/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070817.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, August 17, 2007, Vol. 8, Issue 163 Headlines A R G E N T I N A AEROFLEX INC: Veritas Capital et. Al Acqusition Completed ALITALIA SPA: Air France-KLM Opens Door for Possible Talks BERRIES DE LA PENINSULA: Seeks for Reorganization OK in Court CONSULTORA KR: Trustee to File Individual Reports on Monday DADI ROLL: Proofs of Claim Verification Ends Today EMPRENDIMIENTOS VETERINARIOS: Reorganization Completed INTER REDES: Proofs of Claim Verification Deadline Is Monday LIMAYO SA: Proofs of Claim Verification Ends on Monday PLAMEC SAIC: Trustee Filing Individual Reports on Monday PUNTO ALEM: Creditors Voting on Settlement Plan on Monday TENNECO INC: Fitch Affirms BB- Issuer Default Rating VIPAK SRL: Creditors Voting on Settlement Plan on Monday B A R B A D O S ANDREW CORPORATION: Bags US$9 Million Geolocation Contract B E R M U D A J.P. MORGAN: Schedules Final General Meeting on Sept. 4 MAN MAC HAWKING: Final General Meeting Is on Sept. 28 MAN MAC VORAB: Creditors Must File Proofs of Claim by Aug. 22 MAN MAC JACKOBSHORN: Sets Final General Meeting for Sept. 28 STEINHARDT REALTY: Will Hold Final General Meeting on Sept. 5 B R A Z I L BANCO CRUZEIRO: Earns BRL48.2 Million in First Six Months BANCO NACIONAL: Inks Deal for Modenization of Tax Administration BANCO NACIONAL: Allocates BRL600 Mil. for Bus Fleet Expansion FORD MOTOR: Signs Purchase Deal with Linamar GENERAL MOTORS: Closes US$5.6 Billion Allison Transmission Sale GENERAL MOTORS: Paying US$0.25 Per Share Dividend on Sept. 10 GENERAL MOTORS: Joins A123Systems in Making Cells for Chevy Volt SANYO ELECTRIC: In Talks with Sharp & Kyocera on Sale of Unit TAM SA: Bars Planes from Landing at Congonhas After Crash TIMKEN CO: Bags US$6.5-Million Contract with Titagarh Wagons * BRAZIL: Gets US$2.1-Mil. Loan for Innovation Investment Fund * BRAZIL: Steps Up Purchase of U.S. Treasury Notes C A Y M A N I S L A N D S BAILEY COATES: Will Hold Final Shareholders Meeting on Sept. 7 CABLE & WIRELESS: Inks Network Services Accord with Virgin Group CHINA INVESTMENT: Sets Final Shareholders Meeting for Sept. 7 CONTEL PAGE: Will Hold Final Shareholders Meeting on Sept. 7 CREDIT CARDS: Proofs of Claim Filing Deadline Is Sept. 6 CYGNUS ASSET: Sets Final Shareholders Meeting for Sept. 6 FCT PACIFIC: Will Hold Final Shareholders Meeting on Sept. 6 FRONTIER IV: Sets Final Shareholders Meeting for Sept. 7 G-MAX 2002: Proofs of Claim Must be Filed by Sept. 6 GRIFFIN (CAYMAN): Proofs of Claim Filing Deadline Is Sept. 6 GSO CALMET: Will Hold Final Shareholders Meeting on Sept. 7 IVY MA: Will Hold Final Shareholders Meeting on Sept. 7 IVY MA HOLDINGS: Sets Final Shareholders Meeting for Sept. 7 M & M ARBITRAGE: Sets Final Shareholders Meeting for Sept. 6 MERRILL LYNCH: Will Hold Final Shareholders Meeting on Sept. 6 MERRILL LYNCH (USD): Final Shareholders Meeting Is on Sept. 6 MERRILL LYNCH (EURO): Sets Last Shareholders Meeting for Sept. 6 NEST FUNDING: Proofs of Claim Filing Ends on Sept. 7 NISHI-NIPPON: Proofs of Claim Filing Is Until Sept. 6 NISHI-NIPPON: Will Hold Final Shareholders Meeting on Sept. 6 PARMALAT SPA: Says U.S. Cases Independent from Dismissed Suits PURE IP: Sets Final Shareholders Meeting for Sept. 7 C H I L E ARAMARK CORP: S&P Revises B+ Corporate Credit Outlook to Stable SHAW GROUP: Energy & Chemicals Group Bags Contract in China THERMADYNE HOLDINGS: Strong Performance Cues S&P to Lift Rating C O L O M B I A DRUMMOND INC: S&P Affirms BB- Corporate Credit Rating ECOPETROL: Gov't Expects to Raise US$2.82 Bil. from Stake Sale C O S T A R I C A SPECTRUM BRANDS: Posts US$7.4 Mil. Net Loss in Qtr. Ended July 1 * COSTA RICA: Mayors Support Nation's Free Trade Pact with U.S. D O M I N I C A N R E P U B L I C AES CORP: Rockash Clean-Up To End in Two Weeks FLOWSERVE CORP: Moody's Affirms Ba3 Corporate Family Rating JETBLUE AIRWAYS: Launches US-Dominican Republic Holiday Shuttle * DOMINICAN REPUBLIC: Venezuela Offers To Build NatGas Plant E C U A D O R GEOKINETICS: Repurchase Cues Moody's to Withdraw All Ratings E L S A L V A D O R TARGUS GROUP: S&P Lowers Corp. Credit Rating to B- J A M A I C A DYOLL INSURANCE: Creditors Getting 2nd Payment Starting Sept. 3 GOODYEAR TIRE: Jamaican Unit Loses US$5 Mil. in First Six Months NATIONAL WATER: Says Rains Washed Out Some Pipelines M E X I C O ALESTRA: Fitch Affirms Issuer Default Ratings at B- ALLIS-CHALMERS: Inks New Employment Pacts with CEO & CFO AMERICAN AXLE: Robert Baird Maintains Underperform Rating BALLY TOTAL: Wants Pacts with Harbinger, et al. Approved BALLY TOTAL: Inks Pact Amending Morgan Stanley DIP Loan BENQ CORP: Mobile Unit Seeks EUR26 Million from Parent Firm BRISTOW GROUP: Paying US$0.68750 Per Share Dividend on Sept. 1 DUERR AG: Earns EUR45,000 for First Half 2007 DURA AUTOMOTIVE: Court OKs Sale of Atwood Mobile for US160.2 Mln DURA AUTOMOTIVE: Gets Court Nod on Backstop Rights Purchase Deal NUANCE COMMS: Prices US$220-Mil. Offer of Sr. Conv. Debentures ONEIDA LTD: Moody's Withdraws All Ratings RYERSON INC: Advises Stockholders to Reject Harbinger's Nominees SR TELECOM: June 30 Balance Sheet Upside-Down by CDN$14 Million TV AZTECA: Reaches Programming Deal with Power WARNACO INC: Moody's Affirms Ba3 Corporate Family Rating P U E R T O R I C O ADVANCED CARDIOLOGY: Hires Aviles Cruz as Special Counsel HORIZON LINES: Closes Tender Offer for Senior Notes HORIZON LINES: Morgan Keegan Reaffirms Outperform Rating on Firm T R I N I D A D A N D T O B A G O DFL CARIBBEAN: Fitch Affirms Ratings with Stable Outlook V E N E Z U E L A PETROLEOS DE VENEZUELA: Ramirez Denies Borco Sale Talks PETROLEOS DE VENEZUELA: Extends Bond Offering to Aug. 24 PETROLEOS DE VENEZUELA: Acquires 49% Stake in Petrojam SHAW GROUP: Finalizes US$1.1 Bil. Mirant Power Plants Contract * VENEZUELA: Belarus Asks for Help on US$456-Mil. Debt to Russia - - - - - ================= A R G E N T I N A ================= AEROFLEX INC: Veritas Capital et. Al Acqusition Completed --------------------------------------------------------- The acquisition of Aeroflex Incorporated by affiliates of or funds managed by The Veritas Capital Fund III, L.P., Golden Gate Private Equity, Inc. and Goldman, Sachs & Co. has been completed. The merger was approved by Aeroflex's shareholders at a meeting on July 26. Aeroflex shareholders will receive US$14.50 in exchange for the shares of Aeroflex common stock and will receive written instructions from the paying agent with respect to the proper method of exchanging stock certificates for the merger consideration. Pending receipt of such instructions, shareholders should not forward stock certificates to the Company. 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: Air France-KLM Opens Door for Possible Talks ---------------------------------------------------------- Air France-KLM welcomed talks over a possible acquisition of the Italian government's stake in Alitalia S.p.A., Thomson Financial reports. "We remain attentive and if we are contacted we will listen," Pierre-Henri Gourgeon, Air France-KLM Managing Director, was quoted by Thomson Financial as saying. As reported in the TCR-Europe on Aug. 9, 2007, Alitalia chairman Maurizio Prato commenced the search for potential bidders for the Italian government's stake in the troubled carrier, and may meet representatives for Air France-KLM, Lufthansa, and Aeroflot. The chairman has also started informal talks with TPG Inc., MatlinPatterson Global Advisers LLC and AirOne S.p.A. -- all bidders from the failed auction to privatize Italy's 39.9% stake. Italy terminated the sale process in July 2007 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 consortium was the last to drop out from the bidding melee after the team of OAO Aeroflot and Unicredit Italiano S.p.A. left the bidding process. A consortium of TPG Capital, MatlinPatterson Global Advisers LLC and Mediobanca S.p.A. had also pulled out from the race before MatlinPatterson re-entered with its own bid. The bidders had been apprehensive of the bidding conditions set by the Italian government and had cited these requirements as reasons for their withdrawal. 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 posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. BERRIES DE LA PENINSULA: Seeks for Reorganization OK in Court ------------------------------------------------------------- Berries de la Peninsula SA has requested for reorganization approval after failing to pay its liabilities beginning July 31, 2007. The reorganization petition, once approved by the court, will allow Berries de la Peninsula to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 22 in Buenos Aires. Clerk No. 43 assists the court on this case. The debtor can be reached at: Berries de la Peninsula SA Tte. Gral. B. Matienzo 1704 Buenos Aires, Argentina CONSULTORA KR: Trustee to File Individual Reports on Monday ----------------------------------------------------------- Cecilia Beatriz Montelvetti, the court-appointed trustee for Consultora KR y Asociados S.A.'s bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on Aug. 20, 2007. Ms. Montelvetti verified creditors' proofs of claim until June 25, 2007. A general report that contains an audit of Consultora KR's accounting and banking records will be submitted in court on Oct. 1, 2007. Ms. Montelvetti is also in charge of administering Consultora KR's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Cecilia Beatriz Montelvetti Gral. Urquiza 2134 Buenos Aires, Argentina DADI ROLL: Proofs of Claim Verification Ends Today -------------------------------------------------- Daniel Ernesto Altman, the court-appointed trustee for Dadi Roll SA's bankruptcy proceeding, verifies creditors' proofs of claim Aug. 17, 2007. Mr. Altman will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Dadi Roll 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 Dadi Roll's accounting and banking records will be submitted in court. Infobae did not state the reports submission date. Mr. Altman is also in charge of administering Dadi Roll's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Dadi Roll SA Hubac 6080/2 Buenos Aires, Argentina The trustee can be reached at: Daniel Ernesto Altman Parana 774 Buenos Aires, Argentina EMPRENDIMIENTOS VETERINARIOS: Reorganization Completed ------------------------------------------------------ Emprendimientos Veterinarios S.A.'s reorganization proceeding has ended. Data published by Infobae on its Web site indicated that the process was concluded after a court in Buenos Aires approved the debt agreement signed between the company and its creditors. The debtor can be reached at: Emprendimientos Veterinarios S.A. Larrazabal 252 Buenos Aires INTER REDES: Proofs of Claim Verification Deadline Is Monday ------------------------------------------------------------ Alicia Beatriz Benzer, the court-appointed trustee for Inter Redes SA's reorganization proceeding, verifies creditors' proofs of claim until Aug. 20, 2007. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 11, approved a petition for reorganization filed by Inter Redes, according to a report from Argentine daily La Nacion. Ms. Benzer will present the validated claims in court as individual reports. The court 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 Inter Redes 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 Inter Redes' accounting and banking records will be submitted in court. La Nacion did not state the reports submission dates. The debtor can be reached at: Inter Redes SA Chacabuco 1386 Buenos Aires, Argentina The trustee can be reached at: Alicia Beatriz Benzer Suipacha 576 Buenos Aires, Argentina LIMAYO SA: Proofs of Claim Verification Ends on Monday ------------------------------------------------------ Edith Norma Regazzoni, the court-appointed trustee for Limayo S.A.'s reorganization proceeding, verifies creditors' proofs of claim on Aug. 20, 2007. Ms. Regazzoni will present the validated claims in court as individual reports on Sept. 17, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Limayo 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 Limayo's accounting and banking records will be submitted in court on Oct. 30, 2007. The informative assembly will be held on March 27, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The trustee can be reached at: Edith Norma Regazzoni Carlos Pellegrini 465 Buenos Aires, Argentina PLAMEC SAIC: Trustee Filing Individual Reports on Monday -------------------------------------------------------- Victor Daniel Lamaison, the court-appointed trustee for Plamec S.A.I.C.'s bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Quilmes on Aug. 20, 2007. Mr. Lamaison verified creditors' proofs of claim until July 6, 2007. A general report that contains an audit of Plamec's accounting and banking records will be submitted in court on Sept. 28, 2007. Mr. Lamaison is also in charge of administering Plamec's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Victor Daniel Lamaison San Martin 730, Quilmes Buenos Aires, Argentina PUNTO ALEM: Creditors Voting on Settlement Plan on Monday --------------------------------------------------------- Punto Alem S.A.'s creditors will vote on a settlement plan that the company will lay on the table on Aug. 20, 2007. Ruben E. Martinez Madariaga, the court-appointed trustee for Punto Alem's reorganization proceeding, verified creditors' proofs of claim until Oct. 30, 2006. The National Commercial Court of First Instance in Buenos Aires handles the case. The debtor can be reached at: Punto Alem S.A. Alem 3440, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Ruben E. Martinez Madariaga Alberti 2735, Mar del Plata Buenos Aires, Argentina TENNECO INC: Fitch Affirms BB- Issuer Default Rating ---------------------------------------------------- Fitch Ratings has affirmed these ratings of Tenneco, Inc: -- Issuer Default Rating at 'BB-'; -- Senior secured revolver at 'BB+'; -- Senior secured term loan A at 'BB+'; -- Senior secured tranche B-1 LC/revolver 'BB+'; -- Senior secured second lien notes 'BB'; -- Senior subordinated notes at 'B'. The Rating Outlook remains Positive. The ratings cover approximately US$1.4 billion of debt. Fitch's ratings reflect Tenneco's solid revenue growth deriving from new product introductions and new business wins, continuing diversification away from the Detroit Three, good liquidity, and steady underlying margin performance in the midst of difficult industry conditions. The company's operating discipline, product launches, and working capital management over the past several years are also positive credit factors. Credit concerns include modest free cash flow, declining market share and volumes of the company's D3 customers, pricing pressures and commodity cost pressures. The Rating Outlook is Positive given Tenneco's expected revenue growth, margin performance, EBITDA growth and strong competitive position in growth product areas such as air quality and safety products. Capital expenditure levels and working capital requirements are expected to limit free cash flow in 2007, and debt reduction will be modest. Fitch expects that continued growth in EBITDA will expand free cash flow generation over time, which will be a key factor for a review of the rating for an upgrade. Tenneco has been able to offset the challenges facing the automotive industry with increased revenue from new business launched, gains in manufacturing efficiency, close attention to working capital requirements and a geographically diverse customer base compared with other North American suppliers. Over the previous three years, Tenneco's North American EBITDA margin has been 10% or better, an impressive result considering the drop in D3 production volume and commodity cost inflation during the same time period. The total amount of Tenneco's new business backlog is approximately US$1.3 billion through 2009, about US$1 billion of which is expected to be launched this year. Exhaust systems compose the majority of the new business being launched, including diesel particulate filters, which represent a strong growth opportunity. Currently, Tenneco has 14 car models equipped with its DPF technology and the company is scheduled to launch eight more in 2007. In its ride control business, the company has been awarded business for its computerized electronic suspension on the Audi A6, several Volvo models and three additional undisclosed European OEM vehicle platforms. Over the longer term, Tenneco should benefit from more strict air quality standards and demand for safety related products. Total debt-to-EBITDA was 3.3 times at the end of the second quarter 2007 (2.9x debt net of cash), only slightly lower than the year-end level of 3.4x but down substantially from 4.7x in 2002. Management's stated long-term objective is to achieve net debt-to-EBITDA of 2x. The company generated only modest free cash flow of US$22 million in 2006, albeit in a difficult industry environment. After an increase in working capital investment, LTM free cash flow at the end of the second quarter was (US$56) million. Tenneco's working capital position remains relatively healthy versus the industry, supplemented by a current cash level of US$168 million. Fitch expects Tenneco to be slightly free cash flow positive in 2007 with the potential for further improvement in 2008. The escalation in commodity costs, especially stainless steel for exhaust systems, has moderated relative to the previous three years. However, Tenneco expects the full year 2007 gross negative impact from steel to be US$85 to US$90 million. Tenneco will be challenged to fully offset the negative impact with cost reduction initiatives, material substitutions, low- cost country sourcing, aftermarket price increases and OEM customer recoveries. At the end of the second quarter 2007, total liquidity was approximately US$582 million, including cash and marketable securities balance of US$168 million. Tenneco had US$302 million of availability under its US$550 million revolver and approximately US$106 million available after US$24 million in outstanding letters of credit under its Tranche B-1 facility. The company also has a U.S. securitization facility of approximately US$100 million, of which only US$6 million was available at the end of the quarter. In addition, Tenneco had US$54 million outstanding under its uncommitted European receivable facilities, the availability of which Fitch does not include in liquidity since the facility is cancelable at any time. Tenneco has no exposure to refinancing risk given that the company's credit facility was refinanced in March this year and that the company has no significant debt maturities until after 2011. Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) -- http://www.tenneco.com/-- manufactures automotive ride and emissions control products and systems for both the original equipment market and aftermarket. Brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany. VIPAK SRL: Creditors Voting on Settlement Plan on Monday -------------------------------------------------------- Vipak S.R.L.'s creditors will vote on a settlement plan that the company will lay on the table on Aug. 20, 2007. Abel Latendorf, the court-appointed trustee for Vipak's reorganization proceeding, verified creditors' proofs of claim until Sept. 29, 2006. The National Commercial Court of First Instance No. 14 in Buenos Aires handles the case, with the assistance of Clerk No. 28. The debtor can be reached at: Vipak S.R.L. Mexico 3543 Buenos Aires, Argentina The trustee can be reached at: Abel Latendorf Piedras 153 Buenos Aires, Argentina =============== B A R B A D O S =============== ANDREW CORPORATION: Bags US$9 Million Geolocation Contract ---------------------------------------------------------- Andrew Corporation has been awarded the third phase of a strategic multiyear contract from a Tier 1 operator in the Middle East for a major geolocation system deployment. The phase three contract awards are valued at approximately US$9 million, bringing the total contract value to date to more than US$30 million. It represents continued expansion of the project in which Andrew is installing its Geometrix(R) uplink time difference of arrival (U-TDOA) system that, when completed, will cover a network of thousands of cell sites. Work on phase three will begin as the second phase nears completion. "We are pleased to continue our work on this important project, and appreciate the confidence placed in the performance and dependability of our geolocation offerings," said Terry Garner, group president, Andrew Network Solutions. "Geometrix continues to deliver unrivaled capabilities in supporting the global mobile location requirements of operators anywhere in the world." U-TDOA is a network-based means of determining a mobile device's position by comparing and calculating the difference in time required for its signal to reach different base station transceiver sites. Andrew Geometrix also supports the other handset-based and network-based wireless location methods- assisted global positioning system in both mobile-based and mobile-assisted versions, multiple versions of enhanced cell identity (E-CID), and cell identity (CID)-and includes secure user plane location and control plane location capabilities. In addition to solutions for traditional wireless networks, Andrew also addresses caller location for new technologies such as WiMAX and voice over IP. Geometrix, the world's most complete and versatile high- performance wireless location system, provides unprecedented cost-effectiveness and ease of operation as operators address the evolution to next generation applications for future location-based services with minimum risk or changes to existing network infrastructure. Andrew's solution consolidates location system elements onto a single platform that lowers cost and eases operator introduction of new revenue-generating services, while simplifying operations. Deployed worldwide by operators of all sizes, Andrew's Geometrix location systems offer the world's most advanced array of standards-compliant, fully-interoperable locating options in a single carrier-grade system, including Serving Mobile Location Centers, Gateway Mobile Location Centers, Stand-Alone SMLC, and SUPL Location Platform. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including China, India, Italy, Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. * * * As reported on June 29, 2007, Standard & Poor's Ratings Services revised its CreditWatch implications on Andrew Corp. to positive from negative. The 'BB' corporate credit and 'B+' subordinated debt ratings were placed on CreditWatch with negative implications on Aug. 10, 2006. ============= B E R M U D A ============= J.P. MORGAN: Schedules Final General Meeting on Sept. 4 ------------------------------------------------------- J.P. Morgan Corsair II Capital Partners Bermuda Ltd.'s final general meeting is scheduled on Sept. 4, 2007, at 9:30 a.m., at: Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. MAN MAC HAWKING: Final General Meeting Is on Sept. 28 ----------------------------------------------------- Man Mac Hawkwing 17A Ltd.'s final general meeting is scheduled on Sept. 28, 2007, at 9:30 a.m., at: Argonaut House, 5 Park Road Hamilton HM O9, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. MAN MAC VORAB: Creditors Must File Proofs of Claim by Aug. 22 ------------------------------------------------------------- Man Mac Vorab 6B Ltd.'s creditors are given until Aug. 22, 2007, to prove their claims to Beverly Mathias, 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. Man Mac's shareholders agreed on Aug. 6, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda MAN MAC JACKOBSHORN: Sets Final General Meeting for Sept. 28 ------------------------------------------------------------ Man Mac Jackobshorn 8B Ltd.'s final general meeting is scheduled on Sept. 28, 2007, at 9:30 a.m., at: Argonaut House, 5 Park Road Hamilton HM O9, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. STEINHARDT REALTY: Will Hold Final General Meeting on Sept. 5 ------------------------------------------------------------- Steinhardt Realty Fund Ltd.'s final general meeting is scheduled on Sept. 5, 2007, at 9:30 a.m., at: Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. =========== B R A Z I L =========== BANCO CRUZEIRO: Earns BRL48.2 Million in First Six Months --------------------------------------------------------- Banco Cruzeiro do Sul disclosed that its first half of 2007 net income, excluding non-recurring expenses related to the IPO, totaled BRL48.2 million, up 252% compared to last year's BRL13.7 million. In the first six months of 2007, gross income from financial intermediation was BRL297 million, 192.4% higher than in the same period last year. The company reported that the balance of expenses with the provision for loan losses rose 59% versus a year ago, despite the expansion of 201.7% year on year in the loan portfolio. The loan portfolio, including surety bonds and guarantees, accounts receivable and subordinated shares in FIDCs in the Securities line, totaled BRL2,031.9 million on June 30, 2007, up 201.7% year on year (BRL673.4 million). Paycheck-deductible personal loans posted consistent growth, with origination of BRL1,571.4 million in the first half of 2007 and monthly average of BRL262 million, expanding by 149.6% versus the first half of 2006 (BRL629.7 million). The corporate loan portfolio in the middle-market segment posted consistent growth to BRL239.6 million in the first half of 2007, up 72.5% year on year (BRL138.9 million). The paycheck-deductible credit card posted consistent growth to 544,097 cards in the first half of 2007, up 220.5% on a year ago (169,754 cards). In June 2007, the volume financed was BRL102.6 million. Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul's core business is lending to civil servants, with payments automatically deducted from payrolls. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 4, 2006, Moody's Investors Service upgraded Banco Cruzeiro do Sul SA's long-term foreign currency deposits to Ba3 from Ba1. Moody's said the rating outlook was stable. BANCO NACIONAL: Inks Deal for Modenization of Tax Administration ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES' president Luciano Coutinho, and of Caixa Economica Federal, Maria Fernanda Ramos Coelho, have signed an agreement Tuesday, in Brasilia, allowing that Caixa starts to operate, for BNDES, the actions of the Program for Modernization of Tax Administration. As PMAT representative for BNDES, Caixa will proceed to transfers, collections and, mainly, will render technical assistance to municipalities, both for elaboration and execution of the program. Previously, this role had been played only by Banco do Brasil. PMAT funds are from BNDES and Caixa will act in different levels of the program, focusing in special small and large municipalities. Initially, Caixa will rely on a BRL50 million revolving budget. The municipalities which be potential clients of the program are those which seek management modernization, present an economically exploitable potential of own revenues or significantly increased cost productivity, in special in basic social sectors. Eligible for financing with PMAT funds are projects for acquisition of information technology and computer equipment projects; capacitation of human resources; specialized technical services for the development of project activities; and the physical infrastructure, as adequation of environment and improvement of facilities. The maximum financing foreseen within the program is of BRL30 million for large municipalities, being also a parameter to reach the loan limit the amount of BRL 18.00 per inhabitant or 7% the actual net revenue. PMAT was created in August 1997 as a technical and financial support instrument for the modernization of municipal administrations. Initially, its operations were focused on tax, financial and patrimonial activities, with the context of the Law of Fiscal Responsibility. In 1999, actions addressed to improved efficiency of public expenses and increased efficiency of health, education, social assistance and general administration sector performance were incorporated to the program. Currently, PMAT has an active portfolio which counts accounts for 352 operations, for a total BRL773.5 million financings, BRL235 million of which in direct operations and mandates, and BRL538 million in direct operations. Within the program active portfolio, 53% of the operations were for municipalities of up to 50 thousand inhabitants. Since its creation, PMAT has been increasing the transparency of the public administration, besides promoting enhancement of the citizenship, qualification of public policies and providing companies with a better business environment. With the signature of this agreement, BNDES reinforces its role of development agent, offering to municipalities larger financial, technical and institutional capacity, which are strategic factors for the performance of the Bank. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. BANCO NACIONAL: Allocates BRL600 Mil. for Bus Fleet Expansion ------------------------------------------------------------- President Luiz Inacio Lula da Silva, Banco Nacional de Desenvolvimento Economico e Social president, Luciano Coutinho and the Ministry of Education, Fernando Haddad, launched last Tuesday at Palacio do Planalto, the program Caminho da Escola [Route to School], a partnership of BNDES with the Ministry of Education and the National Education Development Fund. The objective is to renew and expand the fleet of vehicles for the daily transportation of basic education students brought from the rural zone, with credit to states, municipalities and the Federal District for the acquisition of new vehicles. The program brings a set of innovations, as tax exemption on the purchase of school vehicles and standard specifications throughout the country, assuring safe transportation of students and fighting school evasion. BRL300 million will be allocated so that public institutions that support elementary education schools may receive financings of up to 100% of the value, for the purchase of standard school buses, with 23, 31 and 44 seats, besides new vessels for transportation of rural zone students. The financing cost will be TJLP (Long-Term Interest Rate), currently at 6.25% per year, plus 1% BNDES basic remuneration, added of up to 3% as accredited financial institution remuneration. There is no financial intermediation fee. The total financing term will be of up to 72 months, including a grace period of up to six months, with monthly amortizations. Proescolar -- In addition to Caminho da Escola, BNDES also launches the Financing Program for the Acquisition of School Transportation Vehicles -- Proescolar, with a BRL300 million budget, so that private and public entities carrying out elementary school activities or school transportation may finance, up to 100% of the value, the purchase of school buses. Within the Proescolar the total financing cost will be calculated with basis on the TJLP (6.25% per year), added of BNDES basic remuneration (1% per year) and the remuneration of the financial institution to be negotiated with the beneficiary. For large companies (annual invoicing in excess of BRL60 million) there will still be the financial intermediation fee (0.8% per year). Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. FORD MOTOR: Signs Purchase Deal with Linamar -------------------------------------------- Ford Motor Company and Linamar Corporation entered into a Definitive Agreements for the sale of the Automotive Components Holdings' Power Transfer Unit business and its Converca I Plant in Nuevo Laredo, Mexico. The sales transaction is expected to be completed on Sept. 1. The ACH Converca I Plant is among the leading manufacturers of PTUs in the North American auto industry. As part of the deal, assets of the plant will be transferred to Linamar. The plant employs about 500 employees. Other products produced at the plant are propshafts, stabilizer bars and steering gears. Stabilizer bar production is scheduled to end late this year, while the propshaft and steering gear production will continue to be manufactured at Converca for the immediate future. "This sale is another demonstration of our commitment to achieve the material cost goals in our Way Forward strategy," said Mark Fields, president of The Americas and Ford executive vice president. "This is critical as we work toward our goal of profitability in North America by 2009." The sale will be the second for ACH this year. The first sale, announced in April, involved the fuel rail business and the ACH Mexican subsidiary in El Jarudo. MOUs have been signed and discussions are underway for the sale of six other plants and one business from a seventh plant. "We remain focused on selling or idling our operations," said Al Ver, ACH CEO and COO and Ford Motor Company vice president. "We are pleased with our progress, but aware that we still have much to do in a short time." About Automotive Components ACH is a temporary company, managed and established by Ford Motor Company in October 2005 to ensure the flow of quality components and systems to Ford while ACH prepared its component operations for sale or idling. Today, the US$4 billion company is supported by about 12,000 people including about 6,000 UAW employees leased from Ford. 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. The company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * In July 2007, Moody's Investors Service said that the performance of Ford Motor Company's global automotive operations for the second quarter of 2007 was significantly stronger than the previous year and better than street expectations. However, Moody's explained that the company continues to face significant competitive and financial challenges, and the rating agency expects that Ford's credit metrics and rate of cash consumption will likely remain consistent with no higher than a B3 corporate family rating level into 2008. According to the rating agency, Ford's corporate family rating is currently a B3 with a negative outlook. The rating is pressured by the shift in consumer preference from high margin trucks and SUVs, and by the need for a new 2007 UAW contract that provides meaningful relief from high health care costs and burdensome work rules, Moody's relates. GENERAL MOTORS: Closes US$5.6 Billion Allison Transmission Sale --------------------------------------------------------------- General Motors Corp. has completed the sale of its Allison Transmission commercial and military business to The Carlyle Group and Onex Corporation for about US$5.6 billion. The company expects to use the funds to strengthen liquidity and support heavy investments in new products and technology, such as its continued energy diversity initiatives. Allison Transmission designs and manufactures automatic transmissions for medium and heavy duty commercial vehicles. Its products are used in on-highway, off-highway and vehicles. Headquartered in Indianapolis, Indiana, Allison Transmission employs approximately 3,400 people, has seven plants in Indianapolis and sells its transmissions through a worldwide distribution network with sales offices in North America, South America, Europe, Africa and Asia. The company generates annual revenues in excess of US$2 billion. About Carlyle Group The Carlyle Group -- http://www.carlyle.com/-- is a private equity firm with US$58.5 billion under management. Carlyle invests in buyouts, venture & growth capital, real estate and leveraged finance in Asia, Europe and North America, focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested US$28.3 billion of equity in 636 transactions for a total purchase price of US$132 billion. The Carlyle Group employs more than 800 people in 18 countries. In the aggregate, Carlyle portfolio companies have more than US$87 billion in revenue and employ more than 286,000 people around the world. About Onex Onex Corp. makes private equity investments through the Onex Partners and ONCAP family of Funds. These companies are in a variety of industries, including electronics manufacturing services, aerostructures manufacturing, healthcare, financial services, aircraft & aftermarket, metal services, customer management services, theatre exhibition, personal care products and communications infrastructure. About General Motors 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 and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, 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. GENERAL MOTORS: Paying US$0.25 Per Share Dividend on Sept. 10 ------------------------------------------------------------- General Motors Corp. has disclosed a third-quarter dividend of US$0.25 per share on GM common stock. The dividend is payable Sept. 10, 2007, to holders of record as of Aug. 17, 2007. The dividend is unchanged from the previous quarter. 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 and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, 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. GENERAL MOTORS: Joins A123Systems in Making Cells for Chevy Volt ---------------------------------------------------------------- General Motors Corp. and A123Systems, Inc., will co-develop cells with A123System's nanophosphate battery chemistry for a long-lasting, safe and powerful battery for use in GM's electric drive E-Flex system. The agreement is expected to expedite the development of the batteries for both electric plug-in vehicles and fuel cell variants of the E-Flex architecture. "Breakthrough battery technology will drive future automotive propulsion, and the company that aligns with the best strategic partners will win. That's what is so important about this deal," said Bob Lutz, GM vice chairman of Global Product Development. "Whether you're talking about the Chevy Volt, a fuel cell or even a plug-in hybrid such as our planned Saturn Vue, we need to understand the fundamental battery cell performance." The contract calls for A123Systems, of Watertown, Massachusetts, to develop battery cells to meet the specific requirements of GM's E-Flex system. A123Systems is considered a forerunner in the development of nanophosphate-based cell technology, which, compared to other lithium-ion battery chemistries, provides higher power output, longer life and safer operations over the life of the battery. The E-Flex electric vehicle architecture was first shown in the Chevy Volt concept car revealed earlier this year. For average commuters driving 40 miles, the Chevy Volt will use zero gasoline and produce zero emissions and could nearly eliminate going to the gas station altogether. "The Chevy Volt will lead the automotive industry in a new direction," Mr. Lutz said. "We see a future where vehicles run on electricity and are equipped with clever ways of making electricity on board, making us less dependent on gasoline. It's the next great paradigm shift in our industry, an opportunity largely due to the rapid advancement in battery cell technology by companies such as A123Systems and LG Chem." Earlier this year, GM awarded two contracts for advanced development of battery packs, which require the integration of multiple battery cells, to Compact Power, Inc., a subsidiary of Korean battery manufacturer LG Chem, based in Troy, Michigan; and Frankfurt, Germany-based Continental Automotive Systems, a division of Continental A.G., a tier one automotive supplier. Under these agreements, one contract was awarded to CPI, which will use battery cells developed by parent company LG Chem. A separate contract was issued to Continental, which will use the cells being co-developed by GM and A123Systems. "A123Systems and LG Chem are both top-tier battery suppliers, with proven technologies," said Denise Gray, director of GM's Energy Storage Devices and Strategies. "We're confident one, or possibly both of these companies' solutions will meet our battery requirements for the E-Flex system." Dave Vieau, A123System's chief executive officer, said this type of battery will be advantageous in other transportation industries as well. "We're talking today about the Volt and implications that it will have on the electrification of passenger vehicles, but the technology goes a lot further than that," Mr. Vieau said. "The weight, size, safety and performance of these batteries have implications on all transportation, including hybrid buses, trucks and aircraft." A123Systems currently manufactures over ten million cells annually making it the world's largest producer of batteries with nanophosphate chemistry. Most of these cells are used in rechargeable power tools. 