/raid1/www/Hosts/bankrupt/TCRLA_Public/070709.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 9, 2007, Vol. 8, Issue 134
Headlines
A R G E N T I N A
ARINC INC: S&P Puts BB Corp. Credit Rating on Negative Watch
ALLWAYS SPORTS: Proofs of Claim Verification Is Until Sept. 19
ARO SRL: Proofs of Claim Verification Deadline Is July 31
CONIVIL SA: Proofs of Claim Verification Ends on Aug. 28
DANA CORP: Completes Sale of European Products to Orhan Holding
GEMIKA SA: Trustee Verifies Proofs of Claim Until July 20
GUIMORE SRL: Proofs of Claim Verification Is Until Sept. 3
KNOLL INC: S&P Withdraws Ratings After Repayment of Rated Debts
KOLMER SA: Proofs of Claim Verification Ends on Aug. 22
MENDOCAP SRL: Trustee Verifies Proofs of Claim Until Sept. 3
TRANSPORTES CADAM: Proofs of Claim Verification Ends on Aug. 31
TRANQUERAS ARGENTINAS: Reorganization Proceeding Concluded
ZUG SA: Proofs of Claim Verification Deadline Is Sept. 13
WENDY'S INT'L: Triarc Wants to Participate in Sale Process
VALEANT PHARMA: Settles Patent Infringement Suit with Kali Labs
B A R B A D O S
SR TELECOM: Inks Pact with Lenders for New US$45-Million Loan
HILTON HOTELS: Blackstone Deal Cues Moody's To Review Ratings
HILTON HOTELS: Fitch Lowers IDR to B Due to Blackstone Deal
HILTON HOTELS: S&P Lowers BB- Corp. Credit Rating w/ Neg. Watch
B E R M U D A
BELL ATLANTIC: Final General Meeting Is Set for July 10
BELL ATLANTIC: Proofs of Claim Filing Is Until June 22
CONVERGEX HOLDINGS: Acquisition Cues Moody’s to Cut Rating to B2
DRESDNER RCM: Proofs of Claim Filing Is Until July 27
DRESDNER RCM ORIENTAL: Proofs of Claim Filing Is Until July 27
HUNTSMAN CORP: Hexion's Merger Proposal Tops Basell's Offer
JUPITER POWER: Sets Final General Meeting for July 30
B R A Z I L
ALERIS INTERNATIONAL: Buys Wabash Alloys from Connell Limited
BANCO NACIONAL: Board Okays BRL194.5-Million Loan to Berneck
BANCO NACIONAL: May Administer Licensing Process on Highways
GERDAU SA: Wants Lower Taxes on Power for Energy-Intensive Firms
GERDAU SA: CEO Says Co. To Acquire Two More LatAm Steelmakers
HAYES LEMMERZ: Sells Indiana Unit to Harvey Industries
NOVELIS: Change of Control Offer for 7-1/4% Senior Notes Expires
PETROLEO BRASILEIRO: Fire Breaks Out in Gas Compressor
PETROLEO BRASILEIRO: Meets Union Requests Averting Strike
SENSATA TECHNOLOGIES: Buying Airpax Holdings for US$276 Million
SENSATA TECHNOLOGIES: S&P Revises Outlook After Airpax Purchase
SANYO ELECTRIC: To Increase Lithium-Ion Cells Production by 17%
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
DARIUS INVESTMENTS: Sets Last Shareholders Meeting for July 25
DYNAP FUND: Sets Last Shareholders Meeting for July 25
ENRON INTERNATIONAL: Proofs of Claim Must be Filed by July 26
HILLARY LTD: Sets Last Shareholders Meeting for July 25
KAIROS FUND: Proofs of Claim Must be Filed by July 26
LAZARD DIVERSIFIED: Sets Last Shareholders Meeting for July 25
PARMALAT SPA: Court Allows Investors to Pursue Securities Action
SUNCREEK INVESTMENTS: Proofs of Claim Must be Filed by July 25
SUNCREEK INVESTMENTS: Sets Last Shareholders Meeting for July 25
TRIDENT GLOBAL: Proofs of Claim Must be Filed by July 26
VF CAYMANS I: Proofs of Claim Must be Filed by July 26
VF CAYMANS II: Proofs of Claim Must be Filed by July 26
YVES LIMITED: Proofs of Claim Must be Filed by July 25
YVES LIMITED: Sets Last Shareholders Meeting for July 25
ZANETTI LIMITED: Proofs of Claim Must be Filed by July 25
ZANETTI LTD: Sets Last Shareholders Meeting for July 25
C O L O M B I A
BANCOLOMBIA SA: Selling Mortgage Loans to Titularizadora
HEXION SPECIALTY: Huntsman Offer Cues Moody's to Review Ratings
HEXION SPECIALTY: Planned Acquisition Cues S&P to Lower Ratings
C O S T A R I C A
SAMSONITE CORP: S&P Puts BB- Corporate Credit Rating
C U B A
* CUBA: May Boost Power Generation Capacity Through Wind Energy
D O M I N I C A N R E P U B L I C
AES CORP: Dominican Republic Starts Taking Rockash from Samana
BANCO INTERCONTINENTAL: Carmen Alardo Alleges Work Harassment
* DOMINICAN REPUBLIC: Taiwan Will Pardon Nation’s Debt
E C U A D O R
PETROECUADOR: Unit Starts Drilling Exploratory Well Drago 1
E L S A L V A D O R
* EL SALVADOR: Groups Protest Against Water Privatization
G U A T E M A L A
IMAX CORP: Gets Default Notice from 9.625% Senior Notes Holder
IMAX CORP: S&P Junks Corporate Credit Rating
SAMSONITE CORP: To Be Acquired by CVC Capital for US$1.7 Billion
M E X I C O
COSAN SA: Implementing Restructuring Plan
BEARINGPOINT: Dec. 31 Balance Sheet Upside-Down by US$177.3 Mil.
COLLINS & AIKMAN: Court Approves Deal with Customers & JPMorgan
CONTINENTAL AIRLINES: Signs Comprehensive Deal with Kingfisher
DOLE FOOD: Joins DBCP Issue Solution Meeting in Nicaragua
DURA AUTOMOTIVE: Sells Atwood Mobile Unit for US$160.2 Million
FORMICA BERMUDA: S&P Withdraws Ratings After Fletcher Purchase
GRUPO MEXICO: Says Work at Two Zinc & Silver Mines Stopped
HANOVER COMPRESSOR: Hart-Scott-Rodino Waiting Period Expires
INNOPHOS HOLDINGS: Board Declares US$0.17 Per Share Dividend
MOVIE GALLERY: S&P Cuts Corporate Credit Rating to CCC+
RIO VISTA: Will Buy All of Northport’s Assets for US$18 Million
U.S. STEEL: Names William McNally as Tubular Unit Controller
P A N A M A
EASTERN MEDIA: Fitch Puts BB Foreign Curr. Rating Under WatchNeg
P U E R T O R I C O
ADVANCED MEDICAL: Plans US$75 a Share Purchase of Bausch & Lomb
V E N E Z U E L A
DAIMLERCHRYSLER: Delays 2Q Earnings Report Due to Chrysler Sale
PETROLEOS DE VENEZUELA: In Talks with Oil Workers on Benefits
TIMKEN CO: Inks US$1.2-Mil. Contract with Indian Steelmaker
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A R G E N T I N A
=================
ARINC INC: S&P Puts BB Corp. Credit Rating on Negative Watch
------------------------------------------------------------
Standard & Poor's Ratings Services CreditWatch implications on the 'BB'
corporate credit rating and other ratings on ARINC Inc. to negative from
developing.
"The revision follows the announcement that ARINC will be sold to the
Carlyle Group," said Standard & Poor's credit analyst Christopher
DeNicolo. Although the financial terms were not disclosed, the positive
scenario of an IPO or minority equity investment is no longer possible and
leverage could increase. The transaction is subject to customary
regulatory approvals and is expected to close in the third quarter of
2007. ARINC is currently owned primarily by several large U.S. airlines.
Ratings could be withdrawn if rated debt is repaid.
Annapolis, Md.-based ARINC is a leading provider of mission-critical
communications and IT services to the global aviation industry (40% to 45%
of revenues) and engineering services to the U.S. military and other
government agencies (55% to 60%). ARINC networks carry more than half of
all air-ground messages in the world between commercial aircraft and
airline operations
centers. Other commercial transportation products include airport
check-in and boarding systems, flight display and information systems,
commuter rail control and information systems, and mobile private digital
networks and ground communications systems. ARINC is granted the
exclusive right by the FCC to manage and license the radio frequencies
used by the airlines. This function has been transferred to a separate
legal entity that will continue to be owned by the U.S. airlines.
The company provides data link systems and voice and data network services
in Latin America and the Caribbean. The company operates over 50 ground
stations, provides full satellite coverage, and receives over 10 million
customer-transmitted messages per month from Latin America. In other
parts of the world, ARINC has operations in Australia, China, Japan,
Korea, Hong Kong, India, Indonesia, Malaysia, Singapore, Taiwan, Thailand,
New Zealand, Philippines, Vietnam, Barcelona, Dubai, London, Madrid,
Milan, and Munich.
ALLWAYS SPORTS: Proofs of Claim Verification Is Until Sept. 19
--------------------------------------------------------------
Otto R. Munch, the court-appointed trustee for Allways Sports SRL's
bankruptcy proceeding, verifies creditors' proofs of claim Sept. 19, 2007.
Mr. Munch will present the validated claims in court as individual
reports. The National Commercial Court of First
Instance No. 1 in Buenos Aires, with the assistance of Clerk
No. 2, will determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges that will
be raised by Allways Sports 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 Doc Pal's accounting and
banking records will be submitted in court.
La Nacion didn't state the reports submission dates.
Mr. Munch is also in charge of administering Allways Sports' assets under
court supervision and will take part in their disposal to the extent
established by law.
The debtor can be reached at:
Allways Sports SRL
R. Falcon 7262
Buenos Aires, Argentina
The trustee can be reached at:
Otto R. Munch
Maipu 509
Buenos Aires, Argentina
ARO SRL: Proofs of Claim Verification Deadline Is July 31
---------------------------------------------------------
The court-appointed trustee for Aro S.R.L.'s bankruptcy proceeding,
verifies creditors' proofs of claim July 31, 2007.
Infobae didn’t state the name of the trustee.
The trustee will present the validated claims in court as individual
reports on Sept. 13, 2007. The National Commercial Court of First
Instance in Rafaela, Santa Fe, will determine if the verified claims are
admissible, taking into account the trustee's opinion, and the objections
and challenges that will be raised by Aro 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 Aro's accounting and banking
records will be submitted in court on Oct. 29, 2007.
The trustee is also in charge of administering Aro's assets under court
supervision and will take part in their disposal to the extent established
by law.
The debtor can be reached at:
Aro S.R.L.
Martin Oliver 1261
Rafaela, Santa Fe
Argentina
CONIVIL SA: Proofs of Claim Verification Ends on Aug. 28
--------------------------------------------------------
Gabriel Jorge Churin, the court-appointed trustee for Conivil S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim Aug. 28, 2007.
Mr. Churin will present the validated claims in court as individual
reports on Oct. 9, 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 Conivil 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 Conivil's accounting and
banking records will be submitted in court on Nov. 21, 2007.
Mr. Churin is also in charge of administering Conivil's assets under court
supervision and will take part in their disposal to the extent established
by law.
The trustee can be reached at:
Gabriel Jorge Churin
Esmeralda 114/130
Argentina
DANA CORP: Completes Sale of European Products to Orhan Holding
---------------------------------------------------------------
Dana Corporation has closed the previously announced sale of its European
fluid products hose and tubing operations to Orhan Holding, A.S.,
receiving cash proceeds of US$66.9 million, and expects to receive US$18.1
million of cash proceeds upon closing the sale of the remainder of the
hose and tubing business -- in North America -- to Orhan later in the
third quarter.
Dana expects to record an after-tax gain of approximately
US$34 million in the third quarter of 2007 in connection with the
completion of the entire divestiture.
The assets sold to Orhan thus far include:
* A facility in Birmingham, United Kingdom;
* Stock in three companies in Vitry, France; Dolny Kubin,
Slovakia; and Barcelona, Spain;
* Interests in three joint ventures with Orhan, including one
operation in France and two in Turkey; and
* Intellectual property relating to the global hose and
tubing business.
The remaining fluid products hose and tubing assets are located in
Archbold, Ohio; Paris, Tenn.; Rochester Hills, Mich., U.S.A.; and San Luis
Potosi, Mexico.
The global fluid products hose and tubing business reported aggregate
revenues of US$266 million in 2006 and employs approximately 1,750 people.
Its operations manufacture:
-- fuel lines;
-- power-assisted steering products;
-- heating, ventilation, and air conditioning (HVAC) under-
body products;
-- engine and transmission cooling lines;
-- exhaust gas recirculation tubes; and
-- airbag fill tubes.
Dana Chairman and CEO Mike Burns said, "The divestiture of our fluid
products hose and tubing business is an important step in implementing
Dana's reorganization initiatives and sharpening our focus on our core
axle, driveshaft, structural, sealing, and thermal products businesses for
the automotive, commercial vehicle, and off-highway markets."
About Dana Corp.
Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies. Dana employs 46,000
people in 28 countries. Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors' exclusive period to file a plan expires on
Sept. 3, 2007. They have until Nov. 2, 2007, to solicit
acceptances of that plan.
GEMIKA SA: Trustee Verifies Proofs of Claim Until July 20
---------------------------------------------------------
Carlos Alberto Yacovino, the court-appointed trustee for Gemika S.A.'s
reorganization proceeding, verifies creditors' proofs of claim on July 20,
2007.
Mr. Yacovino will present the validated claims in court as individual
reports on Sept. 5, 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 Gemika 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 Gemika's accounting and banking
records will be submitted in court on Oct. 22, 2007.
The informative assembly will be held on March 26, 2008.
Creditors will vote to ratify the completed settlement plan during the
assembly.
The debtor can be reached at:
Gemika S.A.
Diag. 79 Numero 811
La Plata, Buenos Aires
Argentina
The trustee can be reached at:
Carlos Alberto Yacovino
Diag. 74 Numero 1605 Esq. 11
La Plata, Buenos Aires
Argentina
GUIMORE SRL: Proofs of Claim Verification Is Until Sept. 3
----------------------------------------------------------
Marcelo Fabian Francisco, the court-appointed trustee for Guimore S.R.L.'s
bankruptcy proceeding, verifies creditors' proofs of claim Sept. 3, 2007.
Mr. Francisco will present the validated claims in court as individual
reports. 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 Guimore 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 Guimore's accounting and
banking records will be submitted in court.
Mr. Francisco is also in charge of administering Guimore's assets under
court supervision and will take part in their disposal to the extent
established by law.
The trustee can be reached at:
Marcelo Fabian Francisco
Uruguay 328
Buenos Aires, Argentina
KNOLL INC: S&P Withdraws Ratings After Repayment of Rated Debts
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its senior secured bank loan
and recovery ratings on Knoll Inc. (BB/Stable/--) at the company's
request. This follows Knoll's repayment of all previously rated bank debt
with the closing of a new US$500 million revolving credit facility
maturing 2013 (not rated.) At the same time, Standard & Poor's affirmed
the current rating and outlook on Knoll Inc.
Ratings Affirmed:
Knoll Inc.
Corporate Credit Rating BB/Stable/--
Not Rated Action:
To From
Knoll Inc.
Senior Secured
Local Currency NR BB (Recovery Rtg: 3)
Headquartered in East Greenville, Pennsylvania, Knoll Inc. (NYSE: KNL) --
http://www.knoll.com/-- designs and manufactures branded office furniture
products and textiles, serves clients worldwide. It distributes its
products through a network of more than 300 dealerships and 100 showrooms
and regional offices. The company has locations in Argentina, Australia,
Bahamas, Cayman Islands, China, Colombia, Denmark, Finland, Greece, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Poland,
Portugal and Singapore, among others.
KOLMER SA: Proofs of Claim Verification Ends on Aug. 22
-------------------------------------------------------
Norma Elida Fistzen, the court-appointed trustee for Kolmer S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim Aug. 22, 2007.
Ms. Fistzen will present the validated claims in court as individual
reports on Oct. 3, 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 Kolmer 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 Kolmer's accounting and banking
records will be submitted in court on Nov. 15, 2007.
Ms. Fistzen is also in charge of administering Kolmer's assets under court
supervision and will take part in their disposal to the extent established
by law.
The trustee can be reached at:
Norma Elida Fistzen
Viamonte 1446
Buenos Aires, Argentina
MENDOCAP SRL: Trustee Verifies Proofs of Claim Until Sept. 3
------------------------------------------------------------
Iria Lourdes Navarro, the court-appointed trustee for Mendocap S.R.L.'s
reorganization proceeding, verifies creditors' proofs of claim on Sept. 3,
2007.
Ms. Navarro will present the validated claims in court as individual
reports on Oct. 15, 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 Mendocap 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 Mendocap's accounting and
banking records will be submitted in court.
Infobae didn’t state the general report submission date.
The debtor can be reached at:
Mendocap S.R.L.
Espejo Oeste 768, La Colonia
Departamento Junin, Mendoza
Argentina
The trustee can be reached at:
Iria Lourdes Navarro
Almirante Brown 355, San Martin
Mendoza, Argentina
TRANSPORTES CADAM: Proofs of Claim Verification Ends on Aug. 31
---------------------------------------------------------------
Jorge Garcia, the court-appointed trustee for Transportes Cadam S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim Aug. 31, 2007.
Mr. Garcia will present the validated claims in court as individual
reports on Oct. 12, 2007. The National Commercial Court of First Instance
in Buenos Aires will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Transportes Cadam 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 Transportes Cadam's accounting
and banking records will be submitted in court on Nov. 26, 2007.
Mr. Garcia is also in charge of administering Transportes Cadam's assets
under court supervision and will take part in their disposal to the extent
established by law.
