/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070730.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 30, 2007, Vol. 8, Issue 149 Headlines A R G E N T I N A AEROFLEX INC: Stockholders Approve Proposed Merger Accord ALITALIA SPA: Revised Conditions May Spur AirOne SpA to Re-Bid ARO SRL: Proofs of Claim Verification Deadline Is Tomorrow ARVINMERITOR INC: To Close Ontario Assembly Operations AUTO OMBU: Proofs of Claim Verification Deadline Is Oct. 2 AVAYA INC: Earns US$55 Million in Third Quarter Ended June 30 BANCO DE GALICIA: Parent Inks US$80MM Loan for Capital Increase DAIMLERCHRYSLER: Banks to Pool Money to Raise Buyout Financing EMPLOYS SA: Proofs of Claim Verification Is Until Sept. 19 ORIGLIA NESTOR: Proofs of Claim Verification Ends April 19 PRIDE INTERNATIONAL: Acquires Drillship from Lexton ROCK-TENN CO: Declares US$0.10 Per Share Dividend SAN ISIDRO: Proofs of Claim Verification Ends on Oct. 1 B A H A M A S KNOLL INC: Moody's Holds Ba3 Rating & Withdraws Other Ratings B A R B A D O S HILTON HOTELS: Paying US$0.04 Per Share Dividend on Sept. 21 B E R M U D A ASPEN INSURANCE: Paying US$0.15 Per Share Dividend on Aug. 17 ASPEN INSURANCE: Earns US$114.7 Million in Second Quarter 2007 CRIMEA INC: Proofs of Claim Must be Filed by Aug. 22 CRIMEA INC: Will Hold Final Shareholders Meeting on Aug. 22 B R A Z I L BANCO SANTANDER: S&P Affirms BB+/B Counterparty Credit Rating DELPHI CORP: Plans Opening of New Diesel Plant in Romania FIAT SPA: Buys Back 2.09 Million Ordinary Shares GENERAL MOTORS: Will Cut Jobs & Reduce Production in Michigan NOVELIS INC: Will Invest US$9 Million in New York Plant PETROLEO BRASILEIRO: Will Charge Thermo Plant Operators Extra PETROLEO BRASILEIRO: On Track To Invest Over US$10B This Year TAM SA: Pays Crash Victim's Family WESTERN UNIION: Launches Operations at 587 Locations in Mexico C A Y M A N I S L A N D S ASIAN FUNDING: Will Hold Last Shareholders Meeting on Sept. 10 CHESHIRE FINANCE: Sets Last Shareholders Meeting for Sept. 20 HFT REAL: Will Hold Final Shareholders Meeting on Sept. 20 MECKLENBERGH INVESTMENT: Proofs of Claim Filing Ends on Aug. 20 MORGAN STANLEY: Will Hold Final Shareholders Meeting on Sept. 20 PARMALAT SPA: NY Court Grants Final Okay to U$50 Mln Settlement C H I L E BOSTON SCIENTIFIC: Mulling Sale of Fluid Management Business COEUR D'ALENE: Names Stuart Mathews as Palmarejo Project Manager C O L O M B I A DOLE FOOD: Secures SA 8000 Certification in Colombia INDUSTRIAS METALURGICAS: S&P Assigns B Corporate Credit Rating * COLOMBIA: Names Cesar Prado Villegas as Superfinanciera Chief E C U A D O R PETROECUADOR: Inks Strategic Alliance with Flopec G U A T E M A L A IMAX CORP: March 31 Balance Sheet Upside-Down by US$58.7 Million M E X I C O BAUSCH & LOMB: Asks Advanced Medical to Revise Buyout Bid FORD MOTOR: Bidders for Units to Begin Due Diligence in August FORD MOTOR: Earns US$750 Million Net Profit in Second Quarter GRUPO FINANCIERO: Signs Up for Two-Year US$80-Million Loan GRUPO IMSA: Ternium Obtains Full Ownership of Firm ITRON INC: Earns US$7.2 Million in First Quarter Ended March 31 KANSAS CITY SOUTHERN: Earns US$30.2 Mil. in Second Quarter 2007 MAXCOM TELECOMUNICACIONES: Earns MXN48.1 Mil. in Second Quarter MCDERMOTT INT'L: Completes Amendments to Credit Facilities METROFINANCIERA SA: S&P Affirms B+ Long-Term Credit Rating P A N A M A CHIQUITA BRANDS: S&P Holds Ratings on CreditWatch Negative P U E R T O R I C O BURGER KING: Discloses Additional Debt Retirement for US$25 Mil. HANESBRANDS INC: Second Quarter Operating Profit Is US$88.1MM ORIENTAL FINANCIAL: Reports US$5.2MM Income in Second Quarter T R I N I D A D & T O B A G O DIGICEL: Enhancing Network with Cisco Technology HILTON HOTELS: Unit Launches Hilton Garden Inn Beaumont V E N E Z U E L A LEAR CORP: Terminated Merger Deal Cues S&P to Lift Rating to B+ MARSULEX INC: S&P Withdraws BB- Long-Term Corporate Rating PEABODY ENERGY: AG Edwards Downgrades Firm's Shares to Hold * VENEZUELA: State Telecom Inks Interconnection Pact with ETB * BOOK REVIEW: Bankruptcy: A Feast for Lawyers - - - - - ================= A R G E N T I N A ================= AEROFLEX INC: Stockholders Approve Proposed Merger Accord --------------------------------------------------------- Aeroflex Incorporated's stockholders have approved the previously announced acquisition of the company by affiliates of or funds managed by The Veritas Capital Fund III, L.P., Golden Gate Private Equity, Inc. and Goldman, Sachs & Co. Approximately 98% of stockholders present and voting adopted the merger agreement under the terms of which Aeroflex stockholders will be entitled to receive US$14.50 per share at the time of closing. The number of shares voting to adopt the merger agreement represents approximately 69% of the total number of shares outstanding and entitled to vote. In addition, the European Commission issued its decision to clear the merger. Stockholder approval and clearance by the European Commission of the merger satisfy conditions to the closing of the transaction. Aeroflex expects to receive the remaining regulatory approvals to the merger by the end of this month. In addition, the buyer is currently working to complete its financing arrangements. The merger will not be consummated until those financing arrangements are completed. Headquartered in Plainview, New York, Aeroflex Inc. is a specialty provider of microelectronics and test and measurement products to the aerospace, defense, wireless, broadband and medical markets. For the twelve months ended March 31, 2007, revenues were US$577 million. Aeroflex has offices in China, France, Germany, and Argentina. As reported in the Troubled Company Reporter-Latin America on July 13, 2007, Standard & Poor's Ratings Services removed its 'B' corporate credit rating on Plainview, New York-based Aeroflex Inc. from CreditWatch, where it was placed with negative implications on May 30, 2007. The 'B' corporate credit rating is affirmed; the outlook is negative. The rating action follows a review of a revised buyout offer for the company from a private equity consortium led by Veritas Capital. "At the same time, we assigned our 'B+' bank loan rating and '2' recovery rating to Aeroflex's proposed US$560 million first-lien credit facilities, consisting of a $60 million revolving credit and a US$500 million term loan," said Standard & Poor's credit analyst Lucy Patricola. The '2' recovery rating indicates that lenders can expect substantial (70%-90%) recovery of principal in the event of payment default. The 'B+' rating is one notch higher than the 'B' corporate credit rating on Aeroflex. All ratings are based on preliminary offering statements and are subject to review upon final documentation. ALITALIA SPA: Revised Conditions May Spur AirOne SpA to Re-Bid -------------------------------------------------------------- AirOne S.p.A. will submit a binding offer for the Italian government's 39.9% stake in Alitalia S.p.A. if Italy amends some conditions of the sale, Chris Staiti writes for Bloomberg News. AirOne chief executive Carlo Toto confirmed the carrier's interest in Alitalia before Italy's lower house of parliament, Bloomberg News relates. As previously reported in the Troubled Company Reporter-Europe, the Italian government terminated the sale process after AP Holding S.p.A., a consortium of AirOne S.p.A. and Intesa-San Paolo S.p.A., withdrew its bid to acquire the stake. AP Holding said that after reviewing the terms and conditions of the sale, it will not submit a binding offer for the stake. The bidders had been apprehensive of the bidding conditions set by the Italian government and had cited these requirements as reasons for their withdrawal. In a TCR-Europe report on July 25, 2007, Italy said it may relaunch the process to sell stake in Alitalia on lighter conditions, Thomson Financial reports citing local daily La Repubblica. According to La Repubblica, if Italy relaunches the sale process, it may impose lesser conditions, though it may still require the buyer to inject fresh capital into Alitalia. Former bidders TPG Capital, MatlinPatterson Global Advisers LLC and Mediobanca S.p.A., The Times relates, reaffirmed their interest to acquire Italy's stake but only if the government relaxes its conditions. Meanwhile, Italian Finance Minister Tommaso Padoa-Schioppa remains optimistic that the government would find a solution for the current crisis at Alitalia, Agenzia Giornalistica Italia reports. Mr. Padoa-Schioppa will deliver a speech regarding Alitalia's condition before the Parliament today. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The company also operates in Argentina, China, and Japan, among others. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. ARO SRL: Proofs of Claim Verification Deadline Is Tomorrow ---------------------------------------------------------- The court-appointed trustee for Aro S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until 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 ARVINMERITOR INC: To Close Ontario Assembly Operations ------------------------------------------------------ ArvinMeritor Inc. would close its Commercial Vehicle Systems assembly operation in St. Thomas, Ontario, Canada by Nov. 23, 2007. The closure is part of restructuring actions in North America and Europe which the company expects to affect 13 plants and 2,800 employees, resulting in an estimated annual run rate savings of US$130-US$140 million by 2012. The facility in St. Thomas employs 17 people, and serves as an assembly site of the company's drivelines. Operations based in St. Thomas will be transferred to ArvinMeritor's facility in Laurinburg, North Carolina. Employees were advised of the closure today during a meeting at the facility. ArvinMeritor will offer outplacement support and severance and benefits packages to affected employees. "Actions like these are never easy, but are necessary because of the highly competitive nature of the motor vehicle industry," Wayne Watson, general manager, Operations, North America, said. "The company must have a global manufacturing footprint that optimizes capacity, reduces costs, and creates the greatest level of customer service." "The closure of St. Thomas is in no way a reflection of our fine workforce,” Brad Ducharme, site manager at the St. Thomas facility said. Our employees are talented and highly skilled individuals who have worked hard to support our customers." About ArvinMeritor Inc. Based in Troy, Michigan, ArvinMeritor Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components serving light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarket. ArvinMeritor employs approximately 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. * * * As reported in the Troubled Company Reporter on Feb. 12, 2007 Dominion Bond Rating Service assigned a rating of BB (low) to the USUS$175 million Convertible Senior Unsecured Notes of ArvinMeritor Inc. DBRS says the trend is stable. As reported on on Feb. 6, 2007, Moody's Investors Service has downgraded ArvinMeritor's Corporate Family Rating to Ba3 from Ba2. Ratings on the company's secured bank obligations and unsecured notes were lowered one notch as a result. Ratings lowered: ArvinMeritor Inc. -- Corporate Family Rating to Ba3 from Ba2 -- Senior Secured bank debt to Ba1, LGD-2, 20% from Baa3, LGD-2, 18% -- Senior Unsecured notes to B1, LGD-4, 65% from Ba3, LGD-4, 64% -- Probability of Default to Ba3 from Ba2 -- Shelf unsecured notes to (P)B1, LGD-4, 65% from (P)Ba3, LGD-4, 64% Arvin Capital I -- Trust Preferred to B2, LGD-6, 96% from B1, LGD-6, 96% Arvin International PLC -- Unsecured notes guaranteed by ArvinMeritor Inc. to B1, LGD-4, 65% from Ba3, LGD-4, 64% Ratings affirmed: ArvinMeritor Inc. -- Speculative Grade Liquidity rating, SGL-2 AUTO OMBU: Proofs of Claim Verification Deadline Is Oct. 2 ---------------------------------------------------------- Mirta Aurora Lopez, the court-appointed trustee for Auto Ombu S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Oct. 2, 2007. Ms. Lopez will present the validated claims in court as individual reports on Nov. 14, 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 Auto Ombu 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 Auto Ombu's accounting and banking records will be submitted in court on Dec. 27, 2007. Ms. Lopez is also in charge of administering Auto Ombu's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Mirta Aurora Lopez Avenida Corrientes 2335 Capital Federal Buenos Aires, Argentina AVAYA INC: Earns US$55 Million in Third Quarter Ended June 30 ------------------------------------------------------------- Avaya Inc. reported net income of US$55 million for the third fiscal quarter of 2007. In the third fiscal quarter of 2006, the company reported net income of US$44 million. Avaya's third fiscal quarter 2007 revenues decreased 1.6% to US$1.3 billion, over revenue for the same period last year. Sales of products declined 1.6%, rental and managed services revenues declined 7.1%, and services revenues were flat. Foreign exchange benefited revenues by approximately US$30 million, primarily in Europe. U.S. revenues declined 8%. EMEA revenues were relatively flat, with growth outside of Germany offset by declines within Germany. Asia Pacific revenues grew by 33%. Revenues in the Americas, non-U.S., grew by 11%, driven by performance in Latin America. The company's total gross margin was 46.8% for the third fiscal quarter of 2007 compared to 45.3% in the prior year. Selling, general and administrative expense and research and development expense were both lower compared to the prior year, contributing to the year-over-year income improvement. The company reported operating income for the third fiscal quarter of 2007 of US$70 million. In the third fiscal quarter of 2006, the company reported operating income of US$28 million. Avaya's effective tax rate was 31.3% for the third quarter of fiscal 2007. Avaya generated US$202 million in operating cash flow during the third fiscal quarter of 2007 compared to US$181 million in the third fiscal quarter of 2006. Avaya's cash balance at the end of the third quarter of fiscal 2007 was US$1.1 billion, compared with US$899 million as of Sept. 30, 2006. Fiscal 2007 Year-To-Date Results For the first nine months of fiscal 2007, the company earned net income of US$183 million, compared to net income of US$153 million for the first nine months of fiscal 2006. Operating income for the first nine months of fiscal 2007 was US$241 million compared to US$188 million for the first nine months of fiscal 2006. Revenues for the first nine months of fiscal 2007 were US$3.9 billion, compared to US$3.784 billion last year. Operating cash flow for the first nine months of fiscal 2007 was US$424 million compared to US$456 million last year. At June 30, 2007, the company reported total assets of US$5.5 billion, total liabilities of US$3.1 billion, and total stockholders' equity of US$2.4 billion. About Avaya Headquartered in Basking Ridge, New Jersey, Avaya, Inc. (NYSE:AV) -- http://www.avaya.com/-- designs, builds and manages communications networks for more than one million businesses worldwide, including more than 90% of the FORTUNE 500(R). Avaya is a world leader in secure and reliable Internet Protocol telephony systems and communications software applications and services. Avaya has locations in Malaysia, Argentina and the United Kingdom. BANCO DE GALICIA: Parent Inks US$80MM Loan for Capital Increase --------------------------------------------------------------- Grupo Financiero Galicia said in a filing with the Argentine stock exchange that it has signed up for a two-year, US$80-million loan to integrate its banking unit Banco Galicia's capital increase. Business News Americas relates that Banco Galicia will issue up to 100 million B class shares -- about 21% greater than its outstanding shares -- at ARS4.991 each. "The preferential subscription period will run through Aug. 1," BNamericas states. About Grupo Financiero Grupo Financiero Banorte S.A. de C.V. is a holding company that operates, through its subsidiaries, in the Mexican banking industry. The company's main activities include commercial, personal and investment banking, securities trading, insurance, pension funds, leasing and credit financing. Its two main subsidiaries are Banorte (96.11%) and Bancentro (99.99%), which both offer personal and commercial banking services such as credit and debit cards, insurance products, savings accounts and mortgage financing. As of Dec. 31, 2005, Grupo Financiero Banorte run a total of 986 offices and over 2,800 automated teller machines across Mexico. About Banco de Galicia Headquartered in Buenos Aires, Argentina, Banco de Galicia y Buenos Aires SA -- http://www.e-galicia.com/-- is an Argentinean private bank that is engaged in commercial banking, providing general banking services to large corporations, small and medium-sized companies, agricultural and cattle farms and individuals. The company controls an extensive and diverse network of subsidiaries, which include Banco Galicia Uruguay SA, Galicia Capital Markets SA, Galicia Factoring y Leasing SA, Agro Galicia SA, Galicia Administradora de Fondos SA, Galicia Valores SA, Galicia Warrants SA, Net Investments SA, Sudamericana Holding SA and Tarjetas Regionales SA. Through its subsidiaries the company offers accounting, investment and insurance services, loans, checks and debit and credit cards. It also finances the development of real estate, acts as a fiduciary and leases properties to interested parties. It operates over 400 branches across the country and provides e-banking services to customers via its Internet site. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2007, Banco de Galicia y Buenos Aires' Obligaciones Negociables issued on Nov. 6, 2001, for the original amount of US$12 million was rated D by the Argentine arm of Standard & Poor's International Ratings. DAIMLERCHRYSLER: Banks to Pool Money to Raise Buyout Financing -------------------------------------------------------------- Bankers for DaimlerChrysler AG's Chrysler Group have deferred a US$12 billion debt sale to investors as part of a buyout severing Chrysler from its German parent, The Wall Street Journal reports. According to WSJ, rather than fund the operations of the newly independent auto maker with money raised from loans, as planned, the underwriters of the deal -- five banks led by J.P. Morgan Chase & Co. -- will have to provide much of the money themselves, at least until the market settles down. Chrysler's bankers -- including J.P. Morgan, Goldman Sachs Group Inc., Citigroup Inc., Bear Stearns Cos. and Morgan Stanley -- have spent the past month trying to convince investors to buy US$12 billion in loans for Chrysler's auto business and US$8 billion in loans for its financial arm. The underwriters of the debt sale have been discussing plans to take half or more of a US$10 billion piece of the Chrysler auto loan, WSJ states, citing people familiar with the matter as its source. The US$8 billion debt sale for Chrysler Financial, meanwhile, is still expected to be completed this week, though the interest that the company would have to pay on the debt has been jacked up, WSJ relates. The New York Times notes that executives at the automaker's parent company said the financing problem will not affect the purchase of the Chrysler Group by the private equity firm Cerberus Capital Management, which signed to buy an 80% stake in the U.S. Arm. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. EMPLOYS SA: Proofs of Claim Verification Is Until Sept. 19 ---------------------------------------------------------- Maria Cristina Agrelo, the court-appointed trustee for Employs S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 19, 2007. Ms. Agrelo will present the validated claims in court as individual reports on Nov. 1, 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 Employs 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 Employs' accounting and banking records will be submitted in court on Dec. 13, 2007. Ms. Agrelo is also in charge of administering Employs' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Employs S.A. Lavalle 1570 Buenos Aires, Argentina The trustee can be reached at: Maria Cristina Agrelo Viamonte 1365 Buenos Aires, Argentina ORIGLIA NESTOR: Proofs of Claim Verification Ends April 19 ---------------------------------------------------------- Aldo Alfredo Maydana, the court-appointed trustee for Origlia Nestor Felix y Origlia Edgardo Jose S.H.'s bankruptcy proceeding, verifies creditors' proofs of claim until April 19, 2007. Mr. Maydana will present the validated claims in court as individual reports on June 4, 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 Origlia Nestor 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 Origlia Nestor's accounting and banking records will be submitted in court on July 31, 2007. Mr. Maydana is also in charge of administering Origlia Nestor's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Origlia Nestor Felix y Origlia Edgardo Jose S.H. Localidad de Colonia Josefina Santa Fe, Argentina The trustee can be reached at: Aldo Alfredo Maydana 26 de Enero 40 Rafaela, Santa Fe Argentina PRIDE INTERNATIONAL: Acquires Drillship from Lexton --------------------------------------------------- A report posted on Rigzone says that Pride International has acquired an ultra-deepwater drillship from Lexton, Inc., an affiliate of the Tanker Pacific group of companies. Rigzone relates that the drillship is being built at the Samsung Heavy Industries Co., Ltd. shipyard in Geoje, South Korea, on a fixed-price basis. It would be delivered to Pride International in the first quarter of 2010. According to the report, the drillship construction cost could total US$675 million, which includes US$108.5 million to be paid to Lexton at closing, commissioning and system integrated testing. Pride International would finance the cost of the rig through available cash and borrowings against its revolving credit facility. Pride International President and Chief Executive Officer Louis A. Raspino told Rigzone, "This acquisition is consistent with our stated strategy to invest in premium, offshore drilling assets, with a particular focus on deepwater. When combined with our recently announced drillship construction project and acquisitions of our partners' interests in two deepwater joint ventures, we have now invested or committed over US$2 billion toward our deepwater growth strategy. Strong global demand for energy and attractive commodity prices are fueling our customers' continued growth in exploration and development spending. As a result, we are highly confident that the favorable conditions in the deepwater sector will persist for quite some time, producing attractive opportunities for deepwater drilling rigs, especially ultra-deepwater rigs of this caliber. Furthermore, un-contracted ultra-deepwater rig capacity under construction and with an expected delivery prior to the first quarter of 2010 has declined to four units. In light of continued deepwater rig capacity constraints, we believe the planned first quarter 2010 delivery of this drillship will be valuable in meeting the future needs of our clients, and, accordingly, should produce excellent contracting prospects." Rigzone notes that the rig will be capable of operating in water depths of up to 10,000 feet and drilling to a total vertical depth of 40,000 feet. It will feature: -- dynamic positioning station-keeping with DPS-3 certification, -- expanded drilling fluids capacity, and -- a 1,000 ton top drive. Headquartered in Houston, Texas, Pride International, Inc. -- http://www.prideinternational.com/-- is a drilling contractor. The Company provides onshore and offshore drilling and related services in more than 25 countries, operating a diverse fleet of 278 rigs, including two ultra-deepwater drillships, 12 semi submersible rigs, 28 jackup rigs, 18 tender-assisted, barge and platform rigs, and 218 land rigs. Pride also provides a variety of oilfield services to customers in Argentina, Venezuela, Bolivia and Peru. * * * As reported in the Troubled Company Reporter on Oct. 5, 2006, Moody's Investors Service affirmed its Ba1 Corporate Family Rating for Pride International Inc. ROCK-TENN CO: Declares US$0.10 Per Share Dividend ------------------------------------------------- Rock-Tenn Company's Board of Directors declared a dividend of US$0.10 per share on its Class A Common Stock to shareholders of record at the close of business on Aug. 7, 2007. The dividend will be paid on Aug. 20, 2007. Rock-Tenn Company provides a wide range of marketing and packaging solutions to consumer products companies at low costs, with annual net sales of approximately US$2.3 billion and operating locations in the United States, Canada, Mexico, Argentina and Chile. The company is one of North America's leading manufacturers of packaging products, merchandising displays and bleached and recycled paperboard. Headquartered in Norcross, Georgia, Rock-Tenn Company, provides marketing and packaging solutions to consumer products companies from operating locations in the United States, Canada, Mexico, Argentina and Chile. * * * As reported in the Troubled Company Reporter, June 20, 2007, Standard & Poor's Ratings Services placed its ratings on Rock-Tenn Co. including the 'BB' corporate credit rating, on CreditWatch with positive implications. SAN ISIDRO: Proofs of Claim Verification Ends on Oct. 1 ------------------------------------------------------- Roque Alberto Pepe, the court-appointed trustee for San Isidro Pizza S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Oct. 1, 2007. Mr. Pepe will present the validated claims in court as individual reports on Nov. 13, 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 San Isidro 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 San Isidro's accounting and banking records will be submitted in court on Dec. 26, 2007. Mr. Alberto is also in charge of administering San Isidro's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Roque Alberto Pepe Argentina 5785 Buenos Aires, Argentina ============= B A H A M A S ============= KNOLL INC: Moody's Holds Ba3 Rating & Withdraws Other Ratings ------------------------------------------------------------- Moody's Investors Service withdrew the Ba3 ratings on Knoll Inc.'s US$500 million senior secured credit facility, which is comprised of a revolver and a term loan term loan, following the refinancing of the facility with an unrated US$500 million revolving credit facility. At the same time, Moody's affirmed the company's Ba3 corporate family rating, but withdrew the B1 probability of default rating and LGD assessments as these ratings/assessments are only applicable for speculative grade companies that have rated debt. The rating outlook is stable. Knoll's Ba3 rating reflects its strong brand name, diversified customer, industry leading margins, and distributor base, and a good market position in its core office systems business with more than a 15% market share. The rating further reflects Knoll's long-standing reputation for product quality and design/innovation. The rating also reflects Moody's expectation of the continuation of favorable demand trends, although the growth rate is expected to be slower than the last few years. The ratings are constrained by its modest top line, which is about two-thirds of the median for similarly rated companies, by the cyclical and competitive nature of the industry and by high raw material prices. The rating was affirmed: -- Corporate family rating at Ba3; These ratings/assessments were withdrawn: -- Senior secured revolver at Ba2 (LGD2, 27%); -- Senior secured term loan at Ba2 (LGD2, 27%); -- Probability of default rating at B1. Based 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, Singapore, among others. =============== B A R B A D O S =============== HILTON HOTELS: Paying US$0.04 Per Share Dividend on Sept. 21 ------------------------------------------------------------ Hilton Hotels Corporation has declared a dividend of US$0.04 per share, payable in cash on Sept. 21, 2007, to stockholders of record at the close of business on Sept. 7, 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. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. ============= B E R M U D A ============= ASPEN INSURANCE: Paying US$0.15 Per Share Dividend on Aug. 17 ------------------------------------------------------------- Aspen Insurance Holdings Limited's Board of Directors has declared on July 26, 2007, a quarterly cash dividend on its ordinary shares of US$0.15 per ordinary share. The dividend is payable on Aug. 17, 2007, to the holders of record as of the close of trading on Aug. 7, 2007. The company’s Board of Directors also declared a cash dividend on its Perpetual Preferred Income Equity Replacement Securities of US$0.703125 per Perpetual PIER. The dividend is payable on Oct. 1, 2007 to the holders of record as of the close of business on Sept. 15, 2007. The company’s Board of Directors declared a dividend on the 7.401% Perpetual Non-Cumulative Preference Shares of US$0.462563 per Perpetual Preference Share, payable on Oct. 1, 2007, to the holders of record as of the close of business on Sept. 15, 2007. Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings Limited (NYSE: AHL) (BSX: AHL BH) is the holding company of the Aspen Group the principal operating entities of which are Aspen Insurance UK Limited and Aspen Insurance Limited, both rated A2 for insurance financial strength. At the end of September 2006, Aspen Group reported net income of US$259 million and shareholders' equity of US$2.3 billion. * * * As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba1 rating to the proposed US$200 million Perpetual Non-Cumulative Preference Shares to be issued by Aspen Insurance Holdings Limited, the existing perpetual "PIERS" of which were rated Ba1 by Moody's. ASPEN INSURANCE: Earns US$114.7 Million in Second Quarter 2007 -------------------------------------------------------------- Aspen Insurance Holdings Limited reported net income of US$114.7 million for the quarter ended June 30, 2007, compared to US$101.8 million for the same quarter in 2006, up 13%. Its net income increased 45% in the first half of 2007 to US$236.6 million, versus US$163.6 million for the first half of 2006. The company also reported: * Diluted earnings per share of US$1.19 for the quarter ended June 30, 2007 versus US$1.01 for the same period in 2006, up 18%, after payment of preference share dividends. For the first six months of 2007, diluted earnings per share were US$2.46 versus US$1.61 from the first half of 2006, up 53%. * Annualized return on average equity for the quarter was 20.4%, equaling the return for the second quarter of 2006 of 20.4%. * Net investment income in the second quarter of 2007 increased by 58% to US$78.8 million against US$49.9 million in the second quarter of 2006. * The combined ratio for the second quarter of 2007 was 88.4% versus 81.6% for the same quarter in 2006. * Net earned premium increased for the quarter to US$451.2 million versus US$429.0 million in the same period in 2006, up 5%. * Book value per ordinary share at June 30, 2007, is US$24.44 versus US$20.19 at June 30, 2006, up 21%. * The company also reported UK flood losses resulting from heavy storms during June in northern England of US$23.5 million. Aspen Insurance Chief Executive Officer Chris O'Kane said, "I am delighted to report another very strong quarter for Aspen this year. We reported a 21% increase year on year in book value per share and an annualized return on average equity of 20.4% for the quarter, which reflect strong performance across our underwriting segments and an increasing contribution from investment income. Our results this quarter and year-to-date clearly show the impact of the changes to our business in 2006 and the benefits of our targeted approach to managing our key performance levers." Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings Limited (NYSE: AHL) (BSX: AHL BH) is the holding company of the Aspen Group the principal operating entities of which are Aspen Insurance UK Limited and Aspen Insurance Limited, both rated A2 for insurance financial strength. At the end of September 2006, Aspen Group reported net income of US$259 million and shareholders' equity of US$2.3 billion. * * * As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba1 rating to the US$200 million Perpetual Non-Cumulative Preference Shares issued by Aspen Insurance Holdings Limited, the existing perpetual "PIERS" of which were rated Ba1 by Moody's. CRIMEA INC: Proofs of Claim Must be Filed by Aug. 22 ---------------------------------------------------- Crimea Inc.’s creditors are given until Aug. 22, 2007, to prove their claims to Mr. Elvon Clarke, 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. Crimea Inc.’s shareholders agreed on July 2, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Mr. Elvon Clarke 20 Victoria Street Hamilton, Bermuda HM11 CRIMEA INC: Will Hold Final Shareholders Meeting on Aug. 22 ----------------------------------------------------------- Crimea Inc. will hold its final shareholders meeting on Aug. 22, 2007, at 10:00 a.m., at: 20 Victoria Street Hamilton, Bermuda HM11 These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Mr. Elvon Clarke 20 Victoria Street Hamilton, Bermuda HM11 =========== B R A Z I L =========== BANCO SANTANDER: S&P Affirms BB+/B Counterparty Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+/B' counterparty credit rating on Banco Santander Banespa S.A. The outlook is positive. "The ratings on Santander Banespa are supported by its improved stand-alone profile; the bank's strong franchise in the South/Southeast regions of Brazil; and the adequate rofitability and increasing revenues from its commercial operation, reflecting the successful implementation of its business model," said Standard & Poor's credit analyst Tamara Berenholc. It also incorporates the benefits of belonging to Banco Santander Central Hispano S.A. (BSCH; AA/Stable/A-1+), leveraging on the parent's retail bank know-how and the synergies derived from such ownership. These factors are partially mitigated by the exposure to the economic and industry risk of the local financial system. The bank is also challenged to continue boosting revenues from clients to dilute the technological, advertising, and commercial investments, and improve the efficiency ratio; and to continue increasing its retail market share in the Brazilian competitive banking industry. Santander Banespa is the fifth-largest private bank in Brazil in terms of assets. Despite holding a relatively lower market share in terms of the system's loans and deposits, the bank has a larger market presence in the South and Southeast regions of Brazil, where it has 12% share and the third-largest branch network. The bank's business profile has consistently improved due to better product coverage, strong commercialization efforts, and a focus on segmentation of the client base. As a consequence, the bank has been able to improve its revenue mix toward higher commercial and clientele results, and has gained market share in retail funds, deposits, and total lending. In our opinion, Santander Banespa's key success factors, which include a competitive product base and loyal clientele, provide room to further expand its retail franchise and gather the benefits of cross selling. Being part of BSCH, Santander Banespa also benefits from the technology, culture, management skills, and commercial know-how of its parent, besides the potential global synergy for the wholesale operation. The positive outlook reflects our perception of improvements in industry and economic risks for the banking industry in Brazil. The bank's rating will be automatically raised if there is a similar action on the sovereign foreign currency rating. A differentiation of the bank's rating from the sovereign foreign currency rating would depend on Santander Banespa substantially enhancing its market share in the retail industry, and thus achieving greater stability in funding access and results in a stressful economic scenario. The Santander Banespa group is comprised of Santander Brasil, Santander, Santander Meridional and Banespa, and is a subsidiary of Spanish financial group Grupo Santander. Santander Banespa is the biggest foreign-owned bank in Brazil and the fourth largest on the overall ranking for private banks. DELPHI CORP: Plans Opening of New Diesel Plant in Romania --------------------------------------------------------- In a move to service its growing customer base, Delphi Corporation is planning to open a new diesel engine management system components plant. The facility, to be operated by Delphi Powertrain Systems division, is scheduled to receive equipment in late 2007. The site is in Iasi, in north-east Romania. The initial location is a pre-existing industrial site which will begin the first phase of manufacturing operations before year-end. Delphi has well-developed expansion plans that call for several additional phases of new investment to launch products specified in already awarded new business contracts. Each of these future multi-million dollar phases of investment are for new building, machinery and equipment and will support attainment of long-range planned capacity in Iasi. Subject to Delphi's board of directors supporting future phases of investment, Delphi's total presence in Iasi could reach over 1,000 workers and could accumulate to exceed EUR100 million investment. "We have recently won a large number of new programmes and new customers, especially for diesel engine management systems that are Euro V compatible and we need to support our customers who are rapidly expanding in Central and Eastern Europe. We require additional plant capacity to support our continued growth," Jose Avila, general manager for Delphi Diesel Systems, said. "Delphi is a key player in the global diesel market and this new site will strengthen our position by providing an efficient new manufacturing base nearer to our customers." With this planned site, Delphi will strengthen its extensive global diesel manufacturing footprint. The group operates 13 sites dedicated to the diesel engine management system activity globally and has a presence in Brazil, Korea, India, Turkey, Mexico, France, Spain and the United Kingdom and now intends to add Romania to the list of global locations. As a dedicated diesel site, the Iasi plant would produce high-precision diesel fuel injection components, mainly pumps and injectors for common rail systems, and will serve various customers around the world. Recruitment to fill jobs at the initial facility has already started. According to Michel Stanciu, director of manufacturing strategy & engineering for Delphi Diesel Systems, workers at the plant will receive important training. "Iasi has a deep pool of well-qualified employees from which we will select," Mr. Stanciu said. "To augment those talents, each new employee will go through an extensive training programme." Mr. Stanciu, a native Romanian, was integral in bringing the plant to Romania and expects mutual benefits to be realized by the company and the country through the localization of the plant. "We look forward to a continued strong partnership with government officials, economic development agencies and local educational institutions to finalize our long-range investment and capacity expansion plans," Mr. Stanciu said. Precision Required from Diesel Plants The manufacturing of diesel fuel injection systems requires an extremely skilled workforce. The common rail system working at a pressure up to 1800 bar requires a high-precision machining down to a few microns and the assembly operation needs to be done in a very strictly controlled clean room. Delphi's Multec Common Rail System The Delphi Multec Common Rail Diesel Fuel Injection System is widely used throughout the industry. It is a high-value, cost-competitive servo-hydraulic system that is not only high performance but simple and robust. In addition, Delphi's Multec Common Rail injection is easily packaged, and takes up less space than competing systems. Many of the world's top automakers have chosen this Delphi system over all others. Customers include familiar names such as: Ford PAG, Hyundai, Kia, PSA Peugeot Citroen, Renault-Nissan, Ssangyong, Suzuki. Strong expertise Delphi engineers have extraordinary expertise in air, fuel and exhaust management systems, because they work with all these technologies in the Delphi portfolio. Delphi engineers can easily orchestrate them to work in optimum harmony. This flexible, balanced expertise allows them to design the best fuel injection system solutions to meet car makers' specialized needs. Delphi Powertrain Systems Delphi's powertrain technologies provide robust solutions to complex challenges, helping its customers develop vehicles that offer outstanding performance, refinement and emissions. They include multi point injection and direct injection gasoline systems, common rail, rotary pump diesel systems in a range of capacities and, for heavy duty diesel applications, Electronic Unit Injectors and Electronic Unit Pumps. All are complemented by innovative fuel handling, evaporative emissions, engine and transmission electronic controls, valve train, and after-treatment solutions. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil, and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. FIAT SPA: Buys Back 2.09 Million Ordinary Shares ------------------------------------------------ Within the frame of the buy back program announced on April 5, 2007, Fiat S.p.A. purchased 2.085 million Fiat ordinary shares at the average price of EUR21.999 including fees on July 25. From the start of the buy back program on April 24, the total number of shares purchased by Fiat amounts to 13.166 million for a total invested amount of EUR277.2 million. Share Repurchase Program On April 5, Fiat stockholders authorized the purchase and disposition of own shares. The program, aimed at servicing stock options plans and at the investment of liquidity, refers to a maximum number of own shares of the three classes of stock which shall not exceed 10% of the capital stock and a maximum aggregate amount of EUR1.4 billion and will be carried out on the regulated market as: -- it will become effective on April 10, 2007, and end on Dec. 31, 2007, or once the maximum amount of EUR1.4 billion or a number of shares equal to 10% of the capital stock is reached; -- the maximum purchase price will not exceed 10% of the reference price reported on the Stock Exchange on the day before the purchase is made; -- the maximum number of shares purchased daily will not exceed 20% of the total daily trading volume for each class of shares. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of June 19, 2007, Fiat S.p.A. carries Moody's Long-Term Corporate Family Rating of Ba2 and Probability of Default Rating at Ba2 with Outlook Positive. Standard & Poor's give Long-Term Foreign and Local Issuer Credit Ratings of BB+ for Fiat. Its Short-term Foreign and Local Issuer Credit Ratings are at B with Positive Outlook. Dominion Bond Rating Service gives Fiat a Long-term Issuer Rating of BB with Positive Outlook. GENERAL MOTORS: Will Cut Jobs & Reduce Production in Michigan ------------------------------------------------------------- General Motors Corp. plans to cut production at its Pontiac, Michigan, assembly plant from 54.5 vehicles per hour to 45 and lay off an undisclosed number of workers beginning September, The Associated Press reports. The Pontiac plant, which mostly makes heavy-duty GMC Sierra and Chevrolet Silverado pickups, employs about 2,800 hourly workers, including 300 temporary employees hired to replace those who accepted buyout and early retirement offers, AP states. "There's been a decline in the full-sized pickup market. We've seen a decline in the heavy duty side, which prompted the action we took," AP quotes GM spokesman Tom Wickham as saying. GM would lay off temporary workers first and they would receive no benefits, Mr. Wickham said, AP notes. If it's necessary to lay off full-time workers, they would receive benefits or would have the chance to go to other GM plants nearby if there are openings. Other plants will not be affected by the changes, he added. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries, including Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative, according to Moody's. NOVELIS INC: Will Invest US$9 Million in New York Plant ------------------------------------------------------- Novelis Inc. is investing approximately US$9 Million in its plant Oswego, New York, to increase production of aluminum sheet ingot, the starter stock for the rolling process. The investment will include the installation of an aluminum melting furnace with industry-leading technology that will provide increased energy efficiency and reduced cycle time. The new ingot production will be brought on line within 12 months. This investment is part of Novelis' ongoing program to secure long-term, low-cost sheet ingot supply for its operations. "This announcement follows the recent acquisition of Novelis by Hindalco Industries Limited and demonstrates our new owner's strategic commitment to our business," said Kevin Greenawalt, President of Novelis North America. "Our customers will benefit as we become ever more flexible in meeting their requirements for high-value aluminum products, such as those produced with our Novelis Fusion(TM) technology." Buddy Stemple, Vice President, Specialty Products for Novelis North America, said: "The investment will unlock capacity in our existing ingot casting operations, and will improve our ability to switch between alloy types and manage our product mix. It will reduce production bottlenecks and help accelerate delivery times to our customers." The Oswego plant is Novelis' largest wholly owned aluminum fabrication facility. Equipped for aluminum recycling and remelting, ingot casting, and hot and cold rolling, the plant generates premium aluminum sheet products used by the automotive, appliance, beverage can, building and construction, commercial transportation and industrial markets. The plant currently employs approximately 700 people. 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. PETROLEO BRASILEIRO: Will Charge Thermo Plant Operators Extra ------------------------------------------------------------- Brazilian state-owned oil firm Petroleo Brasileiro SA said in a statement that it will charge some thermo plant operators an extra of US$1.90 per one million British thermal unit to import liquefied natural gas. Business News Americas relates that the fee will be implemented on plants selling power in auctions for delivery in 2010. Liquefied natural gas imports are uncertain, while thermo needs are constant, BNamericas notes, citing Petroleo Brasileiro. The fee replaces the penalties the firm would face if it fails to supply the plants. As reported in the Troubled Company Reporter-Latin America on July 27, 2007, Agencia Nacional director Nelson Martins said that the agency determined that Petroleo Brasileiro must pay BRL1.30 billion for its special participation government contribution after the firm miscalculated the amount to be paid. According to Mr. Martins, the payment refers to Petroleo Brasileiro's 1998 to 2002 operations at the Marlim field in the Campos basin. The firm made incorrect deductions to the amount it should have paid back then. Mr. Martins said that Agencia Nacional will charge interest on the BRL1.30-billion amount Petroleo Brasileiro must pay to the mines and energy and environment ministries and Brazilian cities and states close to the oil and gas blocks. Petroleo Brasileiro said it will appeal the hydrocarbons regulator Agencia Nacional do Petroleo's BRL1.30-billion special participations fines for the firm's activities in the Campos basin's Marlim field. Petroleo Brasileiro told BNamericas that it will give preferred rights to thermo plants. "The company is committed to deliver the gas whenever the plants need it." Petroleo Brasileiro said it has been negotiating the sale of natural gas with several suppliers for delivery in 2010, BNamericas states. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: On Track To Invest Over US$10B This Year ------------------------------------------------------------- Venezuelan state-owned oil firm Petroleos de Venezuela SA said in a statement that it is "on track" to invest over US$10 billion throughout 2007, an increase of nearly 70% from the US$5.9 billion it invested last year. Business News Americas relates that "the increased investment is in line with the Plan Siembra Petrolera goal of producing 5.8 million barrels a day by 2012." Petroleos de Venezuela told BNamericas that it produced some 3.3 million barrels per day in June 2007. However, OPEC said the firm's output that month was 2.36 million barrels a day. Petroleos de Venezuela disclosed this month that it will spend about US$3.5 billion on new drilling rigs, BNamericas notes. Reports say it will launch an international tender for the acquisition of the rigs. Petroleos de Venezuela said in a statement that it has transferred US$15.3 billion to the Venezuelan state. The amount accounts for 79% of the total US$19.3 billion called for in this year's budget. 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. TAM SA: Pays Crash Victim's Family ---------------------------------- Reporters in Brazil say that TAM has paid an undisclosed amount to the family of one of the victims of the July 17 crash that killed 200 people. Business News Americas relates that "Unibanco AIG provided TAM with aircraft hull and civil liability coverage for up to US$1.5 billion." According to BNamericas TAM paid some BRL35 million in premiums in 2006 and BRL40 million in 2005. The report says that Unibanco and engineering and construction consortium Via Amarela paid almost BRL40 million in claims from the Jan. 12, 2007 collapse of construction works on the Sao Paulo subway's line 4. The plane crash killed seven persons and left at least 132 people homeless. Via Amarela had a BRL1.30-billion, all-risks policy with Unibanco for the works, BNamericas states. TAM SA -- http://www.tam.com.br/-- operates regular flights to 47 destinations throughout Brazil. It serves 72 different cities in the domestic market through regional alliances. Additionally, it maintains code-share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. The program has over 3.3 million subscribers and has awarded more than 3.6 million tickets. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2007, Fitch affirmed the 'BB' foreign currency and local currency Issuer Default Ratings of TAM S.A. Fitch has also affirmed the 'BB' rating of its US$300 million of senior unsecured notes due 2017 as well as the company's 'A+(bra)' national scale rating and for its first debentures issuance (BRL500 million). Fitch said the rating outlook was stable. WESTERN UNIION: Launches Operations at 587 Locations in Mexico -------------------------------------------------------------- The Western Union Company and retail and financial services firm Grupo Elektra reported that 587 Farmacias Benavides locations throughout Mexico are offering Western Union consumer money-transfer services. Grupo Elektra has offered Western Union services since 1993. The company currently offers Western Union services through 2,000 Agent locations in Mexico, including Salinas y Rocha, Elektra and Banco Azteca. Farmacias Benavides, a well-recognized and established pharmacy chain in Mexico, offers consumers the option to receive Western Union consumer money transfers at 587 locations in 16 states and 110 cities throughout Mexico. Most Farmacias Benavides locations are open 12 hours a day, seven days per week, and some are open 24 hours. In addition, the chain plans to roll out the money transfer services of Western Union subsidiaries Orlandi Valuta and Vigo within a year. "We remain committed to offering additional locations to our consumers in Mexico, and this agreement extends our in-country reach while strengthening our unmatched global Agent network," said Western Union Latin America and the Caribbean Executive Vice President Liz Alicea-Velez. With these 587 locations, the total number of Mexico Agent locations offering Western Union, Orlandi Valuta and Vigo services is approximately 13,700. "Farmacias Benavides is a trusted brand name with reach primarily throughout northern Mexico," Grupo Elektra Chief Executive Officer Carlos Septien. "By teaming this pharmacy chain with another trusted brand name -– Western Union -– more and more consumers in Mexico have access to the financial services they need when they want, where they want." About Grupo Elektra Grupo Elektra is Latin America’s specialty retailer, consumer finance and banking services company. Grupo Elektra sells retail goods and services through its Elektra and Salinas y Rocha stores and sells and markets its consumer finance, banking and financial products and services through more than 1,700 Banco Azteca branches. The group operates in Mexico, Guatemala, Honduras, Peru, El Salvador, Panama and Argentina. About Western Union The Western Union Company (NYSE: WU) -- http://www.westernunion.com/-- provides a range of money transfer and bill payment services worldwide, including Belgium, Brazil and the Philippines. It offers various consumer-to-consumer money transfer services, primarily through a network of third-party agents using multi-currency and real-time money transfer processing systems. As reported in the Troubled Company Reporter-Latin America on June 7, 2007, the Western Union reported financial results for the first quarter of 2007. It had total assets of US$5.3 billion, total liabilities of US$5.5 billion, and total stockholders’ deficit of US$172.4 million as of March 31, 2007. In the first quarter 2007, total revenues were US$1.1 billion, as compared with US$1 billion in the first quarter 2006. Revenue growth in the first quarter was slightly slower than expected as a result of the ongoing challenges within the U.S. domestic, Mexico and U.S. outbound markets as well as lower revenue from westernunion.com, the company’s Internet service, in the U.S., where Western Union and card issuing banks implemented additional controls to help protect themselves and consumers from credit and debit card fraud. First quarter operating income of US$305 million and the 27% operating income margin included US$15 million of incremental independent public company expenses compared to the first quarter of 2006. Net income of US$193 million for the first quarter 2007 included US$48 million in incremental pre-tax interest expense compared to the first quarter of 2006. The effective tax rate for the quarter was about 31.5%. Net income for the first quarter 2006 was US$219.8 million. =========================== C A Y M A N I S L A N D S =========================== ANTHRACITE BALANCED: Proofs of Claim Filing Is Until Aug. 24 ------------------------------------------------------------- Anthracite Balanced Company (11) Ltd.’s creditors are given until Aug. 24, 2007, to prove their claims to Scott Aitken and Connan Hill, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Anthracite Balanced shareholders agreed on July 27, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Scott Aitken Connan Hill P.O. Box 1109 George Town, Grand Cayman Cayman Islands Tel: (345) 949-7755 Fax: (345) 949-7634 ASIAN FUNDING: Will Hold Last Shareholders Meeting on Sept. 10 ------------------------------------------------------------- Asian Funding For Tags will hold its final shareholders meeting on Sept. 10, 2007, at: Queensgate 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) 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: Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands APET I: Will Hold Last Shareholders Meeting on Aug. 23 ------------------------------------------------------ Apet I Investment Holding will hold its final shareholders meeting on Aug. 23, 2007, at: Fourth Floor, Citrus Grove P.O. Box 1787 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) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Stuart Sybersma Attention: Mervin Solas Deloitte P.O. Box 1787 George Town, Grand Cayman Cayman Islands Tel: (345) 949-7500 Fax: (345) 949-8258 BEAUTY POINT: Sets Last Shareholders Meeting for Aug. 23 -------------------------------------------------------- Beauty Point Investments Ltd. will hold its final shareholders meeting on Aug. 23, 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 CHESHIRE FINANCE: Sets Last Shareholders Meeting for Sept. 20 ------------------------------------------------------------ Cheshire Finance Ltd. will hold its final shareholders meeting on Sept. 20, 2007, at: Queensgate 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) 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: Hugh Thompson Joshua Grant Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands CORFE HOLDINGS: Will Hold Last Shareholders Meeting on Aug. 23 -------------------------------------------------------------- Corfe Holdings Ltd. will hold its final shareholders meeting on Aug. 23, 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 CROSS CREDIT: Proofs of Claim Filing Is Until Aug. 24 ----------------------------------------------------- Cross Credit (General Partner) Ltd.’s creditors are given until Aug. 24, 2007, to prove their claims to Linburgh Martin and John Sutlic, 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. Cross Credit's shareholders agreed on June 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Linburgh Martin Attention: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034 George Town, Grand Cayman Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 CROSS CREDIT FUND: Proofs of Claim Must be Filed by Aug. 24 ----------------------------------------------------------- Cross Credit Fund Ltd.’s creditors are given until Aug. 24, 2007, to prove their claims to Linburgh Martin and John Sutlic, 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. Cross Credit's shareholders agreed on June 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Linburgh Martin Attention: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034 George Town, Grand Cayman Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 