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 Tuesday, October 16, 2007, Vol. 8, Issue 205 Headlines A R G E N T I N A AEROFLEX INC: S&P Withdraws CCC+ Ratings; Affirms B Corp. Rating AMERICANO SA: Trustee Filing Individual Reports on Nov. 27 ATLANTICA SERVICIOS: Trustee Filing Individual Reports Tomorrow XEROX CORP: Closes Advectis(R) Acquisition for US$32 Million BANCO DE GALICIA: Buys Back US$39.7 Mln Obligaciones Negociables BIOMET INC: Provides Prelim Fin'l Results for Qtr. Ended Aug. 31 COHN HNOS: Proofs of Claim Verification Deadline Is Nov. 20 DANA CORP: Amends Centerbridge Capital Investment Agreement DANA CORP: Appaloosa Re-Affirms Investment Bid; Sends Final Deal DANA CORPORATION: Posts US$103,000,000 Net Loss in August 2007 FUNES SRL: Trustee Filing General Report in Court Tomorrow HIDRO OBRAS: Trustee Filing General Report in Court Tomorrow LABORATORIOS VULTER: Trustee Filing General Report Tomorrow PROALES SA: Trustee Filing General Report in Court Tomorrow PROLIMEC SRL: Trustee Filing Individual Reports Tomorrow TELECOM ARGENTINA: Inks US$17.37-Mln Deal with Telecom Italia VADRA SRL: Trustee Filing General Report in Court Tomorrow B E R M U D A ASPEN INSURANCE: Credit Suisse Downgrades Firm to Neutral ENDURANCE SPECIALTY: Credit Suisse Puts Neutral Rating on Firm SEA CONTAINERS: Earns US$11,158,734 in Month Ended August 31 B R A Z I L AES CORP: May Use Bond Proceeds To Buy 49.99% Brasiliana Stake BUCKEYE TECH: Expects Improvement in July to September Results COMMSCOPE INC: Moody's Downgrades Corp. Family Rating to Ba3 DRESSER-RAND INC: Signs MOU with Supersonic Ejector Technology FIAT SPA: Magneti Marelli Signs Venture with Suzuki & Maruti GENERAL MOTORS: LatAm Sales Up in Third Quarter JAPAN AIRLINES: Expands Code Share with Korean Air Lines LEVI STRAUSS: Fitch Puts BB+ Rating on US$750MM Credit Facility * BRAZIL: Petrobras Starts Biodiesel Output with Galp Energia C A Y M A N I S L A N D S BOMBAY CO: Gordon Brothers & Hilco Merchant's Joint Bid Wins CABLE & WIRELESS: Closes US$40-Mil. Network Deal with Nokia COLIN LUKE: Sets Final Shareholders Meeting for Nov. 5 CORNICHE BOULEVARD: Final Shareholders Meeting Is on Nov. 8 FALLINVEST CAPITAL: Sets Final Shareholders Meeting for Nov. 8 MADISON FINANCE: Proofs of Claim Filing Deadline Is Nov. 5 MADISON FINANCE: Will Hold Final Shareholders Meeting on Nov. 5 SPRINGINVEST ACQUISITION: Final Shareholders Meeting on Nov. 8 SUMMERINVEST FINANCE: Final Shareholders Meeting Is on Nov. 8 WINTERINVEST PLANNING: Final Shareholders Meeting Is on Nov. 8 C H I L E LEVI STRAUSS: Satisfies Terms of US$525-Mln Sr. Notes Offering C O L O M B I A SOLUTIA INC: Incurs US$9,000,000 Net Loss in Month Ended Aug. 31 * COLOMBIA: Local Investors to Visit Panama to Talk Business * COLOMBIA: Presidents Uribe, Chavez & Correa Open Gas Pipeline C O S T A R I C A DOLE FOOD: Discontinuing Paraquat Use in Agricultural Operations D O M I N I C A N R E P U B L I C JETBLUE AIRWAYS: Will Launch New York-Puerto Plata Flights E C U A D O R * ECUADOR: Presidents Uribe, Chavez & Correa Open Gas Pipeline * ECUADOR: Will Rejoin OPEC in November G U A T E M A L A IMAX CORPORATION: Catalyst Fund Withdraws New York Lawsuit J A M A I C A * JAMAICA: Fitch Affirms Low B Credit Ratings M E X I C O COLLINS & AIKMAN: Closes Sale of Soft Trim Division to IAC NA DANA CORP: Amends Centerbridge Capital Investment Agreement FOAMEX INT'L: Makes Repayment of US$9.7 Mil. to First Term Loan INNOPHOS HOLDINGS: Elects Karen Oscar to Board of Directors JABIL CIRCUIT: Fitch Lowers Ratings to BB+ from BBB- MAXCOM TELECOM: S&P Revises Outlook to Positive from Stable REMY WORLDWIDE: Can Use Cash Collateral for Debt Payment REMY WORLDWIDE: Gets Interim Court Nod on US$160MM DIP Financing WENDY'S INTERNATIONAL: To Open Restaurants in Malaysia N I C A R A G U A DOLE FOOD: Nicaraguan Workers Don't Care About Having Children P A N A M A ROYAL CARIBBEAN: Lehman Upgrades Firm's Shares to Overweight * PANAMA: Colombian Investors To Visit Nation for Business P E R U HARMONY GOLD: Fitch Holds Ratings on Watch Negative P U E R T O R I C O BURGER KING: Positive Sales Growth Cues Fitch to Lift Ratings NBTY INC: Reports US$496 Mil. Net Sales in Year Ended Sept. 30 U R U G U A Y BANCO HIPOTECARIO: Earns UYU1.57 Billion in First Eight Months V E N E Z U E L A INDUSTRIAS METALURGICAS: Fitch Rates US$250-Million Notes at B PETROLEOS DE VENEZUELA: Establishing Transguajiro Trusteeship * VENEZUELA: Presidents Uribe, Chavez & Correa Open Gas Pipeline * Large Companies with Insolvent Balance Sheets - - - - - ================= A R G E N T I N A ================= AEROFLEX INC: S&P Withdraws CCC+ Ratings; Affirms B Corp. Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'B' corporate credit rating on Aeroflex Inc. and has withdrawn the 'B+' senior secured, '2' recovery, and 'CCC+' subordinated ratings following the modifications of the company's LBO financing. The outlook is negative. At the same time, S&P has assigned its bank loan and recovery ratings to Aeroflex's secured financing. The company's US$450 million first-lien, first-out senior secured facilities, comprising a US$50 million six-year revolving credit and a US$400 million seven-year term loan, are rated 'BB-', with a recovery rating of '1', indicating the expectation for very high (90%-100%) recovery in the event of a payment default. S&P also assigned its 'B' bank loan rating to the company's US$125 million first-lien, first-loss, seven-year term loan. The '3' recovery rating indicates that lenders can expect meaningful (50%-70%) recovery in the event of a payment default. "The ratings on the company reflect its niche product positions, high leverage at inception, and nominal cash flow," said S&P's credit analyst Lucy Patricola. "Partial offsets include stable operating trends, good revenue visibility, and barriers to entry protecting the company's markets." Aeroflex's microelectronics segment consists of niche products that address highly specific conditions, including high- performance, application-specific integrated circuits (ASICS); high-reliability microelectronics; and radiation-tolerant semiconductors. Leverage is high at the inception of the transaction. Fully adjusted for leases and pension, and giving credit to a number of one-time items and annualized savings, debt to EBITDA is about 8. Although sustained organic growth should expand the earning's base, leverage is not expected to reduce meaningfully in the near term. Headquartered in Plainview, New York, Aeroflex Inc. is a specialty provider of microelectronics and test and measurement products to the aerospace, defense, wireless, broadband and medical markets. For the twelve months ended Mar. 31, 2007, revenues were US$577 million. Aeroflex has offices in China, France, Germany, and Argentina. AMERICANO SA: Trustee Filing Individual Reports on Nov. 27 ---------------------------------------------------------- Silvia Raquel Fernandez, the court-appointed trustee for Americano S.A.'s reorganization proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Santa Fe on Nov. 27, 2007. Ms. Fernandez verified creditors' proofs of claim until Oct. 12, 2007. She will present a general report containing an audit of Americano's accounting and banking records will be submitted in court on Feb. 11, 2008. The informative assembly will be held on June 16, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The trustee can be reached at: Silvia Raquel Fernandez Rioja 1254, Rosario Santa Fe, Argentina ATLANTICA SERVICIOS: Trustee Filing Individual Reports Tomorrow --------------------------------------------------------------- Jacobo Luterstein, the court-appointed trustee for Atlantica Servicios 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. 