/raid1/www/Hosts/bankrupt/TCRLA_Public/070926.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
Wednesday, September 26, 2007, Vol. 8, Issue 191
Headlines
A R G E N T I N A
AMC TELEVISION: Proofs of Claim Verification Ends Today
ARINVER ARGENTINA: Proofs of Claim Verification Ends on Nov. 12
CANTERA FC: Trustee To File Individual Reports on Dec. 17
CAPEX SA: S&P Withdraws B Corp. Rating After Debt Repayment
DIRECTV GROUP: Launching Broadband Services in Argentina
EASTMAN KODAK: Board Promotes Philip Faraci to President & COO
FAYLUP SA: Proofs of Claim Verification Is Until Nov. 14
FILL IN THE BLANKS: Proofs of Claim Verification Ends Oct. 8
HOLTER SRL: Proofs of Claim Verification Deadline Is Tomorrow
IMAGENES LAS LOMAS: Proofs of Claim Verification Ends on Dec. 7
INDUPOL SRL: Proofs of Claim Verification Ends Today
LA DOLCE: Proofs of Claim Verification Deadline Is Today
LAS MARIAS: Proofs of Claim Verification Deadline Is Oct. 31
MAPEAL SA: Proofs of Claim Verification Is Until Nov. 16
MERAC SA: Proofs of Claim Verification Deadline Is Dec. 5
NOR-JOR SRL: Proofs of Claim Verification Ends Today
OFFICE PLUS: Trustee Filing Individual Reports on Nov. 29
TELECOM ARGENTINA: DirecTV Uses Co.'s Network To Offer Broadband
TELECOM ARGENTINA: Antitrust Decision Expected in 15 Days
TELEFONICA DE ARGENTINA: Antitrust Decision Expected in 15 Days
VITITRANS SA: Proofs of Claim Verification Is Until Oct. 22
W.R. GRACE: Ninth Circuit Reinstates Libby Conspiracy Charge
B A R B A D O S
DIGICEL GROUP: Cutting Back on Sales Locations to Boost Profits
B E R M U D A
SUNRISE LIMITED: Proofs of Claim Filing Is Until Today
B O L I V I A
COEUR D'ALENE: Files Preliminary Proxy Materials
B R A Z I L
ALERIS INTERNATIONAL: Acquires Alumox Holding
ALERIS INTERNATIONAL: Will Close Tennessee Plant by Nov. 20
BANCO NACIONAL: Forms BRL100-Mil. Program for Pro-Aeronautica
BANCO NACIONAL: Grants Financing to Sanitation Project in Recife
BANCO NACIONAL: Providing BRL205-Million Financing for Pirapama
BANCO NACIONAL: Seeking More Funds from Multilateral Groups
DRESSER-RAND GROUP: Earns US$26.2 Million in Qtr. Ended June 30
FIDELITY NAT'L: Moody's Confirms Ba1 Corporate Family Rating
FLEXTRONICS INT'L: Unit Wants to Buy Arima's Notebook Operations
GENERAL MOTORS: Failed Contract Talks Spur UAW Work Stoppage
GENERAL MOTORS: Union Strike Cues Fitch to Put Ratings on Watch
GENERAL MOTORS: Moody's Holds Ratings Following UAW Strike
MAGNA INT'L: Unit Purchases Manufacturing Assets in Mexico
NRG ENERGY: Files Application to Build Two Nuclear Units
PERDIGAO SA: Moody's Puts Preliminary Ba1 Corp. Family Rating
PETROLEO BRASILEIRO: Inks Oil Refinery Pact with PDVSA
C A Y M A N I S L A N D S
4C ASSOCIATES: Will Hold Final Shareholders Meeting Tomorrow
BANK OF INDIA: Issues Perpetual Debt Instruments Bond Series I
BRAZILIAN EQUITY: Proofs of Claim Must be Filed by Oct. 18
CAYMAN CLEARING: Sets Final Shareholders Meeting for Tomorrow
HEDGEFORUM PAULSON: Proofs of Claim Filing Ends on Oct. 18
HEDGEFORUM VEGA: Proofs of Claim Must be Filed by Oct. 18
J-CASHING CORP: Proofs of Claim Filing Is Until Oct. 18
K CAPITAL: Will Hold Final Shareholders Meeting Today
MIZUHO PREFERRED: Proofs of Claim Filing Ends on Oct. 18
MULTI EXPOSURE: Proofs of Claim Filing Deadline Is Oct. 18
NZB PRODUCTS: Sets Final Shareholders Meeting for Tomorrow
OFFCO LIMITED: Proofs of Claim Filing Is Until Oct. 18
PRINCIPAL PROTECTED V: Proofs of Claim Must be Filed by Oct. 18
PRINCIPAL PROTECTED VII: Proofs of Claim Filing Ends Oct. 18
SCOUT CAPITAL: Will Hold Final Shareholders Meeting Today
SET CO: Proofs of Claim Filing Deadline Is Oct. 18
SPECIAL K (EURO): Sets Final Shareholders Meeting for Today
SPECIAL K (U.S.): Will Hold Final Shareholders Meeting Today
WEST WIND: Will Hold Final Shareholders Meeting Tomorrow
C H I L E
AES GENER: Submits Study for US$7.9MM Ventanas-Nogales Line
INGRAM MICRO: Teams Up with Best Buy in Business Expansion
TECH DATA: AIS Division Signs Distribution Deal with Clustercorp
C O L O M B I A
ECOPETROL: Six Pension Fund Managers Buy Shares for COP2.6 Tril.
E C U A D O R
DOLE FOOD: Lettuce in Salad Mix Mostly Came from California
FREEPORT-MCMORAN: Unit to Set Up Smelting & Refining Venture
E L S A L V A D O R
EXIDE TECHNOLOGIES: Names Luke Lu as President for Asia Pacific
G R E N A D A
DIGICEL GROUP: Launching Next Generation Networking Using WiMax
G U A T E M A L A
BRITISH AIRWAYS: Set to Reveal Long-Haul Aircraft Order Winner
J A M A I C A
AIR JAMAICA: Launches Web Check-In Service
CABLE & WIRELESS: Unit Launches New Internet Protocol Software
SUGAR COMPANY: Christopher Tufton Prioritizes Reorganization
M E X I C O
ALASKA AIRLINES: S&P Affirms Long-Term Corporate Rating at BB-
AMERICAN TOWER: Fitch Assigns BB+ Rating on US$250-Mln Sr. Notes
AMERICAN TOWER: Moody's Rates Planned US$250-Mil. Notes at Ba1
AMERICAN TOWER: S&P Puts BB+ Rating on Proposed US$250-Mln Notes
AMSCAN HOLDING: Planned Buy Cues Moody's To Review Ratings
DANA CORP: Extends Challenge Period for Waiver Fee Payments
DANA CORP: Completes Sale of Coupled Products Business
FIRST DATA: KKR Affiliates Completes Acquisition
GRUPO TMM: Reaches US$54.1-Million Settlement with Kansas City
HERBALIFE INT'L: Moody's Affirms Credit Facility'S Ba1 Rating
N I C A R A G U A
* NICARAGUA: Gets US$20-Million Loan for Healthcare Networks
P A N A M A
CHIQUITA BRANDS: Names Howard Baker to Board of Directors
P A R A G U A Y
AGILENT TECHNOLOGIES: Inks Resale Agreement with Accelerys
P U E R T O R I C O
AFC ENTERPRISES: Moody's Affirms Debt Ratings; Changes Outlook
APARTMENT INVESTMENT: Fitch Affirms Rating on US$1.125B Stock
AVNET INC: To Acquire Components Distributor Betronik GmbH
GENESCO INC: Files Suit Against Finish Line to Consummate Merger
GLOBAL HOME: Capital Solutions Okayed as Panel's Fin'l Advisor
MUSICLAND HOLDING: Panel Enters Settlement with 20th Century Fox
MUSICLAND HOLDING: Wants Emergence Date Extended to October 31
PEP BOYS: Paying US$0.0675 Per Share Dividend on Oct. 29
R&G FINANCIAL: Fitch Junks Long-Term Issuer Default Rating
T R I N I D A D & T O B A G O
MIRANT CORP: Texas Court Confirms Mirant Lovett's Amended Plan
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Inks Oil Refinery Pact with Petrobras
* VENEZUELA: Chavez Says South American Bank to Open in November
- - - - -
=================
A R G E N T I N A
=================
AMC TELEVISION: Proofs of Claim Verification Ends Today
-------------------------------------------------------
Monica Aquim, the court-appointed trustee for AMC Television
S.A.'s reorganization proceeding, verifies creditors' proofs of
claim until Sept. 26, 2007.
Ms. Aquim 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 AMC Television 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 AMC Television's
accounting and banking records will be submitted in court.
The informative assembly will be held on July 3, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
Ms. Aquim is also in charge of administering AMC Television's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
AMC Television S.A.
Parana 326
Buenos Aires, Argentina
The trustee can be reached at:
Monica Aquim
Uruguay 662
Buenos Aires, Argentina
ARINVER ARGENTINA: Proofs of Claim Verification Ends on Nov. 12
---------------------------------------------------------------
Jose Luis Abuchdid, the court-appointed trustee for Arinver
Argentina S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Nov. 12, 2007.
Mr. Abuchdid will present the validated claims in court as
individual reports on Dec. 26, 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 Arinver Argentina 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 Arinver Argentina's
accounting and banking records will be submitted in court on
March 10, 2008.
Mr. Abuchdid is also in charge of administering Arinver
Argentina's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Arinver Argentina S.A.
Virrey Loreto 2690
Buenos Aires, Argentina
The trustee can be reached at:
Jose Luis Abuchdid
Avenida de los Incas 3624
Buenos Aires, Argentina
CANTERA FC: Trustee To File Individual Reports on Dec. 17
---------------------------------------------------------
Edgardo Alberto Borghi, the court-appointed trustee for Cantera
F.C. S.A.'s reorganization proceeding, will present the
validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
Dec. 17, 2007.
Mr. Borghi verifies creditors' proofs of claim until
Nov. 5, 2007. He will also submit a general report containing
an audit of Cantera's accounting and banking records in court on
March 6, 2008.
The informative assembly will be held on Aug. 27, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The debtor can be reached at:
Cantera FC Sociedad Anonima
Reconquista 144
Buenos Aires, Argentina
The trustee can be reached at:
Edgardo Alberto Borghi
Luis Viale 2176
Buenos Aires, Argentina
CAPEX SA: S&P Withdraws B Corp. Rating After Debt Repayment
-----------------------------------------------------------
Standard & Poor's Ratings Services has withdrawn its 'B'
corporate credit rating on CAPEX S.A. at the company's request,
after the company repaid its capital market debt.
CAPEX's primary business is generating electricity in the
Comahue region in southwestern Argentina. Its thermal plant,
with six gas-fired units and one steam unit, has an installed
nominal capacity of 672 MW, representing about 3% of total
installed capacity in the Sistema Argentino de Interconexion.
Although CAPEX engages in nonregulated businesses, such as crude
oil exploration and production as well as liquefied petroleum
gas and gasoline production, power generation continues to be
the company's core business (contributing about 60% of sales).
CAPEX is controlled by Compania Asociadas Petroleras S.A., a
privately owned company that explores for, develops, produces,
and sells oil.
DIRECTV GROUP: Launching Broadband Services in Argentina
--------------------------------------------------------
DirecTV will offer broadband services in Argentina in six weeks
using Telecom Argentina's network, news daily Infobae reports.
Business News Americas relates that DirecTV offers digital
television in Argentina and has been considering the best way of
adding Internet to its offering. The firm ruled out offering
Internet over satellite as the cost of the service would be too
high.
DirecTV marketing representative Alejandro Zunda Cornell
explained to Infobae that the firm will sell and bill the
service. Telecom Argentina will conduct the transmission of the
service.
According to Infobae, the package of satellite television and
broadband services will cost ARS120.
Consultancy Signals Telecoms Consulting market research director
Carlos Blanco commented to BNamericas, "The launch is part of a
regional strategy. DirecTV has alliances with fixed operators
to offer this packaged service in Chile, Colombia, Brazil and
Puerto Rico."
Infobae notes that DirecTV is in talks with wireless broadband
companies to offer the technology to its clients.
DirecTV could be considering possible partnerships with
telephony cooperatives in the provinces, Infobae says, citing
Mr. Blanco.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina. It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo. France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake. Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).
About DirecTV
Headquartered in El Segundo, California, The DIRECTV Group
(NYSE:DTV) -- http://www.directv.com/--, Inc. provides digital
television entertainment in the United States and Latin America.
It has two segments, DIRECTV U.S. and DIRECTV Latin America.
The DIRECTV U.S. segment provides direct-to-home digital
television services in the multichannel video programming
distribution industry in the United States. The DIRECTV Latin
America segment provides digital direct-to-home digital
television services to approximately 1.6 million subscribers in
27 countries, including Brazil, Argentina, Venezuela, and Puerto
Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 5, 2007, Standard & Poor's Ratings Services affirmed the
'BB' corporate credit and 'BB-' senior unsecured debt rating on
The DIRECTV Group Inc. S&P said the outlook is stable.
EASTMAN KODAK: Board Promotes Philip Faraci to President & COO
--------------------------------------------------------------
Eastman Kodak Company's board of directors has promoted Philip
J. Faraci to the position of President and Chief Operating
Officer, effective immediately.
As President and COO, Mr. Faraci will be responsible for the
day-to-day management of Kodak's two major digital businesses:
the Consumer Digital Imaging Group and the Graphic
Communications Group. Mr. Faraci has been President of CDG and
a Senior Vice President of the company.
He assumes responsibility for GCG from James T. Langley, who
remains a Senior Vice President until his departure at the end
of the year. Since the company is eliminating the position of
president for both CDG and GCG, Mr. Langley will leave Kodak
once he completes the transition of his responsibilities for
GCG.
Kodak's major traditional business, the Film Products Group,
will continue to report to Chairman and Chief Executive Officer
Antonio M. Perez under the leadership of Mary Jane Hellyar,
President, FPG, and a Senior Vice President of the company.
The changes are part of Kodak's larger effort to create an
organization geared for sustained, profitable growth in digital
markets. As Kodak nears the conclusion of its four-year
restructuring effort, these moves position the company for the
next phase of its transformation, during which it will build
bigger digital businesses and continue the effective management
of its traditional business.
"This new structure will allow us to better capitalize on the
opportunities before us," Mr. Perez said. "With a single leader
for the digital businesses, we will be able to leverage our
technology across product lines more effectively, while keeping
independent business models and go-to-market strategies for both
CDG and GCG. At the same time, it's important that we continue
to pursue strategies that extend the strong cash generation of
our FPG business. The new structure provides the necessary
differentiated focus between our digital and our traditional
businesses."
As Chairman and CEO, Perez continues to have the primary
responsibility for setting the company's strategy, managing
broad issues of corporate governance, and delivering the overall
financial and operating performance of the company. Mr. Faraci,
who joined Kodak in December 2004, will be responsible for the
performance of the two businesses reporting to him as well as
the operating activities of those units.
"Phil has made enormous contributions to the progress of Kodak's
digital transformation," Mr. Perez said. "He drove the recent
introduction of our revolutionary consumer inkjet printers,
improved the earnings of our digital capture business, and
created a more profitable go-to-market model for our consumer
digital business. The leadership that Phil has exhibited makes
him well suited to take on additional responsibilities and to
build on Jim's success. I am confident that these businesses
will reach new heights under Phil's leadership."
Mr. Langley, who joined Kodak in August 2003, led the series of
acquisitions that resulted in what is now Kodak's Graphic
Communications Group, a US$3.6 billion business that offers the
broadest portfolio of blended solutions in the industry.
"Kodak's promising future reflects in large part the great
business that Jim built for us," Mr. Perez said. "I cannot
thank him enough for coming out of retirement to help establish
Kodak as a leading participant in the graphic communications
industry. Jim has completed the work he came to do, and the
result is that the position of GCG president is no longer
necessary in this new structure. I wish Jim all the best upon
his return to his private life, and I thank him for all of his
many contributions."
The new management structure also positions the Film Products
Group to continue making significant contributions to the
success of Kodak well into the future.
"FPG's performance has been exceptional, reflecting the strong
leadership of Mary Jane Hellyar and her team," Mr. Perez said.
"Kodak remains committed to the business and technology of
film."
Following these changes, the reporting structure of the company
will be as follows:
-- Finance, Legal, the Chief Technical Office, Human
Resources, the Global Diversity office, and the Chief
Information Officer will report to Mr. Perez; and
-- Worldwide Information Systems, and all manufacturing and
logistics activity of CDG and GCG will report to
Mr. Faraci.
"I am honored to be given the responsibility of helping to lead
Kodak through the next stage of its exciting future," Mr. Faraci
said. "My work is made easier by Jim Langley's exceptional
contributions to GCG and Mary Jane's continued excellence in
managing our traditional business. Through their efforts and
those of many others, Kodak is now participating in a number of
digital markets that allow us to leverage our expertise in image
science and materials science, built up over the decades by
Kodak's great technologists. My mission is to make the most of
the digital opportunity, and I know we will succeed by
leveraging the assets of our consumer and commercial
businesses."
Today's announcement represents one of the final steps in the
company's four-year long restructuring, which will conclude this
year.
"We will enter 2008 with the company that I came here to run,"
Mr. Perez said. "We now have in place the right management, the
right structure, the right products and, most importantly, the
right people for Kodak to generate sustained profits in digital
markets. Together, we look forward to delivering on the promise
of the Kodak brand for the benefit of our shareholders and
employees."
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK)-- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.
The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.
As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2007, Standard & Poor's Ratings Services has affirmed
its 'B+' corporate credit rating on Eastman Kodak Co. and
removed the ratings from CreditWatch, where they had been placed
with negative implications on Aug. 2, 2006. The outlook is
negative.
FAYLUP SA: Proofs of Claim Verification Is Until Nov. 14
--------------------------------------------------------
Ricardo Jose Lisio, the court-appointed trustee for Faylup
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Nov. 14, 2007.
Mr. Lisio will present the validated claims in court as
individual reports on Dec. 28, 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 Faylup 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 Faylup's accounting
and banking records will be submitted in court on
March 12, 2008.
Mr. Lisio is also in charge of administering Faylup'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 Jose Lisio
Viamonte 1592
Buenos Aires, Argentina
FILL IN THE BLANKS: Proofs of Claim Verification Ends Oct. 8
------------------------------------------------------------
Osvaldo Jose Raimundo, the court-appointed trustee for Fill In
The Blanks S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Oct. 8, 2007.
Mr. Raimundo will present the validated claims in court as
individual reports on Nov. 20, 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 Fill In The Blanks 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 Fill In The Blanks'
accounting and banking records will be submitted in court on
Feb. 6, 2008.
Mr. Raimundo is also in charge of administering Fill In The
Blanks' assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Osvaldo Jose Raimundo
Rodriguez Pena 797
Buenos Aires, Argentina
HOLTER SRL: Proofs of Claim Verification Deadline Is Tomorrow
-------------------------------------------------------------
Eduardo Ruben Pronsky, the court-appointed trustee for Holter
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Sept. 27, 2007.
Mr. Pronsky will present the validated claims in court as
individual reports on Nov. 16, 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 Holter 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 Holter's accounting
and banking records will be submitted in court on Dec. 17, 2007.
Mr. Pronsky is also in charge of administering Holter's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Holter S.R.L.
Avenida Cabildo 2569
Buenos Aires, Argentina
The trustee can be reached at:
Eduardo Ruben Pronsky
Parana 480
Buenos Aires, Argentina
IMAGENES LAS LOMAS: Proofs of Claim Verification Ends on Dec. 7
---------------------------------------------------------------
Lia Stella Maris Alvarez, the court-appointed trustee for
Imagenes Las Lomas SA's reorganization proceeding, verifies
creditors' proofs of claim until Dec. 7, 2007.
Ms. Alvarez will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 12 in Buenos Aires, with the assistance of Clerk
No. 24, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Imagenes Las Lomas 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 Imagenes Las Lomas'
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
The informative assembly will be held on Sept. 9, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The debtor can be reached at:
Imagenes Las Lomas SA
Viamonte 611
Buenos Aires, Argentina
The trustee can be reached at:
Lia Stella Maris Alvarez
Avenida Cerrito 146
Buenos Aires, Argentina
INDUPOL SRL: Proofs of Claim Verification Ends Today
----------------------------------------------------
Roberto J. Kleinman, the court-appointed trustee for Indupol
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Sept. 26, 2007.
Mr. Kleinman 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 Indupol 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 Indupol's accounting
and banking records will be submitted in court on Dec. 20, 2007.
Mr. Kleinman is also in charge of administering Indupol's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Indupol S.R.L.
J.D. Peron 1143
Buenos Aires, Argentina
The trustee can be reached at:
Roberto J. Kleinman
Armenia 2104
Buenos Aires, Argentina
LA DOLCE: Proofs of Claim Verification Deadline Is Today
--------------------------------------------------------
Estudio Mendizabal, Guerrero, Machado, the court-appointed
trustee for La Dolce SRL's reorganization proceeding, verifies
creditors' proofs of claim until Sept. 26, 2007.
Estudio Mendizabal will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 21 in Buenos Aires, with the assistance of Clerk
No. 41, 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 La Dolce 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 La Dolce's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
The informative assembly will be held on Sept. 26, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The debtor can be reached at:
La Dolce SRL
Avenida Presidente Roque Saenz Pena 893
Buenos Aires, Argentina
The trustee can be reached at:
Estudio Mendizabal, Guerrero, Machado
Peru 79
Buenos Aires, Argentina
LAS MARIAS: Proofs of Claim Verification Deadline Is Oct. 31
------------------------------------------------------------
Hector Antonio Martorell, the court-appointed trustee for Las
Marias del Matal S.R.L.'s reorganization proceeding, verifies
creditors' proofs of claim until Oct. 31, 2007.
Mr. Martorell will present the validated claims in court as
individual reports on Dec. 17, 2007. The National Commercial
Court of First Instance in San Miguel de Tucuman, Tucuman, 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 Marias 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 Marias'
accounting and banking records will be submitted in court on
Feb. 28, 2008.
The informative assembly will be held on Aug. 4, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The debtor can be reached at:
Las Marias del Matal S.R.L.
San Lorenzo 502, San Miguel de Tucuman
Tucuman, Argentina
The trustee can be reached at:
Hector Antonio Martorell
San Juan 642, San Miguel de Tucuman
Tucuman, Argentina
MAPEAL SA: Proofs of Claim Verification Is Until Nov. 16
--------------------------------------------------------
Nestor Agustin Iribe, the court-appointed trustee for Mapeal
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until Nov. 16, 2007.
Mr. Iribe will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 8, 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 Mapeal 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 Mapeal's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Iribe is also in charge of administering Mapeal's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Mapeal SA
Avenida de Mayo 1340
Buenos Aires, Argentina
The trustee can be reached at:
Nestor Agustin Iribe
Avenida Corrientes 1250
Buenos Aires, Argentina
MERAC SA: Proofs of Claim Verification Deadline Is Dec. 5
---------------------------------------------------------
Ernesto Higueras, the court-appointed trustee for Merac SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
Dec. 5, 2007.
