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 24, 2007, Vol. 8, Issue 211 Headlines A R G E N T I N A ALITALIA SPA: Strike Against Downscale Plan Cancels 254 Flights DINA SHEMESH: Proofs of Claim Verification Deadline Is Dec. 28 HIPERTCH SA: Trustee Filing Individual Reports on Dec. 14 FIDEICOMISO FINANCIERO: Moody's Puts Ba1 Global Currency Rating HIDROELECTRICA PIEDRA: Calls for Shareholders Meeting on Nov. 20 INVERSORA ELECTRICA: Fitch Arg Affirms CCC Rating on Notes LOGISTICA DIGITAL: Seeks for Reorganization Approval from Court MARSIL SRL: Trustee Verifies Proofs of Claim Until Nov. 18 OBRA SOCIAL: Proofs of Claim Verification Is Until Nov. 20 REDES URBANAS: Files for Bankruptcy Petition in Buenos Aires SMOBY-MAJORETTE: Former Chairman and CEO Faces Probe SMOBY-MAJORETTE: Exits Bankruptcy; Court Orders Receivership B R A Z I L BANCO BMC: Moody's Withdraws Ratings After Bradesco Acquisition BANCO NACIONAL: Okays BRL124-Million Loan to Alusa DELPHI CORP: November Hearing Set for ERISA Suit Settlement DELPHI INC: Lead Plaintiffs Object to Disclosure Statement EMBRATEL PARTICIPACOES: Launching Embratel IP for Companies FORD MOTOR: Expresses Possible Expansion of Philippine Facility GERDAU SA: Inks Letter of Intent for 49% Stake Buy at Corsa HEXCEL CORP: Earns US$17.3 Million in 2007 Third Quarter JAPAN AIRLINES: Three Firms Eye Credit Card Unit REXAM PLC: To Build New Beverage Can Plant in Denmark * BRAZIL: Petrobras Opens Fuel Distribution Feasibility Studies C A Y M A N I S L A N D S ALEX LEASING: Holding Final Shareholders Meeting on Nov. 2 BEAR STEARNS FUNDS: BofA Seeks Clarification of Injunction Order BEAR STEARNS FUNDS: Bankruptcy Appeal Assigned to Judge R. Sweet BJK INC: Last Day To File Proofs of Claim Is Nov. 15 CAYMAN DFK: Will Hold Final Shareholders Meeting on Nov. 2 CBO HOLDINGS: Sets Final Shareholders Meeting for Nov. 2 CHIEN KUO: Creditors Have Until Nov. 16 To File Proofs of Claim COMMERCIAL MORTGAGE: Holds Final Shareholders Meeting on Nov. 2 COPPER BEECH: Final Shareholders Meeting Is on Nov. 2 DCC II: Final Shareholders Meeting Is on Nov. 2 DENALI MANAGEMENT: Holding Final Shareholders Meeting on Nov. 2 DIAMOND FINANCIAL: Sets Final Shareholders Meeting for Nov. 2 FLEET FUNDING: Sets Final Shareholders Meeting for Nov. 2 KED INVESTMENTS: Creditors Must File Proofs of Claim by Nov. 15 KED INVESTMENTS: Sets Final Shareholders Meeting for Nov. 16 SLS BPI: Holding Final Shareholders Meeting on Nov. 2 C H I L E COEUR D'ALENE: Appoints Officers in South America & Alaska C O L O M B I A AES CORP: Unit Says It Will Proceed with Brasiliana Stake Buy D O M I N I C A N R E P U B L I C ALCATEL-LUCENT: To Broaden Unified Communication Offer w/ Sagem E C U A D O R INDUSTRIAS METALURGICAS: S&P Affirms B Corporate Credit Rating PETROECUADOR: Esmeraldas Plant Operations Back to Normal G U A T E M A L A IMAX CORP: Signs Theatre Deal in Morocco with Al Amine G U Y A N A DIGICEL GROUP: Says Guyana Telephone Rip Off Int'l Call Clients H O N D U R A S * HONDURAS: Hondutel Opens Mobile Service in San Pedro Sula M E X I C O ADVANCED MICRO: Urges Rejection of TRC's Mini-Tender Offer CROWN HOLDINGS: Sept. 30 Balance Sheet Upside-Down by US$386 Mln GRUPO MEXICO: Issuing MXN1.10 A Share Dividend Starting Nov. 27 MOVIE GALLERY: Court Okays Kutak Rock as Local Counsel MOVIE GALLERY: Hires Alvarez & Marsal as Restructuring Advisors MOVIE GALLERY: Creditors Must File Proofs of Claim by Jan. 25 RYERSON INC: Platinum Completes US$2-Billion Purchase Deal P A N A M A BANCO LATINOAMERICANO: Earns US$14.8 Mil. in Qtr. Ended Sept. 30 CHIQUITA BRANDS: Panama Farmers Balk at Discount Policy * PANAMA: Canal Expansion Creates More Work P E R U ALCATEL-LUCENT: Inks Partnership Deal w/ Spirent Communications T R I N I D A D & T O B A G O HILTON HOTELS: Prices Cash Tender Offer for 7.430% CLP Notes V E N E Z U E L A CHRYSLER LLC: UAW Leaders Urge Key Locals to Accept Labor Pact CITGO PETROLEUM: Selling 4 Storage Terminals & Pipeline Stake * LATIN AMERICA: Fitch Says Liquidity Profile of Firms Is Solid - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Strike Against Downscale Plan Cancels 254 Flights --------------------------------------------------------------- Employees at Alitalia S.p.A. staged on Oct. 22, 2007, an industrial protest against the national carrier's plan to downscale operations at Milan's Malpensa International Airport, Reuters reports. The four-hour strike spurred Alitalia to cancel 197 flights at Malpensa and another 57 at the nearby Linate Airport, operator SEA Aeroporti di Milano told Reuters. As previously reported, Alitalia said it would "reposition the activities of Milan Malpensa airport by focusing on specific business segments." The carrier said it may reconsider this option "if and when the access regulations for Milan Linate airport were to be modified concentrating the major part of air traffic from/to Lombardy on Milan Malpensa, and if and when airport costs were reduced." About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. DINA SHEMESH: Proofs of Claim Verification Deadline Is Dec. 28 -------------------------------------------------------------- Patricia Sandra Ferrari, the court-appointed trustee for Dina Shemesh S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 28, 2007. Ms. Ferrari will present the validated claims in court as individual reports on March 12, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Dina Shemesh 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 Dina Shemesh's accounting and banking records will be submitted in court on April 24, 2008. Ms. Ferrari is also in charge of administering Dina Shemesh's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Patricia Sandra Ferrari Viamonte 1653 Buenos Aires, Argentina HIPERTCH SA: Trustee Filing Individual Reports on Dec. 14 --------------------------------------------------------- Beatriz Custodio, the court-appointed trustee for Hipertech S.A.'s reorganization proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on Dec. 14, 2007. Ms. Custodio verifies creditors' proofs of claim until Nov. 1, 2007. She will file a general report containing an audit of Hipertech's accounting and banking records in court March 3, 2008. The informative assembly will be held on Aug. 12, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The debtor can be reached at: Hipertech S.A. Deheza 1651 Buenos Aires, Argentina The trustee can be reached at: Beatriz Custodio Uruguay 229 Buenos Aires, Argentina FIDEICOMISO FINANCIERO: Moody's Puts Ba1 Global Currency Rating --------------------------------------------------------------- Moody's Latin America has assigned a rating of Aaa.ar (Argentine National Scale) and of Ba1 (Global Scale, Local Currency) to the Fixed Rate and Class A Floating Rate Debt Securities of Fideicomiso Financiero Supervielle Personales III. Moody's also assigned a rating of Aa1.ar (Argentine National Scale) and of Ba2 (Global Scale, Local Currency) to the Class B Floating Rate Debt Securities. The certificates are not rated by Moody's. All Debt Securities and the Certificates were issued by Deutsche Bank S.A. acting solely in its capacity as issuer and trustee. This issuance is not an obligation of Deutsche Bank S.A. and therefore the rating assigned does not reflect the credit quality of Deutsche Bank S.A. The assigned ratings are based on the following factors: -- the credit quality of the securitized personal loans; -- the promise to investors, which is timely interest and ultimate principal before legal final maturity; -- initial credit enhancement provided through subordination of 56% for the Fixed Rate and Class A Floating Rate Debt Securities, and 15% for the Class B Floating Rate Debt Securities; -- the sound origination and servicing standards of Banco Supervielle S.A.; -- the ability of Deutsche Bank S.A. to act as trustee in this transaction; -- the availability of various reserve accounts; and -- the legal structure of the transaction. The Securitized Pool The rated securities are payable from the cash flow coming from the assets of the trust, which is an amortizing pool of about 13,173 eligible loans denominated in Argentine pesos, bearing floating and fixed interest rates, originated by Banco Supervielle S.A., in an aggregate amount of ARS69,000,692. Moody's has assigned a local currency deposit rating of Aa2.ar in the Argentine National Scale to Banco Supervielle. The monthly loan installment of all securitized loans is automatically deducted from the borrowers account. At closing, about 65.47% of the pool was constituted by personal loans granted to employees of 1,146 companies that are paid their monthly salaries through Banco Supervielle. In this case, the monthly loan installment is deducted directly from the account where the borrower's salary is deposited. Structure Deutsche Bank S.A. (issuer and trustee) issued one class of Fixed Rate Debt Securities, two classes of Floating Rate Debt Securities (Class A and B) and one class of Certificates, all denominated in Argentine pesos. The Fixed Rate Debt Securities will bear a fixed interest rate of 14%. Class A Floating Rate Debt Securities will bear a BADLAR interest rate plus 444 basis points. Class B Floating Rate Debt Securities will bear a BADLAR interest rate plus 450 basis points. Floating Rate Debt Securities' interest rate has a ceiling of 24% p.a. and a floor of 14%. Overall credit enhancement is comprised of: -- an aggregate 56% initial subordination for the Fixed Rate and Class A Floating Rate Debt Securities, 15% initial subordination for the Class B Floating Rate Debt Securities; -- various reserve funds; and -- excess spread. Fixed Rate Debt Securities are expected to be paid off in four months. The payment of principal on the Class A Floating Rate Debt Securities has a grace period of four months. Class B Floating Rate Debt Securities will not receive principal payments until Fixed Rate and Class A Floating Rate securities have been paid off. The Certificates are entitled to receive any remaining cash flow after Fixed Rate and Floating Rate Debt Securities are paid