17, 2007. Mr. Luterstein verified creditors' proofs of claim until Sept. 4, 2007. He will submit a general report containing an audit of Atlantica Servicios' accounting and banking records in court on Nov. 28, 2007. Mr. Luterstein is also in charge of administering Atlantica Servicios' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jacobo Luterstein Rodriguez Pena 694 Buenos Aires, Argentina XEROX CORP: Closes Advectis(R) Acquisition for US$32 Million ------------------------------------------------------------ Xerox Corporation has completed its cash acquisition of Advectis(R), Inc. for US$32 million. Advectis' technology is one of the mortgage industry's most widely used solutions for electronic document collaboration. This purchase expands Xerox's expertise in automating work processes, helping customers in document-intensive businesses like lending and finance to reduce costs and simplify how work gets done. In a predominately paper-based industry, Advectis' Web-based BlitzDocs Collaboration Suite helps lenders, brokers and investors manage the process needed to underwrite, audit, collaborate, deliver and archive loan documents electronically. A BlitzDocs(R) electronic loan folder mirrors the paper loan folder used today but improves efficiencies in the loan cycle, allowing mortgage participants to view and process online documents. Clients benefit from a network with more than 35,000 broker shops and the top seven mortgage insurance companies. Advectis was founded in 2000 and currently employs about 41 people, who now join Xerox. Former Advectis CEO Greg Smith now becomes vice president and general manager of Xerox Mortgage Services, the newly formed unit in Xerox Global Services focusing on innovative document management and collaboration services customized for the mortgage industry. Smith will report to John Kelly, president of Xerox Global Services, North America. Through its acquisition strategy, Xerox is identifying successful companies in niche markets that align with Xerox's commitment to innovation and reducing the complexity of document management. Last year, Xerox acquired Amici LLC, a leading provider of e-discovery services, primarily supporting litigation and regulatory compliance, and XMPie, which provides variable information software for the graphic arts and marketing industries. Xerox Mortgage Services will be featured at Booth 1004 at the Mortgage Bankers Association Annual Convention & Expo in Boston, Oct. 14 to 17. About Xerox Corp. Headquartered in Stamford, Connecticut, Xerox Corp. -- http://www.xerox.com/-- develops, manufactures, markets, services and finances a range of document equipment, software, solutions and services. Xerox operates in over 160 countries worldwide and distributes products in the Western Hemisphere through divisions, wholly owned subsidiaries and third-party distributors. The company maintains operations in France, Japan, Italy, Nicaragua, among others. * * * As reported in the Troubled Company Reporter on May 23, 2007, Standard & Poor's Ratings Services revised its rating outlook on Stamford, Connecticut-based Xerox Corp. to positive from stable. Ratings on the company, including the 'BB+' long-term and 'B-1' short-term corporate credit ratings, were affirmed. BANCO DE GALICIA: Buys Back US$39.7 Mln Obligaciones Negociables ---------------------------------------------------------------- According to Comision Nacional de Valores, Banco de Galicia has repurchased Obligaciones Negociables due 2010 for US$39,750,000. With the cancel done, the amount of capital in circulation of the Obligaciones Negociables due in 2010 is now US$302,914,846. Headquartered in Buenos Aires, Argentina, Banco de Galicia y Buenos Aires SA -- http://www.e-galicia.com/-- is an Argentinean private bank that is engaged in commercial banking, providing general banking services to large corporations, small and medium-sized companies, agricultural and cattle farms and individuals. The company controls an extensive and diverse network of subsidiaries, which include Banco Galicia Uruguay SA, Galicia Capital Markets SA, Galicia Factoring y Leasing SA, Agro Galicia SA, Galicia Administradora de Fondos SA, Galicia Valores SA, Galicia Warrants SA, Net Investments SA, Sudamericana Holding SA and Tarjetas Regionales SA. Through its subsidiaries the company offers accounting, investment and insurance services, loans, checks and debit and credit cards. It also finances the development of real estate, acts as a fiduciary and leases properties to interested parties. It operates over 400 branches across the country and provides e-banking services to customers via its Internet site. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2007, Banco de Galicia y Buenos Aires' Obligaciones Negociables issued on Nov. 6, 2001, for the original amount of US$12 million was rated D by the Argentine arm of Standard & Poor's International Ratings. BIOMET INC: Provides Prelim Fin'l Results for Qtr. Ended Aug. 31 ---------------------------------------------------------------- Biomet Inc., in connection with its offering of notes to repay in full its unsecured bridge facilities, has provided the following preliminary unaudited financial information for the three months ended Aug. 31, 2007. The company's estimated net sales for the three months ended Aug. 31, 2007 were in the range of US$550 million to US$555 million, approximately an 8% to 9% increase over net sales of US$508 million for the three months ended Aug. 31, 2006, due principally to growth in the company's worldwide reconstructive products, primarily hips, knees and dental implants. Excluding the impact of sales of instruments (which the company discontinued selling to distributors in the United States in the third quarter of fiscal 2007), estimated net sales increased by approximately 10% for the three months ended Aug. 31, 2007 compared to the same period in 2006. Estimated Adjusted EBITDA for the quarter was in the range of US$190 million to US$195 million, approximately a 6% to 8% increase over Adjusted EBITDA of US$180 million for the three months ended Aug. 31, 2006. The information for the periods presented is preliminary and unaudited, and as a result, during the course of the preparation of Biomet's final consolidated financial statements, the company may identify items that would require Biomet to make adjustments to the preliminary unaudited results. In addition, the preliminary unaudited results presented below do not include any purchase accounting adjustments relating to the merger and related transactions therewith, as permitted by the debt documents governing the Company's new senior secured credit facilities and the notes issued on the closing date of the merger. These operating results are not necessarily indicative of results to be expected for the full year or any future period. Recent Development On Sept. 25, 2007, Biomet received a letter from the U.S. Securities and Exchange Commission informing the company that it is conducting an informal investigation regarding possible violations of Foreign Corrupt Practices Act in the sale of medical devices in a number of foreign countries by companies in the medial devices industry. Biomet intends to fully cooperate with this informal investigation by the U.S. Securities and Exchange Commission. About Biomet Based in Warsaw, Indiana, Biomet Inc. (NASDAQ: BMET) and its subsidiaries design, manufacture, and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. Biomet and its subsidiaries currently distribute products in more than 100 countries, including the Netherlands, Argentina and Korea. Biomet Inc. and its subsidiaries design, manufacture, and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. Biomet's product portfolio encompasses reconstructive products, fixation products, spinal products, and other products. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 27, 2007, Moody's Investors Service has assigned final debt ratings to Biomet, Inc. (B2 Corporate Family Rating) in conjunction with the close of the leveraged buy-out transaction by a consortium of equity sponsors. Moody's said the rating outlook is negative. COHN HNOS: Proofs of Claim Verification Deadline Is Nov. 20 ----------------------------------------------------------- Benjamin Ernesto Rubio, the court-appointed trustee for Cohn Hnos. S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 20, 2007. Mr. Rubio will present the validated claims in court as individual reports on Dec. 28, 2007. The National Commercial Court of First Instance in Mar del Plata, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Cohn Hnos. 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 Cohn Hnos.'s accounting and banking records will be submitted in court on March 6, 2008. Mr. Rubio is also in charge of administering Cohn Hnos.'s assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Cohn Hnos. S.A. Alvarado 5326, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Benjamin Ernesto Rubio 25 de Mayo 2980, Mar del Plata Buenos Aires, Argentina DANA CORP: Amends Centerbridge Capital Investment Agreement ----------------------------------------------------------- Dana Corporation has entered into an amendment to an investment agreement it reached with Centerbridge Capital Partners L.P., on July 26, 2007. Dana's board of directors has rejected an alternative investment offer submitted by Appaloosa Management L.P. The original terms of the Centerbridge investment agreement provided, for an affiliate of Centerbridge to purchase US$250 million in convertible preferred shares of reorganized Dana (Series A), and for qualified supporting creditors to have an opportunity to purchase US$500 million in convertible preferred shares (Series B) on a pro rata basis. Centerbridge had agreed to purchase up to US$250 million of any Series B shares that were not purchased by the creditors. Among the amendments to the Centerbridge agreement are: -- A commitment by Centerbridge to fully underwrite the purchase of the US$500 million of Series B shares of reorganized Dana, an increase from the US$250 million that Centerbridge had agreed to underwrite. -- Centerbridge's consent to an amendment to Dana's proposed plan of reorganization to provide for a cash payment of up to US$40 million to certain general unsecured creditors who are not eligible to purchase Series B shares because their individual claims are less than US$25 million or they are not "qualified institutional investors" as defined in U.S. securities laws. -- Dana's agreement not to solicit or entertain any proposal for an investment, transaction, or plan of reorganization that would be an alternative to the Centerbridge investment and the elimination of Dana's right to terminate the Centerbridge investment agreement to accept any alternative investment or transaction proposal. The amendment, which is subject to approval by the Bankruptcy Court for the Southern District of New York, where the company's Chapter 11 bankruptcy proceeding is pending, is required to be approved by Nov. 15, 2007. Appaloosa Management Proposal In conjunction with the Bankruptcy Court's established procedures for qualified potential investors interested in exploring alternative proposals to the Centerbridge investment, Appaloosa delivered an offer for an alternative investment to Dana and the Official Committee of Unsecured Creditors on Sept. 21, 2007. As contemplated by the alternative proposal procedures, Dana's board of directors reviewed and considered Appaloosa's offer. After discussions among the parties and the various bankruptcy constituents, Dana's board rejected Appaloosa's offer. About Dana Corporation Based in Toledo, Ohio Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin American regions, and Italy in Europe. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. The Court has set a hearing on Oct. 23, 2007, to consider the adequacy of the Disclosure Statement explaining the Debtors' Plan. DANA CORP: Appaloosa Re-Affirms Investment Bid; Sends Final Deal ---------------------------------------------------------------- Appaloosa Management, L.P., on Sept. 21, 2007, re-affirmed its investment offer, to replace the investment offer of Centerbridge Capital Partners, L.P., and delivered to Dana Corp. and its debtor-affiliates the Official Committee of Unsecured Creditors a final investment proposal letter. James Bolin, a partner at Appaloosa, stated, in the September 21 Letter, that Appaloosa's Investment Offer is substantially similar to Centerbridge's Proposal, with certain material improvements and modifications,. The improvements and modifications are: (a) Appaloosa proposes to eliminate and waive the break-up fee described in the Centerbridge Proposal. (b) Appaloosa will enhance the conversion price from 0.83 times Distributable Market Equity Value Per Share to 0.90 times Distributable Market Equity Value Per Share. (c) In lieu of the limited Rule 144A offering contemplated by the Centerbridge Proposal, the right to purchase the Series B Preferred at par will be offered to all holders of allowed unsecured claims on a pro rata basis. Any shares of Series B Preferred not purchased in the Series B Rights Offering will be purchased at par by Appaloosa and certain other entities, who will receive a guaranteed minimum of 40% of the Series B Preferred and a commitment fee of US$10,000,000 as consideration for their agreement to perform the foregoing Standby Purchaser obligations. (d) Appaloosa proposes to eliminate the ceiling/floor "collar" mechanism contained in the Centerbridge Proposal. (e) Most of Appaloosa's approval rights will be subject to being over-ridden by a 2/3 vote of common shareholders with the exception of certain specified protective approval rights, which are not subject to over-ride. The approval rights not subject to over-ride relate to: -- issuance of securities that are senior to or on parity with the Series A Preferred; -- amendments to the Company's by-laws that materially change the rights of members of the Investor Group or Qualified Purchaser Transferees or the Company's shareholders generally, or to the Charter or Articles if the amendment would adversely impact Appaloosa's rights or investment; and -- other than the annual 4.0% dividends on the Series B Preferred, declaration and payment of dividends on stock that ranks junior to or on parity with the Series A Preferred. (f) Appaloosa will select three members of the Board of Directors, and the Creditors Committee will select the other three. One director will be the chief executive officer, one director will be the new Executive Chairman, one director will be selected by the Standby Purchasers other than Appaloosa. The