Mr. Higueras will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 3 in Buenos Aires, with the assistance of Clerk
No. 5, 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 Merac 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 Merac's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Higueras is also in charge of administering Merac's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Merac SA
Salvador Maria del Carril 2540
Buenos Aires, Argentina
The trustee can be reached at:
Ernesto Higueras
Sanchez de Loria 1944
Buenos Aires, Argentina
NOR-JOR SRL: Proofs of Claim Verification Ends Today
----------------------------------------------------
Mario Leizerow, the court-appointed trustee for Nor-Jor S.R.L.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
Sept. 26, 2007.
Mr. Leizerow will present the validated claims in court as
individual reports on Nov. 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 Nor-Jor 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 Nor-Jor's accounting
and banking records will be submitted in court on Dec. 19, 2007.
Mr. Leizerow is also in charge of administering Nor-Jor's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Nor-Jor S.R.L.
Murguiondo 2168/72
Buenos Aires, Argentina
The trustee can be reached at:
Mario Leizerow
Bouchard 644
Buenos Aires, Argentina
OFFICE PLUS: Trustee Filing Individual Reports on Nov. 29
---------------------------------------------------------
Jorge Luis Blazquez, the court-appointed trustee for Office Plus
S.A.'s bankruptcy proceeding, will present the validated claims
as individual reports in the National Commercial Court of First
Instance in Buenos Aires on Nov. 29, 2007.
Mr. Blazquez verifies creditors' proofs of claim until
Oct. 18, 2007. He will also submit a general report containing
an audit of Office Plus' accounting and banking records in court
on Feb. 13, 2008.
Mr. Blazquez is also in charge of administering Office Plus'
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Office Plus S.A.
Avenida L. N. Alem 896
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Luis Blazquez
Fray Justo Santa Maria de Oro 2381
Buenos Aires, Argentina
TELECOM ARGENTINA: DirecTV Uses Co.'s Network To Offer Broadband
----------------------------------------------------------------
DirecTV will use Telecom Argentina's network to offer broadband
services in Argentina in six weeks, news daily Infobae reports.
Business News Americas relates that DirecTV offers digital
television in Argentina and has been considering the best way of
adding Internet to its offering. The firm ruled out offering
Internet over satellite as the cost of the service would be too
high.
DirecTV marketing representative Alejandro Zunda Cornell
explained to Infobae that the firm will sell and bill the
service. Telecom Argentina will conduct the transmission of the
service.
According to Infobae, the package of satellite television and
broadband services will cost ARS120.
Consultancy Signals Telecoms Consulting market research director
Carlos Blanco commented to BNamericas, "The launch is part of a
regional strategy. DirecTV has alliances with fixed operators
to offer this packaged service in Chile, Colombia, Brazil and
Puerto Rico."
Infobae notes that DirecTV is in talks with wireless broadband
companies to offer the technology to its clients.
DirecTV could be considering possible partnerships with
telephony cooperatives in the provinces, Infobae says, citing
Mr. Blanco.
About DirecTV
Headquartered in El Segundo, California, The DIRECTV Group
(NYSE:DTV) -- http://www.directv.com/--, Inc. provides digital
television entertainment in the United States and Latin America.
It has two segments, DIRECTV U.S. and DIRECTV Latin America.
The DIRECTV U.S. segment provides direct-to-home digital
television services in the multichannel video programming
distribution industry in the United States. The DIRECTV Latin
America segment provides digital direct-to-home digital
television services to approximately 1.6 million subscribers in
27 countries, including Brazil, Argentina, Venezuela, and Puerto
Rico.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina. It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo. France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake. Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).
* * *
As reported on Oct 11, 2006, Standard & Poor's Ratings Services
raised Telecom Argentina S.A.'s counterparty credit rating to
B+/Stable/ from B/Stable following the upgrade of the Republic
of Argentina to 'B+' from 'B'.
TELECOM ARGENTINA: Antitrust Decision Expected in 15 Days
---------------------------------------------------------
The Argentine antitrust agency Comision Nacional De Defensa De
La Competencia would make a decision on the Telefonica de
Argentina parent Telefonica's Telecom Italia stake acquisition
in 15 days, state news service Tlam reports.
Telecom Italia controls Telecom Argentina.
Business News Americas relates that the agency is carrying out
preliminary probes into whether the acquisition would lead to
Telefonica having undue influence on the decisions of Telecom
Argentina, which Telecom Italia controls.
As reported in the Troubled Company Reporter-Latin America on
Sept. 12, 2007, a consortium of Italian companies and Telefonica
reached an accord on April 28, 2007, to indirectly acquire a
23.6% controlling stake in European operator Telecom Italia.
Telecom Italia owns 50% of Sofora, Telecom Argentina's
controller. Local investment group Grupo Werthein, Telecom
Argentina's second biggest shareholder, claimed that Telefonica
would eventually have an impact on Telecom Argentina. Comision
Nacional asked Spanish telecommunications firm Telefonica,
Telefonica de Argentina's parent firm, for additional
documentation on its acquisition of a controlling stake in
Telecom Italia.
The Telecom Argentina board assured in a filing to the Buenos
Aires stock exchange that the deal wouldn't interfere in its
structure.
About Telefonica
Telefonica, S.A., together with its subsidiaries and investees
(Telefonica Group), operates mainly in the telecommunications,
media and entertainment industries. The Telefonica Group is
also involved in the media and contact center activities through
investments in Telefonica de Contenidos and Atento. The company
operates through three segments: Telefonica Spain, Telefonica
Europe and Telefonica Latin America. Telefonica Spain oversees
the wireline and wireless telephony, broadband and data
businesses in Spain. Telefonica Latin America oversees the same
businesses in Latin America. Telefonica Europe oversees the
wireline, wireless, broadband and data businesses in the United
Kingdom, Germany, the Isle of Man, Ireland, the Czech Republic
and the Slovak Republic.
About Telefonica de Argentina
Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina SA -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina. It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo. France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake. Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).
* * *
As reported on Oct 11, 2006, Standard & Poor's Ratings Services
raised Telecom Argentina S.A.'s counterparty credit rating to
B+/Stable/ from B/Stable following the upgrade of the Republic
of Argentina to 'B+' from 'B'.
TELEFONICA DE ARGENTINA: Antitrust Decision Expected in 15 Days
---------------------------------------------------------------
The Argentine antitrust agency Comision Nacional De Defensa De
La Competencia would make a decision on Telefonica de Argentina
parent Telefonica's Telecom Italia stake acquisition in 15 days,
state news service Tlam reports.
Telecom Italia controls Telecom Argentina.
Business News Americas relates that the agency is carrying out
preliminary probes into whether the acquisition would lead to
Telefonica having undue influence on the decisions of Telecom
Argentina, which Telecom Italia controls.
As reported in the Troubled Company Reporter-Latin America on
Sept. 12, 2007, a consortium of Italian companies and Telefonica
reached an accord on April 28, 2007, to indirectly acquire a
23.6% controlling stake in European operator Telecom Italia.
Telecom Italia owns 50% of Sofora, Telecom Argentina's
controller. Local investment group Grupo Werthein, Telecom
Argentina's second biggest shareholder, claimed that Telefonica
would eventually have an impact on Telecom Argentina. Comision
Nacional asked Spanish telecommunications firm Telefonica,
Telefonica de Argentina's parent firm, for additional
documentation on its acquisition of a controlling stake in
Telecom Italia.
The Telecom Argentina board assured in a filing to the Buenos
Aires stock exchange that the deal wouldn't interfere in its
structure.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina. It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo. France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake. Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).
About Telefonica
Telefonica, S.A., together with its subsidiaries and investees
(Telefonica Group), operates mainly in the telecommunications,
media and entertainment industries. The Telefonica Group is
also involved in the media and contact center activities through
investments in Telefonica de Contenidos and Atento. The company
operates through three segments: Telefonica Spain, Telefonica
Europe and Telefonica Latin America. Telefonica Spain oversees
the wireline and wireless telephony, broadband and data
businesses in Spain. Telefonica Latin America oversees the same
businesses in Latin America. Telefonica Europe oversees the
wireline, wireless, broadband and data businesses in the United
Kingdom, Germany, the Isle of Man, Ireland, the Czech Republic
and the Slovak Republic.
About Telefonica de Argentina
Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina SA -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.
* * *
As reported in the Troubled Company Reporter on Jan. 22, 2007,
Moody's Latin America changed the rating outlook to positive
from stable for Telefonica de Argentina's foreign currency
rating of B2 and for the Aa3.ar (national scale rating). The
rating action was taken in conjunction with Moody's outlook
change to positive from stable for Argentina's B2 foreign
currency ceiling for bonds and notes on Jan. 16, 2007.
Telefonica de Argentina's foreign currency rating continues to
be constrained by Argentina's B2 ceiling.
VITITRANS SA: Proofs of Claim Verification Is Until Oct. 22
-----------------------------------------------------------
Jorge Eduardo Zeballos, the court-appointed trustee for
Vititrans S.A.'s reorganization proceeding, verifies creditors'
proofs of claim until Oct. 22, 2007.
Mr. Zeballos will present the validated claims in court as
individual reports on Dec. 3, 2007. The National Commercial
Court of First Instance in Rivadavia, Mendoza, will determine if
the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Vititrans 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 Vititrans' accounting
and banking records will be submitted in court on Feb. 20, 2008.
The debtor can be reached at:
Vititrans S.A.
San Isidro 760, Rivadavia
Mendoza, Argentina
The trustee can be reached at:
Jorge Eduardo Zeballos
Vicuna Prado 32, Rivadavia
Mendoza, Argentina
W.R. GRACE: Ninth Circuit Reinstates Libby Conspiracy Charge
------------------------------------------------------------
A three-judge panel of the U.S. Court of Appeals for the Ninth
Circuit reversed certain district court pre-trial rulings
against W.R. Grace & Co. and six of the company's former
executives on the alleged poisoning of Libby, Montana residents.
Particularly, the Honorable Betty Fletcher reinstated a
conspiracy charge initiated by the U.S. Government against the
Grace Defendants in relation to Grace's former vermiculite
operations in the town of Libby.
From 1963 to 1992, Grace mined a rich supply of vermiculite ore
outside Libby. Libby residents subsequently complained of
serious health problems in relation to Grace's vermiculite
operations. In response, the Government obtained an indictment
in 2005, charging Grace and seven of its executives with
criminal conduct arising from Grace's Libby operations. The
indictment accused the Grace Defendants of:
(1) conspiracy to violate environmental laws and obstruct
federal agency proceedings;
(2) violations of the federal Clean Air Act; and
(3) obstruction of justice.
Among the named defendants are:
* William McCaig, former manager of operations at the Libby
mine;
* Robert Walsh and Robert Bettacchi, former presidents of
Grace's Construction Products Division;
* Jack Wolter, ex-general manager of the Construction
Products Division;
* Henry Eschenbach, a former director of health and safety at
Grace; and
* Mario Favorito, a former legal counsel for Grace.
Alan Stringer, also a named defendant in the Libby case, died in
February 2007. He used to be a Grace general operations manager
in Libby.
In March 2006, the Defendants asserted that the Government
failed to allege a requisite overt act before the statute of
limitations ran in November 2004, and sought dismissal of the
knowing endangerment object of the conspiracy charge.
The U.S. District Court for the District of Montana
preliminarily dismissed as time barred the knowing endangerment
object of the the conspiracy charge. Shortly thereafter, the
Government obtained a superseding indictment, which had certain
amendments but was essentially similar to the original
indictment.
In July 2006, the District Court again dismissed a portion of
the Government's allegations, asserting conspiracy to knowingly
endanger residents of the Libby area and others in violation of
the Clean Air Act, of the new indictment.
In August 2006, District Court Judge Molloy granted a request by
the Defendants to exclude as evidence sample results that
included minerals that do not constitute asbestos under the
Clean Air Act.
The Government appealed the District Court rulings to the Ninth
Circuit. As a result, the District Court trial has been delayed
pending resolution of the appeals.
Upon review, Judge Fletcher found that the District Court erred
in dismissing the knowing endangerment object in the original
indictment. "[T]he parties do not dispute that the original
indictment was timely filed. The district court's holding that
the indictment was time-barred referred only to its failure to
allege the necessary overt acts in the original indictment -- a
flaw that can be cured through reindictment under [18 U.S.C.
Section] 3288."
The Ninth Circuit noted that Section 3288 extends the statute of
limitations by six months to allow the prosecution a second
opportunity to do what it failed to do in the beginning: namely,
file an indictment free of legal defects.
The Ninth Circuit held that a reading of Section 3288 does not,
as the District Court suggests, "require a defendant to remain
subject to an indefinite threat of prosecution, held open beyond
the statute of limitations period, while he and the court wait
for the government to finish tinkering with the indictment."
Judge Fletcher pointed out that Section 3288:
(1) eliminates the incentive for criminal defendants to move
for dismissal of an indictment at the end of the statute
of limitations, thereby winning dismissal at a time when
the government cannot re-indict; and
(2) subjects defendants to the threat of prosecution for six
months after the dismissal of the original indictment
and only if the government has timely filed an
indictment charging the exact same crimes based on
approximately the same facts.
Accordingly, Judge Fletcher reinstated the knowing endangerment
object of the conspiracy charge in the superseding indictment.
With regards to Congress' use of the term "asbestos" to identify
a hazardous air pollutant, the Government contended that a
statute may have two definitions for one term -- one definition
civil and one criminal. The Government also argued that the
definition of asbestos applicable to the Clean Air Act's
criminal knowing endangerment provision covers the minerals
involved in the present case. "We agree on both points," Judge
Fletcher opined.
The Defendants had actual notice of the risks from the fibrous
content of the asbestiform minerals in their products, the Ninth
Circuit held. "It is clear that defendants knew or should have
known that their mining, milling, and distribution activities
risked the release of asbestos into the ambient air."
Thus, Judge Fletcher held that the District Court erred in
concluding that ambiguity exists simply because of the existence
of two oversight structures -- a civil regulatory structure and
a criminal enforcement provision -- that use different
definitions of the term "asbestos."
In addition, Judge Fletcher held that the District Court
improperly limited the term "asbestos" to the six minerals
covered by the civil regulations. Asbestos is adequately
defined as a term and need not include mineral-by-mineral
classifications to provide notice of its hazardous nature,
particularly to these knowledgeable defendants, Judge Fletcher
said.
Accordingly, the Ninth Circuit reversed the order limiting
evidence to that fitting within the civil regulations.
The Ninth Circuit also granted the Government's request for a
writ of mandamus, and held that Grace cannot avail itself at
trial of the affirmative defense articulated in 42 U.S.C.
Section 7413(c)(5)(A).
In relevant part, Section 7413(c)(5)(A) states that the release
of certain pollutant on which "the Administrator has set an
emissions standard" will not constitute a violation under that
provision.
On the other hand, Judge Fletcher affirmed the exclusion of
certain studies -- (1) EPA indoor air studies, (2) a report of
the Agency for Toxic Substances and Disease Registry based on a
medical screening study of Libby residents, and (3) the results
of the screening study published as an article in a peer-
reviewed journal (Peipins Publication) -- in the Libby case, but
reversed the District Court's decision to exclusion those
studies as bases underlying an expert's opinion or testimony.
Judge Fletcher also granted the Defendants' request to strike
certain documents included in the Government's reply brief to
the Ninth Circuit.
The panel that reviewed the Government's appeal is composed of
Ninth Circuit Judges Betty B. Fletcher, Harry Pregerson and
Warren J. Ferguson.
The U.S. Bankruptcy Court for the District of Delaware
previously granted Grace's request to advance legal and defense
costs to the Named Officer Defendants, subject to a
reimbursement obligation if it is later determined that the
Former Officer did not meet the standards for indemnification
set forth under the appropriate state corporate law. In a
filing with the Securities and Exchange Commission, Grace
reported that for the six months ended June 30, 2007 and 2006,
respectively, total expense for Grace and the Former Officer
totaled US$6.3 million and US$27.2 million.
Grace is unable to assess whether the indictment, or any
conviction resulting from it, will have a material adverse
effect on the results of its operations or financial condition
or affect its bankruptcy proceedings, the company noted in the
SEC filing.
With the current ruling on its Appeal, Grace's shares fell 5.5%
to US$25.39 in the New York Stock Exchange composite trading,
Bloomberg reports.
A copy of the 36-page Ninth Circuit Ruling is available for free
at http://ResearchArchives.com/t/s?23a8
About W.R. Grace
Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally, including Argentina,
Australia and Ireland.
The Company and its debtor-affiliates filed for chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
James H.M. Sprayregen, Esq., at Kirkland & Ellis, and Laura
Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones &
Weintraub, P.C., represent the Debtors in their restructuring
efforts. The Debtors hired Blackstone Group, L.P., for
financial advice. PricewaterhouseCoopers LLP is the Debtors'
accountant.
Stroock & Stroock & Lavan LLP represent the Official Committee
of Unsecured Creditors. The Creditors Committee tapped Capstone
Corporate Recovery LLC for financial advice. David T. Austern,
the legal representative of future asbestos personal injury
claimants, is represented by Orrick Herrington & Sutcliffe LLP
and Phillips Goldman & Spence, PA. Anderson Kill & Olick, P.C.,
represent the Official Committee of Asbestos Personal Injury
Claimants. The Asbestos Committee of Property Damage Claimants
tapped Martin W. Dies, III, Esq., at Dies & Hile L.L.P., and C.
Alan Runyan, Esq., at Speights & Runyan,to represent it.
Lexecon, LLP, provided asbestos claims consulting services to
the Official Committee of Equity Security Holders.
The Debtors' filed their Chapter 11 Plan and Disclosure
Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an
Amended Plan and Disclosure Statement. The hearing to consider
the adequacy of the Debtors' Disclosure Statement began on
Jan. 21, 2005. The Debtors' exclusive period to file a chapter
11 plan expired on July 23, 2007.
At Dec. 31, 2006, the W.R. Grace's balance sheet showed total
assets of US$3,620,400,000 and total debts of US$4,189,100,000.
(W.R. Grace Bankruptcy News, Issue No. 139; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
===============
B A R B A D O S
===============
DIGICEL GROUP: Cutting Back on Sales Locations to Boost Profits
---------------------------------------------------------------
Digicel is cutting back its Trinidad & Tobago sales units to
increase profits for selected dealers, news daily Trinidad
Express reports.
Digicel's relations manager Kevin Garcia told The Express, "In
some areas we have decided not to renew the partner/dealer
agreements of certain dealers."
Mr. Garcia then commented to Business News Americas, "This is to
ensure the remaining stores operated by our dealers are more
viable as a business and enjoy greater prospects of commercial
success, given the reduced dealer footprint."
Digicel's distribution partners requested the consolidation, The
Express states.
Digicel Group Limited -- http://www.digicelgroup.com/-- is a
wireless services provider in the Caribbean region. The company
is a newly created Bermuda incorporated company formed by Mr.
Denis O'Brien, who previously owned 78% of the shares of Digicel
Limited on a fully diluted basis. The company started
operations in Jamaica in April 2001 and now offers GSM mobile
services in 22 markets primarily in the Caribbean including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and
Haiti among others.
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- US$1.4 billion senior subordinated notes due 2015
assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings is stable.
=============
B E R M U D A
=============
SUNRISE LIMITED: Proofs of Claim Filing Is Until Today
------------------------------------------------------
Sunrise Ltd.'s creditors are given until Sept. 26, 2007, to
prove their claims to Robin J Mayor, 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.
Sunrise Ltd.'s shareholders agreed on Sept. 10, 2007 to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
=============
B O L I V I A
=============
COEUR D'ALENE: Files Preliminary Proxy Materials
------------------------------------------------
Coeur d'Alene Mines Corporation, Bolnisi Gold NL and Palmarejo
Silver and Gold Corporation disclosed that Coeur has filed its
preliminary proxy statement with the U.S. Securities and
Exchange Commission with respect to the issuance of Coeur shares
pursuant to its proposed acquisition of Bolnisi and Palmarejo.
The date of the special meeting of Coeur shareholders and the
record date for the meeting will be specified in a definitive
proxy statement that will be mailed to shareholders following
the SEC's review of the preliminary proxy statement or,
alternatively, the SEC's election to not review the preliminary
proxy statement. For shareholders' general information, the
preliminary proxy statement is available on the SEC's website at
http://www.sec.gov,the Canadian securities regulators' website
at http://www.sedar.comor Coeur's Web site at
http://www.coeur.com
Transaction Update
On May 3, 2007, Coeur, Bolnisi Gold NL, and Palmarejo announced
that they entered into agreements to merge, which were approved
unanimously by their respective boards of directors. Pursuant
to the agreements, Coeur will acquire all of the shares of
Bolnisi, and all the shares of Palmarejo not owned by Bolnisi,
in a transaction valued at approximately US$1.1 billion.
The companies have agreed to amend the Merger Implementation
Agreements and the Bolnisi directors' option deeds to allow for
adequate time for the required regulatory processes and receipt
of the required shareholder and court approvals. The parties
expect to close the transaction in the fourth quarter of 2007.
The companies also announced that Bolnisi, with the consent of
Coeur, will enter into a US$20 million credit facility with
Macquarie Bank Limited to fund ongoing project development. The
facility will enable Bolnisi and Palmarejo to continue to
develop the Palmarejo Project under the direction of the Project
Development Committee, which consists of professional staff from
Bolnisi, Palmarejo and Coeur.
About Bolnisi Gold
Bolnisi Gold NL is an Australia-based company engaged in mining
and exploration for gold and minerals. The Company's activities
are all Mexican precious metals operations with an existing
portfolio of projects, which include the Palmarejo Silver-Gold
project (including Trogan), Chihuahua; the Yecora Gold-Silver
project, Sonora, and the El Realito Gold-Silver project,
Chihuahua.
About Palmarejo Silver
Palmarejo Silver And Gold Corporation is a silver/gold
exploration company listed on the TSX Venture Exchange under the
symbol "PJO". Palmarejo's principal activity is to explore and
develop gold and silver properties located in the Temoris
District of Chihuahua, Mexico within the Sierra Madre Occidental
mountain range.
About Coeur
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.
===========
B R A Z I L
===========
ALERIS INTERNATIONAL: Acquires Alumox Holding
---------------------------------------------
Aleris International, Inc. has acquired Alumox Holding AS
located in Norway. Through its subsidiaries, Alumox AS and Reox
AS, Alumox recycles dross and scrap to recover aluminum and
processes salt slag to recover aluminum and aluminum oxide. The
Alumox business is expected to be integrated into Aleris's
European recycling business.
Terms of the deal were not disclosed.
Headquartered in Beachwood, Ohio, Aleris International Inc.
(NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled
aluminum products and offers aluminum recycling and the
production of specification alloys. The company also
manufactures value-added zinc products that include zinc oxide,
zinc dust and zinc metal. The company operates 42 production
facilities in the United States, Brazil, Germany, Mexico and
Wales, and employs approximately 4,200 employees.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 21, 2007, Standard & Poor's Ratings Services has revised
its outlook on Aleris International Inc. to negative from
stable. At the same time S&P has affirmed its 'B+' corporate
credit rating and the other ratings on the company.
Concurrently, S&P has assigned a 'B-' rating to the company's
recent US$105 million 9% senior notes due 2014, which are an
add-on to the company's existing US$600 million 9% senior notes
due 2014.