in full. Class B Floating Rate Debt Securities will pay interest on a quarterly basis as long as Fixed Rate and Class A Floating Rate Debt Securities are still outstanding. Banco Supervielle is the originator and servicer in this transaction. On April 27, 2007, Moody's upgraded Supervielle's national scale rating for deposits in local currency from Aa3.ar to Aa2.ar. Supervielle's Bank Financial Strength Rating (BFSR) was also upgraded to D- from E+. Moody's Rating Actions on Supervielle: -- ARS13,110,000 in Fixed Rate Debt Securities of "Fideicomiso Financiero Supervielle Personales III", rated Aaa.ar (Argentine National Scale) and Ba1 (Global Local Currency Scale); -- ARS17,250,000 in Class A Floating Rate Debt Securities of "Fideicomiso Financiero Supervielle Personales III", rated Aaa.ar (Argentine National Scale) and Ba1 (Global Local Currency Scale); -- ARS28,290,000 in Class B Floating Rate Debt Securities of "Fideicomiso Financiero Supervielle Personales III", rated Aa1.ar (Argentine National Scale) and Ba2 (Global Local Currency Scale); -- Fixed Rate Debt Securities, Assigned Ba1; -- Class A Floating Rate Debt Securities, Assigned Ba1; and -- Class B Floating Rate Debt Securities, Assigned Ba2. HIDROELECTRICA PIEDRA: Calls for Shareholders Meeting on Nov. 20 ---------------------------------------------------------------- Hidroelectrica Piedra del Aguila SA's directors have called for an assembly of Class A shareholders for Nov. 20, 2007, at 11:00 a.m. for the first call, and at 12:00 noon for the second call. The assembly will be taking place at Tomas Edison 2701 in Buenos Aires. Headquartered in Buenos Aires, Argentina, Hidroelectrica Piedra del Aguila S.A. is an electric power distributor. * * * As reported in the Troubled Company Reporter-Latin America on June 15, 2007, Standard & Poor's Ratings Services assigned a 'B' corporate credit rating to Argentina's 1,400 MW hydropower generator Hidroelectrica Piedra del Aguila S.A. as well as a 'B' rating to the upcoming 10-year fixed-rate bonds for up to US$200 million, due in four equal installments, beginning in 2014. S&P said the outlook is stable. As reported on Jan. 31, 2007, Fitch Argentina Calificadora de Riesgo assigned these ratings on Hidroelectrica Piedra del Aguila S.A.'s debts: -- Obligaciones Negociables Series A for US$64,500,000, BB- -- Obligaciones Negociables Series B for US$35,600,000, BB- -- Obligaciones Negociables Series C for US$39,300,000, BB- -- Obligaciones Negociables Series D for US$22,800,000, BB- -- Obligaciones Negociables Simples for US$300,000,000, BB- -- Program of Obligaciones Negociables for US$300,000,000, B -- Class I under the US$300 million program for US$97,300,000, BB- -- Class II under the US$300 million program for US97,300,000, BB- -- Clase III under the US$300 illion program for US62,500,000, BB- INVERSORA ELECTRICA: Fitch Arg Affirms CCC Rating on Notes ---------------------------------------------------------- Fitch Argentina has confirmed the CCC rating of Inversora Electrica de Buenos Aires S.A. on: -- Obligaciones Negociables Series C for US$130.3 million; and -- Obligaciones Negociables Series D for US$4.7 million In addition, the ordinary shares have been included in category C. The rate given to the notes shows the high level of debt of IEBA, its weak capacity of repayment and the delays on the financial commitments with EDEA creditors, the latter being the operative company and only generator of funds. EDEA has got enough fo covering its financial needs, though this will depend on future rates to be faced, from the year 2009, of payments of capital. Because the capacity of distribution of utilities of EDEA will not be enough for covering the interests of IEBA, the latter will depend on the financial assistant of its main shareholder to face commitments. On June 15, 2007, IEBA was able to reach the homologation of its concurso preventivo, therefore being able to emit new ONs Serie C and D and new ordinary shares as part of paying its debt in concurso. The process of exchange between the ONs Serie A and B and the new Ons Serie C and ordinary shares will be done between Oct 8, 2007 and Nov. 8, 2007. EDEA has completed the reestructuring of its debt in March 28, 2007, and was able to extend the dues of capital until the year 2013. The agreement includes the distribution of utilities and emission of funds to IEBA in case there are exceedings in cash. Inversora Electrica de Buenos Aires S.A. was created on June 1997. It holds a majority stake at Empresa Distribuidora de Energia Atlantica S.A. Empresa Distribuidora holds the electricity distribution concession for 95 years in the east region of the Province of Buenos Aires since the privatization of ESEBA. The main shareholder of IEBA is BAECO (Buenos Aires Energy Company) holding 96% of the shares, which it bought on April 28, 2005, from United Utilities International Limited -- holding 45% in the company. Also, BAECO is controlled by Camuzzi Argentina SA. LOGISTICA DIGITAL: Seeks for Reorganization Approval from Court --------------------------------------------------------------- Logistica Digital S.A. has filed for a reorganization petition after failing to pay its liabilities since Oct. 9, 2005. The reorganization petition, once approved by the court, will allow Logistica Digital to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 21 in Buenos Aires. Clerk No. 41 assist in this case. The debtor can be reached at: Logistica Digital S.A. Avenida Lastra 3543 Buenos Aires, Argentina MARSIL SRL: Trustee Verifies Proofs of Claim Until Nov. 18 ---------------------------------------------------------- Estudio Contable del Dr. Drzewko, Sukiassan y Toytoyndjian, the court-appointed trustee for Marsil S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until Nov. 18, 2007. Estudio Contable will present the validated claims in court as individual reports on Feb. 13, 2008. The National Commercial Court of First Instance in La Matanza, 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 Marsil 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 Marsil's accounting and banking records will be submitted in court on March 28, 2008. The debtor can be reached at: Marsil S.R.L. Avenida Rivadavia 14.340, Ramos Mejia Partido de La Matanza, Buenos Aires Argentina The trustee can be reached at: Estudio Contable del Dr. Drzewko, Sukiassan y Toytoyndjian Avenida Comisionado J. Indart 2423, San Justo Buenos Aires, Argentina -- or -- Estudio Contable del Dr. Drzewko, Sukiassan y Toytoyndjian Santander 1387, Ramos Mejia Buenos Aires, Argentina OBRA SOCIAL: Proofs of Claim Verification Is Until Nov. 20 ---------------------------------------------------------- Carlos Armando Masola, the court-appointed trustee for Obra Social de Baneros y Afines del Partido de General Pueyrredon's bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 20, 2007. Mr. Masola will present the validated claims in court as individual reports on Feb. 7, 2008. 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 Obra Social 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 Obra Social's accounting and banking records will be submitted in court on March 20, 2008. Mr. Masola is also in charge of administering Obra Social's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Obra Social de Baneros y Afines del Partido de General Pueyrredon Don Bosco 2545, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Carlos Armando Masola Rawson 2434, Mar del Plata Buenos Aires, Argentina REDES URBANAS: Files for Bankruptcy Petition in Buenos Aires ------------------------------------------------------------ The National Commercial Court of First Instance No. 21 in Buenos Aires is studying the merits of Redes Urbanas Com SRL's request to enter bankruptcy protection. Redes Urbanas filed a "Quiebra Decretada" petition following cessation of debt payments to Cooperativa de Credito del Milenio Ltda. The petition, once approved by the court, will transfer control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. Clerk No. 41 assists the court in this case. The debtor can be reached at: Redes Urbanas Com SRL Avenida Cabildo 2327 Buenos Aires, Argentina SMOBY-MAJORETTE: Former Chairman and CEO Faces Probe ---------------------------------------------------- Jean-Christophe Breuil, the former chairman and CEO of French toymaker Smoby-Majorette, is to undergo investigation for allegedly misappropriating funds via foreign dummy companies, the Financial Times reports, citing Les Echos as its source. Meanwhile, Les Echos revealed Marius Millet, the chairman of the Lons-le-Saunier commercial court, is among those eyeing to acquire Smoby Engineering and Mob, the company's two subsidiaries. The successful buyer is set to be announced next week. The Commercial Court of Lons-le-Saunier placed Smoby-Majorette under receivership on Oct. 9, 2007, ending the company's bankruptcy protection, Financial Times Ltd. reports citing La Tribune as its source. According to La Tribune's Julieta Garnier, the court blamed Smoby's buyer, MGA Entertainment, for failing to revive the company. MGA's debt restructuring negotiation with Smoby's creditor banks fell through and it failed to pay the EUR11 million it pledged to invest in Smoby. MGA is considering an appeal against the court's decision. Deutsche Bank, which submitted a rival bid, said that it was stunned at MGA's behavior and failure to keep its promises, FT relates. Headquartered in Lavans les Saint-Claude, France, Smoby -- http://www.smoby.fr/-- specializes in the creation, development, production and distribution of toys for children from birth to age 10. Its toy collection includes over 2,000 products divided into groups for specific age ranges. Its products are marketed under such brand names as Smoby, Berchet, Ecoiffier, Majorette, Solido, Smoby Engineering and Mob. The Company's principal subsidiaries include Ecoiffier, which focuses on the design and production of toys, and Mob, which is a producer of plastic packaging. Smoby has a presence in over 90 countries globally, with commercial and/or industrial operations