initial Executive Chairman of the Board will be selected by a selection committee comprised of one Appaloosa representative and one representative of the Standby Purchasers. The Executive Chairman will be approved by a majority vote of the Selection Committee. Any successor Executive Chairman will be selected by the Nominating and Governance Committee of the Board, subject to the approval of Appaloosa. (g) All of Appaloosa's approval rights will continue until the earlier of (i) the date on which Appaloosa ceases to own Series A Preferred Shares having an aggregate liquidation preference of at least US$125,000,000, and (ii) the third anniversary of Appaloosa's investment. (h) Appaloosa proposes to include an additional closing condition to the effect that there will not have occurred any material strike or labor stoppage or slowdown at Dana Corp., General Motors, Chrysler, Ford Motor Company or any of their respective subsidiaries. A full-text copy of Appaloosa's September 21 Letter is available for free at http://ResearchArchives.com/t/s?23e0 Aside from the Investment Letter, Appaloosa also delivered to the Debtors and the Creditors Committee drafts of: (1) an Amended Joint Plan of Reorganization, a copy of which is available for free at http://ResearchArchives.com/t/s?23e1 (2) a Plan Support Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e2 (3) an Investment Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e3 (4) a Shareholders Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e4 (5) Articles of Designation with Respect to Preferred Stock, a copy of which is available for free at: http://ResearchArchives.com/t/s?23e5 (6) a Series A Registration Rights Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e6 (7) a Series B Registration Rights Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e6 (8) a Market Maker Agreement, a copy of which is available for free at http://ResearchArchives.com/t/s?23e7 About Dana Corp. Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin American regions, and Italy in Europe. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. The Court has set a hearing on Oct. 23, 2007, to consider the adequacy of the Disclosure Statement explaining the Debtors' Plan. (Dana Corporation Bankruptcy News, Issue No. 55; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). DANA CORPORATION: Posts US$103,000,000 Net Loss in August 2007 ------------------------------------------------------------ Dana Corporation Unaudited Condensed Balance Sheet As of August 31, 2007 ASEETS CURRENT ASSETS Cash and cash equivalents US$1,071,000,000 Accounts receivable Trade 1,311,000,000 Other 309,000,000 Inventories 822,000,000 Assets of discontinued operations 85,000,000 Other current assets 141,000,000 --------------- Total current assets 3,739,000,000 Investments and other assets 0 Investments in equity affiliates 435,000,000 Property, plant and equipment, net 1,713,000,000 Other noncurrent assets 991,000,000 --------------- TOTAL ASSETS US$6,878,000,000 =============== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Debtor-in-possession financing US$900,000,000 Notes payable 66,000,000 Accounts payable 1,080,000,000 Liabilities of discontinued operations 39,000,000 Other accrued liabilities 822,000,000 --------------- Total current liabilities 2,907,000,000 Liabilities subject to compromise 4,067,000,000 Deferred employee benefits & other noncurrent benefits 472,000,000 Long-term debt 13,000,000 Minority interest in consolidated subsidiaries 92,000,000 --------------- Total liabilities 7,551,000,000 Shareholders' deficit (673,000,000) --------------- TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT US$6,878,000,000 =============== Dana Corporation Unaudited Condensed Statement of Operations For the month ended August 31, 2007 Net sales US$739,000,000 Costs and expenses Cost of sales 698,000,000 Selling, general & admin expenses 28,000,000 Realignment charges 6,000,000 Other income, net 10,000,000 --------------- Income (loss) from operations 25,000,000 Interest expense 8,000,000 Reorganization items, net 10,000,000 --------------- Income (loss) before income taxes (104,000,000) Income tax expense 6,000,000 Minority interest expense 1,000,000 Equity in earnings of affiliates 1,000,000 --------------- Income (loss) from continuing operations (110,000,000) Loss from discontinued operations 7,000,000 --------------- Net income (loss) (US$103,000,000) =============== Dana Corporation Unaudited Condensed Statement of Cash Flows For the month ended August 31, 2007 OPERATING ACTIVITIES Net income (US$103,000,000) Depreciation and amortization 23,000,000 Loss on sale of businesses 7,000,000 Non-cash portion of U.K. pension charge 0 Increase in working capital (75,000,000) Unremitted equity in earnings of affiliates ( 1,000,000) Contract rejections and claim settlements 106,000,000 Other 9,000,000 --------------- Net cash flows used for operating activities (33,000,000) INVESTING ACTIVITIES Purchases of property, plant and equipment (26,000,000) Proceeds from sale of assets 18,000,000 Other 9,000,000 --------------- Net cash flows provided by (used for) investing 1,000,000 FINANCING ACTIVITIES Net change in short-term debt 25,000,000 Proceeds from DIP Credit Agreement 0 --------------- Net cash flows provided by (used for) financing 25,000,000 Net increase (decrease) in cash and cash equivalents (7,000,000) --------------- Cash and cash equivalents, beginning of period 1,078,000,000 Cash and cash equivalents, end of period US$1,071,000,000 =============== Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin American regions, and Italy in Europe. The company and its affiliates filed for chapter 11 protection on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total assets and US$6,800,000,000 in total debts. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. The Court has set a hearing on Oct. 23, 2007, to consider the adequacy of the Disclosure Statement explaining the Debtors' Plan. (Dana Corporation Bankruptcy News, Issue No. 56; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). FUNES SRL: Trustee Filing General Report in Court Tomorrow ---------------------------------------------------------- Mariana Nadales, the court-appointed trustee for Funes S.R.L.'s bankruptcy proceeding, will present a general report containing an audit of the company's accounting and banking records in the National Commercial Court of First Instance in Buenos Aires on Oct. 17, 2007. Ms. Nadales verified creditors' proofs of claim until June 1, 2007. She presented the validated claims in court as individual reports on Sept. 3, 2007. Ms. Nadales is also in charge of administering Funes' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Funes S.R.L. 25 de Mayo 168 Buenos Aires, Argentina The trustee can be reached at: Mariana Nadales Hipolito Yrigoyen 1349 Buenos Aires, Argentina HIDRO OBRAS: Trustee Filing General Report in Court Tomorrow ------------------------------------------------------------ Maria Alejandra Barbieri, the court-appointed trustee for Hidro Obras S.A.'s bankruptcy proceeding, will submit 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. 