ALERIS INTERNATIONAL: Will Close Tennessee Plant by Nov. 20
-----------------------------------------------------------
Aleris International Inc. will shut down and permanently close
its manufacturing facility in Dickson, Tennessee, by
Nov. 20, 2007.
The Dickson plant was part of Aleris's acquisition of Wabash
Alloys LLC.
The Dickson plant produces specification aluminum alloys, which
are delivered to customers in both ingot and molten form. The
plant has approximately 67 employees.
Production will be transferred to other Aleris facilities.
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 with a '2' recovery rating.
BANCO NACIONAL: Forms BRL100-Mil. Program for Pro-Aeronautica
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's directors
approved the creation of Programa de Financiamento as Empresas
da Cadeia Produtiva Aeronautica Brasileira - Pro-Aeronautica
[Financing Program to Companies of the Brazilian Aeronautic
Productive Chain]. The objective is to strengthen Brazilian
suppliers to the aeronautic industry, expanding Embraer history
of success to other links of the productive chain.
The program will rely on a BRL100 million budget for application
throughout the next three years and will ensure credit access to
micro, small and medium-size companies (MPMEs) that demand
financings up to BRL10 million. The minimum amount for
operations directly with the Bank will be BRL1 million.
Usually, only financings of BRL10 million or more are contracted
on a direct basis.
The funds will allow sector MPMEs, which already demonstrate
solid growth perspectives, to expand their client base in Brazil
and abroad. With this, companies will generate more jobs and
income, besides contributing for the enhancement of the
aeronautic sector national industry. Currently, national
capital MPMEs of the aeronautic sector, despite competitive,
have been facing equity and accounting restrictions, which makes
it difficult to obtain the funds necessary for accelerated
growth.
BNDES participation will contribute to make Brazil an important
exporting productive platform for engineering services and parts
and components for aerospace systems. This will be possible in
view of the labor expertise, competencies and international
agreements available in the Country relative to aeronautic
product certification and the increased outsourcing of
aeronautic production to emerging countries.
Characteristics
The Program creates special conditions to allow that small
sector suppliers may have access to BNDES financings to expand
and meet the demand both of the domestic and international
market.
For that purpose, the directors have approved a change to some
items of their operating policies, as the use of personal
guarantees for operations in the amount of up to BRL10 million.
Besides this, the maximum financing limits were redefined, now
being allowed to reach 100% in case the project fits the
Innovation line. The total financing term will be determined
according to the payment capacity of the project, company and
economic group.
The Bank will finance investments on implementation, expansion,
recuperation, modernization, innovation and technological
development, acting both by means of long-term financing and of
subscription of company securities. That is, participating in
company shareholding control, either directly or through
investment funds.
To mitigate the credit risk, during the operation analysis
phase, it should be searched evidence of the establishment of
partnerships among beneficiaries and their clients in the form
of long-term contracts or shareholding participation in
beneficiary's capital, by means of investment funds.
The Bank's participation may be either direct, or indirect (via
financial agents), or mixed. Machines and equipment, tests and
essays, civil works, assembling and installation, software
developed in the Country, consulting, investments in innovation
and expenses with national and international certification will
be eligible to support.
Pro-aeronautica results from the conclusions of a task force
comprising Bank employees, with an aim at identifying
bottlenecks in financings to aeronautic MPMEs operating in
Brazil. The group also relied on external cooperation with
basis on a Memorandum of Understanding signed in 2006 among
BNDES, Embraer, Associacao das Ind£strias Aeroespaciais do
Brasil [Brazilian Association of Aerospace Industries] and
Agencia Nacional de Aviacao Civil [Brazilian Civil Aviation
Agency].
The group, with the participation of the Ministerio do
Desenvolvimento, Industria e Comercio Exterior has mapped
opportunities and challenges for intensification of the
productive chain and is concluding proposals of changes to the
Brazilian tax legislation, so as to make local companies more
competitive.
The aeronautic industry is considered strategic to Brazil, as it
requires high technological intensity and due to the
dissemination of the different technologies employed in its
products in other sectors. Besides this, it offers a high
expanding potential and works with high value added products.
About BNDES
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
BANCO NACIONAL: Grants Financing to Sanitation Project in Recife
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social President
Luciano Coutinho, disclosed Thursday, the conclusion of a
financing operation for the water supply project of Sistema
Produtor Pirapama, in the metropolitan region of Recife, in
Pernambuco, with the signature of a contractual amendment. The
total investment is BRL437.7 million, BRL 204.8 million of which
financed by BNDES. Out of the amount financed by the Bank,
BRL124.8 million are already contracted and the remainder BRL 80
million will be contracted soon.
Besides BNDES credit, the project will rely with funds from the
Ministry of Integration and from the government of the State of
Pernambuco.
Sistema Produtor Pirapama project, selected within the scope of
Programa de Aceleracao do Crescimento [Growth-Acceleration
Program], is considered a priority for the social and economic
development of the Country. Projeto Pirapama will beneficiate
all the population in the metropolitan region of Recife,
increasing the offering of treated water to around 3.6 million
inhabitants. The deadline forecast for implementation is 36
months.
After completion of the works, the offering of water in the
region shall be added of 5.13 cubic meters per second, thus
contributing to solve the currently existing rationing problem.
Sistema Produtor Pirapama involves the implementation, since
Pirapama dam (already concluded and located at Cabo de Santo
Agostinho, 20 km far from Recife), of the following works:
treated water duct and sub-ducts, pumping station, water
treatment station, construction of Jordao reservoir and
improvements to Anel de Muribeca and to Grandes Aneis, in
Recife.
About BNDES
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
BANCO NACIONAL: Providing BRL205-Million Financing for Pirapama
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it will grant BRL205 million to fund Recife's
waterworks project, Pirapama.
Business News Americas relates that the contract was signed in
2004. However, it underwent revisions due to the state's delay
in executing the project. The project was selected for funding
under the federal government's growth acceleration program. The
project was deemed necessary due to the low rates of water
services in Recife.
According to BNamericas, the Pirapama project will require
BRL438-million investments. The Pernambuco state government and
integration ministry will provide BRL233 million.
Of the BRL205 million that Banco Nacional will provide, BRL125-
million works have been contracted out, BNamericas states.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
BANCO NACIONAL: Seeking More Funds from Multilateral Groups
-----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social head
Luciano Coutinho told Brazilian news service Agencia Estado that
it will seek more money from multilateral organizations under
changes to its funding structure.
Business News Americas relates that Mr. Coutinho said the Inter-
American Development Bank provides Banco Nacional with US$1
billion per year. That funding needs to be maintained or
raised.
Agencia Estado notes that the European Investment Bank offered
Banco Nacional a US$400-million credit line.
Mr. Coutinho expects that Banco Nacional would receive a higher
amount, according to Agencia Estado.
Banco Nacional will conduct another debt issue on the Brazilian
market in the first six months of 2008, BNamericas states,
citing Mr. Coutinho.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
DRESSER-RAND GROUP: Earns US$26.2 Million in Qtr. Ended June 30
---------------------------------------------------------------
Dresser-Rand Group Inc. reported net income of US$26.2 million
for the second quarter ended June 30, 2007. This compares to a
net income of US$10.7 million for the second quarter 2006.
Second quarter 2007 income included a provision for litigation
and related interest of US$2.6 million after-tax and a charge of
US$1.5 million after-tax related to a change in an accounting
estimate for workers' compensation.
Total revenues for the second quarter 2007 of US$441.2 million
increased US$17.2 million or 4.0% compared to US$424.0 million
for the second quarter 2006. Operating income for the second
quarter 2007 was US$50.1 million. This compares to operating
income of US$27.2 million for the second quarter 2006, which
included US$16.8 million for stock-based compensation expense
for exit units. Second quarter 2007 operating income increased
from the year ago quarter due to higher pricing and productivity
improvements.
Vincent R. Volpe, Jr., president and chief executive officer of
Dresser-Rand, said, "The improvements in our second quarter 2007
results over last year were somewhat tempered by the litigation
provision and a change in accounting estimate. The impact of
these two items was approximately US$0.05 per diluted share.
Additionally, changes in procurement processes and a delay in
the budget appropriations by certain of our national oil company
clients resulted in lower than expected aftermarket bookings and
revenues for the period."
Bookings for the second quarter 2007 were US$659.2 million,
which was US$225.1 million or 52.0% higher than the second
quarter 2006.
The backlog at the end of June 2007 was a record US$1.61 billion
or 59.0% higher than the backlog at the end of June 2006 of
US$1.01 billion.
At June 30, 2007, the company's consolidated balance sheet
showed US$1.77 billion in total liabilities, US$1.07 bilion in
total liabilities, and US$697.1 million in total stockholders'
equity.
Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2007, are available
for free at http://researcharchives.com/t/s?23a4
Liquidity and Capital Resources
As of June 30, 2007, cash and cash equivalents totaled
US$160.8 million and borrowing availability under the US$350.0
million revolving credit portion of the company's senior credit
facility was US$147.5 million, as US$202.5 million was used for
outstanding letters of credit.
In first six months of 2007, cash provided by operating
activities was US$136.2 million, which compared to US$6.9
million for the corresponding period in 2006. The increase of
US$129.3 million in net cash provided by operating activities
was principally from changes in working capital. In the first
six months of 2007, capital expenditures totaled US$8.6 million
and the company prepaid US$110.1 million of its outstanding
indebtedness under its senior secured credit facility. As of
June 30, 2007, total debt was US$396.9 million and total debt
net of cash and cash equivalents was approximately US$236.1
million.
Litigation Provision
In the second quarter, the company and Maersk Oil UK Limited
reached a full and final settlement resulting in an additional
total charge of approximately US$4.2 million (US$2.6 million
after-tax) for damages, interest and claimant's costs. The
company had previously reported that it planned to dispute the
amount of costs claimed by Maersk, but on further review of the
facts and circumstances, it decided to settle the matter. The
litigation with Maersk Oil UK Limited resulted from alleged
defects in compressors manufactured at a Dresser-Rand facility
that discontinued producing compressors in December 1998.
Change in Accounting Estimate
The company recorded a pre-tax charge of US$2.3 million
(US$1.5 million after-tax) for a change in accounting estimate
related to accrued liabilities for workers' compensation. The
charge for workers' compensation resulted from payment
information recently provided to the company by Ingersoll Rand,
its former parent company.
Outlook
Demand for rotating equipment and aftermarket parts and services
continues to be strong but aftermarket bookings and revenues
continue to be adversely, but temporarily, impacted by changes
in the procurement process approval cycle and a delay in the
budget appropriations for certain of the company's national oil
company customers. The backlog of orders has continued to
increase to record levels. At June 30, 2007, 68.0% of the
backlog of US$1.61 billion is scheduled to ship in 2008 and
2009.
The company continues to believe that its 2007 operating income
will be in the range of US$250.0 to US$270.0 million and its
third quarter 2007 operating income will be in the range of
25.0% to 27.0% of the total year.
About Dresser-Rand Group
Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries. It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 7, 2007, Standard & Poor's Ratings Services assigned its
bank loan and recovery ratings to the US$500 million senior
secured revolving credit facility due 2012 of Dresser-Rand Group
Inc. (BB-/Stable/--)
FIDELITY NAT'L: Moody's Confirms Ba1 Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has confirmed the Ba1 corporate family
rating for Fidelity National Information Services, concluding a
review for possible downgrade initiated in June 2007. At the
same time, Moody's has assigned a Ba1 rating to the company's
US$900 million first lien senior secured revolving credit
facility, US$2.1 billion first lien senior secured term loan A,
and US$1.6 billion first lien senior secured term loan B. In
addition, Moody's upgraded Fidelity's notes rating (Certegy
notes due September 2008) to Ba1 from Ba2 as the notes will
become equally and ratably secured upon issuance of the US$1.6
billion term loan. Concurrently, Moody's downgraded the
company's speculative grade liquidity rating to SGL-2 from
SGL-1, due to reduced free cash flow as a result of the
additional debt associated with the current transaction.
Nevertheless, Moody's believes FIS maintains sufficient
liquidity overall. The rating outlook is stable.
The US$1.6 billion first lien senior secured term loan funded
FIS' acquisition of EFD/eFunds Corporation, a leading provider
of electronic funds transfer and prepaid card processing
services, an all-cash transaction valued at approximately US$1.8
billion. The transaction closed on Sept. 12, 2007. "The eFunds
acquisition provides FIS with service line diversity, expanding
its electronic funds transfer and risk management businesses",
according to John Moore, Vice President/Senior Analyst at
Moody's Investors Service.
FIS' Ba1 corporate family rating reflects the company's leading
market position within the bank and mortgage transaction
processing services markets it serves, its diversity of
financial institution clients, and its substantial size in terms
of pretax income compared to similarly rated peers. At the same
time, the rating is constrained by the company's weak leverage
and coverage metrics, pro forma for the transaction, and
propensity to grow through acquisitions. Pro forma for the
transaction, the company's ratio of debt to EBITDA approximates
over 3.0 while EBITDA less capital expenditures interest
coverage approximates 3.0.
The US$900 million revolver, US$2.1 billion term loan A and
US$1.6 billion term loan B are secured on a first lien basis by
substantially all stock and assets of the company and its
subsidiaries. Upon the issuance of the US$1.6 billion secured
term loan B, the company's existing 4.75% Certegy notes due
September 2008 will remain outstanding and will become equally
and ratably secured. The ratings for the secured credit
facility and the secured Certegy notes reflect both the overall
probability of default of the company, to which Moody's assigns
a probability of default rating of Ba1 and a loss given default
of LGD 3.
The stable rating outlook reflects the company's steady organic
growth in its banking and mortgage processing markets.
Ratings assigned:
-- US$900 million First Lien Senior Secured Revolving Credit
Facility assigned at Ba1 (LGD 3, 48%)
-- US$2.1 billion First Lien Senior Secured Term Loan A
assigned at Ba1 (LGD 3, 48%)
-- US$1.6 billion First Lien Senior Secured Term Loan B
assigned at Ba1 (LGD 3, 48%)
Rating upgraded:
-- US$200 million 4.75% (Certegy) notes due September 2008
upgraded to Ba1 (LGD 3, 48%) from Ba2 (LGD6, 95%)
Rating confirmed:
-- Corporate Family Rating confirmed at Ba1
-- Probability of Default Rating confirmed at Ba1
About Fidelity National
Based in Jacksonville, Florida, Fidelity National Information
Services, Inc. -- http://www.fidelityinfoservices.com/--
provides core processing for financial institutions; card issuer
and transaction processing services; mortgage loan processing
and mortgage related information products; and outsourcing
services to financial institutions, retailers, mortgage lenders
and real estate professionals. FIS has processing and
technology relationships with 35 of the top 50 global banks,
including nine of the top ten. Nearly 50% of all US residential
mortgages are processed using FIS software. FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil.
FLEXTRONICS INT'L: Unit Wants to Buy Arima's Notebook Operations
----------------------------------------------------------------
Flextronics International Ltd.'s unit, Flextronics Computing
Sales and Marketing (L) Ltd., and Arima Computer Corporation
signed a binding Letter of Intent where Arima will sell its
notebook computer and server related business, operation and
assets owned by Arima and Arima Computer JiangSu, Arima's
subsidiary to Flextronics.
The assets intended for sale include Arima's facilities at Wu-
Jiang, as well as the entire stockholding of Arima's wholly
owned subsidiaries Arima Computer (U.K.) Ltd., Arima Computer
(Texas) Corporation , Arima Computer (California) Corporation
and Arima Computer (Japan) Corporation.
The transaction price is $59.5 million (NT$1,963 million) over
the book value of the disposed assets at closing. As of
June 30, 2007, the book value of the relevant assets were about
US$132 million (NT$4,356 million).
The definitive sale and purchase agreement is expected to be
executed within 45 days. Afterwards, Arima will immediately
call a shareholders meeting to seek approval of the transaction.
Flextronics will apply for the Investment Commission's approval
according to applicable laws. The parties will proceed to close
the deal on a date to be further agreed by both parties after
Flextronics receives the approval from the Investment
Commission.
Arima indicates that the transaction will safeguard all affected
Arima employees' interests. Flextronics intends to offer
positions to substantially all of Arima's employees of the
notebook and server business. Flextronics will also offer
employee benefit and base compensation that are substantially
similar in the aggregate to those provided by Arima. Moreover,
the existing relationships between Arima and suppliers,
customers and banks will remain unchanged. Prior to the closing
of this transaction, Arima will continue to operate its business
in the ordinary course.
About Arima Computer
Headquartered in Taipei, Taiwan, Arima Computer Corp. (TPE:
2381) -- http://www.arima.com.tw/-- designs, manufactures and
distributes notebook computers and peripherals, as well as
related components. The notebook computers are manufactured for
individuals, offices, schools, plants and families. During the
year ended Dec. 31, 2006, the company obtained about 84% and 16%
of its total revenue from notebook computers and related
components, respectively. The company distributes its products
in the domestic market and to overseas markets, including the
rest of Asia, the Americas and Europe. In 2006, about 98% of
the company's total revenue was from overseas markets.
About Flextronics International
Headquartered in Singapore, Flextronics International Ltd.
(NasdaqGS: FLEX) -- http://www.flextronics.com/-- is an
Electronics Manufacturing Services provider focused on
delivering design, engineering and manufacturing services to
automotive, computing, consumer digital, industrial,
infrastructure, medical and mobile OEMs. Flextronics helps
customers design, build, ship, and service electronics products
through a network of facilities in over 30 countries on four
continents.
The company has operations in Brazil and Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2007, Moody's Investors Service assigned a provisional
(P)Ba1 rating to Flextronics International Ltd.'s proposed
US$2.5 billion unsecured term loan that will be used to finance
the cash consideration portion of the pending acquisition of
Solectron Corporation. This provisional rating assumes a
corporate family rating of Ba1.
In addition, the rating for the proposed term loan reflect both
the overall probability of default of the company, to which
Moody's assumes a PDR of Ba1, and a loss given default of LGD 4.
All of the company's ratings remain under review for possible
downgrade pending consummation of the company's merger with
Solectron, which is expected to close in October 2007. It is
likely that if the transaction closes as contemplated, the CFR
will be affirmed at Ba1.
GENERAL MOTORS: Failed Contract Talks Spur UAW Work Stoppage
------------------------------------------------------------
More than 73,000 United Auto Workers union members throughout
the United States went on strike against General Motors Corp.
yesterday after the two failed to agree on a new labor contract.
UAW President Ron Gettelfinger said that UAW members rallied
over job security, economic issues, benefits for active workers
and winning investment in future products.
GM disclosed that it is disappointed in the union's decision to
call a national strike, insisting that bargaining involves
complex, difficult issues that affect the job security of its
U.S. work force and the long-term viability of the company.
However, GM is fully committed to working with the UAW to
develop solutions together to address the competitive challenges
facing the company.
GM related that it will continue focusing its efforts on
reaching an agreement as soon as possible.
Pickets will remain outside GM plants until a contract is
reached, Mr. Gettelfinger said before heading back to the
bargaining table with UAW Vice President Cal Rapson, who directs
the union's GM Department, and the national committee.
"We stand ready 24 hours a day, seven days a week to go back to
the bargaining table," Mr. Gettelfinger, flanked by the UAW GM
National Negotiating Committee.
Mr. Gettelfinger said it was significant that the union gave GM
a nine-day contract extension, the longest in UAW history to
avoid a strike, a drastic step no one on the union side wanted.
"We were pushed into a strike and that's where we are at," Mr.
Gettelfinger added.
In recent years, UAW members have done their part by working
with the company on issues such as the corporate restructuring,
the attrition plan, the Delphi bankruptcy, the 2005 health care
agreement and numerous quality, productivity and health and
safety issues. Workers gave up a 3% general wage increase in
2006 and cost of living allowances.
"We've met and solved all of GM's problems since 2003," Mr.
Gettelfinger added. "We've worked with General Motors on every
issue that came before them. We've done a lot of things to help
that company. There comes a point in time when you have to draw
the line in the sand."
The UAW leader added that the strike had nothing to do with the
much-discussed union-controlled health care trust fund Voluntary
Employee Benefit Association (VEBA) for retirees, which is a
permissible but not mandatory subject of bargaining. Job
security, economics and benefits for active members remain
critical issues for UAW members at GM.
"It's become apparent to us that as much as workers give, they
cannot give enough," Mr. Gettelfinger said. "As much as
executives get, they cannot get enough."
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
GENERAL MOTORS: Union Strike Cues Fitch to Put Ratings on Watch
---------------------------------------------------------------
Following the decision of the United Auto Workers (UAW) union to
go out on strike against General Motors Corp., Fitch Ratings has
placed the Issuer Default Ratings and securities ratings of the
following companies on Rating Watch Negative:
General Motors Corp.
-- IDR 'B';
-- Senior secured 'BB/RR1';
-- Senior unsecured 'B-/RR5'.
American Axle & Manufacturing, Inc.
-- IDR 'BB';
-- Senior unsecured bank facility 'BB';
-- Senior unsecured 'BB'.
American Axle Manufacturing Holdings Inc.
--IDR 'BB'.
ArvinMeritor Inc.
-- IDR 'BB';
-- Senior secured 'BB+';
-- Senior unsecured 'BB-'.
Tenneco, Inc.
-- IDR 'BB-';
-- Senior secured bank facility 'BB+';
-- Senior secured notes 'BB';
-- Subordinated 'B'.
Hayes-Lemmerz International, Inc.
-- IDR 'B'.
Hayes Lemmerz Finance - Luxembourg S.A
-- IDR 'B'.
-- Senior secured 'BB/RR1';
-- Senior unsecured 'B-/RR5'.
HLI Operating Company, Inc.
-- IDR 'B'.
The UAW strike has the potential for far-reaching, crippling
repercussions throughout the industry. Although the strike is
expected to be short-lived, due to the potentially devastating
consequences to both sides, the onset of a strike could limit
the ability of both parties to control the subsequent chain of
events.
Negative cash flow at GM will accelerate, due to operating
losses and working capital reductions. The costs of a strike
would also have consequences on GM's restructuring program,
extending the timetable and impairing financial resources
available, which is occurring during an uncertain economic
environment for industry sales. A reduction in cash holdings
could also jeopardize the ability of GM to finance any VEBA
agreement. Fitch estimates that a VEBA agreement would be in
the range of US$30-35 billion, and that GM is unlikely to fund
the VEBA entirely in cash, as remaining liquidity would fall to
uncomfortable levels given economic uncertainties, restructuring
costs, and working capital requirements. The issue of job
security is not easily resolvable, given the high priority
placed on the issue by the UAW and GM. The flexibility to
reduce production and costs in the event of an economic downturn
or weak product performance will be critical to GM's ability to
weather such events. Fitch forecasts that further restructuring
actions will be necessary to achieve viable long-term margins.
In the event that GM and the UAW reach an agreement following a
strike, ratification will be the next hurdle.
The financial and operating stresses of suppliers would be
exacerbated in the event of a strike, although liquidity among
tier-one suppliers remains adequate in the short term. Second-
tier and third-tier suppliers are expected to face more
difficult challenges, with lower levels of liquidity and less
access to capital. Financial distress at this level could
quickly spill over to first-tier suppliers and GM, challenging
any assumptions that a production re-start can be accomplished
smoothly and quickly. The suppliers placed on Rating Watch
Negative contain varying combinations of exposure to GM North
America and limited or negative free cash flow over the short
term. In the event that the strike is settled within a short
time frame, each of the suppliers on Rating Watch Negative is
expected to return to their previously existing rating and
outlook.