in South America, Asia and throughout Europe. The Company's products are sold worldwide through a network of 18 subsidiaries, with 65% of sales generated outside of France. Its Latin America operations are found in Argentina, Brazil and Mexico. SMOBY-MAJORETTE: Exits Bankruptcy; Court Orders Receivership ------------------------------------------------------------ The Commercial Court of Lons-le-Saunier placed Smoby-Majorette under receivership on Oct. 9, 2007, ending the company's bankruptcy protection, Financial Times Ltd. reports citing La Tribune as its source. According to La Tribune's Julieta Garnier, the court blamed Smoby's buyer, MGA Entertainment, for failing to revive the company. MGA is considering an appeal against the court's decision. As reported in the TCR-Europe on Oct. 10, 2007, MGA's debt restructuring negotiation with Smoby's creditor banks fell through and it failed to pay the EUR11 million it pledged to invest in Smoby. Deutsche Bank, which submitted a rival bid, said that it was stunned at MGA's behavior and failure to keep its promises, Financial Times relates. About Smoby Headquartered in Lavans les Saint-Claude, France, Smoby -- http://www.smoby.fr/-- specializes in the creation, development, production and distribution of toys for children from birth to age 10. Smoby has a presence in over 90 countries globally, with commercial and/or industrial operations in South America, Asia and throughout Europe. The Company's products are sold worldwide through a network of 18 subsidiaries, with 65% of sales generated outside of France. In France, the Company employs 1, 300 workers. The Commercial Court of Lons-le-Saunier opened bankruptcy proceedings against Smoby on March 19, 2007, upon the Debtor's request. Smoby was hoping to snag an investor who will inject fresh capital yet remain a minority, as the company grapples with a EUR330-million debt. The company reported a net loss of EUR15.87 million for the year ended March 31, 2006, compared with a net profit of EUR1.56 million in 2005. Its Latin America operations are found in Argentina, Brazil and Mexico. =========== B R A Z I L =========== BANCO BMC: Moody's Withdraws Ratings After Bradesco Acquisition --------------------------------------------------------------- Moody's Investors Service has withdrawn all of its ratings for Banco BMC S.A. The rating action reflects the acquisition of Banco BMC by Banco Bradesco S.A. in August 2007 and its integration into Banco Bradesco's operating platform. These ratings were withdrawn: -- B- bank financial strength rating, with stable outlook; -- Global Local Currency Deposit Ratings: A1 for long-term and Prime-1 for short-term, with stable outlook; -- foreign currency deposit Ratings: Ba2 for long-term and Not Prime for short-term, with stable outlook; and -- Brazilian National Scale Ratings: Aaa.br for long-term and BR-1 for short-term, with stable outlook. Banco BMC has no rated foreign currency debt outstanding. Moody's action doesn't reflect a change in Banco BMC's creditworthiness. Banco BMC S.A. is headquartered in Sao Paulo, Bazil and had total assets of BRL2.3 billion and equity of BRL317 million as of June 30, 2007. BANCO NACIONAL: Okays BRL124-Million Loan to Alusa -------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social said in a statement that it has authorized a BRL124-million loan to Brazilian engineering group Alusa for the firm's Santa Catarina transmission line project. Business News Americas relates that Alusa, through its specific purposes firm Sistema de Transmissao Catarinense, will construct and run the 230-kilovolt, 195-kilometer Barra Grande-Lages-Rio do Sul transmission line. The BRL124-million loan accounts for 74% of the investment in the line, BNamericas states, citing 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. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007, respectively. DELPHI CORP: November Hearing Set for ERISA Suit Settlement ----------------------------------------------------------- A fairness hearing on a US$47,000,000 settlement of a litigation filed against Delphi Corp. over an alleged violation of the Employees Retirement Income Security Act is set Nov. 13, 2007. The Delphi ERISA Consolidated Complaint was filed in the United States District Court for the Eastern District of Michigan on behalf of Plaintiffs and a class of all persons who were participants in or beneficiaries of the following Delphi- sponsored, defined-contribution plans: (1) the Delphi Savings-Stock Purchase Program for Salaried Employees in the United States; (2) the Delphi Personal Savings Plan for Hourly-Rate Employees in the United States; (3) the ASEC Manufacturing Savings Plan; and (4) the Delphi Mechatronic Systems Savings-Stock Purchase Program from May 28, 1999, to Nov. 1, 2005, and whose accounts included investments in Delphi or General Motors (GM) common stock. Plaintiffs allege that during the Class Period, the Defendants breached their fiduciary duties to Plaintiffs and the Class members by: * failing to prudently and loyally manage the Plans' assets; * failing to act in accordance with Plan documents and ERISA; * failing to monitor fiduciaries; * failing to disclose to and inform the other fiduciaries of the Plans of information which the other fiduciaries reasonably needed to know to fulfill their fiduciary duties to Plan participants and beneficiaries; and * breaching their obligations as co-fiduciaries. The Defendants in the case are: -- the Delphi Corporation Board of Directors' Executive Committee and its members; -- the Investment Policy Committee and its members; and -- J.T. Battenberg III, Robert H. Brust, Alan S. Dawes, Susan A. McLaughlin, and John D. Opie (collectively, the Delphi Officer and Director Defendants), -- General Motors Investment Management Company (GMIMCo), and -- State Street Bank & Trust Company. Not all claims are against every Defendant. Settlement Update On Aug. 31, 2007, Plaintiffs filed their motion for preliminary approval of a Settlement between the Named ERISA Plaintiffs and Defendants Delphi, ASEC Manufacturing, Delphi Mechatronic Systems, the Delphi Corporation Board of Directors Executive Committee and its members, the Investment Policy Committee and its members, and the Delphi Director and Officer Defendants. Claims asserted against State Street are not a part of the Settlement. Plaintiffs continue to litigate their claims against State Street. On Sept. 5, 2007, the Court issued an order granting preliminary approval of the Settlement. At the Fairness Hearing, to be held on Nov. 13, 2007 at 9:30 a.m., the Court will decide, among other things: -- whether to approve the Settlement; -- whether to dismiss with prejudice the litigation against Settling Defendants pursuant to the terms of the Settlement Stipulations; -- whether the Notice and the Publication Notice and the means of disseminating same were satisfactory and complied with applicable law; -- whether to bar all Barred Claims against the Releasee Parties by any Barred Person; -- whether to establish a reserve of 25% of the Gross Settlement Fund for a potential award of attorneys' fees and expenses; and -- whether to grant each Named Plaintiff a case contribution award of up to US$5,000 payable from the Gross Settlement Fund. As part of the Settlement, the Settling Defendants agree to pay US$47,000,000, consisting of Approximately US$22,500,000 in cash to be paid from available insurance policies, and an "allowed interest" in the Delphi Corporation Chapter 11 case that counsel expect to be valued at US$24,500,000. After payment of and establishment of reserves for any taxes and Court-approved costs, attorneys' fees, and expenses, including any Court-approved compensation to be paid to the Named Plaintiffs, the Settlement proceeds will be paid to the Plans and, after payment of implementation expenses, the remaining amount will be allocated to the Plan accounts of members of the Settlement Class according to a Plan of Allocation to be approved by the Court. If necessary, a Plan account will be created for those members of the Settlement Class who no longer have Plan accounts. Any payments to the Plans are subject to certain conditions and limitations set forth in the Settlement Stipulation. Until the Delphi ERISA Action has been concluded and fully and finally resolved with respect to all Barred Persons, there will be no distribution from the Net Settlement Fund that would cause the balance remaining in the Net Settlement Fund to be less than the aggregate of Named Plaintiffs' claims for potential damages with respect to all claims against Barred Persons that have not been concluded and fully and finally resolved. 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 INC: Lead Plaintiffs Object to Disclosure Statement ---------------------------------------------------------- Teachers' Retirement System of Oklahoma, Public Employees' Retirement System of Mississippi, Raiffeisen Kapitalanlage- Gesellschaft m.b.H., and Stichting Pensioenfonds ABP, the Lead Plaintiffs in the consolidated securities class action entitled In re Delphi Corp. Securities Litigation, Master Case No. 05-md-1725 (GER) (E.D.Mich.), relate that although the Debtors' Disclosure Statement addresses several of their concerns, it does not address all of them. The Lead Plaintiffs are, and represent, creditors, equity holders and parties-in-interest in the Debtors' Chapter 11 cases who bought certain of the Debtors' common stock and debt securities between March 7, 2000, and March 3, 2005. The Lead Plaintiffs contend that the Debtors, certain of the Debtors' current and former directors and officers, and certain other parties concealed and misrepresented the Debtors' true financial condition before and during the Class Period. The Lead Plaintiffs and the putative class assert damages in excess of US$1,000,000,000, Michael S. Etkin, Esq., at Lowenstein Sandler PC, in New York, notes. Over the course of several months in 2007, the Lead Plaintiffs, the Debtors and other parties to the Securities Litigation, with the assistance of a special master appointed by the U.S. District Court for the Eastern District of Michigan, conducted discussions and negotiations regarding a settlement of the Securities Litigation, Mr. Etkin relates. On Aug. 31, 2007, those discussions resulted in an agreement resolving the Securities Litigation as to the Debtors and certain other defendants. Contemporaneous with resolving the Securities Litigation, the Debtors prepared their Disclosure Statement and Joint Plan of Reorganization. The Lead Plaintiffs, Mr. Etkin says, have provided the Debtors with numerous comments, several of which have been incorporated into the Disclosure Statement and Plan. The parties have not yet been able to reach agreement on two of the Lead Plaintiffs' proposed revisions to the Disclosure Statement and Plan involving third party releases and certain conditions to the effectiveness of the Plan, Mr. Etkin informs Judge Drain. 