17, 2007. Ms. Barbieri verified creditors' proofs of claim until June 21, 2007. She presented the validated claims in court as individual reports on Aug. 30, 2007. Ms. Barbieri is also in charge of administering Hidro Obras' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Hidro Obras S.A. Avenida Cordoba 1351 Buenos Aires, Argentina The trustee can be reached at: Maria Alejandra Barbieri Avenida Cabildo 2040 Buenos Aires, Argentina LABORATORIOS VULTER: Trustee Filing General Report Tomorrow ----------------------------------------------------------- Marcos Livszyc, the court-appointed trustee for Laboratorios Vulter Ind. y Com. S.R.L.'s bankruptcy proceeding, will file a general report containing an audit of the company's accounting and banking records in the National Commercial Court of First Instance in Buenos Aires on Oct. 17, 2007. Mr. Livszyc verified creditors' proofs of claim until Aug. 6, 2007. He presented the validated claims in court as individual reports on Sept. 4, 2007. Mr. Livszyc is also in charge of administering Laboratorios Vulter's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Laboratorios Vulter Ind. y Com. S.R.L. Tucuman 978 Buenos Aires, Argentina The trustee can be reached at: Marcos Livszyc Nunez 6387 Buenos Aires, Argentina PROALES SA: Trustee Filing General Report in Court Tomorrow ----------------------------------------------------------- Maria Luisa Ledesma, the court-appointed trustee for Proales S.A.'s bankruptcy proceeding, will submit a general report containing an audit of the firm's accounting and banking records in the National Commercial Court of First Instance in Mar del Plata, Buenos Aires, on Oct. 17, 2007. Ms. Ledesma verified creditors' proofs of claim until July 6, 2007. She presented the validated claims in court as individual reports on Sept. 4, 2007. Ms. Ledesma is also in charge of administering Proales' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at Proales S.A. Santa Fe 2544, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Maria Luisa Ledesma Ortiz de Zarate 6450, Mar del Plata Buenos Aires, Argentina PROLIMEC SRL: Trustee Filing Individual Reports Tomorrow -------------------------------------------------------- Nora Mabel Pszemiarowee, the court-appointed trustee for Prolimec S.R.L.'s bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on Oct. 17, 2007. Ms. Pszemiarowee verified creditors' proofs of claim until Sept. 4, 2007. She will submit a general report containing an audit of Prolimec's accounting and banking records in court on Nov. 28, 2007. Ms. Pszemiarowee is also in charge of administering Prolimec's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Nora Mabel Pszemiarowee Avenida Corrientes 1257 Buenos Aires, Argentina TELECOM ARGENTINA: Inks US$17.37-Mln Deal with Telecom Italia ------------------------------------------------------------- Dow Jones Newswires reports that Telecom Argentina has signed a three-year, US$17.37 million contract with Telecom Italia Sparkle to lease the Italian company's 10-gigabyte Internet portals in Buenos Aires and its submarine cables between Buenos Aires and Miami. Telecom Argentina told Dow Jones that the deal with its major shareholder, Telecom Italia SpA, resulted from an auction. 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'. VADRA SRL: Trustee Filing General Report in Court Tomorrow ---------------------------------------------------------- Zulma Gloria Ghigliano, the court-appointed trustee for Vadra S.R.L.'s reorganization proceeding, will present 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. 17, 2007. Ms. Ghigliano verified creditors' proofs of claim on Aug. 6, 2007. She presented the validated claims in court as individual reports on Sept. 4, 2007. The informative assembly will be held on March 12, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The trustee can be reached at: Zulma Gloria Ghigliano Pasaje Cipoletti 554 Buenos Aires, Argentina ============= B E R M U D A ============= ASPEN INSURANCE: Credit Suisse Downgrades Firm to Neutral --------------------------------------------------------- Credit Suisse analysts have downgraded Aspen Insurance Holdings Limited's shares to "neutral" from "outperform," Newratings.com reports. According to Newratings.com, the target price for Aspen Insurance was set at US$29. The analysts said in a research note that Aspen Insurance's share price appreciated by 29% since Aug. 15, 2007. The analysts told Newratings.com that Aspen Insurance would have healthy earnings for the third quarter 2007 due to a favorable hurricane season. However, its 2008 earnings would be under pressure due to increasing competition. The earnings per share estimate for the third quarter 2007 was increased by US$0.30 to US$1.10, Newratings.com states. Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings Limited (NYSE: AHL) (BSX: AHL BH) is the holding company of the Aspen Group the principal operating entities of which are Aspen Insurance UK Limited and Aspen Insurance Limited, both rated A2 for insurance financial strength. At the end of September 2006, Aspen Group reported net income of US$259 million and shareholders' equity of US$2.3 billion. * * * As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba1 rating to the US$200 million Perpetual Non-Cumulative Preference Shares issued by Aspen Insurance Holdings Limited, the existing perpetual "PIERS" of which were rated Ba1 by Moody's. ENDURANCE SPECIALTY: Credit Suisse Puts Neutral Rating on Firm -------------------------------------------------------------- Credit Suisse analysts have downgraded Endurance Specialty Holdings' shares from "outperform" to "neutral," Newratings.com reports. Newratings.com relates that the target price for Endurance Specialty's shares was set at US$43. The analysts said in a research note that the downgrade is based on valuation. The analysts told Newratings.com that Endurance Specialty's share price appreciated by 18% this year, compared to last year. The firm's dividend yield dropped to 2.4%. Endurance Specialty would have healthy earnings for the third quarter 2007 due to a favorable hurricane season. However, its 2008 earnings would be under pressure due to increasing competition, Newratings.com notes, citing Credit Suisse. The earnings per share estimate for the third quarter 2007 was increased by US$0.45 to US$1.75, according to Newratings.com. Meanwhile, Banc of America Securities analysts put a "neutral" rating on Endurance Specialty's shares, setting the target price at US$45, Newratings.com states. Based in Pembroke, Bermuda, Endurance Specialty Holdings Ltd. (NYSE: ENH) -- http://www.endurance.bm/-- is a provider of property and casualty insurance and reinsurance. Through its operating subsidiaries, Endurance currently writes property per risk treaty reinsurance, property catastrophe reinsurance, casualty treaty reinsurance, property individual risks, casualty individual risks, and other specialty lines. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, AM Best affirmed these debt ratings: Endurance Specialty Holdings, Ltd. -- "bbb-" on US$250 million 7.0% senior unsecured notes, due 2034; -- "bbb-"on US$200 million 6.15% senior notes, due 2015; and -- "bb" on US$200 million Series A non-cumulative preferred shares These indicative debt ratings have been affirmed for securities available under the shelf registration: Endurance Specialty Holdings, Ltd. -- "bbb-" on senior unsecured; -- "bb+" on subordinated; and -- "bb" on preferred stock Endurance Holdings Capital Trust I Ltd.-(guaranteed by Endurance Specialty Holdings) -- "bb" on preferred securities Endurance Holdings Capital Trust II Ltd.