DEMIFLOR LTD: Will Hold Last Shareholders Meeting on Aug. 23 ------------------------------------------------------------ Demiflor Ltd. will hold its final shareholders meeting on Aug. 23, 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 GALAHAD FUND: Sets Final Shareholders Meeting for Aug. 23 --------------------------------------------------------- Galahad Fund Ltd. will hold its final shareholders meeting on Aug. 23, 2007, at 10:30 a.m., at: Fourth Floor, Citrus Grove P.O. Box 1787 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) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: STUART SYBERSMA Attention: Mervin Solas Deloitte P.O. Box 1787 George Town, Grand Cayman Cayman Islands Tel: (345) 949-7500 Fax: (345) 949-8258 GARDEN INVESTMENTS: Sets Last Shareholders Meeting for Aug. 23 -------------------------------------------------------------- Garden Investments Ltd. will hold its final shareholders meeting on Aug. 23, 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 HFT REAL: Will Hold Final Shareholders Meeting on Sept. 20 ---------------------------------------------------------- HFT Real Estate CDO 2006-III Ltd. will hold its final shareholders meeting on Sept. 20, 2007, at: Queensgate 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) 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: Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands MB FUNDING: Sets Last Shareholders Meeting for Aug. 23 ------------------------------------------------------ MB Funding will hold its final shareholders meeting on Aug. 23, 2007, at 10:30 a.m., at: Strathvale House North Church Street P.O. Box 1109 Grand Cayman KY1-1102 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) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Cereita Lawrence Scott Aitken Telephone: 345-914-7510 Facsimile: 345-949-7634 P.O. Box 1109 Grand Cayman KY1-1102 Cayman Islands MECKLENBERGH INVESTMENT: Proofs of Claim Filing Ends on Aug. 20 --------------------------------------------------------------- Mecklenbergh Investment & Finance Company Ltd.’s creditors are given until Aug. 20, 2007, to prove their claims to Cereita Lawrence and Scott Aitken, 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. Mecklenbergh Investment’s shareholders agreed on June 25, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Cereita Lawrence Scott Aitken Attention: Isabel Mason P.O. Box 1109 Grand Cayman KY-1102 Cayman Islands Tel: 345 949-7755 Fax: 345 949-7634 MORGAN STANLEY: Will Hold Final Shareholders Meeting on Sept. 20 ---------------------------------------------------------------- Morgan Stanley Alternatives Managed Futures Ltd. will hold its final shareholders meeting on Sept. 20, 2007, at: 3rd Floor, Piccadilly Center Elgin Avenue, 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: Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands MTB FINANCE: Proofs of Claim Filing Is Until Aug. 24 ---------------------------------------------------- MTB Finance (Cayman) Co. Ltd.’s creditors are given until Aug. 24, 2007, to prove their claims to Toshinao Sakai, 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. MTB Finance's shareholders agreed on July 2, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Toshinao Sakai c/o Messrs. Maples and Calder P.O. Box 309 Ugland House, South Church Street George Town, Grand Cayman Cayman Islands NF HOLDING: Proofs of Claim Must be Filed by Aug. 24 ---------------------------------------------------- NF Holding Corp.’s creditors are given until Aug. 24, 2007, to prove their claims to Shinji Arakawa, 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. NF Holding's shareholders agreed on June 30, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Shinji Arakawa Kokusai BLDG 9F, 1-1 Marunouchi 3-chome Chiyoda-ku, Tokyo PETROCHEMICAL INVESTMENTS: Last Shareholders Meeting on Aug. 23 --------------------------------------------------------------- Petrochemical Investments Ltd. will hold its final shareholders meeting on Aug. 23, 2007, at 10:00 a.m., at: Fourth Floor, Citrus Grove P.O. Box 1787 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) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: STUART SYBERSMA Attention: Mervin Solas Deloitte P.O. Box 1787 George Town, Grand Cayman Cayman Islands Tel: (345) 949-7500 Fax: (345) 949-8258 STONE CREEK: Will Hold Last Shareholders Meeting on Aug. 23 ----------------------------------------------------------- Stone Creek Ltd. will hold its final shareholders meeting on Aug. 23, 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 URANUS LTD: Sets Last Shareholders Meeting for Aug. 23 ------------------------------------------------------ Uranus Ltd. will hold its final shareholders meeting on Aug. 23, 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 PARMALAT SPA: NY Court Grants Final Okay to U$50 Mln Settlement --------------------------------------------------------------- The Honorable Lewis Kaplan of the U.S. District Court for the Southern District of New York gave final approval to a proposed US$50 million settlement by: -- Banca Nazionale del Lavoro S.p.A. (BNL), -- Credit Suisse Group, -- Credit Suisse, -- Credit Suisse International, and -- Credit Suisse Securities (Europe) Ltd. in the matter, "In re Parmalat Securities Litigation, Case No. 04-0030 (LAK)," Reuters reports. During a July 19 brief hearing, Judge Kaplan approved the settlement, under which Credit Suisse and Italy's bank BNL will each pay US$25 million. BNL of Italy is now owned by France's BNP Paribas. The judge also approved a reimbursement of US$6 million to the plaintiff's attorneys. The lawsuit alleged that Parmalat and numerous other defendants participated in a fraudulent financial scheme, resulting in the understatement of Parmalat's debt by nearly US$10 billion and the overstatement of its net assets by over US$16 billion. Parmalat ultimately filed for bankruptcy, and the value of its stock and bonds dramatically declined. Though some defendants agreed to settle the case, it will still proceed against Parmalat S.p.A. (the successor to Parmalat Finanziaria S.p.A.), financial institutions, two auditing firms, and certain individuals. In particular, the defendants not settling, against whom claims are still pending in the class action, are: -- Bank of America Corp., -- Bank of America, N.A., -- Banc of America Securities Ltd., -- Citigroup Inc., -- Citibank N.A., -- Eureka Securitisation plc, -- Deloitte Touche Tohmatsu, -- Deloitte & Touche USA LLP, -- Grant Thornton International, -- Grant Thornton LLP, -- Pavia e Ansaldo, -- Parmalat S.p.A., and -- numerous individuals. In May 2004, the court appointed the law firms of Cohen, Milstein, Hausfeld & Toll, P.L.L.C, of Washington, D.C., Grant & Eisenhofer, P.A., of Wilmington, Del., and Spector Roseman & Kodroff, P.C., of Philadelphia, Pa., to represent the plaintiffs in the case. These firms have been litigating this case since that time, and they negotiated the partial settlement. The settlement covers all investors, brokers, financial institutions, and other nominees who bought the common stock or bonds of Parmalat Finanziaria S.p.A. and its subsidiaries and affiliates from Jan. 5, 1999, through and including Dec. 18, 2003. 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. ========= C H I L E ========= BOSTON SCIENTIFIC: Mulling Sale of Fluid Management Business ------------------------------------------------------------ Boston Scientific Corporation has intended to explore the sale of its fluid management business as part of the company's ongoing review of its portfolio of assets. The Boston Scientific fluid management business, formerly North American Medical Instruments Corp., produces a range of products used to manage fluid and measure pressure during angiography and angioplasty procedures. A sale would be expected to include the business as well as the Company's facilities in Glens Falls, New York and Tullamore, Ireland. "As we have previously announced, we are conducting a comprehensive review of our non-strategic assets in an effort to focus resources on our core businesses and improve our financial strength," said Paul LaViolette, Chief Operating Officer of Boston Scientific. "One result of this review has been the initiation of a process to explore the sale of our fluid management business. This is a very strong business with market leadership, and we believe it has tremendous potential with the focused attention and resources of external ownership. We are in the early stages of discussions with several potential acquirers, and we expect the process to take a number of months." Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. * * * As reported in the TCR-Europe on July 26, 2007, Moody's Investors Service downgraded the credit ratings of Boston Scientific Corporation. The company's senior unsecured debt rating was downgraded to Ba2 from Baa3 and its short term debt rating was downgraded to Not Prime from Prime-3. At the same time, Moody's assigned a Ba1 Corporate Family Rating to the company. The rating outlook is negative. This concludes Moody's rating review that was initiated on May 9, 2007. COEUR D'ALENE: Names Stuart Mathews as Palmarejo Project Manager ---------------------------------------------------------------- Coeur d'Alene Mines Corporation has appointed Stuart Mathews, the Technical Director of Coeur Australia who has been assigned to the Company’s South American properties, as interim project manager for the Palmarejo project in Mexico. Mr. Mathews would be named General Manager at Palmarejo once the transaction is completed in the fourth quarter 2007. Mr. Mathews will direct the newly established Project Development Committee at Palmarejo, whose focus is to develop the Rosario deposit at the project utilizing open pit mining methods. The Project Development Committee will complete a pre-feasibility study by the end of August, which will include a combined open-pit and underground mine development scenario. "Stuart’s more than 20 years of experience and broad range of technical skills in exploration, mine geology, resource modeling and grade control methodology fit perfectly with our objectives in taking Palmarejo to the next level of development during this interim period," said Coeur D'Alene's Operations Vice President Richard Weston. "Stuart’s new role will allow him to make an easy transition to General Manager of the Palmarejo Project once the transaction is completed, and the mine moves toward production." Mr. Mathews, who has a Master’s Degree in Geology from the University of Canterbury, Christchurch, New Zealand, has worked in a number of senior geology, project development and management positions at major mines and mining projects throughout Australia, New Zealand, South America and Mexico. Coeur, Bolnisi Gold NL and Palmarejo Silver and Gold Corporation would begin mailing information to shareholders in September. All three companies’ shareholder meetings are expected to be held in October. Assuming timely completion of the required regulatory processes and receipt of the required shareholder and court approvals, the companies expect the transaction to be completed in the fourth quarter of 2007. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. =============== C O L O M B I A =============== DOLE FOOD: Secures SA 8000 Certification in Colombia ---------------------------------------------------- All of Dole Food Company, Inc.'s company-owned banana farms in Colombia have been certified to the Social Accountability International SA 8000 work place and human rights standard. The certification’s scope covers the cultivation, harvesting and packing of organic and conventional bananas in eight farms located in the Santa Marta area, Colombia. SA 8000, an internationally recognized standard based on the ILO conventions, the United Nations' Universal Declaration of Human Rights and the Convention on Rights of the Child, focuses on child labor, forced labor, health and safety, freedom of association and the right to collective bargaining, discrimination, disciplinary practices, working hours, compensation and the implementation of an efficient management system. In 2000, Dole Food's then owned subsidiary, Pascual Hermanos, was the first agricultural company in the world to be certified to SA 8000. Subsequent to this certification, all Dole managed banana and pineapple plantations in the Philippines and Costa Rica have been certified to the SA 8000 standard. In addition, Dole Food’s Hua Hin cannery, located in Thailand, was certified in November 2006. In total, Dole Food has over 40,000 full-time, seasonal and temporary employees in its banana and pineapple operations covered by SA 8000 certifications. Dole is a Signatory Member of Social Accountability International and serves on its Advisory Board. Dole Food President and Chief Executive Officer David A. DeLorenzo stated, "This new certification emphasizes the company’s on-going commitment to provide a safe, healthy working environment while complying with all labor aspects addressed in SA 8000. It also illustrates our employees’ high ethical standards and their unfailing support to Dole’s Corporate Social Responsibility programs, worldwide." 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+'. INDUSTRIAS METALURGICAS: S&P Assigns B Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Argentina-based Industrias Metalurgicas Pescarmona S.A.I.C. y F.. The outlook is stable. At the same time, S&P assigned its 'B' rating to the company's upcoming issuance for up to US$250 million in 10-year amortizing notes. Proceeds from the notes are expected to be used mainly to refinance a great portion of the company's outstanding debt (US$310 million as of April 30, 2007), and to a lesser extent the company's capital expenditures and working capital needs for 2007. "The rating on IMPSA reflects the company's relatively high leverage and its exposure to the volatility inherent in the capital goods market and to the fluctuations of the economic activity in the main countries where IMPSA operates," said Standard & Poor's credit analyst Ezequiel Gomez. "The rating also incorporates the significant concentration of the company's backlog in a small number of large-scale projects." Those factors are partially mitigated by the expected improvement in IMPSA's financial profile as a result of the company's sizable backlog and significant extension of its debt maturity profile, once the refinancing process is closed. IMPSA's adequate competitive position in the hydropower generation turbines business and the crane manufacturing industry, as well as its good geographic diversification, are also reflected in the ratings. IMPSA is engaged in providing equipment mainly for hydroelectric power generation and other renewable energies such as wind power projects. The company is also engaged in manufacturing and sale of port crane systems, as well as wire harnesses in MERCOSUR, and also offers waste collection and disposal services in Argentina and Colombia. The stable outlook reflects our expectations regarding the appropriate completion of IMPSA's current main projects underway, which would contribute to rating stability, as well as the continuity of an adequate backlog from here onward. The ratings could be raised in case higher-than-expected growth is recorded in backlog and income, which would allow a significant improvement in credit metrics. The rating could be pressured, however, as long as difficulties and significant delays appear in the execution of projects, which could lead to a substantial reduction in revenues. Pescarmona Group of Companies is a multinational group with presence in different business areas such as hydro electrical power generation and equipment, wind power generation and equipment, port systems, automobile parts, control systems, environmental services and insurance, among others. PGC employs more than 6,000 people and operates in 27 countries in the five continents. * COLOMBIA: Names Cesar Prado Villegas as Superfinanciera Chief --------------------------------------------------------------- The Colombian presidential Web site reports that Cesar Prado Villegas has been appointed as the new head of the country's financial regulator Superfinanciera. Business News Americas relates that Mr. Villegas will succeed Augusto Acosta Torres, who left the post earlier in July. Mr. Villegal is also the chief of the financial regulation at Colombia's finance ministry, according to the presidential Web site. As reported in the Troubled Company Reporter-Latin America on June 15, 2007, Standard & Poor's Ratings Services assigned its 'BB+' long-term senior unsecured rating to the Republic of Colombia's proposed 2027 Global Titulos de Tesoreria bond, a bond denominated in Colombian pesos but payable in US dollars. ============= E C U A D O R ============= PETROECUADOR: Inks Strategic Alliance with Flopec ------------------------------------------------- Ecuadorian state-run oil firm Petroecuador has signed a strategic alliance with state hydrocarbons maritime transporter Flopec for the construction of a liquefied petroleum gas storage and transport project, according to a report posted on Ecuador's presidential Web site. Business News Americas relates that Petroecuador declared in June that the tender for the construction of the project was void. According to BNamericas, Dutch trader Trafigura Beheer supplies the gas from a barge anchored in the Guayaquil gulf. The firm's contract expires this November. BNamericas notes that under the five-year renewable alliance, Flopec will construct and run an onshore maritime terminal and storage facility in Monteverde. The Monteverde terminal will be able to receive vessels with a deadweight exceeding 40,000 tons. "Cryogenic and operative storage spheres at Monteverde" will be able to store 45,000 tones and 4,500 tons, respectively. Meanwhile, Petroecuador will build and operate the La Libertad-Pascuales pipeline and a storage terminal in Pascuales, BNamericas says. "The 10-inch pipeline will run 146 kilometers from Monteverde to Pascuales, where the storage terminal will boast spheres with capacity of 6,000 tons." The report says that Petroecuador initially said that the project would cost some US$98 million, with works taking 18 months. The Ecuadorian government told BNamericas that the project will increase the nation's liquefied petroleum gas storage efficiency and safety. It will also lessen operating costs over US$30 million a year. Petroecuador had launched earlier this year a call for bids to supply liquefied petroleum gas for two years when Trafigura's contract expires. The winner will transport the fuel from the barge to the Tres Bocas terminal. The winner will supply 1.6 million tons -- plus or minus 20% -- at Petroecuador's choice with monthly deliveries. Deadline for the presentation of bids is on July 30, BNamericas states. 