senior secured second lien notes due 2012.
The ratings recognize ongoing improvement in Clean Harbors' credit
statistics from an adjusted debt to adjusted EBITDA of almost five times
in 2004 to just over three times in the twelve months ended March 31,
2007, strong revenue growth, consistent financial performance over the
last three years exceeding Moody's expectations, and a favorable current
environment for the company's services. The ratings also reflect
continued organic improvement in Clean Harbors' financial profile through
continued operating cost efficiencies, as well as increased penetration of
existing customer relationships, cost and revenue synergies from the
August 2006 Teris acquisition, high incinerator utilization and, longer
term, potential improvements in landfill utilization. Moody's also notes
that the company continues to experience benefits from the outsourcing
trends in the hazardous waste industry. Notwithstanding Clean Harbors'
leading market position, scale and revenue diversification, the ratings
remain constrained by approximately US$147 million of (discounted)
environmental remediation liabilities as of
March 31, 2007 and operating lease commitments which have been capitalized
for credit rating purposes. The bulk of the environmental remediation
liabilities relates to closure and remediation obligations assumed with
the purchase of the Chemical Services Division of Safety-Kleen in 2002
and, to a lesser extent, the purchase of Teris in 2006.
Given the floor on adjusted indebtedness posed by the company's exposure
to environmental remediation and, also, asset retirement obligations as
well as uncertainties surrounding ongoing, complex environmental
litigation and exposure to the ability of other companies to fulfill their
obligations makes an upgrade unlikely in the near term or in the absence
of significant expansion in scale and business diversification.
Moody's took these rating actions:
-- Upgraded to Ba3 from B1 the Corporate Family Rating;
-- Upgraded to Ba3 from B1 the Probability of Default Rating;
-- Upgraded to Baa3 (LGD 2, 16%) from Ba1 (LGD 2, 11%) the
US$30 million senior secured term loan, due 2010;
-- Upgraded to Baa3 (LGD 2, 16%) from Ba1 (LGD 2, 11%) the
US$70 million senior secured revolving facility, due 2010;
-- Upgraded to Baa3 (LGD 2, 16%) from Ba1 (LGD 2, 11%) the
US$50 million secured letters of credit facility, due 2010;
-- Affirmed the Ba3 (LGD 3, 46%) rated US$92 million 11.25%
guaranteed second lien senior notes, due 2012;
The outlook for the ratings is stable.
Headquartered in Norwell, Massachusetts, Clean Harbors Inc. (NasdaqGS:
CLHB) -- http://www.clenharbors.com/-- provides environmental and
hazardous waste management services in North America. It operates through
two segments, Technical Services and Site Services. The Technical
Services segment collects, transports, treats, and disposes hazardous and
non-hazardous
wastes for commercial and industrial customers, health care providers,
educational and research organizations, and other environmental services
companies and governmental entities. The Site Services segment provides
environmental site services to maintain industrial facilities and process
equipment, as well as clean up of hazardous materials to chemical,
petroleum,
transportation, utility, and governmental agencies. Clean Harbors has
more than 100 locations strategically positioned throughout North America
in 36 U.S. states, six Canadian provinces, Mexico and Puerto Rico.
GAMESTOP CORP: Board Okays Redemption of Sr. Floating Rate Notes
----------------------------------------------------------------
GameStop Corp.'s Board of Directors has authorized the redemption of all
US$120 million of the outstanding bonds remaining under its and GameStop,
Inc.’s Senior Floating Rate Notes due 2011. The Notes are redeemable by
the Issuers beginning Oct. 1, 2007.
The Company expects to incur a one-time pre-tax charge of approximately
US$3.8 million in the third quarter of 2007 associated with the
redemption, which represents the US$2.4 million premium paid to
bondholders to redeem the remaining bonds and US$1.4 million of deferred
financing costs.
The terms and conditions of the Notes permit the Issuers to
unconditionally redeem all of the Notes at a redemption price of 102% plus
accrued and unpaid interest up to and including the date fixed for
redemption. The expected date for redemption by the Issuers is Oct. 1,
2007.