-(guaranteed by Endurance Specialty Holdings) -- "bb" on preferred securities SEA CONTAINERS: Earns US$11,158,734 in Month Ended August 31 ------------------------------------------------------------ Sea Containers, Ltd. Unaudited Balance Sheet As of August 31, 2007 Assets Current Assets Cash and cash equivalents US$47,650,121 Trade receivables, less allowances for doubtful accounts 27,578 Due from related parties 7,409,824 Prepaid expenses and other current assets 1,717,768 ------------ Total current assets 56,805,291 Fixed assets, net - Long-term equipment sales receivable, net - Investments in group companies 143,546,856 Intercompany receivables - Investment in equity ownership interests 227,146,976 Other assets 4,076,327 ------------ Total assets US$431,575,450 ============ Liabilities and Shareholders' Equity Current Liabilities Accounts payable US$8,865,234 Accrued expenses 52,398,600 Current portion of long-term debt 171,098,244 Current portion of senior notes 385,323,207 ------------ Total current liabilities 617,685,285 Total shareholders' equity (186,109,835) ------------ Total liabilities and shareholders' equity US$431,575,450 ============ Sea Containers, Ltd. Unaudited Statement of Operations For the Month Ended August 31, 2007 Revenue US$2,473,134 Costs and expenses: Operating costs 430,602 Selling, general and administrative expenses (3,031,169) Professional fees (6,832,670) Credits to provide against intercompany accounts 66,453,293 Impairment of investment in subsidy Co. (29,778,329) Forgiveness of intercompany debt (16,482,588) Depreciation and amortization - ------------ Total costs and expenses 10,759,139 ------------ Gain or (Loss) on sale of assets - ------------ Operating income (loss) 13,232,273 Other income (expense) Interest income 3,893,111 Foreign exchange gains or (losses) 5,461 Interest expense, net (5,872,111) ------------ Income (Loss) before taxes 11,258,734 Income tax expense (100,000) ------------ Net Profit (Loss) US$11,158,734 ============ Sea Containers Services Unaudited Balance Sheet As of August 31, 2007 Assets Current Assets Cash and cash equivalents US$67,758 Trade receivables 27,929 Due from related parties 5,587,738 Prepaid expenses and other current assets 4,741,076 ------------ Total current assets 10,424,501 Fixed assets, net 2,327,141 Investments 2,717,732 Intercompany receivables 46,451,752 Other assets 0 ------------ Total assets US$61,921,126 ============ Liabilities and Shareholders' Equity Current Liabilities Accounts payable US$2,781,162 Accrued expenses 2,682,516 Current portion of long-term debt 1,679,343 ------------ Total current liabilities 7,143,021 Total shareholders' equity 54,778,105 ------------ Total liabilities and shareholders' equity US$61,921,126 ============ Sea Containers Services Unaudited Statement of Operations For the Month Ended August 31, 2007 Revenue US$2,478,786 Costs and expenses: Operating costs - Selling, general and administrative expenses (1,623,585) Professional Fees (570,095) Other charges 0 Depreciation and amortization (100,893) ------------ Total costs and expenses (2,294,573) ------------ Gains on sale of assets 0 ------------ Operating income (loss) 184,214 Other income (expense) Interest income 978 Foreign exchange gains (losses) (537) Interest expense, net (9,953) ------------ Income (Loss) before taxes 174,702 Income tax credit 0 ------------ Net Income US$174,702 ============ Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Debtors' exclusive period to file a chapter 11 plan expires on Dec 21, 2007. (Sea Containers Bankruptcy News, Issue No. 28; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). =========== B R A Z I L =========== AES CORP: May Use Bond Proceeds To Buy 49.99% Brasiliana Stake -------------------------------------------------------------- The AES Corp. said in a statement that it could use up to US$600 million from the placement of senior unsecured notes to fund the acquisition of a 49.99% stake in Brazilian power holding firm Brasiliana. As reported in the Troubled Company Reporter-Latin America on Sept. 12, 2007, Banco Nacional de Desenvolvimento Economico e Social SA, along with The AES Corp., will hire an independent auditor to appraise Brazilian power holding firm Brasiliana's value. Banco Nacional wants to sell its 49.99% stake in Brasiliana, where AES holds 50.01%. BNamericas relates that AES has the first right to purchase the stake. According to BNamericas, AES priced the private placement of senior unsecured notes consisting of US$500-million principal amount of 7.75% senior notes due 2015 and US$1.5-billion principal amount of 8% senior notes due 2017. AES commented to BNamericas, "The company intends to use the net proceeds from the sale of the senior notes primarily to refinance a portion of its recourse debt." BNamericas notes that the placement could help finance AES' investments in these countries: -- Philippines, -- South Africa, and -- Northern Ireland. According to BNamericas, these Brazilian power firms are considering purchasing the stake: -- EDB, -- Cemig, and -- CPFL Energia. About Banco Nacional 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. About AES AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company's Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. As reported in the Troubled Company Reporter-Latin America on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to US$2 billion from US$500 million. LGD assessments are subject to change pending the final capital structure. As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's US$500 million issue of senior unsecured notes due 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. Fitch said the rating outlook is stable. BUCKEYE TECH: Expects Improvement in July to September Results -------------------------------------------------------------- Buckeye Technologies Inc. has expected its profitability for the July-September quarter to be in the range of 32-35 cents per share including a US$2.2 million (6 cents per share) one-time favorable tax help related to the recently enacted reduction in Germany's corporate tax rate. Chairman and Chief Executive Officer, John B. Crowe said, "Our first quarter net sales were up 3% compared to the same period last year. The earnings improvement is a combination of higher prices, better mix and cost control. Excluding the one-time tax help (6 cents per share), operating earnings are anticipated to be in the range of 26-29 cents per share. Operating earnings performance improved over the April-June quarter even with lower sales volume due to scheduled maintenance during the just completed quarter. Demand for our specialty wood and cotton products, nonwoven materials and fluff pulp was strong in the quarter. Nonwovens shipments were especially strong with net sales up 10% compared to the same period last year." Buckeye plans to announce July to September results on Oct. 22, 2007 and has scheduled a conference call at 3:00 p.m. EDT, Oct. 23, 2007 to discuss first quarter performance. Headquartered in Memphis, Tennessee, Buckeye Technologies Inc. (NYSE:BKI) -- http://www.bkitech.com/-- manufactures and markets specialty fibers and nonwoven materials. The company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods. * * * As reported in the Troubled Company Reporter on June 19, 2007, Moody's upgraded Buckeye Technologies Inc.'s corporate family rating to B1 from B2 and maintained a stable outlook. All other ratings were upgraded by one notch while the unsecured notes were affirmed at B2. COMMSCOPE INC: Moody's Downgrades Corp. Family Rating to Ba3 ------------------------------------------------------------ Moody's Investors Service concluded its review of CommScope, Inc. and downgraded the company's corporate family rating to Ba3 from Ba2 pending the company's debt financed acquisition of Andrew Corp. Additionally, Moody's downgraded the company's US$250 million convertible subordinated debentures to B2 from Ba3. The acquisition will be financed by US$2.55 billion of senior secured credit facilities to which Moody's has assigned Ba3 ratings. The outlook is stable. Moody's placed CommScope under review for downgrade on June 27, 2007 after the company's announcement of their intent to acquire Andrew Corporation for US$2.6 billion. The acquisition has been approved by both company's boards but is still conditioned on Andrew shareholder and regulatory approvals. These ratings were downgraded: -- Corporate Family Rating -- to Ba3 from Ba2 -- Probability of Default Rating -- to Ba3 from Ba2 -- US$250 million Convertible Senior Subordinated Debentures due 2024 -- to B2, LGD6 (95%) from Ba3, LGD5 (73%) These new ratings were assigned: -- US$250 million Senior Secured Revolving Credit Facility due 2013 -- Ba3, LGD3 (45%) -- US$2.3 billion Senior Secured Term Loan due 2014 - Ba3, LGD3 (45%) The company's Ba3 rating reflects the relatively high pro forma leverage upon closing the acquisition; the risks associated with integrating two companies roughly equal in size and the cyclicality of the cable, telecommunications, and enterprise connectivity markets. The leverage and integration challenges are reflective of a B1 rating however they are offset by the strength of CommScope's and Andrew Corp.'s respective market leading positions, the diversity of the combined product portfolio, management's track record of successful large integrations and the potential synergies associated with the Andrew acquisition. The ratings are however considered on the weaker end of the Ba3 ratings category. The closing pro forma debt to EBITDA as adjusted by Moody's is expected to be just under 5.0, a level more common in B1 rated component manufacturers. The company is expected to de-lever fairly quickly however through a combination of asset sales of non-strategic assets and estimates of up to US$100 million in annual cost savings from consolidating manufacturing and distribution facilities and reducing duplicate operations. Moody's also notes that Commscope's US$250 million in convertible debt is heavily "in the money" and will likely convert to equity in the next 18 months. Moody's notes management's past success in integrating the 2004 acquisition of Avaya's Connectivity Solutions business and track record of reducing leverage. Moody's believes the company is capable of reducing leverage to below 4.0 by the end of fiscal 2008. The stable outlook reflects Moody's expectation that the company will successfully integrate the Andrew Corp. acquisition and quickly focus on improving cash flow and reducing debt. The ratings could be positively impacted by success in integrating Andrew and achieving synergy targets, continued growth in revenue, EBITDA and free cash flow and reducing leverage to below 3.5. CommScope's ratings may be negatively impacted by unexpected challenges associated with the Andrew acquisition, greater than expected increases in material costs, a severe downturn in customer spending across segments, or an additional large debt financed acquisition, share repurchase or dividend. About CommScope Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) -- http://www.commscope.com/-- designs and manufactures "last mile" cable and connectivity solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions. CommScope has facilities in Brazil, Australia, China and Ireland. DRESSER-RAND INC: Signs MOU with Supersonic Ejector Technology -------------------------------------------------------------- Dresser-Rand Group Inc. has signed a memorandum of understanding with TransCanada Corporation to obtain technology for producing tandem supersonic ejectors. Incorporating technology developed in conjunction with NOVA Research and Technology Corporation, the ejectors are used to reclaim gases ordinarily vented into the atmosphere. At TransCanada, reclaimed gases are injected into gas turbine fuel systems to reduce operating costs and hydrocarbon emissions. When an agreement is finalized, Dresser-Rand will have the right to manufacture, use, and market ejectors that incorporate this technology (including improvements made by TransCanada). Dresser-Rand intends to offer the ejectors as a new equipment option and as a product upgrade for all centrifugal compressors that compress hydrocarbon gases. "By improving the efficiency of the dry gas seals used on centrifugal compressors, and by recovering and recycling gases normally vented into the atmosphere, this new technology will benefit the environment," said H. Allan Kidd, director of Emerging Technologies at Dresser-Rand. "In addition, the new technology will make processes that require the transmission of gases more cost effective." About TransCanada Corp. With headquarters in Calgary, Alberta, TransCanada Corporation, founded in 1951, is a leader in the responsible development and reliable operation of North American energy infrastructure. The company has more than 3,500 employees throughout North America. About Dresser-Rand Group Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to the US$500 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/Stable/--). FIAT SPA: Magneti Marelli Signs Venture with Suzuki & Maruti ------------------------------------------------------------ Fiat S.p.A.'s Magneti Marelli have signed, Oct. 11, 2007, an agreement with Suzuki Motor Corporation and Maruti Suzuki India Limited for the creation of a joint venture in India, aimed at the production of electronic control units for diesel engines. Maruti Suzuki India Limited, former known as Maruti Udyog Limited, is the joint venture set up in 1982 between the Indian government and the Suzuki Motor Corporation that has originated the main industrial entity in India in the automotive field. According to the agreements, Magneti Marelli will participate for 51% in the share capital of the new company, Suzuki for 30% and Maruti for 19%. The initial investment is expected to total approximately EUR15 million. The industrial activities will be located in Manesar -- in the industrial district of Gurgaon, approximately 40 km southwest of New Delhi. The start of production is scheduled for the end of 2008 and, as part of the objectives, the production capacity of this plant should reach a total of about 500,000 control units per year when working at full stretch. The electronic control units produced in Mannesar will be initially used for the Suzuki-Maruti diesel cars and, later on, will also cater to other car manufacturers. "The joint venture with Suzuki and Maruti brings cutting-edge technology to our automotive partners and allows Magneti Marelli to significantly increase its presence in a fast-growing market," Eugenio Razelli, Magneti Marelli CEO disclosed. Magneti Marelli, a company belonging to the Fiat Group, designs, produces and markets advanced systems and components for motor vehicles. With its 45 production facilities (55 production units), 9 R&D centres and 27 application centres in 16 countries, 25,000 employees and a turnover of 4.5 billion Euros in 2006, the group supplies all the leading car makers in Europe, North and South America and the Far