The trustee can be reached at:
Jorge Garcia
Uruguay 572
Buenos Aires, Argentina
TRANQUERAS ARGENTINAS: Reorganization Proceeding Concluded
----------------------------------------------------------
Tranqueras Argentinas S.R.L.'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:
Tranqueras Argentinas S.R.L.
Alfredo Bufano 2048 y Ambrosetti 698
Buenos Aires, Argentina
ZUG SA: Proofs of Claim Verification Deadline Is Sept. 13
---------------------------------------------------------
Norberto Bonesi, the court-appointed trustee for Zug SA's bankruptcy
proceeding, verifies creditors' proofs of claim
Sept. 13, 2007.
Mr. Bonesi will present the validated claims in court as individual
reports. The National Commercial Court of First
Instance No. 12 in Buenos Aires, with the assistance of Clerk
No. 24, 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 Zug 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 Zug's accounting and banking
records will be submitted in court.
La Nacion didn't state the reports submission dates.
Mr. Bonesi is also in charge of administering Zug's assets under court
supervision and will take part in their disposal to the extent established
by law.
The debtor can be reached at:
Zug SA
Avenida R. Patricios 765
Buenos Aires, Argentina
The trustee can be reached at:
Norberto Bonesi
Avenida Juan B. Justo 5096
Buenos Aires, Argentina
WENDY'S INT'L: Triarc Wants to Participate in Sale Process
----------------------------------------------------------
Mr. James V. Pickett, the chairman of Wendy's International
Inc.’s Board of Directors, received a letter from Mr. Nelson
Peltz, the chief executive officer of Trian Fund Management LP
and chairman of Triarc Companies Inc. regarding Wendy’s decision
to explore a possible sale of the company.
In his letter, Mr. Peltz said Triarc objects to the restrictive
one-year standstill clause contained in a draft confidentiality
agreement which Wendy’s financial advisors provided to Triarc
on June 22, 2007.
The draft confidentiality agreement stated Wendy's agreement
to provide confidential information to Triarc so that Triarc can
consider and evaluate a possible transaction with Wendy’s.
Mr. Peltz also said that Wendy’s lack of response and the market
feedback clearly indicate that Wendy's would prefer to sell
itself to anyone other than Triarc.
Mr. Peltz explained that while Trian will support the
transaction that is best for all Wendy's shareholders, Trian
believes that Triarc is a natural, strategic buyer for the
company and should be encouraged to participate in the
process.
Triarc, Mr. Peltz continued, is considering whether it will
participate in the sale process and requests Wendy’s confirmation that it
will be provided access to the terms of the staple financing being offered
by Wendy’s financial advisors and that its access to the rating agencies
and insurers/surety providers will not be impeded by Wendy’s in any way.
In a June 18, 2007 press statement, Wendy's disclosed that
the Special Committee of its Board of Directors, which is
reviewing the company's strategic options, has decided to
explore a possible sale of the company.
The company however did not provide a specific timetable for the
process.
JP Morgan, as lead advisor, and Lehman Brothers Inc., as
co-advisor, is conducting the sale exploration process in
conjunction with the Special Committee.
The Special Committee is also evaluating a possible
securitization financing. Such a securitization could be used
by a potential buyer or in a recapitalization of the company.
Lehman Brothers, as lead structuring advisor, and JP Morgan,
as co-structuring advisor, are leading the evaluation on
behalf of the Special Committee.
Wendy's says there is no assurance that the steps announced
will result in any changes to the company's current plans, or
that any transaction will be consummated. A sale transaction
would require approval by the full Board of Directors and
shareholders. In addition, the steps announced do not preclude
the possibility of the company pursuing other strategic
alternatives in the future.
The company plans to report developments regarding the
Special Committee's actions only as circumstances warrant.
About Triarc
New York City-based Triarc Companies Inc. is a holding company
and, through its subsidiaries, the franchisor of the Arby's(R)
restaurant system and the owner and operator of over 1,000 Arby's
restaurants located in the United States.
About Wendy's
Headquartered in Dublin, Ohio, Wendy's International Inc. (NYSE:
WEN) -- http://www.wendysintl.com/-- and its subsidiaries
operate, develop, and franchise a system of quick service and fast casual
restaurants in the United States, Canada, Mexico, Argentina, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Moody's Investors Service lowered all ratings of Wendy's
International, Inc. and placed all ratings on review for further possible
downgrade.
Ratings lowered and placed on review for further possible downgrade:
-- Corporate family rating lowered to Ba3 from Ba2
-- Probability of default rating lowered to Ba3 from Ba2
-- Senior unsecured notes lowered to Ba3/54%/LGD-4 from
Ba2/54%/LGD-4.
-- Senior unsecured shelf rating lowered to (P) Ba3/54%/LGD-4
from (P) Ba2/54%/LGD-4
-- Subordinated shelf lowered to (P) B2/97%/LGD-6 from (P)
Ba3/97%/LGD-6.
-- Preferred stock shelf lowered to (P) B2/97%/LGD-6 from (P)
B1/97%/LGD-6.
VALEANT PHARMA: Settles Patent Infringement Suit with Kali Labs
---------------------------------------------------------------
Valeant Pharmaceuticals International settled its lawsuit with
Kali Laboratories Inc. for patent infringement on Diastat(R), the only
FDA-approved at-home acute treatment for break-through
epileptic seizures.
Under the terms of the settlement, the companies reached an
agreement in principle that would allow Kali to introduce a
generic version of Diastat and Diastat(R) AcuDial(TM) no earlier
than September 2010. Other terms of the settlement were not
disclosed.
In March 2004, Kali submitted an abbreviated new drug application with the
Food and Drug Administration seeking approval for a generic version of
Diastat, a diazepam rectal gel. In July 2004, Xcel Pharmaceuticals Inc.,
which was acquired by Valeant in March 2005, filed a complaint against
Kali for patent infringement. The settlement, which was reached at a
conference held last week in the U.S. District Court of New Jersey,
requires the companies to finalize the agreement within 60 days.
About Valeant Pharmaceuticals
Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International -- http://www.valeant.com-- is a global specialty
pharmaceutical company with US$823 million of 2005 revenues. It
has offices in Argentina, Singapore and Taiwan.
* * *
As reported on Jan. 26, 2007, that Moody's Investors Service confirmed the
ratings of Valeant, including the B2 Corporate Family Rating, and
concluded the rating review for possible downgrade, which was first
initiated on October 23, 2006. Valeant's rating outlook is now stable,
Moody's said.
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B A R B A D O S
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SR TELECOM: Inks Pact with Lenders for New US$45-Million Loan
-------------------------------------------------------------
SR Telecom Inc. entered into an agreement with a syndicate of
lenders comprised of shareholders and lenders of the company
providing for a term loan of up to US$45 million, of which
US$35 million was drawn on July 3, 2007. An additional US$10 million will
be available for drawdown for a period of up to one year from closing,
subject to certain conditions.
The term loan has a five-year term and is subject to the same
security as the existing loans under the company's existing credit
facility, but ranking senior to the existing loans. The term loan bears
cash interest at a rate equal to the greater of 6.5% or the three-month US
dollar LIBOR rate plus 3.85% and additional interest that may be paid in
cash or in kind, at the option of the Company, at a rate equal to the
greater of 7.5% or the three-month US dollar LIBOR rate plus 4.85%. The
cash portion of the interest will be payable in kind until December 2008.
A payout fee of 5% of the term loan will be paid to lenders upon repayment
or maturity of the loan.
"The level of support we have received from our shareholders
and lenders is a strong indication of their ongoing belief in SR
Telecom, its people, its products and its WiMAX strategy," said
Serge Fortin, SR Telecom's president and chief executive officer. "While
it is clear that much remains to be done for SR Telecom to regain positive
and sustainable momentum, these additional funds will enable us to execute
on our growth strategy even though the delay in finalizing today's
announcement has had a negative impact on manufacturing schedules and
deliveries, and will have an unfavourable effect on second and third
quarter results."
Amendments to Terms
In connection with entering into this new term loan, the syndicate of
lenders has agreed to amend some of the terms of the initial advances
under the credit facility and the convertible term loan. The maturity date
has been amended to match the maturity date of this new financing and the
cash portion of the interest will be payable in kind until December 2008.
In addition, amendments were also made to the terms of the credit facility
and the convertible term loan for the portion of the debt held by two of
the lenders, who are not company insiders, whereby their respective
portions would be convertible into common shares of the company at a price
of US$0.114 per share. As well, the conversion price of the portion of
the convertible term loan held by one of the lenders was amended to the
same price.
As some of the parties participating in the financing are related parties
of the company, as defined by applicable securities legislation in Quebec
and Ontario, the financing is considered a related-party transaction.
However, it is exempt from the valuation and minority approval
requirements, as it is a loan to the company obtained on reasonable
commercial terms that are no less advantageous to the company than if the
loan had been obtained from persons that were dealing at arm's length with
the company.
The company will file a material change report less than 21 days
prior to the closing date of the financing, a shorter period that is
reasonable and necessary under the circumstances, which will allow the
company to complete the transaction in a timely manner in order to finance
its operations and execute on its growth strategy.
Status Update On Results
The company intends to update its financial statements and
accompanying management's discussion and analysis for the periods ended
Dec. 31, 2006, and March 31, 2007, in the coming days.
Going Concern Doubt
There is substantial doubt about the appropriateness of the use of the
going concern assumption because of the uncertainty concerning the outcome
of the company's financing initiatives and because of the company's losses
for the current and prior years, negative cash flows, reduced availability
of supplier credit and lack of operating credit facilities.
For the quarter ended March 31, 2007, the company realized a net
loss of CDN$12.2 million and used cash of CDN$12.4 million in its
continuing operating activities. The company had a net loss of CDN$115.6
million and used cash of CDN$45.2 million in its continuing operations for
the year ended Dec. 31, 2006.
About SR Telecom
Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) --
http://www.srtelecom.com/-- delivers broadband wireless access
(BWA) solutions that enable service providers to deploy voice,
Internet and next-generation services in urban, suburban and
remote areas. The company has offices in Mexico, Barbados and
Brazil.
HILTON HOTELS: Blackstone Deal Cues Moody's To Review Ratings
-------------------------------------------------------------
Moody's Investors Service placed the ratings of Hilton Hotels Corporation
on review for downgrade following its announcement that it has entered
into a definitive merger agreement with The Blackstone Group's real estate
and corporate private equity funds in an all-cash transaction. A
Blackstone affiliate will acquire all of Hilton's outstanding common for
US$47.50 per share, a 40% premium over its closing stock price on
July 2, 2007, and Hilton Hotels Corporation will be the surviving entity.
The LGD assessments are also subject to change.
The total transaction value is US$26 billion including the assumption of
approximately US$6.0 billion of debt. Blackstone has received financing
commitments from a group of financial institution, but details were not
disclosed. The merger is subject to shareholder approval and is expected
to close in the fourth quarter of 2007. Pursuant to the Agreement and
Plan of Merger, Hilton is expected to tender for all its outstanding
senior notes. The indentures governing the company's existing public debt
include a limitation on liens of 15% of Consolidated Net Tangible Assets,
as defined. The review for downgrade will focus on Hilton's capital
structure post closing.
Ratings placed on review for downgrade:
-- Corporate Family rating at Ba1
-- Probability of default at Ba1
-- Senior notes at Ba1, LGD 4
-- Senior bank credit facilities at Ba1, LGD 4
-- Senior, subordinated and preferred shelf at (P) Ba1, LGD 4,
(P) Ba2, LGD 6, (P) Ba2,LGD 6 respectively
Ratings withdrawn:
Commercial paper at Not Prime.
Headquartered in Beverly Hills, California, Hilton Hotels Corp. --
http://www.hilton.com/-- together with its subsidiaries, engages in the
ownership, management, and development of hotels, resorts, and timeshare
properties, as well as in the franchising of lodging properties in the
United States and internationally, including Australia, Austria, Barbados,
Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam.
HILTON HOTELS: Fitch Lowers IDR to B Due to Blackstone Deal
-----------------------------------------------------------
Fitch Ratings downgraded the issuer default rating of Hilton Hotels Corp.
to 'B' from 'BB+' following the announcement that it agreed to be acquired
by The Blackstone Group. Issue ratings on Hilton's senior credit facility
and senior notes are unaffected pending the finalization of a financing
structure for the transaction. In addition, all of Hilton's ratings have
been placed on Rating Watch Negative.
These ratings have been affected:
-- Issuer Default Rating downgraded to 'B' from 'BB+'; Rating
Watch Negative;
-- Senior credit facility 'BB+'; Rating Watch Negative;
-- Senior notes 'BB+'; Rating Watch Negative.
The ratings apply to approximately US$5 billion of outstanding debt.
On July 3, 2007, Hilton announced that it agreed to be acquired by
affiliates of The Blackstone Group for US$47.50 per share, or more than a
40% premium over Monday's closing stock price. The US$26 billion all-cash
transaction is expected to close during the fourth quarter 2007. Hilton's
Board of Directors approved the transaction and a shareholder vote will be
scheduled at a later date. Financing commitments have been provided by
Bear Stearns, Bank of America, Deutsche Bank, Morgan Stanley and Goldman
Sachs.
The terms of the transaction and the prospective capital structure have
yet to be finalized, but Fitch believes that the transaction is likely to
result in a substantial increase in leverage more consistent with ratings
in the 'B' category. If instructed by Blackstone, the merger agreement
calls for Hilton to pursue debt tender offers and/or consent solicitations
with respect to some or all of the senior notes issued under both the
April 1997 and April 2003 bond indentures. Fitch expects the existing
Hilton senior credit facility to be refinanced. Until financing details
are provided, existing Hilton issue ratings are unaffected. However, the
Rating Watch Negative reflects the potential for a downgrade to 'B' or
below once tender offer and capital structure plans have been finalized.
The company's bond indentures do not contain material financial covenants
or change of control provisions of the type that are included in the
credit facility. The bonds were secured by a pledge of the capital stock
of certain wholly owned subsidiaries, but were released from that pledge
after the first quarter of 2007.
Headquartered in Beverly Hills, California, Hilton Hotels Corp. --
http://www.hilton.com/-- together with its subsidiaries, engages in the
ownership, management, and development of hotels, resorts, and timeshare
properties, as well as in the franchising of lodging properties in the
United States and internationally, including Australia, Austria, Barbados,
Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam.
HILTON HOTELS: S&P Lowers BB- Corp. Credit Rating w/ Neg. Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit rating on
Hilton Hotels Corp to 'BB-' from 'BB+'. In addition, all existing ratings
on the company were placed on CreditWatch with negative implications.
The corporate credit rating downgrade and CreditWatch listings follow
Hilton's announcement that it entered into an agreement and plan of merger
with affiliates of Blackstone Real Estate Partners VI L.P. and Blackstone
Capital Partners V L.P., each an affiliate of the Blackstone Group.
Hilton's board of directors has approved the merger agreement. Blackstone
will pay Hilton's shareholders US$47.50 in cash for each share of Hilton's
common stock--a 40% premium over the pre-announcement stock price, valuing
the company at about US$26 billion, including the assumption of Hilton's
debt.
Blackstone has provided Hilton with equity and debt financing commitments
in the amount of US$26.5 billion. In addition, the company, if so
instructed by Blackstone, has agreed to use its commercially reasonable
efforts to commence tender offers and/or consent solicitations with
respect to some or all series of notes issued under the indenture dated as
of April 15, 1997 and the indenture dated as of April 22, 2003.
"The new corporate credit rating of 'BB-' reflects our expectation that a
transaction will be completed, and represents the highest outcome that we
deem appropriate given our review of the preliminary information that is
available regarding the Blackstone deal," said Standard & Poor's credit
analyst Emile Courtney. "The CreditWatch listing for the corporate credit
rating suggests that there remains a high probability that this rating
could still go lower. We will resolve the CreditWatch listing once we
have had an opportunity to fully evaluate the transaction, including
details of the proposed debt and equity financings and the new owner's
strategies with respect to managing Hilton, such as how, if at all,
Hilton's assets can be
integrated with Blackstone's existing lodging portfolio."
We have not lowered our rating on Hilton's senior unsecured notes because
we believe that there is a reasonable likelihood that holders will be
fully repaid through tender offers and/or consent solicitations (given the
language included in the merger agreement). Still, the CreditWatch
listing for these issues reflects that the rating could be lowered if it
becomes probable that the notes will remain in Hilton's future capital
structure.
Headquartered in Beverly Hills, California, Hilton Hotels Corp. --
http://www.hilton.com/-- together with its subsidiaries, engages in the
ownership, management, and development of hotels, resorts, and timeshare
properties, as well as in the franchising of lodging properties in the
United States and internationally, including Australia, Austria, Barbados,
Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam.
=============
B E R M U D A
=============
BELL ATLANTIC: Final General Meeting Is Set for July 10
-------------------------------------------------------
Bell Atlantic (Bermuda) Holdings Ltd.'s final general meeting will be at
9:00 a.m. on July 10, 2007, or as soon as possible, at the liquidator's
place of business.
Bell Atlantic's 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
BELL ATLANTIC: Proofs of Claim Filing Is Until June 22
-------------------------------------------------------
Bell Atlantic (Bermuda) Holdings Ltd.'s creditors are given until June 22,
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.
Bell Atlantic’s shareholders agreed on June 1, 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
Hamilton, Bermuda
CONVERGEX HOLDINGS: Acquisition Cues Moody’s to Cut Rating to B2
----------------------------------------------------------------
Moody's Investors Service downgraded to B2 from B1 the rating on ConvergEx
Holdings LLC's first-lien term loan and revolving credit facilities. The
ratings were placed on review for a possible downgrade on June 11, 2007,
following the company's announcement of a definitive agreement to acquire
Liquid Point LLC and First Traders Analytical Solutions LLC.
At that time, the rating agency noted that were a meaningful portion of
debt raised to fund the acquisition to rank on terms pari pasu with those
of the first-lien facilities, the relative amount of debt structurally
subordinate to the first lien facilities may be insufficient to support a
one-notch lift relative to the corporate family rating (B2;Stable).
