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, October 10, 2007, Vol. 8, Issue 201 Headlines A R G E N T I N A ABA Y GIAN: Trustee Filing General Report in Court Tomorrow CHRYSLER LLC: Has Until Today to Close Negotiations with UAW CHRYSLER LLC: Third Quarter Sales Increase by 10% in 2007 DAK SA: Trustee Filing Individual Reports in Court Tomorrow EUROMAYOR SA: Fitch Arg Puts BB Rating on US$3,073,200 Notes DELTA AIR: Court Issues Final Decree Closing 17 Chapter 11 Cases FIDEICOMISO HIPOTECARIO: Fitch Arg Rates Two Debts at B(arg) FIDEICOMISO HIPOTECARIO: Fitch Arg Puts CCC(arg) Rtg. on Debt MADERWIL SA: Proofs of Claim Verification Deadline Is Feb. 5 MEDITERRANEO AUTOMOTORES: Reorganization Proceeding Concluded RONDINA SRL: Trustee Filing General Report in Court Tomorrow TELECOM ARGENTINA: Paying in Advance US$150MM of Corporate Debt WILD CAT: Proofs of Claim Verification Ends on Feb. 11, 2008 * ARGENTINA: To Discuss Club de Paris Debt Restructuring Scheme B E R M U D A FOSTER WHEELER: Units Ink Deal for Qatar Petrochemical Complex GAUDY LTD: Holding Final General Meeting on Oct. 12 INTELSAT LTD: Completes Purchase Pact with Telenor Satellite REFCO INC: 2nd Circuit Junks Appeal on Sphinx Creditors Deal WAKEFIELD TOWER: Proofs of Claim Filing Is Until Oct. 12 B R A Z I L AFFINIA GROUP: Closes Indiana Manufacturing & Packaging Assets AMRO REAL: Parent Okays Royal Bank Consortium's Takeover Bid JAPAN AIRLINES: To Book JPY20 Billion in Anticipated Losses PARANA BANCO: Acquires 3.37 Million Shares in J Malucelli BANCO NACIONAL: Okays BRL95.4-Million Loan to Nestle Nordeste COMPANHIA ENERGETICA: S&P Ups Corporate Credit Rating to B COMPANHIA PARANAENSE: Joining Federal Highway Auction COMPANHIA SIDERURGICA: In Talks with Pernambuco Over Concession DELPHI CORP: Disclosure Statement Hearing Moved to Oct. 25 DELPHI CORP: Initiates 707 Adversary Cases Under Seal GOODYEAR TIRE: Brazilian Unit Working at Full Capacity HEXCEL CORP: Embarks on US$180-Million Carbon Fiber Expansion PROPEX INC: High Leverage Prompts Moody's to Cut Rating to Caa1 PROPEX INC: S&P Places B- Corp. Credit Rating on Watch Negative REALOGY CORPORATION: Signs License Deal with Meredith SYNIVERSE TECH: Bags Saudi Telecom Anti-Fraud Contract TELE NORTE: Telemar to Purchase Preferred Shares on Oct. 11 WEIGHT WATCHERS: June 30 Balance Sheet Upside-Down by US$991,266 * BRAZIL: Will Use More Ethanol than Gasoline by 2020 C A Y M A N I S L A N D S A&Q SELECT (FEEDER): Proofs of Claim Must be Filed by Nov. 1 A&Q SELECT (LIMITED): Proofs of Claim Filing Deadline Is Nov. 1 ADMC ABSOLUTE: Holding Final Shareholders Meeting on Nov. 1 ASTPRELUDE FUND: Last Day To File Proofs of Claim Is Nov. 1 BANK OF AYUDHYA: Will Pay Interest for Debentures on Nov. 4 BANK OF AYUDHYA: Affiliate to Expand to Bancassurance Next Year BANK OF INDIA: Raises INR155 Crore from Perpetual Debt Issue BEAR STEARNS: Court Directs Liquidators to Make US$8-Mln Deposit BEAR STEARNS: Prosecutors Conduct Probe on Funds' Collapse BELMONT UNITED: Creditors Must File Proofs of Claim by Nov. 1 COLIN LUKE: Proofs of Claim Must be Filed by Nov. 1 COMPASS LTD: Sets Final Shareholders Meeting for Nov. 1 ELYSEE LIMITED: Last Day to File Proofs of Claim Is Nov. 1 LAKEPORT INVESTMENTS: Last Day to File Proofs of Claim Is Nov. 1 MOTHERROCK ENERGY FUND: Final Shareholders Meeting Is on Nov. 1 MOTHERROCK ENERGY MASTER: Final Shareholders Meeting Is Nov. 1 NEST FUNDING: Holding Final Shareholders Meeting on Nov. 1 NF HOLDING: Will Hold Final Shareholders Meeting on Nov. 1 SAILFISH GLOBAL: Proofs of Claim Filing Deadline Is Nov. 1 PINE INTERNATIONAL: Proofs of Claim Filing Deadline Is Nov. 1 PINE INVESTMENTS: Proofs of Claims Must be Filed by Nov. 1 SEAGATE TECHNOLOGY: Teams Up with Ubisoft's Frag Dolls(R) SMOKY RIVER: Proofs of Claim Filing Ends on Nov. 1 SUPER H. LIMITED: Creditors Must File Proofs of Claim by Nov. 1 C O L O M B I A KNOLL INC: Moody's Withdraws Ba3 Corporate Family Rating POLYONE CORP: To Pay US$15.2 Mil. Remediation Charge in 3rd Qtr. C O S T A R I C A * COSTA RICA: S&P Affirms Low B Foreign & Local Currency Ratings D O M I N I C A N R E P U B L I C ALCATEL-LUCENT: Says It Has 15 Commercial Contracts & 70+ Pilots ALCATEL-LUCENT: Deploys GPON Solution w/ France's Neuf Cegetel E L S A L V A D O R * EL SALVADOR: Antitrust Regulator Dumps Appeal on Fines G U A T E M A L A GOODYEAR TIRE: Extends Procurement Outsourcing Deal with ICG J A M A I C A SUGAR COMPANY: Five Sugar Factories Incur Almost J$3B in Debt M E X I C O ATARI INC: Major Stockholder Removes Five Board Members BEARINGPOINT INC: Bags US$14.1-Mil. Contract from Calif. Agency DURA AUTOMOTIVE: Plan Confirmation Hearing Set for Nov. 26 FGX INT'L: S&P Affirms B Corp. Credit Rating with Stable Outlook INTERTAPE POLYMER: Raises US$62.9MM from Common Shares Offering MOVIE GALLERY: Prepackaged Chapter 11 Plan Gets Creditors' Okay OPEN TEXT: Extends Enterprise Records Management with FaceTime REMY WORLDWIDE: Files Pre-Packaged Bankruptcy in Delaware REMY WORLDWIDE: Case Summary & 30 Largest Unsecured Creditors SPANSION INC: Inks Definitive Contract with Saifun Semiconductor P E R U BANCO DE CREDITO: Sells PEN483MM in Subordinated Notes Due 2022 P U E R T O R I C O AVNET INC: Closes Acquisition of Magirus Infrastructure Division MARGO CARIBE: John Upchurch Replaces Alison Witkovich as CFO PIER 1: Moody's Removes Caa1 Corporate Family Rating T R I N I D A D & T O B A G O MIRANT CORP: District Court Affirms Ruling on Wilson's Fees MIRANT CORP: Mirant Lovett Emerges from Bankruptcy Protection V E N E Z U E L A PEABODY ENEGY: Names Tayeb Tahir as President for China Unit * Seven LatAm Countries to Inaugurate Banco del Sur on Nov. 3 - - - - - ================= A R G E N T I N A ================= ABA Y GIAN: Trustee Filing General Report in Court Tomorrow ----------------------------------------------------------- Tito Jorge Gargaglione, the court-appointed trustee for Aba y Gian S.R.L.'s bankruptcy proceeding, will present a general report containing an audit of the firm's accounting and banking records the National Commercial Court of First Instance in Buenos Aires on Oct. 11, 2007. Mr. Gargaglione verified creditors' proofs of claim until July 4, 2007. He submitted the validated claims in court as individual reports on Aug. 30, 2007. Mr. Gargaglione is also in charge of administering Aba y Gian's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Aba y Gian S.R.L. Avenida Nazca 560 Buenos Aires, Argentina The trustee can be reached at: Tito Jorge Gargaglione Medrano 833 Buenos Aires, Argentina CHRYSLER LLC: Has Until Today to Close Negotiations with UAW ------------------------------------------------------------ Chrysler LLC has until 11 a.m. today to close its contract negotiations with the United Auto Workers union, otherwise 49,000 union members will hold strike against the company, according to various papers citing people familiar with the matter. As reported in yesterday's Troubled Company Reporter-Latin America, the UAW disclosed a 72-hour notice, on Oct. 6, 2007, for a potential strike, forcing the carmaker to reach an agreement with the union after talks intensified over the weekend. Sources say that the union will likely defer discussions on an hourly or daily basis. Both parties, analysts suggests, may come up with a contract patterned after General Motors Corp.'s tentative agreement with the union, although, may call for cost cuts in different places as Chrysler's needs are distinct from GM's requirements. Various papers relates that owner Cerberus Capital Management LP doesn't want to be burdened with the cost of transferring retiree health care administration to the UAW. As previously reported, GM and the UAW reached a tentative agreement on a new national labor contract after more than 73,000 UAW union members throughout the United States went on strike against GM. The tentative agreement, covering approximately 74,000 represented employees, includes a memorandum of understanding to establish an independent retiree health care trust, as well as other changes to the national agreement. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC's (B/Negative/--) US$10 billion senior secured first-lien term loan facility due 2013, following various changes to terms and conditions prior to closing. The US$10 billion first-lien term loan now consists of a US$5 billion "first-out" tranche and a US$5 billion "second-out" tranche, so the aggregate amount of first-lien debt remains unchanged. Accordingly, S&P assigned a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first- lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. CHRYSLER LLC: Third Quarter Sales Increase by 10% in 2007 --------------------------------------------------------- Chrysler LLC has announced an increase of 10 percent compared to the same period of 2006 in the third quarter of 2007. From July to September, Chrysler sold 149,800 vehicles outside of the U.S. Third quarter figures include a 20 percent sales increase Internationally, outside of North America (62,516 units); a 5.5 percent sales increase in Mexico (30,648 units); and a sales increase of 2.8 percent in Canada (56,636 units). Chrysler's worldwide vehicle sales declined 3 percent during the third quarter of 2007 to 615,530 units (2006: 634,656 units). Sales increases in select markets were driven by the worldwide appeal and strong customer interest in Chrysler's new vehicles, including the Jeep(R) Wrangler, Jeep Compass and Jeep Patriot. "The North American market will continue to be vital to the overall growth of Chrysler," said Steven Landry, Executive Vice President - North American Sales. "Although the U.S. is our largest market, it is important to note the growing importance of regions like Canada and Mexico that are contributing more and more to this Company, as we expand our product portfolio to meet the needs of our global customer base." Chrysler's International Markets Fueled by demand for new Jeep and Dodge models, third quarter sales for markets outside North America were up 20 percent to 62,516 units during the third quarter (2006: 52,114 units). For the month of September, sales increased 12.3 percent to 23,016 units, bringing the number of consecutive months for year-over- year sales improvement to 28. Many new models have had a significant impact on the recent increases. Jeep Wrangler sales of 11,650 units in 2007 have nearly doubled last year's total for the same time period. And the recently introduced Dodge Nitro was among the top-selling vehicles Internationally in September. "The