Fitch anticipates that if the strike extends beyond a very short
term, further rating actions would follow, and the ratings and
outlook of other OEMs and suppliers could be reviewed.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
GENERAL MOTORS: Moody's Holds Ratings Following UAW Strike
----------------------------------------------------------
Moody's Investors Service is maintaining its current ratings of
General Motors Corporation - B3 Corporate Family, Caa1 senior
unsecured and Ba3 senior secured, and Negative Outlook following
the announcement of a strike against the company by the United
Auto Workers Union. Moody's believes that GM should, within the
context of the current ratings, be able to adequately fund the
cash requirements associated with a US work stoppage
approximating 30 days. The company's ability to cover these
cash requirements should be supported by its favorable liquidity
profile including cash and short-term VEBA balances of
approximately US$33 billion, its US$9 billion in unused
committed credit facilities, and its ability to implement
various cash-preserving operating initiatives.
Despite the maintenance of GM's current ratings, the outlook
remains negative. Moreover, Moody's said that the ratings could
be placed under review for possible downgrade should
circumstances indicate that negotiations are not progressing
toward a constructive resolution or that the strike might extend
beyond 30 days.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM
employs about 280,000 people around the world and manufactures
cars and trucks in 33 countries, including the United Kingdom,
Germany, France, Russia, Brazil and India. In 2006, nearly 9.1
million GM cars and trucks were sold globally under the
following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo,
Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's
OnStar subsidiary is the industry leader in vehicle safety,
security and information services.
MAGNA INT'L: Unit Purchases Manufacturing Assets in Mexico
----------------------------------------------------------
Magna Car Top Systems, an operating unit of Magna International
Inc. has acquired certain manufacturing assets and equipment,
including a leased facility located in Toluca, Mexico. The
facility, now called Magna Car Top Systems de Mexico, S.A. de
C.V., manufactures and assembles convertible tops for several
General Motors vehicles including the Pontiac Solstice, Saturn
Sky and Opel GT.
"The facility expands our manufacturing footprint in North
America and the new operation enhances our current
capabilities," commented Klaus Striegel, president, Magna Car
Top Systems. "The addition of this Mexico facility is part of
Magna Car Top Systems' strategic expansion to be close to key
customer assembly facilities in the region."
The 276,000-square-foot facility, located just 40 miles west of
Mexico City, employs 309 people and its current capabilities
include stamping, machining, coating, cut & sew, welding and
convertible top final assembly.
About Magna Car Top Systems
Magna Car Top Systems is a global leader in the open-air roof
system market and designs, develops and manufactures vehicle
roof systems including retractable hardtops, softtops, panoramic
roof modules, and removable hardtops for OEM's world-wide from
the concept stage through to serial production.
About Magna International
Headquartered in Ontario, Canada, Magna International Inc. (TSX:
MG.A, MG.B; NYSE: MGA) -- http://www.magna.com/-- is a
diversified automotive supplier that designs, develops and
manufactures automotive systems, assemblies, modules and
components, and engineers and assembles complete vehicles, for
sale to original equipment manufacturers of cars and light
trucks in North America, Europe, Asia, South America and Africa.
In South America, it has two operations in Brazil. The
company's capabilities include the design, engineering, testing
and manufacture of automotive interior systems; seating systems;
closure systems; metal body and chassis systems; vision systems;
electronic systems; exterior systems; powertrain systems; roof
systems; well as complete vehicle engineering and assembly. The
company has approximately 83,000 employees in 229 manufacturing
operations and 62 product development and engineering centers in
23 countries.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2007, Magna International Inc. will restructure its
operations through plant closings and consolidations in order to
remain profitable, Tony Van Alphen at the Toronto Star reports.
NRG ENERGY: Files Application to Build Two Nuclear Units
--------------------------------------------------------
NRG Energy Inc. and South Texas Project Nuclear Operating
Company will file a Combined Construction and Operating License
Application with the Nuclear Regulatory Commission to build and
operate two new nuclear units at the South Texas Project nuclear
power station site. The total rated capacity of the new units,
STP 3 and 4, will equal or exceed 2,700 megawatts -- enough to
power more than two million homes. NRG expects to bring the
units on line in 2014 and 2015 in order to provide reliable and
affordable power to fuel Texas' continued growth and economic
prosperity.
"It is a new day for energy in America. Advanced technology
nuclear power plants like STP 3 and 4, generating a vast amount
of electricity cleanly, safely and reliably, will make an
enormous contribution toward the greater energy security of the
United States," said David Crane, NRG's President and Chief
Executive Officer. "But equally, this announcement heralds a
new day for the environment. Advanced nuclear technology is the
only currently viable large-scale alternative to traditional
coal-fueled generation to produce none of the traditional air
emissions-and most importantly in this age of climate change-no
carbon dioxide or other greenhouse gases."
This license submittal continues NRG's leadership role in moving
U.S. electrical generation to new, cost-effective baseload power
that does not contribute to global climate change and is the
first license application submitted to the NRC for a new nuclear
plant in 29 years.
STP 3 and 4 are being developed as part of the Company's
Repowering NRG initiative to build approximately 10,000 MW of
new, highly efficient, clean power generation facilities that
leverage NRG's existing facilities' infrastructure, support a
diverse fuel mix to reduce foreign energy dependence, and
implement technologies that reduce NRG's carbon intensity.
The South Texas Project Nuclear Operating Company, which
currently operates units 1 and 2, will operate the new units as
well.
The U.S. Department of Energy projects that the United States
will need 40 percent more electricity by 2030. According to the
Electric Reliability Council of Texas, energy needs in Texas
alone will grow by 10,000 MWs by 2014. STP 3 and 4 will help
meet this growing demand without increasing U.S. dependence on
foreign sources of oil. These new units also will help reduce
demands on domestic supplies of natural gas, on which Texas
currently depends on for most of its power generation
requirements.
"This is an historic event for the future of nuclear power in
America. Around the world, consumers are benefiting from clean,
efficient nuclear power. Finally, as a result of years of hard
work, our nation is now on the verge of taking greater advantage
of this technology. I'm excited to see an investor-owned
company submit the first combined operating license application
in nearly 30 years, and I hope it is the first of many to come,"
said United States Senator Pete Domenici (R-NM), who serves as
ranking member of the Senate Energy and Natural Resources
Committee.
"Nuclear power is an essential component of any comprehensive
national energy plan," said United States Senator Mary Landrieu.
"It has been 20 years since we have built a nuclear power plant,
and it is long past time that we build a new one. According to
the Nuclear Energy Institute, 35 new nuclear power plants are
needed in the next 40 years to keep pace with our escalating
energy demand. A new power plant in Texas will prove to help
combat the impact of global climate change and allow America to
continue on a path toward energy independence."
The STP site in Matagorda County, Texas is considered to be one
of the best sites in America for nuclear expansion. The 12,220-
acre site and 7,000-acre cooling reservoir were originally
designed for four units. The two new units will be built
adjacent to the currently operating STP units 1 and 2.
"We are very pleased to be a part of this milestone application
for the first new nuclear plant in decades," said Judge Nate
McDonald, Matagorda County Judge. "The South Texas Project has
an outstanding record of safety and excellent performance and is
a good neighbor in our community. We welcome this expansion to
Matagorda County and look forward to helping bring additional
clean, safe nuclear power to Texas."
NRG has chosen Advanced Boiling Water Reactor -- ABWR --
technology for the new units to be built at the STP site. The
technology reflects 50 years of continued evolution of boiling
water reactor -- BWR -- technology and combines the best
features of the worldwide BWR fleet with advanced technology
enhancements that improve safety, performance and longevity.
ABWR technology is certified by the NRC and has an impressive
construction and operational track record. This includes
setting world records for construction time and bringing the
units in on budget.
Four ABWR units have been successfully commissioned in Japan,
with another three units under construction in Taiwan and Japan.
The Tokyo Electric Power Company, Inc., has more than a decade
of experience in ABWR operations and has provided their
expertise to supporting STP's planned two-unit expansion.
"We have chosen NRC-certified, operationally proven technology
and the best possible, most experienced team to build STP 3 and
4," added Mr. Crane. "We expect to build these facilities on
time, on budget and to the exacting standards that will
guarantee excellence in safe and reliable nuclear operations."
In June 2006, NRG filed its letter of intent to submit an
application with the Nuclear Regulatory Commission to construct
STP units 3 and 4. STPNOC, together with a contracting team
successfully led by GE-Hitachi Nuclear Energy and Bechtel, has
prepared the COLA for STP units 3 and 4 in just over one year
for submittal to the NRC.
With the COLA submitted, the NRC begins an estimated two-month
acceptance review process. It is then anticipated that the NRC
could take up to 42 months for its detailed review process
including staff discovery, site visits, company responses,
hearings and NRC Environmental Impact Statements. Assuming this
schedule, NRG would hope to receive its license approval and
begin construction in 2010. With this time frame, STP unit 3
should come on line in 2014 and unit 4 in 2015.
The multibillion dollar investment is expected to generate more
than US$9 billion of economic benefit principally in the South
Texas area, require 4,000 to 6,000 construction workers, and
result in about 800 new operating staff positions at the plant.
About South Texas Project
STP's reactors supply power to Houston, Austin, San Antonio,
Corpus Christi and surrounding areas. The plant is managed by
the STP Nuclear Operating Company and units 1 and 2 are owned by
NRG Energy (44 percent), CPS Energy (40 percent) and Austin
Energy (16 percent). STP's twin reactors produce nearly 2,700
megawatts of electricity, enough to power more than 2.1 million
homes.
About NRG
A Fortune 500 company, NRG Energy, Inc. (NYSE: NRG) --
http://www.nrgenergy.com/-- owns and operates a diverse
portfolio of powergenerating facilities, primarily in Texas and
the Northeast, South Central and West regions of the United
States. Its operations include baseload, intermediate,
peaking, and cogeneration and thermal energy production
facilities. NRG also has ownership interests in generating
facilities in Australia, Germany and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 9, 2007, Moody's Investors Service affirmed the ratings of
NRG Energy, Inc., including its Corporate Family Rating at Ba3,
the Probability of Default Rating at Ba3, the senior unsecured
debt at B1, and its Speculative Grade Liquidity Rating of SGL-2,
following the company's announcement to return more capital to
shareholders in the form of existing and future share
repurchases and to begin paying a common dividend during the
first quarter of 2008.
Standard & Poor's Ratings Services raised its rating on NRG
Energy Inc.'s USUS$4.7 billion unsecured bonds to 'B' from 'B-'
and assigned its 'B-' rating to the proposed USUS$1 billion
delayed-draw term loan B at NRG Holdings Inc., a newly created
holding company that would own 100% of NRG's equity.
PERDIGAO SA: Moody's Puts Preliminary Ba1 Corp. Family Rating
-------------------------------------------------------------
Moody's Investors Service has assigned a first-time Ba1 global
local currency corporate family rating to Perdigao S.A. The
rating outlook is stable.
"The Ba1 rating is supported by Perdigao's large scale compared
to other food processors in Brazil, its diversified export
markets and its strong presence in the branded domestic retail
segment, which have made the company one of the largest food
processors in Latin America," said Moody's AVP-Analyst Soummo
Mukherjee.
In issuing the rating, Moody's also considered the company's
demonstrated ability to increase its processed food sales and
decrease its exposure to fresh products with commodity pricing.
Other factors supporting the rating include Perdigao's low cost
structure, nationwide cold-storage distribution network,
promising growth prospects and high standards of corporate
governance.
The Ba1 is primarily constrained by Perdigao's revenue and
earnings exposure to commodity price movements, the
susceptibility of its sales and cash flow to export market
closures or disruptions due to animal disease and the challenges
associated with successfully implementing its growth strategy.
"In terms of credit metrics, the rating is constrained by a
relatively low level of interest coverage compared to similarly
rated peers in the same rating category," said Mr. Mukherjee.
A Corporate Family Rating is an opinion on the expected loss
associated with the debt obligations of a group of companies
assuming that it had one single class of debt and is a single
consolidated legal entity. Specific debt instruments for the
same corporate family may be rated differently, depending on
their seniority and guarantors, as compared to other debt
instruments issued by the group.
With net revenues of approximately BRL6 billion (US$2.9 billion)
in the last twelve months ended June 30, 2007, Perdigao is
smaller than its international rated peers Tyson (Ba1/neg),
Smithfield (Ba2/neg) and Pilgrim's Pride (Ba3/sta) and domestic
peer, Sadia (Ba2/pos). However, the company enjoys strong
positions in Brazil's domestic market, which represented 57.5%
of sales in the 1st half of 2007, and is only slightly behind
leader Sadia in most of its product segments (specialty and
frozen meats, pastas and pizzas) and third in the dairy segment,
behind Nestle (Aa1/neg) and Groupe Danone (A1/on review for
possible downgrade). With 58% of its revenues derived from
packaged and other non-commodity products, Perdigao sells more
processed foods as a percentage of revenues than Sadia and
international peers Tyson, Smithfield and Pilgrim's Pride.
Moody's has a positive view towards the company's strategy of
using its existing nationwide refrigerated distribution network
to enter new product segments, and thus reduce the company's
exposure to the more volatile and commoditized fresh poultry and
pork divisions. This strategy was behind the company's recent
expansion to new segments, such as margarines, beef and dairy
products, through strategic alliances and acquisitions. To fund
this entrance into new product segments through acquisitions and
its organic capacity expansion plans, Perdigao issued BRL800
million in equity in October, 2006. While Moody's recognizes
that Perdigao's strategy should help it to diversify business
risk and create a more sustainable and stable platform for
growth in the medium to long-term, such investments in new
businesses and additional capacity are likely to result in
negative free cash flow and constrain Perdigao's margins in the
near-term.
Perdigao entered the dairy segment in May, 2006 through the
acquisition of 51% of a leading dairy-based and dairy processed
products company Batavia S.A., for a total consideration of
approximately BRL115 million. Batavia has a strong regional
market position and well-known brands, but its businesses are
primarily concentrated in the South and Southwest regions of
Brazil. Going forward, Moody's believes Batavia should benefit
from Perdigao's nationwide refrigerated distribution network and
greater bargaining power with retailers. Moody's notes,
however, that Batavia's margins are lower than Perdigao's and
should constrain the company's overall margins in the medium-
term. During the first half of 2007, Batavia products
represented 11.6% of Perdigao's sales, but only 3.6% of its
EBITDA.
Perdigao also diversified into the beef segment in 2007 by
acquiring a beef plant in the state of Mato Grosso for
approximately BRL100 million. The plant has daily slaughter
capacity of 500 heads, which Perdigao plans to expand to 2,000
heads by the end of 2008 and achieve a capacity of 6,000 heads
by the end of 2011. Perdigao's entry into the beef segment is
aimed primarily at fresh beef exports, so it will not help to
improve the company's revenue contribution from processed
products. However, this move is in line with the company's
business diversification objectives since beef in Brazil, unlike
pork and poultry, does not experience volatile feed costs
(mainly corn and soy) because cattle in Brazil are mostly grass-
fed. Brazilian beef benefits from an overall low cost structure
helping margins for this sector, and has experienced strong
growth led by exports to new markets over the past few years.
Perdigao should benefit from a continuation of this growth
trend, although we expect such growth rates to decline going
forward.
Perdigao, similar to other companies in the animal protein
industry, is exposed to food safety, animal disease, and weather
related risks, as well as regulatory and environmental oversight
and changing international trade regimes. With close to 40% of
revenues derived from exports of fresh meats (pork, poultry and
beef), Moody's notes that Perdigao remains vulnerable to the
risk of animal disease, which could significantly disrupt its
export business and negatively impact earnings and cash flow.
In 2006, the global spread of high pathogenic avian influenza
significantly impacted the poultry industry as consumer demand
for fresh poultry fell sharply while there was an oversupply of
poultry, causing prices to fall abruptly. This led Perdigao's
and other poultry processor's operating margins to fall sharply
in 2006.
Perdigao, 44.6% owned by several Brazilian pension funds, is a
public company with shares listed on the NYSE and Bovespa. It
joined Bovespa's Novo Mercado in April 2006, the highest level
of corporate governance in Brazil, and it adopted the Sarbanes-
Oxley corporate governance standards in 2005 to support the
listing of its shares on the NYSE.
Moody's regards Perdigao as having a good level of transparency
and financial disclosure standards, as demonstrated by its
regular publication of quarterly financials with detailed cash
flow statements. Perdigao also has a board of directors
comprised of seven members, with three independent members; a
board of twelve executive officers elected by the board of
directors; a permanent and independent fiscal committee composed
of three members; and advisory committees to the board of
directors, including ethics and governance, strategy and
finance, compensation and executive development and audit
committees.
Similar to most other Brazilian companies, Perdigao does not
have committed stand-by credit facilities, but rather uses cash
and marketable securities to address its working capital needs
and upcoming debt maturities. As of the end of June 2007,
Perdigao's total short-term debt amounted to BRL619 million,
while cash and liquid marketable securities, invested in
certificates of bank deposits with same-day availability,
amounted to BRL859 million which covered short-term debt by
139%. However, approximately 50% of Perdigao's short-term debt
is related to short-term pre-export loans and rural credit loans
that are both easily renewed for export and agriculturally
oriented companies such as Perdigao. Also, with more than 40%
of its sales derived from exports, Moody's believes that
Perdigao will continue to have access to pre-export facilities
that can be easily used as an additional source of funds, if
necessary. Therefore, Moody's regards Perdigao's debt maturity
schedule as comfortable for the next few years, with the next
peak in maturities in 2010, when BRL350 million in long term
debt comes due. Moody's expects that the company will maintain
a minimum of BRL600 million in cash and marketable securities on
its balance sheet at all times, as a liquidity cushion for
working capital needs. Moody's notes, however, that the high
levels of investments as part of its growth plans, are expected
to cause Perdigao's free cash flow to remain negative for the
next two to three years.
The stable outlook reflects Moody's expectation that Perdigao
will continue to report healthy operating margins and strong
cash-flow metrics over the near-term while prudently managing
its investment program so that Debt/EBITDA (on a last twelve-
months basis) remains below 2.5 times. Also, the stable outlook
incorporates Moody's belief that Perdigao will maintain moderate
dividend payouts and adequate liquidity.
Given Perdigao's still significant vulnerability to volatile
commodity prices and disruptions in its export markets, an
upgrade is unlikely until its business diversification strategy
has resulted in demonstrably more stable and predictable
margins, cash flow and debt protection measures.
Quantitatively, an upgrade would require the company's main
commodity input costs (corn and soy) to represent less than 15%
of COGS, a track record of Debt/EBITDA below 2.5 times and
three-year average EBITA/Interest above 4.5 times on a
sustainable basis (all incorporating Moody's standard analytic
adjustments).
Perdigao's rating and outlook could come under downward pressure
if the company's operating performance experiences another tough
year similar to 2006, leading EBITDA margin to drop below 10%.
Quantitatively, downward rating pressure would also result if
Perdigao's Debt/EBITDA were to increase to above 3.5 times or
EBITA/Interest was to fall below 2.0 times (both ratios on a
last twelve-month basis and according to Moody's standard
adjustments and definitions).
Headquartered in Sao Paulo, Brazil, Perdigao S.A. is one of the
largest food processors in Brazil, with a focus on poultry,
pork, beef, milk and processed products including dairy. With
revenues of BRL6 billion for the last twelve months eding in
June 30th, 2007, Perdigao is one of the leaders in the domestic
market and exports 42% of its sales to over 100 countries and
850 customers around the world.
PETROLEO BRASILEIRO: Inks Oil Refinery Pact with PDVSA
------------------------------------------------------
State-owned oil firms Petroleo Brasileiro S.A. and Petroleos de
Venezuela S.A. have reached an agreement for the creation of two
joint ventures.
The Associated Press reports that under the two joint ventures,
Petroleos de Venezuela will operate Carabobo I, an extra-heavy
oil field in Venezuela's Orinoco Basin. It will also provide
60% of the capital to the project, while the rest will be
provided by Petroleo Brasileiro.
The second joint venture involves the oil refinery in the
Brazilian state of Pernambuco. Funding for the refinery will be
divided between the two firms, of which 60% will come from
Petroleo Brasileiro, and the rest from its Venezuelan
counterpart, the AP adds.
As previously reported, initial works for the Pernambuco
refinery were started despite the absence of a formal agreement
between the two firms. The US$4.5 billion refinery is expected
to produce 200,000 barrels of crude per day.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
About Petroleo Brasileiro
Brazilian Petroleum Corp. (Petroleo Brasileiro S.A. --
Petrobras), together with its subsidiaries, engages in the
exploration, exploitation, and production of oil from reservoir
wells, shale, and other rocks in Brazil. Petroleo Brasileiro
was founded in 1953 and is based in Rio de Janeiro,
Brazil.
* * *
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
===========================
4C ASSOCIATES: Will Hold Final Shareholders Meeting Tomorrow
------------------------------------------------------------
4C Associates - Grand Cayman will hold its final shareholders
meeting on Sept. 27, 2007, at 11:00 a.m., at the office of the
company.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) authorizing the liquidator to retain the records
of the company for a period of six 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:
Q&H Nominees Ltd.
Attention: Susan Bjuroe
P.O. Box 1348
George Town, Grand Cayman KY1-1108
Cayman Islands
Telephone: 949 4123
Fax: 949 4647
BANK OF INDIA: Issues Perpetual Debt Instruments Bond Series I
--------------------------------------------------------------
The Bank of India has issued innovative perpetual debt
instrument bond series I. According to a filing with the Bombay
Stock Exchange, the details of private placement are:
Amount: INR200 crore with a green shoe option of INR200 crore
aggregating INR400 crore
Issue Opening Date: July 16, 2007
Issue Closing Date: July 17, 2007
Deemed date of Allotment: July 27, 2007
Face Value per Bond: INR10,00,000 each
Coupon Rate: 10.55% p.a. up to 10 years and 11.05% p.a. after
10 years (if call option not exercised)
Interest Payment Date: 1st April every year
Tenure: Perpetual
Put Option: NIL
Call Option: After 10 years
The bonds are listed on the Wholesale debt market segment of
National Stock Exchange of India Ltd.
Headquartered in Mumbai, India, Bank of India --
http://www.bankofindia.com-- 2628 branches in India spread over
all states/ union territories, including 93 specialized
branches. The bank provides a range of financial products and
services, including numerous credit schemes, deposit schemes,
cash management services, credit/debit cards, deposit vaults and
corporate bonds. It also extends finance to small and medium
enterprises and small-scale industries. It provides a variety of
loans, such as mortgage loans, educational loans, auto finance
loans, holiday loans, personal loans and home loans. The bank
offers Internet banking services for both the retail and
corporate clients.
The bank operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.
* * *
Standard & Poor's Ratings Services assigned on March 26, 2007,
its 'BB' issue rating to the bank's Hybrid Tier I notes to be
issued by India's Bank of India (BOI; BBB-/Stable/A-3), acting
through its Jersey branch. These notes are being issued under
the bank's US$1 billion medium-term notes program.
BRAZILIAN EQUITY: Proofs of Claim Must be Filed by Oct. 18
----------------------------------------------------------
Brazilian Equity Investments III Ltd.'s creditors are given
until Oct. 18, 2007, to prove their claims to Emile Small and
Richard Gordon, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Brazilian Equity's shareholders agreed on Aug. 29, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Emile Small
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
CAYMAN CLEARING: Sets Final Shareholders Meeting for Tomorrow
-------------------------------------------------------------
Cayman Clearing Ltd. will hold its final shareholders meeting on
Sept. 27, 2007, at:
Caledonian House, 69 Dr. Roy's Drive
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Janeen Aljadir
Caledonian Trust (Cayman) Limited
Caledonian House
P.O. Box 1043
Grand Caymanm KY1-1102
Cayman Islands
HEDGEFORUM PAULSON: Proofs of Claim Filing Ends on Oct. 18
----------------------------------------------------------
Hedgeforum Paulson Advantage Ltd.'s creditors are given until
Oct. 18, 2007, to prove their claims to Paola Lazzarotto and
Richard Gordon, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Hedgeforum Paulson's shareholders agreed on Aug. 29, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
HEDGEFORUM VEGA: Proofs of Claim Must be Filed by Oct. 18
---------------------------------------------------------
Hedgeforum Vega Select Ltd.'s creditors are given until
Oct. 18, 2007, to prove their claims to Paola Lazzarotto and
Richard Gordon, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Hedgeforum Vega's shareholders agreed on Aug. 28, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Paola Lazzarotto
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
J-CASHING CORP: Proofs of Claim Filing Is Until Oct. 18
-------------------------------------------------------
J-Cashing Corp.'s creditors are given until Oct. 18, 2007, to
prove their claims to Jan Neveril and Richard Gordon, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
J-Cashing Corp.'s shareholders agreed on Sept. 6, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Giles Kerley
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
K CAPITAL: Will Hold Final Shareholders Meeting Today
-----------------------------------------------------
K Capital Credit Default Swap Fund Ltd. will hold its final
shareholders meeting on Sept. 26, 2007, at 10:45 a.m., at:
Queensgate House
South Church Street, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) authorizing the liquidator to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Ogier
Attention: Ramanan Navakadcham
Tel: (345) 949 9876
Fax: (345) 949 1986
MIZUHO PREFERRED: Proofs of Claim Filing Ends on Oct. 18
--------------------------------------------------------
Mizuho Preferred Capital (Cayman) 2 Ltd.'s creditors are given
until Oct. 18, 2007, to prove their claims to Martin Couch and
Richard Gordon, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Mizuho Preferred's shareholders agreed on Aug. 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:
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MULTI EXPOSURE: Proofs of Claim Filing Deadline Is Oct. 18
----------------------------------------------------------
Multi Exposure Transfer Co. Ltd.'s creditors are given until
Oct. 18, 2007, to prove their claims to Jan Neveril and Richard
Gordon, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Multi Exposure's shareholders agreed on July. 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:
Jan Neveril
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
NZB PRODUCTS: Sets Final Shareholders Meeting for Tomorrow
----------------------------------------------------------
NZB Products (CI) Ltd. will hold its final shareholders meeting
on Sept. 27, 2007, at 10:00 a.m., at:
Fourth Floor, One Capital Place
P.O. Box 847,
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Trident Directors (Cayman) Ltd.
Attention: Kimbert Solomon
P.O. Box 847
George Town, Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 0880
Fax: (345) 949 0881
OFFCO LIMITED: Proofs of Claim Filing Is Until Oct. 18
------------------------------------------------------
Offco Ltd.'s creditors are given until Oct. 18, 2007, to prove
their claims to Jan Neveril and Richard Gordon, the company's
liquidators, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Offco Ltd.'s shareholders agreed on Aug. 29, 2007, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Richard Gordon
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
PRINCIPAL PROTECTED V: Proofs of Claim Must be Filed by Oct. 18
---------------------------------------------------------------
Principal Protected Pretsl V Ltd.'s creditors are given until
Oct. 18, 2007, to prove their claims to Carissa McLaughlin and
Emile Small, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Principal Protected's shareholders agreed on Sept. 5, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Emile Small
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
PRINCIPAL PROTECTED VII: Proofs of Claim Filing Ends Oct. 18
------------------------------------------------------------
Principal Protected Pretsl VII Ltd.'s creditors are given until
Oct. 18, 2007, to prove their claims to Carrie Bunton and Emile
Small, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Principal Protected's shareholders agreed on Sept. 5, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Emile Small
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
SCOUT CAPITAL: Will Hold Final Shareholders Meeting Today
---------------------------------------------------------
Scout Capital Fund II Ltd. will hold its final shareholders
meeting on Sept. 26, 2007, at 10:00 a.m., at:
Queensgate House
South Church Street, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) authorizing the liquidator to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
Ogier
Attention: Ramanan Navakadcham
Tel: (345) 949 9876
Fax: (345) 949 1986
SET CO: Proofs of Claim Filing Deadline Is Oct. 18
--------------------------------------------------
Set Co. Ltd.'s creditors are given until Oct. 18, 2007, to prove
their claims to Jan Neveril and Richard Gordon, the company's
liquidators, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Set Co.'s shareholders agreed on July 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:
Jan Neveril
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
SPECIAL K (EURO): Sets Final Shareholders Meeting for Today
-----------------------------------------------------------
Special K Capital (Euro) Ltd. will hold its final shareholders
meeting on Sept. 26, 2007, at 10:15 a.m., at:
Queensgate House
South Church Street, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) authorizing the liquidator to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
Ogier
Attention: Ramanan Navakadcham
Tel: (345) 949 9876
Fax: (345) 949 1986
SPECIAL K (U.S.): Will Hold Final Shareholders Meeting Today
------------------------------------------------------------
Special K Capital (U.S. dollar) Ltd. will hold its final
shareholders meeting on Sept. 26, 2007, at 10:30 a.m., at:
Queensgate House
South Church Street, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) authorizing the liquidator to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
Ogier
Attention: Ramanan Navakadcham
Tel: (345) 949 9876
Fax: (345) 949 1986
WEST WIND: Will Hold Final Shareholders Meeting Tomorrow
--------------------------------------------------------
West Wind Holdings Ltd. will hold its final shareholders meeting
on Sept. 27, 2007, at 10:00 a.m., at:
Fourth Floor, Citrus Grove,
P.O. Box 1787
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) authorizing the liquidator to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Stuart Sybersma
Attention: Mervin Solas
Deloitte
P.O. Box 1787
George Town, Grand Cayman
Cayman Islands
Telephone: (345) 949-7500
Fax: (345) 949-8258
=========
C H I L E
=========
AES GENER: Submits Study for US$7.9MM Ventanas-Nogales Line
-----------------------------------------------------------
Chilean generator AES Gener has submitted an environmental stuy
for the US$7.9 million Ventanas-Nogales transmission line,
Business News Americas reports, citing documents filed with
environmental regulator Conama.
In its filing, AES Gener said that the 30.1 km, 2x220kV line
would connect the existing Ventanas substation in central
Chile's region V with the planned Nogales substation.
Bnamericas adds the company's US$317 million, 250MW Nuevas
Ventanas project is due to begin operations in 2009 and would be
fuelled a mixture of coal and petcoke.
AES Gener is the second-largest electricity generation group in
Chile in terms of generating capacity (20% market share) with an
installed capacity of 2,428 megawatts. Gener serves both the
Central Interconnected System or SIC and the Northern
Interconnected System or SING through various subsidiaries and
related companies, including affiliate Guacolda and the
TermoAndes subsidiary. TermoAndes has a generation capacity of
642.8 megawatts, which while located in Argentina serves Chile's
SING via InterAndes transmission line. Gener also participates
in electricity generation in Colombia through Chivor
hydroelectric plant of 1,000 megawatts, and a 25% participation
in Itabo's facilities in the Dominican Republic (432.5
megawatts). Gener is 91.2% owned by AES (IDR rated 'B+' by
Fitch).
* * *
On June 16, 2006, Fitch Ratings upgraded the local and foreign
currency Issuer Default Ratings of AES Gener SA to 'BB+' from
'BB'. Fitch also upgraded Gener's senior unsecured debt rating,
which consists of US$400 million senior notes due 2014, to
'BB+'. Fitch revised Gener's Rating Outlook to Positive from
Stable.
INGRAM MICRO: Teams Up with Best Buy in Business Expansion
----------------------------------------------------------
Fortune 100 market leaders Ingram Micro Inc. and Best Buy Co.,
Inc. has announced the Ingram Micro Services Network as the
premier on-site IT service provider for select customers of Best
Buy For Business in the U.S. The IMSN is a proven IT service
delivery organization with more than ten years of experience in
delivering professional and on-site consultative services to 800
markets throughout North America.
Under the terms of the new alliance, IMSN's highly qualified
solution provider network will team with Best Buy to address the
growing number of complex on-site IT service needs of Best Buy
business customers throughout the U.S., including small to
midsize businesses such as restaurants, retail stores and
schools. The IMSN will work in conjunction with Best Buy's Geek
Squad to provide a full range of technology specializations and
integration expertise.
According to Best Buy For Business and IMSN, the relationship
has hit the ground running, successfully implementing the first
of many nationwide service calls from Best Buy.
"By aligning with Ingram Micro and the IMSN, we are able to more
effectively and efficiently service the complex IT needs of our
larger Best Buy For Business customers, and offer on-site
service and support to areas of the country where we don't have
coverage today," says David Hemler, president, Best Buy For
Business. "Best Buy For Business was designed to bring the best
of Best Buy to business, education and government customers.
That includes offering our customers access to highly skilled
technology consultants and technicians, like those found within
the IMSN, that are trained and certified to implement complex IT
solutions and service deployments and really act as an extension
of their business."
With more than 700 qualified solution providers in the U.S.
alone, the IMSN is more than ready to meet the diverse, on-site
IT service needs of Best Buy's business customers says Justin
Crotty, vice president, Ingram Micro Services Division, North
America. "This is a big win and a ringing endorsement of the
professionalism and world-class, on-site IT services expertise
found within the IMSN, such as POS, networking and server, VoIP,
advanced wireless, security and IP surveillance. This group of
solution providers is second to none, which is why Best Buy has
named the IMSN as the premier on-site IT service provider for
its business customers."
"The IMSN is a very professional IT services organization that
is focused on delivering the highest levels of customer support
and satisfaction," says Bill Jacques, vice president, Networking
Technologies and Integration, Inc., an active member of the
IMSN. "We welcome the opportunity to work with Best Buy, and
look forward to building upon their successes and enabling them
to better service the more complex and strategic IT service
needs of their growing business clientele."
"Teaming with Best Buy brings forward additional business to the
IMSN and will ultimately generate higher-end service
opportunities for our solution provider partners," concludes
Crotty. "It is truly great news for everyone involved."
About Best Buy Co., Inc.
Best Buy Co. Inc. (NYSE: BBY) -- http://www.bbfb.com/--
operates a global portfolio of brands with a commitment to
growth and innovation.
About Ingram Micro Inc.
Headquartered in Santa Ana, California, Ingram Micro Inc. (NYSE:
IM) -- http://www.ingrammicro.com/-- together with its
subsidiaries, distributes information technology products and
supply chain solutions worldwide. Its IT products include
peripherals, networking, software, and systems. The company has
Latin America operations in Brazil, Chile and Mexico.
* * *
Ingram Micro Inc. continues to carry Moody's Ba1 long-term
corporate family and probability-of-default ratings.
TECH DATA: AIS Division Signs Distribution Deal with Clustercorp
----------------------------------------------------------------
Tech Data Corporation's Advanced Infrastructure Solutions
Division has entered into an exclusive distribution agreement
with Clustercorp, a leading provider of software, services and
support for high-performance computing clusters. Clustercorp
software enables users to tie together server hardware to create
more robust computing systems capable of processing intensive
data calculations such as long-term financial projections and
engineering design.
"With Clustercorp, VARs can network multiple industry-standard
servers to deploy HPC clusters that provide end users with
enhanced processing power at a fraction of the cost of
traditional high-end computing solutions," said Tech Data
Director, Marketing, Advanced Infrastructure Solutions, Amy
Belcher. "That's an extremely compelling solution ideal for
VARs supporting organizations with extensive data computation
requirements in both the public and private sectors."
Clustercorp's commercial solutions are built upon Rocks(TM), the
leading open-source cluster-computing platform. Through AIS,
Tech Data will distribute the entire line of Clustercorp
solutions and services, including Rocks+Support, Rocks+MOAB and
Rocks+Rolls. In addition to the successful Rocks platform, VARs
can leverage Clustercorp solutions to deliver an array of value-
added HPC support, management tools and specialized
applications. Rocks+Support, sold as an annual subscription,
enables VARs to deploy Clustercorp solutions and also offer
users comprehensive professional support services. Rocks+Rolls
streamlines software deployment and configuration by
automatically installing drivers and applications across all
servers in a cluster. Rocks+MOAB is a management tool to
schedule and monitor HPC cluster workloads.
"As HPC continues its rapid growth out of the lab and into
commercial environments, the high-performance computing market
offers VARs exciting new opportunities too big to overlook,"
said Tim McIntire, CEO, Clustercorp. "Our partnership with Tech
Data's AIS Division will enable us to engage channel partners
delivering these solutions, representing an exciting new growth
opportunity for Clustercorp."
An HPC cluster leveraging Clustercorp solutions can be built
with as few as four industry-standard servers but is scalable to
thousands of systems. Industries utilizing these solutions
include aerospace and auto design for wind tunnel simulations;
oil and gas for energy exploration modeling; and bio technology
and finance for extensive data extrapolation and projections.
Clustercorp services not only provide access to the technical
resources necessary to support these solutions, but the company
also maintains a network of highly skilled Ph.D. consultants to
assist engineers with specific scientific applications.
Tech Data will provide Clustercorp resellers with sales and
technical resources to assist in solutions development and
software licensing. The distributor also will work closely with
Clustercorp to develop targeted channel programs to recruit VARs
nationwide. To learn more, call (800) 237-8931, ext. 77121, or
the company's Web site.
About Advanced Infrastructure Solutions
AIS combines a high-touch, consultative sales approach with the
distributor's extensive technical expertise and broad product
knowledge to help resellers capitalize on the demand for mid-
market and enterprise-level server, storage and software
solutions. Through partner enablement initiatives and
dedicated, expert resources, the division helps VARs develop a
profitable, strategic approach to selling high-end data centers
utilizing industry-standard solutions.
About Tech Data
Founded in 1974, Tech Data Corporation (NASDAQ GS: TECD) --
http://www.techdata.com/-- distributes IT products, with more
than 90,000 customers in over 100 countries. The company's
business model enables technology solution providers,
manufacturers and publishers to cost-effectively sell to and
support end users ranging from small-to-midsize businesses to
large enterprises. Tech Data is ranked 107th on the FORTUNE
500(R). The company and its subsidiaries operate centers in
Latin America, including Brazil and Chile.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 6, 2007, Fitch Ratings has affirmed Tech Data Corp., as:
-- Issuer Default Rating at 'BB+';
-- Senior unsecured credit facility at 'BB+';
-- 2.75% senior unsecured convertible debentures at 'BB+'.
Fitch said the rating outlook is stable.
===============
C O L O M B I A
===============
ECOPETROL: Six Pension Fund Managers Buy Shares for COP2.6 Tril.
----------------------------------------------------------------
The Colombian presidential Web site posted that state-run oil
firm Ecopetrol has sold shares to six pension fund managers for
COP2.6 trillion.
Business News Americas relates that Ecopetrol launch an initial
public offering for the shares last month. The first two rounds
of the offering IPO are for:
-- current and retired Ecopetrol workers,
-- pension funds,
-- unions, and
-- cooperatives.
According to BNamericas, the rounds were set to end on
Sept. 25, 2007.
The four billion shares Ecopetrol has auctioned accounted for
20% of the firm. They are valued at COP5.8 trillion. About
COP1.2 trillion worth of shares were sold as of Sept. 19, 2007,
BNamericas states.
Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government. The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products. Ecopetrol is Latin America's
fourth-largest integrated-oil concern. Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Fitch Ratings upgraded the foreign currency
Issuer Default Ratings of Ecopetrol to 'BB+' from 'BB'. The
rating action followed the upgrade of The Republic of Colombia's
foreign currency Issuer Default Ratings to 'BB+' from 'BB'.
=============
E C U A D O R
=============
DOLE FOOD: Lettuce in Salad Mix Mostly Came from California
-----------------------------------------------------------
Businessweek.com reports that majority of the lettuce in a salad
mix Dole Food Co. recalled from Canadian and the US stores come
from the Central California region that produced the spinach
involved in a deadly E. coli outbreak in 2006.
According to Businessweek.com, Dole Food recalled the salad bags
in at least nine states after a sample taken from a Canadian
store was found positive for E. coli.
Doel Food officials told Businessweek.com that romaine and green
leaf lettuce from the Salinas Valley made up part of the
company's Hearts Delight mix.
The lettuces were mixed with romaine from Colorado and butter
lettuce from Ohio at a Dole Food processing plant in
Springfield, Ohio, on Sept. 6, 2007. However, no illnesses
linked to the product were reported, Businessweek.com states.
Headquartered in Westlake Village, California, Dole Food
Company, Inc. -- http://www.dole.com/-- is a producer and
marketer of fresh fruit, fresh vegetables and fresh-cut flowers,
and markets a line of packaged foods. The company has four
primary operating segments. The fresh fruit segment produces
and markets fresh fruit to wholesale, retail and institutional
customers worldwide. The fresh vegetables segment contains
operating segments that produce and market commodity vegetables
and ready-to-eat packaged vegetables to wholesale, retail and
institutional customers primarily in North America, Europe and
Asia. The packaged foods segment contains several operating
segments that produce and market packaged foods, including
fruit, juices and snack foods. Dole's fresh-cut! flowers
segment sources, imports and markets fresh-cut flowers, grown
mainly in Colombia and Ecuador, primarily to wholesale florists
and supermarkets in the U.S.
* * *
As reported in the Troubled Company Reporter on Jan. 31, 2007,
Moody's Investors Service downgraded Dole Food Company Inc.'s
corporate family rating to B2 from B1; probability of default
rating to B2 from B1; senior secured bank credit facilities to
Ba3 from Ba2; senior unsecured notes to Caa1 from B3; and
various shelf registrations to (P)Caa1 from (P)B3. Moody's said
the outlook is stable.
On Dec. 11, Standard & Poor's Ratings Services lowered its
ratings on Dole Food Co. Inc. and Dole Holding Co. LLC,
including its corporate credit rating! , to 'B' from 'B+'.
FREEPORT-MCMORAN: Unit to Set Up Smelting & Refining Venture
------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc.'s unit PT Freeport Indonesia
was asked by Papua's Provincial Legislative Council to set up a
local venture to handle the smelting, and refining of waste
products from its mining operations in Papua, The Jakarta Post
reports.
According to the report, Commission Chairman Jan Ayomi said the
opening of a local venture can not only utilize the company's
waste products but also contribute the country's foreign
exchange earnings and create jobs.
The idea for the request to set up the venture emerged after
some members of the council visited PT Smelting in Gresik
recently, the report relates.
The Post adds that Papua's council had also urged PT Freeport
Indonesia to revise its work contract and move its Indonesian
head office from Jakarta to Jayapura, the Papua's provincial
capital.
About Freeport-McMoRan
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
* * *
As reported in the Troubled Company Reporter- Asia Pacific
reported on Jul 16, 2007, that Fitch Ratings upgrades these
ratings of Freeport-McMoRan Copper & Gold Inc.
FCX
-- US$1 billion Secured Bank Revolver to 'BB+' from 'BB';
-- 6.875% secured notes due 2014 to 'BB+' from 'BB';
-- Unsecured notes due 2015 and 2017 to 'BB' from 'BB-';
-- 7% convertible notes due 2011 to 'BB' from 'BB-'.
In addition, Fitch affirms these ratings on FCX:
-- Issuer Default Rating at 'BB';
-- US$500 million PT Freeport Indonesia/FCX Secured Bank
Revolver at 'BBB-';
-- Convertible Preferred Stock at 'B+'.
Fitch also assigns a rating of 'BB+' to FCX's new US$2.45
billion five-year term loan A. Proceeds of the loan were used
to repay the US$2.45 billion remaining under the term loan due
March 2014. The term loan amortizes at 10% per annum with the
remainder due at maturity.
The Rating Outlook remains Positive.
On March 29, 2007, Moody's Investors Service upgraded Freeport-
McMoRan Copper & Gold Inc.'s or Freeport's corporate family
rating to Ba2 from Ba3.
As reported in the Troubled Company Reporter on March 27, 2007,
Standard & Poor's Ratings Services assigned its 'B' preferred
stock rating to the proposed US$2.5 billion US6.75% mandatory
convertible preferred stock offering of Freeport-McMoRan
Copper & Gold Inc.
=====================
E L S A L V A D O R
=====================
EXIDE TECHNOLOGIES: Names Luke Lu as President for Asia Pacific
---------------------------------------------------------------
Exide Technologies has appointed Luke Lu as President - Asia
Pacific, effective Oct. 1. Reporting to President and Chief
Executive Officer Gordon Ulsh, Lu will be responsible for
providing overall leadership and direction for the company's
business in the Asia Pacific region. He will be based in
Shanghai, China, which will become the central headquarters for
the Exide Technologies Asia Pacific region.
Mr. Lu brings a broad range of industry experience to his new
role at Exide. Most recently, he served Johnson Controls in a
variety of capacities including Vice President, Sales and
Marketing - Asia Pacific Battery Group; Acting General Manager
for Chongqing Joint Venture; and Commercial Director, China and
Southeast Asia.
Prior to that, he worked at General Electric Corporation, where
his roles included a position as Greater China Marketing and
Application Development Manager for the company's Toshiba
Silicones division and Pacific Tech-Marketing Manager for GE
Silicones in Waterford, New York. His career also includes
Project Manager responsibilities at Pragmatics, Inc., a leading
provider of software and systems engineering, information
assurance, network operations and management services for both
defense and civilian agencies.
Mr. Lu holds a Ph.D. in Inorganic and Physical Chemistry from
Georgetown University in Washington, D.C. and a Bachelor of
Science in Organic and Physical Chemistry from Nankai
University, Tianjin, P.R. China.
The Exide Asia Pacific business top-line revenues represent both
Exide's Industrial Energy and Transportation businesses. More
than 900 employees across the region support a number of
different operations:
* Transportation manufacturing plants in Elizabeth
(Adelaide), Australia and Gujarat (Ahmedabad), India;
* Industrial Energy battery assembly operations in Padstow
(Sydney), Australia, and Hosur (Bangalore), India;
* a recycling facility in Petone (Wellington), New Zealand;
and
* sales offices and distribution centers in locations
including Japan, China, Hong Kong, Singapore, Malaysia,
Indonesia, Thailand, Philippines, India, Australia, and New
Zealand.
"Luke brings a unique combination of specialized knowledge and
depth of experience to his new, Shanghai-based position," said
Exide President and Chief Executive Officer Gordon Ulsh. "We
anticipate that he will help us in our efforts to capitalize on
profitable growth opportunities in this rapidly developing
geographic market."
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 has operations in 89 countries, including,
Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica,
Ecuador, El Salvador, Guatemala, Panama, Paraguay, Peru, Uruguay
and Venezuela.