As all of the new debt was added to first lien term loan facility,
first-lien debt, assuming full drawdown of the currently un-drawn
revolving credit facility, now accounts for almost seventy percent of
ConvergEx's total long-term debt. As a result, the rating on the
first-lien facilities has been downgraded to the level of the corporate
family rating.
These ratings were downgraded to B2:
BNY ConvergEx Group LLC and EZE Castle Software Inc:
-- US$644 Million 7-Year First-Lien Term Loan Facility
(including US$122 million of the delayed-draw (currently un-
drawn) portion)
-- US$75 Million 6-Year First-Lien Revolving Credit Facility
(currently un-drawn)
These ratings were affirmed:
ConvergEx Holdings LLC:
-- Corporate Family Rating -- B2
BNY ConvergEx Group LLC and EZE Castle Software Inc:
-- US$180 7.5-Year Second-Lien Term Loan -- B3
BNY ConvergEx Group LLC, headquartered in New York City, New York, is a
global agency brokerage and technology company. The company has offices
in Bermuda, Hong Kong and the United Kingdom.
DRESDNER RCM: Proofs of Claim Filing Is Until July 27
-----------------------------------------------------
Dresdner RCM New Tiger Selections Fund Ltd.'s creditors are given until
July 27, 2007, to prove their claims to Mark W.R. Smith, Derek Lai and
Darach Haughey, 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.
Dresdner RCM's shareholders agreed on July 2, 2006, to place the company
into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Mark W.R. Smith
Derek Lai
Darach Haughey
Deloitte & Touche
Corner House, Church & Parliament Streets
P.O. Box 1556
Hamilton HM FX,
Bermuda
DRESDNER RCM ORIENTAL: Proofs of Claim Filing Is Until July 27
--------------------------------------------------------------
Dresdner RCM Oriental Income Fund Ltd.'s creditors are given until July
27, 2007, to prove their claims to Mark W.R. Smith, Derek Lai and Darach
Haughey, 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.
Dresdner RCM's shareholders agreed on July 2, 2006, to place the company
into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Mark W.R. Smith
Derek Lai
Darach Haughey
Deloitte & Touche
Corner House, Church & Parliament Streets
P.O. Box 1556
Hamilton HM FX,
Bermuda
HUNTSMAN CORP: Hexion's Merger Proposal Tops Basell's Offer
-----------------------------------------------------------
Huntsman Corporation received from Hexion Specialty Chemicals, Inc., an
entity owned by an affiliate of Apollo Management, L.P., a proposal to
acquire all of its outstanding common stock for US$27.25 per share in
cash.
The Hexion Proposal is subject to termination of Huntsman’s previously
reported merger agreement with Basell AF and the execution of a definitive
merger agreement with Hexion. The Hexion Proposal’s terms include that
Hexion will have up to 12 months, subject to a 90 day extension in the
judgment of the Huntsman Board of Directors under certain circumstances,
to close the transaction and that the cash price per share to be paid by
Hexion will increase at the rate of 8% per annum (inclusive of any
dividends paid) beginning nine months after a definitive merger agreement
is executed. The required financing for the Hexion Proposal is fully
committed. Furthermore, the proposal does not include a financing
condition.
The Hexion Proposal also includes a US$325 million reverse break-up fee
payable by Hexion to the Company in the event the transaction does not
close due to the failure to obtain regulatory clearance or requisite
financing. The Hexion Proposal provides for a US$225 million termination
fee payable by Huntsman in the event of certain terminations by Huntsman
in connection with the exercise by the Board of Directors or the
Transaction Committee thereof of its fiduciary duties.
As reported in the Troubled Company Reporter on June 26, 2007, Huntsman
entered into the Basell Agreement, pursuant to which Basell agreed to
acquire all of the outstanding common stock of Huntsman for US$25.25 per
share in cash. The Basell Agreement may be terminated under certain
circumstances, including if the Company receives a superior proposal and
provides advance notice to Basell. If the Basell Agreement is terminated
under these circumstances, Basell will be entitled to a US$200 million
payment. Hexion has agreed to directly fund US$100 million of this
payment, subject to reimbursement by Huntsman if the transaction with
Hexion were not consummated in certain circumstances.
The Huntsman Board of Directors, with the unanimous agreement of its
Transaction Committee comprised solely of independent directors, has
concluded that the Hexion Proposal could reasonably be expected to lead to
a superior proposal, as defined in the Basell Agreement. The Transaction
Committee is continuing to evaluate the terms of the Hexion Proposal and
the company and its advisors are engaged in discussions with Hexion
regarding their proposal. The Transaction Committee, in determining
whether or not to pursue the Hexion Proposal, will take into account the
views of the principal shareholders of the company. These principal
shareholders are currently required to support the Basell Agreement under
existing voting agreements with Basell, unless the Board of Directors or
the Transaction Committee elects to terminate the Basell Agreement in
favor of a superior proposal. Pending the culmination of these
discussions with Hexion and the principal shareholders, neither Huntsman’s
Board of Directors nor the Transaction Committee has changed its
recommendation regarding the proposed merger with Basell. Huntsman cannot
give any assurance that the Hexion Proposal will result in a definitive
agreement or a consummated transaction.
About Huntsman
Huntsman Corp. -- http://www.huntsman.com/-- manufactures and
markets differentiated and commodity chemicals. 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,
detergent, personal care, furniture, appliances and packaging.
* * *
As reported in the Troubled Company Reporter on June 28, 2007, Moody's
Investors Service placed the debt ratings and the
corporate family ratings (CFR -- Ba3) for Huntsman Corporation and
Huntsman International LLC, a subsidiary of Huntsman under review for
possible downgrade.
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;
-- determination 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.
===========
B R A Z I L
===========
ALERIS INTERNATIONAL: Buys Wabash Alloys from Connell Limited
-------------------------------------------------------------
Aleris International Inc. has entered into a definitive agreement to
acquire Wabash Alloys from Connell Limited Partnership. Wabash Alloys
produces aluminum casting alloys and molten metal at its seven facilities
in the United States, Canada and Mexico. The company had 2006 revenues of
over
US$900 million and currently employs over 700 people. Closing is expected
to occur in the third quarter and is subject to regulatory approvals and
customary closing conditions.
Steve Demetriou, Chairman and Chief Executive Officer, stated, "We believe
the acquisition of Wabash Alloys will be an excellent strategic fit with
Aleris's existing specification alloy operations. The transaction
provides outstanding opportunities to broaden our customer base, optimize
processing capabilities and enhance our ability to meet the needs of our
customers."
Headquartered in Beachwood, Ohio, Aleris International Inc.
(NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled
aluminum products and offers aluminum recycling and the
production of specification alloys. The company also
manufactures value-added zinc products that include zinc oxide,
zinc dust and zinc metal. The Company operates 42 production
facilities in the United States, Brazil, Germany, Mexico and
Wales, and employs approximately 4,200 employees.
* * *
As reported on Dec. 22, 2006, Standard & Poor's rated Aleris
International Inc.'s senior secured first-lien term loan carries
at 'B+' loan and gave the company a '2' recovery rating after
the report that the company increased the term loan by
US$125 million.
Ratings List:
* Aleris International Group
-- Corporate Credit Rating at B+/Stable/
-- Senior Secured B+
BANCO NACIONAL: Board Okays BRL194.5-Million Loan to Berneck
------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES’ Board of
Directors approved a BRL194.5 million financing to Berneck Aglomerados
S.A. The objective is the expansion of the reforested pine-wood milling
with the installation of a new unit with capacity to produce 240 thousand
m3/year. The project also provides the implementation of a new MDF
(medium density fiberboard) manufacturing facility with producing capacity
of 340 thousand m3/year.
The resources will also be used in the creation of a co-generation unit of
electric energy from biomass, with installed potential of 10 megawatts and
creation of a line of Low Pressure melaminic coating for MDP/MDF sheets,
with capacity to coat 180 thousand m3/year. The plant will be built in
the municipality of Araucaria, State of Parana. The company will invest
on social programs in the undertaking’s area of influence.
The project provides for the creation of 106 direct jobs and 424 indirect
jobs. The construction works began on March 2006. BNDES’ participation is
of 79% of the total investment.
The thermoelectric plant will consume the residual biomass and will be
implemented alongside the industrial complex in Araucaria, generating
about 11 direct and 44 indirect job openings.
All the wastes resulting from the process of each one of the factories,
such as tree bark and peel, sawmill powder, wood-shavings and small
branches will be fully used. There will be an important reduction in the
consumption of other fuels, such as natural gas.
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: May Administer Licensing Process on Highways
------------------------------------------------------------
Published reports say that the Brazilian federal government wants Banco
Nacional de Desenvolvimento Economico e Social S.A. to administer the
licensing process on the highways up for concession and the public private
partnerships under the growth acceleration plan.
According to BNamericas, the licensing process for the federal highway
concessions has been burdened with obstacles since it was first launched
in 2003. The government wants Banco Nacional to “take the reins as a
means of unshackling the process, which still involves detailing the rules
governing private sector involvement and the licensing itself.”
BNamericas notes that Banco Nacional may be called upon to implement the
first federal partnership project involving the BR-116 highway in Bahia.
The bank disclosed its intention of boosting its participation in funding
infrastructure problems, particularly those under the growth acceleration
plan.
Banco Nacional head Luciano Coutinho told BNamericas that demand for
funding in the infrastructure sector will grow as of 2008 due to the
growth acceleration plan's expected gain in momentum. “As a means of
preparing for the rise in demand,” Banco Nacional is in talks with the
European Investment Bank, seeking to sign a loan accord.
Banco Nacional’s budget this year is BRL60 billion. The amount would
increase to BRL68 billion in 2008, BNamericas states.
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.
GERDAU SA: Wants Lower Taxes on Power for Energy-Intensive Firms
----------------------------------------------------------------
Published reports say that Gerdau SA wants lower taxes on power for
energy-intensive industries on the basis that the increasing costs are
damaging the competitiveness of Brazil's steel sector.
According to the press, prices for electric power rose to BRL206 per
megawatt hour last year from BRL82 in 2001.
Gerdau Chief Executive Officer Jorge Gerdau Johannpeter told reporters
that Brazil has to decrease charges added on to electricity bills. State
also needs to facilitate the issue of environmental permits for building
hydroelectric plants due to the lower costs of these compared to thermal
generation.
Brokerage firm Planner said in a report that it has issued a sell
recommendation for Gerdau shares. Gerdau’s high energy costs was a
relevant factor.
Headquartered in Porto Alegre, Brazil, Gerdau SA --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.
* * *
As reported in the Troubled Company Reporter on Jan. 19, 2007,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB' corporate credit rating, on Tampa, Florida-based Gerdau
Ameristeel Corp. on CreditWatch with positive implications.
GERDAU SA: CEO Says Co. To Acquire Two More LatAm Steelmakers
-------------------------------------------------------------
Gerdau SA Chief Executive Officer Jorge Gerdau Johannpeter told news
service Jornal do Commercio that the firm wants to acquire two more South
American steelmakers.
Gerdau commented to Jornal do Commercio, "The priority continues to be the
[South] American continent, but it is hard to affirm that it will be
something for this year. It could happen."
Mr. Johannpeter is considering acquisition opportunities in North America
and Europe, though after South America, the firm's focus is on Asia,
JOrnal do Commercio states.
Headquartered in Porto Alegre, Brazil, Gerdau SA --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.
* * *
As reported in the Troubled Company Reporter on Jan. 19, 2007,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB' corporate credit rating, on Tampa, Florida-based Gerdau
Ameristeel Corp. on CreditWatch with positive implications.
HAYES LEMMERZ: Sells Indiana Unit to Harvey Industries
------------------------------------------------------
Hayes Lemmerz International Inc. has sold Hayes Lemmerz International -
Wabash, Inc., a wholly owned subsidiary that operates its Wabash, Indiana
facility, to Harvey Industries LLC, a privately held company based in
Michigan.
Under the agreement, Harvey Industries has acquired all of the assets of
the subsidiary. Financial terms of the transaction were not disclosed.
The Wabash, Indiana facility employs about 325 employees and manufactures
intake manifolds, cylinder heads, water pump housings, and cast iron
exhaust manifolds.
"This transaction will further enhance Hayes Lemmerz' goal to strengthen
our financial position and to focus on initiatives in select geographic
regions that will improve the growth of our company," said Curtis Clawson,
President, CEO and Chairman of the Board of Hayes Lemmerz. "At the same
time, this transaction will provide the Wabash facility the opportunity to
grow with Harvey Industries."
Jerome Harvey, President of Harvey Industries, LLC said, "We are equally
pleased with this transaction. We believe this transaction will allow us
to further optimize and enhance the business of manufacturing and
machining complex aluminum castings."
The company also said that it does not expect the transaction to have a
material impact on its previously announced full fiscal year 2007
guidance.
Headquartered in Northville, Michigan, Hayes Lemmerz
International Inc. (Nasdaq: HAYZ) -- http://www.hayes-
lemmerz.com/ -- global supplier of automotive and commercial
highway wheels, brakes and powertrain components. The company
has 30 facilities and approximately 8,500 employees worldwide.
The company has operations in India, Brazil and Germany, among
others.
* * *
As reported in the Troubled Company Reporter on May 4, 2007,
Moody's Investors Service raised to B3 from Caa1 the corporate
family and probability of default ratings of HLI Operating
Company, Inc., a wholly owned subsidiary of Hayes Lemmerz
International, and changed the rating outlook to stable from
negative.
NOVELIS: Change of Control Offer for 7-1/4% Senior Notes Expires
----------------------------------------------------------------
Novelis Inc. disclosed the expiration, at 5:00 p.m., New York City time on
July 3, 2007, of its previously announced change of control offer relating
to its US$1.4 billion principal amount of 7-1/4% Senior Notes due 2015.
As of the expiration date, US$841,000 aggregate principal amount of senior
notes had been validly tendered pursuant to the change of control offer.
All holders that validly tendered senior notes pursuant to the change of
control will receive the offer consideration of US$1,010 per US$1,000
principal amount of senior notes tendered. The settlement date for senior
notes validly tendered pursuant to the change of control offer will be
July 6, 2007.
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.
PETROLEO BRASILEIRO: Fire Breaks Out in Gas Compressor
------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA told
LatinPetroleum.com that at a fire broke out in the gas compressor
transformers room onboard Platform P-50 in the Albacora Leste Field,
CamposBasin.
According to LatinPetroleum.com, oil and gas production was stopped.
There were no victims and no oil spills into the sea. Partial production
has already been continued.
Petroleo Brasileiro has notified the incident to the Navy and the oil
sector regulator ANP, LatinPetroleum.com states.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Meets Union Requests Averting Strike
---------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA has heeded the workers
union’s requests, averting a strike, Business News Americas reports,
citing Jose Maria Rangel, the director of the oil workers' federation.
BNamericas relates that the union had threatened to launch a five-day
strike after July 5, which would have stopped oil and gas production. The
union was protesting worker salaries and promotion plans.
"The union spent the day assessing if the workers' requests were fulfilled
and the result was pretty positive for everyone," Mr. Rangel told
BNamericas.
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.
SENSATA TECHNOLOGIES: Buying Airpax Holdings for US$276 Million
---------------------------------------------------------------
Sensata Technologies, Inc. reached a definitive agreement with Chicago
Growth Partners and Airpax senior management to acquire Airpax Holdings,
Inc., for US$276 million, which is expected to be completed in July.
The acquisition includes about 2,800 employees and sales, engineering and
production facilities in Cambridge and Frederick, Maryland; White Bear
Lake, Minnesota; Oviedo, Florida; and Brownsville, Texas, in the United
States; Matamoros, Mexico; Sakado, Japan; and Shanghai, China.
Sensata Technologies Chief Executive Officer Tom Wroe said, "This
transaction gives us leading customer positions in electrical protection
for high-growth network power and critical, high-reliability mobile power
applications and further secures Sensata's position as a leading designer
and manufacturer of sensing and electrical protection solutions for the
residential, industrial, heating, ventilation, air-conditioning, military
and mobile markets. The purchase also further expands Sensata's global
footprint and offers opportunities for operational synergies across both
organizations."
Airpax Chief Executive Officer Dennis Karr said, "We are very excited
about this opportunity to bring our expertise, experience and resources to
another worldwide leader in the controls and sensors arena. Both Airpax
and Sensata will benefit from access to an expanded customer base, wider
portfolio and the know-how and technical expertise of the combined
organization."
Airpax Corporation was founded in 1947 in Baltimore, Maryland, and was
purchased by North American Phillips Corporation in the 1970s. It was
purchased by management and Industrial Growth Partners, a private equity
firm, in 1999 and by management, Chicago Growth Partners, and Norwest
Equity Partners in 2004.
About Airpax
Headquartered in Cambridge, Maryland, with facilities around the world,
Airpax manufactures customized hydraulic magnetic circuit breakers and
certain thermostats and temperature sensors, and is a leading manufacturer
of DC to AC inverters, electronic monitoring and control systems, and
other sensors. Airpax serves original equipment manufacturers (OEMs) in
the telecommunications, industrial, recreational vehicle, heating,
ventilation and air-conditioning, refrigeration, marine, military,
medical, information processing electronic power supply, power generation,
over-the-road trucking, construction, agricultural and alternative energy
markets.
About Sensata Technologies
Headquartered in Attleboro, Massachusetts, Sensata Technologies
-- http://www.sensata.com/-- is a supplier of sensors and controls across
a range of markets and applications. The company has manufacturing
locations in Brazil, Mexico, China, Japan and the Netherlands. Sensata
Technologies employs approximately 5,400 people worldwide.
SENSATA TECHNOLOGIES: S&P Revises Outlook After Airpax Purchase
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Sensata
Technologies B.V. to negative from stable.