Company is now experiencing the strength of our International product offensive," said Michael Manley -- Executive Vice President of International Sales, Marketing and Business Development. "Though we have achieved approximately 20 percent growth this year, we recognize that we are working from a relatively low base, and continue to have opportunity to grow. We are however, pleased for our dealers who have worked hard and had the confidence to invest in us. As we move forward, we will continue to focus on them and satisfying our customers, as that is the key to our continued success." Chrysler Mexico Posting its best September ever, Chrysler Mexico sales rose 3.2 percent to 10,543 units in September 2007. SUV sales were up 62.4 percent for the month while total trucks advanced 20.6 percent. Also posting an all-time third quarter record, from July to September, Chrysler Mexico sales rose 5.5 percent to 30,648 units (2006: 29,055 units). Chrysler Canada Chrysler Canada recorded another successful month of sales extending the growth streak to 14 months in a row. Chrysler Canada September sales of 17,011 vehicles rose 5.1 percent over the same month last year. During the third quarter, sales also advanced 2.8 percent in Canada to 56,636 units. Chrysler's U.S. market In the highly competitive market environment of the U.S., Chrysler sales declined 5.4 percent to 159,799 units in September 2007, driven by planned fleet reductions of 21 percent. However, Chrysler brand car sales rose 10 percent year-over-year in September led by the Sebring Sedan and Convertible. Dodge brand sales, aided by the Ram Pickup and Nitro, advanced 5 percent from the same period last year. And the Jeep Wrangler continued to make progress with sales up 71 percent for the month. During the third quarter, sales in the U.S. declined 6.6 percent to 465,730 units in 2007 (2006: 498,402 units). The Recovery and Transformation Plan helps facilitate International growth outside of North America To help the Company expand globally, a team from the Recovery and Transformation Plan is working on many fronts to assess new International growth opportunities and prepare Chrysler for expansion in select International markets. The International Growth team aims to identify the right products and entry strategies to introduce Chrysler, Jeep and Dodge brands to targeted audiences and develop a more balanced global footprint. This team is working with Product Strategy to develop vehicles aimed at International markets. The recent appointments of Philip Murtaugh as Chief Executive Officer -- Asia Operations and John Stech as the Head of Chrysler Russia LLC further underscore Chrysler's commitment to these markets as they continue to grow and expand. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC's (B/Negative/--) US$10 billion senior secured first-lien term loan facility due 2013, following various changes to terms and conditions prior to closing. The US$10 billion first-lien term loan now consists of a US$5 billion "first-out" tranche and a US$5 billion "second-out" tranche, so the aggregate amount of first-lien debt remains unchanged. Accordingly, S&P assigned a 'BB-' rating to the US$5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the US$5 billion "second-out" first- lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. DAK SA: Trustee Filing Individual Reports in Court Tomorrow ----------------------------------------------------------- Roberto Alfredo Mazzarella, the court-appointed trustee for Dak 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 Oct. 11, 2007. Mr. Mazzarella verified creditors' proofs of claim until Aug. 24, 2007. He will also present a general report containing an audit of Dak's accounting and banking records in court on Nov. 29, 2007. Mr. Mazzarella is also in charge of administering Dak's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Roberto Alfredo Mazzarella Ortega y Gasset 1827 Buenos Aires, Argentina EUROMAYOR SA: Fitch Arg Puts BB Rating on US$3,073,200 Notes ------------------------------------------------------------ Fitch Argentina assigned a BB rating on Euromayor S.A. de Inversiones' Obligaciones Negociables Series I for US$3,073,200. Fitch also placed a BB rating on the company's Obligaciones Negociables Series II for US$3,078,173. Euromayor SA de Inversiones -- http://www.euromayor.com/english/empresa.htm-- is controlled by the ECIPSA Group, a holding company aiming at real estate developments, which are innovative, different and of high impact on important Argentine cities. DELTA AIR: Court Issues Final Decree Closing 17 Chapter 11 Cases ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York issued a final decree closing the Chapter 11 cases of 17 of Delta Air Lines Inc.'s reorganized debtor-affiliates, effective Sept. 28, 2007, pursuant to Section 350(a) of the Bankruptcy Code and Rule 3022 of the Federal Rules of Bankruptcy Procedure. The cases closed are: Debtor Case No. ------ -------- ASA Holdings, Inc. 05-17946 Comair Holdings, LLC 05-17931 Comair Services, Inc. 05-17935 Crown Rooms, Inc. 05-17922 DAL Aircraft Trading, Inc. 05-17941 DAL Global Services, LLC 05-17928 DAL Moscow, Inc. 05-17937 Delta Airelite Business Jets, Inc. 05-17942 Delta Benefits Management, Inc. 05-17945 Delta Connection Academy, Inc. 05-17926 Delta Corporate Identity, Inc. 05-17939 Delta Loyalty Management Services, LLC 05-17932 Delta Technology, LLc 05-17927 Delta Ventures III, LLc 05-17936 Epsilon Trading, LLC 05-17943 Kappa Capital Management, Inc. 05-17947 Song, LLC 05-17921 As reported in the Troubled Company Reporter on Sept. 27, 2007, Timothy E. Graulich, Esq., at Davis, Polk & Wardwell, in New York, told the Court that the 17 estates meet each of the six factors: (1) The Court's Order on April 25, 2007, confirming the Reorganized Debtors' Plan is final; notwithstanding it being subjected to a single appeal restricted to the narrow question of the scope of exculpation clauses in the Plan that are applicable to UMB Bank, N.A.; (2) Delta has established reserves of stock that will be distributed to the Creditors of Delta and Comair, Inc., which do not implicate the Fully Administered Cases; (3) Delta has distributed and transferred the cash, stock, notes and other property, to be disbursed following the confirmation of the Plan; (4) Pursuant to the Plan, the Reorganized Debtors have assumed management of the reorganized estates, with the election of a new Board of Directors; (5) One interim distribution to Creditors has been made and one to be contemplated in November 2007. The distributions are not being made out of the assets of the Fully Administered Cases' estates; and (6) All pending motions, contested matters, and adversary proceedings will be resolved using the pools of assets established by the Plan, and will not affect the Fully Administered Cases. Mr. Graulich adds that the 17 reorganized debtor-affiliates' cases are inactive and that the Debtors' bankruptcy cases are substantively limited to Delta and Comair. In addition, the closing will be cost-effective. Since there will be no remaining administration required with respect to the Fully Administered Cases, no U.S. Trustee fees will be incurred. The request is frequently granted in large bankruptcy cases where only a few of the cases need to remain open for purposes of administering the estate, Mr. Graulich notes. Pursuant to 28 U.S.C. Section 1930(a)(6), a debtor in a chapter 11 case must pay the U.S. Trustee a quarterly payment for each bankruptcy case that it administers. Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. As of June 30, 2005, the company's balance sheet showed US$21.5 billion in assets and US$28.5 billion in liabilities. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 2007, the Court confirmed the Debtors' plan. (Delta Bankruptcy News, Issue No. 80; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on July 16, 2007, Fitch Ratings has initiated coverage of Delta Air Lines Inc. with the assignment of these debt ratings: issuer default rating 'B'; First-lien senior secured credit facilities 'BB/RR1'; and Second-lien secured credit facility (Term Loan B) 'B/RR4' As reported in the Troubled Company Reporter on May 2, 2007, Standard & Poor's Ratings Services raised its ratings on Delta Air Lines Inc. (B/Stable/--), including raising the corporate credit rating to 'B', with a stable outlook, from 'D', following the airline's emergence from Chapter 11 bankruptcy proceedings. FIDEICOMISO HIPOTECARIO: Fitch Arg Rates Two Debts at B(arg) ------------------------------------------------------------ Fitch Argentina has rated Fideicomiso Hipotecario BHN II's four debts: -- TD Clase A1 VN US$44.554.000 B(arg) -- TD Clase A2 VN US$51.363.000 B(arg) -- TD Clase B VN US$3.730.000 B-(arg) -- CP VN US$6.927.337 CCC(arg) The rates given show the lack of resolution towards the pesofication of the titles, which has negatively affected the amount that the investors would receive, even considering the pesofication. Today, the amount of the funds kept in the Fideicomiso BHN II reaches US$12.1 million and US$4.8 million. The funds are enough to pay the TD Clase A1, A2 and B. Some holders of TD Clase A1 and A2 presented legal claims at the Argentine court, which has not been given any result yet. If considering the pesification, the TD Clase A1, A2 and the BHN II should have already been paid, though holders asked this not to happen until the court solves this situation. The original currency of the titles was dollar. FIDEICOMISO HIPOTECARIO: Fitch Arg Puts CCC(arg) Rtg. on Debt ------------------------------------------------------------- Fitch Argentina has rated Fideicomiso Hipotecario BHN III's four debts: -- TD Clase A1 VN US$44.554.000 B(arg) -- TD Clase A2 VN US$51.363.000 B(arg) -- TD Clase B VN US$3.730.000 B-(arg) -- CP VN US$6.927.337 CCC(arg) The rates given show the lack of resolution towards the pesofication of the titles, which has negatively affected the amount that the investors would receive, even considering the pesofication. Today, the amount of the funds kept in the Fideicomiso BHN III reaches US$12.1 million and US$4.8 million. The funds are enough to pay the TD Clase A1, A2 and B. Some holders of TD Clase A1 and A2 presented legal claims at the Argentine court, which has not been given any result yet. If considering the pesification, the TD Clase A1, A2 and the BHN II should have already been paid, though holders asked this not to happen until the court solves this situation. The original currency of the titles was