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. EMBRATEL PARTICIPACOES: Launching Embratel IP for Companies ----------------------------------------------------------- Embratel Participacoes will launch Embratel IP -- a converged data, video and voice service for companies -- next year, news service Valor Economico reports. Business News Americas relates that Embratel Participacoes will still determine the cost of Embratel IP. The price would be accessible to small firms, Embratel Participacoes' corporate marketing director Paulo Pessoa assured BNamericas. Mr. Pessoa commented to BNamericas, "Instead of using a PABX, a router and a software house, companies will only need to contract Embratel." BNamericas notes that Embratel IP will technically be quadruple play. It will include mobile telephony. Embratel Participacoes would enter into accords with major mobile operators to provide the service, BNamericas states, citing Mr. Pessoa. Embratel Participacoes SA offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. Embratel Participacoes is rated by Moody's: * local currency issuer rating -- B1; and * senior unsecured debt -- B2. FORD MOTOR: Expresses Possible Expansion of Philippine Facility --------------------------------------------------------------- Ford Motor Co. could expand up to 7% its production facility in the Philippines if there is sustained local economic growth and if regional integration opened up more markets in Southeast Asia, the Philippine Daily Inquirer reports. However, Ford's vice-president for the governmental affairs in Asia-Pacific and Africa, Lian Benham, told the Inquirer that Ford is continually studying expansion opportunities in the country. Mr. Benham said "the ASEAN market is still largely untapped," indicating a possible future for its Philippine operations. However, Mr. Benham said that the company has to come up first with a competitive situation to make it a "feasible reality." The Ford official described the Philippine government's efforts to improve the country's competitiveness as "heartening." Mr. Benham added that Ford is "fully committed to the Philippines, which is a very key hub for Ford in the Asian region." Mr. Benham, who was in the Philippines on a three-day visit as part of the US-ASEAN Busines Council business mission, said that despite optimism on the Philippine market, investors are greatly concerned about the smuggling and high cost of power in the country. He also said that the strict implementation of the ban imposed on the importation of used vehicles was crucial to the expansion of the domestic vehicle market. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on July 30, 2007, Moody's Investors Service said that the performance of Ford Motor Company's global automotive operations for the second quarter of 2007 was significantly stronger than the previous year and better than street expectations. However, Moody's explained that the company continues to face significant competitive and financial challenges, and the rating agency expects that Ford's credit metrics and rate of cash consumption will likely remain consistent with no higher than a B3 corporate family rating level into 2008. According to the rating agency, Ford's corporate family rating is currently a B3 with a negative outlook. The rating is pressured by the shift in consumer preference from high margin trucks and SUVs, and by the need for a new 2007 UAW contract that provides meaningful relief from high health care costs and burdensome work rules, Moody's relates. In June 2007, S&P raised the Issue Rating on Ford's senior secured credit facilities to B+ from B. GERDAU SA: Inks Letter of Intent for 49% Stake Buy at Corsa ----------------------------------------------------------- Gerdau S.A. disclosed that the group has signed a letter of intent for the acquisition of a 49% stake in the capital stock of the holding company Corsa Controladora, S.A. de C.V., with its registered offices in Mexico City, Mexico. The company holds 100% of the capital stock of Aceros Corsa, S.A. de C.V. and of their distributors. Aceros Corsa, located in the city of Tlalnepantla, in the metropolitan region of Mexico City, is a long steel mini-mill producer (light commercial profiles) with an installed capacity of 150 thousand tons of crude steel and 300 thousand tons of rolled products annually. The Gerdau Group and Corsa Controladora's shareholders have also signed a commitment to implement a project for the production of structural profiles in Mexico. The project, which estimates US$400 million in investment, contemplates an annual installed capacity of 700 thousand tons of crude steel and rolled products. The mill will begin its operations in 2010. Gerdau is to disburse US$100.5 million in this transaction. The agreement is subject to approval by the Mexican anti-trust authorities and the operation is expected to be concluded before the end of the year. This association is part of the Gerdau Group's growth strategy for the Americas, expanding its presence in Mexico, which is the third largest market for steel products on the American continent. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. As reported on Oct 1, 2007, Moody's Investors Service confirmed the Ba1 corporate family ratings of Gerdau S.A. and Gerdau Ameristeel Corporation. The ratings agency also confirmed the Ba1 corporate family rating of the Brazilian operations of Gerdau, represented by Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos S.A. Meanwhile, the ratings for Chaparral Steel Company were withdrawn as all its rated debt will be retired. Moody's said the outlook for all ratings is stable. HEXCEL CORP: Earns US$17.3 Million in 2007 Third Quarter -------------------------------------------------------- Hexcel Corporation reported net income of US$17.3 million for the third quarter of 2007, compared to net income of US$15.7 million in last year. Net sales from continuing operations in the quarter were US$281.1 million, 11.4% higher than the US$252.3 million reported for the third quarter of 2006. Related operating income for the third quarter was US$30.2 million compared to US$23.9 million for the same period last year. Chief Executive Officer David E. Berges commented, "The third quarter saw continued strong sales to most of the commercial aerospace market. Sales to Boeing, regional aircraft builders and for engines and nacelles were up significantly for the third quarter in a row. Airbus sales were again down for the quarter, but only slightly as the impact of the A380 delay began a year ago. The first A380 has been delivered to Singapore Airlines and based on the current recovery schedule we expect favorable year-over-year sales comparisons going forward. We are encouraged that two new customers have recently committed to add the A380 to their fleet and hope to see renewed interest as this groundbreaking aircraft enters active service." "We generated nice year-over-year improvements in both gross margin and operating margin, and we still expect to meet our margin guidance targets for the year. With new aerospace programs, higher build rates, new product qualifications, new process developments and facilities underway, these are exciting times for us. The employees of Hexcel recognize the tremendous opportunities in front of them, and are working relentlessly to turn these opportunities into a more profitable future." As previously disclosed, the company completed the sale of EBGI to JPS Industries for an initial cash purchase price of US$62.5 million plus up to US$12.5 million of additional payments dependent upon future sales of the Ballistics product line. Any additional payments will be recorded as income when earned. Income Taxes The company's effective income tax rate for the third quarter 2007 was 29.5% as compared to 22.0% for the third quarter of 2006. The 2006 provision included the reversal of US$3.6 million of the valuation allowance against the company's U.S. deferred tax assets related to capital losses. The year to date tax rate is now 38.1%. The reduction in the third quarter rate as compared to the 42.3% in the first half of 2007 primarily reflects a favorable audit settlement, including the release of US$1.1 million of FIN 48 reserves. Gerdau expects its rate for the full year to be approximately 39%. Total Debt, Net of Cash Total debt, net of cash, of US$293.2 million as of Sept. 30, 2007 decreased by US$93.4 million from US$386.6 million as of Dec. 31, 2006. The year-to-date results include US$84.0 million of proceeds from the sale of the discontinued operations. The US$15.0 million liability recorded in the second quarter for the settlement of the Zylon matter is expected to be paid in the fourth quarter. About Hexcel Corp. 