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. ================= G U A T E M A L A ================= IMAX CORP: March 31 Balance Sheet Upside-Down by US$58.7 Million ---------------------------------------------------------------- IMAX Corporation completed its restatement of financial results covering 2002 through 2005, and will file its Form 10-K for fiscal 2006 ended December 31, and Form 10-Q for the first quarter of fiscal 2007 ended March 31. At March 31, 2007, the company’s balance sheet showed total assets of US$217.9 million, total liabilities of US$276.6 million, and total stockholders’ deficit of US$58.7 million. At Dec. 31, 2006, the company had total assets of US$227 million, total liabilities of US$279.2 million, and total stockholders’ deficit of US$52.1 million. Financial Results The company recorded a net loss of US$4.9 million for the first quarter of fiscal 2007, compared to a restated net loss of US$3.7 million for the first quarter of fiscal 2006. Net loss for the fiscal year 2006 was US$16.9 million, compared to a net income of US$7.8 million for the fiscal year 2005. For the three months ended March 31, 2007, the company's total revenues were US$27.2 million, as compared to US$23.3 million reported for the prior year period. Systems revenue was US$13.1 million versus US$12.8 million in the prior year period. The company recognized revenue on 5 theatre systems which qualified as either sales or sales-type leases in the first quarter of 2007, compared to 5 in 2006. For the first quarter of 2007, film revenues were US$9.1 million, as compared to US$6 million in the first quarter of 2006. This included IMAX DMR(TM) revenues of US$4.6 million, compared to US$1.1 million in 2006. Theatre operations revenue was US$4.5 million in the first quarter of 2007, compared to US$3.7 million in the first quarter of 2006. The company's cash and short term investments position was US$27.4 million as of March 31, 2007, compared to US$27.2 million as of Dec. 31, 2006. For the year ended Dec. 31, 2006, the company's total revenues were US$129.3 million, as compared to US$135.3 million reported for the prior year. Systems revenue was US$72.1 million versus US$88.6 million in the prior year, a decrease due principally to a reduction in settlement revenue for 2006. The company recognized revenue on 30 theatre systems which qualified as either sales or sales-type leases in fiscal 2006, versus 30 in 2005, as restated. For fiscal 2006, film revenues were US$36.3 million, as compared to US$26 million in fiscal 2005. This included IMAX DMR revenues of US$14.6 million, compared to US$8.9 million in 2005, an increase of 65%. Theatre operations revenue decreased to US$16.9 million in 2006 from US$17.5 million in 2005. Other revenue was US$4 million in fiscal 2006, compared to US$3.2 million in fiscal 2005. During the fourth quarter of fiscal 2006, the company recorded a write-down of US$3.2 million related primarily to inventories, property, plant and equipment and accounts receivable. It also recorded a deferred tax valuation allowance of US$6.2 million, which equates to approximately US$0.15 per share, during the fourth quarter of fiscal 2006. This tax write down relates to the company's current assessment that the ultimate utilization of certain tax assets previously recorded on the balance sheet may not be realized within a two-year period. A full-text copy of the company’s first quarter 2007 report is available for free at http://ResearchArchives.com/t/s?21bc A full-text copy of the company’s fiscal 2007 report is available for free at http://ResearchArchives.com/t/s?21bd Management’s Comments IMAX Co-Chief Executive Officers Richard L. Gelfond and Bradley J. Wechsler stated, "We are pleased to complete our restatement and [file] our 10-K and 10-Q [on July 20, 2007]. In recent months we have been working very closely with the regulators, our auditors, counsel, Audit Committee and Board to manage this process, and are happy to be moving ahead unencumbered by the overhang of delayed filings. Most recently, we carefully evaluated our accounting practices in light of comments received from the staffs of the U.S. Securities and Exchange Commission and Ontario Securities Commission, and, during the course of our interaction with these regulators, decided that we should revise our accounting policy as it relates to revenue recognition of theatre systems. The SEC and OSC inquiries remain ongoing. As for our performance to date in 2007, we are pleased to have had 19 signings completed in the first half of the year. In addition, our joint venture initiative is being positively received by exhibitors due principally to the strength of our film slate and the strong financial performance of the JV's that have been installed to date. While the Company navigated several challenges in fiscal 2006, we believe IMAX is now well positioned to expand our worldwide network and generate greater recurring revenues. Many of the events that impacted the Company in fiscal 2006 are now behind us, and several compelling growth opportunities lie ahead." Joint Venture In 2007 to date, IMAX has signed joint venture agreements for five theatres: a two-theatre joint venture agreement with Regal Cinemas in the first quarter and three-theatre deal with Muvico Theaters in the second quarter. Three of those five theatres have since opened and have experienced strong early results, and numerous discussions are ongoing both domestically and abroad. During the first quarter, the company signed agreements for 13 IMAX(R) theatre systems, two of which were joint venture arrangements and three of which were subject to certain conditions. The company recognized revenue on four theatre systems in the first quarter and recognized one additional sale of an existing system. The company signed agreements for six theatre systems in the second quarter of fiscal 2007. "We are delighted with the ongoing strength of our film slate, which has now featured five consecutive well-received films: Happy Feet, Night at the Museum, 300, Spider-Man 3 and last week's release of Harry Potter and the Order of the Phoenix, with the finale in unparalleled IMAX(R) 3D. For the last several years, we have discussed the impact of the growing theatre network on our film and other recurring revenues. The performance of Harry Potter 5, as well as our other recent releases, is demonstrating the power of the expanded network. In its first week, Harry Potter and the Order of the Phoenix grossed US$11.6 million on 126 IMAX screens, compared to a first week of US$5.5 million on 75 IMAX screens for Harry Potter and the Goblet of Fire in 2005. These increasingly strong results not only impact our film revenues, but also our joint venture arrangements, owned & operated theatre performance and ongoing network royalties. We have said that the network economics as the number of global IMAX theatres expands are going to be increasingly impressive, and this is strong evidence that this is already happening. With our terrific film slate, the positive initial response to our joint venture initiative, and the company on track to introduce our new digital platform in late 2008 to mid-2009, we believe IMAX will see even greater enhanced network growth, improved network economics and increased recurring revenues going forward," concluded Messrs. Gelfond and Wechsler. 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. =========== M E X I C O =========== BAUSCH & LOMB: Asks Advanced Medical to Revise Buyout Bid --------------------------------------------------------- William H. Waltrip, the chairman of a special committee of the Board of Directors of Bausch & Lomb Incorporated, sent a letter Tuesday asking Advanced Medical Optics to revise its offer to buy Bausch & Lomb. In July 2007, Advanced Medical proposed to acquire 100% of the outstanding shares of Bausch & Lomb in a merger in which Bausch & Lomb's shareholders would receive, per share of Bausch & Lomb stock, US$45.00 in cash and US$30.00 in AMO stock. In his letter, Mr. Waltrip noted that "without further assurances as to value and certainty of consummation and, in particular, without concrete, credible evidence that holders of a significant percentage of the outstanding AMO shares would affirmatively support the proposed acquisition of Bausch & Lomb by AMO, the Special Committee and the Board intend to revoke AMO’s designation as an excluded party under [a merger agreement with] Warburg Pincus." Mr. Waltrip also emphasized that any proposed increase in the fee that would be payable by AMO in the event the transaction did not close due to failure to obtain AMO shareholder approval should be accompanied by an opinion of counsel that such fee is legally payable in light of the known opposition of at least one significant shareholder to the proposed transaction. Bausch & Lomb is expecting additional information from AMO no later than 12:00 p.m., Eastern time, today, July 27, 2007. Warburg Pincus Deal In May 2007, Bausch & Lomb entered into a definitive merger agreement with Warburg Pincus, pursuant to which Warburg Pincus agreed to acquire 100% of the outstanding shares of Bausch & Lomb for US$65.00 per share in cash. Pursuant to the Warburg Pincus merger agreement, AMO has been designated as an "excluded party," thus permitting Bausch & Lomb, subject to certain conditions, to continue negotiating with AMO with respect to the AMO proposal despite the end of the "go shop" period, so long as AMO remains an "excluded party." FTC Approval Reuters said in a July 10, 2007 report that affiliates of Warburg Pincus have received U.S. antitrust approval to acquire Bausch & Lomb. Citing the U.S. Federal Trade Commission, Reuters said antitrust authorities completed their review of the deal without taking any action to block it. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. In Europe, the company maintains operations in Austria, Germany, the Netherlands, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter on July 12, 2007, Standard & Poor's Ratings Services said its 'BB+' corporate credit and senior secured ratings on Bausch & Lomb Inc. remain on CreditWatch with negative implications in light of the July 5, 2007 acquisition bid by Advanced Medical Optics Inc. As reported in the Troubled Company Reporter on May 18, 2007, Moody's Investors Service stated that it will continue its review of Bausch & Lomb Incorporated's ratings for possible downgrade following the announcement that the company has entered into a definitive merger agreement with affiliates of Warburg Pincus. Ratings subject to review for possible downgrade include the company's Ba1 Corporate Family rating and Ba1 Probability of Default rating. In addition, the Warburg Pincus deal prompted Fitch to maintain its Negative Rating Watch on the company. Fitch also warned that the transaction would significantly increase leverage and likely result in a multiple-notch downgrade, including an Issuer Default Rating of no higher than 'BB-'. FORD MOTOR: Bidders for Units to Begin Due Diligence in August -------------------------------------------------------------- Ford Motor Company plans to let prospective bidders begin due diligence on its Jaguar and Land Rover brands next month, adding that it was pleased with the expressions of interest it had received in the brands, and in the “strength and quality” of the interested parties, as its efforts to sell the two brands continue to progress, The Financial Times reports. Ford CEO Alan Mulally told the Financial Times that the company remains "open to different options," including retaining a minority stake in both operations. He stressed, however, that he prefers a joint sale as both brands were so highly integrated. Mr. Mulally also confirmed that Ford was "conducting a strategic review of Volvo," the Swedish carmaker, which could be sold separately from the other luxury brands. The chief executive said Volvo had generated significant interest among potential bidders but Ford has not yet appointed financial advisers, although he expects that the company will reach a decision by year-end, FT notes. According to the report, bidders that include private equity groups Ripplewood Holdings, One Equity Partners, TPG Capital, and Cerberus Capital Management, as well as India's Tata Motors and Mahindra & Mahindra submitted indicative offers for Land Rover and Jaguar last week. Ford has hired Goldman Sachs, HSBC and Morgan Stanley to act as advisors. The carmaker's advisors have contacted at least six buyout groups that expressed preliminary interest in Ford's UK luxury marques. They are expected to get access to financial and operational data, FT states, citing people close to the sale as its source. Ford is expected to ask for binding offers by September, with the aim of completing the sale by the end of the year, FT suggests. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. FORD MOTOR: Earns US$750 Million Net Profit in Second Quarter ------------------------------------------------------------- Ford Motor Company reported a net profit of US$750 million for the second quarter of 2007, compared with a net loss of US$317 million in the second quarter of 2006. Ford's second-quarter revenue was US$44.2 billion, up from US$41.9 billion a year ago. The increase primarily reflected currency exchange, mix and net pricing improvements, partially offset by lower volume. Ford's second-quarter profit from continuing operations, excluding special items, was 13 cents per share, or US$258 million, compared with a loss of 6 cents per share, or US$118 million, in the same period a year ago. Special items -- which primarily reflected the sale of Aston Martin and the recognition of previously deferred gains on certain hedges at Jaguar and Land Rover -- increased pre-tax results by US$443 million in the second quarter. With regard to Jaguar and Land Rover, the company confirmed it is currently exploring in greater detail the potential sale of the combined business and is in discussions with selected parties who have expressed interest. The company also is conducting a strategic review of Volvo that likely will conclude prior to year-end. "We continue to focus on the four priorities of our plan -- restructuring the business to operate profitably, accelerating the development of new products that our customers want and value, funding our plan and improving our balance sheet, and working even more effectively together as one global Ford team, leveraging our assets," said Ford President and CEO Alan Mulally. "Our team is very encouraged by the significant progress we are making. We recognize the challenges that lie ahead and remain fully committed to delivering our plan." Automotive Sector On a pre-tax basis, worldwide Automotive sector profits in the second quarter were US$378 million. This compares with a pre-tax loss of US$716 million during the same period a year ago. The improvements were more than explained by favorable net pricing and cost reductions, partially offset by unfavorable currency exchange. Vehicle wholesales in the second quarter were 1,773,000, down from 1,806,000 a year ago. Worldwide Automotive revenue for the second quarter was US$40.1 billion, up from US$37.8 billion in the same period last year. The increase primarily reflected currency exchange, mix and net pricing improvements, partially offset by lower volume. Automotive gross cash, which includes cash and cash equivalents, net marketable securities, loaned securities and short-term VEBA assets, was US$37.4 billion at June 30, 2007, up from US$35.2 billion at the end of the first quarter. Ford North America: In the second quarter, Ford North America reported a pre-tax loss of US$279 million, compared with a pre-tax loss of US$789 million a year ago. The improvement primarily reflected favorable net pricing and cost reductions, partially offset by lower volume net of mix. Revenue was US$18.8 billion, down from US$19.1 billion for the same period a year ago. Ford South America: Ford South America reported a second-quarter pre-tax profit of US$255 million, compared with a pre-tax profit of US$99 million a year ago. The improvement was primarily explained by favorable net pricing and volume. Second quarter revenue improved to US$1.8 billion from US$1.3 billion in 2006. Ford Europe: Ford Europe's second-quarter pre-tax profit was US$262 million, compared with a pre-tax profit of US$185 million during the same period in 2006. The improvement was more than explained by favorable net pricing and higher volumes, partially offset by higher manufacturing costs, primarily to support increased volumes. During the second quarter of 2007, Ford Europe's revenue was US$9.2 billion, compared with US$7.5 billion during the second quarter of 2006. Premier Automotive Group: PAG reported a pre-tax profit of US$140 million for the second quarter, compared with a pre-tax loss of US$162 million for the same period in 2006. All PAG brands improved compared with the same period in 2006. The improvement was more than explained by favorable cost performance across all brands, including the non-recurrence of adverse 2006 adjustments to warranty accruals. Favorable net pricing was more than offset by the effect of the continued weakening of the U.S. dollar against key European currencies. Second-quarter 2007 revenue was US$8.4 billion, compared with US$7.8 billion a year ago. Ford Asia Pacific and Africa: For the second quarter, Ford Asia Pacific and Africa reported a pre-tax profit of US$26 million, compared with a pre-tax profit of US$4 million a year ago. The improvement reflected strong cost performance, including restructuring savings, and improved results in China. These factors were partially offset by lower volume and adverse mix, more than explained by Australia and Taiwan, and unfavorable currency exchange. Revenue was US$1.7 billion for the second quarter of 2007, compared with US$1.8 billion in 2006. Mazda: For the second quarter, Ford earned US$81 million from its investment in Mazda and associated operations, compared with US$32 million during the same period a year ago. Other Automotive: Second-quarter results included a pre-tax loss of US$107 million, compared with a loss of US$85 million a year ago. The year-over-year decline was more than explained by higher interest expense associated with financing actions taken in the fourth quarter of 2006. This was partially offset by increased interest income. Financial Services Sector For the second quarter, the Financial Services sector earned a pre-tax profit of US$105 million, compared with a pre-tax profit of US$425 million a year ago. Ford Motor Credit Company: Ford Motor Credit Company reported net income of US$62 million in the second quarter of 2007, down US$242 million from earnings of US$304 million a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned US$112 million in the second quarter compared with US$435 million in the previous year. The decrease in earnings primarily reflected higher borrowing costs, lower credit loss reserve reductions, higher depreciation expense for leased vehicles and higher net losses related to market valuation adjustments from derivatives. Lower expenses, primarily reflecting improved operating costs, were a partial offset. In the second quarters of 2007 and 2006, pre-tax earnings were US$428 million and US$667 million, excluding the net losses related to market valuation adjustments from derivatives, which were US$316 million and US$232 million, respectively. Ford expects Ford Motor Credit to earn on a pre-tax basis US$1.3 billion to US$1.4 billion this year, excluding the impact of gains and losses related to market valuation adjustments from derivatives, up from the previous estimate of US$1.2 billion. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. GRUPO FINANCIERO: Signs Up for Two-Year US$80-Million Loan ---------------------------------------------------------- Grupo Financiero Galicia said in a filing with the Argentine stock exchange that it has signed up for a two-year, US$80-million loan to integrate its banking unit Banco Galicia's capital increase. Business News Americas relates that Banco Galicia will issue up to 100 million B class shares -- about 21% greater than its outstanding shares -- at ARS4.991 each. "The preferential subscription period will run through Aug. 1," BNamericas states. About Banco de Galicia Headquartered in Buenos Aires, Argentina, Banco de Galicia y Buenos Aires SA -- http://www.e-galicia.com/-- is an Argentinean private bank that is engaged in commercial banking, providing general banking services to large corporations, small and medium-sized companies, agricultural and cattle farms and individuals. The company controls an extensive and diverse network of subsidiaries, which include Banco Galicia Uruguay SA, Galicia Capital Markets SA, Galicia Factoring y Leasing SA, Agro Galicia SA, Galicia Administradora de Fondos SA, Galicia Valores SA, Galicia Warrants SA, Net Investments SA, Sudamericana Holding SA and Tarjetas Regionales SA. Through its subsidiaries the company offers accounting, investment and insurance services, loans, checks and debit and credit cards. It also finances the development of real estate, acts as a fiduciary and leases properties to interested parties. It operates over 400 branches across the country and provides e-banking services to customers via its Internet site. About Grupo Financiero Grupo Financiero Banorte S.A. de C.V. is a holding company that operates, through its subsidiaries, in the Mexican banking industry. The company's main activities include commercial, personal and investment banking, securities trading, insurance, pension funds, leasing and credit financing. Its two main subsidiaries are Banorte (96.11%) and Bancentro (99.99%), which both offer personal and commercial banking services such as credit and debit cards, insurance products, savings accounts and mortgage financing. As of Dec. 31, 2005, Grupo Financiero Banorte run a total of 986 offices and over 2,800 automated teller machines across Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 2, 2006, Fitch upgraded the Ratings of Mexico's Grupo Financiero Banorte Foreign & local currency IDR to 'BBB' from 'BBB-'; Short-term local currency to 'F2' from 'F3'; and Individual to 'C' from 'C/D'. Fitch said the ratings outlook is stable. Fitch also affirmed the GFNorte's Short-term foreign currency IDR at 'F3'; and Support at '5'. GRUPO IMSA: Ternium Obtains Full Ownership of Firm -------------------------------------------------- Ternium S.A. reported that, following the settlement of its previously announced tender offer for shares of Mexico-based steel producer Grupo Imsa S.A.B. de C.V. and the concurrent redemption of those shares not tendered during the tender offer, it now owns all of the outstanding share capital of Grupo Imsa. All of the shares tendered and redeemed received the same price of US$6.40 per share in cash. With the completion of the transactions described above, Ternium has significantly expanded its business in North America, a region that now accounts for a majority of its net sales, and has broadened its presence in Mexico, which is the second largest flat steel market in the Americas behind the United States. Ternium plans to move promptly to integrate Grupo Imsa into its industrial and supply-chain systems. To finance the transactions, partially refinance existing debt and pay associated taxes and expenses, Ternium and certain of its Mexican subsidiaries (including Grupo Imsa) are or will become parties to syndicated term loan facilities in the aggregate principal amount of up to US$3.8 billion. Ternium will consolidate Grupo Imsa's balance sheet and results of operations in its consolidated financial statements from July 26, 2007. About Ternium Ternium -- http://www.ternium.com-- is one of the leading steel companies in the Americas, producing a wide range of flat and long steel products. With operations in Mexico, Argentina and Venezuela and 18,000 employees, Ternium had net sales of US$6.6 billion and shipments of 9.0 million tons of steel products in 2006. About Grupo IMSA Headquartered in Mexico, Grupo IMSA, S.A. de C.V. -- http://www.grupoimsa.com/-- is a diversified industrial company that conducts its business in three segments: steel processing products, steel and plastic construction products and aluminum and other related products. The company's products include galvanized metal, painted metal, aluminum for construction, glass fiber and painted laminates. The company operates through its wholly owned subsidiary holding companies: IMSA ACERO S.A. de C.V., IMSATEC S.A. de C.V., and IMSALUM S.A. de C.V. The company exports its products to the United States, Canada, Mexico, Europe and Central and South America. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 11, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Grupo Imsa SAB de CV to 'BB+' from 'BBB' and removed it from CreditWatch, where it was placed with negative implications on Oct. 2, 2006. S&P said the outlook was stable. ITRON INC: Earns US$7.2 Million in First Quarter Ended March 31 ------------------------------------------------------------- Itron Inc. reported net income of US$7.2 million for the first quarter ended March 31, 2007, compared with net income of US$7.1 million for the same period ended March 31, 2006. Total revenues for the first quarter of 2007 of US$147.9 million were approximately US$7.6 million, or 5%, lower than 2006 first quarter revenues of US$155.6 million. "First quarter revenues were in line with our projections and our prior discussions about lower revenue expectations in the first half of the year compared to the second half," said LeRoy Nosbaum, chairman and chief executive officer. "We had a tough comparison this quarter given the exceptional first quarter we had last year. As we said coming into 2007, this will be an interesting year as the industry builds momentum for AMI (advanced metering infrastructure). Our AMI development, conversion to a new ERP system in the first quarter and other activities produced some higher expenses. Obviously our highlight of the quarter was our acquisition of Actaris which brings us a diversification of revenue and a geographical platform that should allow for nice growth going forward." Total gross margin of 41% was two percentage points lower in the first quarter of 2007 compared with the same period of 2006. Total operating expenses for the first quarter of 2007 were US$52 million, an increase of approximately US$4 million compared with the first quarter of 2006. Research and development expenses were higher in 2007 primarily related to the advanced metering infrastructure (AMI) initiative, OpenWay. General and administrative expenses were higher in 2007 due to expenses related to the acquisition of Actaris, increased professional services and depreciation expense associated with the new ERP system and higher expenses related to maintaining two corporate facilities, one of which is held for sale. Stock-based compensation expenses of US$2.9 million were US$800,000 higher than the US$2.1 million in 2006. Interest income of US$6.1 million in the first quarter of 2007 was substantially higher than the US$362,000 in the comparable period of 2006. Net cash provided by operating activities was US$9 million for the first quarter of 2007, compared with US$37 million in the first quarter of 2006. The decrease was primarily the result of an increase in accounts receivable due to delayed invoicing and decreased collection activity related to our conversion to a new ERP system on Jan. 1, 2007. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2007, was US$22 million compared with US$29 million for the same period in 2006. The lower EBITDA in 2007 was due primarily to decreased operating income. At March 31, 2007, the company’s balance sheet showed US$1.24 billion in total assets, US$606.3 million in total liabilities, and US$632.8 million in total stockholders’ equity. Full-text copies of the company’s consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?2027 About Itron Inc. Itron Inc. (NASDAQ: ITRI) -- http://www.itron.com/-- provides solutions to electric, gas and water utilities worldwide to enable them to optimize the delivery and use of energy and water. Solutions include electric meters, handheld computers, mobile and fixed network automated meter reading (AMR), advanced metering infrastructure (AMI), water leak detection and related software and services. Additionally, the company sells enterprise software to manage, analyze and forecast important utility data. Itron maintains operations in Canada, Qatar, Mexico, Taiwan, France, Australia, The Netherlands, and the United Kingdom. * * * As reported in the Troubled Company Reporter on April 20, 2007, Standard & Poor's Ratings Services lowered its ratings on Itron Inc., including its corporate credit rating to 'B+' from 'BB-', following the completion of the company's acquisition of Actaris Metering Systems. KANSAS CITY SOUTHERN: Earns US$30.2 Mil. in Second Quarter 2007 --------------------------------------------------------------- Kansas City Southern said in a statement that its net profits increased 25.3% to US$30.2 million in the second quarter 2007, compared to US$24.1 million in the same quarter last year. According to Kansas City Southern, it revenues rose 3.4% to US$427 million in the second quarter this year, from the same quarter last year, mainly due to the increasing importance of Mexico to the US auto sector. Business News Americas relates that the growth was led by: -- a 10.4% increase in coal revenues, -- a 7.9% growth in inter-modal and automotive products, -- a 5.1% revenue growth for oil and chemical products, -- a 4.6% increase in agricultural and mineral products, and -- a 1.2% increase in paper and forest product revenues. Kansas City Southern President and Chief Operating Officer Art Shoener said in a conference call that the firm's operating expenses increased 2.5% year-on-year to US$344 million, mainly due to higher fuel prices. The firm's executive sales and marketing vice president Dan Avramovich also said in the conference call that the company predicts that revenue will increase 7% for the rest of 2007. Mr. Shoener told BNamericas that Kansas City Southern's growth would benefit from the completion of the first phase of terminal expansions at the Lazaro Cardenas port in Michoacan, slated for Sept. 26. Hong Kong-based ports firm HPH is unloading and deploying three cranes. Shipping companies Cosco and Evergreen have started operations at the port. Kansas City Southern has been in discussion with two other firms for operations. Kansas City Southern Chief Executive Officer Mike Haverty told BNamericas that construction works at the port terminal will add 600,000 twenty-foot equivalent units of capacity, other than the 200,000 twenty-foot equivalent units of existing capacity. BNamericas notes that Mexican subsidiary KCSM is working on the construction of a 110-hectare multimodal terminal at the port. The US$80-million first phase of construction would start in January 2008 and end within a year. Reports say that the multimodal terminal will be able to handle one million twenty-foot equivalent units yearly. Kansas City Southern Chief Financial Officer Pat Ottensmeyer said in a conference call that the company has received pre-tax savings of US$13 million due to refinancing its debt in Mexico. According to reports, Kansas City Southern had successfully refinanced US$175 million of notes held at 10.3% interest by KCSM, with notes at 7.63% interest. Kansas City Southern is working on refinancing its holding in the Panama Canal Railway Company, repaying all of its interest of US$24 million for the operation, and receiving an expected US$35 million in additional revenue. This transaction would be completed in the third quarter, Mr. Ottensmeyer told BNamericas. Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the US, Mexico and Panama. Its primary U.S. holding includes KCSR, serving the central and south central US. Its international holdings include Kansas City Southern de Mexico, serving northeastern and central Mexico and the port cities of Lazaro Cardenas, Tampico and Veracruz, and a 50% interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on May 17, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to Kansas City Southern Railway Co.'s proposed new US$75 million term loan C due 2013; the recovery rating is '1', indicating expectations of full recovery of principal in the event of payment default. In addition, a 'B' rating was assigned to the proposed new US$165 million notes offering by Kansas City Southern de Mexico S. de R.L. de C.V. (KCSM; previously TFM S.A. de C.V.) and other senior unsecured ratings on KCSM were raised to 'B' from 'B-'. Kansas City Southern Railway Co. and KCSM are wholly owned subsidiaries of Kansas City Southern. * * * As reported in the Troubled Company Reporter-Latin America on May 17, 2007, Fitch Ratings assigned a 'B+' foreign currency rating and a Recovery Rating of 'RR4' to the US$165 million senior notes due 2014 to be issued by Kansas City Southern de Mexico, S.A. de C.V. The new notes rank pari passu with KCSM's existing senior unsecured obligations. Fitch also maintained 'B+' foreign currency ratings and 'RR4' recovery ratings on KCSM's other outstanding notes: -- US$178 million 12.50% senior notes due 2012; -- US$460 million 9.375% senior notes due 2012; -- US$175 million 7.625% senior notes due 2013. The proceeds of the proposed new issuance will be used primarily to pay off the company's outstanding US$178 million 12.50% notes due 2012. Fitch also maintained a 'B+' foreign and local currency Issuer Default Rating for KCSM. Fitch said the rating outlook for these ratings was stable. MAXCOM TELECOMUNICACIONES: Earns MXN48.1 Mil. in Second Quarter --------------------------------------------------------------- Maxcom Telecomunicaciones said in a statement that it had MXN48.1 million profits in the second quarter 2007, compared to a MXN34-million loss in the same period in 2006. According to Maxcom Telecomunicaciones' statement, its revenues increased 39% to MXN561 million in the second quarter 2007, compared to MXN402 million in the same quarter last year. The improvement showed a boost in voice lines and in its average revenue per user. Business News Americas relates that Maxcom Telecomunicaciones filed on July 23, 2007, prospectus paperwork with U.S. Securities and Exchange Commission to hold an initial public offering on a US stock exchange to try to raise US$175 million. The firm hired investment bank Morgan Stanley as its adviser on the matter. According to BNamericas, in the second quarter 2007 voice revenues dropped two percentage points in the second quarter 2007. It represented 78% of the firm's revenues. The number of voice lines in service in the second quarter 2007 rose 26% to 299,744, compared to 237,179 lines in the second quarter 2006, and up 6% from 283,139 lines in service at the end of the first quarter 2007, BNamericas reports. Headquartered in Mexico City, Mexico, Maxcom Telecomunicaciones, SA de CV, is a facilities-based telecommunications provider using a "smart-build" approach to deliver last-mile connectivity to micro, small and medium-sized businesses and residential customers in the Mexican territory. Maxcom Telecomunicaciones launched commercial operations in May 1999 and is currently offering Local, Long Distance and Internet & Data services in greater metropolitan Mexico City, Puebla and Queretaro. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 29, 2006, Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to Mexico City-based Maxcom Telecomunicaciones SA de CV. S&P said the outlook was stable. At the same time, Standard & Poor's assigned its 'B' rating to Maxcom's proposed transaction of up to US$200 million 144-A senior unsecured notes maturing in 2016. The notes will be guaranteed by substantially all of Maxcom's subsidiaries. Proceeds from the proposed offering of notes will be used to refinance all the existing indebtedness, including vendor financing, and to prefund approximately US$84 million of capital expenditures for additional growth. MCDERMOTT INT'L: Completes Amendments to Credit Facilities ---------------------------------------------------------- McDermott International, Inc. has recently completed amendments to two of its subsidiaries’ outstanding credit facilities, which have a combined borrowing and performance-related letter of credit capacity of US$900 million. Currently, there are no borrowings under either facility, although approximately US$510 million of combined performance-related letters of credit are currently outstanding. Following the previously announced upgrades from the major credit ratings agencies, McDermott International requested from its lenders a number of modifications to these existing credit facilities. Among the significant new financial terms, the amended facilities have lower applicable margins for borrowings and letters of credit, which will save between 50 to 150 basis points annually compared to the previous cost. McDermott estimates that it will realize approximately US$5 million per year of pretax savings, excluding initial arrangement fees, as a result of the amended financial terms, subject to the revised ratings-based pricing grid. "McDermott appreciates the strong support of the many financial institutions participating in our amended credit facilities," said company Senior Vice President and Chief Financial Officer Michael S. Taff. "Both of these facilities are now completely supported by commercial banks, which demonstrates our improved credit profile, strong financial relationships and the lenders’ confidence in our respective subsidiaries." McDermott International, Inc. (NYSE:MDR) -- http://www.mcdermott.com/-- is a leading worldwide energy services company. McDermott's subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the energy and power industries, including the U.S. Department of Energy. The company operates in most major offshore producing regions throughout the world, including the U.S. Gulf of Mexico, Mexico, the Middle East, India, the Caspian Sea and Asia Pacific. Operations in this segment are primarily conducted through its subsidiary, J. Ray McDermott, S.A. As reported in the Troubled Company Reporter-Latin America on July 5, 2007, Moody's Investors Service upgraded the ratings of McDermott International Inc. and its subsidiaries. Moody's raised MII's Corporate Family Rating to Ba3 from B1. Moody's upgraded J. Ray McDermott, S.A.'s CFR to Ba3 from B1, its Probability of Default Rating to B1 from B2 and its senior secured bank facility to Ba2 (LGD-2, 22%) from Ba3 (LGD-2, 24%). The Babcock & Wilcox Company's senior secured bank facility rating was raised to Baa3 (LGD-1, 6%) from Ba2 (LGD-2, 19%). The rating outlook for J. Ray was positive, while the rating outlooks for MII and B&W were both stable. METROFINANCIERA SA: S&P Affirms B+ Long-Term Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' long-term counterparty credit rating on Metrofinanciera S.A. de C.V. SOFOM E.N.R. At the same time, S&P affirmed its 'CCC+' rating on Metrofinanciera's perpetual noncumulative subordinated step-up securities. The outlook is negative. Although efforts by the company to restore its financial flexibility are a positive factor, the rating affirmation reflects the continued pressures on the company's financial performance despite the payment of MXN1.0 billion made on July 5, 2007, and an improvement in core earnings