dollar. MADERWIL SA: Proofs of Claim Verification Deadline Is Feb. 5 ------------------------------------------------------------ Eduardo Salomon Zalutzky, the court-appointed trustee for Maderwil SA's bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 5, 2008. Mr. Zalutzky will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 7 in Buenos Aires, with the assistance of Clerk No. 14, 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 Maderwil 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 Maderwil's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Zalutzky is also in charge of administering Maderwil's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Maderwil SA Juan B. Alberdi 1619 Buenos Aires, Argentina The trustee can be reached at: Eduardo Salomon Zalutzky Lavalle 1523 Buenos Aires, Argentina MEDITERRANEO AUTOMOTORES: Reorganization Proceeding Concluded ------------------------------------------------------------- Mediterraneo Automotores S.A.'s reorganization proceeding has ended. Data published by Infobae on its Web site indicated that the process was concluded after the National Commercial Court of First Instance in Salta approved the debt agreement signed between the company and its creditors. The debtor can be reached at: Mediterraneo Automotores SA Avenida Hipolito Yrigoyen 631 Salta, Argentina Tel: 0387 4310858 / 4215665 E-mail: mediterraneoautomotoressa@yahoo.com.ar RONDINA SRL: Trustee Filing General Report in Court Tomorrow ------------------------------------------------------------ Ernesto Horacio Garcia, the court-appointed trustee for Rondina S.R.L.'s bankruptcy proceeding, will file a general report containing an audit of the firm's accounting and banking records in the National Commercial Court of First Instance in Buenos Aires on Oct. 11, 2007. Mr. Garcia verified creditors' proofs of claim until June 29, 2007. He presented the validated claims in court as individual reports on Aug. 29, 2007. Mr. Garcia is also in charge of administering Rondina's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Ernesto Horacio Garcia Sarmiento 1587 Buenos Aires, Argentina TELECOM ARGENTINA: Paying in Advance US$150MM of Corporate Debt --------------------------------------------------------------- Argentine news daily El Cronista reports that Telecom Argentina would make a US$150-million advance payment on its corporate debt on Oct. 16, 2007. Business News Americas relates that Telecom Argentina initially planned to make the debt payment in two tranches in April and October 2008. According to BNamericas, the advance payment accounts for 7.11% of the original capital of a bond denominated in euros due 2014 and 7.47% of another bond denominated in dollars due 2011. Argentine equity fund management company Capital Markets Argentina said in a report that about 93% of Telecom Argentina's debt is concentrated in corporate bonds. Telecom Argentina's consolidated debt includes the debt loads of its mobile units Telecom Personal and Nucleo. BNamericas notes that Telecom Argentina's consolidated financial debt was ARS3.60 billion as of June 2007. Telecom Argentina has sufficient debt profile as 63.6% of it is structured in the long term, BNamericas states, citing Capital Markets. 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'. WILD CAT: Proofs of Claim Verification Ends on Feb. 11, 2008 ------------------------------------------------------------ Alberto Misino, the court-appointed trustee for Wild Cat S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 11, 2008. Mr. Misino will present the validated claims in court as individual reports on March 26, 2007. The National Commercial Court of First Instance in Cordoba 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 Wild Cat 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 Wild Cat's accounting and banking records will be submitted in court on June 18, 2008. Mr. Misino is also in charge of administering Wild Cat's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Wild Cat S.A. Humberto Primo 299, Ciudad de Cordoba Cordoba, Argentina The trustee can be reached at: Alberto Misino Avenida General Paz 108, Ciudad de Cordoba Cordoba, Argentina * ARGENTINA: To Discuss Club de Paris Debt Restructuring Scheme --------------------------------------------------------------- The Argentine government, from October 18 to 22, will discuss a plan for paying the debt that it has with the Club de Paris in five years. The debt totals US$6.100 million. The meeting will be on the next annual assembly of the International Monetary Fund. Argentine stopped paying the debt on Dec. 2001. Top creditors are Germany with 28%, followed by Japan with 17%, Nertherlands with 16%, and U.S. for 5%, among others. The government will not intend to mix the payment of the Club de Paris with the bondholders who did not accept the exchange for leaving default last two years. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 ============= B E R M U D A ============= FOSTER WHEELER: Units Ink Deal for Qatar Petrochemical Complex -------------------------------------------------------------- Foster Wheeler Ltd.'s two subsidiaries in its Global Engineering and Construction Group have been awarded contracts by Qatar Intermediate Industries Holding Co. Ltd., a fully owned subsidiary of Qatar Petroleum, to execute the front-end engineering design (FEED) and to provide project management and construction management (PMCM) services for a new grassroots petrochemical complex to be located at Mesaieed in Qatar. Qatar Holding is in the process of establishing a joint venture company for this project with Honam Petrochemical Corporation of Korea. In addition to the usual FEED scope, Foster Wheeler's work also includes the procurement of long-lead items. The Foster Wheeler FEED contract value, which was not disclosed, will be included in the company's third-quarter 2007 bookings. A portion of the PMCM contract relating to services to be provided up to award of engineering, procurement and construction contracts, will be booked in the fourth quarter of 2007 with the remainder being booked at a later date. The new complex will include world-scale olefins and aromatics units, which will supply ethylene, propylene and benzene to the downstream polypropylene, ethylbenzene, styrene monomer and polystyrene facilities. The complex, which will also include ethylene-to-propylene conversion units, is scheduled for completion in 2011. "Foster Wheeler has established itself as a key global contractor in the chemical and petrochemical sector," said Steve Davies, chairman and chief executive officer, Foster Wheeler Energy Limited. "We will leverage our extensive experience, in- depth technical expertise and our proven ability to execute large, complex projects to help our client meet its objectives in realizing this major grassroots investment." Mohammed K. Turki Al-Sobai, managing director and chief executive officer, Qatar Intermediate Industries Holding Co. Ltd., expressed his pleasure for selecting Foster Wheeler to conduct the FEED and PMCM for this very important project for Qatar Holding. Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter on Dec. 18, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the company. The company had about US$217 million of total debt at Sept. 29, 2006. GAUDY LTD: Holding Final General Meeting on Oct. 12 --------------------------------------------------- Gaudy Ltd.'s final general meeting is scheduled on Oct. 12, 2007, at 9:30 a.m., at: Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. INTELSAT LTD: Completes Purchase Pact with Telenor Satellite ------------------------------------------------------------ Intelsat Ltd. and Telenor Satellite Broadcasting have completed an agreement, for Intelsat to purchase 10 transponders on Telenor's THOR 6 satellite, due to launch in second quarter of 2009. Under the contract, Intelsat will gain additional capacity to expand its growing DTH business within Central and Eastern Europe. For both Telenor and Intelsat, it paves the way to continuing combined efforts to further develop 1 degree W as a leading broadcasting position in this region. "For Telenor Satellite Broadcasting and Intelsat, this contract signifies the joint ambition to make 1 degree W the choice platform for broadcasting services in Central and Eastern Europe," said Cato Halsaa, CEO of Telenor Satellite Broadcasting. "We look forward to a fruitful and successful cooperation." David McGlade, CEO of Intelsat said, "Central and Eastern Europe is fast becoming a highly competitive market, placing ever- increasing demands for quality DTH capacity. This agreement represents a new phase in growing our long-standing relationship with Telenor Satellite Broadcasting and enables us to provide our customers with the capacity required to support their future expansion plans in this region." THOR 6 will be based on a Thales Alenia Space Spacebus 4000B2 platform, fitted with 36 Ku-band transponders. Twenty transponders will be positioned to serve the growing business demands in Central and Eastern Europe and the satellite will be launched on either an Ariane 5 or a Soyuz launcher from the Guiana Space Centre in French Guiana. About Telenor Satellite Telenor Satellite Broadcasting -- http://www.telenorsbc.com/-- is part of Telenor Broadcast, one of the three core businesses of Norway's leading communications operator, Telenor ASA. Telenor Satellite Broadcasting provides extensive television broadcasting services for distribution, contribution and occasional applications to all the Nordic Broadcasters and many other broadcasters throughout Europe, using its hybrid network comprised of (three) satellites, terrestrial circuits and earth stations. Additionally, it provides fixed satellite communication and uplinking services for data and remote Internet applications together with VSAT and broadband services in Europe and the Middle East. About Intelsat Intelsat, headquartered in Bermuda, is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. As reported in the Troubled Company Reporter-Latin America on June 22, 2007, Moody's Investors placed the long-term debt ratings of the Intelsat Ltd. group of companies on review for possible downgrade. Issuer: Intelsat (Bermuda), Ltd. -- Senior Unsecured Bank Credit Facility, Placed on Review for Possible Downgrade, currently B2 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Caa1 Issuer: Intelsat Corporation -- Senior Secured Bank Credit Facility, Placed on Review for Possible Downgrade, currently Ba2 -- Senior Secured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Ba2 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B2 Issuer: Intelsat Holding Corporation -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Caa1 Issuer: Intelsat Intermediate Holding Company, Ltd. -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B3 Issuer: Intelsat Subsidiary Holding Co. Ltd. -- Senior Secured Bank Credit Facility, Placed on Review for Possible Downgrade, currently Ba2 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B2 Issuer: Intelsat, Ltd. -- Probability of Default Rating, Placed on Review for Possible Downgrade, currently B2 -- Corporate Family Rating, Placed on Review for Possible Downgrade, currently B2 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Caa1 Outlook Actions: Issuer: Intelsat, Ltd. -- Outlook, Changed To Rating Under Review From Stable As reported in the Troubled Company Reporter-Latin America on June 22, 2007, Fitch Ratings placed these Intelsat Ltd. ratings on Rating Watch Negative: -- Issuer Default Rating 'B'; -- Senior unsecured notes 'CCC/RR6'. Fitch also placed the ratings of Intelsat's subsidiaries on Rating Watch Negative. Fitch placed these ratings of Intelsat subsidiaries on Rating Watch Negative: Intelsat (Bermuda), Ltd. -- Issuer Default Rating 'B'; -- Senior unsecured guaranteed notes 'BB-/RR2'; -- Guaranteed Term Loan 'BB-/RR2'; -- Senior unsecured non-guaranteed notes 'CCC+/RR6'. Intelsat Intermediate Holding Company, Ltd. (Int Holdco) -- Issuer Default Rating 'B'; -- Senior unsecured discount notes 'B-/'RR5'. Intelsat Subsidiary Holding Company, Ltd. (Sub Holdco) -- Issuer Default Rating 'B'; -- Senior secured credit facilities 'BB/RR1'; -- Senior unsecured notes 'BB-/RR2'. Intelsat Corporation (f/k/a PanAmSat Corporation) -- Issuer Default Rating (IDR) 'B'; -- Senior secured credit facilities 'BB/RR1'; -- Senior secured notes 'BB/RR1'; -- Senior unsecured notes 'B/RR4'. As reported in the Troubled Company Reporter-Latin America on June 21, 2007, Standard & Poor's Ratings Services lowered its ratings on Pembroke, Bermuda-based Intelsat Ltd. and affiliated entities, including the corporate credit rating, which was lowered to 'B+' from 'BB-'. All ratings were immediately placed on CreditWatch with negative implications. REFCO INC: 2nd Circuit Junks Appeal on Sphinx Creditors Deal ------------------------------------------------------------ The United States Court of Appeals for the Second Circuit on Oct. 5 rejected an appeal by certain investors and the Joint Official Liquidators of SPhinX Managed Futures Fund SPC from a lower court ruling approving a deal between Refco creditors and SPhinX. A three-man panel upheld a November 2006 order of the U.S. District Court for the Southern District of New York affirming a ruling of the U.S. Bankruptcy Court for the Southern District of New York approving the settlement of a preference action initiated by the Official Committee of Unsecured Creditors on behalf of Refco Capital Markets, Ltd., against SPhinX. The Second Circuit held that investors at SPhinX have no standing to contest the settlement, and that Kenneth M. Krys and Christopher Stride, the Cayman Islands liquidators for SPhinX, are precluded from appealing the settlement. Prior to Refco's collapse in October 2005, directors at SPhinX had hired PlusFunds Group, Inc., a registered investment advisor, to manage SPhinX in exchange for management fees. The Investors alleged that PlusFunds in turn hired Refco Alternative Investments to oversee Refco-related investments for SPhinX. According to the Investors, RAI regularly executed trades for Sphinx, as directed by PlusFunds, and oversaw its margin cash. The Investors further alleged that RAI, at PlusFunds' direction, caused SPhinX's excess margin cash to be invested in accounts at RCM. On Oct. 10, 2005, Refco Inc., announced it had discovered a substantial, previously undisclosed liability that caused a crisis of confidence in RCM's ability to accommodate client withdrawals. On Oct. 17, 2005, Refco and certain of its affiliates sought bankruptcy protection. Five days prior to the bankruptcy filing, US$312,046,266 in funds were transferred from the SPhinX accounts at RCM to its affiliate Refco LLC, and ultimately to accounts held on behalf of the cells at Lehman Brothers. The Investors alleged that the transfer was made at the behest of PlusFunds CEO Chris Sugrue, who, the Investors said, maintained previously undisclosed allegiances to Refco. On Dec. 16, 2005, the Committee commenced an adversary proceeding to recover the transfer made to the cells. SPhinX argued it was inequitable to allow RCM to recover the entire US$312,000,000 because RCM and its non-debtor affiliates had abused the bankruptcy process to the detriment of SPhinX. At the close of discovery in April 2006, and on the eve of an argument on the Committee's request for summary judgment, the Committee and SPhinX agreed to settle. SPhinX agreed to return US$263,000,000 to the RCM estate and waive any claim against RCM related to the transfer, including any claim pursuant to Section 502(h) of the Bankruptcy Code. The Investors called the "worse-than-losing" Settlement a result of an "incestuous relationship" between Refco, PlusFunds, and SPhinX. The Investors said SPhinX agreed to return all but about 15% of the purported preference and to abandon any future claims against the RCM estate arising from the transfer at issue. The Committee responded that the settlement was fair given the weakness of SPhinX's defenses, and the cost, expense, and delay associated with further litigating the legal and factual issues in the adversary proceeding. The Committee justified the inclusion of the Section 502(h) waiver in the Settlement as reasonable, because: (1) in order to assert a claim pursuant to Section 502(h), SPhinX would have been required to repay the full amount of the transfer, which SPhinX contended it could not do consistent with Cayman law, (2) Sphinx, unlike other creditors of the RCM estate, would recover on its related claims against RCM immediately through the Settlement and did not have to wait for a plan of reorganization, and (3) even if SPhinX satisfied the requirement for making a Section 502(h) claim by returning the entire amount of the transfer, plus interest, other parties may have sought to equitably subordinate SPhinX's claim against RCM. Under Section 502(h) of the Bankruptcy Code, a claim of a transferee of an avoidable transfer will be disallowed if the transferee does not pay the owed amount or turn over the property as required under the Bankruptcy Code. Bankruptcy Judge Robert D. Drain approved the Settlement as being in the best interests of the Refco Debtors, their estates and creditors. Judge Drain held that the Investors lacked standing to object because they were not a "party in interest" under Section 1109(b). The Bankruptcy Court held as a matter of law that the Settlement affected the Investors as equity holders in SPhinX only indirectly. The District Court agreed, finding that the Investors were "not directly and adversely affected pecuniarily by the challenged ruling of the Bankruptcy Court because they do not hold a direct interest in the Debtor." On appeal, the Second Circuit said the Investors cannot claim that they seek to enforce any rights distinct from those of SPhinX as a creditor and a defendant in an adversary proceeding. The Second Circuit said SPhinX is a single legal entity, and that the individual cells are not legally separate entities from SPhinX. By investing in SPhinX, the Investors placed control of their funds entirely within the hands of the SPhinX directors or managers acting on the directors' behalf. Only SPhinX, the Second Circuit held, not individual Investors, or even Investors as a group, could assert a claim against the Refco estate, and only SPhinX was permitted to negotiate a settlement with the Committee. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. Refco has operations in Bermuda. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. (Refco Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000) WAKEFIELD TOWER: Proofs of Claim Filing Is Until Oct. 12 -------------------------------------------------------- Wakefield Tower Investment Fund Ltd.'s creditors are given until Oct. 12, 2007, to prove their claims to Carolynn D. Hiron, 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. Wakefield Tower's shareholders agreed on Sept. 12, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Carolynn D. Hiron Williams House, 20 Reid Street Hamilton, Bermuda =========== B R A Z I L =========== AFFINIA GROUP: Closes Indiana Manufacturing & Packaging Assets -------------------------------------------------------------- Affinia Group Inc. is closing its chassis products manufacturing and packaging facility in Mishawaka, Indiana. Production and packaging will be consolidated into its Oklahoma City facility. The distribution of the product will continue out of the McHenry, Illinois master distribution center. The transition will begin immediately and is expected to be complete by mid-2008. "The consolidation of the Mishawaka chassis manufacturing and packaging into Oklahoma City is another important step in Affinia's transformation plan," John R. Washbish, president of Affinia's Under Vehicle Group, said. "The competitive landscape is constantly changing, and like many companies we continue to evaluate every aspect of our business to adapt to current market conditions." "This closure in no way reflects on the talents or dedication of the 192 hard-working people of Mishawaka," Mr. Washbish said. "We deeply regret the impact on the lives of our employees and their families. We will work closely with them and provide all the help we can, including the option of transfers to Oklahoma City, as well as local placement and career assistance wherever possible." About Affinia Group Headquartered in Ann Arbor, Michigan, Affinia Group Inc. -- http://www.affiniagroup.com/-- designs, manufactures and distributes aftermarket components for passenger cars, sport utility vehicles, light, medium and heavy trucks and off-highway vehicles. The company's product range addresses filtration, brake and chassis markets in North and South America, Europe and Asia. Its South American operation is located in Brazil. * * * In January 2007, Moody's Investors Service placed Affinia Group Inc.'s long-term corporate family and probability of default ratings at 'B2', which still hold to date. Moody's said the outlook is stable. Standard & Poor's placed the company's foreign and local issuer credit ratings at 'B' in September 2005, which still hold to date. AMRO REAL: Parent Okays Royal Bank Consortium's Takeover Bid ------------------------------------------------------------ A consortium of three banks led by the Royal Bank of Scotland told Business News Americas that Spain's Santander will walk away with ABN Amro Real after holders of 86% of Dutch bank ABN Amro authorized the group's takeover bid. Once Banco Santander would take control of ABN Amro Real, the Brazilian unit of the Dutch company, Santander Banespa will become the biggest private bank in the country, surpassing Banco Itau Holding Financeira SA. The deal has already gotten approval from the Dutch finance minister in September. According to published reports, the consortium priced the deal at EUR71.1 billion in May 2007, with Santander paying some EUR12 billion for ABN Amro Real, which accounted for 95% of ABN Amro's operating income in Latin America. The consortium told BNamericas that its offer would be made "unconditional" by Oct. 12, 2007. About The Royal Bank of Scotland The Royal Bank of Scotland Group plc is the holding company of The Royal Bank of Scotland plc and National Westminster Bank Plc, which are UK-based clearing banks. RBS provides a range of products and services to personal, commercial and large corporate and institutional customers. The company's activities are organized into six business divisions: Corporate Markets (comprising Global Banking and Markets and UK Corporate Banking), Retail Markets (comprising Retail Banking and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. About Banco Santander Banco Santander, S.A., fka Banco Santander Central Hispano, S.A., is a financial group that offers a range of financial products. At the primary level, the bank's operating units are segmented by geographical areas. The Continental Europe segment covers all banking, wholesale banking and asset management, and insurance conducted in Europe, with the exception of the operations of the bank's subsidiary, Abbey National plc (Abbey). The UK (Abbey) segment includes the operations of Abbey, which is focused on retail banking and insurance. The Latin America segment includes financial activities conducted via the bank's subsidiaries. The primary level of segmentation also includes the Financial Management and Equity Stakes segment. At the secondary level, the Bank's operating units are segmented by various types of business: Retail Banking, Asset Management and Insurance, and Global Wholesale Banking. About ABN Amro Headquartered in Amsterdam, ABN AMRO Holding N.V. is the ultimate parent company of the ABN AMRO consolidated group of companies. It provides a range of financial services on a worldwide basis, including consumer, commercial and investment banking. Its group structure comprises: seven Client business units (BUs), three Product Bus, two cross-BU Segments, Group Functions and Services. About ABN Amro Real ABN Amro Real specializes in commercial banking, capital markets, corporate banking, asset management, and trade finance. Its more than 22,000 employees assist over five million clients throughout five thousand different points of sales. In 1999, the bank merged with Brazil's Banco Real. The regional office for Latin America and the Caribbean is located in Brazil. * * * On Aug. 23, 2007, Moody's Investors Service upgraded Banco ABN AMRO Real S.A.'s long-term foreign currency deposits to Ba2. Moody's said the rating outlook is stable. JAPAN AIRLINES: To Book JPY20 Billion in Anticipated Losses ----------------------------------------------------------- Japan Airlines International Co., Ltd., expects to book about JPY20 billion in losses in anticipation of a potentially huge fine for its apparent involvement in an international airfare cartel, sources of The Asahi Shimbun revealed. The Asahi Shimbun writes that this comes after the U.S. Justice Department fined British Airways Plc and Korean Air Lines Co. US$300 million each (about JPY36 billion) in August for fixing the prices of passenger and cargo flights with other airlines to set fuel surcharges due to oil price hike. Reportedly, U.S. authorities have indicated that other airlines could face heavy fines as the investigations are ongoing. One executive of the Tokyo-based airline said to Asahi Shimbun, that no provision had been set aside by JAL for anticipated losses due for the fine because the company was not able to "even predict the amount involved." JAL, which has seen a decrease in the number of passengers due to a string of flight mishaps, said that it will include the JPY20 billion in losses in its Nov. 6 announcement in its financial results for the first half of the current fiscal year, notes Asahi Shimbun. The article conveys that JAL, before making the announcement, will discuss the details with its auditing company. However, according to the report, JAL is projecting a consolidated net profit of JPY7 billion for the year ending March 2008 despite the fact that the JPY20 billion in loss will eat into the projected profit. According to the sources, JAL officials maintain the company will be able to avoid a downward revision due to the sale of its assets and other measures that will counter the losses, states Asahi Shimbun. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * The Troubled Company Reporter - Asia Pacific reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. The outlook on the long-term corporate credit rating is negative. The TCR-AP reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. The rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. PARANA BANCO: Acquires 3.37 Million Shares in J Malucelli --------------------------------------------------------- Parana Banco's investor relations coordinator, Mauricio Fanganiello, told Business News Americas that the bank has acquired 3.37 million shares in insurer J Malucelli. This is the first stage of a share swap with investment fund Advent International, BNamericas says, citing Mr. Fanganiello. Mr. Fanganiello told BNamericas that Parana Banco acquired last week about 800,622 common shares and some 2.57 million preferred shares in J Maulcelli. The bank is awaiting the insurance regulator Susep's permission to acquire additional 2.15 million common shares and 1.64 million preferred shares. According to BNamericas, Parana Banco will grant Advent International some 4.57 million in non-voting shares, or 6.60% of its share capital, in return. Parana Banco launched an initial public offering in June 2007. It set up the share swap with Advent International to regain control of J Malucelli, BNamericas states. About Advent International Buyout firm Advent International invests in companies in a variety of industries in North America and Western Europe. Target firms use the company's infusions of cash (up to $500 million) for international expansion, restructuring, or to fuel high-growth sub-sectors. Advent International finances companies in developing markets such as Central Europe, Brazil, and Argentina to the tune of US$20 million to US$60 million. The company also provides venture capital to companies in the health care and technology fields. An active investor, Advent usually liquidates its investment through a sale or an IPO after three to seven years. About Parana Banco Parana Banco is a niche bank in the segment of payroll discount lending, primarily to public-sector employees. The bank's adjusted total assets of US$375 million as of June 2006 represented less than 1% of total assets in the Brazilian banking industry. The bank is a relevant part of a broader conglomerate (J. Malucelli), with operations in different sectors and concentrated in the South of Brazil. Standard & Poor's does not assign ratings to any company in the J. Malucelli group, and the ratings assigned to the bank do not incorporate potential support from shareholders. * * * As reported in the Troubled Company Reporter-Latin America on June 26, 2007, Standard & Poor's Ratings Services raised its long-term counterparty credit rating and senior unsecured debt rating on Parana Banco S.A. to 'B+' from 'B'. The ratings were removed from CreditWatch Positive where they were placed June 11, 2007. At the same time, S&P affirmed the 'B' short- term counterparty credit rating on the bank. S&P said the outlook is stable. BANCO NACIONAL: Okays BRL95.4-Million Loan to Nestle Nordeste ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has approved a BRL95.4 million financing to Nestle Nordeste Alimentos e Bebidas Ltda as a complement to investments made by the company in its industrial unit of Feira de Santana (BA) and in its distribution center located at BR-324, located 108 km far from Salvador -- both already in operation since last February. The plant at Feira de Santana has a 78.3 thousand tons/year processing capacity, while the distribution center is able to outflow 70 thousand tons of food products, as flour and cereals, per year. BNDES financing was approved within the scope of Programa de Desenvolvimento Regional [Regional Development Program] [PDR] and corresponds to 71.4% of the total investment, of BRL133.6 million. Based on Nestle's business expansion strategy, the project aims at adjusting company product offer to regional taste particularities and to family purchase standards in the Northeastern region of Brazil. On top of that, the new unit has increased Nestle's competitiveness as a result of logistic gains. Installed in the Industrial Center of Subae, the project occupies 66 thousand square meters of total constructed area, of which, 18 thousand square meters for the distribution center, only. The Northeastern plant enabled local product production, transfer of packing line and integration of company distribution network. The industrial unit is especially destined for product lines manufactured or re-packed at Feira de Santana. The distribution center, on its turn, integrates with the distribution network already existing in the Northeast. The project will enable the expansion of other product lines, thus meeting the rapid food consumption growth in the Northern and Northeastern regions of the Country, with over 60 million inhabitants. 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. COMPANHIA ENERGETICA: S&P Ups Corporate Credit Rating to B ---------------------------------------------------------- Standard & Poor's Ratings Services has raised its ratings on electricity generator Companhia Energetica de Sao Paulo, including its corporate credit rating to 'B' from 'B-'. At the same time, S&P raised its Brazil national scale ratings on CESP to 'brBBB-' from 'brBB'. The outlook remains positive on both scales. The upgrade mirrors the improvement in the company's debt structure after a series of Companhia Energetica's financial transactions during 2007, which resulted in positive advances in the company's financial risk profile. During 2007, CESP raised more than BRL2 billion in the national and international capital markets to refinance several debts, resulting in a much more adequate debt profile. The positive outlook reflects S&P's expectation that CESP will continue to be successful in its liability management effort and use its stronger free operating cash flow to pay down debt, gradually improving credit metrics in line with a 'B+' rating. Although the change of the capital structure has been positive, cash flow protection measures are still weak due to the company's high debt and low prices in its energy contract. From 2008 onwards, S&P expects the company will successfully manage its maturities by relying on its cash position and free cash flow generation. Consequently, financial ratios will continue improving. Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao Paulo is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. COMPANHIA PARANAENSE: Joining Federal Highway Auction ----------------------------------------------------- Companhia Paranaense de Energia President Rubens Ghilardi said in a statement that the firm will present a bid for one of the seven stretches of federal highways to be offered under concession in an auction set for Oct. 9, 2007. Business News Americas relates that Companhia Paranaense is keen on the BR-116 highway, which links Curitiba and Florianopolis. According to BNamericas, Companhia Paranaense already disclosed its plan to bid for the highway to investors on Sept. 14, 2007. The firm had wanted to bid for three stretches that cross Parana. However, the decision to bid for only one highway was made after a feasibility study was completed last week. Companhia Paranaense's participation on the tollroad bidding process would indicate a large number of players in the upcoming auction, Deutsche Bank equity research team said in a statement. However, Brazilian tollroad concessionaires association head Moacyr Servilha Duarte commented to BNamericas, "Being a publicly listed company, Copel [Companhia Paranaense] would not bid without financial security." Companhia Paranaense must make sure it has "a decent rate of return and as such its bid will not be too aggressive so that would not be a reason for increased competition," Mr. Duarte explained to BNamericas. Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/-- transmits and distributes electricity to more than 3 million customers in the state of Parana and has a generating capacity of nearly 4,600 MW, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitely postponed. In response, COPEL is re-evaluating its corporate structure. The government of Parana controls about 59% of COPEL. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2006, Moody's America Latina upgraded the corporate family rating of Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its Brazilian national scale. The rating outlook was stable. This rating action concludes the review process initiated on July 26, 2006. Moody's upgraded these ratings: -- Corporate Family Rating: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); -- BRL500 million Senior Unsecured Guaranteed Debentures due 2007: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); and -- BRL400 million Senior Secured Guaranteed Debentures due 2009: to Ba1 from Ba2 (Global Local Currency) and to Aa1.br from A1.br (Brazilian National Scale). COMPANHIA SIDERURGICA: In Talks with Pernambuco Over Concession --------------------------------------------------------------- Companhia Siderurgica Nacional met with Pernambuco state governor Eduardo Campos on Oct. 4, 2007, to discuss the Transnordestina railway, Business News Americas reports, citing a source within the state government. Published reports say that the Brazilian federal government has threatened Companhia Siderurgica's railway unit Companhia Ferroviaria do Nordeste with revoking the concession it holds on Transnordestina, as Companhia Ferroviaria has yet to contract the executive project for the railway. The government believes that the project is too important to fall behind schedule. BNamericas relates that the existing timeline for the railway indicates that the project was scheduled for completion in 2010. Transnordestina will stretch 1,800 kilometers from Ceara's Pecem port and Pernambuco's Suape port to Eliseu Martins, Piaui. The source told BNamericas that the meeting for Transnordestina "was productive, but rough." Companhia Siderurgica and Governor Campos didn't discuss the possibility of a possible steel project, BNamericas states, citing the source. Another government official had said that the firm would discuss plans to install a steel plant in Pernambuco during the Oct. 4 meeting, BNamericas states. Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal and the U.S. * * * As reported in the Troubled Company Reporter-Latin America on July 26, 2007, Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Brazil-based steel maker Companhia Siderurgica Nacional. S&P said the outlook is stable. DELPHI CORP: Disclosure Statement Hearing Moved to Oct. 25 ---------------------------------------------------------- The Hon. Robert Drain of the United States Bankruptcy Court for the Southern District of New York moved the hearing to consider approval of the disclosure statement explaining Delphi Corp.'s plan of reorganization to Oct. 25, 2007, The Associated Press reports. Delphi asked the Court at a hearing on October 3 to defer ruling on the adequacy of the disclosure statement to give the company time to negotiate for financing to fund the plan, AP says. Delphi Chairman Robert Miller said the company is very close to securing a financing deal to fund its chapter 11 plan, The Wall Street Journal reports. Mr. Miller noted that the turmoil in credit markets that created financing difficulties for the company appeared to be settling down, the Journal says. "I am confident that we will get the funding put together very shortly," Mr. Miller said. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, told the Court at a hearing Wednesday that the funding may be less than the US$7.1 billion originally sought. Mr. Butler also told Judge Drain the Plan will undergo "laser- like, focused amendments" which may affect creditor recoveries, the Journal says. Delphi expects to have a financing commitment letter by the end of the disclosure hearing, Bloomberg News relates. Mr. Miller expects the company to emerge from bankruptcy by the end of the year. About Delphi Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 88 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Initiates 707 Adversary Cases Under Seal ----------------------------------------------------- Delphi Corp. has initiated 707 adversary cases against suppliers and other business contacts before the U.S. Bankruptcy Court for the Southern District of New York. Delphi initially filed: * 440 lawsuits on Sept. 28, 2007, * 137 lawsuits on Sept. 29, and * 130 lawsuits on Sept. 30. All of the adversary complaints have been filed under seal. The Debtors obtained permission in August to file the lawsuits secret. The Debtors want to keep the actions secret to avoid "unnecessarily alarming potential defendants." The Debtors had pointed out they have worked to preserve and repair their business relationship with many of the potential defendants and have negotiated or regained favorable credit terms with many suppliers and are continuing to do so. The Debtors had estimated that they may have more than 11,000 potential preference claims arising from transfers totaling US$5,800,000,000 without taking into account potential defenses. According to John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, the Debtors' counsel, the constructively fraudulent transfer reach-back period, made applicable by Section 544(b) of the Bankruptcy Code and state law, is generally six years under the law of Michigan and New York. With a company of Delphi's size, there are literally hundreds of thousands of transactions that occurred during those constructively fraudulent transfer reach-back periods, Mr. Butler had said. Mr. Butler also had noted that the Debtors initially do not intend to pursue avoidance actions in light of their anticipated reorganization. However, as a precautionary measure, the Debtors must preserve the actions in some manner, he said. The Court had granted a temporary stay of the adversary proceedings. The stay would continue until the earlier of service of process and further Court order. During the stay, the Debtors may amend their complaint, and after notice to the statutory committees, dismiss it. The docket for the adversary proceedings have likewise been sealed. The Debtors won't pursue any preference action against an entity if the aggregate value of transfers to, or for the benefit of, that entity is less than US$250,000 in value. If the preference action is against an insider or involves a person or transaction associated with the U.S. Securities and Exchange Commission investigation of the Debtors, the Debtors may also abandon the actions after notice to the Statutory Committees. If a Statutory Committee objects within 10 days after service of the notice, the Debtors would bring the matter before the Court for a ruling on whether the proposed abandonment satisfies Section 554(a) of the Bankruptcy Code. The Debtors may abandon these categories of preference actions: * payments to parties with a secured or priority interest in the payments; * union dues; * pension plan contributions; * payments required under the terms of collective bargaining agreements; * payments to reimburse employee business expenses; * ordinary course wages, salaries, and employee benefits; * payments required by a garnishment to satisfy third-party judgments and obligations; * contributions to charitable organizations; and * payments to foreign suppliers, shippers, insurance providers, and utilities. For purposes of identifying and preserving potential fraudulent transfer claims, the Debtors considered merger and acquisition deals at or exceeding US$20,000,000; transfers to Delphi's board of directors or strategy board members other than for compensation or ordinary-course expense reimbursements; unusual securities transactions; dividend distributions to 5% shareholders; and Delphi's financially troubled supplier program. About Delphi Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 88 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) GOODYEAR TIRE: Brazilian Unit Working at Full Capacity ------------------------------------------------------ Rubens Campos, Goodyear Tire & Rubber Company's Brazilian unit Goodyear do Brasil off-road and agricultural equipment tires product manager, told Business News Americas that the firm is working at full capacity due to strong demand from the mining industry. Mr. Campos explained to the press that demand is very high and that there has been no idleness in production. BNamericas relates that Goodyear do Brasil produces an average of 250 tires a month measuring for mining purposes at its plant in Americana, Sao Paulo. The firm exports some of the products to other Latin American nations. Mr. Campos commented to BNamericas, "We usually work with a rate of 50:50 in terms of yearly exports and domestic sales, but local shipments this year could reach 60% to 70%. We are giving priority to the Brazilian market." BNamericas notes that Goodyear do Brasil is launching two new tires: -- one targeting underground mining activities, and -- another on equipment for moving containers at ports. Goodyear Tire is positive about demand for coming years from the mining sector, BNamericas states, citing Mr. Campos. Demand for off-road would be strong by 2010. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear Tire has marketing operations in almost every country around the world including Brazil, Chile, Colombia, Guatemala, Jamaica and Peru in Latin America. Goodyear employs more than 80,000 people worldwide. * * * As reported on June 8, 2007, that Standard & Poor's Ratings Services raised its ratings on the class A-1 and A-2 certificates from the US$46 million Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-Backed Series 2001-34 Trust to 'B' from 'B-' and removed them from CreditWatch, where they were placed with positive implications on May 14, 2007. The rating actions reflect the May 31, 2007, raising of the rating on the underlying securities, the 7% notes due March 15, 2028, issued by Goodyear Tire & Rubber Co., and its removal from CreditWatch positive. On March 15, 2007, that Fitch Ratings affirmed ratings for The Goodyear Tire & Rubber Company and revised the Rating Outlook to Stable from Negative. -- Issuer Default Rating 'B'; -- US$1.5 billion first lien credit facility 'BB/RR1'; -- US$1.2 billion second lien term loan 'BB/RR1'; -- US$300 million third lien term loan 'B/RR4'; -- US$650 million third lien senior secured notes 'B/RR4'; -- Senior unsecured debt 'CCC+/RR6'. Goodyear Dunlop Tires Europe B.V. -- EUR505 million European secured credit facilities 'BB/RR1' Moody's Investors Service affirmed Goodyear Tire & Rubber Company's Corporate Family Rating of B1. Ratings on Goodyear's existing secured and unsecured obligations were also affirmed, as was the company's Speculative Grade Liquidity rating of SGL-2. Moody's reverted the outlook to stable from negative. HEXCEL CORP: Embarks on US$180-Million Carbon Fiber Expansion ------------------------------------------------------------- Hexcel Corporation will expand its carbon fiber production capacity through the addition of both new carbon fiber lines and a new precursor line. The construction will be completed within two years, increasing Hexcel's carbon fiber production nameplate capacity by approximately 70% to a total of about 16 million pounds. The expansion is needed to meet existing customer forecasts in commercial aerospace, space & defense and strategic industrial applications such as the recently announced contract for rotor tubes for the American Centrifuge Plant. Commenting on the expansion investment, Mr. David E. Berges, Hexcel's Chairman and Chief Executive Officer said, "We are excited by the accelerating demand for carbon fiber composites, driven by market growth and the increasing penetration of these materials, particularly in commercial aerospace. As a world leader in advanced structural materials, Hexcel is committed to supporting this growth through product development and capacity expansion. The expansion will cost about US$180 million spread over 2007, 2008 and 2009. Our team has done an outstanding job on our first expansion, and the knowledge gained has enabled us to continue to drive down capital costs per pound and shorten the time for construction and qualification." Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications. The company has operations in Australia, Brazil, China, France and Japan, among others. * * * As reported in the Troubled Company Reporter on April 5, 2007, Moody's Investors Service has raised the ratings of Hexcel Corporation, Corporate Family Rating to Ba3 from B1. The ratings on Hexcel's senior secured credit facility have been upgraded to Ba1 from Ba2, while the subordinated notes ratings were upgraded to B1 from B3. Moody's said the ratings outlook is stable. PROPEX INC: High Leverage Prompts Moody's to Cut Rating to Caa1 --------------------------------------------------------------- Moody's Investors Service has downgraded the Corporate Family Rating of Propex Inc.'s to Caa1 from B2, reflecting very high leverage in recent quarters and expectations of very weak internal cash flow generation in relation to debt obligations in the near term. The outlook for the ratings, which had been negative since January 2007, is stable. Moody's took these rating actions: -- Downgraded the Corporate Family Rating to Caa1 from B2; -- Downgraded the Probability of Default Rating to Caa1 from B2; -- Downgraded to B2 (LGD2, 29%) from Ba3 (LGD 3, 30%) the senior secured credit facilities consisting of a US$50 million revolver due 2011, and the original US$260 million term loan due 2012; -- Downgraded to Caa2 (LGD 5, 81%) from Caa1 (LGD 5, 82%) the US$150 million senior unsecured notes due 2012; The ratings outlook is stable. The stable outlook reflects the high likelihood of a continuing core level of demand for the company's products, company's leading position in its markets, indications of progress with cost cutting efforts and the company's relatively low capital expenditure requirements in the medium term. The downgrade reflects Moody's expectation of weak interest coverage at least through 2008 in line with the Caa1 rating category and long-term structural industry trends, which include overcapacity and competitive pressures. The ratings also take into account the long-term effects of the backward integration into carpet backing by the larger carpet manufacturers that took place in 2005 and 2006. These longer-term threats are exacerbated by cyclical but ongoing weakness in residential construction and its effect on demand for carpet backing and other end products, potential for adverse raw material fluctuations and the need for error-free execution to navigate this period. Propex's ratings are supported by leadership positions in its principal markets and aggressive moves to cut costs. Notwithstanding the company's likely non-compliance with financial covenants as of Sept. 30, 2007, Moody's believes that covenant relief will be provided by the lender group at levels, which recognize current cyclical weakness in the company's principal end markets and the temporary nature of some of the expense drivers. Failure to obtain such relief will result in an immediate downgrade. The Speculative Grade Liquidity Rating was also downgraded to SGL-4 from SGL-2, subject to covenant relief. Propex Inc., based in Chattanooga, Tennessee is the world's largest independent producer of primary and secondary carpet backing and a leading manufacturer and marketer of woven and nonwoven polypropylene fabrics and fibers used in geosynthetic applications and a variety of other industrial applications such as fabric bags/containers, fabric protective coverings and concrete fiber reinforcement. The company became a stand-alone company following the acquisition of the BP Fabrics and Fibers Business of BP p.l.c by The Sterling Group, L.P., Genstar Capital, L.P., Laminar Direct Capital, L.P., Paribas North America Inc. and members of management in December 2004. The company has manufacturing operations in North America, Europe and Brazil. Sales for the last 12 months ending Sept. 30, 2006, were US$646 million. PROPEX INC: S&P Places B- Corp. Credit Rating on Watch Negative --------------------------------------------------------------- Standard & Poor's Services has placed Propex Inc's 'B-' corporate credit and its senior secured and senior unsecured ratings on CreditWatch with negative implications. "The CreditWatch listing reflects ongoing concerns that difficult operating conditions are likely to forestall Propex's ability to meaningfully improve its highly leveraged financial profile," said S&P's credit analyst Henry Fukuchi. Recent operating challenges at a key production facility, weak residential construction activity and the possibility for further declines in the domestic housing markets could cause earnings and cash flow to deteriorate to a level inconsistent with the current ratings. In addition, Propex announced that it is unlikely to be in compliance with the financial covenants contained within its credit agreement as of the reporting date for its Sept. 30, 2007, quarter end. While Propex's liquidity position is bolstered by decent cash balances and credit facility availability, the probably of a covenant violation is a concern. "We expect that Propex will take steps to negotiate relief so that it will preserve acceptable liquidity while it implements plans to restore operating results to acceptable levels," Mr. Fukuchi said. "We will resolve the CreditWatch upon indication that the risk of covenant violations has been addressed and after reviewing the company's prospects for improving its subpar financial profile. Further indication that weak operating results will extend into 2008 or failure to obtain covenant relief could result in a downgrade this year." Propex Inc., based in Chattanooga, Tennessee is the world's largest independent producer of primary and secondary carpet backing and a leading manufacturer and marketer of woven and nonwoven polypropylene fabrics and fibers used in geosynthetic applications and a variety of other industrial applications such as fabric bags/containers, fabric protective coverings and concrete fiber