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 and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, 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. SANYO ELECTRIC: In Talks with Sharp & Kyocera on Sale of Unit ------------------------------------------------------------- Sanyo Electric Co., Ltd., is separately negotiating with Sharp Corp. and Kyocera Corp. about selling its mobile phone arm -- Telecom Sanyo Co. -- in the hope of concluding a deal by the end of 2007, the Japan Times reports, citing industry sources. According to the report, Sanyo plans to pull out of the cell phone business to focus on core areas such as rechargeable batteries and commercial-use equipment. Telecom Sanyo, Japan Times says, booked an operating loss for the first time in the business year through March 31 due mainly to appraisal losses over inventories. It also recorded a deficit in the April-June period on sales of JPY47.6 billion, down 42% from the year before, due to sluggish domestic sales. The company had to revise downward its global sales target for the business year through next March to 11 million handsets from an initial 12.5 million. The report points out that Sharp and Kyocera are believed to be interested in Sanyo's technology as well as its overseas sales networks. However, Sanyo and the two companies have not finalized agreements due to various conditions, including the price, according to the sources. Sanyo is considering advancing negotiations by putting the sale out to tender, Japan Times cites its sources as saying. The TCR-AP reported on Aug. 3 that Sanyo had explained that Telecom Sanyo is solely a retail operator, and has no relation to its mobile phone manufacturing business, after reports spread that Sanyo is planning to sell its mobile phone handset production business. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. TAM SA: Bars Planes from Landing at Congonhas After Crash --------------------------------------------------------- TAM has prevented its planes from landing at the Congonhas airport in Sao Paulo, where a crash occurred, the Associated Press reports. TAM aircrafts won't land at the Congonhas airport in Sao Paulo when their "thrust reversers" aren't activated, the AP says, citing TAM's head of security Marco Aurelio Castro. Aircrafts use thrust reversers to slow down just after touching down. The report says that a thrust reverser was deactivated on the TAM Airbus A320, which crashed into a cargo building after speeding off a Congonhas runway, killing 187 passengers and 12 people on the ground. TAM said in a statement that the measure will be implemented until "more detailed information" on the causes of the accident is available. TAM told the AP that in some cases, "the landings with a thruster deactivated" will be allowed, after consultation with the aircraft's maker and the Brazilian Aviation Authority. Meanwhile, TAM doesn't think that a deactivated thruster caused the crash, the AP says, citing Mr. Castro. It said its planes had flown without a thrust reverser based on government-approved safety measures. According to the airline, it followed Airbus maintenance rules that indicated that the plane was safe to fly. TAM doesn't let its planes to land without thrust reversers being activated at the Santos Dumont airport's short runway in Rio de Janeiro, Mr. Castro told the AP. A congressional panel is conducting a probe on the crash, the AP 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. TIMKEN CO: Bags US$6.5-Million Contract with Titagarh Wagons ------------------------------------------------------------ The Timken Company has received a US$6.5 million contract to supply rail bearings for freight cars built by Titagarh Wagons Ltd. in India. Titagarh has ordered Timken(R) APTM Class E tapered bearings, which enable rail users to carry heavier loads with more stability. Titagarh is the second-largest private builder of freight cars in India. The rail bearings are being manufactured at Timken's production facility in Jamshedpur, India. As part of its ongoing investment in India, Timken plans to open a second Indian production facility in Chennai in 2008. "Timken's strategy of investing in India is to serve our global customers and also to gain new local customers such as Titagarh Wagons in this rapidly developing market," said David L. White, director of sales and marketing for Timken's operations in India. "Our past experience with Timken has shown us they make outstanding products, and we also value their follow-up service after the sale," said J.P. Chowdhary, chairman and managing director of Titagarh Wagons Ltd. "Our relationship with Timken makes us more competitive, and we also appreciate their reputation for adhering to high ethical standards." About Titagarh Wagons Titagarh Wagons Ltd. -- http://www.titagarh.biz/-- is one of the largest private sector manufacturers of freight wagon units for Indian and some overseas railways. TWL is a heavy engineering goods manufacturing company in Kolkata, India. TWL manufactures a wide range of freight wagons, container flats and specialty wagons for industrial and defense use. TWL manufactures Bailey Bridges, prefabricated shelters and similar systems for the railways and the defense sector. TWL also manufactures Heavy Earthmoving Equipment including Heavy Duty Mobile Cranes and Excavators. About Timken Co. Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America, Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000 employees. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 15, 2007, Moody's Investors Service affirmed Timken's Ba1 corporate family rating and the Ba1 rating on Timken's US$300 million Medium Term Notes, Series A. * BRAZIL: Gets US$2.1-Mil. Loan for Innovation Investment Fund -------------------------------------------------------------- The Inter-American Development Bank has approved a US$2.1 million financing to Capital Tech, created as an innovation investment fund to foster small and medium-sized technology enterprises in Brazil through venture capital. The Multilateral Investment Fund financing will include a US$2 million reimbursable financing for the fund capitalization and a US$100,000 grant for technical cooperation. The fund will also receive contributions from private and institutional investors. The Capital Tech investment fund will be established in Brazil as Fundo Mutuo de Investimento em Empresas Emergentes and will be managed by Invest Tech Gestao de Recursos (Investech). Investments are likely to be located in Sao Paulo and Rio de Janeiro. Targeted industries include telecommunications, software, hardware, biotechnology, entertainment, manufacturing and services. "The project will support a new venture capital management team and its first venture capital fund, which will provide equity and convertible debt financing and technical advisory and help in governance to 8 to 12 technology small and medium-sized enterprises with potential to provide its investors with exits via strategic sales, consolidation or the Bovespa Mais market," said MIF team leader Rogerio Ramos. "Capital Tech will invest in innovative information technology and service provider companies that offer new technology solutions or concepts to different industries with potential to expand to local and even international markets," explained Ramos. "The fund will look for companies with technical, operational, commercial or financial synergies that will improve both the quality of the portfolio and exit strategies, the selling of shares in the different companies the fund invests in." Investech is a joint venture between Grupo Perrotti and Blackstone Servicos e Participacoes. Grupo Perrotti was founded in 1977 and it was one of the pioneers in Brazil and Latin America to implement information technology infrastructure. Blackstone was created in 2003 as a business developer and advisory service provider looking into partnerships or mergers within the information technology industry. Its services include business plan development and implementation; financial, legal and operational advisory services; and search for potential buyers or partners. MIF, an autonomous fund administered by the IDB, supports private sector development in Latin America and the Caribbean, focusing on microenterprise and small business. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. As reported on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on its long-term ratings on the Federative Republic of Brazil to positive from stable. Standard & Poor's also affirmed these ratings on the Republic of Brazil: -- 'BB' for long-term foreign currency credit rating, -- 'BB+' for long-term local currency credit rating, and -- 'B' for short-term currency sovereign credit rating. * BRAZIL: Steps Up Purchase of U.S. Treasury Notes -------------------------------------------------- The Brazilian government has purchased more U.S. Treasury Notes as China, the biggest American debt buyer, has started to reduce its exposure. Bloomberg News says that the South American nation's securities rose US$41.5 billion to a record of US$93.6 billion in the first half of this year. Brazil's ranking has gone up to five from 10th in 2006. "I would expect the Brazilian central bank to continue intervening and to buy Treasuries," Nuno Camara, an economist who covers Brazil for Dresdner Kleinwort in New York, was quoted by Bloomberg as saying. "Unlike some Asian central banks that are moving toward some diversification, Brazil can't really take on too much risk, so they put it in Treasuries." According to Bloomberg, Brazil, being the biggest debtor among developing nations, needs to beef up its reserves buildup on dollar bonds because most of the country's government and corporate foreign liabilities are in the U.S. currency. * * * As reported on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on its long-term ratings on the Federative Republic of Brazil to positive from stable. Standard & Poor's also affirmed these ratings on the Republic of Brazil: -- 'BB' for long-term foreign currency credit rating, -- 'BB+' for long-term local currency credit rating, and -- 'B' for short-term currency sovereign credit rating. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. =========================== C A Y M A N I S L A N D S =========================== BAILEY COATES: Will Hold Final Shareholders Meeting on Sept. 7 -------------------------------------------------------------- Bailey Coates (Cayman) Ltd. will hold its final shareholders meeting on Sept. 7, 2007, at 10:00 a.m., at the office of the company. 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: Gordon I. Macrae Attention: Korie Drummond Kroll (Cayman) Limited 4th Floor Bermuda House, Dr. Roy's Drive Grand Cayman, Cayman Islands Tel: (345) 946-0081 Fax: (345) 946-0082 CABLE & WIRELESS: Inks Network Services Accord with Virgin Group ---------------------------------------------------------------- Dave Friedlos at vnunet.com reports that Cable & Wireless has signed a multimillion-pound, three-year deal to provide data communications services to Virgin Group. According to vnunet.com, the contract "includes the provision of virtual private network services over Internet protocol to 130 sites, managed security, WiFi and application monitoring systems." The report says that Cable & Wireless will provide the services to all firms belonging to the Virgin Group, including: -- Virgin Trains, -- Virgin Atlantic, and -- Virgin Active. Virgin Group Chief Information Officer Gareth Lewis told vnunet.com that the increased bandwidth will: -- let Virgin Atlantic's applications to work more effectively, -- allow Virgin Trains to upgrade its business technology, and -- provide more robust real-time systems to Virgin Active. Mr. Lewis commented to vnunet.com, "We are a complex business, made up of a diverse number of different companies, each with very specific requirements." Virgin Group will be able to concentrate on its core business by outsourcing data communication services, vnunet.com states, citing Mr. Lewis. About Virgin Group Virgin is a venture capital organization. Established in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow businesses in sectors ranging from mobile telephony, to transportation, travel, financial services, leisure, music, holidays, publishing and retailing. It has created more than 200 companies worldwide, employing approximately 50,000 people, in 29 countries. About Cable & Wireless Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% CHINA INVESTMENT: Sets Final Shareholders Meeting for Sept. 7 ------------------------------------------------------------- The China Investment Company will hold its final shareholders meeting on Sept. 7, 2007, at 10:30 a.m., at: 450 Park Avenue, Suite 3201 New York, New York 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: Jack N Mayer The China Investment Company Limited Attention: Jerome M Balsam 3rd Floor, 36C Bermuda House Dr Roy's Drive, George Town Grand Cayman, Cayman Islands Telephone: 1 212 838 7200 CONTEL PAGE: Will Hold Final Shareholders Meeting on Sept. 7 ------------------------------------------------------------ Contel Page International Inc. will hold its final shareholders meeting on Sept. 7, 2007, at 10:00 a.m., at the office of the company. 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: David A.K. Walker Attention: Jodi Jones P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Tel: (345) 914 8694 Fax: (345) 945 4237 CREDIT CARDS: Proofs of Claim Filing Deadline Is Sept. 6 -------------------------------------------------------- Credit Cards Two creditors are given until Sept. 6, 2007, to prove their claims to Kareem Robinson and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Credit Cards' shareholders agreed on July 23, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Emile Small Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands CYGNUS ASSET: Sets Final Shareholders Meeting for Sept. 6 --------------------------------------------------------- Cygnus Asset Management Ltd. will hold its final shareholders meeting on Sept. 6, 2007, at 10:00 a.m., at: P.O. Box 1234 Queensgate House, South Church Street, Grand Cayman KY1-1108 Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) 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: Ogier Attention: Angus Davison P.O. Box 1234 Queensgate House, South Church Street, Grand Cayman KY1-1108 Cayman Islands Tel: (345) 949 9876 Fax: (345) 949 1986 FCT PACIFIC: Will Hold Final Shareholders Meeting on Sept. 6 ------------------------------------------------------------ FCT Pacific Equities Ltd. will hold its final shareholders meeting on Sept. 6, 2007, at: Boundary Hall, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Jan Neveril Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands FRONTIER IV: Sets Final Shareholders Meeting for Sept. 7 -------------------------------------------------------- Frontier IV Ltd. will hold its final shareholders meeting on Sept. 7, 2007, at 11:00 a.m., at the office of the company. 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 liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands G-MAX 2002: Proofs of Claim Must be Filed by Sept. 6 ---------------------------------------------------- G-MAX 2002 FL-A Ltd.'s creditors are given until Sept. 6, 2007, to prove their claims to Helen Allen and Joshua Grant, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. G-MAX 2002's shareholders agreed on July 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: Helen Allen Joshua Grant Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands GRIFFIN (CAYMAN): Proofs of Claim Filing Deadline Is Sept. 6 ------------------------------------------------------------ Griffin (Cayman Islands) LLC's creditors are given until Sept. 6, 2007, to prove their claims to Joshua Grant, Jan Neveril, James Bearden, James Conaway and Jean Pougnier, 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. Griffin's shareholders agreed on July 11, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant Jan Neveril Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands GSO CALMET: Will Hold Final Shareholders Meeting on Sept. 7 ----------------------------------------------------------- GSO Calmet Holdings (Cayman) Ltd. will hold its final shareholders meeting on Sept. 7, 2007, at 9:00 a.m., at the office of the company. 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 liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Ltd., Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands IVY MA: Will Hold Final Shareholders Meeting on Sept. 7 ------------------------------------------------------- Ivy Ma Holdings Cayman 5 Ltd. will hold its final shareholders meeting on Sept. 7, 2007, at 9:30 a.m., at the office of the company. 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 liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Ltd., Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands IVY MA HOLDINGS: Sets Final Shareholders Meeting for Sept. 7 ------------------------------------------------------------ Ivy Ma Holdings Cayman 8 Ltd. will hold its final shareholders meeting on Sept. 7, 2007, at 10:00 a.m., at the office of the company. 