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.
* * *
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.
=============
G R E N A D A
=============
DIGICEL GROUP: Launching Next Generation Networking Using WiMax
---------------------------------------------------------------
Digicel's Jamaican unit will launch Next Generation Networking
using a WiMax mobile network, Business News Americas reports.
With the Next Generation Networking, one network transports all
information and services -- voice, data, and all sorts of media
such as video -- by encapsulating these into packets, like it is
on the Internet. The Next Generation Networking is commonly
built around the Internet Protocol, and therefore the term "all-
IP" is also sometimes used to describe the transformation
towards NGN.
A "fully wireless platform is still too new a technology" for
most Jamaican businesses, BNamericas relates, citing Cable &
Wireless Jamaica's business telephony product manager Sandra
Buckland.
By the time Digicel launches this service, Cable & Wireless will
be well established in the market with its Internet protocol PBX
software, Ms. Bucklang told BNamericas.
Digicel Group Limited -- http://www.digicelgroup.com/-- is a
wireless services provider in the Caribbean region. The company
is a newly created Bermuda incorporated company formed by Mr.
Denis O'Brien, who previously owned 78% of the shares of Digicel
Limited on a fully diluted basis. The company started
operations in Jamaica in April 2001 and now offers GSM mobile
services in 22 markets primarily in the Caribbean including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and
Haiti among others.
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- US$1.4 billion senior subordinated notes due 2015
assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings is stable.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Set to Reveal Long-Haul Aircraft Order Winner
--------------------------------------------------------------
British Airways plc is set to announce the winner of its multi-
billion pound long-haul aircraft contract in two weeks,
published reports say.
According to the Daily Telegraph, BA is looking to replace 20
Boeing 747-400s and 14 767s, which have a listed price of US$8
billion (GBP4 billion).
BA has yet to decide on whether to award the contract to Airbus
or Boeing, the Daily Telegraph relates.
However, Jefferies & Co. analyst Howard Rubel told the
Associated Press he believes investors are expecting the airline
to split its order between the two aerospace rivals.
Meanwhile, Willie Walsh, chief executive of British Airways plc,
said there will be no problems in financing the order.
"I wouldn't say it is more difficult because this is secured
finance," Mr. Walsh was quoted by the Daily Telegraph as saying.
"There's reasonable appetite. We are confident about financing
in these markets."
As previously reported in the TCR-Europe on Feb. 23, 2007, BA
has taken the first step towards expanding its long-haul fleet
by ordering four Boeing 777-200 ER aircraft for delivery during
early 2009.
The airline has also taken out options on four Boeing 777-200 ER
aircraft for delivery in 2010.
The airline's competition for additional and replacement
long-haul aircraft to be delivered in the next decade is
considering the Airbus A330, Airbus A350, Airbus A380, Boeing
787, Boeing 777 and Boeing 747-8.
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As reported on Aug. 16, 2007, Moody's Investors Service upgraded
the senior unsecured rating of British Airways plc to Ba1, one
notch lower than the Corporate Family Rating (upgraded to Baa3,
stable outlook), reflecting the subordination of unsecured debt
to a substantial portion of secured debt.
The debt instruments affected by the rating action are:
-- GBP100 million 10.875% senior unsecured notes due 2008 to
Ba1 from Ba2;
-- GBP250 million 7.25% senior unsecured notes due 2016 to
Ba1 from Ba2;
-- US$115 million 5.25% and US$85 million 7.625% senior
unsecured industrial revenue notes due 2032 to Ba1 from
Ba2;
-- EUR300 million 6.75% perpetual guaranteed preferred
securities to Ba2 from Ba3 issued by British Airways
Finance (Jersey) L.P.
=============
J A M A I C A
=============
AIR JAMAICA: Launches Web Check-In Service
------------------------------------------
The Jamaica Gleaner reports that Air Jamaica has launched Web
Check-In, to let passengers register for their flights online.
Air Jamaica told The Gleaner that the new service will lessen
the check-in time at the airport.
According to The Gleaner, the feature can be found at
http://www.AirJamaica.com. It lets passengers with electronic
tickets:
-- to check in for their flight,
-- select a seat, and
-- print a check-in confirmation.
The report says that passengers who have used the online service
can proceed to the Web Check-In counter at the airport for
verification, baggage and security checks. A boarding pass is
then issued.
Air Jamaica commented to The Gleaner, "With this convenience,
travelers with bags to be checked can arrive at the airport
counter at least 90 minutes before the scheduled departure of
their flight."
The Gleaner notes that international passengers with no checked
bags can enter the airport an hour before plane departure.
Web Check-In will be available to passengers departing from
Kingston, Montego Bay, Miami and Fort Lauderdale, according to
the report. This will let them check-in four to 18 hours before
scheduled departure.
The Gleaner relates that to make the booking process smoother,
passengers using Web Check-In must present:
-- first and last names,
-- reservation record locator,
-- passport,
-- any other relevant travel documents, and
-- emergency contact information.
The Gleaner states that Web Check-In is unavailable to:
-- travel groups of over nine,
-- unaccompanied minors,
-- special-service-need passengers,
-- standby listings, and
-- persons connecting to other airlines or "inter-line
flights".
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private
in 1994. The Jamaican government does not plan to on Air
Jamaica permanently.
* * *
On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest
payments.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.
CABLE & WIRELESS: Unit Launches New Internet Protocol Software
--------------------------------------------------------------
Cable & Wireless' Jamaican unit has launched a hosted Internet
protocol PBX software for small and medium-sized enterprises in
the technology and hospitality industry sector as well as
independent consultants, Business News Americas reports.
Cable & Wireless Jamaica's business telephony product manager
Sandra Buckland told BNamericas that the firm sees the small and
medium-sized enterprises market as primed and ready to adopt
hosted Internet protocol software. The hosted Internet protocol
PBX is a first step that would be followed up eventually by a
more advanced enterprise mobility offering to the market.
Most businesses have gained enough exposure to what an Internet
protocol network can offer. They would be ready to adopt a more
"advanced portfolio," BNamericas notes, citing Ms. Buckland.
Headquartered in London, Cable & Wireless Plc --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
The company has operations are in the United Kingdom, India,
China, the Cayman Islands and the Middle East.
* * *
In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Telecommunications, Media and
technology sector, Moody's Investors Service confirmed its Ba3
Corporate Family Rating for Cable & Wireless Plc.
Moody's also assigned a Ba3 Probability-of-Default rating to the
company.
* Issuer: Cable & Wireless Plc
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
4% Senior Unsecured
Conv./Exch.
Bond/Debenture
Due 2010 B1 LGD4 60%
GBP200 million
8.75% Senior
Unsecured Regular
Bond/Debenture
Due 2012 B1 LGD4 60%
SUGAR COMPANY: Christopher Tufton Prioritizes Reorganization
------------------------------------------------------------
Jamaican Agriculture Minister Christopher Tufton told Radio
Jamaica that he is giving priority attention to the
reorganization of the sugar sector, which includes the Sugar
Company of Jamaica.
Radio Jamaica relates that these factories of the Sugar Company
have been placed on the auction block:
-- Frome,
-- Monymusk,
-- Bernard Lodge,
-- Long Pond, and
-- Duckenfield.
The time has come for a major overhaul of the sector, Minister
Tufton was quoted by Beyond the Headlines as saying.
Minister Tufton commented to Radio Jamaica, "The sugar industry
is very important to this country, it has a great socio-economic
impact but at the same time it is not sustainable in its current
mode. It is a priority of this administration and of myself and
is being examined very thoroughly as we speak."
Radio Jamaica notes that the Jamaican government has awarded a
multi-million dollar contract for the valuation of the five
state-run sugar factories.
The US$24-million contract was awarded to Delano Reid and
Associates Limited, Radio Jamaica states, citing the Office of
the Contractor-General.
Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production. According to published
reports, the Jamaican government has taken responsibility for
the payment of the firm's debts.
===========
M E X I C O
===========
ALASKA AIRLINES: S&P Affirms Long-Term Corporate Rating at BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlook on
Alaska Air Group Inc. and its major operating subsidiary, Alaska
Airlines Inc., to negative from stable. All ratings, including
the 'BB-' long-term corporate credit rating for both entities,
have been affirmed.
"The outlook revision is based on a potential weakening of the
airline's financial profile," said S&P's credit analyst Betsy
Snyder. "We expect the company's earnings and cash flow to be
negatively affected by a slowing economy and a declining level
of fuel hedges at a time when fuel prices are increasing.
However, the effect will be alleviated somewhat by the company's
young, cost-efficient fleet; and its relatively strong
liquidity."
The ratings on Alaska Air Group Inc. and major operating
subsidiary Alaska Airlines Inc. reflect a medium-sized route
network serving competitive markets and the inherent risk of the
airline industry, offset somewhat by its strong position in its
major markets and relatively good liquidity for its size.
Alaska Air Group's financial profile is aggressive but better
than those of most other U.S. airlines. The company's earnings
have benefited from its fuel hedging program, among the best of
the U.S. airlines; with approximately 46% of its fuel needs
hedged at approximately US$40 per barrel in 2006, and more than
40% of 2007 needs hedged in the high-US$50 per barrel area.
However, over the near\u2013to-intermediate term, the company
has a lower percentage of its fuel needs hedged at substantially
higher prices than in the past.
S&P expects Alaska Airlines' financial profile to be constrained
by a combination of weaker earnings and cash flow as fuel hedges
decline and fuel prices increase; the effect of a slowing
economy; the use of incremental debt to finance new aircraft;
and a US$100 million share repurchase program. A material
weakening could result in a ratings downgrade. S&P considers an
outlook revision to stable unlikely unless fuel prices were to
decline significantly.
Seattle, Washington-based Alaska Air Group, Inc. (NYSE: ALK) --
http://alaskaair.com/-- is a holding company with two principal
subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries,
Inc. Alaska operates an all-jet fleet with an average passenger
trip length of 1,009 miles. Alaska principally serves
destinations in the state of Alaska and North/South service
between cities in the Western United States, Canada, and Mexico.
Horizon operates jet and turboprop aircraft with average
passenger trip of 382 miles. Horizon serves 40 cities in seven
states and six cities in Canada.
AMERICAN TOWER: Fitch Assigns BB+ Rating on US$250-Mln Sr. Notes
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to American Tower
Corporation's proposed ten-year US$250 million senior unsecured
notes. Proceeds from the notes offering will be used to
refinance existing indebtedness under the term loan facility
since the term facility is subject to mandatory prepayment from
any capital markets issuance. Fitch rates AMT's Issuer Default
Rating at 'BB+'. The Rating Outlook is Stable.
American Tower's ratings reflect the scale in its operations,
which has translated into strong operating performance and
increased free cash flow. AMT's operating characteristics
remain favorable, resulting in some of the highest profitability
measures for all of corporate credits and reflective of the
lower business risk associated with predictable long-term
contracts and growing cash flow stream generated primarily from
investment grade national wireless operators. Fitch believes
these characteristics more than offset AMT's sizable share
repurchase program and the higher financial leverage for its
rating category. AMT should continue to meaningfully improve
its operating metrics due to scale benefits and the expectations
for continued wireless industry demand.
On Aug. 30, 2007, AMT had entered into a new US$500 million
senior unsecured term loan to provide AMT with additional
liquidity. AMT had drawn approximately US$1 billion of the
US$1.25 billion on its senior unsecured revolving credit
facility maturing in 2012. AMT subsidiaries are not guarantors
of the notes and the notes would be structurally subordinated to
all existing and future indebtedness of its subsidiaries. Fitch
expects any new long-term debt will be issued by AMT. Financial
covenants for the new unsecured notes include limitation on
subsidiary indebtedness, limitation on liens and merger,
consolidation and sale of assets.
American Tower Corporation -- http://www.americantower.com/--
(NYSE: AMT) owns, operates and develops broadcast and wireless
communications sites. American Tower owns and operates over
22,000 sites in the United States, Mexico and Brazil.
Additionally, American Tower manages approximately 2,000 revenue
producing rooftop and tower sites.
AMERICAN TOWER: Moody's Rates Planned US$250-Mil. Notes at Ba1
--------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating to American
Tower Corporation's proposed 10-year US$250 million senior
unsecured notes issue. The net proceeds of the offering will be
used to repay existing debt. AMT's corporate family rating is
Ba1 with a stable outlook.
Assignments:
-- Issuer: American Tower Corporation
-- Senior Unsecured Regular Bond/Debenture, Ba1, LGD 4, 55%
American Tower Corporation -- http://www.americantower.com/--
(NYSE: AMT) owns, operates and develops broadcast and wireless
communications sites. American Tower owns and operates over
22,000 sites in the United States, Mexico and Brazil.
Additionally, American Tower manages approximately 2,000 revenue
producing rooftop and tower sites.
AMERICAN TOWER: S&P Puts BB+ Rating on Proposed US$250-Mln Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB+' rating
to Boston-based American Tower Corp.'s proposed US$250 million
senior notes due 2017, to be issued under Rule 144A with
registration rights.
At the same time, S&P has affirmed the existing ratings on the
company, including the 'BB+' corporate credit rating. The
outlook is stable.
"Since the new notes will be used to refinance existing debt,
specifically a portion of the company's senior unsecured term
loan, the company's financial profile is unchanged," said S&P's
credit analyst Catherine Cosentino. About US$4 billion of total
debt was outstanding as of June 30, 2007.
The ratings on American Tower reflect the promising prospects of
its wireless tower leasing business, which is expected to
generate increasingly stronger levels of net free cash flow
after capital expenditures. Despite these very favorable
business-risk characteristics, which are indicative of an
investment-grade business-risk profile, ratings are constrained
by the company's aggressive financial policy. The company
completed its US$750 million stock repurchase plan in February
2007, and a more recently authorized US$1.5 billion share
repurchase plan is expected to be carried out through February
2008. Management has also indicated that it is targeting a debt
to EBITDA ratio of 4-6, or in the mid-5 to 8 area, after
adjustment.
The cash flows generated by American Tower's business have a
high degree of stability, given the long-term nature of the
carrier contracts and high contract renewal rates. The high
operating leverage of the business also contributes to extremely
healthy tower gross profit and overall EBITDA margins, which
totaled 76% and 63%, respectively, for the second quarter of
2007, excluding US$3.6 million of recurring quarterly interest
income from TV Azteca, the Mexican TV broadcast operator with
which American Tower has a communications tower venture.
These high profit metrics, however, are partially offset by the
company's aggressive financial profile, which incorporates
anticipated material levels of stock repurchases, and a debt to
2007 second-quarter EBITDA of 5.7, including interest income
from TV Azetec, and adjusted for operating lease adjustments and
noncash stock compensation expense.
American Tower Corporation -- http://www.americantower.com/--
(NYSE: AMT) owns, operates and develops broadcast and wireless
communications sites. American Tower owns and operates over
22,000 sites in the United States, Mexico and Brazil.
Additionally, American Tower manages approximately 2,000 revenue
producing rooftop and tower sites.
AMSCAN HOLDING: Planned Buy Cues Moody's To Review Ratings
----------------------------------------------------------
Moody's Investors Service has placed all ratings of Amscan
Holding, Inc. under review for potential downgrade following the
announcement that the company intends to purchase Factory Card &
Party Outlet, an operator of about 184 retail stores
specializing in decorative party goods and social expression
products, in a cash transaction for total consideration of US$72
million. Although credit metric deterioration is likely to be
modest, this transaction occurs very soon after the acquisitions
of Party City and Party America, and involves the acquisition of
a retailer with weak operating performance and 50% of sales from
a segment outside of party goods.
Ratings placed under review for downgrade are:
-- US$200 million secured revolving credit facility of Ba3
(LGD-2, 28%);
-- US$375 million secured term loan of B1 (LGD-3, 36%).
-- US$175 million 8.75% senior subordinated notes (2014) of
Caa1 (LGD-5, 88%);
-- Corporate family rating of B2;
-- Probability of default rating of B2.
During the review, Moody's will consider (1) the impact of the
transaction's financing plans, keeping in mind that credit
metrics likely will deteriorate, (2) the amount and timing of
potential post-merger operating efficiencies such as for
overhead reductions and purchasing, and (3) operating
performance expectations for the existing and newly acquired
stores. In particular, Moody's will explore how Amscan plans to
manage the greeting card and social expression segment, which
faces different business dynamics from its traditional
decorative party goods business.
Headquartered in Elmsford, New York, Amscan Holdings Inc. makes
more than 400 specially designed ensembles of party accessories
and novelties, including balloons, invitations, pinatas,
stationery, and tableware. Amscan sells to more than 40,000
retail outlets worldwide, mainly party goods superstores, mass
merchandisers, and other distributors. Party City accounted for
about 13% of sales before the firm bought it in 2005. Amscan
itself makes party items (which bring in about 60% of sales) and
buys the rest from other manufacturers, primarily in Asia. It
has production and distribution facilities in Asia, Australia,
Europe, and North America. Berkshire Partners and Weston
Presidio are Amscan's principal owners. The company has a
wholly owned metallic balloon distribution operations located in
Mexico.
DANA CORP: Extends Challenge Period for Waiver Fee Payments
-----------------------------------------------------------
Dana Corp. and its debtor-affiliates, the Official Committee of
Unsecured Creditors, and the Ad Hoc Committee of Dana
Noteholders agree, in a stipulation approved by the U.S.
Bankruptcy Court for the Southern District of New York, that the
Challenge Period for the Committees to contest all liens and
claims relative to, and the payment of, the Waiver Fee, as
defined in the Final DIP Order, is extended through and
including the earlier of the date that is
100 days after:
(i) any of the Debtors, the Committees, the Receivables
Facility Agents sends a written notice to the other
parties setting the last day of the Challenge Period on
the 100th day in accordance with the Stipulation; and
(ii) the date on which the adequacy of any disclosure statement
filed in the Debtors' cases is approved by the Court.
The date of the Order approving the adequacy of the Disclosure
Statement will be the Investigation Commencement Date.
The date by which the Prepetition Agent, the Pre-Petition
Lenders, the Credit Card Issuers and the Debtors may serve a
written response, objection or motion with respect to the
subpoenas served pursuant to the Rule 2004 Orders is extended to
the 30th day after the Investigation Commencement Date. Subject
to and without waiving any of the rights reserved in the
preceding sentence, to the extent that documents have not
already been produced, document production pursuant to the
Subpoenas will commence, on a rolling basis, on the 31st day
after the Investigation Commencement Date and will conclude on
the 50th day after the Investigation Commencement Date.
About Dana Corp.
Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies. Dana employs 46,000
people in 28 countries. Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually.
Dana continues to close plants in North America, moving business
to other countries such as Mexico.
The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. The Court has set a hearing on Oct. 23, 2007, to
consider the adequacy of the Disclosure Statement explaining the
Debtors' Plan.
DANA CORP: Completes Sale of Coupled Products Business
------------------------------------------------------
Dana Corporation has completed the sale of its North American
coupled products business to Coupled Products LLC, a wholly
owned subsidiary of Wanxiang (USA) Holdings Corporation.
Dana expects to record an after-tax loss of approximately
US$44 million in the third quarter of 2007 in connection with
this transaction.
The sale substantially concludes the overall divestiture of
Dana's fluid products business. Last month, the company closed
the sale of its North American fluid products hose and tubing
operations to Orhan Holding, A.S. Dana previously sold its
European fluid products hose and tubing operations to Orhan in
July 2007.
"The completion of this divestiture marks another important step
in Dana's efforts to concentrate our resources on the core
products and competencies that are the foundation for our future
growth," Dana Chairman and CEO Mike Burns said. "We wish the
people of the coupled products business the very best as they
move forward with Wanxiang."
The coupled products plants and/or assets involved in the
Wanxiang transaction are located in San Luis Potosi, Mexico; and
Columbia City, Indiana; Pensacola, Florida; Rochester Hills,
Michigan; and Upper Sandusky and Wharton, Ohio. The coupled
products operations manufacture power-assisted steering
products; heating, ventilation, and air conditioning under-
engine products; and brake products. The operations employ
approximately 2,050 people and reported consolidated revenues of
approximately US$200 million in 2006.
About Dana Corp.
Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies. Dana employs 46,000
people in 28 countries. Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually.
Dana continues to close plants in North America, moving business
to other countries such as Mexico.
The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. The Court has set a hearing on Oct. 23, 2007, to
consider the adequacy of the Disclosure Statement explaining the
Debtors' Plan.
FIRST DATA: KKR Affiliates Completes Acquisition
------------------------------------------------
First Data Corporation has completed its acquisition by
affiliates of Kohlberg Kravis Roberts & Co. Under the terms of
the merger agreement, the company's stockholders will receive
US$34 per share in cash. Shareholders approved the transaction
at a special meeting on July 31, 2007.
First Data stock will cease to trade on the New York Stock
Exchange (NYSE) at market close Sept. 24. Under private
ownership, First Data's common stock will no longer be listed on
the NYSE.
With the transaction completed, Michael D. Capellas becomes
First Data's new chairman and CEO, replacing Ric Duques. Mr.
Duques has served as chairman and CEO since November 2005, and
previously served as chairman from 1992 to 2003 and CEO from
1987 to 2003. Mr. Capellas was previously CEO of MCI, President
of Hewlett-Packard Company and Chairman and CEO of Compaq
Computer Corporation.
New Management Team
The company also announced that all of its operations in the
U.S. will be led by Edward (Ed) Labry and that it will combine
the company's Commercial Services and Financial Institution
Services segments. Mr. Labry has been serving as president of
the company's Commercial Services division.
First Data's international operations will be led by David Yates
and will continue to be organized regionally with a focus on
selling the company's suite of payments services to merchant and
financial institution clients outside of the United States. Mr.
Yates has been serving as president of the company's Europe,
Middle East and Africa region.
To further strengthen and support the senior management team,
Tom Bell has joined the company as Executive Vice President and
Chief Strategy Officer. Mr. Bell will assume primary
responsibility for corporate strategy and the company's high
growth areas for innovation. Mr. Bell joins First Data after 25
years at Accenture where he served as Managing Director in the
Communications & High Tech practice.
Grace Chen Trent also has joined First Data as Executive Vice
President for Marketing and Communications. Ms. Trent will
assume responsibility for the company's integrated marketing,
brand and communication programs worldwide. Ms. Trent was most
recently Senior Vice President of Communications for MCI.
First Data executive officers that will continue in their
current roles are as follows:
a) Peter Boucher, Executive Vice President, Human Resources
b) David Dibble, Executive Vice President, Chief Technology
Officer
c) Dave Money, Executive Vice President, General Counsel
d) Kim Patmore, Executive Vice President, Chief Financial
Officer
Mr. Capellas said, "Today, First Data begins a new era as a
private company. The strength and experience of this new
management team combined with our leading market position will
serve as a critical foundation for what will be the next
generation of First Data. Our new simplified company structure
will allow us to be more customer-focused, more innovative and
faster to market with new products. Our goal is to transform
from being the largest payments processor to a leading-edge
technology services provider in the expanding world of
electronic and mobile commerce."
KKR Member Scott Nuttall added, "First Data is very fortunate to
have a solid foundation of strong financial performance, a
market leading position and a long list of great clients around
the world. We look forward to supporting Michael and the rest
of the management team in the years ahead to extend that
leadership position and capitalize on the worldwide trend toward
electronic payments."
Mr. Duques said, "After 18 years with the company, I am stepping
down knowing that First Data's future is in extremely capable
hands. Our new CEO, Michael Capellas, together with the support
of KKR, will build upon our existing strengths to deliver the
advanced services our clients will require in the years ahead."
Mr. Capellas continued, "Ric Duques has served as the essential
architect behind First Data's emergence as the world's leading
payments processor for two decades. On behalf of everyone at
First Data, I want to thank him for his tremendous leadership
and we wish him the very best in his retirement."
About KKR
Established in 1976, KKR is a leading global alternative asset
manager. The core of the Firm's franchise is sponsoring and
managing funds that make private equity investments in North
America, Europe, and Asia. Throughout its history, KKR has
brought a long-term investment approach to portfolio companies,
focusing on working in partnership with management teams and
investing for future competitiveness and growth. Additional
funds that KKR sponsors include KKR Private Equity Investors,
L.P. (Euronext Amsterdam: KPE), a permanent capital fund that
invests in KKR-identified investments; and two credit strategy
funds, KKR Financial (NYSE: KFN) and the KKR Strategic Capital
Funds, which make investments in debt transactions. KKR has
offices in New York, Menlo Park, San Francisco, London, Paris,
Hong Kong, and Tokyo.
About First Data
First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/--
provides electronic commerce and payment solutions for
businesses worldwide, including those in New Zealand, the
Netherlands and Mexico. The company's portfolio of services and
solutions includes merchant transaction processing services;
credit, debit, private-label, gift, payroll and other prepaid
card offerings; fraud protection and authentication solutions;
receivables management solutions; electronic check acceptance
services through TeleCheck; as well as Internet commerce and
mobile payment solutions. The company's STAR Network offers
PIN-secured debit acceptance at 2 million ATM and retail
locations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2007, Moody's Investors Service has assigned these
ratings:
-- Corporate Family Rating - B2
-- US$2 billion senior secured revolving credit facility
(expires 2013) - Ba3, LGD2 (27%)
-- US$13 billion senior secured Term Loan B (due 2014) - Ba3,
LGD2 (27%)
GRUPO TMM: Reaches US$54.1-Million Settlement with Kansas City
--------------------------------------------------------------
Grupo TMM S.A.B. has reached a settlement with Kansas City
Southern in connection with the arbitration procedure instituted
under the terms of the Amended and Restated Acquisition
Agreement dated Dec. 15, 2004, between TMM and KCS. This
settlement terminates any and all controversies under the AAA
and its ancillary documents, and provides for mutual releases
between the parties.
Under the terms of the settlement, KCS will pay TMM US$54.1
million in cash and the obligations of KCS under the Indemnity
Escrow Note and the Tax Escrow Note, which was payable in 2010,
will terminate. In TMM's financial statements, these Notes were
presently valued at US$91.7 million, as they were registered at
face value.
Javier Segovia, president of Grupo TMM, said, "We are pleased
with this settlement as it will allow TMM to pay down financial
obligations and increase its financial flexibility going
forward. TMM's management will now be able to focus all its
efforts on its operations and growth to increase shareholder
value."
Headquartered in Mexico City, Grupo TMM SA (NYSE: TMM)(MEX
VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin
American multimodal transportation and logistics company.
Through its branch offices and network of subsidiary companies,
TMM provides a dynamic combination of ocean and land
transportation services.
* * *
Standard & Poor's Ratings Services raised its corporate credit
rating on Grupo TMM SA to 'B-' from 'CCC.' The rating was
removed from Creditwatch, where it was placed on Dec. 15, 2004.
S&P said the outlook is positive.
HERBALIFE INT'L: Moody's Affirms Credit Facility'S Ba1 Rating
-------------------------------------------------------------
Moody's Investors Service rated at Ba1 (LGD 2, 29%) the proposed
US$150 million add-on to the secured revolving credit facility
of Herbalife International, Inc. Moody's has also affirmed the
corporate family and existing bank loan ratings at Ba1.
Virtually all proceeds from the incremental US$150 million of
bank borrowings will be used to fund open-market share
repurchases. The rating affirmation reflects that credit
metrics remain strong in spite of the additional debt, and
Moody's belief that the company will continue to generate
substantial free cash flow. The rating outlook is stable.
This rating is assigned:
-- US$150 million add-on to the secured revolving credit
facility at Ba1 (LGD 2, 29%).
These ratings are affirmed:
-- US$100 million (commitment prior to add-on) secured
revolving credit facility at Ba1 (LGD 2, 29%);
-- US$200 million secured term loan at Ba1 (LGD 2, 29%);
-- Corporate Family Rating at Ba1;
-- Probability of Default Rating at Ba2.
Herbalife's corporate family rating balances certain strong
quantitative and qualitative rating drivers against Moody's
opinion that many credit attributes for a company without
substantial tangible assets are always likely to be stronger
than for similarly rated conventional retailers or consumer
products issuers. Profitable rapid growth across many
geographies and product categories and the company's pattern of
repaying debt with a portion of discretionary cash flow benefit
the ratings. Important factors holding down the ratings are the
company's relatively small size compared to many higher rated
companies, the unpredictability of demand for many products in
the vitamin, nutritional supplement, and personal care
categories, as well as the inherent challenges of managing the
high reseller attrition that is a common characteristic of a
multi-level marketing business model.
Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/--
Herbalife, now in its 26th year, conducts business in 62
countries. The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China as well as major distribution centers in Venray,
Netherlands, Japan, Los Angeles, California, Memphis, Tennessee,
and Guadalajara, Mexico.
=================
N I C A R A G U A
=================
* NICARAGUA: Gets US$20-Million Loan for Healthcare Networks
------------------------------------------------------------
The Inter-American Development Bank has approved a US$20 million
loan for the first phase of a program to improve the quality and
efficiency of healthcare services in Nicaragua.
The program will support the modernization of hospitals and
other care units and the launching of a model for comprehensive
healthcare networks, as well as the strengthening of the Health
Ministry and local healthcare systems.
During the first phase half the program's resources will be
earmarked for a master plan for investments in health
infrastructure and equipment to rehabilitate or replace
hospitals, health care centers and health posts.
Investments will be made in selected areas of Nicaragua
(Jinotega, Rio San Juan, Matagalpa, Madriz and the Autonomous
Regions of the North Atlantic and the South Atlantic), where new
healthcare networks will be established, starting with public
hospitals and later with private and community centers to
provide residents a basic package of services.
During project preparation a new instrument was developed to
gauge regional investment priorities, combining demand
indicators (social needs, health needs and health gaps) and
supply indicators (state of disrepair of health infrastructure).
The IDB plans to use the instrument in similar operations in
other countries.
Based on the outcome of the first phase, the healthcare network
model may be extended to the rest of Nicaragua during a second
phase of the program, which complements an IDB-financed project
to improve mother-and-child healthcare services as well as other
programs in Nicaragua's 2005-2009 national health plan.
The financing approved by the IDB's Board of Executive Directors
consists of a US$10 million, 30-year loan with an adjustable
interest rate and a US$10 million, 40-year soft loan with a
fixed interest rate of 0.25% a year.
The IDB may provide US$54 million in new financing for the
second phase of the program.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
===========
P A N A M A
===========
CHIQUITA BRANDS: Names Howard Baker to Board of Directors
---------------------------------------------------------
Chiquita Brands International Inc.'s board of directors has
decided to increase its size from seven to eight members and has
elected Howard (Skip) W. Barker, Jr. to fill the new position.
Mr. Barker, who brings more than 30 years of experience in
finance and accounting practices, will also serve as a member of
the company's audit committee.
"We are delighted to welcome Skip to Chiquita's board," said
Fernando Aguirre, chairman and chief executive officer. "His
leadership and extensive finance and audit skills accentuate an
already strong group of independent board members whose vision
and experience will continue to advance Chiquita's sustainable
growth strategy."
"Chiquita is an exciting company that is becoming a global
leader in branded, healthy, fresh foods," Mr.Barker said. "I
look forward to adding my experience and joining Chiquita's
board to work with this management team."
Mr. Barker's accounting career spanned 30 years with KPMG LLP,
where he became a partner in 1982 and served as the firm's
partner-in-charge of several departments, including business
development; mergers and acquisitions, information,
communications and entertainment businesses; and executive
education. Mr. Barker retired from KPMG in 2002, and since
2003, he has served on the boards of directors at Medco Health
Solutions, Inc., and priceline.com Incorporated. He is chairman
of the audit committees at both companies.
Mr. Barker is a member of several professional societies,
including the American Institute of Certified Public
Accountants, the Connecticut Society of Certified Public
Accountants and the Florida Society of Certified Public
Accountants.
In addition to Messrs. Aguirre and Barker, the board includes:
a) Morten Arntzen, president and chief executive officer for
Overseas Shipholding Group, an oceangoing vessel operator;
b) Robert W. Fisher, a private investor with more than 35
years senior management experience at various banana
companies;
c) Clare M. Hasler, executive director of the Robert Mondavi
Institute for Wine and Food Science at the University of
California at Davis;
d) Durk I. Jager, former chairman, president and chief
executive officer at the Procter & Gamble Co.;
e) Jaime Serra, senior partner of Serra Associates
International, a consulting firm in law and economics, and
Mexico's former secretary of finance and secretary of
trade and industry; and
f) Steven P. Stanbrook, president, developing markets
platform at S.C. Johnson & Son, Inc.
Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and
distributes fresh food products including bananas and nutritious
blends of green salads. The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks. Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide, including
Panama and the Philippines.
* * *
As reported in the Troubled Company Reporter on May 16, 2007,
Moody's Investors Service Ratings affirmed these ratings on
Chiquita Brands International Inc.: (i) corporate family rating
at B3; (ii) probability of default rating at B3; (iii) US$250
million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%);
and (iv) US$225 million 8.875% senior unsecured notes due 2015
at Caa2 (LGD5, 89%). Moody's changed the rating outlook for
Chiquita Brands to negative from stable.
Troubled Company Reporter reported on May 4, 2007, that Standard
& Poor's Ratings Services placed its 'B' corporate credit and
other ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc. on CreditWatch with negative implications,
meaning that the ratings could be lowered or affirmed following
the completion of their review. Total debt outstanding at the
company was about US$1.3 billion as of March 31, 2007.
===============
P A R A G U A Y
===============
AGILENT TECHNOLOGIES: Inks Resale Agreement with Accelerys
----------------------------------------------------------
Agilent Technologies Inc. and Accelrys Inc. have entered into a
comprehensive resale agreement to enable the licensing and
integration of their informatics products. The partnership
covers the breadth of informatics portfolios of both companies
and will enable customers in the pharmaceutical industry to
enjoy unprecedented integration of laboratory data, experimental
results and insights across the enterprise.
"This partnership will enable unparalleled integration of
informatics products," said Bruce von Herrmann, Agilent vice
president and general manager, Informatics Division. "It will
significantly benefit pharmaceutical companies that want to
spend less time integrating existing informatics solutions and
more time developing new, more effective medicines."
Agilent and Accelrys will offer compatible and enhanced
solutions incorporating their respective portfolios of
informatics products. Accelrys will resell OpenLAB Enterprise
Content Manager, Kalabie Electronic Lab Notebook, and GeneSpring
gene expression solutions. Agilent will resell Accord
cheminformatics solutions and Pipeline Pilot Scientific
Operating Platform solutions.
"Partnering with Agilent allows us to provide a broader range of
scientific business-intelligence solutions to our pharmaceutical
customers," said Mark J. Emkjer, president and chief executive
officer, Accelrys. "We're enabling them to gain deeper insights
and make more informed decisions from their scientific data
across the research and development continuum. Agilent's
strength in Laboratory Informatics, QA/QC and manufacturing are
a natural complement to Accelrys' expertise in research, early
development and scientific data management."
The combined solutions can be seen at the following events:
-- the Agilent Worldwide Laboratory Informatics Conference in
Berlin on Sept. 25-26;
-- the ELNs - IQPC conference in Brussels on Sept. 26; and
-- the Accord Informatics and Scitegic Pipeline Pilot user
group meeting in Pistoia, Italy, Oct. 9-12.
About Accelrys
Accelrys Inc. -- http://www.accelrys.com/-- develops and
commercializes Scientific Business Intelligence software for the
integration, mining, analysis, modeling and simulation,
management and interactive reporting of scientific data. Our
solutions are used by biologists, chemists, materials
scientists, and information technology professionals for product
design as well as drug discovery and development. The company's
technology and services are designed to meet the needs of
today's leading research and development organizations including
leading commercial, government and academic organizations.
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 U E R T O R I C O
=====================
AFC ENTERPRISES: Moody's Affirms Debt Ratings; Changes Outlook
--------------------------------------------------------------
Moody's Investors Service today changed AFC Enterprises, Inc.'s
rating outlook to stable from positive. Concurrently, Moody's
affirmed all the debt ratings of AFC, including its B1 corporate
family rating and probability of default rating at B2, while
upgrading the senior secured credit facilities rating to Ba3
from B1.
The outlook revision reflects Moody's view that an upgrade of
AFC's ratings is now unlikely in the near term given that the
positive momentum in performance supporting a positive outlook
has recently subsided. Factors indicating this change include:
1)weaker than expected top-line growth, primarily driven by
still-negative same store sales growth; this arises from both
more intense competition in the chicken quick service restaurant
(QSR) sector as well as lower discretionary income among AFC's
customers due to adverse economic factors; 2)slower than
expected store unit growth as a result of fewer new store
openings and more under-performing restaurants being closed; 3)
escalating margin pressure arising from food commodity inflation
and labor cost increases.
"Although AFC's financial leverage is low for its current B1
rating category, the likelihood of an upgrade is also remote
given the uncertainty surrounding the company's future capital
structure as the expiration date of the interest swap on its
current facilities is approaching within the next twelve
months," said Moody's Analyst, John Zhao. "There is little
chance of an upgrade until the company settles on its capital
structure."
The one notch upgrade of the senior secured credit facilities to
Ba3 reflects a lower expected loss driven largely by an improved
loss-given-default rating as a result of additional term loan
prepayment by the company in the past year. The ratings for the
senior secured credit facilities reflect both the overall
probability of default of the company, to which Moody's assigns
a PDR of B2, and a loss given default of LGD 2. The credit
facilities were issued by AFC with upstream guarantee from its
operating subsidiaries.
AFC's B1 CFR reflects the company's relatively low financial
leverage, solid coverage ratios, and sound liquidity position
driven by steady cash flow generation and voluntary debt
prepayment over the past two years. The rating also encompasses
AFC's established position within the chicken QSR category
(third largest concept in the U.S. by revenues) and the strong
name recognition of its Popeyes brand in the U.S. In addition,
the rating also incorporates the company's modest scale as
compared to its larger QSR competitors, its geographic
concentration, and the still sub-par performance of its
international operations.
These ratings are affected:
AFC Enterprises, Inc.
-- Corporate family rating -- affirmed at B1
-- Probability of default rating -- affirmed at B2
-- Senior secured credit facilities -- upgraded to Ba3 (LGD2,
27%) from B1 (LGD3, 31%)
-- Rating outlook -- changed to stable from positive
About AFC Enterprises
AFC Enterprises, Inc. -- http://www.afce.com/--(Nasdaq: AFCE),
headquartered in Atlanta, Georgia, owns, operates and franchises
Popeyes Chicken & Biscuits quick service restaurants. As of
July 15, 2007, AFC owned and operated 61 restaurants and
franchised 1,817 restaurants in 44 states, the District of
Columbia, Puerto Rico, Guam and 23 foreign countries. The
Popeyes concept features a New Orleans Cajun-style menu, with
regional items such as spicy fried chicken pieces, chicken
sandwiches and strips, fried shrimp, jambalaya and red beans &
rice.
Following the divestiture of Church's Chicken in the first
quarter of 2005, AFC reported revenues from Popeyes on a
standalone basis of approximately US$165 million for LTM July
2007.
APARTMENT INVESTMENT: Fitch Affirms Rating on US$1.125B Stock
-------------------------------------------------------------
Fitch Ratings has affirmed the following ratings on Apartment
Investment & Management Company (AIMCO):
AIMCO
-- Issuer Default Rating at 'BBB-';
-- US$823.5 million preferred stock at 'BB+'.
AIMCO Properties L.P.
-- US$1.125 billion bank credit facility at 'BBB-'.
The Rating Outlook is Stable.
The ratings reflect AIMCO's large and geographically diverse
portfolio of multifamily assets, significantly improved property
operations, redevelopment program, and sound multifamily
property fundamentals. AIMCO has an adequate Fitch risk
adjusted capital ratio for the rating category reflecting its
reasonable debt levels, the relatively more stable multifamily
sector, and access to additional sources of capital through
agency debt.
The US$12.8 billion (undepreciated book capital) equity REIT is
one of the largest owners and managers of multifamily assets
with more than 1,200 properties (209,507 units) across 47
States, the District of Columbia and Puerto Rico. This
diversity insulates it against a downturn in any one market.
The portfolio is also diversified across price points and by its
mix of conventional and affordable properties which further
protect it against adverse economic or market changes that may
target one demographic group of renters or a particular asset
class.
Over the last 10 quarters the company has demonstrated strong
same store net operating income growth. Same store net
operating income grew 6.3% and 9.5% respectively for full year
2005 and 2006 and a healthy 6% and 4.1% respectively for the
first and second quarter of 2007. After a couple of difficult
years in 2003 and 2004, management has upgraded/repositioned
properties and has built a better operating platform for its
large and diversified portfolio. The ratings are further
supported by the company's redevelopment program, which should
benefit the company over the longer term increasing asset values
and earnings. Fitch views redevelopment as less risky than
ground up development, which has a longer time frame and is more
susceptible to sudden markets changes.
Full leverage, defined as debt plus preferred securities to
undepreciated book capital, measures 63% as of June 30, 2007
consistent with AIMCO's historical average and similarly rated
multifamily peers. Furthermore, on Sept. 15, 2007, AIMCO
expanded its bank credit facility to US$1.125 billion from
US$850 million providing ample short term liquidity. The
revolving credit facility increased by US$200 million to US$650
million, and the term loan increased by US$75 million to US$475
million.
Rating concerns include AIMCO's 100% encumbered portfolio.
Nearly all of AIMCO's debt is funded through property mortgages
which represents approximately US$6.5 billion of the US$7.1
billion in total debt as of June 30, 2007. The use of secured
debt in the capital structure encumbering substantially all
assets has the potential to limit flexibility in a more
difficult capital raising environment.
Furthermore the company has been increasing its secured debt
financing by redeeming high coupon preferred securities and
substituting with additional property debt. Total debt to
undepreciated book capital has edged higher to 56.1% at mid-year
2007 from 54.9% at year-end 2006 and 52.5% at mid-year 2006.
While this lowers the cost of capital, Fitch is concerned by any
increase in loan to value ratios on its fully encumbered
portfolio. Fitch will look to monitor this greater shift to
secured debt especially in view of the pressure it puts on the
bank credit facility rating and preferred stock rating which are
subordinate to all property debt.
Fitch adjusted interest and fixed charge coverage ratios are
acceptable for the current rating category and have strengthened
to 2.1 and 1.5 respectively for the quarter-ending June 30, 2007
compared to 2 and 1.4 for full year 2006 and 1.9 and 1.3 for
full year 2005. Fitch will continue to closely monitor coverage
ratios especially as AIMCO moves forward with its redevelopment
program and recently board authorized enlarged stock repurchase
plan.
Headquartered in Denver, Colorado, Aimco is a real estate
investment trust that owns and operates a geographically
diversified portfolio of apartment communities through 19
regional operating centers. Aimco, through its subsidiaries,
operates 1,320 properties, including approximately 230,000
apartment units, and serves approximately one million residents
each year. Aimco's properties are located in 47 states, the
District of Columbia and Puerto Rico.
AVNET INC: To Acquire Components Distributor Betronik GmbH
----------------------------------------------------------
Avnet Inc. has entered into an agreement to acquire the Berlin,
Germany-based passive components distributor Betronik GmbH. The
acquisition is subject to the final approval by the German anti-
trust authority (Bundeskartellamt).
Following anti-trust approval, Betronik and its French
subsidiary DEL S.A. will be combined with the Avnet Time
organization in Germany and France, respectively. The newly
formed business will operate within Avnet Electronics Marketing
EMEA under the Avnet Time brand. Betronik reported calendar
year 2006 revenues of approximately US$40 Million. As a result
of the merger, Ingeborg and Horst Mergener, managing directors
and founders of Betronik, will lead the sales organizations in
Germany reporting directly to Michael Danylow, president of
Avnet Time.
With roots dating back to the 1970s, Betronik GmbH was founded
in 1986 in Berlin by Horst Mergener and his wife, Ingeborg.
Over the last 20 years, the company evolved to a leading
independent distribution organization in the German market for
passive components. Betronik employs about 80 people in its
logistics center in Berlin, and seven sales offices across
Germany and one in France. Most importantly, Betronik maintains
an excellent reputation with customers of all sizes and
structures.
Patrick Zammit, President of Avnet Electronics Marketing EMEA,
said: "The acquisition of Betronik, like the Flint acquisition
three months ago, is another great example of Avnet's commitment
to invest in the European IP&E market. Both Betronik's and
Avnet Time's customers will gain access to one of the industry's
best passive components portfolios as well as a broader spectrum
of value-added services. We have very exciting plans for Avnet
Time across Europe and are confident that our suppliers and
customers will embrace the opportunities that evolve from this
expansion.
Betronik's Managing Director and Founder Horst Mergener
commented: "Over the last 20 years, we have built an excellent
specialist team on passive components and were able to gain the
respect of many customers for our high service quality. I
believe that combining forces with Avnet Time now provides the
best options for customers, suppliers and employees. In leading
the new German sales organisation I want to ensure that
Betronik's entrepreneurial spirit continues to prevail, as part
of Avnet Time. I am looking forward to be an integral part of
Avnet Time's future strategy."
Michael Danylow said: "Germany is by far the biggest marketplace
in Europe for IP&E products. Together with Betronik, we can
grow to become a leading force in this critical region."
The newly expanded Avnet Time will work to ensure the strengths
that have made Betronik a preferred choice in the passive
components market will also drive the new organization and that
customers, suppliers and employees will experience a smooth
transition with new and exciting opportunities.
About Avnet
Headquartered in Phoenix, Arizona, Avnet, Inc.
-- http://www.avnet.com/-- distributes electronic components
and computer products, primarily for industrial customers. It
has operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, and
Sweden, Brazil, Mexico and Puerto Rico.
* * *
The Troubled Company Reporter on March 6, 2007, reported that
Moody's Investors Service affirmed the Ba1 corporate family and
long-term debt ratings of Avnet, Inc. and revised the outlook to
positive from stable.
GENESCO INC: Files Suit Against Finish Line to Consummate Merger
----------------------------------------------------------------
Genesco Inc. has filed suit in Chancery Court in Nashville,
Tennessee, seeking an order requiring The Finish Line, Inc. to
consummate its merger with Genesco and to enforce The Finish
Line's rights against UBS under the Commitment Letter for
financing the transaction.
Commenting on the filing, Genesco Chairman and Chief Executive
Officer Hal N. Pennington said, "No more delays by The Finish
Line and UBS; no more reservation of rights; no more bankers'
putting their pencils down. We want a court of competent
jurisdiction to enforce our rights under the Merger Agreement
and for The Finish Line and UBS to live up to their
obligations."