in 2Q07. "S&P ratings on Metrofinanciera reflect weak enterprise risk management and aggressive growth strategies; negative pressures on adjusted capitalization, liquidity, leverage, and reserve coverage; and an extreme reliance on short-term debt. The ratings are supported by a business model that allows the company to generate a high revenue stream, a strategy that aims to shift to a mortgage-oriented portfolio, and higher-than-average access to financial markets compared with that of its peers," said Standard & Poor's credit analyst Francisco Suarez. The 'CCC+' rating assigned to Metrofinanciera's perpetual noncumulative subordinated step-up securities (classified by us as "category 2, adequate") reflects the potential deferability of interest payments, the subordination of the notes, the terms and conditions of the issuance, and the issuer's overall financial strength. S&P believe that the company's overall risk governance is weak. Concentration of decision making in one person and poor transparency to investors and other market participants have become more evident in recent months. For instance, the firm applied aggressive accounting practices to certain operations that did not accurately reflect the company's liquidity, debt levels, revenues, and land investments. Some of these operations were later restated to more normal accounting practices, but disclosure remains an issue. The change in legal status to a Sofom from a Sofol eliminates the possibility of certain potential contingencies related to land-acquisition activities. The outlook is negative. S&P expect Metrofinanciera to reduce leverage and partially restore liquidity and cash flow in the coming months, thanks to ABS and RMBS transactions. Still, a negative rating action could follow if Metrofinanciera is unable to reduce its exposure in land investments and if a sizable amount of liquid assets remains committed. To create rating stability, apart from solving the land exposure and liquidity constraint, a significant positive change in risk management practices is required. In this context, S&P would expect a significant change in corporate governance, a reduction of structural concentrations in assets and liabilities, an increase in reserve coverage, and a debt-to-ATE ratio in the area of 14.5x. The privately held Metrofinanciera is Mexico's fourth largest specialized housing lending company, with a portfolio of MXN13.3 billion (USUS$1.25billion) under administration at the end of 2005. Founded in 1996 by local businessmen, the Monterrey-based lender has developed a network of six regional offices and 50 branches that operates nationwide. =========== P A N A M A =========== CHIQUITA BRANDS: S&P Holds Ratings on CreditWatch Negative ---------------------------------------------------------- Standard & Poor's Ratings Services said that the ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. remain on CreditWatch with negative implications following reports that the company, in addition to other banana import companies, received a Statement of Objections from the European Commission. The document concerns an ongoing EC investigation regarding potential violations of European competition laws in the banana industry. Based on Chiquita's voluntary notification and cooperation with the investigation, the EC granted the company conditional immunity from any fines related to the conduct, subject to customary conditions. The ratings were initially placed on CreditWatch with negative implications on May 2, 2007, following weak first-quarter operating results due to high purchased fruit and other industry costs and lower local banana prices in Europe. "We will review Chiquita's operating and financial plans with management before resolving the CreditWatch listing, as well as developments in this EC investigation, and assess the potential for regulatory sanctions and/or financial penalties as part of our review," said Standard & Poor's credit analyst Alison Sullivan. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Colombia, Panama and the Philippines. ===================== P U E R T O R I C O ===================== BURGER KING: Discloses Additional Debt Retirement for US$25 Mil. ---------------------------------------------------------------- Burger King Holdings Inc. will retire an additional US$25 million in debt on July 31, 2007, using cash generated from operations. "We took advantage of the strong cash flow generated during this past quarter ended June 30, 2007,” said Burger King Executive Vice President and Chief Financial Officer Ben Wells. After evaluating our options, and given the current debt market environment, we have determined that paying down debt now to reduce our interest expense will further strengthen the company's financial position and benefit shareholders." Headquartered in Miami, Florida, The Burger King -- http://www.burgerking.com/-- operates more than 11,000 restaurants in more than 60 countries and territories worldwide. Approximately 90% of Burger King restaurants are owned and operated by independent franchisees, many of them family owned operations that have been in business for decades. Burger King Holdings Inc., the parent company, is private and independently owned by an equity sponsor group comprised of Texas Pacific Group, Bain Capital and Goldman Sachs Capital Partners. Burger King Corp. operates restaurants in the Latin American, Caribbean and Mexican Region. The company's first international restaurant opened in 1963 in Puerto Rico. Since 1994, Burger King has opened more than 300 restaurants in the Latin American region, producing some of the strongest comparable store sales growth for the brand around the world. Burger King(R) restaurants in Latin America serve approximately 1,600 customers per day each, making them some of the highest volume restaurants in the system. * * * As reported in the Troubled Company Reporter on Oct. 17, 2006, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the restaurant sector, the rating agency revised its Corporate Family Rating for Burger King Corp. to Ba3 from Ba2. Additionally, Moody's held its Ba2 ratings on the Company's US$150 million Senior Secured Revolver Due 2011 and US$250 million Senior Secured Term Loan A Due 2011. Moody's assigned those loan facilities an LGD3 rating suggesting lenders will experience a 35% loss in the event of default. HANESBRANDS INC: Second Quarter Operating Profit Is US$88.1MM ------------------------------------------------------------- Hanesbrands Inc. has reported results for the 2007 second quarter. Total net sales were US$1.12 billion, comparable to last year, and earnings per diluted share were US$0.26, which, as expected, were significantly lower than a year ago primarily because of several factors related to the company’s new independent structure following its spin-off in September 2006. "Hanesbrands continued executing its key improvement strategies in the quarter and delivered strong cash flow," Hanesbrands Chief Executive Officer Richard A. Noll said. "Sales in the quarter were comparable to a year ago, and our expanded margins for the first half were driven by strong cost controls. Our cash flow allowed us to make additional prepayments on long-term debt and repurchase shares in the quarter." Second Quarter 2007 and Six-Month Financial Highlights Total net sales in the quarter increased by US$2 million to US$1.12 billion from the year-ago quarter ended July 1, 2006. The company continues to focus on driving innovation in the innerwear segment and improving the mix of products sold in the outerwear segment. Operating profit, based on generally accepted accounting principles, was US$88.1 million in the quarter, up from US$79.9 million a year ago, and was US$157.0 million in the first six months, compared with US$176.1 million a year ago. The company’s operating profit margin excluding actions was 11.2% in the quarter and 10.0% in the first six months. A year ago, the operating profit margin excluding actions was 8.4% in the second quarter and 9.1% in the six-month period. "We are pleased with the operating profit margin excluding actions for the first six months of the year," Mr. Noll said. "Our ability to exert tight cost controls and execute on our improvement and streamlining plans is delivering results. We are seeing the benefits of past cost-reduction efforts, including moving production to lower-cost countries as part of our long-term supply chain globalization initiative." Diluted earnings per share were US$0.26 in the second quarter 2007, compared with US$0.62 a year ago. For the six-month period, diluted earnings per share was US$0.39 compared with US$1.39 a year ago. The decrease in earnings per share reflected increased interest expense and a higher effective income tax rate as a result of the company’s independent structure, as well as higher restructuring and related charges. Diluted earnings per share excluding actions in the second quarter 2007 was US$0.54 in the quarter compared with US$0.73 a year ago, and for the six-month period was US$0.81 versus US$1.55 a year ago. Using cash flow from operations, the company paid down long-term debt by US$53 million, of which US$50 million was a prepayment, and repurchased US$16 million of company stock. Other Highlights Hanesbrands continues to build its largest and strongest brands in core categories through innovation in key items. On July 9, Hanes launched its latest “Look Who” national advertising campaign supporting men’s underwear by featuring actor Cuba Gooding Jr. and basketball great Michael Jordan. The men’s campaign follows the successful Hanes All-Over Comfort Bra advertising launch in March featuring celebrity Jennifer Love Hewitt that has accelerated retail sell-through of the bra. In April, the Bali "Live Beautifully" advertising campaign launched, and outdoor advertising for Barely There won a 2007 OBIE Award, outdoor advertising’s greatest honor. Hanesbrands continues to execute its long-term global supply chain strategy of moving production to lower-cost countries to increase competitiveness. In the second quarter of 2007, the company announced plans to close 12 production plants in four countries and eliminate managerial and administrative jobs by the end of the year. The company recognized US$39.6 million in restructuring and related charges in the quarter for those and previously announced actions. Of the charge, US$11.9 million was non-cash. "We are very pleased with the progress we have made in moving production to lower-cost countries and reducing costs," Mr. Noll said. "While we continue to reap the benefits from these past actions, we are focused on executing our latest production moves and organizational streamlining to gain additional benefits. We are now slightly ahead of schedule with our cost-reduction and globalization strategy." Hanesbrands Policy on Guidance Hanesbrands follows a policy of not providing quarterly or annual earnings per share guidance. The company plans to communicate appropriately to provide investors with an understanding of long-term goals, the trends associated with its business and current financial performance. Hanesbrands Inc. -- http://www.hanesbrands.com/-- markets innerwear, outerwear and hosiery apparel under consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, men's underwear, children's underwear, socks, hosiery, casual wear and active wear. Hanesbrands has approximately 50,000 employees in 24 countries, Including Dominican Republic, Mexico, Puerto Rico, India and China. * * * Standard & Poor's Ratings Services affirmed Hanesbrands Inc.'s B+ corporate family rating on December 2006. ORIENTAL FINANCIAL: Reports US$5.2MM Income in Second Quarter ------------------------------------------------------------- Oriental Financial Group Inc. reported results for the second quarter and six months ended June 30, 2007. For the second quarter, the group reported income available to common shareholders of US$5.2 million, or US$0.21 per common share (basic and diluted), significantly better than the income of US$1.3 million, or US$0.05 per share, in the corresponding year ago quarter. The results of operations for the second quarter also compare favorably to the first quarter of 2007, when the group reported income of US$9.8 million, or US$0.40 per share, which included a gain of US$8.2 million (or US$0.33 per share basic and diluted) from the elimination of forecasted transactions on interest rate swaps unwound in 2006. For the six months, the group reported income available to common shareholders of US$15.0 million, or US$0.61 per common share (basic and diluted), compared to US$8.1 million, or US$0.33 per share, in the corresponding year ago period. Oriental Financial President and Chief Executive Officer Jose Rafael Fernandez said, "Profitability improved year over year and quarter over quarter (excluding the aforementioned one time gain in the previous quarter) primarily due to a strong increase in net interest income. The increase is the direct result of the group’s previously announced repositioning of its available-for-sale (AFS) securities portfolio and the restructuring of the repurchase agreement funding portfolio, designed to achieve a favorable spread on both the AFS and held-to-maturity portfolios through 2008. Net interest income growth also benefited from continued increases in our loan portfolio and recent stability of short term interest rates. Net interest income of US$17.7 million increased 65.2% year over year and 33.3% quarter over quarter, while net interest margin (NIM) of 1.40% represented increases of 44 basis points year over year and 22 basis points quarter over quarter. This is the first time since the December 2002 quarter that NIM has grown two quarters sequentially. The increase in net interest income enabled Oriental to more than offset higher non-interest expenses and slower loan activity as we ride out current economic conditions in Puerto Rico." Puerto Rico's economy of late has experienced slower than normal growth, although recent government efforts to increase public works projects and tourism activity are expected to have a beneficial impact as the year progresses. "Having better positioned the investment and funding portfolios for the present and foreseeable interest rate environment, Oriental is increasingly focused on expanding its core strength in financial services for mid-net worth individuals and families, and high net worth professionals," Mr. Fernandez said. "At the same time, we will continue to work on increasing operational efficiencies. Our capital position is very strong, which provides us with a great degree of flexibility going forward." Interest income of US$70.8 million for the 2007 second quarter increased 24.4% year over year and 15.1% quarter over quarter, primarily due to higher investment yields and loan balances. Investment yield at 5.12% improved year over year from 4.40% and quarter over quarter from 4.85%, while average loan balances at US$1.26 billion were 28.9% greater year over year and up 1.8% quarter over quarter. At the same time, interest expense of US$53.1 million increased at a slower pace than interest income, primarily due to lower rates on borrowings of 4.51% versus 4.68% in the year ago quarter and 4.77% in the preceding quarter. The sequential quarter increase in the average balances of investment securities and borrowings reflects new higher yielding securities and lower cost borrowings put in place as part of the AFS portfolio repositioning in December 2006 and repo restructuring implemented over the course of the first quarter and which were fully in place at the start of the second quarter. Total non-interest income of US$7.8 million increased 3.7% year over year and 10.6% quarter over quarter (excluding the aforementioned gain in the previous quarter). Financial and banking service revenues of US$6.3 million combined decreased from US$6.7 million in the preceding quarter, primarily due to a decrease in income from insurance activities as a result of reduced mortgage and consumer loan production. Non-interest expenses of US$17.5 million increased 18.2% year over year and 10.4% quarter over quarter. Second quarter expenses included more than US$1.5 million from items like the launch of a new television advertising campaign, certain improvements to the information technology platform, professional service fees, severance costs related to "right sizing" the mortgage business in line with market demand and foreclosure expenses. Most of these expenses are not expected to recur in the second half of 2007. At June 30, 2007, total net loans amounted to US$1.27 billion, an increase of 10.2% year over year and 3.1% quarter over quarter, primarily reflecting increases in mortgage loans. During the quarter, Oriental purchased from another financial institution a portfolio of approximately US$44 million of residential mortgage loans with average FICO credit scores of more than 700 and average loan to value ratios below 80%. This purchase more than offset the decrease in the production of mortgage loans compared to the previous quarter. At June 30, 2007, deposits amounted to US$1.33 billion, an increase of 9.5% year over year remaining substantially flat quarter over quarter. The year over year change reflects a 90.7% increase in savings, due to the continued success of the Oriental Money savings account, which more than offset a 20.9% decline in demand deposits. Borrowings at June 30, 2007, totaled US$3.52 billion, up 8.6% year over year, reflecting increases in lower cost repos and federal funds purchased, which more than offset declines in higher priced advances from the Federal Home Loan Bank of New York, and the previously announced reductions of subordinated capital and term notes. The borrowing levels were approximately even quarter over quarter. Net credit losses in the June 2007 quarter remained relatively low at less than US$1.0 million (0.31% of average loans outstanding) compared to approximately US$1.0 million (0.34%) during the March 2007 quarter and US$0.6 million (0.25%) during the June 2006 quarter. Oriental Financial’s provision for loan losses amounted to US$1.4 million in the June 2007 quarter (139.0% of net credit losses) compared to US$1.1 million in the March 2007 quarter (102.9%) and US$1.0 million in the June 2006 quarter (156.3%). The provision is based on an analysis by the Group of the credit quality and composition of its loan portfolio to maintain the allowance at an adequate level. At June 30, 2007, non-performing loans were US$50.1 million (3.91% of total loans), compared to US$43.9 million (3.53%) at March 31, 2007, and US$29.4 million (2.53%) at June 30, 2006. The current level reflects an increase of US$6.5 million from the March 2007 quarter in non-performing residential mortgage loans due to the current slow economy in Puerto Rico. This increase is not expected to translate into significantly higher losses as these loans are generally well collateralized with adequate loan to value ratios. Stockholders’ equity amounted to US$313.5 million at June 30, 2007, compared to US$338.3 million at March 31, 2007, and US$340.3 million at June 30, 2006. Excluding US$68.0 million of preferred equity, equal to approximately US$2.77 per share, which is included in stockholders’ equity, book value per common share at June 30, 2007, amounted to US$10.01 compared to US$11.04 at March 31, 2007, and US$11.09 at June 30, 2006. The quarter over quarter decline in stockholders’ equity reflects