The outlook revision follows the company's announcement that it will
acquire Airpax Holdings Inc. for US$276 million plus fees and expenses
using a combination of cash and debt. All of S&P's ratings on Sensata,
including 'B+' corporate credit rating, have been affirmed.
"The acquisition delays the financial deleveraging that Standard & Poor's
expects for the ratings," said Standard & Poor's analyst Clarence Smith.
The ratings on Attleboro, Mass.-based Sensata continue to reflect its
highly leveraged financial profile, which more than offsets its
satisfactory business profile.
Headquartered in Attleboro, Massachusetts, Sensata Technologies
-- http://www.sensata.com/-- is a supplier of sensors and controls across
a range of markets and applications. The company has manufacturing
locations in Brazil, Mexico, China, Japan and the Netherlands. Sensata
Technologies employs approximately 5,400 people worldwide.
SANYO ELECTRIC: To Increase Lithium-Ion Cells Production by 17%
---------------------------------------------------------------
Sanyo Electric Co., Ltd., will increase production capacity of lithium-ion
batteries by 17% because of high demand from laptop computers, Yoshinori
Eki writes for Bloomberg News.
Mr. Eki interviewed Sanyo spokesman Hiroyuki Okamoto who confirmed a
report from the Nikkei Business Daily that they will raise production to
70 million units in a month for this fiscal year ending March 31, 2008 and
will be spending JPY37 billion on its battery businesses for the current
year.
Mr. Okamoto revealed to Mr. Eki that a "large" part of the investment will
be used for lithium-ion battery production but declined to provide the
actual figure.
Reportedly, Sanyo is counting on its solar and rechargeable battery units
to bolster earnings.
The Troubled Company Reporter - Asia Pacific reported on May 30, 2007,
that Sanyo posted net sales of JPY2.22 trillion for the fiscal year ended
March 31, 2007 as compared from the previous year's JPY2.40 trillion,
which is the third year that they reported a net loss.
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading manufacturers of
consumer electronics products. The company has global operations in
Brazil, Germany, India, Ireland, Spain, the United States and the United
Kingdom, among others.
* * *
In March 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and senior
unsecured ratings on rating watch negative.
On May 23, 2006, Standard & Poor's Ratings Services affirmed its negative
BB long-term corporate credit and BB+ senior unsecured debt ratings on
SANYO Electric Co. Ltd. At the same time, the ratings were removed from
CreditWatch where they were first placed with negative implications on
Sept. 28, 2005.
===========================
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
DARIUS INVESTMENTS: Sets Last Shareholders Meeting for July 25
--------------------------------------------------------------
Darius Investments Ltd. will hold its final shareholders meeting
on July 25, 2007, at 11:00 a.m., at:
CIBC Financial Centre
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
DYNAP FUND: Sets Last Shareholders Meeting for July 25
------------------------------------------------------
Dynap Fund SPC will hold its final shareholders meeting on
July 25, 2007, at 11:00 a.m., at:
Appleby, 75 Fort Street, Clifton House
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) authorize the liquidator to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Reid Services Limited
Clifton House, 75 Fort Street
George Town, Grand Cayman
Cayman Islands
ENRON INTERNATIONAL: Proofs of Claim Must be Filed by July 26
-------------------------------------------------------------
Enron International Brazil 1997 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
USA
HILLARY LTD: Sets Last Shareholders Meeting for July 25
------------------------------------------------------
Hillary Ltd. will hold its final shareholders meeting
on July 25, 2007, at 11:00 a.m., at:
CIBC Financial Centre
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
KAIROS FUND: Proofs of Claim Must be Filed by July 26
------------------------------------------------------
Kairos Fund's creditors are given until July 26, 2007, to prove their
claims to Q&H Nominees Ltd., the company's liquidator, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Kairos Fund's shareholders agreed on Dec. 22, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Q&H Nominees Ltd.
Attention: Greg Link
P.O. Box 1348
George Town, Grand Cayman KY1-1108
Cayman Islands
Telephone: 949 4123
Fax: 949 4647
LAZARD DIVERSIFIED: Sets Last Shareholders Meeting for July 25
------------------------------------------------------
Lazard Diversified Bond Fund Ltd. will hold its final
shareholders meeting on July 25, 2007, at 11:00 a.m., at:
47-49 La Motte Street, St. Helier
Jersey, Channel Islands,
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) authorize the liquidator to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Ogier
Attention: Martina de Lima
Telephone: (345) 949 9876
Fax: (345) 949 1986
PARMALAT SPA: Court Allows Investors to Pursue Securities Action
----------------------------------------------------------------
The Honorable Lewis Kaplan of the U.S. District Court for the
Southern District of New York, the federal judge overseeing the
securities class action against Italian dairy giant Parmalat
Finanziaria S.p.A., has soundly rejected the company's motion to
dismiss the case brought by investors.
The investor class seeks to recover billions of dollars in claims against
Parmalat tied to a massive and complex accounting fraud that led to its
bankruptcy in 2003.
Following a corporate reorganization, the management of so-called "New
Parmalat" had argued that because the alleged fraud had been committed by
the previous entity -- "Old Parmalat" – investor claims brought in 2004
were invalid.
Dismissing that argument, Judge Kaplan issued a ruling on
June 28, 2007 that under Italian law, New Parmalat inherited the
liabilities of Old Parmalat.
Judge Kaplan also rejected New Parmalat's arguments that investor claims
were barred by the statute of limitations or because certain lead
plaintiffs had asserted claims in Parmalat's reorganization proceedings in
Italy.
In his decision, Judge Kaplan explained, "New Parmalat asserts
that it 'did not assume the pre-insolvency acts of the Foreign
Debtors.' But the issue is not the assumption of acts. It is the
assumption of liability for those acts."
"New Parmalat suggests that it is being asked to bear more
responsibility than it agreed to undertake. But it is not ...
they (the Plaintiffs) seek only to hold New Parmalat to the terms of the
Concordato," contends Judge Kaplan.
The plaintiffs are represented by co-lead counsel Grant &
Eisenhofer P.A., Cohen, Milstein, Hausfeld & Toll, P.L.L.C., and
Spector, Roseman & Kodroff, P.C.
According to Stuart Grant of Grant & Eisenhofer, the decision is a major
milestone in this sprawling litigation, which extends to
Parmalat's former auditors and investment banks as well as the
company's previous management and board of directors.
"As Parmalat has admitted that its former top officers engaged in
fraudulent conduct and that its financial statements were
materially misstated, New Parmalat appears to have no defense left to our
clients' claims. Judge Kaplan's decision paves the way for a substantial
recovery against New Parmalat under the terms of the Concordato," Mr.
Grant said.
"This latest decision appears to knock out all the legal defenses that New
Parmalat has raised against investors. Since it has no factual defense
against our clients' claims, as the company has already admitted that the
fraud occurred, it seems the only thing remaining is determining the level
of judgment against Parmalat," said Mr. Grant.
About Parmalat
Based in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/--
sells nameplate milk products that can be stored at room temperature for
months. It also has about 40 brand product lines, which include yogurt,
cheese, butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.
The Company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
or bankruptcy protection, they reported more than US$200 million
in assets and debts. The U.S. Debtors emerged from bankruptcy
on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.
SUNCREEK INVESTMENTS: Proofs of Claim Must be Filed by July 25
--------------------------------------------------------------
Suncreek Investments creditors are given until July 25, 2007, to prove
their claims to Buchanan Limited, the company's liquidator, or be excluded
from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Suncreek Investments shareholders agreed on June 14, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
SUNCREEK INVESTMENTS: Sets Last Shareholders Meeting for July 25
----------------------------------------------------------------
Suncreek Investments Ltd. will hold its final shareholders meeting on July
25, 2007, at:
CIBC Financial Centre
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
TRIDENT GLOBAL: Proofs of Claim Must be Filed by July 26
--------------------------------------------------------
Trident Global Investors Portfolio Ltd.'s creditors are given until July
26, 2007, to prove their claims to Q&H Nominees Ltd., the company's
liquidator, or be excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Trident Global's shareholders agreed to place the company into voluntary
liquidation under The Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Krishnamurthy Narayanan
c/o Trident Investment Management, LLC
909 Third Avenue, 29th Floor
New York, New York
USA
VF CAYMANS I: Proofs of Claim Must be Filed by July 26
------------------------------------------------------
VF Caymans I's creditors are given until July 26, 2007, to prove their
claims to Trident Directors (Cayman) Ltd., the company's liquidator, or be
excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
VF Caymans shareholders agreed on May 29, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Trident Directors (Cayman) Ltd.
Attention: Kimbert Solomon
P.O. Box 847
George Town, Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 0880
Fax: (345) 949 0881
VF CAYMANS II: Proofs of Claim Must be Filed by July 26
-------------------------------------------------------
VF Caymans II's creditors are given until July 26, 2007, to prove their
claims to Trident Directors (Cayman) Ltd., the company's liquidator, or be
excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
VF Caymans shareholders agreed on May 29, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Trident Directors (Cayman) Ltd.
Attention: Kimbert Solomon
P.O. Box 847
George Town, Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 0880
Fax: (345) 949 0881
YVES LIMITED: Proofs of Claim Must be Filed by July 25
------------------------------------------------------
Yves Ltd.’s creditors are given until July 25, 2007, to prove their claims
to Buchanan Limited, the company's liquidator, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Yves Ltd.’s shareholders agreed on June 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
Attention: Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949-0355
Fax: (345) 949-0360
YVES LIMITED: Sets Last Shareholders Meeting for July 25
------------------------------------------------------
Yves Ltd. will hold its final shareholders meeting on
July 25, 2007, at:
CIBC Financial Centre
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
ZANETTI LIMITED: Proofs of Claim Must be Filed by July 25
---------------------------------------------------------
Zanetti Ltd.'s creditors are given until July 25, 2007, to prove their
claims to Thomas Ryan, 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.
Zanetti Ltd.'s shareholders agreed on May 24, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Walkers
Attention: Matthew Goucke
Email: matthew.goucke@walkersglobal.com
C/o Walkers, Walker House
87 Mary Street, George Town
Grand Cayman KY1-9001
Cayman Islands
Tel: 345 914 6332
Fax: 345 814 8332
ZANETTI LTD: Sets Last Shareholders Meeting for July 25
-------------------------------------------------------
Zanetti Ltd. will hold its final shareholders meeting on
July 25, 2007, at 11:30 a.m., at:
1325 Avenue of the Amercias
New York, NY
USA
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) authorize the liquidator to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Walkers
c/o Walkers, Walker House
87 Mary Street, George Town
Grand Cayman KY1-9001
Cayman Islands
===============
C O L O M B I A
===============
BANCOLOMBIA SA: Selling Mortgage Loans to Titularizadora
--------------------------------------------------------
BANCOLOMBIA S.A. has sold mortgage loans to Titularizadora Colombiana S.A.
amounting to approximately COL290,000 million. These mortgage loans will
be secured by Titularizadora through the issuance of mortgage-backed
securities called TIPS E-4.
The purpose of this transaction is to transfer to the capital markets a
portion of Bancolombia’s mortgage loans.
Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Moody's Investors Service changed the outlook to
positive from stable on its Ba3 long-term foreign currency
deposit ratings and Ba1 long-term foreign currency subordinated
bond rating for Bancolombia, S.A.
As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Fitch Ratings downgraded and removed from Rating
Watch Negative Bancolombia's long-term and short-term local
currency Issuer Default Ratings and Individual rating:
-- Individual rating to 'C/D' from 'C';
-- Local currency long-term IDR to 'BB+' from 'BBB-'; and
-- Local currency short-term rating to 'B' from 'F3';
In addition, Fitch affirmed these ratings:
-- Foreign currency long-term IDR at 'BB+';
-- Foreign currency short-term rating at 'B'; and
-- Support rating at '3'.
Fitch says the rating outlook is stable.
HEXION SPECIALTY: Huntsman Offer Cues Moody's to Review Ratings
---------------------------------------------------------------
Moody's Investors Service placed the ratings of Hexion Specialty
Chemicals, Inc. under review for possible downgrade following the
company's announcement that it has made a definitive offer to acquire
Huntsman Corporation for US$10.4 billion (or US$27.25 per share plus net
debt). The Hexion Proposal is subject to termination of Huntsman's
previously announced merger agreement with Basell AF. Huntsman has stated
that its Board and the Transaction Committee has concluded that the Hexion
offer "could reasonably be expected to lead to a superior proposal".
Hexion has stated that it has committed financing for the transaction but
has not disclosed the specifics of its financing package. Huntsman's
ratings were placed under review for possible downgrade on June 26, 2007.
Hexion's speculative grade liquidity rating was affirmed at SGL-2, but
could change depending on the outcome of this transaction and the
company's financing strategy.
Ratings on review for possible downgrade:
Issuer: Hexion Specialty Chemicals Inc.
-- Corporate Family Rating, currently B2
-- Probability of Default Rating, currently B2
-- Senior Secured Bank Credit Facility, currently Ba3, LGD2
-- Senior Secured Regular Bond/Debenture, currently B3, LGD5
-- Senior Unsecured Regular Bond/Debenture, currently Caa1,
LGD6
-- Senior Unsecured Revenue Bonds, currently B3, LGD5
Ratings Affirmed:
Issuer: Hexion Specialty Chemicals Inc.
-- Speculative Grade Liquidity Rating, SGL-2
Moody's review is contingent on Hexion's ability to negotiate a definitive
contract for the purchase of Huntsman Corporation and would seek to
determine:
1) the specifics of the proposed financing for the
transaction,
2) potential synergies form a combination of these unrelated
businesses, and
3) the financial and operational strategies for the combined
company.
Moody's noted that Hexion's offer would be a merger and may not trigger
the change of control language in the rated unsecured and subordinated
notes of Huntsman International LLC (the merged company could potentially
assume Huntsman outstanding debt).
Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -
http://www.hexion.com/-- serves the global wood and industrial markets
through a broad range of thermoset technologies, specialty products and
technical support for customers in a diverse range of applications and
industries. Hexion Specialty Chemicals is owned by an affiliate of Apollo
Management, L.P. The company has locations in Singapore, China, Australia,
Netherlands, Brazil and Colombia. Hexion had 2006 sales of USUS$5.2
billion and employs more than 7,000 associates.
HEXION SPECIALTY: Planned Acquisition Cues S&P to Lower Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' corporate credit rating
and other ratings on Columbus, Ohio-based Hexion Specialty Chemicals Inc.
on CreditWatch with negative implications. The ratings on related
entities were also placed on CreditWatch.
"The rating action follows Hexion's announcement that it has made a
definitive proposal to acquire Huntsman Corp. for US$10.14 billion,
including debt," said Standard & Poor's credit analyst Paul Kurias.
In addition, there is a provision for an 8% increase in the offer should
the transaction, which is subject to shareholder and regulatory approval,
take more than nine months to complete.
At March 31, 2007, Hexion had approximately US$3.7 billion in adjusted
debt (including tax-adjusted unfunded employee benefit obligations, and
the capitalized present value of operating leases) and about US$5.3
billion in
revenues.
The proposed acquisition is large relative to Hexion's existing
operations, and will result in a global and highly diversified chemicals
producer with over US$15 billion in annual revenue. If completed, the
transaction could elevate Hexion's business profile given the improved
product mix, better diversification, and less dependency on Hexion's core
resins product. However, the financing of the transaction is likely to
result in a highly aggressive capital structure, more than offsetting the
expected benefits to the business profile. S&P notes that Hexion is
already highly leveraged with total debt to EBITDA above 5x, and that a
debt-financed transaction could further stretch the financial profile,
even beyond a level appropriate for the existing 'B' corporate credit
rating.
Our ratings on Salt Lake City, Utah-based Huntsman Corp. and all related
entities remain on CreditWatch with negative implications, where they were
placed on June 26, 2007. The initial CreditWatch listing reflected
concerns following the announcement that Luxembourg-based Basell AF S.C.A.
and Huntsman had entered into a definitive agreement under which Basell
plans to acquire Huntsman for US$9.6 billion. The transaction, which is
subject to shareholder and regulatory approval, has been approved by
Huntsman's board of directors and has the support of MatlinPatterson and
the Huntsman family, who collectively own 57% of Huntsman's common stock.
It is now unclear which
transaction will be successful, although both have the strong potential to
result in downgrades.
S&P will resolve the CreditWatch on Hexion after meeting with management
to evaluate in detail the financing plans, financial policies and strategy
for the combined company, and the impact of such a combination on the
business and financial risk profiles.
Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -
http://www.hexion.com/-- serves the global wood and industrial markets
through a broad range of thermoset technologies, specialty products and
technical support for customers in a diverse range of applications and
industries. Hexion Specialty Chemicals is owned by an affiliate of Apollo
Management, L.P. The company has locations in Singapore, China, Australia,
Netherlands, Brazil and Colombia. Hexion had 2006 sales of USUS$5.2
billion and employs more than 7,000 associates.
===================
C O S T A R I C A
===================
SAMSONITE CORP: S&P Puts BB- Corporate Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on Mansfield,
Mass.-based luggage manufacturer Samsonite Corp., including the 'BB-'
corporate credit rating, on CreditWatch with negative implications. The
company had total reported debt outstanding of about US$481.8 million at
April 30, 2007.
"The CreditWatch listing follows the announcement that, after unanimous
Board of Directors approval and majority stockholder approval, Samsonite
has entered into a written consent and voting agreement to be acquired by
CVC Capital Partners for about US$1.7 billion in cash, including the
assumption of debt," said Standard & Poor's credit analyst Christopher
Johnson. An
undisclosed amount of debt financing has been committed by third-party
financing sources.
"Although financing details have yet to be disclosed, we expect that
Samsonite's leverage will increase and that its credit measures will
weaken below current levels," said Mr. Johnson.
The transaction, which is expected to close in the fourth quarter of 2007,
is subject to receipt of regulatory approval, as well as satisfaction of
other customary closing conditions.
To resolve the CreditWatch, Standard & Poor's will meet with management to
discuss the financing of the planned transaction and the company's
operating trends. The company's debt leverage and operating strategy
after the transaction will be key areas of focus.