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 liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Ltd., Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands M & M ARBITRAGE: Sets Final Shareholders Meeting for Sept. 6 ------------------------------------------------------------ M & M Arbitrage Offshore Ltd. will hold its final shareholders meeting on Sept. 6, 2007, at 10:00 a.m., at: Walker House, 87 Mary Street George Town, KY1-9001 Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) 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: M & M Partners, LLC Bank of America Corporate Center 100 N. Tryon Street, Suite 5130 Charlotte, North Carolina 28202 U.S.A. MERRILL LYNCH: Will Hold Final Shareholders Meeting on Sept. 6 -------------------------------------------------------------- Merrill Lynch European Equity Hedge Fund Ltd. will hold its final shareholders meeting on Sept. 6, 2007, at: Boundary Hall, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Jan Neveril Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands MERRILL LYNCH (USD): Final Shareholders Meeting Is on Sept. 6 ------------------------------------------------------------- Merrill Lynch European Equity Hedge Fund (Usd) Ltd. will hold its final shareholders meeting on Sept. 6, 2007, at: Boundary Hall, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Jan Neveril Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands MERRILL LYNCH (EURO): Sets Last Shareholders Meeting for Sept. 6 ---------------------------------------------------------------- Merrill Lynch European Equity Hedge Fund (Euro) Ltd. will hold its final shareholders meeting on Sept. 6, 2007, at: Boundary Hall, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Jan Neveril Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands NEST FUNDING: Proofs of Claim Filing Ends on Sept. 7 ---------------------------------------------------- Nest Funding Corp.'s creditors are given until Sept. 7, 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. Nest Funding's shareholders agreed on July 15, 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, 9F1-1 Marunouchi 3-chome Chiyoda-ku, Tokyo NISHI-NIPPON: Proofs of Claim Filing Is Until Sept. 6 ----------------------------------------------------- Nishi-Nippon Preferred Capital (Cayman) Ltd.'s creditors are given until Sept. 6, 2007, to prove their claims to Guy Major and Jan Neveril, 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. Nishi-Nippon's shareholders agreed on July 25, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Jan Neveril Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman NISHI-NIPPON: Will Hold Final Shareholders Meeting on Sept. 6 ------------------------------------------------------------- Nishi-Nippon Preferred Capital (Cayman) Ltd. will hold its final shareholders meeting on Sept. 6, 2007, at: Boundary Hall, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Jan Neveril Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands PARMALAT SPA: Says U.S. Cases Independent from Dismissed Suits -------------------------------------------------------------- Parmalat S.p.A. says the cases dismissed by the Honorable Lewis Kaplan of the U.S. District Court for the Southern District of New York were independent from its lawsuits pending at the same court. Judge Kaplan in New York dismissed on Aug. 9, 2007, two lawsuits filed by the administrator for Parmalat U.S.A. and the litigation trustee for Farmland Diaries LLC against Bank of America Corp. and Credit Suisse Group, Andrew Davis writes for Bloomberg News. According to Parmalat, Parmalat U.S.A. and Farmland Dairies LLC filed for bankruptcy in the United States on Feb. 24, 2004, and were consequently forced out of the Parmalat Group. About Parmalat Headquartered 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. PURE IP: Sets Final Shareholders Meeting for Sept. 7 ---------------------------------------------------- Pure IP Holdings will hold its final shareholders meeting on Sept. 7, 2007, at: First Floor, Alamander Way Grand Pavilion, West Bay Road Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) 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: David A.K. Walker Attention: Jodi Jones P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands Tel: (345) 914 8694 ========= C H I L E ========= ARAMARK CORP: S&P Revises B+ Corporate Credit Outlook to Stable --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Philadelphia, Pennsylvaniabased ARAMARK Corp. to stable from negative. At the same time, Standard & Poor's affirmed its ratings on ARAMARK, including the 'B+' corporate credit rating. "The outlook revision reflects ARAMARK's stronger than expected credit measures since the January 2007 management buyout," said Standard & Poor's credit analyst Jean C. Stout. The company has reduced debt by US$350 million since the management buyout, largely as a result of applying the net proceeds from a recent asset sale to bank debt, and has experienced good operating performance. "And we expect that the improvement in the company's financial profile will be maintained," said Ms. Stout. Standard & Poor's ratings on ARAMARK continue to reflect its highly leveraged financial profile and significant cash flow requirements to fund interest and capital expenditures. These factors are somewhat mitigated by ARAMARK's good position in the competitive, fragmented markets for food and support services, and uniform and career apparel. These positions translate into a sizable stream of recurring revenues and healthy cash flow generation. Headquartered in Philadelphia, Pennsylvania, Aramark Corp. (NYSE: RMK) -- http://www.aramark.com/-- is a professional services organization, providing food services, facilities management, hospitality services, and uniforms and career apparel to health care institutions, universities and school districts, stadiums and arenas, businesses, prisons, senior living facilities, parks and resorts, correctional institutions, conference centers, convention centers, and public safety professionals around the world. Aramark has approximately 240,000 employees serving clients in 20 countries, including Belgium, Czech Republic, Germany, Ireland, UK, Mexico, Brazil, Chile, among others. SHAW GROUP: Energy & Chemicals Group Bags Contract in China ----------------------------------------------------------- The Shaw Group Inc. related that its Energy & Chemicals Group has been awarded a contract to provide technology and basic engineering for 500,000 metric tons per annum ethylbenzene/styrene monomer plant in Tianjin, China, for Tianjin Dagu Chemical Industry Co. Ltd. The plant will be located in Tianjin Industrial Park, Lingang Industry Area, near the city of Tianjin. Shaw will also provide procurement services for critical equipment in addition to training and technical advisory services during plant construction and start-up. The value of Shaw's technology and engineering contract, which will be included in the company's fourth quarter backlog, is approximately US$50 million. The new plant will utilize proprietary EBMaxSM and styrene technologies provided by Badger Licensing, LLC, a joint venture of affiliates of The Shaw Group Inc. and ExxonMobil Chemical Company. "We are pleased that we were selected for this project, which is the largest ethylbenzene/styrene monomer project undertaken by Shaw in China," said J.M. Bernhard Jr., chairman, president and chief executive officer of Shaw. "China's chemical industry is growing rapidly, and we look forward to successfully demonstrating Shaw's ability to offer world class proprietary technologies and services to our customers." About Shaw Group Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. THERMADYNE HOLDINGS: Strong Performance Cues S&P to Lift Rating --------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Thermadyne Holdings Corp., including its corporate credit rating to 'CCC+' from 'CCC'. In addition, Standard & Poor's removed the ratings from CreditWatch with positive implications, where they were placed on April 5, 2007. The outlook is positive. As of June 30, 2007, the St. Louis, Missouri-based welding- equipment manufacturer had total outstanding debt of approximately US$280 million. "The upgrade reflects Thermadyne's strengthening operating performance, recent bank refinancing, and successful filing of its second-quarter Form 10Q," said Standard & Poor's credit analyst Anita Ogbara. The company has recently made progress in addressing some of its accounting issues. However, the company concluded that it had a material weakness in internal controls over financial reporting as of Dec. 31, 2006, and amended the 2006 Form 10K and first-quarter 2007 Form 10Q. The amendments did not change the consolidated financial statements. During the past two quarters, operations have stabilized somewhat. For the 12 months ended June 30, 2007, Thermadyne generated approximately $40 million of operating EBITDA, and operating margins (before depreciation and amortization) rose to about 10%. Still, performance is down substantially from 2001-2002 levels when operating margins were in the mid-teens. The company has also completed a series of small divestitures of poorly-performing operations. Currently, Thermadyne is implementing a number of steps to regain lost market share and to improve operating efficiencies and performance, including revamping its sales organization, expanding the product offering globally, moving some manufacturing to lower-cost countries, and standardizing information systems. Headquartered in St. Louis Missouri, Thermadyne Holdings Corporation -- http://www.thermadyne.com/-- is a multi-national manufacturer of welding and cutting products. The company has operations in Malaysia, Indonesia, Singapore, Philippines, Italy, Mexico, Chile and Brazil. =============== C O L O M B I A =============== DRUMMOND INC: S&P Affirms BB- Corporate Credit Rating ----------------------------------------------------- Standard & Poor's ratings services has affirmed the 'BB-' corporate credit rating on Birmingham, Alabama-based coal mining company Drummond Co. Inc. The outlook is stable. "The ratings on Drummond reflect the company's limited operating diversity; its substantial exposure to the risks of operating in Colombia, where it derives most of its cash flow; aggressive growth spending plans; its relatively small but growing production base; and weak financial measures," said S&P's credit analyst Marie Shmaruk. Still, the company maintains a relatively low-cost position compared with eastern U.S. coal companies, possesses a strategic location as a seaborne coal exporter, has a large reserve base (which consists of mostly high-quality, low-sulfur coal), and maintains adequate liquidity. The outlook is stable. S&P's expects the company to improve its credit metrics for the rating in the intermediate term as a result of a relatively favorable pricing environment and rising production levels. While S&P has capped the ratings because of the company's lack of operating diversity, longer-term upside is possible if Drummond successfully expands and diversifies its operating base without a meaningful increase in its financial leverage. S&P's could revise the outlook to negative if the company fails to improve its financial leverage from currently high levels because of lower-than-expected production (resulting from operational disruptions or less-favorable mining conditions), or if the company pursues additional debt-financed growth initiatives. Drummond Co. Inc. runs coal mines in Alabama and Colombia, predominantly engaged in the mining, purchasing, processing, and marketing of coal and coal products and had revenues in 2006 of US$1.8 billion. ECOPETROL: Gov't Expects to Raise US$2.82 Bil. from Stake Sale -------------------------------------------------------------- The Colombian government expects to raise as much as US$2.82 billion (COP5.72 trillion) from the first round of sale of a stake in Empresa Colombiana de Petroleos SA, or Ecopetrol, the state-owned oil firm, Bloomberg News reports. The auction process will begin Aug. 27 with 4.09 billion shares up for grabs to the highest bidders. The shares will be offered to pension funds, workers and citizens for COP1,400 a piece, the same news adds. "We are offering local investors the chance to invest in the country's development in an asset that's in vogue around the world," Javier Gutierrez, Ecopetrol's chief executive, told Bloomberg. "Energy-related assets have wide room for the upside." Colombia, being Latin America's fifth-largest oil exporter would use the sale proceeds to finance increases in oil production and exploration, Bloomberg states. By November, the government would probably make the second round of selling shares in Ecopetrol. That would be followed by offerings in international markets. By the end of the process, about 20% of Ecopetrol would be in the hands of investors, Bloomberg says, citing Mr. Gutierrez. Despite the turmoil in international financial markets caused by a slump in the U.S. housing sector, Mr. Gutierrez remains confident that investors' interest in Ecopetrol would not dwindle by categorizing it as one of the safest investments in the market, Bloomberg says. Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. * * * As reported in the Troubled Company Reporter-Latin America on June 27, 2007, Fitch Ratings upgraded the foreign currency Issuer Default Ratings of Ecopetrol to 'BB+' from 'BB'. The rating action followed the upgrade of The Republic of Colombia's foreign currency Issuer Default Ratings to 'BB+' from 'BB'. =================== C O S T A R I C A =================== SPECTRUM BRANDS: Posts US$7.4 Mil. Net Loss in Qtr. Ended July 1 ---------------------------------------------------------------- Spectrum Brands, Inc. disclosed third quarter net loss of US$7.4 million for the quarter ended July 1, 2007, compared with a net income of US$2.5 million for the same period in 2006. Spectrum Brands' third quarter net sales were US$442 million, an increase of 3.4% compared with net sales of US$427.5 million in the comparable period last year. Gross profit and gross margin for the quarter were US$164.2 million and 37.1%, respectively, versus US$156.4 million and 36.6% for the same period last year. Restructuring and related charges of US$4.1 million were included in the current quarter's cost of goods sold; cost of goods sold in the comparable period last year included US$2.7 million in similar charges. Excluding these restructuring and related charges, gross margin improved as the positive impact of price increases and manufacturing cost efficiencies offset increased raw material costs. Spectrum generated third quarter operating income of US$3.7 million versus US$10.5 million in the same quarter of fiscal 2006. The primary reason for the decline was a significant increase in restructuring and related charges of US$30.6 million in fiscal 2007 compared with US$6.8 million in the prior year, which more than offset a US$7.8 million reduction in operating expenses in the current quarter. "Our overall portfolio continues to make progress and we are confident that we are taking the right actions for the long-term to drive revenue growth, reduce costs and create sustainable value," Spectrum Brands Chief Executive Officer Kent Hussey stated. "As we previously disclosed, our third quarter financial results were lower than we had anticipated; however, we did see year over year improvement in sales, operating expenses and EBITDA. Looking forward, we expect further year over year improvement in EBITDA in the fourth quarter of 2007 and beyond, largely driven by cost reduction actions already completed or underway. In order to restore a more normal capital structure to the business as quickly as possible, we have decided to sell an attractive strategic asset. Details of the sale will be announced when the sale process is formally initiated within the next several weeks." Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. The company has manufacturing and distribution facilities in China, Australia and New Zealand, and sales offices in Melbourne, Shanghai, and Singapore. The company operates in 13 Latin American nations including El Salvador, Guatemala, Costa Rica, Colombia and Nicaragua. * * * As reported in the Troubled Company Reporter on April 30, 2007, Fitch Ratings affirmed the ratings of Spectrum Brands Inc., including its CCC issuer default rating, its CCC- rating of the company's $700 million 7-3/8% senior subordinated note due 2015 and its CCC- rating of the company's $350 million 11.25% Variable Rate Toggle Interest pay-in-kind Senior Subordinated Note due 2013. Fitch said the outlook remains negative. * COSTA RICA: Mayors Support Nation's Free Trade Pact with U.S. --------------------------------------------------------------- Xinhua News reports that 73 Costa Rican mayors have sent a joint letter to President Oscar Arias to air out their support on the Central America-Dominican Republic-United States Free Trade Agreement. According to Xinhua News, the mayors said that the agreement will boost trade and enhance living standards in Costa Rica. Xinhua News relates that the legislatures of the countries involved, excluding Costa Rica, have authorized the agreement. Costa Rica will hold a referendum on the accord on Oct. 7, 2007. The report says that the mayors listed five proposals and two programs aimed at: -- increasing the income of Costa Ricans, -- promoting greater social justice, and -- improving wealth distribution. San Jose Mayor Johnny Araya urged Costa Ricans to approve the treaty in the referendum, Xinhua News notes. Meanwhile, Costa Rican President Oscar Arias already sent a bill to the legislature allowing the transfer of 10% of the nation's budget to local government. Xinhua News reports that President Arias had admitted in a meeting with mayors that the free trade accord is necessary but not enough. "The agreement does not replace the investment we are making in improving public education, but does allow that effort to translate into better opportunities for young people," President Arias told Xinhua News. * * * As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa Rica's country ceiling to BB+ from BB. =================================== D O M I N I C A N R E P U B L I C =================================== AES CORP: Rockash Clean-Up To End in Two Weeks ---------------------------------------------- The clean-up operation for the rockash that The AES Corp. dumped in a Dominican Republic shore will be concluded by the end of August 2007, Dominican Today reports, citing the country's Environment Minister Max Puig. As reported in the Troubled Company Reporter-Latin America on July 9, 2007, the Dominican Republic started taking out the rockash dumped on the port town Arroyo Barril, Samana, using the money paid by AES for damages. AES had dumped over 50,000 tons of ash in Samana in 2003. Minister Puig told Dominican Today that the rockash will have been removed by Aug. 28, 2007. An estimated 3,500 tons of rockash remain mixed with calcareous rock that can be taken to a furnace in San Pedro in 10 days, Dominican Today says, citing Sotramotier president Carlos Perez. The firm Sotramotier will be constructing a planned ecological park once Arroyo Barril has been cleared of rockash, according to Dominican Today. Dominican Today notes that taking the rockash to San Pedro and works cost US$3 million. DR1 Newsletter relates that using the US$6-million fine AES paid as part of the settlement the US court issued, the Dominican government was able to construct different public works projects. Minister Puig told DR1 Newsletter that DOP90 million public works has been completed. DR1 Newsletter notes that the public works projects include: -- a rebuilt wharf, -- three kilometers of rural roads, -- a primary school, -- a primary health care center, and -- two churches. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company's Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. AES has been in Eastern Europe for over ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * On Oct. 20, 2006, Moody's Investors Service's downgraded its B1 Corporate Family Rating for AES Corporation in connection with the implementation of its new Probability-of-Default and Loss- given-default rating methodology. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given- default ratings on the company's loans and bond debt obligations including the B1 rating on its senior unsecured notes 7.75% due 2014, which was also given an LGD4 loss-given default rating, suggesting noteholders will experience a 55% loss in the event of a default. FLOWSERVE CORP: Moody's Affirms Ba3 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service affirmed Flowserve Corporation's corporate family rating at Ba3 and probability of default at B1. At the same time, Moody's affirmed the Ba2 rating to the company's senior secured term loan and assigned a Ba2 rating to Flowserve's senior secured revolving credit facility. The rating actions result from Flowserve extending the maturity of its revolving credit facility by two years to August 2012. The outlook is stable. Flowserve's Ba3 corporate family rating reflects the company's leading market position in the fluid motion and control manufacturing industry, diverse product offering and global footprint. Moody's also anticipates that Flowserve will benefit from revenue growth as demand for industrial pumps, seal, valves, and services continue to remain robust over the intermediate term as well as the prudent financial policies being embraced by management. Through LTM June 2007, Flowserve's key credit metrics (as adjusted per Moody's FM Methodology) were: -- EBITA margin -- 9%; -- EBIT/interest expense -- 3.3 times; -- debt/EBITDA -- 2.8 times; and, -- retained cash flow/debt at 21%. These strengths, however, are balanced against the ongoing cyclicality of Flowserve's end markets. Additionally, the corporate family rating is constrained by the ongoing investigation into the Oil-for-Food Program and shareholder lawsuit. Also, there is the potential for Flowserve to pursue further growth initiatives, which could require incremental capital investments. The stable outlook reflects Moody's expectations that Flowserve's debt protection measures are supportive of the Ba3 rating over the next twelve to eighteen months. The company's current good liquidity profile, with balance sheet cash of about US$48 million at the end of 2Q07 should enable it to fund modest growth without incurring significant additional financial leverage. Consequently, even in consideration of a modest cyclical downturn in business trends, Moody's anticipates that Flowserve will maintain appropriate financial metrics for its current rating. The rating for the company's senior secured bank credit facility consisting of the revolving credit facility and term loan reflects the overall probability of default of the company, to which Moody's assigns a probability of default of B1. The Ba2 rating of the senior secured bank credit facility is rated one notch above the corporate family rating and reflects an LGD2 (20%) loss given default assessment. This credit facility reflects its senior position in Flowserve's capital structure, a first priority in substantially all of the company's assets, and the benefit from almost US$200 million in junior claims. These rating/assessments were affected by this action: -- Corporate family rating affirmed at Ba3; -- Probability of default rating affirmed at B1; -- US$600 million senior secured term loan due August 2012 affirmed at Ba2 (LGD2, 20%); and, -- US$400 million senior secured revolving credit facility due August 2012 assigned at Ba2 (LGD2, 20%). Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) -- http://www.flowserve.com/-- provides fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. In Latin America, Flowserve operates in 36 countries such as the Dominican Republic, Guatemala, Guyana and Belize. JETBLUE AIRWAYS: Launches US-Dominican Republic Holiday Shuttle --------------------------------------------------------------- JetBlue Airways is expanding in Boston with non-stop service to Santiago, Dominican Republic. The airline will operate the once-daily 'holiday shuttle' between Dec. 12, 2007, and Jan. 15, 2008. Santiago will be the 27th destination served non-stop by JetBlue Airways from Boston. JetBlue Airways will operate the new flights -- Boston's only non-stop service to Santiago -- aboard its Airbus A320 fleet, which offers travelers amenities including comfortable leather seats, the most legroom in coach, and complimentary seatback television service featuring first run movies and bonus features from FOX Inflight. Affordable one-way fares start at US$109 each way between Logan and Santiago's Cibao International Airport. "We're thrilled to be adding this new service to Santiago just in time for the holidays," said JetBlue Airways' Network Planning Vice President Marty St. George. "Our Boston customers keep asking for more affordable service to the Caribbean, and we're pleased to bring it to them. With our low fares and great service, heading home or heading on holiday has never been easier or more affordable -- and now, it's even more comfortable!" JetBlue Airways customers at Logan International Airport can take advantage of nonstop service to more than two dozen popular destinations, including five cities in Florida and sun spots such as Aruba, Bermuda, Cancun, Nassau, and San Juan. Connecting service is available year-round between Boston and Santiago via New York's John F. Kennedy International Airport. Based in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services primarily in the United States. As of Feb. 14, 2006, the company operated approximately 369 daily flights serving 34 destinations in 15 states, Bermuda, Puerto Rico, the Dominican Republic, and the Bahamas. The Company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV, LLC. As reported in the Troubled Company Reporter-Latin America on Aug. 15, 2007, Fitch Ratings affirmed the debt ratings of JetBlue Airways Corp. as: -- Issuer Default Rating at 'B' -- Senior unsecured convertible notes at 'CCC' with a recovery rating of 'RR6' The senior unsecured rating applied to US$425 million of outstanding convertible notes. Fitch said the rating outlook is stable. * DOMINICAN REPUBLIC: Venezuela Offers To Build NatGas Plant ------------------------------------------------------------ Beata Lockwood at Caribbean Net News reports that Venezuela's President Hugo Chavez has offered his Dominican Republic counterpart, President Leonel Fernandez, to construct a natural gas plant in the Dominican Republic. According to Caribbean Net, the plant will process gas for consumption in the Dominican Republic. The gas could also be exported to other Caribbean nations. Caribbean Net relates that President Chavez hopes that the offer would be accepted. It has made the same offer to Haiti and is hoping that the two nations could work together. Meanwhile, President Fernandez firmly believes that the Dominican Republic's first priority in solving the power crisis "should lie first in the production of energy by way of hydroelectric projects," as the country has abundant rainfall in some areas, Caribbean Net notes. The Dominican Republic is committed to seeking alternative power sources. It is considering environment-friendly solar panels, because it also enjoys abundant sunshine. However, the cost of solar panels must be cut to make the plan viable, Caribbean Net states. * * * As reported in the Troubled Company Reporter-Latin America on May 4, 2007, Moody's Investors Service upgraded the Dominican Republic government's foreign- and local-currency bond ratings to B2 from B3. The Dominican Republic's foreign-currency country ceiling was upgraded to Ba3 from B1. The country's ceiling for foreign-currency bank deposits was also upgraded to B3 from Caa1. Moody's said all ratings have stable outlook. ============= E C U A D O R ============= GEOKINETICS: Repurchase Cues Moody's to Withdraw All Ratings -------------------------------------------------------- Moody's Investors Service has withdrawn all the ratings for Geokinetics Inc. following the company's redemption of all of its rated bonds with the proceeds of an equity offering. Moody's does not rate any other debt for Geokinetics. The ratings withdrawn are the B3 corporate family rating and probability of default rating, the SGL-3 speculative liquidity rating and the B3, LGD 4 (53%) rating on the US$110 million second priority senior secured floating rate notes due 2012. Headquartered in Houston, Texas, Geokinetics Inc. -- http://www.geokineticsinc.com/-- is a global leader of seismic acquisition and high-end seismic data processing and interpretation services to the oil and gas industry. Geokinetics provides seismic data acquisition services in North America, South America, Africa, Asia, Australia and the Middle East. Geokinetics operates in some of the most challenging locations in the world from the Arctic to mountainous jungles to the transition zone environments. The company has operations in Brazil, Colombia, Ecuador, Peru and Venezuela. ==================== E L S A L V A D O R ==================== TARGUS GROUP: S&P Lowers Corp. Credit Rating to B- -------------------------------------------------- Standard & Poor's ratings services has lowered its corporate credit rating on Anaheim, California- based Targus Group International Inc. to 'B-' from 'B'. In addition, S&P's affirmed the 'B' ratings on Targus' US$40 million senior secured revolving credit facility due 2011 and US$190 million term loan B due 2012; the recovery ratings remain '2', indicating the expectation of substantial (70%-90%) recovery in the event of a payment default. S&P's has also affirmed the 'CCC+' rating on the company's US$85 million second-lien term loan maturing in 2013; the recovery rating remains '5', indicating the expectation of modest (10%-30%) recovery in the event of a payment default. S&P's has removed all ratings from CreditWatch with negative implications, where they were placed on May 23, 2007, reflecting our concerns about weaker-than-expected working capital management and tight covenant cushion. The outlook is negative. Targus has about US$300 million in outstanding debt on its balance sheet, including US$31.2 million payment-in-kind notes maturing 2013. "The downgrade reflects the company's weak cash flow generation over the last 12 months, very highly leveraged capital structure, and expected tight cushion on its bank loan financial covenants over the coming quarters," said S&P's credit analyst Christopher Johnson. The ratings on Targus reflect the company's very highly leveraged capital structure; the highly competitive operating environment and price-sensitive nature of the laptop computer case and accessory business; technology risk within the accessories product line; some customer concentration across the three distribution channels, and vulnerability to weak economic and retail environments. Targus Group International Inc. -- http://www.targus.com/-- invented the notebook case and continues to advance the mobile accessories category with innovative and relevant solutions for today's mobile lifestyle. Targus products enhance productivity, connectivity, and security, liberating users to work in any and all environments with the utmost convenience and comfort. Founded in 1983, Targus headquarters are located in Anaheim, California, with offices worldwide and distribution agreements in more than 100 countries, including Germany, France, Italy, Spain and United Kingdom. The company has Latin America operations in Argentina, Barbados, Costa Rica and El Salvador. ============= J A M A I C A ============= DYOLL INSURANCE: Creditors Getting 2nd Payment Starting Sept. 3 --------------------------------------------------------------- The joint liquidators of Dyoll Insurance Company said in a statement that the Supreme Court has ordered that the next pay out to creditors be made starting Sept. 3, 2007. According to the statement, the pay out will continue for six months. Radio Jamaica relates that "Jamaican policyholders will be paid from a US$45-million pool held by Dyoll Insurance as a prescribed deposit under the Insurance Act. Policyholders in the Cayman Islands will share in a US$79 million fund." Creditors who would present a substantiated claim by Aug. 27, 2007, and whose claim would be admitted by the joint liquidators "will be considered in the second interim payment," Radio Jamaica states. Dyoll Group Ltd. is a Jamaica-based company that is principally engaged in the insurance business. Jamaica's Financial Services Commission has assumed temporary management of the Jamaica-based Dyoll Insurance Co. Ltd. in March 7, 2005, in order to establish the true position of the Company, address the matter of settlement to its claimants and ensure that its policies will remain in force after a high level of insurance claims were leveled on the company as a result of the hurricane Ivan. Kenneth Tomlinson was appointed temporary manager. Jamaica's Supreme Court ordered for the distribution of a US$653 million fund held by the FSC in accordance with the Insurance Act 2001, section 59, which says that the prescribed deposit, on the winding up of an insurance company, should be applied first to settle the claims of local policyholders. GOODYEAR TIRE: Jamaican Unit Loses US$5 Mil. in First Six Months ---------------------------------------------------------------- Goodyear Jamaica Limited, a subsidiary of The Goodyear Tire & Rubber Company, lost US$5 million in the first half of 2007, compared to a US$15-million net profit in the same period last year, Radio Jamaica reports. Goodyear Jamaica's revenue dropped 8% to US$591 million in the first six months of 2007, compared to the same period in 2006, Radio Jamaica states. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear maintains Asia-Pacific facilities in Australia, China and Korea. Its European bases are located in Austria, France, Germany, Italy, Russia, Spain, and the United Kingdom. Goodyear's Latin-American operations are located in Argentina, Brazil, Chile, Colombia, Jamaica, Mexico, and Peru. * * * As reported in the Troubled Company Reporter-Latin America on June 5, 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. In addition, the ratings were removed from CreditWatch where they were placed with positive implications on May 10, 2007. Recovery ratings were not on CreditWatch. As reported in the Troubled Company Reporter-Latin America on May 31, 2007, Fitch Ratings has upgraded the Issuer Default Rating for The Goodyear Tire & Rubber Company to 'B+' from 'B'. In addition, these debt ratings have been upgraded: The Goodyear Tire & Rubber Company -- Issuer Default Rating 'B+' from 'B'; -- US$1.5 billion first lien credit facility to 'BB+/RR1' from 'BB/RR1'; -- US$1.2 billion second lien term loan to 'BB+/RR1' from 'BB/RR1'; -- US$300 million third lien term loan to 'BB-/RR3' from 'B/RR4'; -- US$650 million third lien senior secured notes to 'BB-/RR3' from 'B/RR4'; -- Senior unsecured debt to 'B-/RR6' from 'CCC+/RR6'. Goodyear Dunlop Tires Europe B.V. -- EUR505 million European secured credit facilities to 'BB+/RR1' from 'BB/RR1'. Fitch said the rating outlook is positive. Goodyear Tire had approximately US$5.8 billion of debt outstanding at March 31, 2007. NATIONAL WATER: Says Rains Washed Out Some Pipelines ---------------------------------------------------- The National Water Commission told Radio Jamaica that some of its pipe lines have been washed out by rain. The "high level of turbidity" is leading to a lack of water for some clients, Radio Jamaica says, citing Radio Jamaica. Areas mostly affected are in St. Thomas and St. Andrew, National Water's Corporate Public Relations Manager Charles Buchanan told at the NWC. "At the moment we have sustained some level of damage to our pipe line infrastructure across the country particularly in some sections of rural St. Andrew and St. Thomas, those are being repaired. We have also experienced some high turbidity levels at a number of our water supply facilities and as soon as those turbidity levels improve we will be able to do normal operations but at the moment there are still some areas that are still being affected by the effects of the recent rainfall," Mr. Buchanan commented to Radio Jamaica. * * * As reported in the Troubled Company Reporter on Feb. 7, 2006, the National Water Commission of Jamaica had been criticized for failing to act promptly in cutting its losses. For the fiscal years 2002 and 2003, the water commission accumulated a net loss of US$2.11 billion. The deficit fell to US$1.86 billion the following year, and to US$670 million in 2004 and 2005. =========== M E X I C O =========== ALESTRA: Fitch Affirms Issuer Default Ratings at B- --------------------------------------------------- Fitch ratings has affirmed Alestra's, S. de R.L. de C.V. foreign and local currency IDR's at 'B-', upgraded the senior notes due 2010 to 'B/RR3' from 'B-/RR4' and has revised the rating outlook to positive from negative. The revision of the rating outlook reflects the continued growth in revenues from the increasingly competitive data, internet and local services segment (DILS) which has offset revenues and cash flows from long distance services, and the expectation that leverage should continue to gradually decline from current levels. While the company's long term ownership structure remains unclear, Fitch believes Alestra's financial position or credit quality should not be materially affected. The use of the AT&T brand which is expected to end by November 2008 should not have a material effect on the company's business profile owning to its primarily corporate customer base revenue mix. Conversely, the upgrade of the senior notes reflects, as a result of lower indebtedness, an improvement in the recovery prospects, which, Fitch estimates to be in the range of 50%-70%, in the event of default. Alestra's ratings continue to reflect its business position as a niche provider of long-distance and DILS. Relatively stable revenues combined with moderate capital expenditures have resulted in positive free cash flow generation. The company has used free cash flow to reduce indebtedness, which together with an extension of its debt maturities has resulted in an improved financial profile. The ratings incorporate the challenges in the long distance market, increased competition in the DILS segment and medium to long term refinancing needs. Positive factors supporting the rating include the increased contribution of the higher margin DILS segment in the consolidated revenue mix which has facilitated moderated EBITDA growth, which, combined with reduced debt levels has led to improved credit protection measures. The company continues to face competitive challenges in the corporate segment primarily from the leading telecommunications operator, Telefonos de Mexico and by Axtel S.A.B. de C.V. Currently, Telmex controls over 90% of the local exchange sector, 70% of the long distance sector and has a substantial share of the data sector. The entrance of the convergence agreement, that allows the offering of voice, video and data by the same company should not have a material effect on Alestra's revenues as most of them come from the corporate segment. Fitch believes that the residential segment should face more competition due to the entrance of the convergence agreement. Fitch notes Alestra is exploring alternatives to offer triple play services, including video, to its residential customer base. Alestra's business strategy is to focus increasingly on the DILS segments to offset a reduction in long-distance business. The data services business offers significant long-term growth opportunities due to its low penetration in Mexico. This segment now accounts for around 50% of revenues compared with 14% in 2001 and is expected to continue increasing as a percentage of revenues. Alestra's strategy over the past five years has resulted in moving away its revenue mix from consumer business towards