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. JAPAN AIRLINES: Three Firms Eye Credit Card Unit ------------------------------------------------ Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Credit Saison Co. are eyeing Japan Airlines Corp.'s credit card unit, JALCard Inc., Bloomberg News reports, citing five people familiar with the matter. JAL asked local and overseas firms last week to submit acquisition proposals by Oct. 31, the sources, who refused to be identified, told Bloomberg. According to the sources, Credit Saison plans to tie up with Mizuho Financial Group Inc. to buy a stake in JALCard, which has 2 million cardholders. Bloomberg notes that JAL President Haruka Nishimatsu is selling businesses not related to aviation in order to cut the carrier's debt by 12% this fiscal year. The cardholders spend an average of JPY860,000 a year, making them attractive to the Japanese banks, which face increasing competition from Citigroup Inc. and HSBC Holdings PLC. "JALCard has high-income customers," Bloomberg quotes Credit Suisse Group analyst Osuke Itazaki as saying. "A sale of the unit would give Japan Airlines funds to either pay down debt or buy new planes." JAL has appointed Mizuho Securities Co. as financial adviser to the transaction, the sources said. The airline hasn't decided on whether to sell the entire unit and has asked potential bidders for proposals on the size of the stake and possible future cooperation, they further relayed to Bloomberg. According to the report, JAL spokesman Stephen Pearlman, Mizuho spokeswoman Masako Shiono, Mitsubishi UFJ's spokesman Takashi Miwa, Credit Saison's spokesman Akira Miyashita and Sumitomo Mitsui spokesman Tetsu Morishima all declined comment regarding the bidding for JALCard. 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. * * * As 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. As 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. Moody's said 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. REXAM PLC: To Build New Beverage Can Plant in Denmark ----------------------------------------------------- Rexam Plc disclosed plans to build a greenfield aluminium beverage can plant in Fredericia, Denmark. The new facility, which is the first of its kind in Denmark, represents a capital investment of some GBP78 million (EUR112 million) spread over three years, two thirds of which will be incurred in 2008. The plant is expected to be operational during the first half of 2009 and is being built in response to strong growth in the region and increasing customer demand. It will initially have a capacity of 1.2 billion cans and produce 33cl and 50cl cans. Due to this strong growth, the European beverage can industry overall is running at very high utilization rates. The new plant supports Rexam's capacity needs and will help to optimize its supply of beverage cans to the Northern European market. "This is a significant investment for our customers and for Rexam," Leslie Van de Walle, Chief Executive Officer, Rexam, commented. "The European beverage can market, excluding Germany, has grown annually by 8% in recent years and is anticipated to continue to grow at a similar rate over the next three years fuelled, among others things, by strong growth in the Nordic region. Our new plant will enable us to capture growth, better serve our customers and further consolidate our global leadership position in beverage cans." Mr. Van De Walle added. Headquartered in London, England, Rexam Plc -- http://www.rexam.com/-- is a global consumer packaging company and a beverage can maker. Rexam serves the beverage, beauty, pharmaceuticals and food markets with around 100 manufacturing operations in more than 20 countries, including Brazil and Indonesia and generated revenues of GBP3.7 billion. * * * In June 2007, Moody's Investors Service assigned a provisional (P)Ba2 rating to the proposed issuance of capital securities by Rexam Plc rated Baa3 for senior unsecured debt. The assigned rating and the basket designation will be subject to satisfactory final documentation. Moody's said the outlook for the ratings is stable. * BRAZIL: Petrobras Opens Fuel Distribution Feasibility Studies --------------------------------------------------------------- Brazilian state-owned oil company Petroleo Brasileiro SA will conduct feasibility studies for a fuel distribution hub in Juiz de Fora, Minas Gerais, Business News Americas reports. According to Petroleo Brasileiro's statement, Petroleo Brasileiro signed a memorandum of understanding with Juiz de Fora mayor Carlos Alberto Bejani for the studies. The studies would last until the end of March 2007. Once the project was found feasible, Juiz de Fora would construct the infrastructure before Petroleo Brasileiro deploys the fuel distribution unit, BNamericas states. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. =========================== C A Y M A N I S L A N D S =========================== ALEX LEASING: Holding Final Shareholders Meeting on Nov. 2 ---------------------------------------------------------- Alex Leasing Limited will hold its final shareholders meeting on Nov. 2, 2007, at the registered office of the company. These agendas will be taken during the meeting: 1) accounting of the winding-up process and how the property has been disposed of to the date of the final winding-up on Nov. 2, 2007; and 2) authorizing the liquidator of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands BEAR STEARNS FUNDS: BofA Seeks Clarification of Injunction Order ---------------------------------------------------------------- Bank of America, N.A., and each of Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd., and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund, Ltd., entered into various derivative transactions, including without limitation interest rate, total return, credit spread, credit default and credit index swap transactions, pursuant to International Swaps and Derivatives Association, Inc., Master Agreements, dated Nov. 4, 2003, and July 31, 2006. Bank of America Securities, LLC, and each of the Foreign Debtors also entered into repurchase and reverse repurchase transactions pursuant to Master Repurchase Agreements, dated Dec. 5, 2003, and July 28, 2006. Due to the Foreign Debtors' financial conditions, the Bank of America Entities exercised their contractual rights, within the meaning of Section 561(a) of the Bankruptcy Code, to terminate the Derivative Transactions, and to accelerate the repurchase dates for all of the Repurchase Transactions, Jantra Van Roy, Esq., at Zeichner Ellman & Krause, LLP, in New York, tells the U.S. Bankruptcy Court for the Southern District of New York. On June 18, 2007, the Foreign Debtors, its manager Bear Stearns Asset Management, Inc., and the Bank of America Entities entered into a termination and purchase agreement, which provided, among other things, that: (a) the Foreign Debtors will sell to Bank of America Securities each of the securities subject to the Repurchase Transactions under each of the Repurchase Agreements; (b) BANA will pay to Bank of America Securities all amounts owing to the Debtors as a result of the termination of the Derivate Transactions; and (c) the Foreign Debtors will transfer to BANA all voting, consent, and direction rights that they are entitled as a holder of "Preference Shares," as the term is defined in the Private Placement Agency Agreement between Bank of America and the Debtors. The TPA also provided that so long as BSAM is Collateral Manager within the meaning of the Placement Agreement, BANA will have consent rights over each asset purchase, asset sale, entry into hedge transaction, or any other action BSAM may take. BANA will also have consent rights over any exercise by BSAM of any voting power, discretionary power, or any other rights and powers that the Collateral Manager has. To effectuate the transfer of the rights, the Enhanced Fund, as Issuer, issued to BANA a "Voting Share." The Enhanced Fund and LaSalle Bank National Association, as trustee, under an indenture, dated May 24, 2007, also amended the Indenture to provide that all of the voting, consent, approval and direction rights of the Preference Shares and the Preference Shareholders will be exercised solely by the Voting Shareholders. The transfer of rights caused BANA to be the holder of the Enhanced Fund's sole outstanding Voting Share, Mr. Van Roy says. Mr. Van Roy tells the Court that BANA wants to exercise its Voting Right to consent to and vote in favor of further amending the LaSalle Indenture and related documents to provide that: (1) no payment will be made to any Preference Shareholder unless and until the entire indebtedness on all of the Enhanced Fund's outstanding Secured Floating Rates Notes of various classes and seniority have been paid and discharged; and (2) all of the Enhanced Fund's discount current and future commercial paper notes outstanding, have been paid and discharged and no more CP Notes will be issued by the Enhanced Fund. Aristotelis Alexandros Galatopoulos, Esq., at Maples and Calder, in George Town, Cayman Islands, representing the Bank of America Entities, relates that the Enhanced Fund has share capital of US$950 divided into: -- 250 Ordinary Shares of a par value of $1 each, -- 60,000 Preference Shares of US$0.01 par value each; and -- 100 Voting Shares of US$1 par value each. BANA retained Maples and Calder to give opinion on Cayman Island laws. Accordingly, BANA asks the U.S. Bankruptcy Court to determine that the preliminary injunction order issued by the Hon. Burton Lifland does not bar it from exercising its Voting Rights. In the alternative, BANA asks the Bankruptcy Court to modify the Injunction Order to permit it to exercise its Voting Right. Mr. Van Roy asserts that the Injunction Order does not bar BANA's proposed exercise of voting rights because the exercise is not barred by Cayman Islands law. Mr. Van Roy points out that, on filing of a winding down proceeding in the Cayman Islands, a stay prohibiting unsecured creditors and investors from pursuing or commencing a "suit, action, or proceeding" is effected pursuant to Section 101 of the Cayman Islands Companies Law (2007 Revision) to enable an insolvent company to avoid the inconvenience and expense of litigation. BANA's proposed exercise of its Voting Right does not constitute a "suit, action, or proceeding," thus it is not stayed by Cayman Islands law Mr. Van Roy also noted that the joint official liquidators of the Bear Stearns Funds have advised him that they believe that BANA's exercise of its Voting rights would not violate the Injunction Order. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On Aug. 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than US$100,000,000 each. (Bear Stearns Funds Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) BEAR STEARNS FUNDS: Bankruptcy Appeal Assigned to Judge R. Sweet ---------------------------------------------------------------- The appeal filed by Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd., and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund, Ltd., from the order of Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York denying their request for protection under Chapter 15 of the Bankruptcy Code is assigned to Judge Robert Sweet of the U.S. District Court for the Southern District of New York (Foley Square). In a letter to Judge Sweet, Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, proposed a briefing schedule, which provides for deadlines for the submission of any amicus briefs relating to the Appeal: Nov. 7, 2007 -- Deadline for submission of Appellant's opening brief and any amicus briefs in support of the Appeal Nov. 8, 2007 -- Deadline for submission of amicus briefs, if any, in opposition to the Appeals Dec. 12, 2007 -- Deadline for submission of Appellant's reply to any amicus briefs submitted in opposition to the Appeals Mr. Hodara, on behalf of Simon Lovell Clayton Whicker and Kristen Beighton at KPMG, the Bear Stearns Funds' official liquidators, also proposed that any amicus briefs would be required to be filed concurrently with the appropriate application seeking leave from the District Court to file that brief. Mr. Hodara told Judge Sweet that the Funds' Appeal present an unusual circumstance in that there is no appellee because the matter on appeal was uncontested before the Bankruptcy Court. Judge Lifland's Decision has also received significant press coverage both in the United States and outside the United States, and sparked public commentary and discussion because of its implications. Mr. Hodara further said that the Appeal raised an issue of first impression in the United States relating to the application of Chapter 15. Thus, Mr. Hodara believes that non-parties may wish, subject to receiving leave from the District Court, to submit amicus briefs in support of, and in opposition to, the Appeals. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On Aug. 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than $100,000,000 each. (Bear Stearns Funds Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) BJK INC: Last Day To File Proofs of Claim Is Nov. 15 ---------------------------------------------------- B.J.K. Inc.'s creditors are required to submit proofs of claim by Nov. 15, 2007, to Kingsley G. Campbell, 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. B.J.K. Inc.'s shareholders agreed on Sept. 21, 2007, to place the company into voluntary liquidation under The Cayman Islands' Companies Law (2007 Revision). The liquidator can be reached at: Kingsley G. Campbell 103 Ronan Avenue Toronto, Ontario Canada M4N 2Y2 Tel: 416-481-0455 CAYMAN DFK: Will Hold Final Shareholders Meeting on Nov. 2 ---------------------------------------------------------- Cayman DFK will hold its final shareholders meeting on Nov. 2, 2007: Deutsche Bank (Cayman) Limited Boundary Hall, Cricket Square Grand Cayman KY1-1104, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation to the shareholders. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: David Dyer P.O. Box 1984 Grand Cayman KY1-1104, Cayman Islands Telephone: (345) 949-8244 Fax: (345) 949-5223 CBO HOLDINGS: Sets Final Shareholders Meeting for Nov. 2 -------------------------------------------------------- CBO Holdings VI Ltd. will hold its final shareholders meeting on Nov. 2, 2007: Deutsche Bank (Cayman) Limited Boundary Hall, Cricket Square Grand Cayman KY1-1104, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation to the shareholders. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: David Dyer P.O. Box 1984 Grand Cayman KY1-1104, Cayman Islands Telephone: (345) 949-8244 Fax: (345) 949-5223 CHIEN KUO: Creditors Have Until Nov. 16 To File Proofs of Claim --------------------------------------------------------------- Chien Kuo Group Holdings Limited's creditors are given until Nov. 16, 2007, to submit proofs of claim to Richard L. Finlay at Conyers Dill & Pearman, 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. Chien Kuo's sole shareholder shareholders agreed on Sept. 30, 2007, to place the company into voluntary liquidation under The Cayman Islands' Companies Law (2007 Revision). The liquidator can be reached at: Richard L. Finlay Conyers Dill & Pearman P.O. Box 2681 Cricket Square, Hutchins Drive Grand Cayman KY1-1111 Cayman Islands For inquiries, you may contact: Krysten Lumsden P.O. Box 2681 Georgetown Grand Cayman Tel: 345-945-3901 Fax: 345-945-3902 COMMERCIAL MORTGAGE: Holds Final Shareholders Meeting on Nov. 2 --------------------------------------------------------------- Commercial Mortgage Company III-R2, Inc., will hold its final shareholders meeting on Nov. 2, 2007: Deutsche Bank (Cayman) Limited Boundary Hall, Cricket Square Grand Cayman KY1-1104, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation to the shareholders. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: David Dyer P.O. Box 1984 Grand Cayman KY1-1104, Cayman Islands Telephone: (345) 949-8244 Fax: (345) 949-5223 COPPER BEECH: Final Shareholders Meeting Is on Nov. 2 ----------------------------------------------------- Copper Beech Financial Corporation Limited will hold its final shareholders meeting on Nov. 2, 2007: Deutsche Bank (Cayman) Limited Boundary Hall, Cricket Square Grand Cayman KY1-1104, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation to the shareholders. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: David Dyer P.O. Box 1984 Grand Cayman KY1-1104, Cayman Islands Telephone: (345) 949-8244 Fax: (345) 949-5223 DCC II: Final Shareholders Meeting Is on Nov. 2 ----------------------------------------------- DCC II Company R, Inc., will hold its final shareholders meeting on Nov. 2, 2007: Deutsche Bank (Cayman) Limited Boundary Hall, Cricket Square Grand Cayman KY1-1104, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation to the shareholders. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: David Dyer P.O. Box 1984 Grand Cayman KY1-1104, Cayman Islands Telephone: (345) 949-8244 Fax: (345) 949-5223 DENALI MANAGEMENT: Holding Final Shareholders Meeting on Nov. 2 --------------------------------------------------------------- Denali Management GP will hold its final shareholders meeting on Nov. 2, 2007: Deutsche Bank (Cayman) Limited Boundary Hall, Cricket Square Grand Cayman KY1-1104, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation to the shareholders. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: David Dyer P.O. Box 1984 Grand Cayman KY1-1104, Cayman Islands Telephone: (345) 949-8244 Fax: (345) 949-5223 DIAMOND FINANCIAL: Sets Final Shareholders Meeting for Nov. 2 ------------------------------------------------------------- Diamond Financial Corporation Limited will hold its final shareholders meeting on Nov. 2, 2007: Deutsche Bank (Cayman) Limited Boundary Hall, Cricket Square Grand Cayman KY1-1104, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation to the shareholders. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: David Dyer P.O. Box 1984 Grand Cayman KY1-1104, Cayman Islands Telephone: (345) 949-8244 Fax: (345) 949-5223 FLEET FUNDING: Sets Final Shareholders Meeting for Nov. 2 --------------------------------------------------------- Fleet Funding I Limited will hold its final shareholders meeting on Nov. 2, 2007: Deutsche Bank (Cayman) Limited Boundary Hall, Cricket Square Grand Cayman KY1-1104, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation to the shareholders. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: David Dyer P.O. Box 1984 Grand Cayman KY1-1104, Cayman Islands Telephone: (345) 949-8244 Fax: (345) 949-5223 KED INVESTMENTS: Creditors Must File Proofs of Claim by Nov. 15 --------------------------------------------------------------- KED Investments IV Ltd.'s creditors are required to submit proofs of claim by Nov. 15, 2007, to Stuart Corporate Services Ltd., 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. KED Investments' shareholders agreed on Sept. 6, 2007,to place the company into voluntary liquidation under The Cayman Islands' Companies Law (2007 Revision). The liquidator can be reached at: Stuart Corporate Services Ltd. 4F, Cayman Financial Centre 36A Dr. Roy's Drive, George Town P.O. Box 2510 Grand Cayman, KY1-1104 Cayman Islands Tel: 345-949-3344 Fax: 345-949-2888 KED INVESTMENTS: Sets Final Shareholders Meeting for Nov. 16 ------------------------------------------------------------ KED Investments IV Ltd. will hold its final shareholders meeting on Nov. 16, 2007, at 9 a.m. to take up these matters: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. KED Investments' shareholders agreed on Sept. 6, 2007, to place the company into voluntary liquidation under The Cayman Islands' Companies Law (2007 Revision). The liquidator can be reached at: Stuart Corporate Services Ltd. 4F, Cayman Financial Centre 36A Dr. Roy's Drive, George Town P.O. Box 2510 Grand Cayman, KY1-1104 Cayman Islands Tel: 345-949-3344 Fax: 345-949-2888 SLS BPI: Holding Final Shareholders Meeting on Nov. 2 ----------------------------------------------------- SLS BPI Fund, Ltd., will hold its final shareholders meeting on Nov. 2, 2007 at 9:00 a.m., at: Ogier Queensgate House, South Church Street Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process and how the property has been disposed of to the date of the final winding-up on Nov. 2, 2007; and 2) authorizing the liquidator of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Ogier Attention: Julie O'Hara Attorneys, Queensgate House South Church Street, Grand Cayman Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1986 ========= C H I L E ========= COEUR D'ALENE: Appoints Officers in South America & Alaska ---------------------------------------------------------- Coeur d'Alene Mines Corporation has appointed key personnel at its growth projects, San Bartolome, Bolivia silver mine and Kensington, Alaska gold mine. Both mines are progressing toward the operations and production phase of development. "We are very pleased to announce that our San Bartolome silver mine and Kensington gold mine have almost completed construction and are moving toward the operations and production phase," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. "In tandem with this, Coeur has significantly strengthened its operations management team to secure the company's position as it moves to its next level of strategic growth. Production at San Bartolom� remains on schedule to begin producing nine million ounces of silver annually, beginning in February. Additionally, construction at Kensington is over 90% complete and the process plant and ancillary construction activities, including pre-operational testing, are fully complete." San Bartolome, Bolivia At San Bartolome, Rick Irvine has been appointed General Manager for the mine in Potosi, Bolivia. Mr. Irvine recently joined Coeur and Empresa Minera Manquiri, Coeur's Bolivian subsidiary. He has 17 years of mining experience in Canada, Argentina, Chile, Honduras, Nicaragua, as well as Bolivia. Mr. Irvine was most recently Operations Manager at the Manantial Espejo development project in Argentina. He was also previously Vice President and Chief Operating Officer of Apogee Minerals. As San Bartolomr moves toward its expected February 2008 startup, over 1,600 personnel on site at the project have surpassed 2 million man-hours without a lost time accident. All major construction contracts have been awarded for the project, with engineering 100% complete, and procurement of equipment and materials 98% complete. Kensington, Alaska At Kensington -- Coeur's major gold project near Juneau, Alaska -- Tom Henderson has been promoted to General Manager for Coeur Alaska. Mr. Henderson has been Mine Manager at Coeur's Kensington Mine since beginning with the company in late 2006. Effective Nov. 1, Mr. Henderson will also become General Manager of the Kensington as it moves toward its production phase. Mr. Henderson was previously a mining manager at the Robinson Mine in Ruth, Nevada, and also worked at the Goldstrike Mines in Carlin, Nevada. Mr. Henderson was also mine manager at the Grasberg Mine, one of the world's largest mines located in Indonesia. Mr. Henderson brings a total of 29 years of mining operations experience to his new position at Kensington. Construction at Kensington is over 90% complete. The process plant and ancillary construction activities, including pre- operational testing, are fully complete. A supplemental operations team remains focused on improving the process plant control systems, as well as other minor activities including sediment control, overall site maintenance, and weather conditioning. Additional Personnel Changes Bernie O'Leary was named Director of Technical Services, based in Sydney Australia. Mr. O'Leary succeeds Stuart Mathews, who was promoted to lead the Palmarejo silver and gold project in Chihuahua Mexico. Mr. O'Leary brings with him 23 years of mine production management and planning experience at small to large mine operations in both New Zealand and Australia and, most recently, was mining manager at Barrick's Cowal Gold Mine in NSW, Australia. Greg Blaylock was named to Manager of Mining for the Palmarejo Project in Chihuahua, Mexico; Hector Figueroa was named to Geology Manager at Palmarejo. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. =============== C O L O M B I A =============== AES CORP: Unit Says It Will Proceed with Brasiliana Stake Buy ------------------------------------------------------------- AES Brasil head Britaldo Soares told reporters that it is still keen on buying a 49.9% stake in the Brasiliana holding firm from Banco Nacional de Desenvolvimento Economico e Social SA. As reported in the Troubled Company Reporter-Latin America on Oct. 16, 2007, AES Corp. said that it could use up to US$600 million from the placement of senior unsecured notes to fund the acquisition of the Brasiliana stake. Banco Nacional, along with AES, would hire an independent auditor to appraise Brasiliana's value. Banco Nacional wants to sell its 49.99% stake in Brasiliana, where AES holds 50.01%. Mr. Soares commented to BNamericas, "AES' main interest in Brazil is its Brasiliana stake and we're interested in using our option to purchase the shares we don't own." He was referring to AES' right of first refusal. BNamericas states that these firms are also considering buying 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. =================================== D O M I N I C A N R E P U B L I C =================================== ALCATEL-LUCENT: To Broaden Unified Communication Offer w/ Sagem -------------------------------------------------------------- Alcatel-Lucent and Sagem Communications have launched an embedded version of Sagem-Interstar's Fax over IP server technology XMediusFAX within the Alcatel-Lucent OmniTouch Unified Communication suite. The combined solution is aimed at offering customers worldwide a Fax over IP solution fully integrated into their communication environment. Users can easily send/receive faxes directly from their email client. Faxes are easier to track, manage and archive. For many industries, faxing is and remains a legally binding and essential means of communication in business-to-business exchanges. The XMediusFax technology complements the OmniTouch UC solution with simple, flexible and field-proven capabilities. The T.38 FoIP technology is a globally accepted, secure, and reliable way to quickly transmit faxes over IP networks and the Internet. Customers benefit from the advantages of a packaged "ready to go" solution that features greater optimization between fax, voice, email, calendaring, instant messaging and collaboration. The joint solution boosts employee productivity by providing rapid fax delivery and an efficient means of fax broadcasting. It streamlines workflow management and creates an audit trail fully in line with security & regulatory requirements. It also reduces hardware and maintenance costs, as its full boardless Fax over IP solution eliminates dedicated analog fax lines, as well as specialized fax equipment, maintenance and supplies. Additionally, both resellers and customers benefit from simplified ordering and improved cost structure of an integrated solution. "Sagem-Interstar's FoIP platform is a simple and elegant solution that is easily customizable for OEM integrations on platforms such as Windows and Linux. Our FoIP server, which pioneered the boardless IP fax market, is the most widely-tested and field-proven FoIP solution in the industry," said Patrick Sevian, CEO Sagem Communications. "Sagem Communications is proud of having Alcatel-Lucent broadening its already leading solution with our technology." "At Alcatel-Lucent, we believe building the right relationships and joint solutions to support our customers goals is critical in today's market. With Sagem, we are bringing our customers the first IP Telephony offer with a fully integrated Fax over IP and multimedia solution as part of our OmniTouch Unified Communication suite." said Tom Burns, President of the Alcatel- Lucent's Enterprise activities. "By integrating simple yet business critical tasks like faxing, which is still an essential means of communication for many industries, we allow our customers to leverage their investment in communications to streamline the business processes." About Sagem Communications Sagem Communications is a major player in the fields of communication, having acquired international positions thanks to a high innovative potential. The SAGEM products benefit from a particular awareness in the following activities: printing terminals, residential terminals, digital TV set-top boxes, systems, electronic metering. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * The Troubled Company Reporter-Asia Pacific reported on Sep. 19, 2007, that Standard & Poor's Ratings Services revised its outlook on international equipment supplier Alcatel-Lucent and related entity Lucent Technologies Inc. to stable from positive. At the same time, the 'BB-' long-term corporate credit ratings on the group were affirmed. The 'B' short-term corporate credit rating on Alcatel-Lucent and 'B-1' short-term rating on Lucent Technologies were also affirmed. As reported on April 13, 2007, Fitch Ratings affirmed Alcatel- Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. ============= E C U A D O R ============= INDUSTRIAS METALURGICAS: S&P Affirms B Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on Industrias Metalurgicas Pescarmona S.A.I.C. y F, aka IMPSA. The outlook remains stable. Standard & Poor's also affirmed its senior unsecured debt rating on IMPSA's issuance of US$225-million, seven-year, 11.25% fixed- rate bonds, with final maturity in 2014. According to S&P, proceeds would be applied to redeem outstanding bonds for about US$133.4 million, with final maturity in 2011 -- through a call option at an exercise price of 85% of principal, according to the original terms and conditions. The remaining will be used to prepay outstanding bank and financial debt. As of July 31, 2007, IMPSA's total consolidated debt was about US$320 million, of which about US$110 million was short-term. "Pro forma the US$225 million issuance, IMPSA's financial profile will benefit from an expected extension in its debt maturity profile," said Standard & Poor's credit analyst Ezequiel Gomez Caceres. The ratings on IMPSA reflect the company's high leverage and its exposure to the volatility in the capital goods market and to the fluctuations of the economic activity in the main countries where IMPSA operates. The rating also incorporates the significant concentration