Formal notice of the redemption will be made to bondholders in accordance
with the terms of the Notes, with such notice to be mailed at least 30
days but no more than 60 days before the redemption date.
About GameStop Corp.
Headquartered in Grapevine, Texas, GameStop Corp. (NYSE:GME)
-- http://www.gamestop.com/-- sells video games. The company
operates 4,778 retail stores throughout the United States,
Austria, Australia, Canada, Denmark, Finland, Germany, Italy,
Ireland, New Zealand, Norway, Puerto Rico, Spain, Sweden,
Switzerland and the United Kingdom. The company also owns
commerce-enabled Web properties, GameStop.com and ebgames.com,
and Game Informer(R) magazine, a leading video and computer game
publication. GameStop sells the most popular new software,
hardware and game accessories for the PC and next generation
video game systems from Sony, Nintendo, and Microsoft. In
addition, the company sells computer and video game magazines
and strategy guides, action figures, and other related
merchandise.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 23, 2007, Standard & Poor's Ratings Services raised its corporate
credit and senior unsecured debt ratings on Grapevine, Texas-based
GameStop Corp., a retailer of video game products and PC entertainment
software, to 'BB-' from 'B+'.
At the same time, the ratings on the US$475 million fixed-rate
and the US$475 million floating-rate notes were also changed to
'BB-'.
=============
U R U G U A Y
=============
SOL MELIA: S&P Affirms BB+ Corp. Credit Rating; Revises Outlook
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Spain-based
hotel operator Sol Melia S.A. to positive from stable. The corporate
credit rating was affirmed at 'BB+'.
At the same time, the debt rating on Sol Melia Europe B.V.'s senior
unsecured bonds was raised one notch to 'BB+' from 'BB' to equalize it
with the corporate credit rating on the parent company, reflecting reduced
structural subordination.
"The outlook revision reflects the company's improved financial profile in
recent years and favorable prospects for further growth and deleveraging,"
said Standard & Poor's credit analyst Philip Temme.
"Standard & Poor's expects that Sol Melia's solid competitive position in
Spanish and Caribbean resorts and continuing strength in European city
hotels should enable it to improve credit metrics further, provided
crucially that the group exercises discipline with respect to net new
capital investment and acquisitions," Mr. Temme added.
To be upgraded, the company needs to demonstrate it can, over the course
of the lodging cycle, achieve and sustain a lease-adjusted net debt to
EBITDA ratio below 3.5x and a lease-adjusted funds from operations (FFO)
to net debt ratio of about 25%. The outlook would likely be revised back
to stable in the event of earnings stagnation or debt-financed
acquisitions. The ratings are predicated on Sol Melia maintaining an
adjusted FFO to net debt ratio of about 20% and positive free operating
cash flow.
Sol Melia is the world's 10th-largest hotel company and ranks number one
in its core markets of Spain, Latin America and the Caribbean with a
portfolio of 328 hotels and 81,282 rooms at YE05. It is also the leading
resort hotel chain globally. In room number terms, some 45% of the hotel
portfolio is
owned/leased and 55% is under management/franchise contracts. However,
Sol Melia derives close to 90% of its profits from owned or leased hotels.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Investing US$2 Billion in Carabobo Block
----------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA and Brazilian
counterpart Petroleo Brasileiro SA will invest some US$2 billion in the
development of the Carabobo block in the Orinoco heavy oil belt in
Venezuela, the Associated Press reports, citing Petroleo Brasleiro.
Petroleo Brasileiro and Petroleos de Venezuela would start production from
the extra-heavy field in 2009, the AP says, citing Petroleo Brasileiro
spokesperson Carolina Rocha.
Petroleo Brasileiro’s International Director Nestor Cervero told Brazilian
news daily Folha de S. Paulo that the firm will hold a 40% stake in the
project. Meanwhile, Petroleos de Venezuela will have 60% of the project.
Petroleo Brasileiro and Petroleos de Venezuela will upgrade the tar oil
from Carabobo I in Venezuela and send part of the output to a heavy oil
plant in northeastern Brazil to be constructed by the two firms, the AP
states.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors in
Brazil. Petrobras has operations in China, India, Japan, and Singapore.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state
oil company in charge of the development of the petroleum, petrochemical
and coal industry, as well as planning, coordinating, supervising and
controlling the operational activities of its divisions, both in Venezuela
and abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027,
and US$1 billion notes due 2037.