an increase in the accumulated other comprehensive loss as long rates increased during the June 2007 quarter, resulting in increased unrealized loss on the AFS portfolio from the levels in the March 2007 quarter. The investment securities that were affected in the mark to market valuation are funded with long-term repos with lockout periods of one and two years, which would have a positive effect in other comprehensive income if reported at fair value. The Group’s capital ratios remain significantly above regulatory capital requirements. At June 30, 2007, the Leverage Capital Ratio was 7.23%, Tier I Risk-Based Capital Ratio was 19.32%, and Total Risk-Based Capital Ratio was 19.75%. During the June 2007 quarter, Oriental Financial repurchased 45,000 shares of common stock at an average price of US$11.83 per share and a total cost of US$532,132, leaving approximately US$7.5 million available under the group’s current stock repurchase program. Mr. Fernandez said that during and after the end of the second quarter, Oriental Financial entered into several transactions to enhance the servicing of its mortgage loan portfolio. On June 15, 2007, Oriental Financial acquired from Doral Financial Corporation all the servicing rights on the portion of Oriental’s mortgage loan portfolio that Doral had been servicing. On July 13, 2007, Oriental Financial unwound certain mortgage-related transactions entered in 2004 and 2005 with R-G Premier Bank of Puerto Rico (these transactions were subsequently reclassified as a single commercial loan) with an unpaid principal balance of US$71.4 million as of July 1, 2007. Oriental Financial has retained certain mortgage loans with an unpaid principal balance of US$26.6 million as of such date, R-G substituted certain mortgage loans with an unpaid principal balance of US$25.9 million as of such date with mortgage loans selected by Oriental Financial that comply with its credit underwriting policies, and the remaining balance of the loan was paid by R-G in cash. Oriental Financial will classify as residential mortgage loans the new balance of US$52.5 million in loans that it purchased from R-G on a servicing released basis. Oriental Financial owns the servicing rights for all its outstanding mortgage loans and has contracted out the sub-servicing to a third party. Oriental Financial Group Inc. (NYSE: OFG) -- http://www.OrientalOnline.com/-- is a diversified financial holding company operating under U.S. and Puerto Rico banking laws and regulations. Oriental provides comprehensive financial services to its clients throughout Puerto Rico and offers third party pension plan administration through its wholly owned subsidiary, Caribbean Pension Consultants, Inc. The Group's core businesses include a full range of mortgage, commercial and consumer banking services offered through 24 financial centers in Puerto Rico, as well as financial planning, trust, insurance, investment brokerage and investment banking services. * * * As reported in the Troubled Company Reporter on Jan. 13, 2006, Standard & Poor's Ratings Services assigned its 'BB+' long-term counterparty credit rating to Oriental Financial Group. S&P also assigned its 'BBB-' counterparty rating to Oriental's principal operating subsidiary, Oriental Bank & Trust. S&P said the outlook for both entities was negative. ================================= T R I N I D A D & T O B A G O ================================= DIGICEL: Enhancing Network with Cisco Technology ------------------------------------------------ Digicel is enhancing its network with a Cisco carrier-class signaling transfer point technology. Known as the Cisco 7600 Internet Protocol Transfer Point solution, the technology is a part of the Cisco IP Next-Generation Network architecture. The Cisco 7600 ITP solution provides Digicel standard time-division multiplexing (TDM)-based signaling, high-speed Asynchronous Transfer Mode (ATM) and STP capabilities. It is graphically managed by the Cisco Mobile Wireless Transport Manager (MWTM). Based in Jamaica, Digicel covers 22 markets in neighboring islands and countries. The carrier determined that the Cisco 7600 ITP solution could help it expand its signaling network while keeping costs and training requirements relatively low. "The Cisco 7600 ITP solution allows Digicel to freely expand its services to existing customers and accommodate a rapidly growing customer base. We also have plans for more IP-based deployments, which make the Cisco 7600 ITP, and Cisco, a logical choice. Coupled with a purpose-built element management system, the Cisco Mobile Wireless Transport Manager, the complete solution allows for reduced training requirements and increased visibility into our operations," said Digicel Group Chief Technical Officer. "The Cisco 7600 ITP solution provides a solid foundation for Digicel and contains many features as part of its standard package that allows Digicel to utilize more features at less cost." Digicel offers the latest wireless technologies and services with the newest handsets as well as tailor-made prepaid and postpaid packages that include rollover minutes, General Packet Radio Service (GPRS) data services, prepaid roaming, Call Me, Credit Me, Credit U, Short Messaging Service (SMS), e-mail and multimedia messaging. Cisco IP Transfer Point Traditional Signaling System 7 (SS7) transport options provide few choices in terms of controlling capital and operational expenses. Legacy STPs are large, costly and cumbersome, and they require significant resources to maintain functionality. In addition, legacy STPs pose limitations on space efficiency and power consumption as well as network growth in an Internet protocol-based environment, which leaves service providers in the position of having to purchase additional interface equipment and more STPs in order to expand their network. In contrast, the Cisco7600 ITP software provides flexible, cost-efficient platforms that can meet a wide variety of service provider needs. The Cisco 7600 ITP software also combines the functionality of a next-generation STP and an Internet protocol router whose features include high-port density, support for Internet protocol routing protocols, and transport of SS7 signaling traffic over an Internet protocol network. Combining STP protocols with the Cisco 7600 ITP software's Internet protocol routing functionality results in a highly reliable, flexible and easy-to-manage SS7-over-Internet protocol software. "The Cisco 7600 ITP solution continues to offer value into the core signaling transport point market. By providing this next-generation signaling transport point, Cisco has successfully demonstrated its ability to provide signaling solutions that support existing and future service provider growth needs, even for carriers experiencing significant growth," said Tony Jeffs, director of marketing, Mobility Switching and Call Control Group, Cisco. "Taking advantage of our core expertise in IP [Internet protocol], Cisco's ability to provide scalable, reliable and cost-efficient signaling solutions that meet specific carrier and end user needs enhances Cisco's unique ability to fulfill the evolving requirements in this market." Cisco Mobile Wireless Transport Manager The Cisco MWTM provides monitoring and management capabilities to the Cisco Radio Access Network (RAN) optimization and Cisco 7600 ITP solutions. The Cisco MWTM addresses mobile operators' element management requirements and provides the fault, configuration and troubleshooting capabilities they need to transition from first-generation fixed leased-line networks to a converged IP-based infrastructure. About Cisco Cisco -- http://www.cisco.com-- is the worldwide leader in networking that transforms how people connect, communicate and collaborate. About Digicel Digicel Group Limited -- http://www.digicelgroup.com/-- is a wireless services provider in the Caribbean region. The company is a newly created Bermuda incorporated company formed by Mr. Denis O'Brien, who previously owned 78% of the shares of Digicel Limited on a fully diluted basis. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in 22 markets primarily in the Caribbean including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and Haiti among others. As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings took these rating actions for Digicel Group Ltd., Digicel Ltd. and Digicel International Finance Ltd.: Digicel Group Ltd. -- US$1.4 billion senior subordinated notes due 2015 assigned 'CCC+/RR5' Digicel Ltd. -- Foreign currency Issuer Default Rating downgraded to 'B-' from 'B'; and -- US$450 million senior notes due 2012 downgraded to 'B-/RR4' from'B/RR4'. Digicel International Finance Ltd. --US$850 million senior secured credit facility assigned 'B/RR3'. Fitch said the outlook on all ratings was stable. HILTON HOTELS: Unit Launches Hilton Garden Inn Beaumont ------------------------------------------------------- Hilton Hotel's Hilton Garden Inn reported the opening of the 100-room Hilton Garden Inn® Beaumont in Beaumont, Texas. The Hilton Garden Inn Beaumont is operated by JaiMaha Laxmi, Inc., under a license agreement with Hilton Inns, Inc., a franchise subsidiary of Beverly Hills-based Hilton Hotels Corporation. "With communities like Beaumont experiencing growth in both business and population during recent years, Hilton Garden Inn is the ideal hotel product that can provide area visitors –- both business and leisure -- just what they need," said Hilton Garden brand management senior vice president Adrian Kurre. The three-story Hilton Garden Inn Beaumont welcomes travelers with the latest in guestroom offerings, including the Garden Sleep SystemTM bed, ergonomic Mirra chair by Herman Miller, high definition television and clock that enables guests to play their MP3 or portable CD player. The hotel features: -- a signature glass-walled ‘Pavilion’ lobby housing the reception desk and lounge area with a television and fireplace; -- a Pavilion Pantry with a selection of refrigerated, frozen and microwaveable packaged items, and sundries; -- Great American Grill offering cooked-to-order breakfast and dinner; -- evening room service; -- four meeting rooms with 2,000 square feet of flexible meeting space; -- a 24-hour, complimentary business center; -- a workout facility, outdoor swimming pool and whirlpool; and -- an on-site guest laundry facility. Guestroom features include: -- complimentary Wi-Fi and remote printing to the hotel’s business center; -- an oversized clutter-free work desk with plugs and electrical outlets at desk height; -- the Garden Sleep System bed and Mirra chair by Herman Miller; -- adjustable lighting; -- ample outlets throughout the room for cell phones and other portable electronics; and -- two telephones equipped with data ports and voice mail. All guestrooms also offer: -- a "hospitality center" with a microwave oven, coffee maker and mini refrigerator; -- a sitting area with an easy chair and ottoman; -- a hairdryer; and -- an iron and ironing board. In-room entertainment and information services include video-on-demand movies, video games and interactive Hilton Garden Inn guest services. Recreational facilities consist of a workout facility with state-of-the-art cardiovascular and strength training equipment, Stay Fit Kits available for complimentary check out from the front desk, an indoor swimming pool and whirlpool. "The Hilton Garden Inn Beaumont hotel's residential feel will appeal greatly to corporate travelers conducting business in the area and leisure travelers visiting friends and relatives in the area," said company general manager Brian Huguenard. "Our hotel is located near numerous office buildings and sports fields and a short driving distance to numerous and varied shopping, including the Parkdale Mall and Antique district." Members of the Hilton HHonors guest reward program can also earn Points & Miles for every qualifying stay at the Hilton Garden Inn Beaumont. About Hilton Garden The Hilton Garden Inn Beaumont is located at 3755 I-H 10, Beaumont, Texas. The hotel is situated off Interstate 10 and Walden Road at Exit 848. Hilton Garden Inn is a mid-priced brand that is part of Hilton Hotels Corporation. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the closing of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. ================= V E N E Z U E L A ================= LEAR CORP: Terminated Merger Deal Cues S&P to Lift Rating to B+ --------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Lear Corp. to 'B+' from 'B' and removed the ratings from CreditWatch with positive implications where they were placed on July 17, 2007. The upgrade follows the termination of the agreement to purchase Lear by Carl Icahn-controlled American Real Estate Partners, L.P., which would have added US$1.5 billion of debt to Lear's balance sheet. The outlook is negative. The upgrade reflects S&P’s 2view that absent the increase in Lear's leverage, the company's credit profile will remain consistent with the 'B+' rating. S&P do not expect any near-term shifts in the company's business or financial strategies now that Lear will remain independent. Although S&P do not expect a second attempt to acquire Lear, S&P note that AREP currently owns or controls about 20% of Lear, and Carl Icahn's ability to purchase the remainder without triggering the change of control language in most of the rated public debt remains in effect. The Southfield, Michigan-based auto supplier had total debt of about US$3.5 billion at March 31, 2007, including the present value of operating leases and underfunded employee benefit liabilities. About Lear Corp. Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) -- http://www.lear.com/-- supplies automotive interior systems and components. Lear provides complete seat systems, electronic products and electrical distribution systems and other interior products. The company has more than 90,000 employees at 236 facilities in 33 countries. Lear also operates in Latin American countries including Argentina, Mexico, and Venezuela. Its European operations are located in Czech Republic, United Kingdom, France, Germany, Honduras, Hungary, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, South Africa, Morocco, Netherlands, Tunisia and Turkey. Its Asian facilities are in China, India, Japan, Philippines, Singapore, South Korea, and Thailand. MARSULEX INC: S&P Withdraws BB- Long-Term Corporate Rating ---------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB-' long-term corporate credit rating on Toronto-based Marsulex Inc. The withdrawal comes at the request of the company. Marsulex Inc. is a provider of industrial services, primarily environmental compliance solutions for air quality control and industrial hazardous waste streams, and a producer and marketer of sulphur-based industrial and water treatment chemicals. The Company’s services are provided to a base of customers in a range of industries. In Western Canada, Marsulex produces and markets sulphur-based industrial and water treatment chemicals. The Company's activities are divided into three operating segments: Industrial Services, Western Markets and Power Generation. The fourth non-operating segment is Corporate Support, which provides centralized services, such as finance, information systems, human resources and risk management to the operating segments. On April 1, 2006, the Company completed the acquisition of Petcoke Services, a provider of in-refinery petcoke cutting and bulk handling services to major oil refineries in the United States Gulf Coast and West Coast and Venezuela. PEABODY ENERGY: AG Edwards Downgrades Firm's Shares to Hold ----------------------------------------------------------- AG Edwards analyst Mark L. Reichman has downgraded Peabody Energy Corp's shares to "hold" from "buy," Newratings.com reports. Mr. Reichman said in a research note that Peabody Energy posted its second quarter earnings per share short of the estimates and the consensus. "Peabody Energy’s performance during the remainder of 2007" would be affected by a drop in sales on account of the port and rail congestion in Australia and reduced output, Mr. Reichman told Newratings.com. The long-term growth estimate for Peabody Energy was decreased to 15% from 17%. The earnings per share estimate for 2007 was dropped to US$2.00 form US$2.65, while the estimate for next year was decreased to US$3.00 from US$3.60, Newratings.com states. Headquartered in St. Louis, Missouri, Peabody Energy Corporation (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Venezuela. * * * As reported in the Troubled Company Reporter on Mar 9, 2007, Moody's Investors Service reported that, after the adoption of final guidelines for preferred stock and hybrid securities notching, it downgraded Peabody Energy Corporation's hybrid instrument to Ba3. This instrument has been placed on review for downgrade. * VENEZUELA: State Telecom Inks Interconnection Pact with ETB ------------------------------------------------------------- Venezuela's state-run incumbent telecom firm Cantv said in a statement that it has signed an interconnection accord with Colombian municipal telecom ETB to boost the data and voice traffic capacity between the two nations. Business News Americas relates that the project named the Interconnection Project Colombia. It will see the deployment of over 100 kilometers of fiber optic cabling linking Venezuela and Colombia. It would be ready towards the middle of next year. According to BNamericas, the project "will give ETB an additional international exit for Internet traffic" through Brasil Telecom GlobeNet's undersea cables. Cantv said in a statement that ETB has about 240,000 broadband clients. If the firm wants to achieve the growth in subscribers it has set out -- 300,000 by year-end and 800,000 by end-2010 -- the project is a must. "To meet these goals, this relationship [with Cantv] is absolutely strategic in that it is going to give us an important access [to international network capacity]," ETB head Rafael Orduz said in a statement. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. Fitch said the ratings' outlook remains stable. * BOOK REVIEW: Bankruptcy: A Feast for Lawyers ---------------------------------------------- Author: Sol Stein Publisher: Beard Books Paperback: 341 pages List Price: $34.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1893122123/internetbankrupt Described by the Chicago Tribune as a "latter-day version of Dicken's Bleak House," this book is a shattering indictment of bankruptcy law by a CEO who lived through the experience of a Chapter 11. The author exposes a system that is supposed to provide an opportunity for troubled companies to reorganize, but kills more than 70 percent of the businesses that take refuge in it while enriching legions of lawyers. In the nightmare world of Chapter 11, the gainers are seldom the creditors or the debtor company, but rather the bankruptcy bar, impeached in this book by its own conduct and the condemnation of its ethical brethren. Besides his own experience, the author draws examples from diverse industries including trucking, food, real estate, oil and publishing. Sol Stein, the author of this book, was the former CEO of now-defunct Stein and Day, one of the last independent American publishing houses operating in the 1980s. *********** 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 de los Santos, and Christian Toledo, Editors. Copyright 2007. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *