/raid1/www/Hosts/bankrupt/TCRLA_Public/070829.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, August 27, 2007, Vol. 8, Issue 169
Headlines
A R G E N T I N A
AMTRAK CONSTRUCCIONES: Claims Verification Deadline Is Sept. 28
ARIZONA SACIFIA: Trustee Filing Individual Reports Tomorrow
CATERING ESPECIALISTAS: Individual Reports Filing Is Tomorrow
CONTROL Y VIGILANCIA: Claims Verification Deadline Is Oct. 24
FIMAN SA: Trustee Filing General Report in Court Tomorrow
HIPPO SRL: Proofs of Claim Verification Deadline Is Oct. 18
LAS PAMPAS: Proofs of Claim Verification Deadline Is Oct. 25
METALURGICA KYSMAR: Trustee Filing Individual Reports Tomorrow
NEUQUEN PRODUCE: Proofs of Claim Verification Ends on Oct. 25
NOSWAR SA: Trustee To File General Report in Court Tomorrow
RESPONSABILIDAD PATRONAL: Individual Reports Filing Is Tomorrow
TECNIC LIMP: Trustee Filing Individual Reports on Nov. 21
TELECOM PERSONAL: Launches Third Generation Services in Cordoba
VIO COM: Proofs of Claim Verification Is Until Oct. 9
* ARGENTINA: Launching Hydroelectric Plant Feasibility Studies
B A H A M A S
COMPLETE RETREATS: Files Amended Joint Plan of Liquidation
COMPLETE RETREATS: Withdraws Notice of XRoads Termination
B E R M U D A
AMEREX FUTURES: Proofs of Claim Filing Ends Aug. 29
SPECTRUM (BERMUDA): Sets Final General Meeting for Aug. 30
B O L I V I A
NEWMONT MINING: Amends Dividend Record Date to Sept. 6
* BOLIVIA: In Investment Talks with Brazilian State Oil Firm
* BOLIVIA: May Conduct Hydroelectric Studies with Brazil
B R A Z I L
BANCO NACIONAL: Providing BRL192MM for Pernambuco Water Projects
BRASIL TELECOM: Gov't Supporting Firm's Merger with Oi
DELPHI CORP: Signs Settlement Agreement with Teachers' Group
GENERAL MOTORS: Trimming Production in SUV & Pickup Truck Plants
MERCANTIL DO BRASIL: Eyes 40% Loan Growth in 2007
MRS LOGISTICA: Will Buy 700 Wagons & Locomotives
XERIUM TECH: Completes Restated Financial Statements
* BRAZIL: Launching Hydroelectric Plant Feasibility Studies
* BRAZIL: May Conduct Hydroelectric Studies with Bolivia
* BRAZIL: State Firm in Investment Talks with Bolivian Gov't
* BRAZIL: Supporting Merger Between Brasil Telecom & Oi
C A Y M A N I S L A N D S
CONTEL PAGE: Proofs of Claim Filing Is Until Aug. 31
CYGNUS ASSET: Proofs of Claim Filing Deadline Is Aug. 28
EUREKA INTERACTIVE: Proofs of Claim Filing Deadline Is Aug. 31
JAPAN ADVISORY: Proofs of Claim Filing Deadline Is Aug. 31
LEVERAGED FUND: Proofs of Claim Filing Is Until Aug. 29
PLAZA GLOBAL: Sets Final Shareholders Meeting for Aug. 30
SCOTTISH RE: Moody's Affirms (P)Ba3 Sr. Unsecured Shelf Rating
SYSTEIA ALTERNATIVE: Proofs of Claim Filing Is Until Aug. 31
C H I L E
BOSTON SCIENTIFIC: Amends US$2 Billion Revolving Credit Line
EXIDE TECH: Names Edward O'Leary as Chief Operating Officer
C O S T A R I C A
ALCATEL-LUCENT: Inks New Contract with Southern Cross
E C U A D O R
* ECUADOR: Supreme Court Nulls Pacifictel Damages Order
J A M A I C A
GOODYEAR TIRE: Plans Growth Investments & Debt Repayment
M E X I C O
ADVANCED MICRO: Henri Richard to Resign by September 2007
ALERIS INT'L: Holders Tender US$1 Billion of Senior Notes
AMERICAN AXLE: Paying US$0.15 Per Share Dividend on Sept. 28
CABLEMAS SA: Names Rafael Lira as Chief Financial Officer
DURA AUTOMOTIVE: Files Reorganization Plan in Delaware
DURA AUTOMOTIVE: Pacificor Backstop Rights Pact Gets Court Okay
DURA AUTO: Summary of Terms of Proposed Stockholders' Agreement
GRUPO KUO: S&P's Upgrades Long Term Credit Rating to BB-
PRIDE INT'L: Buys 9% Remainder of Angolan Joint Venture Stake
RYERSON: Prelim Voting Result Shows 11 Board Members Re-Elected
SANMINA-SCI CORP: Joseph Licata Jr. Joins Board of Directors
SMITHFIELD FOODS: Earns US$62 Million in 2007 First Quarter
WERNER LADDER: Case Conversion Hearing Moved to September 27
WERNER LADDER: Trustee Objects to Panel's Disclosure Statement
X-RITE INC: Inks US$180-Million Acquisition Deal with Pantone
P A N A M A
AES CORP: Environmentalists Want Firm To Abandon Panama Projects
NCO GROUP: Closes Exchange Offer on Outstanding Notes
SOLO CUP: Brings In Ronald Wesel as Marketing Vice President
P A R A G U A Y
AGILENT TECH: Ingen to Step Down as Bio-Analytical Unit's Pres.
P E R U
LEVI STRAUSS: Fitch Lifts Rating on US$550-Mil. Loan to BB+
P U E R T O R I C O
GLOBAL HOME: Committee Taps Capital Solutions as Fin'l Advisor
PULTE HOMES: Credit Woes Prompt Moody's Ratings Review
U R U G U A Y
WORLDSPAN LP: Debt Refinancing Cues S&P to Withdraw Ratings
V E N E Z U E L A
CITGO PETROLEUM: Admits Delays in Crude Oil Supply from Mexico
HARVEST NATURAL: Will Increase Production in Venezuela
PETROLEOS DE VENEZUELA: Supplying Cheap Fuel to London
* BOND PRICING: For the Week Aug. 20 to Aug. 24, 2007
- - - - -
=================
A R G E N T I N A
=================
AMTRAK CONSTRUCCIONES: Claims Verification Deadline Is Sept. 28
---------------------------------------------------------------
Eduardo Ruben Pronsky, the court-appointed trustee for Amtrak
Construcciones S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Sept. 28, 2007.
Mr. Pronsky will present the validated claims in court as
individual reports on Nov. 8, 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 Amtrak Construcciones 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 Amtrak
Construcciones' accounting and banking records will be submitted
in court on Dec. 20, 2007.
Mr. Pronsky is also in charge of administering Amtrak
Construcciones' assets under court supervision and will take
part in their disposal to the extent established by law.
The trustee can be reached at:
Eduardo Ruben Pronsky
Parana 480
Buenos Aires, Argentina
ARIZONA SACIFIA: Trustee Filing Individual Reports Tomorrow
-----------------------------------------------------------
Maria Josefa Messina, the court-appointed trustee for Arizona
S.A.C.I.F.I.A.'s reorganization proceeding, will present the
validated claims as individual reports in the National
Commercial Court of First Instance in Mar del Plata, Buenos
Aires, on Aug. 28, 2007.
Ms. Messina verified creditors' proofs of claim until
June 29, 2007.
A general report that contains an audit of Arizona's accounting
and banking records will be submitted in court on Oct. 9, 2007.
The informative assembly will be held on April 28, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The trustee can be reached at:
Maria Josefa Messina
San Martin 4141, Mar de Plata
Buenos Aires, Argentina
CATERING ESPECIALISTAS: Individual Reports Filing Is Tomorrow
-------------------------------------------------------------
Alfonso Raul Badaracco, the court-appointed trustee for Catering
Especialistas S.R.L.'s bankruptcy proceeding, will present the
validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
Aug. 28, 2007.
Mr. Badaracco verified creditors' proofs of claim until
July 2, 2007.
A general report that contains an audit of Catering
Especialistas' accounting and banking records will be submitted
in court on Oct. 9, 2007.
Mr. Badaracco is also in charge of administering Catering
Especialistas' assets under court supervision and will take part
in their disposal to the extent established by law.
The debtor can be reached at:
Catering Especialistas S.R.L.
Avenida Cabildo 476
Buenos Aires, Argentina
The trustee can be reached at:
Alfonso Raul Badaracco
Esmeralda 980
Buenos Aires, Argentina
CONTROL Y VIGILANCIA: Claims Verification Deadline Is Oct. 24
-------------------------------------------------------------
Zulma Ghigliano, the court-appointed trustee for Control y
Vigilancia Particular SA's bankruptcy proceeding, verifies
creditors' proofs of claim until Oct. 24, 2007.
Ms. Ghigliano will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 38, 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 Control y Vigilancia 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 Control y
Vigilancia's accounting and banking records will be submitted in
court.
La Nacion didn't state the reports submission deadlines.
Ms. Ghigliano is also in charge of administering Control y
Vigilancia's assets under court supervision and will take part
in their disposal to the extent established by law.
The debtor can be reached at:
Control y Vigilancia Particular SA
Cochabamba 886
Buenos Aires, Argentina
The trustee can be reached at:
Zulma Ghigliano
Pasaje Cipoletti 554
Buenos Aires, Argentina
FIMAN SA: Trustee Filing General Report in Court Tomorrow
---------------------------------------------------------
Ricardo Adolfo Bertoglio, the court-appointed trustee for Fiman
S.A.'s bankruptcy proceeding, will submit a general report
containing an audit of the company's accounting and banking
records will be submitted in the National Commercial
Court of First Instance in Buenos Aires on Aug. 28, 2007.
Mr. Bertoglio verified creditors' proofs of claim until
May 16, 2007. He presented the validated claims in court as
individual reports on June 29, 2007.
Mr. Bertoglio is also in charge of administering Fiman's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Ricardo Adolfo Bertoglio
Lavalle 1537
Buenos Aires, Argentina
HIPPO SRL: Proofs of Claim Verification Deadline Is Oct. 18
-----------------------------------------------------------
Nestor del Potro, the court-appointed trustee for Hippo SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until
Oct. 18, 2007.
Mr. del Potro will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 34, 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 Hippo 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 Hippo's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. del Potro is also in charge of administering Hippo's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Hippo SRL
Junin 1787
Buenos Aires, Argentina
The trustee can be reached at:
Nestor del Potro
Avenida Corrientes 1291
Buenos Aires, Argentina
LAS PAMPAS: Proofs of Claim Verification Deadline Is Oct. 25
------------------------------------------------------------
Cecilia B. Montelvetti, the court-appointed trustee for Las
Pampas Polo S.A.'s reorganization proceeding, verifies
creditors' proofs of claim on Oct. 25, 2007.
Ms. Montelvetti will present the validated claims in court as
individual reports Dec. 7, 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 Las Pampas 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 Las Pampas'
accounting and banking records will be submitted in court on
Feb. 26, 2008.
The informative assembly will be held on Aug. 1, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The debtor can be reached at:
Las Pampas Polo S.A.
Tucuman 1625
Buenos Aires, Argentina
The trustee can be reached at:
Cecilia B. Montelvetti
Urquiza 2134
Buenos Aires, Argentina
METALURGICA KYSMAR: Trustee Filing Individual Reports Tomorrow
--------------------------------------------------------------
Estudio Abigador, Collia y Vighenzoni, the court-appointed
trustee for Metalurgica Kysmar S.A.I.C.'s bankruptcy proceeding,
will present the validated claims as individual reports in the
National Commercial Court of First Instance in Buenos Aires on
Aug. 28, 2007.
Estudio Abigador verified creditors' proofs of claim until
June 29, 2007.
A general report that contains an audit of Metalurgica Kysmar's
accounting and banking records will be submitted in court on
Oct. 9, 2007.
Estudio Abigador is also in charge of administering Metalurgica
Kysmar's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Estudio Abigador, Collia y Vighenzoni
Uruguay 856
Buenos Aires, Argentina
NEUQUEN PRODUCE: Proofs of Claim Verification Ends on Oct. 25
-------------------------------------------------------------
Guillermo Salem y Asociados, the court-appointed trustee for
Neuquen Produce SA's reorganization proceeding, verifies
creditors' proofs of claim on Oct. 25, 2007.
Guillermo Salem will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk
No. 3, 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 Neuquen Produce 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 Neuquen Produce's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
The debtor can be reached at:
Neuquen Produce SA
T. M. de Anchorena 678
Buenos Aires, Argentina
The trustee can be reached at:
Graciela Lukawecki
Uruguay 978
Buenos Aires, Argentina
NOSWAR SA: Trustee To File General Report in Court Tomorrow
-----------------------------------------------------------
Roberto Di Martino, the court-appointed trustee for Noswar
S.A.'s bankruptcy proceeding, will submit a general report
containing an audit of the company's accounting and banking
records in the National Commercial Court of First Instance in
Buenos Aires on Aug. 28, 2007.
Mr. Di Martino verified creditors' proofs of claim until
May 16, 2007. He presented the validated claims in court as
individual reports on June 29, 2007.
Mr. Di Martino is also in charge of administering Noswar's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Noswar SA
Florida 833/35
Buenos Aires, Argentina
The trustee can be reached at:
Roberto Di Martino
Avenida Callao 449
Buenos Aires, Argentina
RESPONSABILIDAD PATRONAL: Individual Reports Filing Is Tomorrow
---------------------------------------------------------------
Superintendencia de Seguros de la Nacion, the court-appointed
trustee for Responsabilidad Patronal ART S.A.'s bankruptcy
proceeding, will present the validated claims as individual
reports in the National Commercial Court of First Instance in La
Matanza, Buenos Aires, on Aug. 28, 2007.
Superintendencia de Seguros verified creditors' proofs of claim
until June 26, 2007.
A general report that contains an audit of Responsabilidad
Patronal's accounting and banking records will be submitted in
court on Oct. 10, 2007.
Superintendencia de Seguros is also in charge of administering
Responsabilidad Patronal's assets under court supervision and
will take part in their disposal to the extent established by
law.
The debtor can be reached at:
Responsabilidad Patronal ART S.A.
Avenida de Mayo 743
Ramos Mejia, Partido de La Matanza
Buenos Aires, Argentina
The trustee can be reached at:
Superintendencia de Seguros de la Nacion
Balcarce 298/300
Buenos Aires, Argentina
TECNIC LIMP: Trustee Filing Individual Reports on Nov. 21
---------------------------------------------------------
Stolkiner & Asociados, the court-appointed trustee for
Tecnic Limp SA's reorganization proceeding, will submit the
validated claims in court as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
Nov. 21, 2007.
Stolkiner & Asociados verifies creditors' proofs of claim until
Oct. 10, 2007.
A general report that contains an audit of Tecnic Limp's
accounting and banking records will be submitted in court on
Feb. 7, 2008.
The informative assembly will be held on Aug. 7, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
Estudio Stolkiner is also in charge of administering El Oro's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Tecnic Limp SA
Laguna 761
Buenos Aires, Argentina
The trustee can be reached at:
Stolkiner & Asociados
Avenida Cordoba 1367
Buenos Aires, Argentina
TELECOM PERSONAL: Launches Third Generation Services in Cordoba
---------------------------------------------------------------
Telecom Personal said in a statement that it has launched third
generation services in Cordoba.
Business News Americas relates that Telecom Personal is offering
these third generation services:
-- mobile broadband,
-- videoconferencing,
-- multimedia downloads,
-- E-mail, and
-- instant messaging.
Telecom Personal started offering third generation services in a
limited area in Buenos Aires in May 2007, BNamericas notes. The
company will extend coverage to the north of the city and launch
a similar network in Rosario.
According to Telecom Personal's statement, the firm would invest
ARS500 million in third generation networks from 2007 to 2009.
Telecom Personal's marketing director Guillermo Rivaben told
BNamericas that the company expects to have one million
subscribers using third generation services in two years.
Telecom Personal is the wireless provider of Telecom Argentina
SA, providing services in Argentina and Paraguay over a GSM
network. The company has 7.7 million users, with an estimated
30% market share in Argentina and a customer mix of 66% prepaid
and 34% postpaid as of June 30, 2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 13, 2006, Fitch Ratings affirmed Telecom Personal SA's
foreign and local currency Issuer Default Rating at 'B', and the
senior unsecured at 'B/RR4', and revised the Rating Outlook of
the international scale IDRs to Positive from Stable.
Approximately US$200 million in debt is affected by the rating
action. Fitch has also upgraded the national scale rating of
Personal to 'A(arg)' from 'BBB+(arg)' with a stable rating
outlook.
VIO COM: Proofs of Claim Verification Is Until Oct. 9
-----------------------------------------------------
Gonzalo Cueva, the court-appointed trustee for Vio Com
Reciclados S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Oct. 9, 2007.
Mr. Cueva will present the validated claims in court as
individual reports on Nov. 22, 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 Vio Com 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 Vio Com's accounting
and banking records will be submitted in court on Feb. 6, 2008.
Mr. Cueva is also in charge of administering Vio Com's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Gonzalo Cueva
Terrero 1752
Buenos Aires, Argentina
* ARGENTINA: Launching Hydroelectric Plant Feasibility Studies
--------------------------------------------------------------
Argentina will begin joint studies with Brazil on the
feasibility of constructing a hydroelectric plant on the border
between the two nations, Business News Americas reports.
Brazilian mines and energy ministry executive secretary Marcio
Zimmermann told reporters that the studies will begin in
September and will last for 30 months.
Mr. Zimmermann told BNamericas, "After building Madeira complex,
we will be able to build hydro plants with less negative impacts
and a smaller flooded area."
Brazil's Madeira hydro complex will include the 3.3-gigawatt
Jirau and the 3.15-gigawatt Santo Antonio plants. The complex
will launch operations in the next decade, BNamericas states.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
=============
B A H A M A S
=============
COMPLETE RETREATS: Files Amended Joint Plan of Liquidation
----------------------------------------------------------
Complete Retreats LLC and its debtor affiliates delivered to the
U.S. Bankruptcy for the District of Connecticut on
Aug. 16, 2007, amended versions of their July 2, 2007 Joint Plan
of Liquidation and Disclosure Statement.
Similar to the Original Plan of Liquidation, the First Amended
Plan contemplates and is predicated upon a substantive
consolidation of the Debtors' estates for the purposes of all
actions associated with confirmation and consummation of the
Plan.
The Amended Plan is also predicated upon the assignment of all
of the Debtors' remaining property, including avoidance actions
and causes of action, to a liquidating trust. William K.
Creelman, the Debtors' chief restructuring officer, relates that
the Liquidating Trust will hold:
(1) any remaining Cash proceeds from the sale of substantially
all of the Debtors' assets to Ultimate Resort, LLC;
(2) all property not included in the Mass Asset Sale, and any
proceeds derived therefrom;
(3) recoveries from Avoidance Actions, including, preference
actions, fraudulent transfer actions, and actions
pertaining to unauthorized postpetition transfers;
(4) recoveries from litigation instituted by the Debtors or
other estate representatives against third parties; and
(5) the Debtors' Directors & Officers Liability Insurance
Policy and any related proceeds.
The Liquidating Trust is to be (i) administered by a Liquidating
Trustee selected by the Official Committee of Unsecured
Creditors, with the consent of the Debtors; and (ii) advised by
a three-person Plan Advisory Committee, currently contemplated
to be comprised of former members of the Creditors Committee
selected by the Liquidating Trustee.
Treatment of Claims
Aggregate
Class Claim Amount Recovery & Treatment
----- ------------ --------------------
Administrative US$10,500,000 Estimated Recovery: 100%
Expense Claims Each holder of an Allowed
Administrative Expense Claim will
receive cash equal to the Allowed
Claim Amount except for those who
agree to a less favorable
treatment and those who will be
paid by Ultimate Resort pursuant
to the Debtors' management
agreement with Ultimate.
Priority Tax US$200,000 Estimated Recovery: 100%
Claims Each holder of an Allowed Priority
Tax Claim will receive, at the
Debtors' election and in
consultation with Creditors
Committee, either:
(a) Cash equal to the Allowed
Claim Amount; or
(b) in accordance with Section
1129(a)(9)(C) of the
Bankruptcy Code, regular cash
installment payments.
Class 1: US$0 Estimated Recovery: 100%
Outstanding At the Debtors' election and in
Secured Claims consultation with the Creditors
Committee, the Debtors will:
(a) pay the amount of an Allowed
Outstanding Secured Claim in
full, in cash;
(b) return the underlying
collateral to the secured
claimholder;
(c) reinstate an Allowed
Outstanding Secured Claim in
accordance with Section 1124(2)
of the Bankruptcy Code; or
(d) treat an Allowed Outstanding
Secured Claim in a manner
otherwise agreed to by the
claimholder.
Class 2: US$0 Estimated Recovery: 100%
Priority Each holder of an Allowed Priority
Non-Tax Claims Non-Tax Claim will receive cash
equal to the Allowed Claim Amount
except to the extent a holder has
agreed to a less favorable
treatment.
Class 3: US$350,000,000 Estimated Recovery:
General
Unsecured (a) approximately between 0 and
4.9% Claims or Declining
Offerees and Other General
Unsecured Creditors; and
(b) approximately between 0 and
1.7% for Accepting Offerees.
Impaired and Entitled to Vote:
Except to the extent a claimholder
has agreed to a less favorable
treatment, each holder of an
Allowed General Unsecured Claim
will receive its Pro Rata Share of
the Cash proceeds of the
Liquidating Trust Assets, to be
distributed in two
tranches:
(1) for up to the first $10,000,000
of Cash distributed by the
Liquidating Trustee to the
holders of Allowed
General Unsecured Claims, the
Accepting Offerees' Pro Rata
Share of those distributions
will be calculated based upon
33% of the face amount of their
Allowed General Unsecured
Claims, and the Declining
Offerees' and the
Other General Unsecured
Creditors' Pro Rata Share
thereof will be calculated
based
upon 100% of the face amount of
their Allowed General Unsecured
Claims; and
(2) For all cash distributions
beyond Tranche A, all holders
of Allowed General Unsecured
Claims will be entitled to
receive their Pro Rata Share of
the distributions based upon
100% of the balance of the face
amount of their Allowed General
Unsecured Claims, after taking
into consideration the amount
the holders received from
Tranche A.
The Debtors do not anticipate
that distributions will be made
on account of Class 3 Claims on
the Effective Date; rather,
those distributions, if any,
will be made over time in
accordance with the Liquidating
Trust Agreement.
Class 4: at least Estimated Recovery:
Convenience US$28,000 approximately 3%
Claims
Impaired and Entitled to Vote:
Except to the extent a
claimholder has agreed to a
less favorable treatment, each
holder of an Allowed
Convenience Claim will receive
Cash equal to 3% of the Allowed
Claim Amount.
Class 5: N/A Recovery: 0%
Equity
Interests Impaired and Not Entitled to
Vote:
On the Effective Date, all
Equity Interests issued (a) by
Complete Retreats or Preferred
Retreats, LLC; (b) by Private
Retreats, LLC, other than those
held by Complete Retreats; and
(c) to a former member, if any,
will be canceled. All Equity
Interests (i) of all the
Debtors other than Complete
Retreats and Preferred
Retreats, and (ii) in Private
Retreats held by Complete
Retreats, will temporarily
remain in effect until the
applicable Debtor has satisfied
its obligations under the Plan.
Each holder of Equity Interests
issued or pledged by (1)
Complete Retreats or
Preferred Retreats, and (2)
Private Retreats other than
those held by Complete
Retreats, will neither receive
nor retain any property or
interest in property on account
of the Equity Interest.
The Plan further contemplates a standard Claims estimation and
litigation reserve procedure for tort litigants and other
disputed claims and a customary Claims review and allowance
process to verify, quantify, and finally determine the amount of
all Claims, Mr. Creelman says.
In addition, the Plan includes releases and exculpation
provisions for certain of the Debtors' directors, officers, and
employees, as well as for certain professionals that have served
the Debtors and the Creditors Committee during these Cases. Mr.
Creelman notes that the releases expressly do not extend to
certain of the Debtors' former management whom the Debtors and
the Creditors Committee are currently investigating with regard
to their activities prior to the Chapter 11 cases.
Issuance of New Complete Retreats Membership Interest
On the Effective Date, the Liquidating Trustee, as custodian,
will issue one new limited liability company membership interest
in Complete Retreats. The Liquidating Trustee will not sell,
transfer, or otherwise dispose of the New Complete Retreats
Membership Interest, except as otherwise set forth
in the Liquidating Trust Agreement. The New Complete Retreats
Membership Interest will automatically be canceled on the date
Complete Retreats is dissolved without further Court order.
The Liquidating Trustee will seek the Court's permission to
close Complete Retreats' Chapter 11 case when all Disputed
Claims filed against the Debtors have become Allowed Claims or
have been disallowed by a final order, and all of the proceeds
of the Liquidating Trust Assets have been liquidated and
distributed in accordance with the Plan. The Liquidating
Trustee may seek to close Complete Retreats' case or the other
Debtors' cases at prior to that time, Mr. Creelman clarifies.
Dissolution of Creditors Committee
On the Effective Date, the Creditors Committee will be
dissolved, and its members will be deemed released of all their
duties, responsibilities, and obligations in connection with the
bankruptcy cases. The retention of the Committee's
professionals will also terminate. According to Mr. Creelman,
the Creditors Committee may still evaluate, object to, and
appear at the hearing to consider applications for allowances of
professional fees, and support or prosecute any objections to
those applications. Moreover, the Committee' reasonable fees
and expenses incurred in connection with the prosecution or
objections will be paid by the Liquidating Trust.
A full-text copy of the Debtors' First Amended Joint Plan of
Liquidation is available for free at:
http://ResearchArchives.com/t/s?22ba
A full-text copy of the First Amended Disclosure Statement is
available for free at http://ResearchArchives.com/t/s?22bb
Complete Retreats, LLC, Preferred Retreats, LLC, and their
subsidiaries were founded in 1998. Owned by Robert McGrath and
four minority owners, the companies operate a five-star
hospitality and real estate management business and are a
pioneer and market leader of the "destination club" industry.
Under the trade name "Tanner & Haley Resorts," Complete
Retreats, et al.'s destination clubs have numerous individual
and company members.
Destination club members pay up-front membership deposits,
annual dues, and daily usage fees. In return, members and their
guests enjoy the use of first-class private residences, and
receive an array of luxurious services and amenities in certain
exotic vacation destinations in the United States and locations
around the world, including: Abaco, Bahamas; Cabo San Lucas,
Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson
Hole, Wyoming.
Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306). Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts. Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor. When
the Debtors filed for chapter 11 protection, they listed total
debts of US$308,000,000. (Complete Retreats Bankruptcy News,
Issue No. 31; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
COMPLETE RETREATS: Withdraws Notice of XRoads Termination
---------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates have withdrawn
the notice terminating their engagement with XRoads Solutions
Group, LLC, their financial advisors. The Debtors did not state
any reasons for the withdrawal.
The Debtors notified the U.S. Bankruptcy Court for the District
of Connecticut on Aug. 1, 2007, of their intention to terminate
their employment agreement with XRoads, accusing XRoads of
materially defaulting under the Agreement.
XRoads subsequently responded to the Termination Notice denying
the Debtors' allegations. William K. Creelman, a principal at
XRoads Solutions Group, LLC, said, however, that XRoads was
prepared to accept the notice and cease working on the Debtors'
bankruptcy cases on Aug. 15, 2007, unless a resolution among
the parties is reached. Mr. Creelman serves as the Debtors'
chief restructuring officer.
The Termination Notice was to have been effective on
Aug. 16, 2007.
Complete Retreats, LLC, Preferred Retreats, LLC, and their
subsidiaries were founded in 1998. Owned by Robert McGrath and
four minority owners, the companies operate a five-star
hospitality and real estate management business and are a
pioneer and market leader of the "destination club" industry.
Under the trade name "Tanner & Haley Resorts," Complete
Retreats, et al.'s destination clubs have numerous individual
and company members.
Destination club members pay up-front membership deposits,
annual dues, and daily usage fees. In return, members and their
guests enjoy the use of first-class private residences, and
receive an array of luxurious services and amenities in certain
exotic vacation destinations in the United States and locations
around the world, including: Abaco, Bahamas; Cabo San Lucas,
Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson
Hole, Wyoming.
Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306). Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts. Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor. When
the Debtors filed for chapter 11 protection, they listed total
debts of US$308,000,000. (Complete Retreats Bankruptcy News,
Issue No. 31; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
=============
B E R M U D A
=============
AMEREX FUTURES: Proofs of Claim Filing Ends Aug. 29
---------------------------------------------------
Amerex Futures (Bermuda) Limited's creditors are given until
Aug. 29, 2006, to prove their claims to Nicholas Hoskins, the
company's liquidator, or be excluded from receiving any
distribution or payment.
Creditors are required to send by the Aug. 29 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Hoskins.
A final general meeting will be held at the liquidator's place
of business on Sept. 7, 2006, at 11:0 a.m., or as soon as
possible.
Amerex Futures' shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company and of the liquidator will be
disposed. Furthermore, the shareholders will decide whether or
not Amerex Futures will be dissolved.
Amerex Futures' shareholders agreed on Aug. 1, 2006, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Nicholas Hoskins
Wakefield Quin
Chancery Hall, 52 Reid Street
Hamilton, Bermuda
SPECTRUM (BERMUDA): Sets Final General Meeting for Aug. 30
----------------------------------------------------------
Spectrum (Bermuda) IV Ltd.'s final general meeting is scheduled
on Aug. 30, 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 O L I V I A
=============
NEWMONT MINING: Amends Dividend Record Date to Sept. 6
------------------------------------------------------
Newmont Mining Corporation has changed the record date for the
dividend declared by the Board of Directors on July 18, 2007, as
the date originally set is a non-settlement date in Australia.
The record date will be changed from Sept. 7, 2007 to
Sept. 6, 2007. Accordingly, the regular quarterly dividend of
US$0.10 per share, payable Sept. 28, 2007, will be paid to
holders of record at the close of business on Sept. 6, 2007.
In addition, Newmont Mining Corporation of Canada Limited will
pay a regular quarterly dividend of CDN$0.1044 per share on its
exchangeable shares on Sept. 28, 2007 to holders of record at
the close of business on Sept. 6, 2007. This dividend is
designated as an "eligible dividend" for Canadian tax purposes.
Newmont Mining Corporation (NYSE: NEM), based in Denver,
Colorado, USA, is one of the world's largest producers of gold,
with active mines in, Nevada, Indonesia, Australia/New Zealand,
Ghana, and Peru. Some smaller operations include Bolivia,
Mexico, and Canada. Holdings include Battle Mountain Gold,
Normandy Mining, and Franco-Nevada Corp. Newmont also has many
joint venture relationships. As of Dec. 31, 2006, Newmont
produced approximately 5.9 million equity ounces of gold
annually and held reserves of about 94 million of those equity
ounces. Production in the Americas accounts for about 70% of
the company's equity ounces, but even so, Newmont is the largest
gold mining company in Australia. Newmont employs approximately
15,000 people worldwide and the company says it is committed to
the highest standards for environmental protection, worker
health and safety, and benefiting host communities. Other
metals that the company mines include copper and silver.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 16, 2003, investment company Boston Common Asset Management
filed a shareholder resolution with Newmont Mining Corporation,
the world's largest gold-mining firm, calling on the company to
prepare a report on the risk to the company's operations,
profitability and reputation from its social and environmental
liabilities.
* BOLIVIA: In Investment Talks with Brazilian State Oil Firm
------------------------------------------------------------
The Bolivian government is negotiating with Brazilian state-
owned oil firm Petroleo Brasileiro SA about exploration and
production investments in the country, according to local
reports, citing Brazil's mines and energy ministry executive
secretary Marcio Zimmermann.
Mr. Zimmermann commented to Business News Americas, "I know that
Petrobras [Petroleo Brasileiro] and the Bolivian government are
discussing the issue, but I do not know if they have advanced on
this or not. All I can say is that the current contract between
Bolivia and Brazil is being respected and expires in 2019."
BNamericas relates that Bolivian state-run oil firm Yacimientos
Petroliferos Fiscales Bolivianos gave foreign oil companies
operating in the nation until Nov. 2, 2007, to present updated
development plans.
The submission of the plans are part of the nationalization
Bolivia's hydrocarbons sector and new exploration and production
contracts that took effect on May 2, 2007, BNamericas states.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
* BOLIVIA: May Conduct Hydroelectric Studies with Brazil
--------------------------------------------------------
Brazil "is open" to conducting joint studies with Bolivia on the
possibility of constructing hydroelectric plants along the
border of the two nations, Business News Americas reports.
Brazilian mines and energy ministry executive secretary Marcio
Zimmermann told the press, "Brazil has 100 kilometers of border
with Bolivia that could be studied for future projects."
The Brazilian government told Bolivia authorities that its
Madeira hydro complex won't have negative effects in Bolivia,
BNamericas says, citing Mr. Zimmermann.
BNamericas notes that Brazil's 6.45-gigawatt Madeira hydro
complex is in Amazon, which is near the border with Bolivia.
The complex will start operating in the next decade.
Critics told BNamericas that Madeira flooding would affect
Bolivian residents and the environment.
"The plant will be restricted to Brazilian territory and we have
the sovereignty to decide. It's different from the Itaipu power
plant, where the water flows from Brazil to Argentina," Mr.
Zimmermann commented to BNamericas.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
BANCO NACIONAL: Providing BRL192MM for Pernambuco Water Projects
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA will
provide BRL192 million for water projects in Pernambuco, the
state's government posted on its Web site.
Business News Americas relates that Pernambuco's state water
firm Compesa will be contracted to receive and administer BRL124
million of the resources. These will be invested in 12 small
and medium-sized projects that would boost water provision
services in Recife.
BNamericas notes that about BRL68 million will be allocated for
Compesa's water management improvements and investment to lessen
hydro losses. Before the final approval of the funds, the state
government must submit an official outline of the projects to
Banco Nacional.
"The investments reinforce the [state] government's strategy
which consists of strengthening Compesa's management capacity.
We will improve controls and therefore offer better services and
optimize resources," state hydro resources head and Compesa
president Joao Bosco told BNamericas.
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 May 21, 2007, Standard & Poor's Ratings Services
raised its long-term foreign currency counterparty credit rating
on four Brazilian government-related entities to BB+ from BB,
namely Banco Nacional do Desenvolvimento Economico e Social,
Eletrobras -- Centrais Eletricas Brasileiras S.A., Banco do
Brasil S.A., and Banco do Nordeste do Brasil S.A.
BRASIL TELECOM: Gov't Supporting Firm's Merger with Oi
------------------------------------------------------
Brazil's Chief of Staff Dilma Rousseff told news daily Valor
Economico that the government will support Brasil Telecom's
merger with fixed line operator Oi, as long as the new firm
remains in Brazilian hands.
Mr. Rousseff told Business News Americas that President Luiz
Inacio Lula da Silva said the government wants the capital of
Brasil Telecom and Oi to stay in the hands of a national firm
rather than a foreign investor.
BNamericas relates that to allow the merger, President Lula da
Silva would need to ratify reforms in Brazil's telecoms
legislation, which currently doesn't let two competing national
concession contract holders to merge.
Mr. Rousseff told Valor Economico "Brazilian investors Andrade
Gutierrez and LaFonte meet the profile the government is
seeking."
Meanwhile, pension funds that hold significant stakes in Oi and
Brasil Telecom told BNamericas that the telecoms operators don't
need a strong national owner.
A merger between Oi and Brasil Telecom was the best option,
BNamericas says, citing US consultancy Gartner telecoms analyst
Elia San Miguel.
Ms. San Miguel told BNamericas that Oi and Brasil Telecom are
vulnerable if they stay alone as they face a fierce challenge
from Spain's Telefonica and Mexico's America Movil. The merger
would let them combine resources and use their strength in fixed
mobile convergence.
Oi and Brasil Telecom "can put pressure on prices with
promotions and packages in Brazil," Ms. San Miguel admitted to
BNamericas.
About Oi
Oi is a wireless unit of Telemar Norte Leste Participacoes,
which is a provider of telecommunication services in South
America. Oi provides Telemar Norte's mobile services. It has
acquired data transmission services provider Pegasus.
About Brasil Telecom
Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA. The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional
long-distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.
* * *
Brasil Telecom Participacoes' local currency long-term debt
carries Fitch's BB+ rating.
Moody's Investors Service placed a Ba1 local currency long-term
issuer rating on Brasil Telecom.
DELPHI CORP: Signs Settlement Agreement with Teachers' Group
------------------------------------------------------------
Delphi Corporation and Lead Plaintiffs Teachers' Retirement
System of Oklahoma, Public Employees' Retirement System of
Mississippi, Raiffeisen Kapitalanlage-Gesellschaft m.b.H. and
Stichting Pensioenfonds ABP have entered into a settlement of a
securities class action litigation. The settlement includes a
comprehensive settlement with Delphi's insurers.
The Action has been litigated on behalf of a proposed Class of
investors who purchased or acquired publicly traded shares,
bonds, or notes of Delphi and securities issued by Delphi Trust
I and Delphi Trust II between March 7, 2000, and March 3, 2005,
inclusive. The Settlement, upon approval by both the District
Court and the Bankruptcy Court, would end the securities
litigation with respect to the Company and all Individual
Defendants named in the action. The settlement shall also
resolve claims against the investment banking firms named as
defendants in the action, which pursuant to Delphi's
reorganization plan, will be released having also contributed to
the settlement consideration to be paid to the Class. The
Action would continue with respect to Deloitte & Touche, LLP,
Delphi's outside auditor during the Class Period, as well as
Defendants JPMorgan Chase & Co (as successor in interest to Bank
One Corporation), SETECH Inc. and BBK, Ltd, three independent
companies alleged to have participated with Delphi in
transactions designed to mask Delphi's financial problems during
the Class Period. None of these parties will be released from
liability for these claims in connection with the Settlement.
The case caption is: In re: Delphi Corporation Securities,
Derivative and "Erisa" Litigation, E.D. Mich., Master Case No.
05-MD-1725.
The terms of the settlement are presently confidential.
Investors wishing to discuss other aspects of this class action
settlement or having any questions concerning their rights or
interests with respect to this matter, please contact any of the
four co-lead counsel in the Action:
-- Bernstein Litowitz Berger & Grossmann, LLP (Atty. John
P. Coffey at 212-554-1400 or via e-mail at
sean@blbg.com),
-- Grant & Eisenhofer, P.A. (Atty. Stuart Grant at
302-622-7000 or via e-mail at sgrant@gelaw.com),
-- Nix, Patterson & Roach, L.L.P. (Atty. Brad Beckworth at
903-645-7333 or via e-mail at bbeckworth@nixlawfirm.com)
and
-- Schiffrin Barroway Topaz & Kessler, LLP (Atty. Sean
Handler at 1-888-299-7706 or via e-mail at
shandler@sbtklaw.com).
Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Mar. 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts. The Debtors' exclusive plan-filing period expires on
Dec. 31, 2007.
GENERAL MOTORS: Trimming Production in SUV & Pickup Truck Plants
----------------------------------------------------------------
General Motors Corp. is cutting production at six North American
plants that make large pickup trucks and sport-utility vehicles
as the company moves to clear dealer lots of excess inventory,
Jeff Green at Bloomberg News reports.
Company spokesman Tom Wickham told Bloomberg in an interview
that the factories will eliminate previously scheduled overtime
the rest of the year for models such as the Chevrolet Suburban
SUV and GMC Sierra pickup.
John D. Stoll and Neal E. Boudette of The Wall Street Journal
relate that GM's move is underscoring fears that the auto
industry is headed for a longer and more painful downturn in
the U.S. than many had expected.
Citing industry observers, WSJ says a longer downturn could
threaten the turnaround plans of GM due to sharp declines
in U.S. auto sales in the last two months as falling home
values and credit worries damped consumer interest.
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.
MERCANTIL DO BRASIL: Eyes 40% Loan Growth in 2007
-------------------------------------------------
Mercantil do Brasil's executive director Andre Brasil told
Business News Americas that the bank has raised loan growth
projections to 40% in 2007 after lending increased beyond
expectations in the first six months.
Mercantile do Brasil forecasted a 33% yearly growth in lending
at the start of 2007, BNamericas notes, citing Mr. Brasil.
However, the bank revised prediction after increasing its loan
portfolio by 20% to BRL3.01 billion in June 2007, from June
2006.
Mr. Brasil told BNamericas that growth in all lending lines,
particularly payroll-linked loans and vehicle financing in the
retail loan portfolio, surpassed expectations. Retail lending
represented 30% of Mercantil do Brasil's loan book, while
commercial lending accounted for 70%.
BNamericas relates that Mercantil do Brasil's non-performing
loan ratio was unchanged in June 2007, compared to June 2006.
It remained at around 7% for individual borrowers and 2% for
businesses.
Mr. Brasil commented to BNamericas, "The NPL [non-performing
loan] ratio for businesses might improve a little bit in the
second half but we don't really see any reason why it should
change before the end of the year."
The report says that small and medium-sized enterprises
represented 60% of Mercantil do Brasil's commercial loan book.
The bank's net profits grew 20% year-on-year to BRL17.0 million
in the first half of 2007. The bank raised projections for the
rest of the year.
Mr. Brasil told BNamericas that Mercantil do Brasil initially
projected a 15% increase in net profits in the first six months
of 2007, compared to the first six months of 2006.
According to BNamericas, Mercantil do Brasil raised almost
US$528 million on international markets in the first half of
2007, about 200% higher compared to the first half of 2006. It
last issued a bond in May 2007 in the US and Asia for US$100
million. It will make another issue in the second half of this
year to finance increased lending operations.
Mercantil do Brasil's assets increased 21% to BRL6.49 billion in
the first six months of 2007, from the first six months of 2006,
BNamericas states.
Banco Mercantil do Brasil is headquartered in Belo Horizonte,
Brazil and had BRL5.6 billion (US$2.6billion) in total assets
and BRL567 million (US$269 million) in shareholders' equity as
of December 2006.
As reported in the Troubled Company Reporter-Latin America on
June 20, 2007, Standard & Poor's Ratings Services affirmed its
'B' long-term counterparty credit rating on Banco Mercantil do
Brasil S.A. S&P's outlook on the rating is stable.
MRS LOGISTICA: Will Buy 700 Wagons & Locomotives
------------------------------------------------
MRS Logistica President and Chief Executive Officer Julio
Fontana told business Americas that the firm will purchase 700
new wagons and additional locomotives.
Mr. Fontana commented to BNamericas, "We are negotiating the
purchase of 700 locally produced wagons costing around BRL80
million and another order for locomotives for delivery between
2008 and 2009."
The wagons are part of MRS Logistica's plans to deal with the
expected growth in demand from the mining and metals sector over
the coming years, BNamericas says, citing Mr. Fontana.
According to BNamericas, MRS Logistica bought about 137 wagons
for BRL22 million earlier last week.
Mr. Fontana explained to BNamericas, "These 137 wagons make up
the final lot of an order of 400 which we bought to prepare the
company for the expected increase in cargo volume toward the end
of this year and next year."
MRS Logistica wants to make the wagons to be operative by
October or November this year, BNamericas notes, citing Mr.
Fontana.
The report says that MRS Logistica's growth expectation plans
also extended to locomotive buys.
"Last year, MRS bought 50 locomotives from GE; of these we have
so far received 30 units. In September or October, we expect to
receive another 10 and then the last 10 between November and
January," Mr. Fontana told BNamericas.
The MRS consortium is a railway freight transport company
established in 1996 to operate approximately 1,700 kilometers of
track in the states of Minas Gerais, Rio de Janeiro e Sao Paulo.
MRS's rail network is also linked to the Central Atlantic,
Vitoria-Minas and Sao Paulo Railroads, offering intramodal
transportation options to the other parts of the country. The
company mainly transports cargo for its principle shareholders.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 24, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based railroad
company MRS Logistica S.A. S&P revised the outlook to positive
from stable.
XERIUM TECH: Completes Restated Financial Statements
----------------------------------------------------
Xerium Technologies Inc. had completed the restatement of
certain of its previously issued financial statements, following
a review of the accounting treatment of interest rate swaps that
it entered into in June 2005.
Thomas Gutierrez, President and Chief Executive Officer of
Xerium Technologies, commented, "We addressed the need to review
our financial statements in light of evolving, complex interest
rate swap accounting, and are pleased that we were quickly able
to resolve all issues completely and accurately. As we noted
previously, these hedging activities have been successful in
fulfilling their goal of providing stability to the Company's
interest rate structure. It should also be noted that this
technical accounting issue affected only interest expense,
related income taxes and net income (loss). There was no impact
on operating cash flow, sales, operating income or Adjusted
EBITDA, nor does it affect the company's debt covenants. As can
be seen in the amended financial statements, the aggregate
effect of the restatement was to boost the company's net income
over the restated period. For the period of the third quarter
2007 through the second quarter 2008, at which time the current
interest rate swaps are set to expire, we expect to record in
the aggregate approximately US$8 million of additional interest
expense to our Income Statement in connection with marking to
market through earnings the 2005 interest rate swaps. This
additional interest expense over that period is excluded for the
purposes of our bank covenant calculations and therefore has no
effect on those calculations."
The consolidated financial statements restated are the
consolidated balance sheets as of Dec. 31, 2006, and 2005 and
the consolidated statements of operations, stockholders' equity
(deficit), and cash flows for the years 2006 and 2005 and the
company's unaudited quarterly financial statements during these
years, commencing with the quarter ended June 30, 2005, and for
the quarter ended March 31, 2007. Accordingly, the Company
today filed an amended Annual Report on Form 10-K/A for the year
ended Dec. 31, 2006, and an amended Quarterly Report on Form
10-Q/A for the quarter ended March 31, 2007, along with its
Quarterly Report on Form 10-Q for the quarter ended
June 30, 2007.
Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. -- http://xerium.com/-- manufactures and supplies two
types of products used primarily in the production of paper:
clothing and roll covers. The company operates under a variety
of brand names and owns a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products, designed to optimize performance and
reduce operational costs. With 35 manufacturing facilities in
15 countries, including Austria, Brazil and Japan, Xerium
Technologies has approximately 3,900 employees.
* * *
Moody's Investors Service changed the outlook on Xerium
Technologies, Inc.'s ratings to negative from stable, and
affirmed the company's corporate family rating at B1. The
change in outlook to negative reflects Xerium's weaker than
expected operating performance primarily due to production
inefficiencies in North America and delays in achieving benefits
from cost reduction initiatives. Moody's believes the impact of
these issues, coupled with a difficult pricing environment for
roll covers and to a lesser extent clothing products, will
continue to negatively affect operating performance over the
intermediate term.
Affirmed ratings are:
* Corporate family rating; B1
* Guaranteed senior secured term loan B; B1
* Guaranteed senior secured revolving credit facility; B1
* BRAZIL: Launching Hydroelectric Plant Feasibility Studies
-----------------------------------------------------------
Brazil will begin joint studies with Argentina on the
feasibility of constructing a hydroelectric plant on the border
between the two nations, Business News Americas reports.
Brazilian mines and energy ministry executive secretary Marcio
Zimmermann told reporters that the studies will begin in
September and will last for 30 months.
Mr. Zimmermann commented to BNamericas, "After building Madeira
complex, we will be able to build hydro plants with less
negative impacts and a smaller flooded area."
Brazil's Madeira hydro complex will include the 3.3-gigawatt
Jirau and the 3.15-gigawatt Santo Antonio plants. The complex
will launch operations in the next decade, BNamericas states.
* * *
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.
* BRAZIL: May Conduct Hydroelectric Studies with Bolivia
--------------------------------------------------------
Brazil "is open" to conducting joint studies with Bolivia on the
possibility of constructing hydroelectric plants along the
border of the two nations, Business News Americas reports.
Brazilian mines and energy ministry executive secretary Marcio
Zimmermann told the press, "Brazil has 100 kilometers of border
with Bolivia that could be studied for future projects."
The Brazilian government told Bolivia authorities that its
Madeira hydro complex won't have negative effects in Bolivia,
BNamericas says, citing Mr. Zimmermann.
BNamericas notes that Brazil's 6.45-gigawatt Madeira hydro
complex is in Amazon, which is near the border with Bolivia.
The complex will start operating in the next decade.
Critics told BNamericas that Madeira flooding would affect
Bolivian residents and the environment.
"The plant will be restricted to Brazilian territory and we have
the sovereignty to decide. It's different from the Itaipu power
plant, where the water flows from Brazil to Argentina," Mr.
Zimmermann commented to BNamericas.
* * *
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.
* BRAZIL: State Firm in Investment Talks with Bolivian Gov't
------------------------------------------------------------
Brazilian mines and energy ministry executive secretary Marcio
Zimmermann told the press that the nation's state-owned oil firm
Petroleo Brasileiro SA is negotiating with the Bolivian
government about exploration and production investments in
Bolivia.
Mr. Zimmermann commented to Business News Americas, "I know that
Petrobras [Petroleo Brasileiro] and the Bolivian government are
discussing the issue, but I do not know if they have advanced on
this or not. All I can say is that the current contract between
Bolivia and Brazil is being respected and expires in 2019."
BNamericas relates that Bolivian state-run oil firm Yacimientos
Petroliferos Fiscales Bolivianos gave foreign oil companies
operating in the nation until Nov. 2, 2007, to present updated
development plans.
The submission of the plans are part of the nationalization
Bolivia's hydrocarbons sector and new exploration and production
contracts that took effect on May 2, 2007, BNamericas states.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
* * *
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.
* BRAZIL: Supporting Merger Between Brasil Telecom & Oi
-------------------------------------------------------
Brazil's chief of staff Dilma Rousseff told news daily Valor
Economico that the government will support Brasil Telecom's
merger with fixed line operator Oi, as long as the new firm
remains in Brazilian hands.
Mr. Rousseff told Business News Americas that President Luiz
Inacio Lula da Silva said the government wants the capital of
Brasil Telecom and Oi to stay in the hands of a national firm
rather than a foreign investor.
BNamericas relates that to allow the merger, President Lula da
Silva would need to ratify reforms in Brazil's telecoms
legislation, which currently doesn't let two competing national
concession contract holders to merge.
Mr. Rousseff told Valor Economico "Brazilian investors Andrade
Gutierrez and LaFonte meet the profile the government is
seeking."
Meanwhile, pension funds that hold significant stakes in Oi and
Brasil Telecom told BNamericas that the telecoms operators don't
need a strong national owner.
A merger between Oi and Brasil Telecom was the best option,
BNamericas says, citing US consultancy Gartner telecoms analyst
Elia San Miguel.
Ms. San Miguel told BNamericas that Oi and Brasil Telecom are
vulnerable if they stay alone as they face a fierce challenge
from Spain's Telefonica and Mexico's America Movil. The merger
would let them combine resources and use their strength in fixed
mobile convergence.
Oi and Brasil Telecom "can put pressure on prices with
promotions and packages in Brazil," Ms. San Miguel admitted to
BNamericas.
About Oi
Oi is a wireless unit of Telemar Norte Leste Participacoes,
which is a provider of telecommunication services in South
America. Oi provides Telemar Norte's mobile services. It has
acquired data transmission services provider Pegasus.
About Brasil Telecom
Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA. The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional
long-distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.
* * *
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
===========================
CONTEL PAGE: Proofs of Claim Filing Is Until Aug. 31
----------------------------------------------------
Contel Page International Inc.'s creditors are given until
Aug. 31, 2007, to prove their claims to David A.K. Walker and
Lawrence Edwards, 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.
Contel Page's shareholders agreed on June 22, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
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
CYGNUS ASSET: Proofs of Claim Filing Deadline Is Aug. 28
--------------------------------------------------------
Cygnus Asset Management Ltd.'s creditors are given until
Aug. 28, 2007, to prove their claims to Ronald Tompkins, 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.
Cygnus Asset's shareholders agreed on July 20, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Ogier
Attention: Angus Davison
c/o Ogier
P.O. Box 1234
Grand Cayman KY1-1108
Cayman Islands
Tel: (345) 949 9876
Fax: (345) 949 1986
EUREKA INTERACTIVE: Proofs of Claim Filing Deadline Is Aug. 31
--------------------------------------------------------------
The Eureka Interactive Fund Ltd.'s creditors are given until
Aug. 31, 2007, to prove their claims to John Sutlic and Jeffrey
Arkley, 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.
Eureka Interactive's shareholders agreed on March 30, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
John Sutlic
Attention: Kim Charaman
Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034
Grand Cayman KY1-1102
Tel: (345) 949 8455
Fax: (345) 949 8499
JAPAN ADVISORY: Proofs of Claim Filing Deadline Is Aug. 31
----------------------------------------------------------
Japan Advisory Ltd.'s creditors are given until Aug. 31, 2007,
to prove their claims to David A.K. Walker and Lawrence Edwards,
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.
Japan Advisory's shareholders agreed on June 25, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman KY1-1104
Cayman Islands
Tel: (345) 914 8694
Fax: (345) 945 4237
LEVERAGED FUND: Proofs of Claim Filing Is Until Aug. 29
-------------------------------------------------------
The Leveraged Fund Ltd.'s creditors are given until
Aug. 29, 2007, to prove their claims to David A.K. Walker and
Lawrence Edwards, 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.
Leveraged Fund'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:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman KY1-1104
Cayman Islands
Tel: (345) 914 8694
Fax: (345) 945 4237
PLAZA GLOBAL: Sets Final Shareholders Meeting for Aug. 30
---------------------------------------------------------
Plaza Global Alpha Selection SPC Ltd. will hold its final
shareholders meeting on Aug. 30, 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:
Jeff Arkley
Attention: Neil Gray
Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034
George Town, Grand Cayman
Cayman Islands
Tel: (345) 949 8455
Fax: (345) 949 8499
SCOTTISH RE: Moody's Affirms (P)Ba3 Sr. Unsecured Shelf Rating
--------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Scottish Re
Group Limited (Scottish Re; NYSE: SCT, senior unsecured shelf of
(P)Ba3 and changed the outlook to stable from positive. The
change in outlook applies to the company's debt ratings and the
Baa3 insurance financial strength (IFS) ratings of the company's
core insurance subsidiaries, Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. All of the
ratings were affirmed.
The company recently reported that as of June 30, 2007, it had
approximately US$3.1 billion of subprime ABS and Alt-A holdings
out of a total investment portfolio of US$13.6 billion.
According to Scott Robinson, Moody's Vice President & Senior
Credit Officer, "Most of the exposure is in higher rated
securities, mitigating potential losses in a downside scenario
in this sector of the market. Still, Moody's believes that the
magnitude of the exposure and the potential for losses to emerge
on the portfolio may make it more difficult for Scottish Re to
regain the confidence of cedants and write meaningful amounts of
new business."
Moody's notes that although much of the subprime ABS and Alt-A
exposure (US$2.4 billion) resides in non-recourse securitization
vehicles the company has sponsored, the company's substantial
equity investments in these securitizations would be eroded
should the investment holdings experience realized losses. As
default experience on recent vintages of subprime and Alt-A
investments emerges, Moody's will continue to evaluate the
impact of potential ranges of investment losses on the company's
financials.
According to Moody's, continued deterioration of the company's
subprime ABS and Alt-A investments, the inability to execute an
agreement to secure collateral for redundant statutory reserves
associated with 2005 and 2006 level premium term business, and a
lack of steady progress on implementing its strategy would lead
to downward pressure on the rating. To the contrary, the
retention of existing business combined with a demonstrated
improvement in originating new business, less earnings
volatility, and the emergence of favorable mortality and lapse
assumptions would lead to positive pressure on the ratings.
These ratings were affirmed, with the outlook changed to stable
from positive:
Scottish Re Group Limited:
* Senior unsecured shelf of (P)Ba3;
* subordinate shelf of (P)B1;
* junior subordinate shelf of (P)B1;
* preferred stock of B2; and
* preferred stock shelf of (P)B2
Scottish Holdings Statutory Trust II:
* preferred stock shelf of (P)B1
Scottish Holdings Statutory Trust III:
* preferred stock shelf of (P)B1
Scottish Annuity & Life Insurance Company (Cayman) Ltd.:
* IFS rating of Baa3
Premium Asset Trust Series 2004-4:
* senior secured debt of Baa3
Scottish Re (U.S.), Inc.:
* insurance financial strength of Baa3
Stingray Pass-Through Certificates:
* Baa3 (based on IFS rating of SALIC)
On May 17, Moody's confirmed Scottish Re's ratings with a
positive outlook. The rating action followed the completion of
a US$600 equity investment transaction in which Scottish Re sold
a majority stake to MassMutual Capital Partners LLC, a member of
the MassMutual Financial Group and Cerberus Capital Management,
L.P., a private investment firm.
Moody's insurance financial strength ratings are opinions of the
ability of insurance companies to repay punctually senior
policyholder claims and obligations.
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities. On June 30, 2007,
Scottish Re reported total assets of US$13.6 billion and
shareholder's equity of US$1.2 billion.
SYSTEIA ALTERNATIVE: Proofs of Claim Filing Is Until Aug. 31
------------------------------------------------------------
Systeia Alternative Risk Trading Fund's creditors are given
until Aug. 31, 2007, to prove their claims to David A.K. Walker
and Lawrence Edwards, 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.
Systeia Alternative's shareholders agreed on June 22, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
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
=========
C H I L E
=========
BOSTON SCIENTIFIC: Amends US$2 Billion Revolving Credit Line
------------------------------------------------------------
Boston Scientific Corporation has amended its US$2 billion
revolving line of credit and US$5 billion term loan agreement,
providing the Company additional financial flexibility as it
implements initiatives designed to increase shareholder value.
"We were pleased to work with our lenders to amend our credit
facility," said Jim Tobin, President and Chief Executive Officer
of Boston Scientific. "These changes provide significant
financial flexibility that will assist us as we execute our plan
to divest non-strategic assets, monetize our investment
portfolio, and reduce expenses and head count, as well as
achieve our broader goal of increasing shareholder value."
Among other items, the amendment extends a step-down in the
maximum permitted leverage ratio (total debt divided by EBITDA
[Earnings Before Interest, Taxes, Depreciation and
Amortization]) as follows:
From: To:
4.5 times to 3.5 times 4.5 times to 4.0 times on
on March 31, 2008 March 31, 2009, and 4.0 times
to 3.5 times on Sept. 30, 2009
The amendment clarifies the definition of EBITDA to exclude up
to US$300 million of any restructuring charges incurred through
June 30, 2009, and up to US$500 million of any litigation
charges -- less any litigation income recorded -- each year
through June 30, 2009. In addition, the amendment changes the
application of any term loan pre-payments from pro-rata across
maturities to the chronological order of maturities.
The amended credit facility and resulting financial flexibility
are part of the Company's previously announced plans to
strengthen operating and financial performance.
In connection with the amended agreement, Boston Scientific
prepaid US$1 billion of its term loan using US$750 million from
cash on hand and US$250 million from a credit facility secured
by U.S. receivables, resulting in a gross debt reduction of
US$750 million. The US$1 billion prepays the April 2008 term
loan obligation of US$650 million and reduces the $650 million
April 2009 obligation by US$350 million. After paying down US$1
billion of its term loan, the company has nearly US$1 billion of
cash on hand and full access to its US$2 billion undrawn
revolving credit facility. Finally, interest rate margins and
fee rates for the amended credit facility remain unchanged.
Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties. The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.
* * *
As reported in the Troubled Company Reporter on Aug. 7, 2007,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Boston Scientific Corp. to 'BB+' from 'BBB-' and
placed the ratings on the company on CreditWatch with negative
implications. S&P has withdrawn the commercial paper rating at
the company's request.
At the same time, Fitch Ratings downgraded the ratings on Boston
Scientific Corp. including the company's 'BBB-' Senior Unsecured
Notes rating which was lowered to 'BB+'. Fitch said the rating
outlook is negative.
EXIDE TECH: Names Edward O'Leary as Chief Operating Officer
-----------------------------------------------------------
Exide Technologies has named Edward (EJ) O'Leary as the
company's Chief Operating Officer. Since June 2005, Mr. O'Leary
has served Exide as President, Transportation - Americas. In
his new role as COO, he will be responsible for the four
operating divisions of the Company: Transportation - Americas,
Transportation - Europe, Industrial Energy - Americas, and
Industrial Energy - Europe. The presidents of these divisions
will report to Mr. O'Leary.
"EJ is a dynamic, results-oriented leader whose capabilities are
evidenced by the performance of the Transportation - Americas
division under his command," said Gordon Ulsh, President and
Chief Executive Officer of Exide Technologies. "I am confident
that he will effectively build upon Exide's existing momentum as
we grow and become profitable."
Mr. O'Leary's career has spanned more than 30 years in the
automotive industry. Prior to joining Exide, he served as
President - The Americas at Oetiker, Inc. His career also
includes senior management positions at iStar Systems, Federal-
Mogul, Cooper Industries, and Tenneco Automotive.
Mr. O'Leary holds a Bachelor's degree in Business Administration
from Slippery Rock University in Pennsylvania. He also
completed the International Advanced Management Program at the
Harvard School of Business.
In a related move, Bruce Cole has been appointed President of
the Transportation - Americas operating division. Bruce Cole
brings a broad range of industry experience to his new role as
President, Transportation - Americas, replacing Mr. O'Leary.
Mr. Cole has served Exide in a variety of capacities, most
recently as Vice President and General Manager of the Exide
Recycling operation. In his new role, Mr. Cole will report to
Mr. O'Leary.
"During his 18-year career at Exide, Bruce has cultivated a
broad range of experience, which has been demonstrated by his
increasing level of responsibilities," said Mr. O'Leary. "His
unique blend of operational and technical experience, coupled
with his management capabilities in the Recycling operation,
make him uniquely prepared to take on this new responsibility.
His experience will bring added insight and innovation to the
foundation already established in the Transportation - Americas
operation."
Since joining Exide in 1989, Mr. Cole also has served the
Company as Vice President, Marketing, Global Industrial Energy
and Vice President, Manufacturing and Engineering in the
Industrial Energy - Americas division. He holds a Bachelor's of
Science degree in Chemical Engineering from Michigan State
University as well as an Executive MBA from the University of
Wisconsin, Milwaukee.
"I am pleased and proud about these appointments," said
Mr. Ulsh. "They illustrate that we are tapping the deep pool of
talent that exists within our organization - proving that
responsibilities and roles can successfully cross division
lines."
About Exide Technologies
Headquartered in Princeton, New Jersey, Exide Technologies
(NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and
distributes lead acid batteries and other related electrical
energy storage products. The company filed for chapter 11
protection on Apr. 14, 2002 (Bankr. Del. Case No. 02-11125).
Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland
& Ellis, represented the Debtors in their successful
restructuring. The Court confirmed Exide's Amended Joint
Chapter 11 Plan on April 20, 2004. The plan took effect on
May 5, 2004. The company has operations in 89 countries,
including, Argentina, Belize, Bolivia, Brazil, Chile, Colombia,
Costa Rica, Ecuador, El Salvador, Guatemala, Panama, Paraguay,
Peru, Uruguay and Venezuela.
* * *
On May 2007, Moody's Investors Service assigned a B1 rating to
Exide Technologies, Inc.'s:
* (LGD2, 15%) to the US$200 million asset based revolving
credit facility;
* (LGD2, 15%) to the US$130 million senior secured term
loan at Exide Technologies, Inc.;
* (LGD2, 15%) to the US$165 million senior secured term
loan at Exide Global Holdings Netherlands CV.
Standard & Poor's Ratings Services, on April 2007, placed its
'CCC' corporate credit rating on Exide Technologies and all
related debt issue ratings on CreditWatch with positive
implications. The CreditWatch listing reflects Exide's
gradually improving financial results, strengthened liquidity,
and prospects for further modest improvements in financial
metrics due in part to a better pricing environment.
===================
C O S T A R I C A
===================
ALCATEL-LUCENT: Inks New Contract with Southern Cross
-----------------------------------------------------
Alcatel-Lucent has further strengthened its cooperation with
Southern Cross by signing a new contract to upgrade the landing
stations of Southern Cross' 28,900 km submarine cable network.
This new award follows the contract signed in 2001 for the first
upgrade of the Southern Cross network that went into service in
November 2000, providing Australasia with a fully protected
direct link to the US mainland.
The network upgrade will provide further route diversity and
capacity in the Australasian region to maximize the benefits of
broadband services to both residential and business users.
Alcatel-Lucent will upgrade the network's ten landing stations,
which are located close to the major international hubs of
Sydney (Australia), Auckland (New Zealand), Los Angeles, San
Francisco, Seattle and Honolulu, (US) for ease of access.
The project will be rolled-out in two phases. The first phase
will consist in upgrading the existing 480 Gbit/s capacity up to
660 Gbit/s by the end of the first quarter 2008 and the second
phase will bring it up to 860 Gbit/s by the end of 2008. The
high scalability offered by Alcatel-Lucent's optical technology
will also facilitate future upgrades up to 2.4 Tbit/s.
"By doubling the existing network capacity, this upgrade project
will help Southern Cross support the increased traffic generated
by the rapid adoption of ADSL2+ services and Ethernet-based
applications with enhanced flexibility and reliability," stated
Ross Pfeffer, Director of Sales and Marketing at Southern Cross.
"Alcatel-Lucent's advanced optical technology will assist us in
taking a new significant step in addressing our end-user needs
and further protect our network to ensure maximum reliability."
"The cooperation between Southern Cross and Alcatel-Lucent has
proven successful in several projects," said Jean Godeluck,
President of Alcatel-Lucent's submarine network activity.
"Through our recognized expertise in managing and deploying
submarine cable networks, coupled with a top quality and service
support, we are well positioned to answer all our customer
needs."
The Alcatel-Lucent solution will be based on both submarine and
terrestrial equipment. For the submarine section, Alcatel-
Lucent will deploy its 1620 Light Manager DWDM submarine line
terminal. The landing stations will also be upgraded with the
Alcatel-Lucent 1675 LambdaUnite Multi-Service Switch (MSS),
offering advanced dynamic networking based on Automatically
Switched Optical Network (ASON)/Generalized Multi-Protocol Label
Switching (GMPLS) intelligent control plane for improvement of
network availability, strengthening of traffic protection and
enabling accelerated optical connection provisioning.
About ASON
An automatically switched optical network (ASON) is a network
based on a technology enabling the automatic delivery of
transport services. In an ASON, each network node should be
equipped with a Control Plane. The Control Plane sets up and
releases connections and may restore a connection
in case of a failure.
About GMPLS
Generalized MPLS (GMPLS) extends MPLS to provide the control
plane (signaling and routing) for devices that switch in
different domains, including wavelength, and fiber. This common
control plane promises to simplify network operation and
management by automating end-to-end provisioning of connections,
managing network resources, and providing the level of QoS that
is expected in new, sophisticated applications.
About Southern Cross
Southern Cross Cable Network --
http://www.southerncrosscables.com-- provides the fastest, most
direct, and most secure international bandwidth from Australia,
New Zealand and Hawaii to the heart of the Internet in the USA.
Commissioned in 2000 and 2001 as two diverse submarine cables to
the US, the Southern Cross Network has been engineered until
2025 to provide for the rapidly expanding capacity needs of
high-speed broadband. In 2001 total installed capacity was 80
Gbps; in Jan. 2003, the total network was expanded to 480 Gbps;
by end-2008 total installed capacity will be 860 Gbps. Southern
Cross can easily expand to 2.4 Tbps of transmission capability
by installing more of the equipment that is being used for its
current capacity upgrade. With new technology continually
improving potential transmission speeds, the ultimate size of
the Southern Cross Cable Network is likely to considerably
exceed 2.4 Tbps. Southern Cross Cable Network is owned by
Telecom NZ (50%), Singtel-Optus (40%) and Verizon Business
(10%). The company has offices in Bermuda, Sydney, Auckland and
Wellington.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users. Alcatel-Lucent maintains operations in 130 countries,
including, Austria, Germany, Hungary, Italy, Netherlands,
Ireland, Canada, United States, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia,
Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent
Technologies Inc. completed their merger transaction, and began
operations as a communication solutions provider under the name
Alcatel-Lucent on Dec. 1, 2006.
* * *
As reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.
As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
=============
E C U A D O R
=============
* ECUADOR: Supreme Court Nulls Pacifictel Damages Order
-------------------------------------------------------
Published reports say that the Ecuadorian Supreme Court has
declared null a Guayaquil arbitration tribunal's order that
state-run fixed line operator Pacifictel pay carrier Nedetel
some US$12 million in damages for early termination of a
contract.
Pacifictel legal representative Hector Vizueta told Business
News Americas that the company requested the ruling be declared
null as the amount of the damages Nedetel demanded was too much.
Pacifictel head Walter Guerra commented to the press, "With this
case we have won almost US$100 million."
Pacifictel's dispute with Nedetel started in April 2004,
BNamericas states.
* * *
As reported in the Troubled Company Reporter on Jan. 25, 2007,
Fitch Ratings downgraded the long-term foreign currency Issuer
Default Rating of Ecuador to 'CCC' from 'B-', indicating that
default is a real possibility in the near term.
In addition, these ratings were downgraded:
-- Uncollateralized foreign currency bonds to
'CCC/RR4' from 'B-/RR4';
-- Collateralized foreign currency Par and Discount
Brady bonds to 'CCC+/RR3' from 'B/RR3'; and
-- Short-term foreign currency IDR to 'C' from 'B'.
Fitch also affirmed the Country ceiling rating at 'B-'.
=============
J A M A I C A
=============
GOODYEAR TIRE: Plans Growth Investments & Debt Repayment
--------------------------------------------------------
The Goodyear Tire & Rubber Company is planning major global
investments to fuel growth and plans to repay additional debt,
both made possible by the recent sale of its Engineered Products
business and the company's successful equity offering.
Goodyear is considering potential new tire factories in Eastern
Europe and Asia in addition to the company's intent to invest in
existing tire factories to increase high-value-added capacity by
40% globally and increase capacity in existing low-cost plants
by 33%. Together, these investments would drive the company
toward its strategy of having 50% of its global capacity in low-
cost countries by 2012.
The investment program includes modernization in North America
to Goodyear's tire plants in Fayetteville, North Carolina, and
Gadsden, Alabama, for increased high-value-added capacity, both
supported with investment incentives by local and state
governments.
"Consistent with what we have been telling investors, the
successful completion of the sale of Engineered Products
combined with our equity offering in May allows us to expand our
future growth investments," Goodyear Chairman and Chief
Executive Officer Robert J. Keegan said. "We will continue to
use a disciplined approach in allocating capital to high-return
investments."
In addition, Mr. Keegan said Goodyear has given notice to its
lenders that it will repay its US$300 million third lien term
loan. The repayment will result in annualized interest expense
savings of approximately US$26 million, of which about US$10
million will be realized in 2007. The secured loan matures in
2011. The company's debt repayment plans also include the early
repayment, in the first quarter of 2008, of US$650 million in
secured notes that are due in 2011.
Mr. Keegan said these early repayments coupled with the
company's US$315 million redemption of senior notes in June will
save Goodyear more than US$125 million in annual interest
expense.
Goodyear confirmed progress against its Four Point Cost Savings
Plan. The company disclosed in April it now targets gross cost
savings of US$1.8 billion to US$2 billion by the end of 2009.
Through June 30, 18 months into the plan, Goodyear indicated it
had achieved nearly US$750 million in cost savings against this
target.
More than US$500 million of these savings are a result of
continuous improvement initiatives. While announced savings
from eliminating high-cost manufacturing total US$135 million,
only US$35 million of this was reflected in results through
June 30. Sourcing raw materials, equipment and products from
Asia and other low-cost countries has resulted in savings of
US$60 million and selling, administrative and general expense
savings-to-date total more than US$150 million.
"We remain on track to achieve our targeted savings," Mr. Keegan
said. "While some of these savings are offset by currently
elevated inflation levels in areas such as energy and some
manufacturing inefficiencies in advance of footprint reductions,
we are confident structural savings will be achieved on a net
basis, particularly in North America."
About Goodyear
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 Tire has marketing operations in almost
every country around the world including Chile, Colombia,
Guatemala, Jamaica and Peru in Latin America. Goodyear employs
more than 80,000 people worldwide.
* * *
As reported in the Troubled Company Reporter on June 4, 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.
===========
M E X I C O
===========
ADVANCED MICRO: Henri Richard to Resign by September 2007
---------------------------------------------------------
Advanced Micro Devices Inc. disclosed Wednesday that Chief Sales
and Marketing Officer Henri Richard is leaving the company in
September 2007. Mr. Richard departs AMD of his own accord and
on completely amicable terms.
"Henri's primary goal at AMD has been to construct a world-class
global sales and marketing organization focused on enduring
relationships with major PC and server OEMs around the world. He
delivered on that goal," said AMD Chairman and CEO Hector Ruiz.
"AMD is fully focused on leveraging the momentum we established
during the last five years to achieve even greater levels of
success ahead."
The AMD global sales and marketing organization will now report
into the office of the CEO.
"After 20 years in the PC industry - and five of the most
professionally rewarding years here at AMD - I have decided to
make a move to a different business segment," Mr. Richard said.
"I am leaving AMD at a time when the company is in position to
break the monopoly that plagues this industry. I am immensely
proud of my contribution to AMD, and in particular, of the
strong team I leave behind."
About AMD
Based in Sunnyvale, California, Advanced Micro Devices Inc.
(NYSE: AMD) -- http://www.amd.com/-- designs and manufactures
microprocessors and other semiconductor products. The company
has a facility in Singapore. It has sales offices in Belgium,
France, Germany, the United Kingdom, Mexico and Brazil.
* * *
As reported in the Troubled Company Reporter on Aug. 14, 2007,
Standard & Poor's Ratings Services affirmed its B/Negative/--
corporate credit rating on Sunnyvale, California-based Advanced
Micro Devices Inc. At the same time, S&P assigned its 'B'
rating to the company's US$1.5 billion 5.75% senior convertible
notes due 2012, and raised the rating on the company's existing
senior unsecured debt to 'B' from 'B-', because the company no
longer has secured debt in its capital structure.
ALERIS INT'L: Holders Tender US$1 Billion of Senior Notes
---------------------------------------------------------
Aleris International Inc. has disclosed the expiration of its
offer to exchange up to US$600 million aggregate principal
amount of its 9%/9-3/4% Senior Notes due 2014 and up to US$400
million aggregate principal amount of its 10% Senior
Subordinated Notes due 2016 for an equal aggregate principal
amount of 9%/9-3/4% Senior Notes due 2014 and 10% Senior
Subordinated Notes due 2016 that have been registered under the
Securities Act of 1933, as amended.
The exchange offer expired at 12:00 a.m., Eastern Time, on
Aug. 23, 2007. As of that time, all US$600 million in aggregate
principal amount of the 9%/9-3/4% Senior Notes due 2014 and
US$400 million in aggregate principal amount of the 10% Senior
Subordinated Notes due 2016 had been tendered in the exchange
offer. The company will issue certificates for the registered
9%/9-3/4% Senior Notes due 2014 and 10% Senior Subordinated
Notes due 2016 as soon as practicable.
Headquartered in Beachwood, Ohio, Aleris International Inc.
(NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled
aluminum products and offers aluminum recycling and the
production of specification alloys. The company also
manufactures value-added zinc products that include zinc oxide,
zinc dust and zinc metal. The company operates 42 production
facilities in the United States, Brazil, Germany, Mexico and
Wales, and employs approximately 4,200 employees.
* * *
Standard & Poor's assigned Aleris International Inc. a B+ senior
secured first-lien term loan rating and gave the company a '2'
recovery rating after the report that the company increased the
term loan by US$125 million. With the add-on, the total amount
of the facility is now US$1.23 billion.
AMERICAN AXLE: Paying US$0.15 Per Share Dividend on Sept. 28
------------------------------------------------------------
American Axle & Manufacturing Holdings Inc. has announced a cash
dividend of US$0.15 per share payable on Sept. 28, 2007 to
stockholders of record on all of the company's issued and
outstanding common stock as of Sept. 7, 2007.
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) -\u2013
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.
CABLEMAS SA: Names Rafael Lira as Chief Financial Officer
---------------------------------------------------------
Cablemas S.A. de C.V. has appointed Rafael Lira as its Chief
Financial Officer.
Carlos Alvarez, Chief Executive Officer of Cablemas, commented,
"We wish to welcome Rafael back to our company. His knowledge
of Cablemas, strong track record and experience in finance will
further strengthen our management team as we continue to
implement our growth strategy. Our goal is to maintain market
leadership and increase profitability while maintaining or
increasing operating margin through tight cost controls."
Prior to rejoining Cablemas, Mr. Lira was Chief Financial
Officer of Salesko, a subsidiary of The Coca Cola Company for
two years. Prior to Salesko, Mr. Lira was Chief Financial
Officer of Cablemas and earlier, served as Chief Financial
Officer of Bardahl de Mexico. Mr. Lira's experience also
includes 13 years with PANAMCO, the largest Coca Cola Bottler in
Latin America, which was acquired by Femsa. At PANAMCO, among
other finance positions he served as CFO of Costa Rica, Treasury
Director and head of M&A for Latin America.
"I am very pleased to return to Cablemas and look forward to
joining the management team to capitalize on the company's
strong market position and attractive growth opportunities,"
said Mr. Lira, Cablemas' Chief Financial Officer.
Cablemas SA de CV -- http://www.cablemas.com-- is the second-
largest cable television operator in Mexico based on the number
of subscribers and homes passed. As of June 30, 2005, the
company's network served over 546,000 cable subscribers and in
excess of 87,000 high-speed Internet subscribers, with more than
1,647,000 homes passed. It is the concessionaire with the
broadest coverage in Mexico, operating in 46 cities throughout
the country's oil, maquiladora and tourist regions.
* * *
On February 2007, Fitch Ratings affirmed these ratings for
Cablemas with a Stable Rating Outlook:
-- Foreign Currency Issuer Default Rating 'BB-';
-- Local Currency Issuer Default Rating 'BB-';
-- US$175 million senior notes due 2015 'BB-'; and
-- National scale 'A(mex)'.
DURA AUTOMOTIVE: Files Reorganization Plan in Delaware
------------------------------------------------------
DURA Automotive Systems Inc. and its debtor-affiliates filed
their Plan of Reorganization and related Disclosure Statement
with the U.S. Bankruptcy Court for the District of Delaware.
The Plan and Disclosure Statement provide details on how DURA
intends to treat more than US$1.3 billion of claims and emerge
from Chapter 11 protection in the fourth quarter of 2007.
"[Tues]day represent[ed] another significant step towards
achieving our goal of quickly emerging from Chapter 11 as a
stronger, more competitive company," said Larry Denton, chairman
and chief executive officer of Dura Automotive Systems. "This
plan lays the foundation for DURA to intensify its Global
Automotive focus and deliver unrivaled value to our customers.
A solid financial structure, attractive to both top industry
talent and capital investments, will bolster our ability to
offer breakthrough innovation and cost-competitive products."
DURA's Plan provides for these creditor recoveries:
-- Cash payment in full of all allowed debtor-in-possession
claims, administrative expenses, priority claims and
second lien secured claims;
-- Conversion of allowed senior notes and allowed general
unsecured claims of more than US$75,000 into between 57.4%
to 60.7% of reorganized DURA's new common stock; and
-- Cash payment in lieu of an equity distribution of all
allowed trade claims and allowed general unsecured claims
of US$75,000 or less.
The Plan further provides that there will be no recoveries for
subordinated notes' and convertible preferred securities'
claims, nor will the Debtors common stock holders receive any
recoveries.
The Plan will be partly funded through exit financing that the
Debtors intends to procure prior to emergence. Additional Plan
funding will come from a fully backstopped new money equity
investment of between US$140 million to US$160 million in
exchange for between 39.3% and 42.6% of Reorganized Dura's
common stock. Senior notes claims holders that are accredited
investors will be eligible to subscribe for their pro rata
shares of the new money investment.
On Aug. 15, 2007, the Bankruptcy Court authorized the Debtors to
enter into an Amended Backstop Agreement with Pacificor LLC to
provide the backstop commitment for the new money equity
investment. Pursuant to its backstop commitment, Pacificor will
purchase any reorganized DURA common stock not subscribed for by
senior notes claims holders.
Additional Information and Next Steps
The Disclosure Statement is intended to provide DURA's creditors
with sufficient information necessary to evaluate and vote on
the Plan. Descriptions of creditor classes, a valuation
analysis of the Debtors, and details on the voting process and
voter eligibility requirements are included in the Disclosure
Statement.
A hearing is scheduled for Sept. 26, 2007, at which time the
Court will evaluate DURA's Disclosure Statement to determine
whether it contains "adequate information" to enable creditors
to vote to accept the Plan. The Court will approve Plan
solicitation procedures and materials that will allow the
Debtors to solicit votes to accept the Plan. The Court will
also set a hearing date for Plan confirmation.
Once the Disclosure Statement and solicitation procedures and
materials have been approved, the Debtors balloting agent will
distribute ballots and accompanying support materials to parties
eligible to vote to accept or reject the Plan.
DURA was advised by AlixPartners, Kirkland & Ellis and Miller
Buckfire in connection with its Chapter 11 reorganization.
No Solicitation
Neither the Disclosure Statement that was filed today nor this
press release are solicitations for votes to accept the Plan.
Parties should refer to the Plan and the Disclosure Statement
for information regarding the Plan, creditor recoveries
contemplated thereby and other related matters.
About DURA Automotive
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.
DURA AUTOMOTIVE: Pacificor Backstop Rights Pact Gets Court Okay
---------------------------------------------------------------
Dura Automotive Systems Inc. obtained the U.S. Bankruptcy Court
for the District of Delaware's approval of its backstop rights
purchase agreement with Pacificor LLC.
Pacificor will underwrite 100% of the backstop commitments in
connection with the sale of approximately 39.4% to 42.6% of the
Reorganized Dura common stock in exchange for a new money
investment of between US$140,000,000 to US$160,000,000.
To address the issues raised by the Official Committee of
Unsecured Creditors and other parties-in-interest, Dura and
Pacificor signed an Amended Backstop Rights Purchase Agreement
dated Aug. 13, 2007.
The Amended Backstop Agreement generally maintains the terms
upon which Dura will pay fees to Pacificor:
* a Backstop Commitment Fee equal 4% of the Rights Offering
Amount, payable upon consummation of the contemplated
Chapter 11 Plan;
* an Alternative Transaction Fee equal to 3% of the Maximum
Rights Offering Amount if the Debtors pursue an
alternative transaction to the Rights Offering or
otherwise fail to fulfill certain conditions; and
* up to US$1,000,000 as reimbursement for reasonable and
documented out-of-pocket costs.
The conditions for payment of the Alternative Transaction Fee
were, however, modified under the Amended Backstop Agreement.
The payment of the Expense Reimbursement is also regardless of
whether any Alternative Transaction Fee is payable.
The Debtors are required to provide the U.S. Trustee a copy of
the expense reimbursement documentation submitted by Pacificor.
The Amended Backstop Agreement also provides for additional
modifications:
(1) Terms of Chapter 11 Plan. Pacificor will have the right
to terminate the Agreement if the Debtors file, or
subseqently modify, a Chapter 11 plan containing terms not
acceptable to it. The terms subject to Pacificor's
acceptance, however, will be limited to these areas:
(a) Exit Facility;
(b) Size and composition of the Board of Directors;
(c) Exercise Price;
(d) New Organizational Documents;
(e) Subscription Agreement and related notices and forms;
(f) Stockholders' Agreement;
(g) Registration Rights Agreement; or
(h) Effective Date.
The Amended Backstop Agreement excludes the Management
Equity Program and Participation in the Rights Equity
Offering among the matters subject to Pacificor's
scrutiny.
(2) Board of Directors. On the Effective Date, there will be
seven directors on the Board of Directors of Reorganized
DASI. The Board of Directors will be staggered into three
classes with terms of three years each, except for the
initial terms which will be for one, two and three year:
(i) Pacificor's Power to Appoint. On the Effective
Date, Pacificor will appoint three directors in its
sole discretion provided, however, if Pacificor
holds between 20 to 30% of the Company's New Common
Stock on the Effective Date, it will have the right
to appoint two directors, and if Pacificor holds
less than 20% of the Company's New Common Stock on
the Effective Date, it will have the right to
appoint one director;
(ii) Creditors Committee's Power to Appoint. On the
Effective Date, the Committee will appoint two
directors, both of whom will be Independent
Directors. The directors appointed by the Committee
on the Effective Date will be reasonably acceptable
to Pacificor, provided, however, that in the event
the number of directors that Pacificor has the right
to appoint is reduced by one or two directors as a
result of its ownership of Common Stock, the
director or directors will be appointed by the
Creditors Committee and no acceptance of Pacificor
will be required for the appointment; and
(iii) Old DASI Board's Power to Appoint. One director
appointed by the Old DASI Board on the Effective
Date will be an Independent Director, subject to
reasonable approval by the Creditors Committee and
the other will be the CEO of Reorganized DASI.
(3) Waiver. In the event of that anyone of the conditions to
the obligations of Pacificor under the Agreement is not or
cannot be satisfied, Pacificor will, within 14 days after
being notified thereof in writing by the Debtors or the
Creditors Committee, elect either to waive the condition
or to terminate the Agreement by providing written notice
of its election to the Creditors Committee and to the
Debtors. In the event that the Pacificor does not so
elect in writing within the 14-day period, it will be
conclusively deemed to have waived the condition.
A full-text copy of the Amended Backstop Agreement is available
for free at http://ResearchArchives.com/t/s?22d8
About DURA Automotive
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 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 Bankruptcy News, Issue No. 26
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or215/945-7000).
DURA AUTO: Summary of Terms of Proposed Stockholders' Agreement
---------------------------------------------------------------
The backstop rights purchase agreement between Dura Automotive
Systems Inc. and Pacificor LLC attached a Stockholders'
Agreement Term Sheet.
TERM DESCRIPTION
---- -----------
Issuer Reorganized Dura Automotive Systems, Inc.
Class and Shares of New Common Stock, $0.01 par value, of
Amount of Reorganized DASI equal to 100% of the total number
Securities of issued and outstanding shares of New Common
to be Stock on the Effective Date. The shares of New
issued Common Stock issued on the Effective Date will be
held and, to the extent permitted, transferred
through the Depository Trust Company.
Initial Initial Stockholders will be (i) Pacificor, LLC,
Stockholders in its capacity as a Senior Noteholder and the
Backstop Party; (ii) Senior Noteholders receiving
New Common Stock pursuant to the Chapter 11 Plan
or the Rights Offering; and (iii) holders of
certain Other General Unsecured Claims receiving
New Common Stock pursuant to the Chapter 11 Plan.
All transferees of the Initial Stockholders will
be subject to, and bound by, the terms of the
Stockholders Agreement.
Holder of All holders of New Common Stock will hold such
Record shares through The Depository Trust Company.
Dilution All shares of New Common Stock issued on the
Effective Date will be subject to dilution by the
Management Equity Program. Any shares of New
Common Stock issued under the Management Equity
Program will be subject to, and bound by, the
terms of the Stockholders Agreement.
Initial Each Share of New Common Stock will have an
initial share value of US$500,000 unless Pacificor
consents to a lower value. If the amount of the
recovery value on account of an Allowed Claim is
less than the Initial Price, or any whole multiple
thereof, and recovery on the Allowed Claim in
satisfaction thereof is in the form of New Common
Stock, then the Allowed Claim holder will receive
the number of whole shares of New Common Stock
determined by dividing the Allowed Claim by the
Initial Share Price plus one fractional share of
New Common Stock for the remaining portion of the
Allowed Claim. No other fractional shares may
exist after the Effective Date.
Fees Pacificor will not receive any premium for selling
or voting (or refraining from voting) its shares
in any transaction, and no management fee,
financial advisory or other consulting fees, non-
compete fee, closing fee or like compensation will
be payable to Pacificor.
A copy of the Stockholder's Agreement Term Sheet is available at
no charge at http://ResearchArchives.com/t/s?22d7
About DURA Automotive
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 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 Bankruptcy News, Issue No. 26
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
GRUPO KUO: S&P's Upgrades Long Term Credit Rating to BB-
--------------------------------------------------------
Standard & Poor's Ratings Services has raised its long-term
corporate credit rating on Grupo KUO S.A.B. de C.V. to 'BB-'
from 'B+'. At the same time, S&P raised the long-term national
scale rating on KUO to 'mxBBB+' from 'mxBBB'. The outlook for
all ratings is stable.
"The upgrade reflects KUO's efforts to improve its operating
performance and strengthen its financial position, which we
expect to be done by year-end 2008. The upgrade also reflects
KUO's successful debt reduction and divestiture program, and our
expectations that the company will be able to refinance most of
its debt and improve its maturity schedule. In addition, the
upgrade considers some relatively small investments that will
not affect the company's financial profile," said S&P's credit
analyst Laura Martinez.
The ratings are limited by the still-low margins, relatively
high leverage, and the difficult raw material pricing
environment, mainly in the chemical business. The ratings are
supported by the company's focus to maintain only profitable and
value-added operations, its diversified portfolio, and the
continued implementation of cost reduction and efficiency
programs.
The stable outlook reflects S&P's expectation that KUO will
continue to implement its cost reduction and efficiency
programs, which would lead to improved operating and financial
performance and incorporates the success of refinancing debt. A
significant and consistent improvement in the company's key
financial ratios, particularly a total debt-to-EBITDA ratio near
2.0 and a stronger business profile, which includes improved
operating margins, could lead to a positive rating action.
However, if the debt is not refinanced during the next 12 months
and/or the company's profitability deteriorates, ratings could
be lowered.
Diversified Mexican manufacturer Grupo KUO (formerly DESC, S.A.
de C.V.) has a hand in wheels, meals, and pork belly deals.
KUO's auto parts division's products include axles, clutches,
stamped parts, pistons, wheels, and transmissions. KUO's Keken
division produces pork. Its consumer division offers food
products including salsas, tomato paste, and tuna, which it
supplies mainly to Mexico and the southwestern US; brands
include Embasa and La Victoria. KUO's chemicals division
produces such products as synthetic rubber, polystyrene, carbon
black, adhesives, sealants, and pigments. KUO spun off its DINE
subsidiary (purchase and development of real estate for
commercial, residential, and tourism) in 2007.
PRIDE INT'L: Buys 9% Remainder of Angolan Joint Venture Stake
-------------------------------------------------------------
Pride International Inc. said Wednesday that it acquired the
remaining 9% interest in its Angolan joint venture company from
a subsidiary of Sonangol, the national oil company of Angola.
The joint venture owns the two deepwater drill ships Pride
Africa and Pride Angola and the 300 ft. independent-leg jackup
rig Pride Cabinda, and holds management agreements for the
deepwater platform rigs Kizomba A and Kizomba B.
The acquisition increases Pride's ownership in the three mobile
offshore drilling units and the two management agreements, along
with related working capital, to 100 percent. Cash
consideration in the transaction of US$45 million was paid with
cash on hand and borrowings under the company's revolving credit
facility.
The transaction brings Pride's total investment in high
specification, deepwater drilling rigs, including commitments to
construct two ultra-deepwater drill ships, to just over US$2
billion since late 2005.
About Pride International
Headquartered in Houston, Texas, Pride International Inc.
(NYSE: PDE) -- http://www.prideinternational.com/-- provides
onshore and offshore contract drilling and related services in
more than 25 countries, operating a diverse fleet of 277 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jackups, 16 tender-assisted, barge and platform rigs,
and 214 land rigs. The company maintains worldwide operations
in France, Mexico, Kazakhstan, India, and Brazil, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 3, 2007, Moody's affirmed Pride International, Inc.'s
credit ratings following the company's announcement of the
acquisition of a newbuild drillship to be delivered in 2010.
The ratings affirmed include the Ba1 corporate family rating,
the Ba2 rating on Pride's US$500 million senior notes due 2014,
the Baa2 rating on its US$500 million senior secured credit
facility and speculative grade liquidity rating of SGL-2. The
outlook was stable.
Pride Ratings Affirmed:
-- Ba1 CFR and Probability of Default Rating;
-- US$500 million Senior Notes due 2014 rated Ba2 (LGD5, 71%);
-- US$500 million Senior Secured Credit Facility rated Baa2
(LGD2, 13%);
-- Speculative Grade Liquidity Rating -- SGL-2;
-- Senior Unsecured Shelf rated (P)Ba2 (LGD5, 71%);
-- Subordinated Shelf rated (P)Ba2 (LGD6, 97%);
-- Preferred Shelf rated Ba2 (LGD6, 97%)
As reported in the Troubled Company Reporter on July 30, 2007,
Moody's affirmed Pride International, Inc.'s credit ratings
following the company's announcement of the acquisition of a
newbuild drillship to be delivered in 2010.
The affirmed ratings include the Ba1 corporate family rating,
the Ba2 rating on Pride's US$500 million senior notes due 2014,
the Baa2 rating on its US$500 million senior secured credit
facility and speculative grade liquidity rating of SGL-2.
Moody's said the outlook is stable.
RYERSON: Prelim Voting Result Shows 11 Board Members Re-Elected
---------------------------------------------------------------
Ryerson Inc. has announced the preliminary voting analysis for
its 2007 Annual Meeting of Stockholders shows that all 11
Ryerson director nominees were re-elected to the Board by
stockholders at the Annual Meeting.
"I would like to thank our stockholders for their continued
support," said Mr. Neil Novich, chief executive officer of
Ryerson. "We now look forward to giving Ryerson's stockholders
the opportunity to vote on the Platinum Equity transaction for
US$34.50 per share at a special meeting that will be scheduled
in the coming months. In the meantime, we will continue to
focus on improving our business and implementing our strategic
plan on behalf of our stockholders."
In addition, Ryerson's stockholders ratified the selection of
Ernst & Young LLP as the company's independent registered public
accounting firm for 2007; approved the Ryerson Annual Incentive
Plan to qualify performance-based compensation as tax deductible
by the company; voted against a stockholder proposal regarding
repeal of provisions of or amendments to the company's By-Laws
(if any) adopted after Jan. 1, 2006, and prior to the 2007
Annual Meeting, and voted against a stockholder proposal to
amend the company's By-Laws to provide that the company's Board
of Directors will consist of not fewer than six nor more than 10
directors.
The final results of the stockholder vote are expected within
two weeks.
Important Information
In connection with its proposed merger with an affiliate of
Platinum Equity, LLC, Ryerson plans to file with the U.S.
Securities and Exchange Commission a preliminary proxy statement
and a definitive proxy statement. The definitive proxy
statement will be mailed to stockholders of Ryerson.
Stockholders of Ryerson are urged to read the proxy statement
relating to the merger and other relevant materials when they
become available because they will contain important information
about the merger and Ryerson. Security holders may obtain a
free copy of the proxy statement and any other relevant
documents that Ryerson files with the SEC at the SEC's web site
at http://www.sec.gov/ The definitive proxy statement and these
other documents may be accessed at http://www.ryerson.comor
obtained free from Ryerson by directing a request to:
Ryerson Inc.
Attn: Investor Relations
2621 West 15th Place
Chicago, IL 60608.
Certain Information Regarding Participants
Ryerson, its directors and executive officers may be deemed to
be participants in the solicitation of the company's security
holders in connection with the proposed merger. Security
holders may obtain information regarding the names, affiliations
and interests of such individuals in the Company's proxy
statement in connection with its 2007 annual meeting of
stockholders, which was filed with the SEC on July 31, 2007. To
the extent holdings of the company's equity securities have
changed since the amounts reflected in such proxy statement,
such changes have been reflected on Statements of Change in
Ownership on Form 4 filed with the SEC.
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 on July 26, 2007,
Moody's Investors Service placed Ryerson Inc.'s B1 corporate
family rating under review for possible downgrade.
SANMINA-SCI CORP: Joseph Licata Jr. Joins Board of Directors
------------------------------------------------------------
Sanmina-SCI Corporation has appointed Joseph G. Licata Jr. to
the company's Board of Directors effective Aug. 20, 2007. Mr.
Licata will also serve as a member of the Compensation
Committee. Mr. Licata meets the independent director
requirements as defined by NASDAQ and Institutional Shareholder
Services.
Mr. Licata is an industry leader with over 25 years of cross-
functional high-end technology experience and currently serves
as President and Chief Executive Officer of SER Solutions, Inc.,
a global leader of call management & speech analytics solutions.
Mr. Licata also served as President of Siemens Enterprise
Networks, LLC and held executive positions at IBM and ROLM
Corporation. He currently sits on the Board of Advisors of
Dave.TV, a broadcast media software company, and is on the
Advisory Board at Georgia Tech University. Mr. Licata earned a
B.S. in Management Information Systems from Florida State
University and resides in Duluth, Georgia.
"We are fortunate to have someone of Joe's caliber join our
board of directors. His unique insight and experience will add
significant value to this organization," stated Jure Sola,
Chairman and Chief Executive Officer of Sanmina-SCI Corp.
Headquartered in San Jose, California, Sanmina-SCI Corporation
(NasdaqGS: SANM) -- http://www.sanmina-sci.com/-- is a
Electronics Manufacturing Services (EMS) provider focused on
delivering complete end-to-end manufacturing solutions to
technology companies around the world. Service offerings
include product design and engineering, test solutions,
manufacturing, logistics and post-manufacturing repair/warranty
services.
The company has locations in Brazil, China, Ireland, Finland,
Malaysia, Mexico and Singapore, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 23, 2007, Moody's Investors Service placed the ratings of
Sanmina-SCI Corporation on review for possible downgrade based
on the company's continued poor operating results, which reflect
weak demand from OEMs and operational inefficiencies in the
components business.
Ratings under review for possible downgrade include:
-- Ba3 Corporate Family Rating;
-- Ba3 rating on US$300 million floating rate notes due 2010;
-- Ba3 rating on US$300 million floating rate notes due 2014;
-- B2 rating on US$400 million senior subordinated notes due
2013;
-- B2 rating on US$600 million senior subordinated notes due
2016;
-- SGL -- 2 Speculative Grade Liquidity Rating.
SMITHFIELD FOODS: Earns US$62 Million in 2007 First Quarter
-----------------------------------------------------------
Smithfield Foods Inc. reported that income from continuing
operations for the first quarter of fiscal 2008 was US$62.0
million, or US$.47 per diluted share, versus income from
continuing operations last year of US$39.9 million, or US$.36
per diluted share. Sales were US$3.4 billion versus US$2.8
billion a year ago. In the first quarter, Smithfield recognized
after-tax write downs of US$6.7 million this year and US$10.4
million last year on the anticipated disposals of the
biomethanol assets of Smithfield Bioenergy, LLC and the
facilities and production assets of Quik-to-Fix Foods, Inc.,
respectively. After-tax losses from discontinued operations
this year of US$0.8 million and last year of US$4.9 million
include Smithfield Bioenergy for both periods and Quik-to-Fix
for the fiscal 2007 period.
In the pork segment, packaged meats volume grew 28 percent,
primarily the result of the contributions of Armour-Eckrich,
acquired in Oct. 2006. Excluding the impact of Armour-Eckrich,
total packaged meats grew by two percent. The volume of pre-
cooked bacon, sausage, and ribs, as well as smoked boneless
hams, increased by more than 10 percent before including Armour-
Eckrich. The company continued its focus on rationalizing lower
margin products in favor of higher margin and more fully
processed products. The result is increased volume in higher
margin categories and reduced volume in lower margin categories.
This strategy produced significantly improved margins in the
pork segment over the same period a year ago.
Margins in fresh pork remained under significant pressure.
Results for the quarter include the pork processing operations
of Premium Standard Farms, acquired in May. Seasonally, fresh
pork margins are weak in the first quarter, as was the case this
year.
Beef processing margins rose, reflecting a more favorable
operating environment, increased volume and higher exports.
Beef processing results more than offset losses in cattle
feeding operations, as beef segment earnings were several times
those of last year.
The international segment recorded strong profitability versus a
slight loss last year. Groupe Smithfield, the combination of
the company's previously-owned Jean Caby operations and the
recently-acquired Sara Lee European meats business, continued
its strong performance. In addition, the company's Polish
operations were solidly profitable, in part, due to an 18%
increase in packaged meats volume.
Hog production operating profits improved in spite of higher
raising costs and the adverse impact of circovirus. Raising
costs in the U.S. averaged US$49 per hundredweight versus US$42
per hundredweight last year. Including the hog production
operations of Premium Standard Farms, the company marketed 27
percent more head domestically versus a year ago. Without the
acquired hog production, Smithfield marketed six percent fewer
head. Circovirus has continued to negatively affect hog
production results. However, the vaccine the company has been
administering for some time is working. Improvements in
livability are occurring and the quarter-to-quarter productivity
should be favorable from this point forward.
Live hog market prices averaged US$53.50 per hundredweight for
the quarter, versus US$51 per hundredweight in the same quarter
last year. The hog production segment benefited from a US$17
million quarter-to-quarter swing in foreign currency translation
gains. In the first quarter of fiscal 2007, the company
recorded a pre-tax impairment charge of US$4.2 million related
to the sale of its share in its Brazilian live hog production
operation.
In the Other segment, Butterball, LLC, the company's joint
venture turkey operation, reported a very solid quarter in spite
of significantly higher raising costs.
The company recently reported outbreaks of classical swine
fever, or CSF, at two of its hog farms in Romania. The company
learned that a CSF outbreak has been confirmed at a third
company-owned farm. Smithfield is working closely with Romanian
authorities to contain the outbreaks and to destroy and dispose
of animals on the three affected farms. The company previously
disclosed that inventory write down and disposal costs
associated with the outbreaks would have a US$4-5 million pre-
tax impact to second quarter results. Given the third reported
outbreak, the write down and disposal costs are expected to
exceed the previously reported level. However, the revised cost
estimate has not yet been determined.
"Given the challenges of higher grain costs and the continued
adverse fresh pork environment, I am generally satisfied with
our performance in the first quarter," said Mr. C. Larry Pope,
president and chief executive officer. "I continue to be pleased
with the progress we are making in Western Europe and in Poland.
This most recent setback in Romania is disappointing and will
certainly impact our results in that country for some time going
forward. However, we remain committed to our Romanian strategy.
In the U.S., packaged meats margins are improving nicely as we
realign our product mix and drive out inefficiencies. Our
strategic focus on converting raw materials to more value- added
convenience products is working," he said.
"Generally, the second and third quarters are the best for the
pork segment as demand generally improves as we enter the Fall
holiday period," Mr. Pope said. "In addition, the live hog
market remains strong and if the futures markets are any
indication, they should remain strong for the next six to twelve
months. These improvements, combined with progress we are
making in our packaged meats and our international operations,
Romania excluded, lead me to be reasonably optimistic about the
remainder of fiscal 2008."
With sales of US$12 billion, Smithfield is the leading processor
and marketer of fresh pork and processed meats in the U.S., as
well as the largest producer of hogs.
Smithfield Foods, Inc., -- http://www.smithfieldfoods.com--
headquartered in Smithfield, Virginia, is the largest vertically
integrated producer and marketer of fresh pork and processed
meat in the US and has operating subsidiaries and joint ventures
in France, Poland, Romania, the UK, Brazil, Mexico, and China.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Standard & Poor's Ratings Services assigned its
'BB' rating to Smithfield Foods Inc.'s shelf drawdown of US$500
million senior unsecured notes due 2017.
WERNER LADDER: Case Conversion Hearing Moved to September 27
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has
adjourned the hearing on the Official Committee of Unsecured
Creditors' request to convert Werner Holding Co. (DE) Inc., aka
Werner Ladder Co. and its debtor-affiliates chapter 11 cases to
chapter 7 liquidation proceedings.
The hearing, previously set for Aug. 23, 2007, will now be held
on Sept. 27, 2007 at 1:30 p.m.