reinforcement. The company became a stand-alone company following the acquisition of the BP Fabrics and Fibers Business of BP p.l.c by The Sterling Group, L.P., Genstar Capital, L.P., Laminar Direct Capital, L.P., Paribas North America Inc. and members of management in December 2004. The company has manufacturing operations in North America, Europe and Brazil. Sales for the last 12 months ending Sept. 30, 2006, were US$646 million. REALOGY CORPORATION: Signs License Deal with Meredith ----------------------------------------------------- Realogy Corporation has entered into a long-term agreement to license the Better Homes and Gardens(R) Real Estate brand from Meredith Corporation, one of the nation's leading media and marketing companies. Realogy intends to build a new international residential real estate franchise company using the Better Homes and Gardens(R) Real Estate brand name. "We are very pleased to add Better Homes and Gardens Real Estate to our family of real estate companies, and we are equally proud to be entrusted by Meredith with the stewardship of this well- known and respected brand that is so deeply tied to the concept of owning and improving one's home," said Richard A. Smith, Realogy's vice chairman and president. "Looking more broadly, this agreement demonstrates our confidence in the long-term strength of the housing market, particularly in the U.S., and the favorable demographic factors that will continue to drive homeownership and household growth during the years and decades to come." The licensing agreement between Realogy and Meredith is for a 50-year term, with a renewal option for another 50 years. Financial terms of the transaction were not disclosed, and the transaction is not expected to have an immediate material impact on Realogy's financial results. Meredith will receive ongoing license fees based upon the royalties that Realogy earns from franchising the Better Homes and Gardens Real Estate brand. Meredith, owner of an 85-million name consumer database, will offer Realogy selected database services. Realogy plans a July 1, 2008 launch of the Better Homes and Gardens Real Estate franchise system and will engage in various pre-launch activities in the interim. "This is a tremendous opportunity to capitalize on the power of America's leading consumer magazine brand on behalf of the world's most successful real estate franchise company," said Meredith President and Chief Executive Officer Stephen M. Lacy. "It fits extremely well with our strategic objective to further diversify our business by providing Meredith with significant sources of revenue not dependent on traditional advertising." "Better Homes and Gardens Real Estate is a highly strategic addition to Realogy's premier portfolio of real estate franchise holdings, a brand that comes with well-established equity and one that we expect will compete well in the marketplace," added Mr. Smith. The Better Homes and Gardens name has been a staple in American life ever since 1924 when Meredith first published the magazine under that masthead. Today, the magazine boasts a circulation of 7.6 million and a readership of nearly 40 million. In 1978, Meredith launched the former Better Homes and Gardens Real Estate service, which it owned and operated for 20 years, and grew the business into a highly respected name in the real estate industry. Meredith sold its real estate business in 1998 while retaining ownership of the Better Homes and Gardens Real Estate brand name. Better Homes and Gardens Real Estate will become Realogy's fifth residential real estate franchise brand and sixth overall. Today, Realogy owns the CENTURY 21(R), Coldwell Banker(R) and ERA(R) residential real estate brands, along with a commercial real estate franchise system in Coldwell Banker Commercial(R). Realogy also has a similar long-term licensing agreement with Sotheby's Holdings, Inc. to license the Sotheby's International Realty(R) name, a relationship that began in February 2004 and has grown to approximately 400 franchise and company-owned offices globally with more than 8,000 agents around the world. "We have more than a decade of experience in managing world- class real estate brands that compete successfully in the local marketplace, and we also recognize that there is ample room for continued growth in the industry," said Alex Perriello, president and CEO of the Realogy Franchise Group. "We believe that there are substantial domestic and international growth opportunities in real estate franchising, and Better Homes and Gardens Real Estate will help us accelerate that growth." The National Association of Realtors(R) (NAR) 2006 Profile of Real Estate Firms reported that 77% of residential real estate brokerages and 45% of real estate agents are unaffiliated with any franchise. Furthermore, the same NAR survey showed the value of franchising in that 88% of real estate firms reported that their franchise affiliation improved their name recognition; 83% reported a beneficial impact on their ability to acquire listings; and 72% reported that their franchise affiliation contributed to an increase in profits. About Meredith Corp. Meredith Corporation -- http://www.meredith.com/-- is one of the nation's leading media and marketing companies with businesses centering on magazine and book publishing, television broadcasting, integrated marketing and interactive media. The Meredith Publishing Group features 25 subscription magazines -- including Better Homes and Gardens, Ladies' Home Journal, Family Circle, Parents, American Baby, Fitness and More -- and publishes more than 200 special interest publications under approximately 80 titles. Meredith has more than 400 books in print. Meredith owns 13 television stations, including properties in top-25 markets Atlanta, Phoenix and Portland, OR. Meredith has an extensive online presence that includes more than 40 Web sites and two broadband channels - Better.tv and Parents.tv. About Realogy Corp. Headquartered in Parsippany, N.J., Realogy Corporation (NYSE: H)-- http://www.realogy.com/-- is real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world-renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company operates in Australia, Brazil and France. * * * As reported in the Troubled Company Reporter-Latin America on July 13, 2007, Standard & Poor's Ratings Services lowered and removed from CreditWatch Negative its issue-level rating on Realogy Corp.'s previously senior unsecured notes that were part of the company's capital structure prior to the April 2007 going private acquisition of the company by Apollo Management L.P. SYNIVERSE TECH: Bags Saudi Telecom Anti-Fraud Contract ------------------------------------------------------ Syniverse Technologies disclosed that Saudi Telecom Company will implement the most advanced roaming fraud protection available almost a year ahead of a GSM Association's (GSMA) October 2008 deadline for member companies. STC will deploy Syniverse DataNet, a solution developed in conformance with the GSMA's Near Real-Time Roaming Data Exchange initiative, to ensure data records that track subscriber roaming activity are exchanged more rapidly between home and visited operators. Replacing the existing, outmoded High Usage Reports system with the NRTRDE standard reduces data record exchange time from 36 to 4 hours, enabling operators to spot fraudulent activity much more rapidly and reduce potential fraud losses by up to an estimated 90 percent. "STC plays a leading role in the growing Middle Eastern mobile market, and we have been proactive in providing the most secure roaming environment that we can for subscribers," said Mohamed Alageel, General Manager of Information Technology at Saudi Telecom, Aljawal, STC. "Syniverse was the clear choice for this vital project because it has the necessary roaming systems experience coupled with an outstanding roaming fraud solution developed to be the new benchmark for anti-fraud excellence." The NRTRDE standard was developed by the GSMA to effectively combat the growing threat of International Revenue Share Fraud and to help operators the world over benefit from a far more accurate and timely view of how their networks are performing against fraud. With NRTRDE, the visited (roaming) network will be required to forward call data records to the subscriber's home operator within four hours of the call end time, closing the roaming fraud window that currently is open on operator networks that use HUR. If the visited operator is unable to get this information to the home operator in time, the visited operator will be liable for any fraud associated with those calls. Eugene Bergen, Executive Vice President, EMEA, Syniverse, said reducing revenue lost due to roaming fraud leads to corresponding one-to-one increases in operator profitability for STC and, equally important, a more secure roaming environment for its subscribers. STC, which has been a Syniverse customer since 2004, chose Syniverse due to its technology leadership, commitment to customer service and understanding of operators' business needs. "STC clearly understands that time matters when it comes to combating roaming fraud, and that the sooner an NRTRDE solution is implemented, the better protected both STC and subscribers will be when they are roaming," Mr. Bergen said. "We see other GSM operators globally are quickly following STC's lead and implementing NRTRDE in accordance with the GSMA's guidelines to remain competitive as other operators worldwide upgrade their fraud detection capabilities." Syniverse, whose DataNet NRTRDE solution ensures operators are in full compliance with the new GSMA standard, has played a leading role in the creation of industry standards for fraud prevention. Syniverse chairs both the GSMA Transferred Account Data Interchange Group (TADIG), which is responsible for NRTRDE technical specifications, and the NRTRDE Interworking Group (NRTIG), which is responsible for NRTRDE interworking procedures between vendors. Syniverse is the official author and editor of TD.35, a key technical specification that ensures NRTRDE data can be quickly and easily actioned by operators who are eager to reduce fraud. STC also relies on Syniverse's: -- ACCESS S&E(R) GSM Clearinghouse Services to ensure all data records are cleared between STC and its many roaming partners in a rapid, accurate and cost-effective manner; -- MMS Interworking Gateway (MMS-IG) Hubbing Service, which allows STC to increase its multimedia messaging service (MMS) revenues by solving business and technical issues