CITGO PETROLEUM: To Appeal Environmetal Judgment in the U.S.
------------------------------------------------------------
Citgo Petroleum Corp., the refining arm of Petroleos de Venezuela in the
United States, said in a statement that is appealing a verdict charging it
for supposed absence of lids in tanks of homogeneization at its residual
treatment plant. The oil company underscored that U.S. Environmental laws
do not require that measure, Prensa Latina relates.
The oil company emphasized in its statement that regulations under which
it was accused of harming the environment, were never before applied in a
court of law, Prensa Latina states. It warned that such action could have
adverse effects for the oil industry.
Citgo believes the Justice Department of selectively using measures
created for regulatory processes to incriminate the company, Prensa Latina
says.
Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect, wholly
owned subsidiary of Petroleos de Venezuela SA, the state-owned oil company
of Venezuela.
Petroleos de Venezuela is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical, and coal industry, as well as
planning, coordinating, supervising, and controlling the operational
activities of its divisions, both in Venezuela and abroad.
* * *
Standard and Poor's Ratings Services assigned a 'BB' rating on Citgo
Petroleum Corp. in Feb. 14, 2006.
Citgo Petroleum carries Fitch's BB- Issuer Default Rating. Fitch also
rates the company's US$1.15 billion senior secured revolving credit
facility maturing in 2010 at 'BB+', its US$700 million secured term-loan B
maturing in 2012 at 'BB+', and its
senior secured notes at 'BB+'.
FREEPORT-MCMORAN: Paying Cash Dividends on Aug. 1
-------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. declared the following quarterly cash
dividends payable on Aug. 1, 2007, to holders of record as of July 16,
2007:
-- US$0.3125 per share of FCX’s Common Stock
-- US$13.75 per share of FCX’s 5½% Convertible Perpetual
Preferred Stock.
FCX also declared, for the period from March 28, 2007, to
Aug. 1, 2007, cash dividends of US$2.30625 per share of FCX’s 6¾%
Mandatory Convertible Preferred Stock payable on
Aug. 1, 2007 to holders of record as of July 16, 2007. Each subsequent
quarterly dividend is expected to be US$1.6875 per share.
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
* * *
As reported in the Troubled Company Reporter-Latin America
March 29, 2007, Moody's Investors Service upgraded Freeport-McMoRan Copper
& Gold Inc.'s or Freeport's corporate family rating to Ba2 from Ba3.
As reported in the Troubled Company Reporter on March 27, 2007,
Standard & Poor's Ratings Services assigned its 'B' preferred
stock rating to the proposed US$2.5 billion US6.75% mandatory
convertible preferred stock offering of Freeport-McMoRan
Copper & Gold Inc.
PETROLEOS DE VENEZUELA: Chinese Firm Wants to Drill at Orinoco
--------------------------------------------------------------
China Petrochemical Corp., aka Sinopec Group, is in talks with Petroleos
de Venezuela for a drilling contract at the Orinoco projects that were
formerly ran by Exxon Mobil Corp. and ConocoPhillips, Bloomberg News
reports.
ConocoPhillips and Exxon chose to leave Venezuela rather than take
minority interests in the Orinoco projects.
Tong Peixin, a spokesman for unit Sinopec International Petroleum
Exploration & Production Corp., told Bloomberg, that the group is seeking
"heavy oil" projects.
China has inked several accords with Venezuela in order to secure crude
products to meet its growing needs. Venezuela, for its part, would want
to have an alternative market to the United States, its biggest customer.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state
oil company in charge of the development of the petroleum, petrochemical
and coal industry, as well as planning, coordinating, supervising and
controlling the operational activities of its divisions, both in Venezuela
and abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings Services assigned
its 'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027,
and US$1 billion notes due 2037.
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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
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Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande de los Santos, and
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Copyright 2007. All rights reserved. ISSN 1529-2746.
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