Samsonite Corporation (OTC Bulletin Board: SAMC.OB) --
http://www.samsonite.com/-- manufactures, markets and distributes luggage
and travel-related products. The company's owned and licensed brands,
including Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren,
Lacoste and Timberland, are sold globally through external retailers and
284 company- owned stores. Executive offices are located in London. The
company has global locations in Aruba, Australia, Costa Rica, Indonesia,
India, Japan, and the UnitedStates among others. Executive offices are
located in London, England.
=======
C U B A
=======
* CUBA: May Boost Power Generation Capacity Through Wind Energy
---------------------------------------------------------------
Cuba would generate over 11.5 megawatts from wind power in 2008, the Cuban
Electric Union’s Wind Engineering Group director Eduardo Sante Fernandez
told Cuban News Agency.
According to Cuban News, Cuba's first experimental wind farm was
constructed in 1999 on Turiguano. It has a power generating capacity of
some 4.5 megawatts. Wind farms were also built in Gibara, Holguin and the
Island of Youth.
Cuban News notes that the government is carrying out a feasibility study
on the use of wind power generation. It has formed an “eolian map,” which
identifies the energy potential of wind across the nation, making the
placement of additional wind farms appropriately located. In 11 of Cuba’s
14 provinces there are 92 eolian prospecting stations, each with
100-meter-high sensors. Some 20 stations record the energy potential of
coastal winds in eastern provinces.
Cuba is also analyzing other potential eco-friendly energy sources, which
include water currents, tides, photovoltaic panels and biogas in regions
without any access to the national electric grid, Cuban News states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1
foreign-currency issuer rating reflects the debt moratorium that
has been in place for more than 15 years, leading to the
accumulation of principal and interest arrears.
Moody's assigned these ratings on Cuba:
-- CC LT Foreign Bank Deposit, Caa2
-- CC LT Foreign Currency Debt, Caa1
-- CC ST Foreign Bank Deposit, NP
-- CC ST Foreign Currency Debt, NP
-- Issuer Rating, Caa1
===================================
D O M I N I C A N R E P U B L I C
===================================
AES CORP: Dominican Republic Starts Taking Rockash from Samana
--------------------------------------------------------------
The Dominican Republic has started taking out the rockash dumped on the
port town Arroyo Barril, Samana, using the money paid by the AES
Corporation for damages, Dominican Today reports.
Dominican Today relates that AES had dumped over 50,000 tons of ash in
Samana in 2003.
Dominican Environment Ministry legal director Andres Marranzini told
Dominican Today that AES has disbursed US$1.3 million of the US$6 million
settlement. Some US$300,000 was used as an installment of a debt for fees
and logistic material.
The report says that the rest of the amount disbursed by AES has been paid
to Sotramotier, which hauls the rockash from Samana and to the Cemex
cement plant in San Pedro.
Dominican Today notes that the funds have generated some US$11,000 in
interests. They are handled directly by a trust in the Wells Fargo Bank
in the US.
The Dominican vice minister for soil and water Ernesto Reyna commented to
Dominican Today, "That money we don’t see it, we only request it from them
(the bank)."
About US$2 million will be spent to take the ash to the cement plant, in
the zone’s environmental cleanup and in works promised to the community.
Estimated costs are US$500,000, Vice Minister Reyna told Dominican Today.
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 INTERCONTINENTAL: Carmen Alardo Alleges Work Harassment
-------------------------------------------------------------
Carmen Alardo, the former Special Assistant Prosecutor for banking fraud
cases, told Dominican Today that she wasn’t removed from the post and
instead resigned as she was harassed for being a woman and for firmly
seeking the maximum sentence for the accused in the Banco Intercontinental
case.
Ms. Alardo said in a statement that Corruption Prevention Department
director Octavio Lister’s allegation that she was removed for indiscipline
wasn’t true.
Ms. Alardo told Dominican Today that she requested that Justice Minister
Radhames Jimenez to ask Mr. Lister for an explanation on the term
"indiscipline," since it was unacceptable and offensive for her
professional career. She has noticed that the alleged harassment she was
being subjected to wasn’t solely from discrimination as the only woman in
the team of prosecutors but also to a plan aimed at “excluding her” for
her stance.
"I cannot avoid the doubts about what will now be the course that these
important processes will take, where so many interests move and on where
the public opinion is alert to the behavior of every one and of the final
result. If the defendants will get away with it or if justice punishes
the serious crime committed," Ms. Alardo commented to Dominican Today.
Ms. Alardo has been assigned to the Court of Appeals, Dominican Today states.
Located in Dominican Republic, Banco Intercontinental aka
Baninter collapsed in 2003 as a result of a massive fraud that
drained it of about US$657 million in funds. As a consequence,
all of its branches were closed. The bank's current and savings
accounts holders were transferred to the bank's new owner --
Scotiabank. The bankruptcy of Baninter was considered the
largest in world history, in relation to the Dominican
Republic's Gross Domestic Product. It cost Dominican taxpayers
DOP55 billion and resulted to the country's worst economic
crisis.
* DOMINICAN REPUBLIC: Taiwan Will Pardon Nation’s Debt
------------------------------------------------------
Taiwan’s Foreign Relations Ministry told Dominican Today that it will
pardon debts to the nation’s diplomatic allies, including the Dominican
Republic.
Published reports in the Dominican Republic say that the Taiwanese
government will seek the approval of its parliament and its citizens,
before decreasing the debts of the 24 countries with which it has
diplomatic ties.
The foreign ministry asked many official entities to conduct studies to
reduce or to eradicate the debt of Taiwan political partners which
confront economic problems, in keeping with the world tendency. The plan
wouldn’t be ready for the Taiwan-Central America Summit on Aug. 23 to 25
in Honduras, Dominican Today states, citing Taiwanese Foreign Relations
Vice Minister Yang Tzu-pao.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Moody's Investors Service upgraded the Dominican
Republic government's foreign- and local-currency bond ratings
to B2 from B3. The Dominican Republic's foreign-currency
country ceiling was upgraded to Ba3 from B1. The country's
ceiling for foreign-currency bank deposits was also upgraded to
B3 from Caa1. Moody's said all ratings had stable outlook.
=============
E C U A D O R
=============
PETROECUADOR: Unit Starts Drilling Exploratory Well Drago 1
-----------------------------------------------------------
Ecuadorian state-owned oil firm Petroecuador said in a statement that its
subsidiary Petroproduccion has launched the drilling of exploratory well
Drago 1.
Business News Americas relates that over 2,500 feet have been drilled at
the well in the Shushufindi field in Amazon.
According to Petroecuador’s statement, the drilling has started an
"intense" exploration program that Petroproduccion hope will let the
“identification and incorporation of indispensable new reserves.”
Shushufindi is the largest production field in Ecuador, with production
reaching 8.92 million barrels in January to June 2006, or 9.79% of the
total output in the first half of 2006, BNamericas states, citing energy
and mine ministry statistics.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
=====================
E L S A L V A D O R
=====================
* EL SALVADOR: Groups Protest Against Water Privatization
---------------------------------------------------------
WWW4 Report says that several organizations and communities in Suchitoto,
El Salvador, have held demonstrations against President Antonio Saca’s
“National Policy Policy of Water Decentralization.”
According to the report, the police arrested 13 of the strikers, who were
accused of "public disorder." Those arrested included four leaders of the
rural development organization CRIPDES.
WWW4 Report relates that President Saca planned to disclose the
"decentralization" plan in Suchitoto.
The Salvadoran social movement group has increased its opposition to water
privatization. It brought together many groups organizing at the national
level to raise awareness about the effects of water privatization. It
countered President Saca’s plan to privatize both water and health care
with concrete alternatives, WWW4 Report states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Fitch Ratings affirmed these ratings on El
Salvador:
-- Foreign and Local Currency Issuer Default Ratings
at 'BB+';
-- Short-term Issuer Default Rating at 'B'; and
-- Country Ceiling at 'BBB-'.
Fitch said the rating outlook was stable.
=================
G U A T E M A L A
=================
IMAX CORP: Gets Default Notice from 9.625% Senior Notes Holder
--------------------------------------------------------------
IMAX Corporation was issued on July 2, 2007, a notice of default
by Cede & Co., the nominee of the Depository Trust Company, on
behalf of Catalyst Fund Limited Partnership II, a significant
holder of 9.625% senior notes due Dec. 1, 2010, issued by IMAX.
Cede stated in the notice that DTC is informed by Mellon Trust of New
England, N.A., its participant, that US$62,237,000 principal amount of the
notes are beneficially owned by Catalyst Fund. The notice further added
that Catalyst Fund’s ownership of the notes represents more than 25% of
the outstanding notes under the indenture.
The notice states that defaults have occurred and continue to
occur under Sections 1019 and 1021 of the indenture governing the senior
notes, in that IMAX has failed to comply with financial reporting
requirements and failed to deliver timely and accurate officer
certificates.
IMAX has failed to file its quarterly report for the first quarter of
2007. IMAX also has failed to file its annual report for the period ended
Dec. 31, 2006.
The defaults under Section 1019 were the subject of a prior
consent solicitation by IMAX, which IMAX claimed resulted in a
waiver of its defaults and an extension of its time to file its
required financial reports.
Catalyst disputes that the consent solicitation was valid or
effective. The defaults under Section 1021, which were not the
subject of the prior consent solicitation, require unanimous
consent, which IMAX has not requested or obtained.
Cede demanded through the notice, on behalf of the beneficial
owner, that all the defaults be remedied.
This is the third notice of default sent to IMAX in the last two
months. Separate notices with respect to these defaults were sent to IMAX
on May 3, 2007, and June 4, 2007. The July 2, 2007 notice was sent on the
first day following the expiration of IMAX's claimed, though disputed,
extension of time to file its financial statements under Section 1019.
About IMAX Corporation
Headquartered jointly in New York City and Toronto, Canada, IMAX
Corporation -- http://www.imax.com/-- (NASDAQ:IMAX) is one of
the world's leading entertainment technology companies, with
particular emphasis on film and digital imaging technologies
including 3D, post-production and digital projection. IMAX is a
fully-integrated, out-of-home entertainment enterprise with
activities ranging from the design, leasing, marketing,
maintenance, and operation of IMAX(R) theatre systems to film
development, production, post-production and distribution of
large-format films. IMAX also designs and manufactures cameras,
projectors and consistently commits significant funding to
ongoing research and development. IMAX has locations in
Guatemala, India, Italy, among others.
IMAX CORP: S&P Junks Corporate Credit Rating
--------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit and senior
unsecured debt ratings on IMAX Corp. to 'CCC+' from 'B-'. The ratings
remain on CreditWatch, with implications revised to developing from
negative, to indicate possible upward or downward movement of the ratings.
The ratings were originally placed on CreditWatch with negative
implications on April 2, 2007.
The rating and CreditWatch actions follow the issuance of a notice of
defaults with respect to IMAX's US$160 million 9.625% convertible senior
notes due 2010. The notice relates to the company's failure to file its
SEC Form 10-K for 2006 and Form 10-Q for the first quarter of 2007. IMAX
now has a 30-day cure period (through July 31, 2007) to make the filing.
If IMAX is
unable to file during that time frame or obtain a waiver, maturity on the
notes may be accelerated. In a press release issued by IMAX on June 29,
2007, the company indicated that it expects shortly to be able to file its
2006 Annual Report on Form 10-K and quarterly report on Form 10-Q for the
quarter ended March 31, 2007.
"Standard & Poor's believes that these financial risks have the potential
to lead to an eventual payment default," said Standard & Poor's credit
analyst Tulip Lim. "However, we will raise the ratings if IMAX is able to
resolve this situation either through a timely filing or a receipt of
waivers by noteholders."
Headquartered jointly in New York City and Toronto, Canada, IMAX
Corporation -- http://www.imax.com/-- (NASDAQ:IMAX) is one of the world's
leading entertainment technology companies, with particular emphasis on
film and digital imaging technologies including 3D, post-production and
digital projection. IMAX is a fully-integrated, out-of-home entertainment
enterprise with activities ranging from the design, leasing, marketing,
maintenance, and operation of IMAX(R) theatre systems to film development,
production, post-production and distribution of large-format films. IMAX
also designs and manufactures cameras, projectors and consistently commits
significant funding to ongoing research and development. IMAX has
locations in Guatemala, India, Italy, among others.
SAMSONITE CORP: To Be Acquired by CVC Capital for US$1.7 Billion
----------------------------------------------------------------
Samsonite Corporation entered into a definitive merger agreement to be
acquired by funds managed and advised by CVC Capital Partners, a private
equity firm. The all-cash transaction is valued at approximately US$1.7
billion, including the assumption of debt.
Under the terms of the agreement, CVC will acquire all of the outstanding
common stock of Samsonite for US$1.49 per share in cash.
The transaction was unanimously approved by the Board of Directors of
Samsonite.
Entities controlled by Ares Management LLC, Bain Capital Partners, LLC and
Teachers' Private Capital, the private investment arm of Ontario Teachers'
Pension Plan, who collectively own approximately 85% of Samsonite's common
stock, have agreed to approve the transaction and have entered into a
written consent and voting agreement with CVC in this regard. The written
consent and voting agreement provides, among other things, that the
Principal Shareholders will deliver written consents approving the merger.
The transaction is expected to close during the fourth quarter of 2007 and
is subject to customary closing conditions, including regulatory review in
the US and Europe. CVC has received certain funds debt financing
commitments from third-party financing sources and, accordingly, closing
is not subject to the receipt of financing.
"We believe that this transaction delivers excellent value to all our
shareholders,” Marcello Bottoli, CEO of Samsonite, said. “I am excited to
continue our successful journey to create the world's leading travel
lifestyle brand together with CVC Capital Partners."
"Ares Management LLC, Bain Capital and Ontario Teachers' Pension Plan
would like to thank Marcello Bottoli, the rest of the management team and
the employees of Samsonite for their significant efforts during our
ownership period in transforming the company into the world's leading
premium, global travel brand,” a representative for the Principal
Shareholders commented. “We wish Samsonite and its new owners continued
success."
"CVC Capital Partners is delighted to have reached agreement to acquire
Samsonite, the world's leading travel lifestyle brand,” Hardy McLain and
Luigi Lanari of CVC stated. “We look forward to working with Marcello
Bottoli and his team to realise the full potential of the brand. China
and India present particularly interesting opportunities for growth."
Merrill Lynch International acted as financial advisor and Skadden, Arps,
Slate, Meagher & Flom (UK) LLP acted as legal advisor to Samsonite in
connection with the transaction. Kirkland & Ellis LLP acted as legal
advisor to the Principal Shareholders in connection with the transaction.
UBS and Lehman Brothers Inc. acted as financial advisors and Paul, Weiss,
Rifkind, Wharton & Garrison LLP and SJ Berwin LLP acted as legal advisors
to CVC.
Samsonite Corporation (OTC Bulletin Board: SAMC.OB) --
http://www.samsonite.com/-- manufactures, markets and distributes luggage
and travel-related products. The company's owned and licensed brands,
including Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren,
Lacoste and Timberland, are sold globally through external retailers and
284 company-owned stores. Executive offices are located in London,
England. The company has global locations in Aruba, Australia, Costa
Rica, Indonesia, India, Japan, and the United States among others.
Samsonite Corporation's balance sheet, as of April 30, 2007, showed total
assets of US$643.8 million and total liabilities of US$843 million,
resulting in a US$224.7 million stockholders' deficit.
===========
M E X I C O
===========
COSAN SA: Implementing Restructuring Plan
-----------------------------------------
Cosan’s Chief Financial Officer Paulo Diniz said in a teleconference that
the company is implementing an international restructuring plan to lessen
fiscal and capital costs and boost access to financial markets, Business
News Americas reports.
According to BNamericas, Cosan is preparing to raise up to US$2 billion
from an initial public offering on the NYSE to fund its projects in Brazil
and abroad.
As reported in the Troubled Company Reporter-Latin America on June 27,
2007, Cosan said it has incorporated as a Bermuda holding company and will
list shares on the New York Stock Exchange.
Cosan Limited, a new holding company in Bermuda, will issue the shares.
Brazilian entrepreneur Rubens Silveira Mello, Cosan's controlling
shareholder, made the decision on the Bermuda location to give Cosan
competitive advantages, BNamericas relates, citing Mr. Diniz.
BNamericas notes that Cosan Limited will control Cosan in Brazil, a
publicly trade firm.
Mr. Diniz told BNamericas, "Brazil has a very inefficient tax system that
burdens the company, especially when our competitors are headquartered in
tax havens."
The report says that money raised by Cosan Limited will mainly be allotted
to Cosan through capital contributions or inter-company loans.
Cosan will also consider investments outside Brazil, according to BNamericas.
Mr. Diniz commented to BNamericas, "Bermuda will be a platform for our
international expansion. Cosan wants to have a presence in all important
markets that consume or produce sugar and ethanol and wants to be
positioned to take advantage of new dynamics of the [international]
biofuels market."
Mr. Diniz told BNamericas that access to low-cost funding is very
important for Cosan as it is in a “very capital intensive business.”
Potential markets for investments include:
-- Mexico,
-- Australia,
-- South Africa,
-- Europe, and
-- the US.
Mr. Diniz denied to BNamericas that the restructuring means Cosan's
control is up for sale. He explained, "Cosan is not up for sale; all
information about that is speculation. Cosan will be a multinational with
Brazilian DNA."
Mr. Mello won’t leave his post as the board’s chairperson at Cosan.
"[Mr.] Mello is a very important member of the management board," Mr.
Diniz told BNamericas.
Headquartered in Sao Paulo, Brazil, Cosan S.A. Industria e
Comercio, is the third largest sugar producer in the world. In
2004/2005 it crushed more than 26 million tons of sugar cane in
fourteen mills located in the Central South region of Brazil,
with sugar sales of 2.3 million tons and ethanol sales of 825
million liters.
As of February 2007, Cosan carries Moody's Ba2 global local
currency and foreign currency ratings and Standard and Poor's BB
corporate credit rating.