AS reported in the Troubled Company Reporter on July 23, 2007,
the Committee believes that there are insufficient assets in the
Debtors' estate to confirm a Chapter 11 plan within a reasonable
time, in that:
(i) the $750,000 wind-down budget, which New Werner Holding
Co. (DE), LLC, agreed to pay as an assumed liability
under the Asset Purchase Agreement to fund certain
invoiced expenses, is insufficient to pay the wind-down
expenses of the Debtors' estates; and
(ii) there is no funding to pay other administrative expense
and priority claims during plan confirmation.
The Creditors Committee further believes that converting the
Debtors' cases to Chapter 7, rather than dismissing the cases,
is in the best interests of the general unsecured creditors
because a Chapter 7 trustee may promptly begin liquidating the
remaining assets pursuant to the Court-approved stipulation
among the Committee; Levine Leichtman Capital Partners III,
L.P., together with Milk Street Investors LLC; and other major
parties-in-interest.
Under the Stipulation, the Committee agreed to conditionally
withdraw its objection to the Debtors' request to sell
substantially all of their assets in exchange for certain
funding obligations and agreements of the other parties, as well
as New Werner, that would pay the expenses to wind down the
estates and pursue causes of action. The Sale proceeds would be
shared with the general unsecured creditors.
Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc.
aka Werner Ladder Co. -- http://www.wernerladder.com/--
manufactures and distributes ladders, climbing equipment and
ladder accessories. The company and three of its affiliates
filed for chapter 11 protection on June 12, 2006 (Bankr. D. Del.
Case No. 06-10578).
The Debtors are represented by the firm of Willkie Farr &
Gallagher LLP as lead counsel and the firm of Young, Conaway,
Stargatt & Taylor LLP as co-counsel. Rothschild Inc. is the
Debtors' financial advisor. The Official Committee of Unsecured
Creditors is represented by the firm of Winston & Strawn LLP as
lead counsel and the firm of Greenberg Traurig LLP as co-
counsel. Jefferies & Company serves as the Creditor Committee's
financial advisor. At March 31, 2006, the Debtors reported
total assets of US$201,042,000 and total debts of
US$473,447,000. On June 19, 2007, the Creditors Committee
submitted their own chapter 11 plan and disclosure statement
explaining that plan. The hearing to consider the adequacy of
the Creditors' Committee's Disclosure Statement has been
adjourned to Aug. 23, 2007. (Werner Ladder Bankruptcy News,
Issue No. 37; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or (215/945-7000).
WERNER LADDER: Trustee Objects to Panel's Disclosure Statement
--------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
asks the U.S. Bankruptcy Court for the District of Delaware to
deny approval of the Disclosure Statement with respect to the
Plan of Liquidation filed by the Official Committee of Unsecured
Creditors in the Chapter 11 cases of Werner Holding Co. (DE),
Inc., and its affiliates.
Representing the U.S. Trustee, Mark S. Kenney, Esq., asserts
that the Committee's Disclosure Statement describes a Plan that
is "unconfirmable" on its face.
The Disclosure Statement provides that under the terms of the
Plan, some administrative claimholders will not be paid as
required under Section 1129(a)(9) of the Bankruptcy Code, Mr.
Kenney explains.
Mr. Kenney adds that any allowed administrative claims based on
the transaction fees of Jefferies & Company, Inc., or
Rothschild, Inc., will be paid and satisfied solely from the
proceeds of the Liquidation Trust Assets pursuant to a
Liquidation Trust Agreement.
The Disclosure Statement does not indicate that Jefferies and
Rothschild have formally agreed to different treatment of their
administrative claims, contends Mr. Kenney.
Moreover, Mr. Kenney points out, the Committee's request to
convert the Debtors' Chapter 11 cases to a Chapter 7 proceeding
suggests that there may be additional administrative claimants
whose claims cannot be paid on the effective date of a plan of
reorganization.
The Committee's Conversion Motion also indicates that the
Debtors' estates may not have sufficient assets to fully pay
priority claimants, hence, contradicting a provision in the
Disclosure Statement regarding payment of priority claims, in
full, on the Effective Date, Mr. Kenney notes.
Therefore, absent any provision for full payment of all
administrative and priority claims, the Plan is infeasible and
unconfirmable, Mr. Kenney maintains.
Mr. Kenney further notes that adequate information regarding the
Plan requires specific disclosure of whether Jefferies,
Rothschild and other administrative claimants have agreed to the
deferred and possibly contingent payment of their administrative
claims.
If all affected administrative claimants have not agreed,
adequate information would also require specific disclosure that
the Plan cannot be confirmed unless Jefferies, Rothschild and
other possible administrative claimants have each agreed to the
Plan's proposed treatment of their administrative claims, Mr.
Kenney avers. If the administrative claimants have not agreed
to the treatment of their claims, those claimants have effective
veto power over the Plan, he says.
Similar disclosure must also be made regarding any delay in
payment or uncertainty of payment of priority claims, and
whether priority claimants have agreed to deferred and possibly
contingent payment of their claims, asserts Mr. Kenney.
Alternatively, the U.S. Trustee consents to the approval of the
Disclosure Statement, to the extent that it provides specified
modifications that take into account her objections.
The Court will convene a hearing on August 23 to consider
approval of the Disclosure Statement.
Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc.
aka Werner Ladder Co. -- http://www.wernerladder.com/--
manufactures and distributes ladders, climbing equipment and
ladder accessories. The company and three of its affiliates
filed for chapter 11 protection on June 12, 2006 (Bankr. D. Del.
Case No. 06-10578).
The Debtors are represented by the firm of Willkie Farr &
Gallagher LLP as lead counsel and the firm of Young, Conaway,
Stargatt & Taylor LLP as co-counsel. Rothschild Inc. is the
Debtors' financial advisor. The Official Committee of Unsecured
Creditors is represented by the firm of Winston & Strawn LLP as
lead counsel and the firm of Greenberg Traurig LLP as co-
counsel. Jefferies & Company serves as the Creditor Committee's
financial advisor. At March 31, 2006, the Debtors reported
total assets of US$201,042,000 and total debts of
US$473,447,000. On June 19, 2007, the Creditors Committee
submitted their own chapter 11 plan and disclosure statement
explaining that plan. The hearing to consider the adequacy of
the Creditors' Committee's Disclosure Statement has been
adjourned to Aug. 23, 2007. (Werner Ladder Bankruptcy News,
Issue No. 37; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or (215/945-7000).
X-RITE INC: Inks US$180-Million Acquisition Deal with Pantone
-------------------------------------------------------------
X-Rite Incorporated has entered into a definitive agreement to
purchase Pantone, Inc. for US$180 million. The deal is expected
to close in the fall of 2007.
Anticipated strategic, operational and financial benefits of the
acquisition include:
-- Deepening X-Rite's range of offerings by adding Pantone's
color standards to its leadership position in hardware,
software and services solutions
-- Leveraging X-Rite's global presence and distribution
capabilities to expand the reach of Pantone's color
solutions
-- Enhancing X-Rite's revenue-generating opportunities and
further diversifying its revenue base
-- Accelerating technology and business model innovation
-- Achieving significant synergies in marketing, operations
and administration
The transaction is expected to be accretive to X-Rite's cash
earnings per share during year two of the combined operations.
X-Rite expects to achieve approximately US$6.5 million of annual
operating expense cost savings associated with the transaction
in year two. During the first year, the company expects to
incur cash restructuring costs of approximately US$5.5 million.
"Larry Herbert and his team have built Pantone into a very
successful business and we are delighted that it will now be
part of the X-Rite family," said Tom Vacchiano, chief executive
officer of X-Rite. "This iconic brand is the perfect complement
to X-Rite's business bringing Pantone's expertise and market
position in color communication and standards to our color
solutions product offerings. We believe that this strategic
acquisition will provide value for our shareholders, customers,
employees and partners."
"We have proven expertise in integrating sizable, strategic
acquisitions into our business," Mr. Vacchiano continued. "We
are confident that we can successfully blend the Pantone
integration with our existing responsibilities as we evolve into
a faster growing, more diverse business."
"Pantone and X-Rite have enjoyed a strategic partnership in
providing color management solutions for the digital imaging
market for the last two years," stated Larry Herbert, chief
executive officer of Pantone. "Our company is wholly committed
to color communication and inspiration and we are enthusiastic
about combining our growing business with X-Rite to apply even
greater resources to this work."
Combined Entity
Pantone will become a new business unit within X-Rite. Current
Pantone leaders will continue to play key roles in the
organization.
Financing
This transaction will be funded exclusively with cash, which
will be financed through new borrowings. Merrill Lynch, Fifth
Third Bank, National City Bank, LaSalle Bank and GoldenTree
Asset Management, LP have committed to a total debt package of
up to US$415 million to fund the transaction and refinance X-
Rite's existing debt.
Closing
The transaction is expected to close in the fall of 2007,
subject to customary regulatory approvals.
Advisors
X-Rite was advised exclusively by Headwaters MB for investment
banking and financial advisory services, including securing debt
financing. McDermott, Will & Emery provided legal advice.
Goldman, Sachs & Co. served as financial advisor to Pantone and
Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel
to Pantone.
About Pantone
Headquartered in Carlstadt, New Jersey, Pantone, Inc., --
http://www.pantone.com/-- is an authority on color inspiration
for the design world with the PANTONE MATCHING SYSTEM, an
innovative system for identifying, matching and communicating
colors to solve color reproduction problems in the graphic arts
market. Pantone has expanded its color matching system to other
industries where accurate color reproductions are critical,
including digital technology, fashion, home, plastics,
architecture and contract interiors, and paint.
Pantone generated revenue of approximately US$42 million in 2006
with adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization) of approximately 27 percent of
revenue. Pantone sells its products, services and technology
directly, and through hundreds of licensees in over 100
countries in the graphic arts, fashion, home, interior,
plastics, architectural, paint, industrial design and consumer
markets.
About X-Rite
Headquartered in Grandville, Michigan, X-Rite Incorporated
(Nasdaq: XRIT) -- http://www.xrite.com/-- offers color
measurement technology solutions comprised of hardware, software
and services for the verification and communication of color
data. The company serves a broad range of industries, including
graphic arts, digital imaging, industrial and retail color
matching, and medical, among other industries. X-Rite is
global, with 21 offices throughout Europe, Asia, and the
Americas, serving customers in 100 countries.
The X-Rite Latin America sales team provides assistance to
customers in Mexico, Central and South America, and the
Caribbean. X-Rite's sales team works together with highly
qualified local vendors and distributors to ensure the best
possible personalized customer assistance, offering a wide and
unparalleled array of products, support and repair services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 1, 2006, Moody's Investors Service, In connection with its
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. technology semiconductor
and distributor sector, affirmed its B1 corporate family rating
on X-Rite, Inc.
===========
P A N A M A
===========
AES CORP: Environmentalists Want Firm To Abandon Panama Projects
----------------------------------------------------------------
Mongabay.com reports that over 50 environmental groups have
demanded the AES Corporation's withdrawal from three
hydroelectric projects in Panama.
The report says that AES has been funding three proposed dam
projects on the Changuinola River, which is on the border of the
park. Its Panamanian unit AES Changuinola, S.A., would operate
the three dams.
The Center for Biological Diversity group sent a letter to AES,
requesting the firm to abandon the projects, Mongabay.com notes.
According to Mongabay.com, the projects are putting the La
Amistad International Park at risk. The park is home to over
215 species of mammals, 600 species of birds, 115 species of
fish, and 250 species of reptiles and amphibians, including
several hundred plant species and 40 bird species only found in
the area. It supports several indigenous tribal communities
living along its border. Studies indicate that the proposed
dams would have a significant effect on aquatic biodiversity in
the area.
The dams threaten to affect wildlife and local communities,
particularly the Naso and Ngobe people, in the park,
Mongabay.com says, citing the environmentalists.
Peter Galvin, the conservation director with the Center for
Biological Diversity, told Mongabay.com, "The dams, roads,
bridges and power lines slated for construction would devastate
unique native species, destroy a dynamic, free-flowing river,
and open this remote jungle for development."
The Center for Biological Diversity said in a statement, "Many
of the fish and all shrimp species living in these rivers must
migrate between the ocean and freshwater to complete their life
cycles; the dams would block their migration and effectively
extirpate up to 11 aquatic species from the Biosphere Reserve.
Such a loss would likely have devastating and cascading
consequences for indigenous culture and livelihoods and for
biodiversity throughout the area."
The Center for Biological Diversity told Mongabay.com that it
has been collaborating with other environmental groups and
indigenous leaders from the Naso and Ngobe communities to "send
a strong message to AES Corporation, its partners, shareholders,
and the Panamanian National Environmental Authority." The group
persuaded other financiers to withdraw from the projects. The
Inter-American Development Bank pulled its financing of the
Bonyic Hydroelectric project in 2005.
Mr. Galvin commented to Mongabay.com, "We are hoping to
demonstrate to AES and its partners that the international
community supports local efforts to preserve indigenous
livelihoods and the extraordinary biodiversity of the La Amistad
Biosphere Reserve. We urge AES to follow the Inter-American
Development Bank's example and pull out."
"The dams will help fight global warming by offsetting
greenhouse gas emissions, growing evidence shows that tropical
dams and their associated reservoirs actually increase methane
emissions, a potent heat-trapping gas," the AES explained to
Mongabay.com.
AES promised in press reports that it would be "environmentally
responsible."
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.
* * *
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.
* * *
As reported in the Troubled Company Reporter-Europe on
Aug. 23, 2007, Fitch Ratings affirmed AES Corporation's Issuer
Default Rating at 'B+', and assigned a short-term IDR of 'B'.
Fitch also took these rating actions:
* AES
-- Senior unsecured to 'BB/RR1' from 'BB/RR2'
* AES Trust III
-- Trust preferred securities to 'B+/RR4' from 'B/RR5'.
* AES Trust VII
-- Trust preferred securities to 'B+/RR4' from 'B/RR5'.
In addition, Fitch affirmed these ratings:
* AES
-- Senior secured credit facility at 'BB+/RR1';
-- Junior secured notes at 'BB+/RR1'.
NCO GROUP: Closes Exchange Offer on Outstanding Notes
-----------------------------------------------------
NCO Group Inc. has completed its offer to the holders of its
Floating Rate Senior Notes due 2013 (CUSIP No. 144A: 628858
AE 2, ISIN No. 144A: US628858AE21; CUSIP No. REG S: U6376M AB 7,
ISIN No. REG S: USU6376MAB73) and its 11.875% Senior
Subordinated Notes due 2014 (CUSIP No. 144A: 628858 AF 9, ISIN
No. 144A: US628858AF95; CUSIP No. Reg. S: U6376M AC 5, ISIN No.
Reg. S: USU6376MAC56) to exchange the Outstanding Notes for like
principal amount of its US$165.0 million principal amount
Floating Rate Senior Notes due 2013 and its US$200.0 million
principal amount 11.875% Senior Subordinated Notes due 2014,
which have been registered under the Securities Act of 1933, as
amended. The Outstanding Notes were sold in a private placement
by the company, which was completed in Nov. 2006. NCO was
required to carry out the Exchange Offer under the terms of
agreements entered into in the private placement.
The Exchange Offer expired at 5:00 p.m. (Eastern Daylight Time)
on Aug. 15, 2007. Based on information provided by the exchange
agent, The Bank of New York, US$163,805,000 in aggregate
principal amount of the Floating Rate Senior Notes due 2013 and
US$200,000,000 in aggregate principal amount of the 11.875%
Senior Subordinated Notes due 2014 were validly tendered and not
withdrawn pursuant to the Exchange Offer. NCO has accepted for
exchange all of the validly tendered and not withdrawn
Outstanding Notes. NCO intends to issue the Exchange Notes for
all such exchanged Outstanding Notes as soon as practicable.
The Exchange Offer was made, and the Exchange Notes have been
offered, solely pursuant to the Prospectus dated July 17, 2007,
including Supplement No. 1 to the Prospectus dated
Aug. 15, 2007, and the related Letter of Transmittal which more
fully set forth the terms of the Exchange Offer. You should
rely only on the information contained in the Prospectus. The
company has not authorized any person to provide information
other than as set forth in the Prospectus. Holders of the
Outstanding Notes may obtain further information by calling The
Bank of New York at 212-815-5098, or by facsimile at
212-298-1915.
About NCO Group
Headquartered in Horsham, Pennsylvania, NCO Group Inc. --
http://www.ncogroup.com/-- provides business process
outsourcing services including accounts receivable management,
customer relationship management and other services. NCO
provides services through over 100 offices in the United States,
Canada, the United Kingdom, Australia, India, the Philippines,
the Caribbean and Panama.
* * *
NCO Group carries Moody's Investor Service's B2 long-term
corporate family rating and probability of default rating. The
outlook was stable.
The company also carries Standard & Poor's B+ long-term foreign
and local issuer credit rating.
SOLO CUP: Brings In Ronald Wesel as Marketing Vice President
------------------------------------------------------------
Solo Cup Company has appointed Ronald E. Wesel as vice president
of foodservice marketing.
Mr. Wesel served as vice president of marketing and sales
development in Pregis Corporation, a global packaging company
specializing in protective, flexible and foodservice products.
"Ron comes to Solo with extensive background in the packaging
industry and a breadth of both sales and marketing experience.
His leadership will help drive the product innovation, customer
focus and category management that is so critically important to
our foodservice customers," stated Malcolm Simmonds, senior vice
president of foodservice sales and marketing, Solo Cup Company.