enterprise and international business segments. Competition in the international and domestic business remains intense as prices continue to trend down. The entrance of international and national long distance calling party pays had a negative effect on this segment as costs increased and traffic declined. While long distance business fundamentals are not expected to change, Fitch believes the company has the ability to offset the loss in revenue from this segment with incremental revenues from the DILS division, particularly in the corporate segment, which should result in stable to slight growth in EBIDTA generation over the next few years. For the last twelve months ended Mar. 30, 2007, total consolidated EBITDA grew 3% when compared to the same period of the prior year, as consolidated revenues grew 5% as a result of DILS revenue growth that outpaced declines experienced in the long distance segment. During the period revenue and EBITDA amounted for MXN4,553 million and MXN1,248 respectively and DILS accounted for 52% of revenues. Over the medium term Alestra's main challenge continues to be to successfully grow its existing DILS operations at a pace that will offset continued pressure in the long distance segment and maintain EBITDA levels. Credit protection measures are strong for the rating category. For the last twelve months ended Mar. 30, 2007, total debt to EBITDA was 2.8 times while interest coverage ratio of EBITDA to gross interest expense at 3.2. As of the first quarter of 2007, total debt amounted to US$335 million, composed of US$269 million senior notes due 2010 with, US$46.2 credit facility, US$3.2 million capital leases. The company will likely need to refinance some of its maturities by 2010. Alestra's expected free cash flow generation for the 2007-2009 period, should range between US$60 million to US$70 million and should be sufficient to meet its debt maturities of 2008 and 2009 but it is probable that it may need to partially refinance a portion of its 2010 senior notes at maturity. Alestra is the Mexican telecommunications company resulting from the joint venture of ALFA, Bancomer and AT&T that operates a national network using the most advanced technology. Alestra delivers to the Mexican consumer the AT&T standards of quality and reliability as well as seamless access to the AT&T global network that operates in 280 countries carrying more than 250 Million voice and data messages worldwide every day. Alestra provides data, Internet local and long distance services in Mexico and is 49% owned by AT&T and 51% owned by Onexa, a subsidiary of Monterrey-based Alfa. ALLIS-CHALMERS: Inks New Employment Pacts with CEO & CFO -------------------------------------------------------- The board of directors of Allis-Chalmers Energy Inc., following approval by the company's compensation committee, ratified a new employment agreement between the company and Munawar H. Hidayatallah, chairman and chief executive officer of the company, effective April 1, 2007. Also, on Aug. 3, 2007, the board of directors of the company, following approval by the company's compensation committee, ratified a new employment agreement with Victor M. Perez, chief financial officer of the company, effective April 3, 2007. Employment Agreement - Munawar Hidayatallah The term of the agreement with Mr. Hidayatallah is for three years. Pursuant to the agreement, Mr. Hidayatallah is entitled to an annual base salary of US$500,000, subject to annual cost of living increases, and will be eligible for an annual incentive bonus up to a maximum of 100% of his base salary if the company achieves certain performance goals. In addition, pursuant to the agreement, on Aug. 3, 2007, the board of directors, following approval by the compensation committee, granted Mr. Hidayatallah: i. 200,000 stock options to vest 20% on the first anniversary of the grant date, 20% on the second anniversary of the grant date and the remaining 60% on the third anniversary of the grant date and ii. performance awards in the amount of 685,000 shares of restricted stock, effective April 1, 2007, to vest in three equal installments commencing on the first anniversary of the effective date, subject to 100% vesting of both the stock options and restricted stock upon a "change in control" or termination of Mr. Hidaytallah's employment without "cause". The vesting of the performance awards are also subject to Mr. Hidayatallah achieving certain performance criteria related to the increase in stockholder value. The agreement also provides for i. tax gross-up payments for taxes incurred under Section 4999 of the Internal Revenue Code, ii. reimbursement of legal fees incurred in connection with the negotiation of the agreement and iii. reimbursements for travel and lodging related to Mr. Hidayatallah's travel from his principal residence to the company's headquarters in Houston, Texas. If Mr. Hidayatallah's employment is terminated as a result of a "change in control" or without "cause", he will receive: i. a severance payment equal to three times his then current salary, ii. compensation for accrued, unused vacation as of the date of termination and iii. any further compensation that may be provided by the terms of any benefit plans in which he participates and the terms of any outstanding equity grants. Employment Agreement - Victor Perez The term of the new agreement with Mr. Perez is for three years. Pursuant to the new agreement, Mr. Perez is entitled to an annual base salary of US$286,000, subject to an annual increase in the discretion of the Board of Directors, and will be eligible for an annual incentive bonus up to a maximum of 50% of his base salary if the company achieves certain performance goals. In addition, pursuant to the new agreement, on Aug. 3, 2007, the board of directors granted Mr. Perez performance awards consisting of 15,000 stock options and 25,000 shares of restricted stock, each grant to vest 20% on the first anniversary of the grant date, 20% on the second anniversary of the grant date and the remaining 60% on the third anniversary of the grant date. The vesting of such stock options and shares of restricted stock are also subject to Mr. Perez achieving certain performance criteria related to increases in the company's stock price, maintaining financial accounting and auditing expenses and meeting certain guidance parameters for the company. If Mr. Perez's employment is terminated without "cause", he will receive: i. severance payments for the lesser of one year following termination of employment or the remaining term of the New Agreement at his then current salary, ii. compensation for accrued, unused vacation as of the date of termination and iii. any further compensation that may be provided by the terms of any benefit plans in which he participates and the terms of any outstanding equity grants. The foregoing summaries are not complete and are qualified in their entirety by reference to the full texts of the employment agreements of Messrs. Messrs. Hidayatallah and Perez, which will be filed in the company's next periodic report. About Allis-Chalmers Allis-Chalmers Energy Inc. --http://www.alchenergy.com/-- (NYSE: ALY) is a Houston based multi-faceted oilfield services company. It provides services and equipment to oil and natural gas exploration and production companies, domestically in Texas, Louisiana, New Mexico, Colorado, Oklahoma, Mississippi, Utah, Wyoming, Arkansas, Alabama, West Virginia, offshore in the Gulf of Mexico, and internationally primarily in Argentina and Mexico. Allis-Chalmers provides rental services, international drilling, directional drilling, tubular services, underbalanced drilling, and production services. * * * As of June 2007, Allis-Chalmers Energy carries Moody's Investors Service's B2 corporate family rating. AMERICAN AXLE: Robert Baird Maintains Underperform Rating --------------------------------------------------------- Robert W. Baird analysts have kept their "underperform" rating on American Axle & Manufacturing's shares, Newratings.com reports. Newratings.com relates that the target price for American Axle's shares was set at US$24. The analysts said in a research note that American Axle disclosed a second voluntary separation program offering "buyout or retirement incentives to around 650 UAW hourly associates" at American Axle's subsidiaries in Buffalo, New York. The program would "drive cost savings worth US$35 million every year, starting 2008," Newratings.com says, citing Robert W. Baird. The earnings per share estimate for 2008 was increased to US$2.15 from US$1.65, Newratings.com states. American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly-owned subsidiary, American Axle & Manufacturing, Inc. manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Standard & Poor's Ratings Services assigned its 'BB' rating to American Axle & Manufacturing Inc.'s proposed US$250 million senior unsecured term loan due 2012. The parent company, American Axle & Manufacturing Holdings Inc., is the guarantor. Proceeds are expected to be used to repay existing debt. BALLY TOTAL: Wants Pacts with Harbinger, et al. Approved -------------------------------------------------------- Bally Total Fitness Holding Corporation and its debtor- affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York in Manhattan to enter into an investment agreement and restructuring support agreement with Harbinger Capital Partners Master Fund I, Ltd., Harbinger Capital Partners Special Situations Fund, L.P., Liberation Investments, L.P., and Liberation Investments, Ltd. The Debtors also ask the Court to approve break-up fee and expense reimbursement provisions stated in the Investment Agreement. The Debtors and the Harbinger entities reached agreement on Aug. 13, 2007, on the terms of a restructuring proposal. The agreement is reflected in (i) a first amended joint prepackaged Chapter 11 plan of Reorganization, (ii) an investment agreement with Harbinger Capital, and (iii) a new restructuring support agreement with Harbinger Capital, Liberation Investments, and certain "Consenting Subordinated Noteholders" including Tennenbaum Capital Partners, LLC. The Investment Agreement and the related New Restructuring Support Agreement are key drivers of the Modified Plan, David S. Heller, Esq., at Latham & Watkins LLP, in Chicago, Illinois, tells the Court. Pursuant to the Investment Agreement, Harbinger Capital will acquire 100% of the New Common Stock of Reorganized Bally issued on the effective date of the Plan in exchange for a purchase price of approximately US$233,600,000. This investment is necessary to fund the distributions under the Modified Plan and to fund the Reorganized Debtors' working capital and capital expenditure needs after the Effective Date, Mr. Heller says. Harbinger Capital will receive protections in the form of a US$10,000,000 Break-Up Fee and Expense Reimbursement capped at US$5,000,000 in the event that the Investment Agreement is terminated and Bally consummates an alternative "Superior Transaction." Harbinger Capital would also be entitled to Expense Reimbursement, capped at either US$3,000,000 or US$5,000,000 if the Investment Agreement is terminated on certain other specified grounds, including, among others, an uncured material breach by Bally of its covenants under the Investment Agreement or the New Restructuring Support Agreement. In the event that Harbinger Capital breaches its representations, warranties or obligations under the Investment Agreement, Harbinger Capital will not be liable to the Debtors for any punitive or consequential damages and in no event will Harbinger Capital be liable for damages in excess of US$50,000,000. The Investment Agreement may be terminated: (a) by the mutual consent of the parties; (b) by Harbinger Capital if (i) Bally enters into an Alternative Transaction, (ii) the Board of Directors withdraws or changes its recommendation of the Agreement in a manner materially adverse to the Investors or recommends an Alternative, (iii) the Debtors withdraw the Modified Plan or if the Debtors seek to convert any of the Chapter 11 Cases to Chapter 7, (iv) the Effective Date of the Modified Plan has not occurred by Sept. 30, 2007, (v) Bally breaches in any material respect its representations, warranties or covenants under the Investment Agreement, subject to its right to timely cure, (vi) the consummation of the transactions contemplated is prohibited by Law or by any judicial or governmental action, (vii) any Debtor breaches the New Restructuring Support Agreement in any material respect, subject to their right to timely cure, (viii) the Break- Up Fee or Expense Reimbursement is not approved by a Final Order of the Bankruptcy Court by Sept. 3, 2007, or (ix) an event occurs that has a Material Adverse Effect and that cannot be cured by Sept. 30, 2007; and (c) by Bally if (i) Harbinger Capital breaches the Investment Agreement or the New Restructuring Support Agreement, subject to their rights to timely cure, (ii) the Board of Directors determines that termination of the Investment Agreement is necessary in order for Bally to accept any Superior Transaction or the if the Bankruptcy Court on its own, (iii) the Effective Date of the Plan has not occurred by Sept. 30, 2007, which date may be extended to Oct. 15, 2007, if the Confirmation Order has been entered by the Bankruptcy Court on or prior to Sept. 30, 2007, and the New Investors continue using commercially reasonable efforts to consummate the Modified Plan, or (iv) the consummation of the transactions contemplated is prohibited by Law or by any judicial or governmental action. A full-text copy of the Investment Agreement is available for free at http://researcharchives.com/t/s?227c Restructuring Support Agreement Mr. Heller notes that the Original Plan was the result of several months of negotiations with the Prepetition Noteholders Committee. As a result of these successful negotiations, the Debtors, holders of a majority of the Prepetition Senior Notes and holders of more than 80% of the Prepetition Subordinated Notes entered into a Restructuring Support Agreement dated as of June 15, 2007. Under the Restructuring Support Agreement, the Consenting Subordinated Noteholders agreed, among other things, and subject only to the conditions set forth in the Agreement, (i) to vote in favor of the Original Plan, (ii) not to withdraw or revoke their votes, (iii) not to object to the confirmation of the Original Plan, and (iv) not to take any other action, including, without limitation, initiating any legal proceeding that is inconsistent with, or that would delay consummation of, the Original Plan. These undertakings by the Consenting Subordinated Noteholders extend not just to the Original Plan but also to any modifications that are not inconsistent with the terms of the Original Plan. Because the Modified Plan provides the same or better treatment to every class of creditors and equity holders, the Debtors believe that the Modified Plan is "not inconsistent with" the Original Plan, and as a result, the Original Restructuring Support Agreement remains binding on all holders of Prepetition Senior Notes and Prepetition Subordinated Notes that were signatories to that agreement. Nevertheless, Mr. Heller says, to facilitate the expeditious implementation of the Modified Plan, the parties have agreed to condition the effectiveness of the Investment Agreement upon the execution and delivery of the New Restructuring Support Agreement by the Debtors, Harbinger Capital, Liberation Investments, and the Consenting Subordinated Noteholders. A full-text copy of the New Restructuring Support Agreement is available for free at http://researcharchives.com/t/s?227d Although the Consenting Subordinated Noteholders have not yet committed to signing the New Restructuring Support Agreement, the Debtors intend to request that the Consenting Subordinated Noteholders sign that agreement following the Court's approval of the request, Mr. Heller explains. The Debtors also seek the Court's authority to assume the June 15, 2007 Restructuring Support Agreement. Mr. Heller informs Judge Lifland that the Debtors' assumption of the Restructuring Support Agreement is a condition to the effectiveness of the Investment Agreement, and is, therefore, a critical piece of the transactions contemplated by the Modified Plan. By assuming the Restructuring Support Agreement, the Debtors intend to eliminate any uncertainty about the position of the Consenting Noteholders with respect to the Modified Plan. Mr. Heller assures the Court that the Debtors have performed, and will continue to perform, their obligations under the Restructuring Support Agreement, and do not owe any cure amounts pursuant to Section 365(b)(1)(A) of the Bankruptcy Code. Accordingly, the Debtors are not required to establish "adequate assurance of future performance" under Section 365(b)(1)(C). Nonetheless, for the avoidance of doubt, the Debtors assert that they have provided adequate assurance of future performance. About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre- packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,54627 in total liabilities. No schedule has been set to date for an organizational meeting that would create an Official Committee of Unsecured Creditors. The Court recently held that the meeting of creditors pursuant to Section 341(a) of the Bankruptcy Code will not be convened, and is canceled, if the Debtors' Plan of Reorganization is confirmed on or prior to October 16, 2007. (Bally Total Fitness Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) BALLY TOTAL: Inks Pact Amending Morgan Stanley DIP Loan ------------------------------------------------------- Following Bally Total Fitness Holding Corporation and its debtor-affiliates' filing of their First Amended Joint Prepackaged Chapter 11 Plan of Reorganization, Morgan Stanley Senior Funding Inc. argued that its original contractual commitment to provide the DIP Facility and Exit Facility did not extend to the Debtors if they sought confirmation of the Modified Plan. As reported in the Troubled Company Reporter on Aug. 2, 2007, Morgan Stanley agreed to arrange a US$292,000,000 DIP facility comprised of a US$50,000,000 revolving facility and a US$242,000,000 term loan facility. To avoid the risks and costs of litigation on these matters, the Debtors negotiated an amendment with the Morgan Stanley, whereby the DIP Lenders would provide the DIP Facility and Exit Facility to the Debtors regardless of whether the Debtors sought or obtained confirmation of their Original Plan or Modified Plan. The DIP Agent charged a US$1,000,000 amendment fee -- which is being paid by Harbinger Capital Partners Master Fund I, Ltd., and Harbinger Capital Partners Special Situations Fund, L.P. -- and required increases in interest rates and fees, as well as modifications to the financial covenants. David S. Heller, Esq., at Latham & Watkins LLP, in Chicago, Illinois, notes that these modifications do not materially alter the treatment of any class of claims or interests in the Plan and will be disclosed to the the U.S. Bankruptcy Court for the Southern District of New York in Manhattan at the Final DIP Hearing scheduled for Aug. 21, 2007. A redlined copy of the Amended DIP Agreement is available for free at http://researcharchives.com/t/s?227e Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre- packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,54627 in total liabilities. No schedule has been set to date for an organizational meeting that would create an Official Committee of Unsecured Creditors. The Court recently held that the meeting of creditors pursuant to Section 341(a) of the Bankruptcy Code will not be convened, and is canceled, if the Debtors' Plan of Reorganization is confirmed on or prior to October 16, 2007. (Bally Total Fitness Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) BENQ CORP: Mobile Unit Seeks EUR26 Million from Parent Firm ----------------------------------------------------------- BenQ Mobile GmbH & Co., through its insolvency administrator Martin Prager, again sued Taiwan-based parent company BenQ Corp. on Aug. 10, 2007, bringing a total of three lawsuits against the firm, published reports say. Mr. Prager is claiming about EUR26 million from BenQ Corp. in bonus payments it promised to the German unit's employees, which the mobile unit ended up paying, John Blau writes for IDG News Service. According to Cellular-News, the former managers could be liable for debt if BenQ Corp. fails to transfer the funds due to BenQ Mobile. About 3,000 workers were made redundant through the bankruptcy. BenQ Corp. denied to Cellular-News Mr. Prager's claim. Mr. Prager had earlier sued BenQ in a Munich court, demanding two separate payments of EUR14.2 million and EUR68.9 million. The lawsuits had to do with certain accounts payable made by BenQ Mobile to the parent company in 2006, which the unit now demands to be returned. BenQ Corp., however, asserts that these payments were made as ordinary payments for goods sold. BenQ Corp. said it plans to file counterclaims against BenQ Mobile and Mr. Prager in relation to the two suits. Possible Support for Affected Employees Meanwhile, Franz Muntefering, Germany's minister for employment, has applied to the European Commission for financial support for employees affected by BenQ Mobile's insolvency, Financial Times reports citing Die Welt as its source. Mr. Muntefering wants to tap the EUR500 million EU globalization fund which was set up early this year to ease the effects of globalization, Die Welt adds. Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. The company's global operations are in Brazil, Mexico, Canada, United States, Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Turkey, Thailand, Vietnam, Austria, Belgium, among others. BenQ Mobile GmbH & Co., the company's German-based wholly owned subsidiary, filed for insolvency in Munich on Sept. 29, 2006, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the deadline in finding a buyer for the company on Dec. 31, 2006. * * * As reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's continuing operating losses from its handset operations and high leverage, and the competitive nature and low profitability of the LCD monitor industry. BRISTOW GROUP: Paying US$0.68750 Per Share Dividend on Sept. 1 -------------------------------------------------------------- Bristow Group Inc.'s Board of Directors has declared a dividend of US$0.68750 per share of Mandatory Convertible Preferred Stock issued and outstanding at the close of business on Sept. 1, 2007. The dividend will be payable on Sept. 15, 2007, to stockholders of record at the close of business on the Record Date. There are 4,600,000 shares of Bristow's Mandatory Convertible Preferred Stock issued and outstanding. Headquartered in Houston, Texas, Bristow Group, Inc. -- http://www.bristowgroup.com-- (NYSE:BRS), fka Offshore Logistics, Inc., provides helicopter transportation services to the worldwide offshore oil and gas industry with operations in the United States Gulf of Mexico and the North Sea. The Company also has operations, both directly and indirectly, in offshore oil and gas producing regions of the world, including Australia, Brazil, China, India, Mexico, Nigeria, Russia and Trinidad. The Company also provides production management services for oil and gas production facilities in the United States Gulf of Mexico. * * * As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services assigned its 'BB' rating to helicopter service company Bristow Group Inc.'s US$250 million senior notes due 2017. At the same time, Standard & Poor's affirmed the 'BB' corporate credit rating and all other ratings on the company. S&P said the outlook is negative. DUERR AG: Earns EUR45,000 for First Half 2007 --------------------------------------------- Duerr AG posted EUR45,000 in net profit on EUR650.3 million in net revenues for the first half of 2007, compared with EUR3.3 million in net losses on EUR626.3 million in net revenues for the same period in 2006. The earnings situation was impaired in the second quarter by delays on projects in India, especially on a large order. Duerr launched a package of measures including, among other things, a broadening of its local supplier base in India. As a result of the project delays, the gross margin sank to 16.1% from 17.0% in the same period in 2006. Internal processes are benefiting from the improvements implemented under the Group-wide FOCUS program. As a result, administrative and selling expenses were down overall by 2.7% to EUR89.7 million. Owing to the good order situation and the first-time consolidation of an Italian subsidiary with 40 employees, the number of employees rose to 5,836 as of June 30, 2007. This is 3.3% more than at the end of 2006. The biggest increase was in the growth region of Asia, where the number of employees rose by 16.0% to 697. At 22.9%, the equity ratio at June 30, 2007 was virtually unchanged versus the previous year (23.0%). Net financial debt amounted to EUR145.5 million at June 30, 2007 as compared with EUR122.2 million a year earlier. Duerr met most of its financing requirements in the first half of 2007 from cash and cash equivalents. "New orders were 40% above sales revenues in the first half. Our reach of orders has therefore continued to grow. Capacities are well utilized until far into 2008," Duerr AG CEO Ralf Dieter commented. Unchanged Positive Outlook Duerr anticipates a sustained good order situation. The company expects that incoming orders in 2007 will at least match the high 2006 level. Duerr continues to forecast a significant earnings improvement in 2007, especially as higher-margin orders will be executed in the second half. Much of the earnings growth will be realized in the fourth quarter. A further earnings improvement is expected in 2008. The target return for 2008 is an unchanged at least 5% at the operating earnings level. About Duerr Headquartered in Stuttgard, Germany, The Duerr Group -- http://www.durr.com/en/-- supplies products, systems, and services for automobile manufacturing. Duerr designs and builds paint shops and final assembly plants. The Duerr Group also operates in Czech Republic, France, U.K., Italy, Netherlands, Poland, Russia, Slovakia, Spain, Turkey, Australia, Brazil, China, India, Japan, Mexico, South Africa, South Korea and the U.S.A. * * * As reported in the Troubled Company Reporter-Latin America on June 25, 2007, Moody's upgraded the outlook for Duerr AG's corporate credit rating from negative to stable. Duerr AG's corporate credit rating continues to stand at B2. DURA AUTOMOTIVE: Court OKs Sale of Atwood Mobile for US160.2 Mln ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved DURA Automotive Systems Inc. and its debtor-affiliates' asset purchase agreement with Atwood Acquisition Co., LLC, an affiliate of private equity firm Insight Equity, for the sale of DURA's Atwood Mobile Products division, headquartered in Elkhart, Indiana. The agreement provides for the acquisition of Atwood Mobile Products for an aggregate cash consideration of US$160.2 million. DURA was advised by Miller Buckfire, AlixPartners and Kirkland & Ellis in connection with both the backstop and Atwood sale agreements. As reported in yesterdays Troubled Company Reporter, the Debtors disclosed that they canceled the scheduled auction for Atwood Mobile Products, Inc.'s assets, in light of the absence of competing bids for the Elkhart, Indiana-based business. In a notice filed before the U.S. Bankruptcy Court for the District of Delaware, Dura Automotive said that they have not received additional "qualified bids" for Atwood by the August 8 deadline to submit bids. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors' exclusive plan-filing period expires on Sept. 30, 2007. DURA AUTOMOTIVE: Gets Court Nod on Backstop Rights Purchase Deal ---------------------------------------------------------------- DURA Automotive Systems Inc. obtained approval from the United States Bankruptcy Court for the District of Delaware two important agreements that will help facilitate and finance DURA's emergence from bankruptcy. The Court entered an order approving DURA's asset purchase agreement for the sale of its Atwood Mobile Products division and approved its amended backstop rights purchase agreement. The order for the backstop agreement will be submitted tomorrow under certificate of counsel. These milestones keep the company on track for an expected emergence from Chapter 11 in the fourth quarter of 2007. "We are pleased with the Court's decision, which enables us to continue on a path toward emergence," said Larry Denton, DURA Automotive's Chairman and Chief Executive Officer. "We have made significant progress with our creditors and other constituencies to foster a consensual reorganization process." On Aug. 13, 2007, DURA filed an amended backstop rights purchase agreement and related stockholder agreement, which reflects a global resolution of issues among the company, Pacificor, LLC and the Creditors' Committee. Under the terms of the amended agreement, upon emergence the company will be privately held with a range of minority shareholder protections. The Court has approved this agreement, which provides an equity backstop commitment of between US$140 and US$160 million. Separately, the Court approved DURA's asset purchase agreement with Atwood Acquisition Co., LLC, an affiliate of private equity firm Insight Equity, for the sale of DURA's Atwood Mobile Products division, headquartered in Elkhart, Indiana. The agreement provides for the acquisition of Atwood Mobile Products for an aggregate cash consideration of US$160.2 million. DURA was advised by Miller Buckfire, AlixPartners and Kirkland & Ellis in connection with both the backstop and Atwood sale agreements. About DURA Automotive Headquartered in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. NUANCE COMMS: Prices US$220-Mil. Offer of Sr. Conv. Debentures -------------------------------------------------------------- Nuance Communications Inc. priced its offering of US$220 million aggregate principal amount of 2.75% senior convertible debentures due 2027 through an offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The sale of the debentures is expected to close on Aug. 13, 2007, subject to satisfaction of customary closing conditions. Nuance also granted the initial purchasers a 30-day over-allotment option to purchase up to US$30 million aggregate principal amount of additional debentures. The debentures will bear interest at a rate of 2.75% per year, payable in cash semi-annually in arrears, beginning on Feb. 15, 2008. The debentures will be convertible, subject to certain conditions, into shares of Nuance's common stock at an initial conversion rate of 51.3736 shares per US$1,000 principal amount of the debentures, which is equivalent to an initial conversion price of about US$19.47 per share and which represents a 22.5% premium to the closing share price on Aug. 7, 2007, subject to adjustment upon the occurrence of certain events. Upon conversion of a debenture, a holder will receive cash in an amount equal to the lesser of US$1,000 and the conversion value and, if the conversion value is greater than US$1,000, payment of the excess value in the form of cash and/or shares of Nuance's common stock, at Nuance's option. Nuance may redeem the Debentures in whole or in part on or after Aug. 20, 2014. Holders of the Debentures may require Nuance to purchase all or a portion of their debentures, in cash, on Aug. 15, 2014, Aug. 15, 2017, and Aug. 15, 2022, and upon the occurrence of certain fundamental changes. Nuance intends to use the net proceeds from the offering, together with cash on hand, to fund its previously announced acquisition of Tegic Communications Inc. About Tegic Communications Inc. Headquartered in Seattle, Tegic Communications Inc. -- http://www.tegic.com/-- builds robust, innovative, embedded software designed to enhance communications on small mobile devices. The company has offices in Beijing, Hong Kong, London, New Delhi, Paris, Sao Paulo, Seoul, Singapore, and Tokyo. Tegic is a subsidiary of AOL LLC. About Nuance Communications Based in Burlington, Massachusetts, Nuance Communications Inc. (NASDAQ: NUAN), fka ScanSoft Inc., -- http://www.nuance.com/-- provides speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services that help users interact with information, and create, share and use documents. The company has offices in Australia, Belgium, Japan, Korea, Hong Kong, India, Mexico, and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 9, 2007, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Burlington, Massachusetts-based Nuance Communications Inc. and assigned its 'B-' rating to Nuance's proposed US$150 million senior unsecured convertible notes due 2027. Proceeds from the notes will be used to partially fund the previously announced acquisition of Tegic Communications Inc. S&P said the outlook is positive. ONEIDA LTD: Moody's Withdraws All Ratings ----------------------------------------------- Moody's Investors Service has withdrawn all ratings on Oneida, Ltd. The withdrawal is driven by Oneida's announcement that it has terminated its intent to enter into a new US$120 million senior secured term loan facility due to unfavorable market conditions. The company intended to use proceeds from the term loan and a portion of cash to refinance its existing term loan that was put in place following its emergence from voluntary bankruptcy in September 2006, pay a US$30 million special dividend to preferred equity holders, and pay related fees, expenses and prepayment penalties. These ratings were withdrawn: Oneida, Ltd.: -- Corporate family rating at B2 -- Probability of default rating at B2 -- US$120 million first-lien Term Loan due 2013 at B3 (LGD 4, 62%) Headquartered in Oneida, New York, Oneida, Ltd. is a leading marketer and distributor of tableware products, including metalware, dinnerware, glassware and other tabletop accessories. The company's key operations are in the U.S., Canada, Mexico, U.K., EMEA and Australia, and revenue is estimated to be about US$350 million. RYERSON INC: Advises Stockholders to Reject Harbinger's Nominees ---------------------------------------------------------------- Ryerson Inc. urges stockholders to reject Harbinger's handpicked slate of nominees at Ryerson's upcoming annual meeting. "Harbinger is asking Ryerson's stockholders to hand over control of their company without saying whether or not Harbinger's nominees will complete the sale to Platinum, without compensating stockholders, without a strategy, operating plan or management team, and importantly in today's credit environment, without securing committed financing for approximately US$900 million of debt that would become due upon a change in control of the board," Neil Novich, chairman and chief executive officer of Ryerson, said. "We find Harbinger's rhetoric describing our strategic review process as 'flawed' both inaccurate and hypocritical. Our Board engaged in an exhaustive process, contacting over 50 parties during the review and negotiated a go-shop provision in the deal, which has kept the door open for other bidders" Mr. Novich continued. "In fact, Harbinger was invited to be part of this process and declined twice. Instead, they put forward several nominees that oversaw what many would consider to be the very definition of a flawed process when these individuals served on the board of Metals USA." "We urge our stockholders to support our current capable, independent board of directors to be assured of keeping their opportunity to vote on the Platinum transaction for US$34.50 per share," Mr. Novich concluded." Security holders may obtain a free copy of the proxy statement and any other relevant documents, when available, by directing a request to: Ryerson Inc. Attention: Investor Relations 2621 West 15th Place, Chicago, Ill. 60608 For questions and assistance with voting WHITE proxy card, or need additional copies of proxy material, please call: MacKenzie Partners Inc. 105 Madison Avenue New York, NY 10016 Tel. (212) 929-5500 (Call Collect) (800) 322-2885 (toll-free) The Harbinger Capital Partners investment team located in New York City manages in excess of US$5 billion in capital through two complementary strategies. Harbinger Capital Partners Master Fund I Ltd. is focused on restructurings, liquidations, event- driven situations, turnarounds, and capital structure arbitrage, including both long and short positions in highly leveraged and financially distressed companies. Harbinger Capital Partners Special Situations Fund L.P. is focused on distressed debt securities, special situation equities, and private loans/notes in a predominantly long-only strategy. About Ryerson Inc. Ryerson Inc. (NYSE: RYI) -- http://www.ryerson.com/-- is a distributor and processor of metals in North America, with 2006 revenues of US$5.9 billion. The company services customers through a network of service centers across the United States and in Canada, Mexico, India, and China. On Jan. 1, 2006, the company changed its name from Ryerson Tull, Inc. to Ryerson Inc. * * * As reported in the Troubled Company Reporter-Latin America on July 26, 2007, Standard & Poor's Ratings placed its 'B+' corporate credit and 'B-' senior unsecured debt ratings on Ryerson Inc. on CreditWatch with negative implications. Moody's Investors placed the ratings for Ryerson Inc. (B1 corporate family rating) under review for possible downgrade. The review was prompted by the announcement that Ryerson has entered into a definitive merger agreement with Platinum Equity in a transaction valued at approximately US$2.0 billion. SR TELECOM: June 30 Balance Sheet Upside-Down by CDN$14 Million --------------------------------------------------------------- SR Telecom Inc. reported on Aug. 9, 2007, its unaudited second quarter 2007 results for the three months ended June 30, 2007. SR Telecom Inc.'s consolidated balance sheeT at June 30, 2007, showed CDN$83.9 million in total assets and CDN$97.9 million in total liabilities, resulting in a CDN$14.0 million total stockholders' deficit. Net loss was CDN$14.9 million compared to CDN$17.3 million in 2006. Operating loss from continuing operations was CDN$13.7 million, a CDN$4.0 million improvement over the CDN$17.7 million operating loss recorded during the same period one year ago. SR Telecom's second quarter revenue grew 51% to CDN$22.4 million from CDN$14.8 million during the same period in 2006, reflecting the ongoing implementation of major contracts in Mexico and Argentina. These improvements-a result of the increase in sales volume, higher margins on equipment sales and a CDN$2.3 million decline in selling, general and administrative (SG&A) expenses-were offset by a CDN$600,000 increase in restructuring charges and a CDN$700,000 million rise in research and development expenses. The 2007 restructuring charges relate to the company's announced plan to reorganize its internal operations and centralize activities; the R&D increase is a reflection of the additional resources the company has devoted to the development, delivery and deployment of WiMAX solutions in 2007. "Our second quarter performance, while clearly an improvement over last year's results, reflects the delays in manufacturing and deliveries that we encountered during the quarter as we worked to resolve our capital issues," said Serge Fortin, president and chief executive officer of SR Telecom. "We know that much remains to be done for SR Telecom to regain positive and sustainable momentum, yet it is encouraging that our customers have continued to demonstrate their belief in our ability to design, deliver and deploy high-quality wireless solutions. The additional CDN$45 million in available funds we received through the term loan in early July will enable us to further invest in our WiMAX technology, strengthen our customer relations and execute on our growth strategy." Year-to-date revenue was CDN$45.2 million, up 33.0% from CDN$34.0 million in the first six months of 2006. Operating loss for the six-month period in 2007 was CDN$22.5 million compared to CDN$29.2 million in the same period of 2006. The year-to-date net loss was CDN$27.1 million compared to CDN$30.9 million during the first six months in the prior year. Backlog at June 30, 2007, stood at CDN$27.1 million, the majority of which is expected to be delivered by the end of this year. This compares with CDN$45.4 million at the end of 2006 and CDN$31.3 million at the end of the first quarter of 2007. Financial Position As reported in the Troubled Company Reporter on July 6, 2007, the company entered into an agreement, with a syndicate of lenders comprised of shareholders and lenders that provides a new term loan of up to CDN$45 million, of which CDN$35 million was drawn immediately. The CDN$10 million balance is available for drawdown for a period of one year from the signing date. As at June 30, 2007, the company's consolidated cash, including restricted cash, was CDN$9.2 million, down from CDN$26.2 million at Dec. 31, 2006, and reflects the use of cash to fund continuing operating activities and capital requirements; it does not include additional funding from the new term loan. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?2277 Going Concern Doubt There is substantial doubt about the appropriateness of the use of the going concern assumption because of the company's losses for the current and prior years, negative cash flows, reduced availability of supplier credit and lack of operating credit facilities. As such, the realization of assets and the discharge of liabilities and commitments in the ordinary course of business are subject to significant uncertainty. For the three and six months ended June 30, 2007, the company realized a net loss of CDN$14.9 million and CDN$27.1 million, respectively (CDN$115.6 million for the year ended Dec. 31, 2006), and used cash of CDN$9.2 million and CDN$21.6 million, respectively (CDN$45.2 million for the year ended Dec. 31, 2006) in its continuing operating activities. Going forward, the company will continue to require substantial funds as it continues the development of its WiMAX product offering. About SR Telecom Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) -- http://www.srtelecom.com/-- delivers broadband wireless access (BWA) solutions that enable service providers to deploy voice, Internet and next-generation services in urban, suburban and remote areas. SR Telecom's products are currently deployed in more than 110 countries worldwide. The company has offices in Mexico, France and Thailand. TV AZTECA: Reaches Programming Deal with Power ---------------------------------------------- TV Azteca, S.A. de C.V., has purchased a package of over 120 hours of prime-time mini-series and drama from UK drama producer and distribution company Power, the World Screen reports. Dominic Schreiber at Variety.com relates that a package of 60 miniseries and movies includes some of Power co-productions. "This deal strengthens our existing relationship with TV Azteca and confirms our commitment to providing the kind of premium TV content that Power is recognized across the world for producing," Power's global sales president Chris Philip told the World Screen. TV Azteca (BMV: TVAZTCA) (Latibex: XTZA) is one of the two largest producers of Spanish-language television programming in the world, operating two national television networks in Mexico -- Azteca 13 and Azteca 7 -- through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market, and Todito, an Internet portal for North American Spanish speakers. * * * Moody's Investor Services rated TV Azteca's senior unsecured debt at B1. WARNACO INC: Moody's Affirms Ba3 Corporate Family Rating -------------------------------------------------------- Moody's Investors Service affirmed Warnaco's Ba3 corporate family, Ba1 senior secured and B1 senior unsecured ratings and revised the company's outlook to positive from stable. The positive outlook reflects the fact that Warnaco's progress in the integration and execution of the January 2006 Fingen SpA acquisition, which gave Warnaco the licensing rights to distribute Calvin Klein jeans, accessories and other apparel in European and Asian markets, has progressed better than initially anticipated. The Calvin Klein businesses, both domestic and international, have helped drive the company's operating profitability improvements. Since the acquisition, Moody's adjusted operating margins have improved from a high of 8% at fiscal 2005 to 9.1% for the last 12 months ending March 31, 2007, with double digit operating margins in the fourth quarter of 2006 and the first quarter of 2007. Leverage, as measured by debt / EBITDA, has improved from 3.3x at fiscal 2006 to 2.7x at March 31, 2007, due to improved performance and prepayment of debt with proceeds from the sale of non-core businesses. Upward rating momentum could build if the company continues to demonstrate growth in revenues above peers, sustained operating margins approaching 10% and improved free cash flow to debt above 10%. The outlook reflects Moody's expectations that the company will continue to improve revenue growth and profitability over the near term, and that if consumer demand were to soften, its financial performance would remain sufficiently strong to support a positive outlook. These ratings were affirmed and LGD assessments amended: -- Corporate Family Rating at Ba3 -- Probability of Default Rating at Ba3 -- US$225 senior secured revolving credit facility at Ba1 (LGD2 20%, was 22%) -- US$180 million senior secured term loan at Ba1 (LGD2 20%, was 22%) -- US$210 million senior unsecured debt at B1 (LGD5 76%, was 78%) Warnaco Inc. and its parent, The Warnaco Group, Inc., are headquartered in New York, NY. The company is one of the world's leading designers, manufacturers and marketers of intimate apparel, sportswear, and swimwear worldwide under brands that it owns or licenses, such as Warner's, Olga, Lejaby, Calvin Klein, Speedo, and Chaps. The company has operations in Europe, Mexico and Korea. The company reported revenues of about US$1.9 billion for the last 12-month period ended June 30, 2007. ===================== P U E R T O R I C O ===================== ADVANCED CARDIOLOGY: Hires Aviles Cruz as Special Counsel --------------------------------------------------------- Advanced Cardiology Center Corp. obtained permission from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Aviles, Cruz & Associates, C.S.P. as its special counsel. Aviles Cruz will handle corporate matters, including: a) legal representation in administrative and labor issues; and b) judicial proceeding in the Mayaguez Superior Court of First Instance of Puerto Rico Edwin A. Aviles Perez, Esq., an Aviles Cruz partner, disclosed that the firm will be billed US$75 per hour for its legal counseling and US$100 per hour for legal representation at administrative agencies or Court. Mr. Perez assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Perez can be reached at: Edwin A. Aviles Perez, Esq. Aviles, Cruz & Associates P.O. Box 6255 Mayaguez, PR 00681 Tel: (787) 805-6262 Fax: (787) 832-2967 Based in Mayaguez, Puerto Rico, Advanced Cardiology Center Corp. filed for Chapter 11 protection on Jan. 8, 2007 (Bankr. D. P.R. Case No. 07-00061). Alexis Fuentes-Hernandez at Fuentes Law Offices represents the Debtor. When the Debtor filed for protection from its creditors, it estimated assets and debts between US$10 million and US$50 million. HORIZON LINES: Closes Tender Offer for Senior Notes --------------------------------------------------- Horizon Lines, Inc. has completed its cash tender offer for all of the 9.00% Senior Notes due 2012 of its subsidiaries Horizon Lines, LLC and Horizon Lines Holding Corp. and the 11.00% Senior Discount Notes due 2013 of its subsidiary H-Lines Finance Holding Corp. The tender offer expired at 12:00 midnight, New York City time, on Aug. 13, 2007, with 100% of the outstanding principal amount of the Notes validly tendered. Approximately 95.82% of the outstanding principal amount of the Senior Notes and approximately 98.75% of the outstanding principal amount of the Senior Discount Notes were validly tendered as of 5:00 p.m., New York City time, on July 30, 2007, and accepted for purchase by the company on Aug. 8, 2007. All of the Notes that remained outstanding after the Consent Expiration were validly tendered prior to the Expiration Time and accepted for purchase by the company. Goldman, Sachs & Co. served as the sole dealer manager for the tender offer. About Horizon Lines Headquartered in Charlotte, North Carolina, Horizon Lines Inc. (NYSE: HRZ) -- http://www.horizonlines.com/-- is a Jones Act container shipping and integrated logistics company and is the parent company of Horizon Lines Holding Corp. and Horizon Lines LLC. The company accounts for approximately 37% of total U.S. marine container shipments from the continental U.S. to the three non-contiguous Jones Act markets -- Alaska, Hawaii, and Puerto Rico, and Guam. * * * As reported in the Troubled Company Reporter-Latin America on July 31, 2007, Standard & Poor's Ratings Services assigned its 'B' rating to Horizon Lines Inc.'s (BB-/Stable--) proposed US$300 million senior convertible notes offering due 2012. Proceeds from the notes offering, combined with proceeds from a planned new credit facility, will be used primarily to repay its outstanding 9% senior notes due 2012 and its 11% senior discount notes due 2013. The company launched a tender offer for these notes on July 17, 2007. The tender offer expires on July 30, 2007. The Charlotte, North Carolina-based shipping company currently has about US$800 million of lease-adjusted debt. HORIZON LINES: Morgan Keegan Reaffirms Outperform Rating on Firm ---------------------------------------------------------------- Morgan Keegan analysts have reaffirmed their "outperform" rating on Horizon Lines Inc's shares, Newratings.com reports. The analysts said in a research note that Horizon Lines concluded the refinancing of its balance sheet. The analysts told Newratings.com that Horizon Lines' yearly "GAAP interest rate" would drop to 5.4% from 8.8%, resulting in US$0.31 in annual earnings per share accretion. The earnings per share estimate for 2007 was increased to US$1.63 from US$1.52, while the estimate for next year rose to US$2.76 from US$2.45, Newratings.com states. Headquartered in Charlotte, North Carolina, Horizon Lines Inc. (NYSE: HRZ) -- http://www.horizonlines.com/-- is a Jones Act container shipping and integrated logistics company and is the parent company of Horizon Lines Holding Corp. and Horizon Lines LLC. The company accounts for approximately 37% of total U.S. marine container shipments from the continental U.S. to the three non-contiguous Jones Act markets -- Alaska, Hawaii, and Puerto Rico, and Guam. * * * As reported in the Troubled Company Reporter-Latin America on July 31, 2007, Standard & Poor's Ratings Services assigned its 'B' rating to Horizon Lines Inc.'s (BB-/Stable--) proposed US$300 million senior convertible notes offering due 2012. Proceeds from the notes offering, combined with proceeds from a planned new credit facility, will be used primarily to repay its outstanding 9% senior notes due 2012 and its 11% senior discount notes due 2013. The company launched a tender offer for these notes on July 17, 2007. The tender offer expires on July 30, 2007. The Charlotte, North Carolina-based shipping company currently has about US$800 million of lease-adjusted debt. =================================== T R I N I D A D A N D T O B A G O =================================== DFL CARIBBEAN: Fitch Affirms Ratings with Stable Outlook -------------------------------------------------------- Fitch affirms the ratings of Development Finance Limited and assigns ratings to DFL Caribbean Holdings Limited. The rating outlook is stable. Ratings reflect ownership, efficient operating structure, and sizable portion of stable long-term funding. Offsetting factors include the company's concentration of exposure, comparatively high level of impaired loans, small size and limited market position. Recently, the company converted to a holding company structure under DFL Caribbean Holdings Limited. The holding company structure more clearly separates risks by product type and geography and allows management and the board to more clearly monitor performance, risks and regional expansion efforts. Policies for holding company leverage appear reasonable. It is believed that more than sufficient liquidity will be maintained at the holding company level. The largest shareholders are RBTT Financial Holdings with 31%, the Government of Trinidad and Tobago with 28%, the European Investment Bank with 8.5%, and the Inter-American Investment Corporation with 8.5%. Fitch believes there is a moderate probability of support from DFL's institutional owners in the event of serious financial difficulties. Fitch affirms these ratings: Development Finance Limited -- Long-term Issuer Default Rating at 'BB'; -- Short-term IDR at 'B'; -- Individual rating at 'D'; -- Support rating at '3'. Fitch assigns these ratings: DFL Caribbean Holdings Limited -- Long-term Issuer Default rating at 'BB'; -- Short-Term IDR at 'B'; -- Individual rating at 'D'; -- Support rating at '3'. DFL is a financial institution. The company is licensed under the Financial Institutions Act of Trinidad & Tobago as a Merchant Bank and Finance Company; it is a member of the Deposit Insurance Corporation of Trinidad & Tobago and is registered with the Trinidad and Tobago Securities and Exchange Commission. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Ramirez Denies Borco Sale Talks ------------------------------------------------------- Rafael Ramirez, Venezuelan Minister of Energy and Petroleum and chief executive of Petroleos de Venezuela SA, said that the government has no plans to sell its Borco crude oil warehouse in the Bahamas, contradicting earlier reports of a public offer this year for the facilities, El Universal reports. The Bahamas facilities can store up to 20 million barrels of crude and other products. According to previous reports, the company contemplated the sale of Borco because it doesn't need a large storage complex in the Caribbean. Business News Americas reported that Petroleos de Venezuela directors led by the firm's refining vice president, Alejandro Grando, met twice in Houston last year to discuss the sale of Borco. 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. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. PETROLEOS DE VENEZUELA: Extends Bond Offering to Aug. 24 -------------------------------------------------------- The Venezuelan government has extended its bond offering deadline to Aug. 24 to meet demands from the province, Finance Minister Rodrigo Cabezas was quoted by Bloomberg as saying. As previously reported, investors are to acquire the dollar bonds using bolivars and must buy equal amounts of the three bonds. On Tuesday's opening sale, brokers noted caution as investors were pondering on the set, which includes secured interest and principal notes expiring in 2017 and TICC ending in 2019, in addition to Argentinean Bonden 15, El Universal relates. El Universal says that this time, US$2,000 will be supplied in domestic notes and US$1,000 in foreign bonds. 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. PETROLEOS DE VENEZUELA: Acquires 49% Stake in Petrojam ------------------------------------------------------ Venezuela's state-run oil firm Petroleos de Venezuela SA said in a statement that its Caribbean subsidiary PDV Caribe has acquired a 49% stake of the Petrojam plant from Petroleum Corporation of Jamaica. Business News Americas relates that Petroleum Corporation will own 51% of the plant. Petroleos de Venezuela said in a statement that PDV Caribe and Petroleum Corporation will expand the plant's capacity to 50,000 barrels per day from 27,000 barrels per day through the refinery joint venture, also called Petrojam. PDV Caribe will supply the plant with 23,500 barrels per day, as agreed between the Venezuelan government and the Petroleum Corporation, Bnamericas states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. SHAW GROUP: Finalizes US$1.1 Bil. Mirant Power Plants Contract -------------------------------------------------------------- The Shaw Group Inc. disclosed that the Fossil Division of its Shaw Power Group has signed an engineering, procurement and construction contract with Mirant Mid-Atlantic, LLC and Mirant Chalk Point, LLC totaling US$1.1 billion to retrofit their Chalk Point, Morgantown and Dickerson power plants in Maryland with new emissions controls. The contract finalizes an alliance agreement signed in July 2006. The retrofit will include flue gas desulfurization units, which are designed to significantly reduce sulfur dioxide emissions. Completion of the retrofit program is scheduled for December 2009. The final agreement results in a $200 million increase to the company's backlog. The additional booking will be reflected in the company's fourth quarter results. "We are delighted to continue our strong relationship with Mirant and finalize this contract for Mirant's three Maryland coal-fired generating plants," J.M. Bernhard Jr., chairman, president and chief executive officer of Shaw, said. "These state-of-the-art air quality control systems, coupled with our procurement and construction expertise, further Shaw's standing as an industry leader in the emissions control market for the power industry." Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. * VENEZUELA: Belarus Asks for Help on US$456-Mil. Debt to Russia ---------------------------------------------------------------- The Belarus government has asked the administration of Venezuelan President Hugo Chavez to help it pay back a US$56 million debt to Russia, amidst threats of halving gas supplies, The Financial Times reports. The Russian government has threatened to cut gas supplies to Belarus if it can't pay its debt. The FT says Belarus President Alexander Lukashenko said that his government would dip into its reserve fund to pay the debt. But that statement was met with scepticism by Russia. According to Venezuelan Finance Minister Rodrigo Cabezas, a loan for Belarus is being discussed but couldn't provide details yet saying that the matter is being handled by the Foreign Ministry, the FT relates. The FT says that a Venezuelan loan to Belarus is not unlikely given the two nations good relations. Published reports also said that Venezuela intends to purchase arms from Belarus. * * * 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 remained stable. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande 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 * * *