BEARINGPOINT: Dec. 31 Balance Sheet Upside-Down by US$177.3 Mil.
----------------------------------------------------------------
BearingPoint Inc. reported total assets of US$1.9 billion, total
liabilities of US$2.1 billion, and total stockholders deficit of US$177.3
million as of Dec. 31, 2006.
The company filed its financial reports with the U.S. Securities and
Exchange Commission for the year 2006 on Form 10-K and the three quarters
of 2006 on Forms 10-Q in the last week of
June 2007.
BearingPoint’s chief executive officer, Harry You, stated, "By filing our
full year 2006 financials, we have taken another significant step toward
returning to timely filing our periodic reports with the SEC. The
business is strong and we continue to see great demand for our services."
2006 Highlights
The company’s revenue for 2006 was US$3.4 billion, an increase of US$55.1
million, or 1.6%, over 2005 revenue of US$3,388.9 million.
The company’s gross profit for 2006 was US$550.5 million, compared to
US$358 million for 2005. Gross profit as a percentage of revenue
increased to 16% during 2006 from 10.6% during 2005.
In 2006, the company realized a net loss of US$213.4 million, compared to
a net loss of US$721.6 million in 2005.
Contributing to the net loss for 2006 were US$48.2 million of losses
related to the previously mentioned settlements with telecommunication
clients, US$57.4 million for bonuses payable to its employees, US$53.4
million of non-cash compensation expense related to the vesting of
stock-based awards, US$29.6 million of lease and facilities restructuring
charges and the previously mentioned US$33.6 million year-over-year
increase in external costs related to the closing of the company’s
financial statements.
New contract bookings for 2006 were US$3.1 billion, a slight decrease from
new contract bookings of US$3.1 billion for 2005.
Commercial Services bookings were significantly lower when compared
year-over-year, primarily due to 2005 bookings in excess of US$100 million
related to the signing of its contract with Hawaiian Telcom Communications
Inc, one of the largest contracts in its history. New contract bookings
for the three months ended March 31, 2007, were about US$709.5 million,
compared with new contract bookings of US$804.6 million for the three
months ended March 31, 2006.
A copy of the company's first quarter 2006 report is available for free at
http://ResearchArchives.com/t/s?216e
Other Ventures
During 2006 and 2007, the company worked with Hawaiian Telcom
Communications Inc., a telecommunications industry client, to resolve
issues relating to the company’s delivery of services for the design,
build and operation of various information technology systems. On Feb. 8,
2007, the company entered into a settlement agreement and transition
agreement with HT. Pursuant to the settlement agreement, the company paid
US$52 million, US$38 million of which was paid by certain of the company’s
insurers.
In addition, the company waived about US$29.6 million of invoices and
other amounts otherwise payable by HT to the company. The transition
agreement governed the company’s transitioning of the remaining work under
the HT Contract to a successor provider, which has been completed. In
2006 and 2005, the company incurred losses of US$28.2 million and US$111.7
million, respectively, under the HT Contract.
On June 18, 2007, the company entered into a settlement with a
telecommunications industry client resolving the client’s claims under a
client-initiated "audit" of certain of the company’s time and expense
charges relating to an engagement that closed in 2003. While this
settlement provides the company with the opportunity to perform services
for this client in the future, the dispute will likely continue to
negatively affect the level of new bookings anticipated from this client
in 2007.
On May 22, 2007, the company settled certain disputes with KPMG that had
arisen between companies related to the February 2001 Transition Services
Agreement. KPMG had asserted that the companies were liable to it for
about US$31 million under the Transition Services Agreement for certain
technology service termination costs. The further settlement involves
cash payments by the company to KPMG of US$5 million over a three-year
time frame.
Q1 2007 Key Metrics
BearingPoint reported key business metrics for the first quarter ended
March 31, 2007, which were driven by solid performance in the company’s
core business and continued traction in the marketplace.
Highlights include:
i. Bookings of US$709.5 million for the first quarter of this
year, a modest sequential increase over US$699 million in
the fourth quarter of 2006 and a decrease from US$804.6
million in the first quarter 2006, with the decline
primarily attributable to growth in newly signed, but
unfunded Federal contracts which BearingPoint does not
include in bookings until related appropriations are
approved.
ii. Voluntary total employee turnover of 23.9% an increase
from 21.2% in the fourth quarter of 2006 and a slight
improvement from 24.2% in the first quarter 2006.
iii. Total workforce utilization of 76.6% down slightly from
77.4% in the fourth quarter of 2006 and a solid increase
from 73.4% in the first quarter 2006.
iv. Billable headcount of about 15,200, a slight decline from
about 15,300 in the fourth quarter of 2006 and 15,400 in
the first quarter of 2006.
About BearingPoint
Headquartered in McLean, Virginia, BearingPoint Inc., (NYSE:
BE) -- http://www.BearingPoint.com/-- provides of management
and technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide. The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.
BearingPoint has global locations including in Indonesia,
Australia, Austria, China, India, Japan, Mexico, Portugal,
Singapore and Thailand.
COLLINS & AIKMAN: Court Approves Deal with Customers & JPMorgan
---------------------------------------------------------------
The Honorable Steven W. Rhodes approved a post-June 30, 2007 Agreement
among Collins & Aikman Corp. and its debtor-affiliates, JPMorgan Chase
Bank, N.A., and as agent to the senior, secured prepetition lenders, and
the Debtors' major customers, including DaimlerChrysler Company LLC,
General Motors Corporation, Ford Motor Company, and Auto Alliance
International, Inc.
Post-June 30, 2007 Agreement
In December 2006, in connection with their sales process, the Debtors
worked with JPMorgan Chase Bank, N.A., and the Debtors' major customers,
to negotiate an agreement to address numerous issues that benefited the
Debtors' estates.
In conjunction with the Customer Agreement negotiations, the Debtors,
Agent and certain of the Customers agreed that, if certain Customers
required production from certain of the Debtors' operations after June 30,
2007, the parties would resume negotiations for any necessary post-June
30, 2007, production and other relevant issues.
The Debtors have been in discussions to extend funding for the Debtors'
Plastics and Convertibles operations beyond
June 30, 2007. The Agent's legal and financial advisors have been
intimately involved in the negotiations.
DCC and GM have requested that the Debtors produce certain component parts
in the Debtors' Plastics and Convertibles division after June 30. An
agreement will allow the Debtors to maximize the value of their assets by
closing certain sales that have been approved by the Court, as well as
facilitating remaining sales, preserving the maximum number of jobs
related to the business lines and allowing the Debtors to wind-down in an
orderly fashion, Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New
York, said.
In the absence of an agreement, the Debtors may be forced to cease
operations at their plastics and convertibles plants, which would likely
cause a material disruption in North American automobile manufacturing and
cause significant harm to the Debtors, GM and DCC, Mr. Schrock stated.
To avoid these results, the Debtors, Agent, GM and DCC have completed
negotiations and reached an agreement for
post-June 30, 2007 production. The significant terms of the Post-June 30,
2007 Agreement include:
(a) The parties agree that the provisions of the Customer
Agreement will continue to be applicable among them with
respect to production after June 30, 2007, subject to
certain changes;
(b) The budget for the Plastics & Convertibles production
payments and obligations to the Customer Agreement will
be amended to account for production of GM and DCC during
the period from July 1, 2007, through the production end
date. GM and DCC will be responsible for all costs and
liabilities relating to the extended production and
payment of any amounts due under purchase orders issued
by the Debtors and certain non-Debtor affiliates --
suppliers -- in connection with the extended production
and open as of the production end date, regardless of
whether the cost and liabilities are correctly estimated
or described in the extended production budget.
The production end date occurs on the earliest of the
exit date for the plant; if the plant is a Cadence
Innovation LLC Plant, the closing under the Cadence asset
purchase agreement; and Aug. 31, 2007;
(c) The budget for administration expenses for the Debtors'
and Agent's professional fees and expenses will be
amended to reflect the parties' allocation of
administrative expenses with respect to the period from
July 1, 2007, through Aug. 31, 2007.
If conditions with Cadence are satisfied and the sale of
the Carpets & Acoustics Division has not closed, DCC and
GM will pay their allocable share of 100% of the
administration expenses and professional fees allocable
to the Plastics & Convertibles Division. The maximum
amount allocable to the Supplier for any month during the
extended administration period will not exceed $250,000;
If the Cadence Condition is satisfied and the Carpets &
Acoustics Division has closed, DCC and GM will pay all of
the administration expenses and the professional fees,
which accrue thereafter and related to periods during the
extended administration period, other than non-allocable
administration expenses, except that the supplier will
pay US$250,000 per month in the aggregate of professional
fees during the extended administration period.
If the Cadence Condition is not satisfied, DCC and GM
will pay all of the administration expenses and the
professional fees relating to the extended administration
period, other than non-allocable administration expenses.
(d) The Debtors, DCC, GM and the Agent agree that the
document relating to a sale process, exhibit G to the
Customer Agreement, will be amended, and the
determination date has not occurred for certain plants;
(e) Notwithstanding anything to the contrary in the Customer
Agreement, the Debtors will have no obligation to make
any further capital expenditures funded by DCC or GM
after June 30. After June 30, either GM or DCC may elect
tomake a "Cap-Ex Advance" directly, at their own risk, by
purchasing the subject equipment. In the event DCC or GM
does make a Cap-Ex Advance after June 30, the Customer
will be entitled to a "PMSI," "Junior Security Interest"
or administrative claim;
(f) DCC agrees to resolve its outstanding tooling payables to
and commercial issues with the Debtors;
(g) The parties agree that the "true-ups" referenced in the
Customer Agreement will be performed for each plant as of
the earliest of the termination of all production at the
plants; the sale of the plant pursuant to a purchase
request or option; and Aug. 31, 2007; and
(h) The Debtors may request and the Customer may purchase
certain of the Debtors' facilities under specified
conditions on or before Aug. 31, 2007. If the parties
exercise this option, they will follow certain
procedures.
The Option Rights procedures are:
-- The Debtors will serve a written sale notice, which will
include the identify the facility being sold, the
purchaser of the assets, the purchase price, and the
significant terms of the sale; and
-- If no written objections are filed by the sale notice
parties within 10 days of the date the notice is sent, the
Debtors are authorized to immediately consummate the
transaction.
The Post-June 30, 2007 Agreement will become effective upon execution and
delivery by each of the parties and the Court's approval of the agreement.
A copy of the Post-June 30, 2007 Agreement is available for free at
http://ResearchArchives.com/t/s?2169
Objections
(1) UAW
The International Union, United Automobile, Aerospace and Agricultural
Implement Workers of America is the collective bargaining representatives
of the Debtors' bargaining unit employees at nine facilities and party to
a series of collective bargaining agreements with the Debtors.
Niraj R. Ganatra, Esq., associate general counsel to the UAW, in Detroit,
Michigan, pointed out that the Debtors sought to continue the ability of
their Customers, senior secured prepetition lenders, and others to accrue
economic benefits from the Debtors' liquidation while the very workers who
allow for continued operation of the working assets and thereby facilitate
the liquidation to occur are left with nothing.
The UAW related that despite lengthy and prolonged discussions over
several months with the Debtors and certain Customers concerning fair and
equitable severance pay for the affected hourly employees, no meaningful
proposal has been tendered by the Debtors.
Mr. Ganatra argued that the Debtors do not meet the business judgment
standard set forth in Section 363(b) of the Bankruptcy Code. The Debtors'
failure to settle severance issues at affected plants, while simultaneous
seeking Court approval for a global economic settlement with GM and DCC
related to wind down and liquidation of plants, demonstrates inattention
to the potential consequences of resolving all financial issues related to
wind down of UAW-represented plants without inclusion of a severance
settlement, he said.
(2) H.S. Die
H.S. Die and Engineering, Inc., H.S. Die Rantoul Mold Service, LLC, and
their affiliates, previously objected to the Customer Agreement. H.S.
Die's objection was resolved by the inclusion of certain language
providing that nothing contained in the Customer Agreement or the order
approving it would prejudice the rights of H.S. Die with respect to H.S.
Die's tooling or its liens and security interests with respect to the
tooling.
H.S. Die requested that the protections granted to it under the Customer
Agreement order remain intact and are in no way prejudiced by the Debtors'
request.
To the extent the Debtors are attempting to prejudice the rights and
protections of H.S. Die under the initial order approving the Customer
Agreement, H.S. Die had asked the Court to deny the Debtors' request.
Judge's Decree
Judge Rhodes rules that the rights, remedies or obligations of Ford or AAI
under the Customer Agreement approved on a final basis on Jan. 11, 2007,
will not be waived, altered, modified, amended or otherwise affected.
Nothing in the motion, Customer Agreement or order will conflict with or
otherwise impair the rights of General Electric Capital Corporation under
a settlement agreement with Debtors. The Debtors are not purporting to
sell, nor will they be authorized to sell, any assets to which GECC has an
interest.
About Collins & Aikman
Headquartered in Troy, Mich., Collins & Aikman Corporation --
http://www.collinsaikman.com/-- is a global leader in cockpit
modules and automotive floor and acoustic systems and is a leading
supplier of instrument panels, automotive fabric, plastic-based trim, and
convertible top systems. The Company has a workforce of approximately
23,000 and a network of more than 100 technical centers, sales offices and
manufacturing sites in 17 countries throughout the world. The Company
operates in Latin America through its facilities in Mexico.
The Company and its debtor-affiliates filed for chapter 11 protection on
May 17, 2005 (Bankr. E.D. Mich. Case No.
05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents
C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtors
with investment banking services. Michael S. Stammer, Esq., at Akin Gump
Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured
Creditors Committee. When the Debtors filed for protection from their
creditors, they listed US$3,196,700,000 in total assets and
US$2,856,600,000 in total debts.
On Aug. 30, 2006, the Debtors filed their Chapter 11 Plan and
Disclosure Statement. On Dec. 22, 2006, they filed an Amended
Joint Chapter 11 Plan. The Court approved the adequacy of the
Amended Disclosure Statement. The Court has adjourned the hearing to
consider confirmation of the Amended Joint Plan to July 12, 2007.
(Collins & Aikman Bankruptcy News, Issue No. 67; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
CONTINENTAL AIRLINES: Signs Comprehensive Deal with Kingfisher
--------------------------------------------------------------
Continental Airlines and Kingfisher Airlines have entered into a
comprehensive partnership for frequent flyer and airport lounge access
reciprocity and future codesharing, providing better service to customers
who travel between the U.S. and India and transfer between the two
carriers.
Continental has operated daily, non-stop flights between its New York hub,
Newark Liberty International Airport, and Delhi since 2005. The airline
will launch daily, non-stop flights between New York Liberty and Mumbai on
Oct. 1, 2007 (eastbound).
"We are proud to partner with Kingfisher, who share our commitment to
excellent customer service," said Larry Kellner, Continental's chairman
and chief executive officer. "Our partnership with Kingfisher builds upon
our increased service between New York and India."
"Kingfisher Airlines is very proud to associate with Continental to offer
great service to all our guests," said Dr. Vijay Mallya, Chairman and CEO,
Kingfisher Airlines Limited. "The relationship will benefit both the
airlines as well as our guests. We value our guests who have been loyal
and what better way of expressing our gratitude than to offer them miles
redemption on the international sectors with the help of Continental."
Beginning Oct. 1, 2007, members of the two airlines' frequent flyer
programs, Continental's OnePass and Kingfisher's King Club, will be able
to earn and redeem miles on all flights operated by the other carrier.
Reciprocal airport lounge access for eligible customers, including
Continental BusinessFirst and Presidents Club members, will also begin at
this time.
By the end of the year, the carriers plan to begin codesharing.
Continental will place its code on Kingfisher flights connecting to
Continental's daily flights between New York and Delhi and new service
between New York and Mumbai.
Customers traveling on connecting flights between Continental and
Kingfisher will be able to have single check-in for all flights, including
the issuance of electronic tickets, boarding passes and checked baggage to
their final destination.
About Kingfisher Airlines
Kingfisher Airlines -- http://www.flykingfisher.com/-- operates 187
flights a day across 29 key Indian destinations with a growing fleet of 31
brand new aircraft and is known for its efforts to create a unique Indian
atmosphere for all its guests. During its two years of operation,
Kingfisher has redefined and
revolutionized domestic air travel within India.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout Belize, Mexico, Europe
and Asia, serving 154 domestic and 138 international
destinations including Honduras and Bonaire. More than 400
additional points are served via SkyTeam alliance airlines.
With more than 43,000 employees, Continental has hubs serving
New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year. Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 15, 2007, Moody's Investors Service raised the ratings of
Continental Airlines, Inc.'s corporate family rating to B2,
senior unsecured to B3 and preferred stock to Caa1 and the
ratings of certain tranches of the airline's Enhanced Equipment
Trust Certificates or EETC's. Moody's also affirmed Continental
Airlines' SGL-2 rating, the ratings of the EETCs not upgraded,
and the Loss Given Default rating of LGD5 - 74%. Moody's said
the outlook remains stable.
Upgrades:
Issuer: Cleveland (City of) Ohio
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Continental Airlines Finance Trust II
-- Preferred Stock Preferred Stock, Upgraded to Caa1
from Caa2
Issuer: Continental Airlines, Inc.
-- Corporate Family Rating, Upgraded to B2 from B3
-- Multiple Seniority Shelf, Upgraded to a range of (P)Caa1
to (P)B3 from a range of (P)Caa2 to (P)Caa1
-- Senior Secured Enhanced Equipment Trust, Upgraded to
a range of B2 to Baa2 from a range of B3 to Baa3
-- Senior Secured Equipment Trust, Upgraded to Ba2
from Ba3
-- Senior Secured Shelf, Upgraded to (P)Ba3 from (P)B1
-- Senior Unsecured Conv./Exch. Bond/Debenture, Upgraded
to B3 from Caa1
-- Senior Unsecured Regular Bond/Debenture, Upgraded
to B3 from Caa1
Issuer: Harris (County of) Texas, I.D.C.