Prior to his tenure at Pregis Corporation, Mr. Wesel spent seven
years with Pactiv Corporation where he held both consumer and
business-to-business marketing roles. Mr. Wesel previously held
sales and account management positions with Procter & Gamble,
Mobil Oil Corporation and Tenneco Packaging from 1986 to 1999.
He earned a bachelor's degree from Eastern Illinois University
and an M.B.A. from Northwestern University's Kellogg School of
Management.
Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable
foodservice products for the consumer and retail, foodservice,
packaging, and international markets. Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names. The company was established in 1936 and has a
global presence with facilities in Asia, Canada, Europe, Mexico,
Panama and the United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 12, 2007, Moody's Investors Service confirmed the B3
Corporate Family Rating of Solo Cup Co. and revised the rating
outlook to negative. Moody's assigned a B1 rating to both the
USUS$638 million senior secured term loan B and USUS$150 million
revolver and confirmed all other instrument ratings. This
confirmation of the ratings concludes a rating review for
possible downgrade that was initiated on Sept. 15, 2006.
===============
P A R A G U A Y
===============
AGILENT TECH: Ingen to Step Down as Bio-Analytical Unit's Pres.
---------------------------------------------------------------
Agilent Technologies Inc. disclosed that Chris van Ingen,
president of the company's Bio-Analytical Measurement business,
will retire on Oct. 31, 2007, the last day of Agilent's fiscal
year.
Van Ingen is a 30-year veteran of Agilent and Hewlett-Packard
Company, joining HP in 1977 as a sales engineer in the
Netherlands and rising through the ranks until he was appointed
to his current position in May 2001.
Bill Sullivan, Agilent president and chief executive officer
said, "Chris has done a remarkable job of managing Bio-
Analytical Measurement and growing the business. Under his
leadership, this segment has doubled in size during the last
five years to become a US$2 billion business with an excellent
Return on Invested Capital. While Chris' presence will be
greatly missed, he has built an excellent leadership team and
laid a solid foundation for future profitable growth in both our
current as well as emerging markets. His legacy will be felt
here for many years to come."
"I leave Agilent with a great sense of accomplishment," said van
Ingen. "The past few years have been very exciting ones for us,
with ongoing success in our current markets as well as the
pursuit of opportunities in new areas. I look forward to
watching as the next chapter in this segment unfolds."
Agilent's Bio-Analytical Measurement business is a leading
provider of measurement solutions to research, testing and
quality-control laboratories in the Chemical Analysis and Life
Sciences markets. Already a market leader in the area of
chemical analysis, recent expansion on the life sciences side
includes the acquisition of Stratagene, with its strength in
bio-reagents, and developments in microarrays, diagnostics and
laboratory informatics.
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/
-- is the world's premier measurement company and a technology
leader in communications, electronics, life sciences and
chemical analysis. The company's 19,000 employees serve
customers in more than 110 countries.
The company has operations in India, Argentina, Puerto Rico,
Bolivia, Paraguay, Venezuela, and Luxembourg, among others.
* * *
Agilent Technologies Inc. carries Moody's Investors Service
'Ba1' corporate family rating.
=======
P E R U
=======
LEVI STRAUSS: Fitch Lifts Rating on US$550-Mil. Loan to BB+
-----------------------------------------------------------
Fitch has upgraded these ratings on Levi Strauss & Co. (LS&CO):
-- Issuer Default Rating (IDR) to 'BB-' from 'B';
-- US$550 million asset-based loan (ABL) to 'BB+' from
'BB/RR1'.
The company's senior unsecured notes and senior unsecured term
loan have been affirmed at 'BB-'. Approximately US$2.1 billion
of outstanding debt as well as the ABL are affected by these
actions. The rating outlook was stable.
The upgrade of the IDR reflects the improvements LS&CO has made
to streamline and stabilize its operations as well as sustain
solid operating margin improvements. The ratings also consider
LS&CO's well known brand names, geographic diversity and good
liquidity position, offset by high debt balances and the
competitive operating environment of the denim and casual
bottoms market.
Management's focus on growing its core product lines through
more premium positioning has enabled it to stabilize its
revenues over the past few years with average net sales of
US$4.1 billion. In addition, LS&CO's restructuring activities,
including changing sourcing arrangements, realigning business
units, and closing unproductive facilities, have led to reduced
costs across its business. Profitability as measured by
operating EBITDA margins has continued to improve, rising to
17.0% for the latest twelve months ended May 27, 2007. Fitch
expects LS&CO to continue to benefit from its lower cost
structure while continuing to invest in its brands despite
challenges in the U.S. Levi Strauss Signature brand, which
represented less than 8% of fiscal 2006 revenues and under 4% of
operating income before corporate expenses.
Strong operating profits along with a slight decrease in debt
balances to US$2.2 billion have resulted in strengthened credit
metrics with leverage (measured by total debt to EBITDA)
declining to 3.0 times for the last twelve months ended
May 27, 2007, and EBITDA interest coverage of 3.0x over the
comparable period. In addition, the company has good liquidity
with US$307.2 million in cash and cash equivalents and US$245.2
million in net available borrowing capacity under its revolving
credit facility. Fitch expects that management will remain
committed to its plan to reduce debt and leverage over time.
This commitment is a key underpinning to the 'BB-' IDR and
Stable Outlook.
Fitch's Recovery Ratings (RR) are a relative indicator of
creditor recovery prospects on a given obligation within an
issuers' capital structure in the event of a default.
Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss
& Co. -- http://www.levistrauss.com/-- is one of the world's
largest brand-name apparel marketers with sales in more than 110
countries. The company market-leading apparel products are sold
under the Levi's(R), Dockers(R) and Levi Strauss Signature(R)
brands.
Levi Strauss & Co. is privately held by descendants of the
family of Levi Strauss. Shares of company stock are not
publicly traded. Shares of Levi Strauss Japan K.K., the
company's Japanese affiliate, are publicly traded in Japan.
The company employs a staff of approximately 10,000 worldwide,
including approximately 1,010 at the company's San Francisco,
California headquarters. Levi Strauss Europe is headquartered
in Brussels, Belgium, while Levi's Asia Pacific division is
based in Singapore. Levi's has operations in Brazil, Mexico,
Chile and Peru.
=====================
P U E R T O R I C O
=====================
GLOBAL HOME: Committee Taps Capital Solutions as Fin'l Advisor
--------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in
Global Home Products LLC and its debtor-affiliates' Chapter 11
cases, seeks permission from the U.S. Bankruptcy Court for the
District of Delaware to retain Capital Solutions Group Ltd. as
its financial advisor.
Capital Solutions will:
a) review and analyze the financial information of the
Debtors;
b) monitor and analyze the Debtors operations, cash
expenditures, court filing, proposed employee bonus
programs, business plans and projected cash requirements;
c) attend Committee meetings, Bankruptcy Court hearings and
participate in matters the committee may request;
d) review and analyze proposed transactions for which the
Debtors seek Court approval;
e) assist in the valuation and corporate finance with respect
to the asset sale and portfolio valuation matters as
required;
f) prepare the going concern sale and liquidation value
analysis of the estates assets;
g) review reports of the Debtors' business and its
operations;
h) analyze prepetition property, liabilities and financial
condition of the Debtors, and the transfers to and
accounts with and among Debtors' affiliates;
i) review and analyze plan of reorganization proposed by the
Debtors or any party and assist in the negotiations of the
plan in behalf of the committee;
j) support for any out proceeding necessary or appropriate to
maximize the recovery by the Committee's constituents; and
k) provide services the Committee may require in relation to
the case proceedings.
Susan L. Storey, managing director of Capital Solutions tells
the Court of the firm's hourly compensation:
Title Hourly Rates
----- ------------
Managing Director US$450
Associates US$150 - US$250
Ms. Storey assures the Court that the firm is "disinterested" as
that term is defined in Section 101(14) of the Bankruptcy Code.
Headquartered in Westerville, Ohio, Global Home Products LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
April 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub LLP, represent the Debtors. Bruce Buechler,
Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq.,
at Pepper Hamilton LLP represent the Official Committee of
Unsecured Creditors. When the company filed for protection from
their creditors, they estimated assets between US$50 million and
US$100 million and estimated debts of more than US$100 million.
PULTE HOMES: Credit Woes Prompt Moody's Ratings Review
------------------------------------------------------
Moody's Investors Service placed all of the ratings of Centex
Corporation, Lennar Corporation, and Pulte Homes Inc. under
review for downgrade. The review was prompted by the
materially weaker operating environment facing homebuilders, the
dramatic change in the credit environment surrounding the
industry versus only a few weeks ago, and the possibility of a
substantive spill over effect on the industry if the
blowback from the structured products markets continues
unabated.
The review will focus on these issues:
(i) The ability of the three companies to reduce physical
inventories going forward. To date, the bulk of their inventory
reduction has been reflected in their financial statements
through accounting charges, such as impairments, option
abandonments, and other write-downs. As industry cancellation
rates seem now to be spiking up for the second time, these
physical inventory reductions will be harder to achieve.
(ii) The companies' ability to continue generating positive cash
flow, in part because of their limited success to date in
reducing physical inventory and in part from the recent
resurgence of cancellation rates. Other factors necessitating
the examination include Centex and Pulte's lag in generating
positive cash flow compared to prior expectations and the impact
of a significant level of off-balance sheet activity on Lennar's
cash flow.
(iii) Whether the companies will be able to reduce costs
sufficiently to once again sustain profitable operations,
excluding the impact of impairments, option abandonments, and
other charge-offs. In recent quarters, the three companies have
generated modest quarterly losses, even after excluding the
aforementioned charges. Moody's generally does not expect
investment grade companies to generate even modest quarterly
losses for a lengthy period.
(iv) Whether the companies will take the necessary steps to
conform their debt structures to the currently frail business
environment.
(v) Whether the companies will be able to substantially reverse
their current underperformance on key credit metrics before
2009.
Moody's anticipates that the review will be conducted on an
expedited basis. If the determination from the review is that
ratings should be changed, it is likely that Pulte's ratings
will be lowered by only one notch, with the company's ratings
then taken off review. The ratings of Lennar and Centex,
however, could either be lowered by one notch and kept on review
for further downgrade, or they could be lowered by two notches
and then taken off review.
These ratings were placed under review for downgrade:
Centex Corporation
* Baa2 rating on approximately US$3.7 billion of senior
unsecured notes
* P-2 rating on US$1.25 billion commercial paper program
Lennar Corporation
* Baa2 rating on approximately US$2.2 billion of senior
unsecured notes
* P-2 rating on US$2 billion commercial paper program
Pulte Homes, Inc.
* Baa3 rating on approximately $3.48 billion of senior
unsecured notes
Founded in 1950 and headquartered in Dallas, Texas, Centex
Corporation is one of the nation's leading home building
companies, operating in major U.S. markets in 25 states.
Revenues and net income for the trailing twelve month period
ended June 30, 2007, were approximately US$11.2 billion and
US$(20) million, respectively.
Founded in 1954 and headquartered in Miami, Florida, Lennar
Corporation is one of the largest homebuilders in the United
States, with revenues and net income for the trailing twelve
month period ended May 31, 2007, of US$14.1 billion and
US$165 million, respectively.
Headquartered in Bloomfield Hills, Michigan, Pulte Homes,
Inc. is one of the country's largest homebuilders, with
domestic operations in 27 states and 52 markets, as well
as in Puerto Rico. Revenues and net income for the trailing
twelve month period ended June 30, 2007, were approximately
US$11.8 billion and US$411 million, respectively.
=============
U R U G U A Y
=============
WORLDSPAN LP: Debt Refinancing Cues S&P to Withdraw Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services withdrew all ratings on
Worldspan L.P., including the 'B' corporate credit rating. The
rating action follows the company's acquisition by Travelport
LLC (B/Stable/--) on Aug. 21, 2007. Worldspan is the leading
processor of GDS transactions for on-line travel agencies.
"Ratings were withdrawn due to refinancing of Worldspan's
outstanding rated debt through a $1 billion addition to
Travelport's credit facilities in May 2007," said Standard &
Poor's credit analyst Betsy Snyder.
Headquartered in Atlanta, Georgia, Worldspan, L.P. --
http://www.worldspan.com/-- is a leader in travel technology
services for travel suppliers, travel agencies, e-commerce sites
and corporations worldwide. Utilizing some of the fastest, most
flexible and efficient networks and computing technologies,
Worldspan provides comprehensive electronic data services
linking approximately 800 travel suppliers around the world to a
global customer base. Worldspan offers industry-leading Fares
and Pricing technology such as Worldspan e-Pricing(R), hosting
solutions, and customized travel products. Worldspan enables
travel suppliers, distributors and corporations to reduce costs
and increase productivity with technology like Worldspan
Go!(R) and Worldspan Trip Manager(R) XE. The company's Latin
American operations are in Argentina, The Bahamas, Brazil,
Jamaica, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.
=================
V E N E Z U E L A
=================
CITGO PETROLEUM: Admits Delays in Crude Oil Supply from Mexico
--------------------------------------------------------------
Citgo Petroleum Corp. told Reuters that Hurricane Dean has
caused some delays in crude oil supply from Mexico.
Citgo Petroleum spokesperson Fernando Garay commented to
Reuters, "But, so far, it has been nothing we can't live with."
Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.
Petroleos de Venezuela is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical, and
coal industry, as well as planning, coordinating, supervising,
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
Standard and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp. in Feb. 14, 2006.
Citgo Petroleum carries Fitch's BB- Issuer Default Rating.
Fitch also rates the company's US$1.15 billion senior secured
revolving credit facility maturing in 2010 at 'BB+', its US$700
million secured term-loan B maturing in 2012 at 'BB+', and its
senior secured notes at 'BB+'.
HARVEST NATURAL: Will Increase Production in Venezuela
------------------------------------------------------
Harvest Natural Resources Chief Financial Officer Steven Tholen
said during the Enercom oil and gas conference in Denver that it
will boost output in Venezuela, Business News Americas reports.
BNamericas relates that the conversion of Harvest Natural's
service operating accord into a joint venture controlled by
Venezuela's state-owned oil firm Petroleos de Venezuela is
almost complete.
Mr. Tholen commented to BNamericas, "We've been going through
this conversion process since January 2005, so it's been a long
time. Once the process is complete, we will be able to continue
producing oil. We haven't drilled any wells since 2005 so
production has fallen from 32,000 barrels of oil equivalent per
day to 14,000 barrels of oil equivalent per day, but we will
have drilling rigs back in the fields in the fourth quarter this
year."
Harvest Natural contracted two work-over rigs and three drilling
rigs, BNamericas notes, citing Mr. Tholen.
The report says that the first work-over rig will begin
operating in the fourth quarter 2007, while the second rig will
launch operations in the first quarter 2008.
Mr. Tholen told BNamericas that two drilling rigs will start
operations in the fourth quarter 2007. A third drilling rig
will be added in the first quarter of next year.
Harvest Natural Resources, Inc. -- http://www.harvestnr.com/--
is an international oil and gas company that seeks and develops
large resources in countries that others may perceive to be
challenging. Its producing operations are conducted principally
through the company's 80% owned Venezuelan subsidiary, Harvest
Vinccler, Calif., which operates the South Monagas Unit in
Venezuela.
* * *
Harvest Natural Resources carries these ratings from Moody's
Investor Service since Sept. 17, 2004:
-- Issuer Rating, Caa1
-- Long-Term Corp. Family Rating, B3
-- Senior Unsecured Debt, B3
PETROLEOS DE VENEZUELA: Supplying Cheap Fuel to London
------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA will be
supplying cheap fuel to London, under a deal signed by
Venezuela's President Hugo Chavez and London's mayor Ken
Livingstone, ABC News reports.
Mr. Livingstone told ABC News that up to a million Londoners
will benefit from reduced-price transport on buses.
ABC News says that London's bus fuel costs would drop almost 20%
under the deal. London will save GBP16 million on its GBP100-
million yearly fuel payment for the operation of its 8,000
buses.
Mr. Livingstone told ABC News that he will use the savings to
reduce the price of a bus ticket for low-income Londoners by
50%.
Venezuela will get expert advice on public transport, urban
development, tourism and environmental protection for free, ABC
News 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.
* BOND PRICING: For the Week Aug. 20 to Aug. 24, 2007
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Argnt-Bocon PR11 2.000 12/3/10 ARS 65.54
Argnt-Bocon PR13 2.000 3/15/24 ARS 66.58
Arg Boden 2.000 9/30/08 ARS 41.67
Argent-Par 0.630 12/31/38 ARS 41.29
BRAZIL
------
CESP 9.750 1/15/15 BRL 52.04
CAYMAN ISLANDS
--------------
Vontobel Cayman 10.700 12/28/07 CFH 56.00
Vontobel Cayman 11.400 12/28/07 CFH 74.10
Vontobel Cayman 11.400 12/28/07 CFH 62.35
Vontobel Cayman 11.850 12/28/07 CHF 74.90
Vontobel Cayman 13.150 10/25/07 EUR 71.50
Vontobel Cayman 13.500 02/22/08 EUR 48.50
Vontobel Cayman 14.900 12/28/07 CHF 55.00
Vontobel Cayman 16.000 12/28/07 EUR 72.00
Vontobel Cayman 16.800 12/28/07 CHF 32.45
Vontobel Cayman 22.850 12/28/07 CHF 47.80
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 US 69.42
Petroleos de Ven 5.375 4/12/27 US 59.92
Petroleos de Ven 5.500 4/12/37 US 58.12
***********
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, Christian Toledo, and Pamella Ritah Jala,
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
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* * * End of Transmission * * *