of the company's backlog in a small number of large-scale projects. Those factors are partially mitigated by IMPSA's adequate competitive position in the hydropower generation turbines business and the crane manufacturing industry, as well as certain geographic diversification. The rating also incorporates the expected improvement in IMPSA's cash generation and financial profile, resulting from the company's sizable backlog and a significant extension of its debt maturity profile, based on the company's refinancing process. IMPSA benefits from a sizable backlog that grew significantly to approximately US$1.7 billion as of July 2007 from US$825 million in December 2006. The growth stems from sustained economic growth in most of the countries where the company operates and the increasing search for new sources of renewable energy. The current backlog represents about 6.4x the sales of the fiscal year ended Jan. 31, 2007. Standard & Poor's expects this significant backlog growth to result in a higher, more predictable level of revenues and cash generation in the medium term. According to the projects schedule, Standard & Poor's expects IMPSA's EBITDA generation to be about US$65 million in fiscal 2007 and to increase significantly in 2008, reaching approximately US$115 million to US$135 million in fiscal 2008 and 2009. Standard & Poor's also expects EBITDA interest coverage ratios to improve more than 3.5x in fiscal 2008 and 2009, from an estimated level of 2.0x in 2007. Although Standard & Poor's expects IMPSA to maintain high debt levels during fiscal 2007 (with a total debt-to-capitalization ratio of about 75% and a total debt-to-EBTIDA ratio of approximately 5.0x), the company's leverage should decrease (when measured as total debt-to-EBITDA) to levels lower than 3.0x in fiscal 2008 and beyond, as a result of the expected improvement in cash generation. Although profitability in the automobile parts and environmental engineering businesses has showed some improvement in recent fiscal years, Standard & Poor's believes that the hydroelectric turbine unit and the wind power generation unit's growth potential are the main forces of IMPSA's profitability and cash flow generation. IMPSA is engaged in providing equipment mainly for hydroelectric power generation and other renewable energies such as wind power projects. The company is also engaged in manufacturing and selling port crane systems, as well as wire harnesses in Mercado Comun del Sur. IMPSA also offers waste collection and disposal services in Argentina and Colombia. The stable outlook reflects the expectations of higher cash generation and a manageable debt maturity schedule. It also assumes the appropriate completion of IMPSA's main projects, as well as a continual, adequate backlog in the future. The ratings could be raised if higher-than-expected growth is recorded in backlog and income, which would allow a significant improvement in credit metrics. The ratings could be lowered if operating performance is lower than expected. The Percarmona family owns 93.73% of Industrias Metalurgicas Percarmona S.A.I.C. y F through Corporacion IMPSA S.A. IMPSA is engaged in providing integrated solutions for renewable energy, including hydroelectric and wind power projects and associated equipment, as well as in the Port Systems, auto parts and environmental services industries. IMPSA has a solid international presence, marketing and distributing its products and services from its branches and representation offices in Argentina, Brazil, China, Colombia, Ecuador, USA, the Philippines, India, Malaysia and Venezuela. PETROECUADOR: Esmeraldas Plant Operations Back to Normal -------------------------------------------------------- Ecuadorian state-run oil firm Petroecuador said in a statement that the Esmeraldas plant has returned to normal operations after maintenance work was completed at the C-H1 furnace. As reported in the Troubled Company Reporter-Latin America on Sept. 5, 2007, Petroindustrial, Petroecuador's subsidiary, closed down the refinery Esmeraldas' crude unit 1 due to scheduled maintenance. Petroecuador's said that the unit would be shut down for 17 days for maintenance works on the C-H1 oven. Descoque Decostre Tecnologia would conduct the works. Petroecuador told BNamericas that the refinery's crude unit 1 will run at maximum capacity. It would mean higher derivatives production and lesser imports. Ecuadorian President Rafael Correa promised that the government would work to modernize Ecuador's plants to reduce fuel import bills, which could exceed US$2 billion in 2007, BNamericas states. Petroecuador, according to published reports, is faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much-needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. ================= G U A T E M A L A ================= IMAX CORP: Signs Theatre Deal in Morocco with Al Amine ------------------------------------------------------ IMAX Corporation entered into an agreement with Al Amine Investissement, a commercial retail developer in Morocco, to install an IMAX(R) theatre in the city of Casablanca. Scheduled for installation in early 2009, the IMAX theatre will be an anchor attraction at the new Morocco Mall, which is expected to be the largest mall in the country. The announcement marks IMAX's first contract in Morocco. Under the terms of the agreement, the developer is contracted to install an IMAX MPX(R) theatre system, and both parties have agreed to install IMAX's new digital theatre system instead if it becomes available on or before the installation date. IMAX's digital theatre system is currently in the advanced stages of development. "Our entry into Morocco reflects the growing international appeal of the IMAX brand, which currently has a presence in over 40 countries," said IMAX Co-CEO's and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "Al Amine Investissement is a leading commercial developer in Morocco, and through our partnership with them, we are looking forward to introducing the IMAX brand to moviegoers in and around Casablanca." "The IMAX Experience gives us the ability to offer a cinematic experience that far exceeds any other in Morocco," said Selwa Akhannouch, President and Director General, Groupe Aksal, a co- owner of Al Amine Investissement. "We believe the IMAX theatre will be a perfect fit for our project in Casablanca because the world-famous IMAX brand brings a prestigious image to our mall." Emad Eldin Abdalla, Director General of Nesk Investment, which is also a co-owner of Al Amine Investissement, added, "The new IMAX theatre enables us to offer moviegoers a whole new way to experience Hollywood movies. Further, our new IMAX theatre will deliver a cinematic experience that consumers can't get at home -- and that will be good for all areas of our business at this location." The IMAX theatre will be capable of playing Hollywood event films that have been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience(R), as well as original IMAX productions in 2D and IMAX(R) 3D. About the Morocco Mall Morocco Mall is the largest shopping mall project across North Africa. Taking advantage of a strategic location of 24.71 acres along the ocean, the site promises to become a destination for an anticipated 15 million visitors per year. Only ten minutes from the city centre of Casablanca, with five points of entry, 200 stores, 40 restaurants and several leisure and entertainment venues, Morocco Mall will considerably increase the commercial and leisure offering available to residents and tourists in Casablanca. About Al Amine Al Amine Investissement is jointly held by Aksal Group and Nesk Investment, two large franchise and fashion operators in Morocco who have contributed to the development of the Moroccan commercial landscape. Aksal and Nesk already have secured relationships with renowned fashion giants such as Zara, Mango, Massimo Dutti, Promod, La Vie En Rose, Aldo, Zara Home and Stradivarius. Aksal and Nesk are joining efforts to launch the Morocco Mall. Al Amine Investissement is committed to leading the economic growth of Morocco into the 21st century. About IMAX Corporation Based in New York City and Toronto, Canada, IMAX Corporation (NASDAQ:IMAX; TSX:IMX) -- http://www.imax.com/-- is an entertainment technology company, with emphasis on film and digital imaging technologies including 3D, post-production and digital projection. IMAX is a fully-integrated, out-of-home entertainment enterprise with activities ranging from the design, leasing, marketing, maintenance, and operation of IMAX(R) theatre systems to film development, production, post- production and distribution of large-format films. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. IMAX has locations in Guatemala, India, Italy, among others. At June 30, 2007, the company's balance sheet showed total assets of US$220.2 million and total liabilities of US$284 million, resulting in a total shareholders' deficit of US$63.8 million. =========== G U Y A N A =========== DIGICEL GROUP: Says Guyana Telephone Rip Off Int'l Call Clients --------------------------------------------------------------- Digicel Group Chief Executive Officer Dennis O'Brien told Guyanese news daily Stabroek News that Guyana telecom incumbent Guyana Telephone & Telegraph Co. has cheated on its telephony subscribers' international calls. Stabroek News relates Mr. O'Brien criticized Guyana Telephone's monopoly of international long distance calls, prompting a sharp response from the Guyanese telecom incumbent's chief executive officer Joe Singh. Guyana Telephone's monopoly on the long distance voice and data telephony markets was scrutinized after the Americas II fiber optic cable was damage in May 2007, according to Stabroek News. All of Guyana's long distance calls are "traditionally routed" through the firm's network. As an emergency measure, the Guyanese government granted Digicel interim long distance license to route communications from the country via satellite. Mr. O'Brien commented to Stabroek News, "If you're a Digicel customer in Jamaica and y