East. About Fiat SpA Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported on Aug. 24, 2007, Moody's Investors Service upgraded to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook on all long-term ratings was maintained. The short term Not Prime rating remains unchanged. GENERAL MOTORS: LatAm Sales Up in Third Quarter ----------------------------------------------- General Motors Inc. posted a 22% increase in combined sales from Latin America, Africa and the Middle East for the third quarter, according to reports. The carmaker sold 329,000 vehicles in those regions, up from 59,000 the previous year, the Associated Press says. The company's market share rose to 17.5%, which is its highest third-quarter market share since 1997, newratings.com says. Sales have risen by 20% to 849,000 vehicles year to date, driven by record high sales in Brazil, Colombia, Egypt and Venezuela, General Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Sept. 28, 2007, Fitch Ratings has affirmed and removed the Issuer Default Rating and debt ratings of General Motors from Rating Watch Negative following the announcement that GM has reached an agreement on a new contract with the United Auto Workers. Fitch currently rates GM as: IDR 'B'; Senior secured 'BB/RR1'; and Senior unsecured 'B- /RR5'. Fitch puts a negative outlook on GM's ratings. As reported in Troubled Company Reporter on Sept. 26, 2007, Moody's Investors Service is maintaining its current ratings of General Motors Corporation -- B3 Corporate Family, Caa1 senior unsecured and Ba3 senior secured, and Negative Outlook following the announcement of a strike against the company by the United Auto Workers Union. Following the decision of the United Auto Workers union to go out on strike against General Motors Corp., Fitch Ratings placed General Motors Corporation's 'B' issuer default rating, 'BB/RR1' senior secured debt rating; and 'B-/RR5' senior unsecured debt rating on Rating Watch Negative. JAPAN AIRLINES: Expands Code Share with Korean Air Lines -------------------------------------------------------- Japan Airlines International Co., Ltd., and Korean Air Lines agreed to expand their code share operations to include the airlines' flights operating between Haneda airport, Tokyo and Gimpo airport in Seoul. The agreement will come into effect on October 28, 2007, and is subject to government approval. Both JAL and Korean Air operate their own twice-daily services between the two airports. The code share agreement will enable them to place their airline designator code on each other's flights. Tickets for the new code share flights go on sale from October 17, 2007. At present, JAL including Korean Air Lines code shares serves South Korea on 14 routes with a total of 214 round-trip flights per week, linking Seoul, Busan and Jeju Island to 8 cities Japan. With the addition of the two new daily code share flights to Gimpo, JAL will offer a total of 228 round-trip flights. JAL and Korean Air Lines first started code sharing in Aug. 1, 2004, with flights between Seoul and the regional Japanese cities of Komatsu, Niigata and Sapporo. A detailed list of the schedules and their destinations can be viewed for free at JAL's company website at: http://www.jal.com/en/press/0001143/1143.html 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. LEVI STRAUSS: Fitch Puts BB+ Rating on US$750MM Credit Facility --------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to Levi Strauss & Co's second amended and restated US$750 million 5-year Asset-Based Revolving Credit Facility. The Rating Outlook is Stable. Fitch currently rates Levi Strauss & Co. as: -- Issuer Default Rating 'BB-'; -- Bank Credit Facility 'BB+'; -- Senior Unsecured Notes 'BB-'; This rating action follows the company's announcement that it has entered into an amended credit agreement, which increases the maximum size to US$750 million from US$550 million. The facility includes a US$250 million term loan tranche priced at LIBOR + 250 basis points. The remaining revolving credit tranche has an initial price of LIBOR + 150 basis points. The entire facility will be secured by, among other domestic assets, certain U.S. trademarks associated with the Levi's' brand. Availability will not be reduced by repayments on the term loan tranche. The lien on the trademarks will be released when the term loan tranche is fully repaid. On Oct. 11, 2007, the company drew US$343.2 million under the amended credit facility and used US$220 million from cash on hand to purchase the tendered 12.25% senior unsecured notes due December 2012, in connection with its cash tender offer. The rating reflects the improvements made to stabilize Levi's operations and operating margins as well as its well-known brand names, geographic diversity and good liquidity position. The rating also considers the company's high debt balances and the competitive operating environment of the denim and casual bottoms market. Levi Strauss should continue to benefit from its improved cost structure and brand investments despite challenges in the U.S. Levi Strauss Signature brand, which represented less than 8% of fiscal 2006 revenues and fewer than 4% of operating income before corporate expenses. In addition, Fitch expects that management will remain committed to its plan to reduce debt and interest costs over time. Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss & Co. -- http://www.levistrauss.com/-- is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. The company market-leading apparel products are sold under the Levi's(R), Dockers(R) and Levi Strauss Signature(R) brands. Levi Strauss & Co. is privately held by descendants of the family of Levi Strauss. Shares of company stock are not publicly traded. Shares of Levi Strauss Japan K.K., the company's Japanese affiliate, are publicly traded in Japan. The company employs a staff of approximately 10,000 worldwide, including approximately 1,010 at the company's San Francisco, California headquarters. Levi Strauss Europe is headquartered in Brussels, Belgium, while Levi's Asia Pacific division is based in Singapore. Levi's has operations in Brazil, Mexico, Chile and Peru. * BRAZIL: Petrobras Starts Biodiesel Output with Galp Energia ------------------------------------------------------------- Brazilian state-run oil firm Petroleo Brasileiro SA will begin biodiesel production with Portuguese energy company Galp Energia in a 50:50 joint venture by year-end, Portugal's Agencia Lusa newswire reports, citing Galp Energia head Manuel Ferreira de Oliveira. Mr. Ferreira de Oliveira told Business News Americas, "We are concluding the legal aspects of this partnership and making the business plans needed to make the joint venture economically feasible. The whole process will be concluded in 2007 and we will start working." The joint venture is aimed at the production of 600,000 tons per year of vegetable oils in Brazil. Half of the oils produced would be processed in Galp Energia plants, while the other half would be shipped as biodiesel to Europe, BNamericas states. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on its long-term ratings on the Federative Republic of Brazil to positive from stable. Standard & Poor's also affirmed these ratings on the Republic of Brazil: -- 'BB' for long-term foreign currency credit rating, -- 'BB+' for long-term local currency credit rating, and -- 'B' for short-term currency sovereign credit rating. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-t