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Hawaii Department of Transportation
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Houston (City of) Texas
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: New Jersey Economic Development Authority
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Port Authority of New York and New Jersey
-- Revenue Bonds, Upgraded to B3 from Caa1
DOLE FOOD: Joins DBCP Issue Solution Meeting in Nicaragua
---------------------------------------------------------
Dole Food Company Inc. has joined representatives of ex banana workers in
inviting President of the Republic of Nicaragua, Daniel Ortega, the
Executive Secretary of the National Assembly, congressman Wilfredo
Navarro, and the President of the Special Commission for the DBCP,
congressman Luis Callejas, to integrate as facilitators in discussions
seeking a permanent solution to the Nemagon issue in Nicaragua and all
related litigation, claims and judgments. The negotiation process is
based on the good faith of the Company and the banana worker
representatives to reach a fair, prompt and effective solution to this
social-economic problem.
Michael Carter, executive vice president & general counsel of Dole,
stated, “Although there is no evidence demonstrating that field
application of DBCP led to sterility among agricultural workers, the
Company and the banana worker representatives lead by Victorino Espinales
believe that a permanent solution to the Nemagon issue in Nicaragua can be
achieved through the establishment of a worker program supported by
science and social realities.”
Dole and the banana worker representatives expressed agreement that only
ex banana workers who worked on the Company’s contracted farms, who had
exposure to Nemagon and who are not represented by U.S. attorneys can
participate. “The Company respects the contractual relationships any ex
banana worker has with any U.S. attorney and we don’t want to do anything
to encourage any ex banana worker to violate any such arrangement or to
terminate them,” said Mr. Carter.
Headquartered in Westlake Village, California, Dole Food
Company, Inc. -- http://www.dole.com/-- is a producer and
marketer of fresh fruit, fresh vegetables and fresh-cut flowers,
and markets a line of packaged foods. The company has four
primary operating segments. The fresh fruit segment produces
and markets fresh fruit to wholesale, retail and institutional
customers worldwide. The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia. The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods. Dole's fresh-cut flowers segment
sources, imports and markets fresh-cut flowers, grown mainly in
Colombia and Ecuador, primarily to wholesale florists and
supermarkets in the U.S.
* * *
As reported in the Troubled Company Reporter on Jan. 31, 2007,
Moody's Investors Service downgraded Dole Food Company Inc.'s
corporate family rating to B2 from B1; probability of default
rating to B2 from B1; senior secured bank credit facilities to
Ba3 from Ba2; senior unsecured notes to Caa1 from B3; and
various shelf registrations to (P)Caa1 from (P)B3. Moody's said
the outlook was stable.
On Dec. 11, Standard & Poor's Ratings Services lowered its
ratings on Dole Food Co. Inc. and Dole Holding Co. LLC,
including its corporate credit rating, to 'B' from 'B+'.
DURA AUTOMOTIVE: Sells Atwood Mobile Unit for US$160.2 Million
--------------------------------------------------------------
DURA Automotive Systems Inc. has entered into an asset purchase agreement
with Atwood Acquisition Co., LLC for the sale of DURA’s Atwood Mobile
Products division, headquartered in Elkhart, Indiana. The agreement
provides for the acquisition of Atwood Mobile Products for an aggregate
cash consideration of US$160.2 million. Closing of the transaction is
subject to the approval of the United States Bankruptcy Court for the
District of Delaware, which has jurisdiction over DURA’s Chapter 11
reorganization proceedings; government regulatory approvals; and customary
closing conditions. Dura was advised by Miller Buckfire and Kirkland &
Ellis in connection with the transaction.
As a standard element of the bankruptcy process, DURA has filed a motion
with the Bankruptcy Court seeking approval of procedures that will provide
an opportunity for competitive bids on Atwood Mobile Products before the
sale is approved by the Court. DURA expects to complete the bidding
process and to secure the regulatory approvals in time to close the sale
by the end of August.
“Atwood is a strong, profitable and growing business, and we are extremely
satisfied with the interest we have received in the business,” said Larry
Denton, DURA’s chairman and chief executive officer. “This agreement is a
major milestone in our restructuring efforts as it enables the company to
position itself to exit Chapter 11 and finish implementing financial and
operational strategies to improve our core automotive parts business.”
Atwood offers a broad range of products to the recreation vehicle (RV),
specialty vehicle and manufactured housing markets. The division’s
products encompass windows and doors, specialty glass, hardware appliances
and electronics. Founded in 1909, Atwood was acquired by automotive
supplier Excel Industries, which was then acquired by DURA in 1999.
About Miller Buckfire
Headquartered in New York, Miller Buckfire --
http://www.millerbuckfire.com/-- is a leading independent investment bank
providing strategic and financial advisory services focusing on complex
restructuring transactions, mergers and acquisitions, and equity and debt
financing. The firm was formed in July 2002 when the financial
restructuring group at Dresdner Kleinwort Wasserstein spun off as an
independent entity. Miller Buckfire’s professionals have successfully
restructured more than US$180 billion in debt, advised on M&A transactions
valued at over US$100 billion and advised on financings involving over
US$35 billion.
About Atwood
Headquartered in Elkhart, Indiana, Atwood Mobile Products Inc. designs and
manufactures a broad range of window, glass, aluminum, appliance and
electronic products for recreation vehicles, specialty vehicles,
manufactured housing and associated niche markets. Atwood’s core products
include windows, doors, specialty glass products, water heaters, furnaces,
ranges, electronic control systems, converters and seating systems
designed to meet specific customer demands. Atwood provides its
comprehensive product line to a diverse set of customers including market
leaders Thor Industries, Fleetwood, Jayco, Gulfstream, Winnebago,
Freightliner and Leer. Recognized as a leading supplier to the RV,
specialty vehicle and manufactured housing industries, Atwood markets its
products under its well-recognized Atwood, Creation, Kemberly, Wedgewood,
Spec-Temp, Duraleg and Levelegs brands. Atwood has approximately 1,900
employees.
About DURA Automotive
Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent designer
and manufacturer of driver control systems, seating control systems, glass
systems, engineered assemblies, structural door modules and exterior trim
systems for the global automotive and recreation & specialty vehicle
industries. DURA, which operates in 63 locations, sells its products to
every major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive suppliers. It
currently operates in 63 locations including joint venture companies and
customer service centers in 14 countries.
The company has three locations in Asia, namely in China, Japan and Korea.
It has locations in Europe and Latin America, particularly in Mexico,
Germany and the United Kingdom.
* * *
As reported on Nov. 6, 2006, that Fitch Ratings placed one tranche from
one public collateralized debt obligation and one tranche from private CDO
on Rating Watch Negative following Dura Automotive Corp.'s filing for
protection under Chapter 11.
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. S&P said the
rating outlook is negative.
* * *
The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202). Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards
Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker &
McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP
is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the
Debtors' investment banker. Glass & Associates Inc., gives financial
advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice,
claims and balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of July 2, 2006,
the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in
total liabilities. (Dura Automotive Bankruptcy News, Issue No. 6;
Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
The Debtors' exclusive plan-filing period expires on
May 23, 2007. (Dura Automotive Bankruptcy News, Issue No. 20; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
FORMICA BERMUDA: S&P Withdraws Ratings After Fletcher Purchase
--------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'B' corporate credit and
senior secured debt ratings on Formica Bermuda Holdings Ltd. We also
removed the ratings from CreditWatch with developing implications where
they were placed May 23, 2007. The withdrawal follows the announcement by
the company's parent, Formica Corp. (unrated) that its previously
announced acquisition by New Zealand-based Fletcher Building Ltd.
(unrated) had been completed.
Cincinnati, Ohio-based Formica Corp. -- http://www.formica.com/
-- designs, manufactures and distributes a full range of surfacing
products for commercial and residential applications, including Formica(R)
Brand Laminate, Formica(R) Solid Surfacing, Formica Granite(R), Formica(R)
Stone Natural Quartz Surfacing, Formica(R) Veneer Premium Wood Surfacing
and Formica(R) DecoMetal. The company has offices in Mexico, Spain,
Sweden,
United Kingdom, Finland, France, Italy, Russia, China, Hong Kong,
Singapore, Taiwan, and Thailand.
GRUPO MEXICO: Says Work at Two Zinc & Silver Mines Stopped
----------------------------------------------------------
A Grupo Mexico SA, de C.V., spokesperson told the Associated Press that
work has stopped at two zinc and silver mines in Guerrero and Zacatecas.
The AP relates that workers launched a one-day strike in protest over
safety conditions and a union power struggle. They made demands for labor
authorities to address safety concerns.
The spokesperson said that he wasn’t sure whether the major Cananea mine
was affected, the AP notes.
The National Mining and Metal Workers Union political affairs secretary
Carlos Pavon told the AP that the union didn’t know yet how many workers
had honored the strike call.
The AP states that the strike affects Grupo Mexico and silver producer
Industrias Penoles SA. The 250,000-member union also includes workers of
steel plants owned by Arcelor Mittal in Lazaro Cardenas.
The report says that safety at Mexican mines has come under increased
inspection after 63 miners were killed in an underground explosion in a
northern mine last year.
Early reports showed its zinc mine in Zacatecas was 30% affected by the
strike and that work has stopped at a small mine in Taxco, the AP reports,
citing a Grupo Mexico official.
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'. Fitch said the rating outlook was stable.
HANOVER COMPRESSOR: Hart-Scott-Rodino Waiting Period Expires
------------------------------------------------------------
Hanover Compressor Company and Universal Compression Holdings Inc. have
received notice that the waiting period required by the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 with respect to their proposed merger
has been terminated. Termination of the waiting period satisfies a
condition to the closing of the proposed merger.
The proposed merger of Hanover and Universal, which was announced on Feb.
5, 2007, provides for each common share of Hanover to be converted into
0.325 shares of common stock of a newly created holding company called
Exterran Holdings, Inc. and each common share of Universal to be converted
into one share of common stock of Exterran. The consummation of the
merger remains subject to other closing conditions, including the approval
of the stockholders of each of Hanover and Universal. Closing of the
transaction is currently anticipated in the third quarter of 2007, but no
assurances can be given as to the timing of the satisfaction of all
closing conditions or that all required approvals will be received.
About Hanover Compressor Company
Headquartered in Houston, Texas, Hanover Compressor Company
(NYSE:HC) -- http://www.hanover-co.com/-- is in full service
natural gas compression and provider of service, fabrication and
equipment for oil and natural gas production, processing and
transportation applications. Hanover sells and rents this
equipment and provides complete operation and maintenance
services, including run-time guarantees for both customer-owned
equipment and its fleet of rental equipment. Founded in 1990
and a public company since 1997, Hanover's customers include
both major and independent oil and gas producers and
distributors as well as national oil and gas companies. It has
locations in Argentina, Bolivia, Brazil, Colombia, Mexico, Peru,
Venezuela, India, China, Indonesia, Japan, Korea, Taiwan, the
United Kingdom, and Vietnam, among others.
* * *
As reported in the Troubled Company Reporter on Feb. 8, 2007,
Standard & Poor's Ratings Services placed the 'BB-' corporate
credit ratings on oilfield service company Hanover Compressor
Co. and its related entity Hanover Compression L.P. on
CreditWatch with positive implications.
INNOPHOS HOLDINGS: Board Declares US$0.17 Per Share Dividend
------------------------------------------------------------
Innophos Holdings Inc.'s Board of Directors has declared a dividend of
US$0.17 per share of common stock. The dividend will be payable on July
31, 2007, to stockholders of record as of the close of business on July
13, 2007.
Innophos Holdings, Inc. is the parent holding company of
Innophos Investments Holdings, Inc., which is also a holding
company that owns 100% of Innophos, Inc. Innophos, Inc.
(including its subsidiaries) is the largest North American
manufacturer of specialty phosphate salts, acids and related
products serving a diverse range of customers across multiple
applications, geographies and channels. Innophos offers a broad
suite of products used in a wide variety of food and beverage,
consumer products, pharmaceutical and industrial applications.
Headquartered in Cranbury, New Jersey, Innophos has plant
operations in the US, Canada and Mexico. Its revenues for the
12 months ended Dec. 31, 2006 were roughly US$542 million.
Innophos publicly listed its shares in November 2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 18, 2007, Moody's Investors Service assigned a B1
corporate family rating to Innophos Holdings, Inc., and a B3
rating to the company's new US$66 million senior unsecured notes
due 2012. The new notes are being issued by Innophos Holdings,
Inc. to refinance US$61 million of debt of its subsidiary,
Innophos Investments Holdings, Inc. The corporate family rating
assignment is being made to transfer the corporate family rating
to Innophos Holdings, Inc. from Innophos Investments Holdings,
Inc. An SGL- 2 speculative grade liquidity rating and a stable
rating outlook were also assigned to Innophos.
This summarizes the ratings activity:
Innophos Holdings, Inc.
Ratings assigned:
-- Corporate family rating, B1
-- Probability of default rating, B1
-- Speculative grade liquidity rating, SGL-2
-- US$66 million senior unsecured notes due 2012, B3,
LGD6, 93%
Innophos, Inc.
Ratings affirmed:
-- US$50 million guaranteed senior secured revolver due 2009,
Ba1, LGD2, 18%
-- US$220 million guaranteed senior secured term loan B due
2010, Ba1, LGD2, 18%
-- US$190 million 8.875% guaranteed senior subordinated
notes due 2014, B2, LGD5, 71%
MOVIE GALLERY: S&P Cuts Corporate Credit Rating to CCC+
-------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit rating on
Movie Gallery Inc. to 'CCC+' from 'B-' based on the announcement that the
company was not able to meet its financial covenants for the fiscal
quarter ended July 1, 2007, and that the company is exploring available
restructuring and strategic alternatives. The outlook is developing.
"Movie Gallery remains challenged by poor industry fundamentals," said
Standard & Poor's credit analyst David Kuntz, "and sharp declines in its
core rental business have exacerbated already-weak operating performance."
Headquartered in Dothan, Alabama, Movie Gallery, (Nasdaq: MOVI)
-- http://www.moviegallery.com/-- is a provider of in-home movie and game
entertainment in the United States. It operates over 4,600 stores in the
United States, Canada, and Mexico under the Movie Gallery, Hollywood
Entertainment, Game Crazy, and VHQ.
RIO VISTA: Will Buy All of Northport’s Assets for US$18 Million
---------------------------------------------------------------
Rio Vista Energy Partners L.P. has entered into a Letter of Intent to
acquire substantially all of the assets, including leases, contracts and
other intangibles of Northport Production Company, a privately held
company, for US$18 million. Rio Vista will also assume certain
obligations of Northport, including a note payable of approximately US$2
million and Rio Vista will agree to employ all of the existing employees
of Northport. Rio Vista intends to purchase Northport’s assets through
the issuance of 900,000 restricted units of the master limited partnership
and the issuance of a US$9 million Note, which together will be payable to
Northport. Tony Viele is the majority owner of Northport. Mr. Viele also
serves as a director of Penn Octane Corporation, the general partner of
Rio Vista. The acquisition immediately transforms Rio Vista into an oil
and gas exploration and production company and provides for the required
management expertise to oversee this area of operations. Rio Vista still
continues to own and operate oil and gas services assets in southeast
Texas and Northeastern Mexico in connection with its LPG Transportation
business.
Northport is an independent oil and gas exploration firm with a production
focus in the mid-continent region of the United States. Founded in 1993
and based in Oklahoma City, Oklahoma, Northport drills, operates and
manages wells in Oklahoma, Texas, Kansas New Mexico, Alabama and West
Virginia. Since its inception, it has drilled and acquired significant
reserves and leases in Oklahoma and New Mexico. Presently, the company
owns and operates over 100 wells and has non-operating joint venture
interests in an additional 150 producing properties. Northport estimates
that it had unaudited revenue for the year ended
Dec. 31, 2006, of approximately US$4.6 million and unaudited EBITDA for
the year ended Dec. 31, 2006, of approximately US$3 million.
“We are excited to announce this potential acquisition as Rio Vista
pursues opportunities associated with oil and gas production,” said Ian
Bothwell, Acting Chief Executive Officer of Rio Vista. “In addition to
the Letter of Intent with Northport, we are also pursuing other
transactions that would fit well with the Northport acquisition. I am
especially excited that upon completion of this transaction that we will
have an experienced management team in place, as Northport’s employees,
under the direction of Tony Viele, have extensive experience and success
in identifying, acquiring and developing oil and gas assets. We believe
this strategy will allow us to benefit from robust energy prices and to
generate the cash flow and earnings that could allow for significant
distributions to Rio Vista’s unit holders.”
“I believe Rio Vista represents the ideal vehicle to capitalize on our
experience and technology to build a significant revenue base,” said Mr.
Viele. “With its ability to acquire other producing properties, access
capital and efficiently operate as a master limited partnership, Rio Vista
should allow us to grow assets and production relatively quickly.”
The acquisition is subject to customary due diligence related to
financial, legal and environmental matters, execution of definitive
purchase and sale agreement, approval by the board of managers of Rio
Vista and other closing conditions.
Going Concern Doubt
As reported on the Troubled Company Reporter on May 5, 2006,
Burton Mccumber & Cortez, L.L.P., in Brownsville, Texas, raised
substantial doubt about the ability of Rio Vista Energy Partners
L.P. to continue as a going concern after auditing the Company's
consolidated financial statements for the years ended
Dec. 31, 2004, and 2005.
About Rio Vista
Headquartered in Houston, Texas, Rio Vista Energy Partners L.P. (NASDAQ:
RVEP) buys, transports and sells liquefied petroleum gas. Rio Vista owns
and operates terminal facilities in Brownsville, Texas and in Matamoros,
Tamaulipas, Mexico and approximately 23 miles of pipelines, which connect
the Brownsville Terminal Facility to the Matamoros Terminal Facility. The
primary market for Rio Vista's LPG is the northeastern region of Mexico,
which includes the states of Coahuila, Nuevo Leon and Tamaulipas.