"We have launched this litigation in an effort to speed
consummation of the merger and to force impartial review of the
aspersions that The Finish Line and its bankers have cast on
Genesco's business and reputation," Mr. Pennington continued.
"I, along with other members of the management team and our
Board of Directors, are proud to be the stewards of a company
that is a leader and innovator in its industry with a rich
history dating to 1924. I am proud to be the leader of a group
of employees who have helped build a wonderful business for the
benefit of our shareholders."
"Our Board of Directors stands united in this call for The
Finish Line and UBS to perform their obligations and pay our
shareholders $54.50 per share in cash," Robert V. Dale, the
presiding independent director of Genesco's Board of Directors,
said. "Our Board, our management team and our advisors are
confident that the steps we are taking are in the best interests
of our shareholders."
"Commencing litigation is always a difficult decision, but
continued delay by The Finish Line and UBS is simply not
acceptable," Mr. Pennington concluded. "Accordingly, we are
seeking expedited hearings on all of our claims. I caution our
shareholders and employees that there will likely be claims made
back against Genesco. When they come, we will be ready."
About Finish Line
Headquartered in Indianapolis, Indiana, The Finish Line Inc.
(Nasdaq: FINL) -- http://www.finishline.com/-- is a mall-based
specialty retailer operating under the Finish Line, Man Alive
and Paiva brand names. The company currently operates 697
Finish Line stores in 47 states and online, 95 Man Alive stores
in 19 states and online and 15 Paiva stores in 10 states and
online.
About Genesco Inc.
Based in Nashville, Tennessee, Genesco Inc. (NYSE: GCO) --
http://www.genesco.com/-- is a specialty retailer of footwear,
headwear and accessories in more than 1,900 retail stores in the
U.S. and Canada, including Puerto Rico, principally under the
names Journeys, Journeys Kidz, Shi by Journeys, Johnston &
Murphy, Underground Station, Hatworld, Lids, Hat Zone, Cap
Factory, Head Quarters and Cap Connection. The company also
sells footwear at wholesale under its Johnston & Murphy brand
and under the licensed Dockers.
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services said that its ratings on
specialty Genesco Inc. remain on CreditWatch with developing
implications, following the announcement that it has rejected
Foot Locker Inc.'s conditional bid to acquire Genesco for
approximately $1.3 billion ($51.00 per share)in cash.
In April 2007, S&P placed its ratings, including the 'BB-'
corporate credit rating, on Genesco Inc. on CreditWatch with
developing implications after Foot Locker launched its bid for
Genesco.
The Foot Locker deal also prompted Moody's Investors Service to
place the ratings of Genesco on review for possible downgrade.
Affected ratings include the company's "Ba3" corporate family
rating.
GLOBAL HOME: Capital Solutions Okayed as Panel's Fin'l Advisor
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave the
Official Committee of Unsecured Creditors appointed in Global
Home Products LLC and its debtor-affiliates' Chapter 11 cases,
permission to retain Capital Solutions Group Ltd. as its
financial advisor.
As reported in the Troubled Company Reporter on Aug. 24, 2007,
Capital Solutions is expected to:
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 told the
Court of the firm's hourly compensation:
Designations Hourly Rates
------------- ------------
Managing Director US$450
Associates US$150-US$250
Ms. Storey assured 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 & Jones
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.
MUSICLAND HOLDING: Panel Enters Settlement with 20th Century Fox
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Musicland
Holding Corp. and its debtor-affiliates has agreed to settle
its:
(i) adversary proceeding against Twentieth Century Fox Home
Entertainment LLC, formerly known as Twentieth Century
Fox Home Entertainment, Inc.; and
(ii) objection to 20th Century Fox's US$30,729,276 claim,
for a cash payment of US$589,000 and an allowed secured Fox
Claim in the reconciled amount of US$28,636,687. Both parties
have agreed to release each other against any and all claims,
causes of action, rights, liens, demands, obligations and
liabilities of any kind or nature.
The Debtors and the Informal Committee of Secured Trade Vendors
have consented to the Settlement.
Mark T. Power, Esq., at Hahn & Hessen LLP, in New York, notes
that the Committee considered the claims and defenses asserted
by Century Fox and has determined that there was substantial
risk in continuing litigation.
In making that determination, the Committee conducted its own
evaluation of the potential defenses to its claims as well as
investigating the defenses raised by Century Fox, Mr. Power
says.
In particular, the Committee concluded that a majority of the
alleged preferential transfers were subject to an ordinary
course of business defense as they were paid either (a) within
58-73 days of invoices, which appeared to be the ordinary course
of business prior to the preference period or (b) between two
days before, or four days after due date, which was also the
ordinary course of business prior to the preference period.
Furthermore, the Committee concluded that even if a few
transfers were not made in the ordinary course of business,
Century Fox had a strong new value defense based on its being
owed over US$15,000,000.
The Committee, in consultation with the Debtors and the Informal
Committee, also concluded, among other things, that an allowed
claim of US$28,636,687 was consistent with the Debtors' books
and records.
Accordingly, the Committee believes the settlement with Century
Fox is reasonable as it would result in (a) the estates' receipt
of US$589,000 without the need for costly and time-consuming
litigation in which there was substantial risk to the estates,
and (b) the fixing of the Fox Claim.
About Musicland Holding
Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products. It has operation in Puerto Rico. The Debtor and 14
of its affiliates filed for chapter 11 protection on Jan. 12,
2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James H.M.
Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in
their restructuring efforts. Mark T. Power, Esq., at Hahn &
Hessen LLP, represents the Official Committee of Unsecured
Creditors. At March 31, 2007, the Debtors disclosed
US$20,121,000 in total assets and US$321,546,000 in total
liabilities.
On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court. On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006. The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006. The hearing to consider confirmation of the
Amended Plan has been adjourned to Sept. 27, 2007. (Musicland
Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
MUSICLAND HOLDING: Wants Emergence Date Extended to October 31
--------------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates, the Official
Committee of Unsecured Creditors and the current members of the
Informal Committee of Secured Trade Vendors further agree that
the deadline set under the Debtors' Second Amended Plan for:
(a) the Confirmation Order to become a Final Order is extended
until Sept. 30, 2007; and
(b) occurrence of the Effective Date is extended until
Oct. 31, 2007.
Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products. It has operation in Puerto Rico. The Debtor and 14
of its affiliates filed for chapter 11 protection on
Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James
H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the
Debtors in their restructuring efforts. Mark T. Power, Esq.,
at Hahn & Hessen LLP, represents the Official Committee of
Unsecured Creditors. At March 31, 2007, the Debtors disclosed
US$20,121,000 in total assets and US$321,546,000 in total
liabilities.
On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court. On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006. The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006. The hearing to consider confirmation of the
Amended Plan has been adjourned to Sept. 27, 2007. (Musicland
Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
PEP BOYS: Paying US$0.0675 Per Share Dividend on Oct. 29
--------------------------------------------------------
The Pep Boys - Manny, Moe & Jack's Board of Directors approved
the payment of the next quarterly dividend of US$0.0675 per
share payable on Oct. 29, 2007, to shareholders of record on
Oct. 15, 2007. The annual dividend of US$0.27 per share
currently yields approximately 1.8%.
About Pep Boys
The Pep Boys - Manny, Moe & Jack (NYSE: PBY) --
http://pepboys.com/-- has 593 stores and more than 6,000
service bays in 36 states and Puerto Rico. Along with its
vehicle repair and maintenance capabilities, the Company also
serves the commercial auto parts delivery market and is one of
the leading sellers of replacement tires in the United States.
* * *
As reported in the Troubled Company Reporter on Sept. 22, 2006,
Standard & Poor's Ratings Services affirmed its 'B+' rating on
Pep Boys-Manny, Moe & Jack's term loan after the company
announced plans to increase the size of the facility by US$120
million to US$320 million. Proceeds from the additional US$120
million term loan will be used to refinance its convertible
notes which mature in June 2007. At the same time, the rating
on the US$357.5 million asset-based revolver was raised to 'B+'
from 'B' to properly realign its ratings with the term loan and
to reflect Standard & Poor's increased comfort with the
collateral and terms securing this facility. The 'B-' corporate
credit and other ratings were affirmed; the outlook is negative.
R&G FINANCIAL: Fitch Junks Long-Term Issuer Default Rating
----------------------------------------------------------
Fitch has downgraded the Long-term Issuer Default Rating of R&G
Financial Corporation to 'CCC' from 'BB-'. Further, R&G has
been placed on Rating Watch Negative. In addition, the Long-
term IDR of R-G Premier Bank has been downgraded to 'B' from
'BB-'.
R&G recently issued a press release detailing uncertainties
regarding relationships with certain government agencies and
GSEs, along with uncertainties related to the near-term renewal
of two credit facilities. Further, R&G indicated the need to
take mortgage impairment charges and provisions for construction
loans in third quarter of 2007. Audited financial statements
still have not been released and financial metrics for 1H07
(based on regulatory filings) compare unfavorably to other
financial institutions in the BB range. In particular, R&G
posted sizable losses in six-month period of 2007, its asset
quality problems continued to mount and its capital position
remains comparatively weak. Within the R&G organization, R&G
Premier Bank has had comparatively better results.
Nevertheless, it too has been faced with declining financial
performance and rising non-performers.
Resolution of the Rating Watch Negative will be driven by the
following factors: repayment and/or renegotiation of credit
facilities, the issuance of up-to-date, audited financial
statements, resolution of regulatory and other government-
related issues, as well as greater clarity regarding the
potential negative impact of an SEC investigation and
shareholder class action suit. Furthermore, a stabilization of
R&G's operating performance and overall financial position would
have to be attained.
The ratings of R-G Crown Bank remain on Rating Watch Positive
due to the pending sale to Fifth-Third Bancorp. The majority of
proceeds from this sale are earmarked to redeem Series A
preferred. Even after this redemption, a high level of trust
preferred securities and preferred stock will remain in R&G's
capital structure. Remaining proceeds from the sale of R-G
Crown should give R&G greater financial flexibility to fund a
potential obligation associated with an ongoing shareholder
class action lawsuit.
These ratings have been downgraded and are on Rating Watch
Negative:
R&G Financial Corporation
-- Long-term IDR to 'CCC' from 'BB-';
-- Preferred stock to 'CC/RR5' from 'B-';
-- Individual to 'D/E' from 'D';
R-G Premier Bank
-- Long-term IDR to 'B' from 'BB-';
-- Long-term deposits to 'B+/RR3' from 'BB';
-- Individual to 'D/E' from 'D'.
R&G Mortgage
-- Long-term IDR to 'CCC' from 'BB-''.
These ratings have been placed on Rating Watch Negative:
R-G Premier Bank
-- Short-term IDR 'B';
-- Short-term Deposits 'B'
These ratings are affirmed:
R&G Financial Corporation
-- Support at '5'.
R-G Premier Bank
-- Support '5'.
These ratings are on Rating Watch Positive:
R-G Crown Bank
-- Long-term IDR 'BB-';
-- Long-term deposits 'BB';
-- Individual 'D';
-- Short-term Issuer 'B';
-- Short-term Deposits 'B';
-- Support at '5'.
Headquartered in San Juan, Puerto Rico, R&G Financial Corp.
(PNK: RGFC.PK) -- http://www.rgonline.com/-- is a diversified
financial holding company with operations in Puerto Rico and the
United States, providing banking, mortgage banking, investments,
consumer finance and insurance through its wholly owned
subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage
Corporation, Puerto Rico's second largest mortgage banker, R-G
Investments Corporation, the Company's Puerto Rico broker-
dealer, and R-G Insurance Corporation, its Puerto Rico insurance
agency. At June 30, 2006, the Company operated 37 bank branches
in Puerto Rico, 35 bank branches in the Orlando, Tampa/St.
Petersburg and Jacksonville, Florida and Augusta, Georgia
markets, and 49 mortgage offices in Puerto Rico, including 37
facilities located within R-G Premier Bank's banking branches.
=================================
T R I N I D A D & T O B A G O
=================================
MIRANT CORP: Texas Court Confirms Mirant Lovett's Amended Plan
--------------------------------------------------------------
The United States Bankruptcy Court for the Northern District of
Texas - Fort Worth Division confirmed Mirant Lovett LLC's
Amended Chapter 11 Plan of Reorganization on Sept. 19, 2007,
after finding that the Plan satisfies the 13 statutory
requirements under Section 1129(a) of the Bankruptcy Code.
On Mirant Lovett's behalf, Jeff P. Prostok, Esq., at Forshey &
Prostok LLP, in Fort Worth, Texas, stepped Judge Lynn through
the Section 1129(a) requirements necessary to confirm the
proposed Plan:
1. The Mirant Lovett Plan complies with the applicable
provisions of the Bankruptcy Code thereby satisfying
Section 1129(a)(1).
Under the Lovett Plan, each class of Claims and Equity
Interests contains only Claims or Equity Interests that
are substantially similar to the other Claims or Equity
Interests within the class. Valid business, legal, and
factual reasons exist for the separate classification of
each of the Classes of Claims and Equity Interests created
under the Supplemental Plan, and the Classes do not
unfairly discriminate between or among holders of Claims
and Equity Interests.
2. Mirant Lovett has complied with all previous orders of the
Court regarding solicitation of the Lovett Plan. Mirant
Lovett has also complied with the Bankruptcy Code, the
Bankruptcy Rules and other applicable law with respect to
solicitation. Accordingly, the Mirant Lovett have complied
with Section 1129(a)(2).
3. Mirant Lovett has proposed the Lovett Plan in good faith.
As the Lovett Plan is the result of extensive, arm's-
length and good faith negotiations, it provides fundamental
fairness to all creditors and equity interest holders.
The Lovett Plan also provides Mirant Lovett's creditors
and equity interest holders with the best possible
recovery under the circumstances. Accordingly, the Lovett
Plan satisfies the requirements of Section 1129(a)(3).
4. Pursuant to the Lovett Plan, each Professional Person who
holds or asserts a Fee Claim is required to file with the
Bankruptcy Court, and serve on all parties required to
receive notice, a Fee Application within 45 days after the
effective date of the Lovett Plan. This provision is
sufficient to comply with Section 1129(a)(4).
5. The Lovett Plan satisfies the requirements of Section
1129(a)(5), because it sets forth the identities of Mirant
Lovett's directors as of the Lovett Plan Effective Date.
The directors of Mirant Lovett are highly qualified and
their appointment is clearly consistent with the interests
of Mirant Lovett and with public policy.
6. The Lovett Plan does not provide for the change of any
rate that is within the jurisdiction of any governmental
regulatory commission after the occurrence of the Lovett
Plan Effective Date. Therefore, the provisions of Section
1129(a)(6) are inapplicable.
7. The Plan satisfies Section 1129(a)(7) because the "best
interests" test is satisfied with respect to all impaired
classes of Claims and Equity Interests. Recoveries to
impaired classes under the Lovett Plan greatly exceed the
amounts the parties would receive in a liquidation.
8. Class 1 Taxing Jurisdiction Settlement Claims, Class 3
Equity Interests, and the Class 5 Priority Claims are not
impaired under the Lovett Plan, and, therefore, are deemed
to have accepted the Lovett Plan. Mirant Lovett submits
that all impaired Unsecured Classes and Convenience Classes
votes received have accepted the Lovett Plan. Therefore,
the Lovett Plan complies with Section 1129(a)(8).
9. Under the Plan, the treatment of Allowed Administrative
Claims, New York DIP Claims, Priority Claims, and Tax
Claims satisfies the requirements of Section 1129(a)(9).
10. The Lovett Plan satisfies Section 1129(a)(10) because
among other things, Class 2 Unsecured Claims Against Mirant
Lovett, and Class 4 Convenience Claims are impaired and
voted to accept the Lovett Plan, without including any
acceptance of the Lovett Plan by insiders on account of
Intercompany Claims or otherwise.
11. For purposes of determining whether the Lovett Plan
satisfies the feasibility standard, Mirant Lovett has
analyzed its ability to fulfill its obligations under the
Lovett Plan.
Mirant Lovett asserts that based on projections and
evidence provided to the Court, the Lovett Plan is
feasible; they will have sufficient cash flow to meet their
obligations under the Lovett Plan. Thus, Section
1129(a)(11) is satisfied.
12. The Lovett Plan incorporates by reference provisions of
the confirmed Joint Chapter 11 Plan of Reorganization filed
by the New Mirant Entities, which provides for the payment
of all statutory fees by Mirant Lovett on or before the
Lovett Plan Effective Date, thereby satisfying Section
1129(a)(12).
13. Mirant Lovett is not obligated to provide retiree benefits
and, thus, Section 1129(a)(13) is inapplicable.
Judge Lynn also found that the Plan complies with Section
1123(a) on the basis that:
-- it designates classes of claims as required by Section
1123(a)(1);
-- it specifies which classes of Claims and Equity Interests
are not impaired and sets forth the treatment for the
classes as required by Sections 1123(a)(2) and (3);
-- it provides for the same treatment for each Claim or
interest within a particular class as required by Section
1123(a)(4);
-- it provides for adequate means of implementation as
required by Section 1123(a)(5); and
-- it contains only provisions that are consistent with the
interests of creditors and equity securities holders as
required by Section 1123(a)(7).
In addition, the Lovett Plan provides for (i) the rejection,
assumption and assumption and assignment of executory contracts,
and (ii) an "intercompany settlement," which resolves
intercompany claims pursuant to a settlement and compromise.
Mr. Prostok stated that the Intercompany Settlement does not
affect the status of Mirant lovett as separate legal entities;
change the organizational structure of Mirant Lovett; constitute
a change of control of Mirant Lovett for any purpose; and cause
a merger or consolidation of any legal entities, nor cause the
transfer of any assets. Under its Plan, Mirant Lovett continue
to exist as separate legal entities.
Moreover, Judge Lynn authorized Mirant Lovett to take all
limited liability company actions necessary or appropriate to
implement and consummate all the provisions of the Lovett Plan.
Judge Lynn ruled that the stay contemplated by Rule 3020(e) of
the Federal Rules of Bankruptcy Procedure will terminate on
Sept. 28, 2007, at 4:00 p.m. (prevailing Central time).
On the Plan effective date, Mirant Lovett may operate its
business and use, acquire and dispose of its assets free of any
restrictions of the Bankruptcy Code.
Mirant Corporation, as the Court-approved Disbursing Agent, will
have all the powers, rights, duties and protections afforded the
Disbursing Agent under the Lovett Plan, and is authorized by the
Court to make the required Lovett Plan distributions specified
under the Lovett Plan on the relevant distriution date.
Settlements
Each of the New York Settlement, the 2007 Tax Agreement and the
2007 Amended Consent Decree is incorporated in the Confirmation
Order, and will be fully enforceable against Mirant Lovett.
Mirant Lovett will provide for the payment, by no later than the
Lovett Plan Effective Date, of any tax amount, accrued interest
or change that may be due and owing the Tax Jurisdictions as of
Sept. 19.
Special Provisions on Governmental Entities
Notwithstanding any provision to the contrary in the Lovett Plan
or the Confirmation Order, any liability of any entity or
individual relating to any pending violation of, or relating to,
the State Pollutant Discharge Elimination System water permit
program, solid and hazardous waste program, and air program for
the Lovett facility generating station, will not be subject to
discharge under the Lovett Plan or Confirmation Order, to the
extent the liability is asserted by the State of New York, its
subdivisions, or the United States.
Nothing in the Lovett Plan or Confirmation Order will adversely
affect the rights and remedies of the State of New York under
environmental laws with respect to Mirant Lovett, including
State of New York v. Mirant New York, Inc. and Mirant Lovett,
LLC No. 03 CV 4326 -- the New York Actions.
Upon the Effective date, the New York Actions will survive the
bankruptcy case and may be adjudicated and enforced in the
tribunals in New York with jurisdiction over the New York
Actions.
Judge Lynn ordered, however, that nothing will allow the state
of New York to pursue prepetition monetary claims, and Court
approval must first be obtained for any allowance of an
administrative expense.
Objections to the Lovett Plan not otherwise withdrawn,
resolved or otherwise disposed of, are overruled and denied in
their entirety.
About Mirant Corp.
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.
Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring. When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts. The
Debtors emerged from bankruptcy on Jan. 3, 2006. On
March 7, 2007, the Court entered a final decree closing 46
Mirant cases.
Mirant NY-Gen LLC, Mirant Bowline LLC, Mirant Lovett LLC, Mirant
New York Inc., and Hudson Valley Gas Corporation, were not
included. On Feb. 15, 2007, Mirant NY-Gen filed its Chapter 11
Plan of Reorganization and on Feb. 22 filed a Disclosure
Statement explaining that Plan. The Court approved the adequacy
of Mirant NY-Gen's Disclosure Statement on March 22, 2007, and
confirmed the Amended Plan on May 7, 2007. Mirant NY-Gen
emerged from chapter 11 on May 7, 2007.
On July 13, 2007, Mirant Lovett filed its Chapter 11 Plan of
Reorganization. (Mirant Bankruptcy News, Issue No. 130;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
The ratings of Mirant Corp. (Issuer Default Rating of 'B+') and
its subsidiaries remain on Fitch's Rating Watch Negative
following the company's plans to pursue alternative strategic
options including a possible purchase of Mirant by a third
party.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Inks Oil Refinery Pact with Petrobras
-------------------------------------------------------------
State-owned oil firms Petroleo Brasileiro S.A. and Petroleos de
Venezuela S.A. have reached an agreement for the creation of two
joint ventures.
The Associated Press reports that under the two joint ventures,
Petroleos de Venezuela will operate Carabobo I, an extra-heavy
oil field in Venezuela's Orinoco Basin. It will also provide
60% of the capital to the project, while Petroleo Brasileiro
will provide the rest.
The second joint venture involves the oil refinery in the
Brazilian state of Pernambuco. Funding for the refinery will be
divided between the two firms, of which 60% will come from
Petroleo Brasileiro, and the rest from its Venezuelan
counterpart, the AP adds.
As previously reported, initial works for the Pernambuco
refinery were started despite the absence of a formal agreement
between the two firms. The US$4.5 billion refinery is expected
to produce 200,000 barrels of crude per day.
About Petroleo Brasileiro
Brazilian Petroleum Corp. (Petroleo Brasileiro S.A. --
Petrobras), together with its subsidiaries, engages in the
exploration, exploitation, and production of oil from reservoir
wells, shale, and other rocks in Brazil. Petroleo Brasileiro
was founded in 1953 and is based in Rio de Janeiro,
Brazil.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
* VENEZUELA: Chavez Says South American Bank to Open in November
----------------------------------------------------------------
In a recent visit to Brazil, Venezuelan President Hugo Chavez
reiterates the need for the creation of a bank that would
counter the influence of the World Bank in the region.
EuroNews says that the Venezuelan leader said the new regional
bank will be inaugurated in November. The bank's opening was
previously set for June 26, but was delayed for undisclosed
reasons.
"This will give us the body, nerve and skeleton for southern
integration, for the union of South America, not only between
Venezuela and Brazil," President Chavez told EuroNews.
President Chavez also asked Brazil to join the South American
Trade bloc, Mercosur.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'. Fitch said the ratings'
outlook remains stable.
***********
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
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