U.S. STEEL: Names William McNally as Tubular Unit Controller
------------------------------------------------------------
United States Steel Corporation has appointed William P. McNally as
controller-Tubular for U. S. Steel's tubular products and services
business, with headquarters in Dallas, Texas. In his new position, Mr.
McNally has financial responsibility for the merged tubular operations of
U. S. Steel and Lone Star Technologies, which U. S. Steel acquired in
June. The appointment was effective July 1.
Throughout his career, Mr. McNally has gained extensive business
experience through a variety of management positions in both operations
and at headquarters. He joined U. S. Steel in 1971 as an accounting
management trainee at the company's Homestead Works and moved through a
variety of increasingly responsible management positions at Homestead and
Mon Valley
Works -- including an assignment as supervisor analyst at the historic
Carrie Blast Furnaces in 1977.
In 1987, Mr. McNally was appointed manager for accounting at Clairton
Works. He was assigned to headquarters in 1990 as manager-general
accounting, moved into business process reengineering in 1993 and was
advanced to director accounting-Raw Materials and Diversified Businesses
in 1999. He was named controller-USS Real Estate and UEC in 2002, and in
2003 was appointed controller-Fairfield Works and Lorain Tubular
Operations, which includes U. S. Steel's seamless tubular operations in
Alabama and Ohio, respectively.
Mr. McNally graduated from Boston University in 1970 with a bachelor's
degree in finance and, in 1980, earned a master's degree in business
administration from Case Western Reserve University in Cleveland, Ohio.
Mr. McNally and his wife, Carolyn, will relocate to the Dallas area.
About U.S. Steel
Headquartered in Pittsburgh, Pennsylvania, United States Steel
Corporation (NYSE: X) -- http://www.ussteel.com/-- manufactures
a wide variety of steel sheet, tubular and tin products; coke,
and taconite pellets; and has a worldwide annual raw steel
capability of 26.8 million net tons. U. S. Steel's domestic
primary steel operations are: Gary Works in Gary, Ind.; Great
Lakes Works in Ecorse and River Rouge, Mich.; Mon Valley Works,
which includes the Edgar Thomson and Irvin plants, near
Pittsburgh and Fairless Works near Philadelphia, Pa.; Granite
City Works in Granite City, Ill.; Fairfield Works near
Birmingham, Ala.; Midwest Plant in Portage, Ind.; and East
Chicago Tin in East Chicago, Ind. The company also operates two
seamless tubular mills, Lorain Tubular Operations in Lorain,
Ohio; and Fairfield Tubular Operations near Birmingham, Ala.
U. S. Steel produces coke at Clairton Works near Pittsburgh, at
Gary Works and Granite City Works. On Northern Minnesota's
Mesabi Iron Range, U. S. Steel's iron ore mining and taconite
pellet operations, Minnesota Taconite (Minntac) and Keewatin
Taconite (Keetac), support the steelmaking effort, and its
subsidiary ProCoil Company provides steel distribution and
processing services.
U.S. Steel's steelmaking subsidiaries U.S. Steel Kosice, s.r.o.,
in Kosice, Slovakia and U.S. Steel Serbia, d.o.o, in Sabac and
Smederevo, Serbia. Acero Prime, the company's joint venture
with Feralloy Mexico, S.R.L. de C.V. and Intacero de Mexico,
S.A. de C.V., provides Mexico's automotive and appliance
manufacturers with total supply chain management services
through its slitting and warehousing facility in San Luis Potosi
and its warehouse in Ramos Arizpe.
As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Standard & Poor's Ratings Services assigned its
'BB+' senior unsecured rating to the proposed offering of US$900
million in senior unsecured notes of United States Steel Corp.
(BB+/Stable/--).
===========
P A N A M A
===========
EASTERN MEDIA: Fitch Puts BB Foreign Curr. Rating Under WatchNeg
----------------------------------------------------------------
Fitch Ratings has placed Eastern Media International Corporation's (EMI)
'BB' long-term foreign currency Issuer Default Rating and 'BBB+(twn)'
National Long-term rating on Rating Watch Negative.
The RWN reflects the potential deterioration to EMI's liquidity profile in
light of the impaired reputation caused by the Chairman of the company, as
well as Fitch's concerns on the likely impact in profitability and cash
flow as a result of increased capex over its real estate investments, and
a reduced size of its bulk shipping fleet.
"Fitch's review of the rating, which is likely to be resolved within the
next three months, will involve an assessment of EMI's management
strategies and corporate governance going forward, and the likely extent
and timeframe of additional borrowing required for the company to support
its property investments," commented Kevin Chang, Associate Director in
Fitch's Asia-Pacific property and transportation team.
Fitch notes that EMI's reputation has been adversely affected by its
chairman, Gary Wang, who is currently detained in Taipei Detention Center,
over allegations by prosecutors that he is involved in treachery,
embezzlement and bid rigging charges in activities related to Eastern
Multimedia Group (EMG) and Asia Pacific Broadband Telecom Co., Ltd. On May
18, 2007, Mr. Wang was sentenced by the High Court to a year and 10 months
prison term after being convicted of violating the Securities and Exchange
Law in 1999; he is albeit entitled to an appeal to the Supreme Court. EMI
may see a tightened liquidity profile with reduced access to banking
facilities provided by financial institutions.
Fitch estimates that EMI will spend TWD4.5 billion and TWD2.8 billion,
respectively in 2007 and 2008, to build EMG's global operation
headquarters in Taipei, its China headquarters in Shanghai, as well as a
spa villa and time-sharing resort in Taoyuan (Taiwan). Such capex will be
partly supported by the likely proceeds of around TWD2.7 billion to be
received from the owners of four Panamax dry bulk cargo vessels to
compensate EMI's early termination of lease contracts of four ships and
its forfeiting of options to acquire these vessels.
Although EMI's marine transport business is benefiting from record high
bulk shipping rates in 2007, Fitch believes the contraction of its Panamax
fleet size and expansion in capex will pressure EMI's free cash flow.
Additional debt financing is therefore likely under the circumstances
without capital injections or sale of assets.
Eastern Media International Corporation, formerly ET Internet Technology
Corporation, operates its business along five business divisions:
warehousing, shipping, development, grain trading and consumer
commodities. The Company's warehousing business division provides storage,
loading and uploading of bulk cargo such as coal and grain. The Company
operates four grain silos at Taichung and Kaohsiung, Taiwan. The shipping
business division provides marine transportation of grain, coal and ore.
The trading division is engaged in the import and sale of corn and soy
bean. The consumer commodity division is engaged in the import and sale
of computing, communication and consumer (3C) commodities, textile and
health care commodities among others within the domestic market. As of
Dec. 31, 2006, the Company had eight major subsidiaries including Bermuda
and Panama.
=====================
P U E R T O R I C O
=====================
ADVANCED MEDICAL: Plans US$75 a Share Purchase of Bausch & Lomb
---------------------------------------------------------------
Advanced Medical Optics Inc. has submitted a proposal to acquire Bausch &
Lomb for US$75 per share in cash and AMO stock. AMO has been designated
as a party that B&L can continue to negotiate with despite the end of the
“go shop” period. The proposal values B&L at approximately US$4.3 billion
in equity value.
Under the terms of the AMO proposal, each B&L share would be exchanged for
US$45 in cash and a fixed number of shares of AMO common stock having a
value of US$30 at the time of signing a definitive agreement. AMO expects
the transaction to be marginally dilutive on a cash basis in year one and
significantly accretive on a cash basis in year two.
“We are pleased that B&L’s board has determined that our offer is bona
fide and is reasonably likely to result in a superior offer,” said AMO
Chairman, President and CEO Jim Mazzo. “We look forward to working with
them to reach a definitive agreement as soon as possible and believe our
bid represents a strategically and financially superior proposal to B&L’s
existing merger agreement.”
A combination of AMO and B&L would:
-- Significantly expand AMO’s global scale and scope. With
sales in over 100 countries and operations in over 50,
B&L’s global reach would more than double AMO’s direct
presence and would greatly enhance its ability to expand
market opportunities and margins.
-- Broaden and deepen AMO’s product portfolio. B&L’s
strengths are in contact lenses and lens care, eye drops
for dry eye, allergies and inflammation, vitamins for
ocular health, vitreoretinal surgical products and post-
operative prescription products. Combining these with
AMO’s eye care, cataract and refractive products and
technologies would create a broad-based product offering
for physicians, which is consistent with AMO’s strategy of
providing the complete refractive solution.
-- Enhance ability to generate efficiencies and innovation.
The combined global platform would provide significant
opportunities to enhance efficiencies and create
productivity improvements. Economies of scale would allow
both companies to build on their unique and complementary
heritages of product leadership and innovation within
ophthalmology through increased investment in R&D.
“This is a truly unique opportunity that would enable AMO to accelerate
our strategic goal of providing a full range of advanced technologies to
address the vision needs of patients of all ages,” said Mr. Mazzo. “I am
confident that delivering on this strategy will allow us to generate
significant value for shareholders and create new opportunities for our
combined employee base. The AMO and B&L businesses complement each other
and together would provide increased scale, scope and the enhanced ability
to generate productivity and efficiency improvements. Through a focus on
integrating the best of both businesses, as well as the sale of some
non-core assets, our goal is to create a stronger, more competitive
combined company with a platform for sustained, profitable growth.”
Mr. Mazzo added, “AMO’s successful acquisition strategy, combined with
strong organic growth, has enabled the company to grow its enterprise
value from US$410 million in 2002 to US$3.8 billion today. This strong
track record makes us confident that we can deliver significant value
through a transaction with B&L. We have already identified sufficient
cost-saving opportunities that would make the transaction accretive on a
cash basis in year two. We are also confident in our ability to continue
to effectively manage our existing businesses and deliver on our current
and future financial commitments. A team of outside advisors will work in
conjunction with the management teams to complete a rapid and successful
integration. B&L has played an historic role in our industry and we have
enormous respect for its proud heritage and skilled employees. Together,
I believe we have a unique opportunity to create a company that is capable
of changing the face of our industry and will bring benefits to our
patients, customers, employees and shareholders.”
AMO has conducted a thorough review of the potential antitrust issues in
connection with the proposed transaction, and it is confident it will be
able to address these issues in a timely manner.
The cash consideration has been fully committed by Goldman Sachs and will
be financed using a combination of bank and public debt. AMO expects that
the combined company’s leverage at the time of closing will be in line
with AMO’s pro forma leverage at the time of the closing of the IntraLase
transaction.
AMO expects to continue its due diligence. There can be no assurance that
the proposal will result in any transaction. The company does not
anticipate providing additional information about the proposed transaction
unless and until it deems further public comment to be required.
Goldman Sachs is acting as financial advisor and Skadden, Arps, Slate,
Meagher & Flom LLP is acting as a legal advisor to AMO.
About Advanced Medical
Headquartered in Santa Ana, California, Advanced Medical Optics
-- http://www.amo-inc.com/-- develops, manufactures and markets
ophthalmic surgical and contact lens care products. Sales for
the twelve months ended June 24, 2005 were approximately US$921
million. The company has operations in Germany, Japan, Ireland,
Puerto Rico and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 22, 2007, Standard & Poor's Ratings Services assigned its
'B' rating on Advanced Medical Optics Inc.'s US$200 million
senior subordinated notes due 2017.
Standard & Poor's also assigned its 'BB' bank loan rating (one
notch above the corporate credit rating on Advanced Medical) to
the company's proposed US$700 million senior secured credit
facility, consisting of a US$400 million term loan B due 2014
and a US$300 million revolving credit facility due 2013. The
facility is rated 'BB', with a recovery rating of '1',
indicating the expectation for full (100%) recovery of principal
in the event of a payment default.
As reported in the Troubled Company Reporter-Latin America on
March 22, 2007, Moody's Investors Service affirmed Advanced
Medical Optics, Inc.'s B1 Corporate Family Rating and all of its
existing debt ratings. These ratings were confirmed:
-- Ba1 rating on the US$300 million Senior Secured Revolver
due 2009 (LGD 1/7%);
-- B2 rating on the US$246 million Convertible Senior
Subordinated Notes due 2024 (changed to LGD 5/71%
from LGD 4/66%);
-- B1 Probability of Default rating; and
-- B1 Corporate Family Rating.
Moody's also assigned these new ratings:
-- Ba1 rating to a US$300 million six-year senior secured
revolver,
-- Ba1 rating to a US$400 million seven-year senior secured
term loan B, and
-- B2 rating to US$200 million senior subordinated notes
due 2017.
Moody's said the rating outlook is stable.
=================
V E N E Z U E L A
=================
DAIMLERCHRYSLER: Delays 2Q Earnings Report Due to Chrysler Sale
---------------------------------------------------------------
The upcoming transfer of a majority interest in Chrysler Automotive and
Chrysler Financial to Cerberus Capital Management and the upcoming closing
of the transaction will result in substantial changes in DaimlerChrysler
AG's financial reporting on the second quarter of 2007.
Chrysler Automotive and Chrysler Financial will be shown in the second
quarter financial statements as "discontinued operations.” For this
reason, it will not be possible to publish the full interim report as
planned on July 26, 2007.
However, in order to report its key figures as soon as possible, on July
25, 2007, DaimlerChrysler will disclose unit sales, revenues and EBIT
(earnings before interest and taxes) for the Mercedes Car Group and Truck
Group divisions as well as for the Van, Bus, Other segment on the basis of
preliminary figures.
A conference call for journalists and analysts will be held on July 25,
2007, at 4.00 p.m. CEST. Originally, the second quarter 2007 interim
report was scheduled to be released on
July 26, 2007.
It will not be possible to report Financial Services' figures separately
for Chrysler and Daimler on July 25, 2007, because the accounting work of
separating the business volume of Financial Services that is to be
allocated to the Chrysler Group will not have been completed by then.
DaimlerChrysler intends to publish its full interim report on the second
quarter of 2007, including the financial statements, on August 29, 2007.
About DaimlerChrysler AG
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) --
http://www.daimlerchrysler.com/-- develops, manufactures, distributes,
and sells various automotive products, primarily passenger cars, light
trucks, and commercial vehicles worldwide. It primarily operates in four
segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in Canada, Mexico, United
States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan,
Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up trucks, sport
utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand
names. It also sells parts and accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees
and retirees, continuing high fuel prices and a stronger shift in demand
toward smaller vehicles. At the same time, key competitors have further
increased margin and volume pressures -- particularly on light trucks --
by making significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group as
quickly and comprehensively, measures to increase sales and cut costs in
the short term are being examined at all stages of the value chain, in
addition to structural changes being reviewed as well.
PETROLEOS DE VENEZUELA: In Talks with Oil Workers on Benefits
-------------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA’s director of
personnel Dario Merchan confirmed to Prensa Latina that the company has a
positive dialogue with oil workers regarding their benefits.
Talks with the employees began in March 2007 and continue toward signing
of collective accords, reports say, citing Mr. Merchan.
Mr. Merchan told Prensa Latina that a meeting was set for July 3 at the
Ministry for Labor & Social Security to define progress through dialogue
in benefit of workers and firm. Petroleos de Venezuela “applauds
confirmation of the Single Oil Workers Federation, with which the next
meetings will be held.” Between March and June, there were important
achievements, like the approval of 11 socio-economic clauses. He
emphasized the decision of implementing an advance of expenses of between
one and three million bolivares per worker.
Mr. Merchan also mentioned the increase of the total of the Electronic
Food Card, or the Cestaticket, up to US$348 per month, with retroactivity
from April 1, 2007, Prensa Latina states.
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.
TIMKEN CO: Inks US$1.2-Mil. Contract with Indian Steelmaker
-----------------------------------------------------------
The Timken Company will supply JSW Steel Ltd. of India with bearings for
its new cold-rolling steel mill as well as provide its MILLTEC(TM) rolling
mill maintenance services after construction is completed. The two new
contracts for bearings and services are valued at approximately US$1.2
million.
JSW is adding the steel mill as part of its plans to increase annual
production from a current 3.8 million tons to 30 million tons by 2010.
"JSW Steel has become an important Indian manufacturer and a valued
customer for Timken as we continue to grow our business along with India's
dynamic market," said David White, Timken's director of sales and
marketing in India. "Timken customers around the world have long valued
the engineering expertise and technical know-how that goes into our
products. Now we are using that same expertise to provide complete
solutions like our MILLTEC rolling mill maintenance services. Offering
such services is one way we add value for our customers here in India and
around the world.”
Timken first began working with JSW Steel in 2000 as a bearing supplier
for its hot-strip mill at the Vijaynagar complex. In 2004, Timken began
offering its customized MILLTEC services, which included responsibility
for managing the roll-shop operation. Timken associates work on-site,
applying the company's knowledge of friction management to increase
operating efficiency.
When MILLTEC services first began at JSW, the hot-strip mill was
experiencing significant bearing failures. The Timken team quickly worked
with JSW on those problems to help improve productivity.
"Timken proved the value of its MILLTEC team, which identified the
problem, suggested solutions and implemented a plan of corrective action,"
Mr. White said. "Our success to date shows that Timken is a key supplier
that JSW can look to for all future projects."
About JSW Steel
JSW Steel Ltd. is part of the O. P. Jindal Group, a US$4 billion
conglomerate that has diversified interests in mining, carbon steel,
power, industrial gases and port facilities. JSW Steel Ltd. is engaged
primarily in manufacture of flat products such as hot-rolled coils, and
galvanized products. It has the largest galvanizing production capacity
in India and is the largest exporter of galvanized products with a
presence in over 74 countries across five continents.
About The Timken Company
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels. It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries. The company has
operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech
Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea,
Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America,
Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000
employees.
* * *
The Timken Company carries Moody's Ba1 Long-Term Corporate Family, Senior
Unsecured Debt and Probability-of-Default Ratings. Moody’s said the
outlook is stable.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA.
Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande delos Santos, and
Christian Toledo, Editors.
Copyright 2007. All rights reserved. ISSN 1529-2746.
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