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 Friday, October 26, 2007, Vol. 8, Issue 213 Headlines A R G E N T I N A ACXIOM CORP: Earns US$20.4 Mil. in Second Quarter Ended Sept. 30 ALITALIA SPA: Aeroflot to Decide on Bid in Two Weeks CER SA: Proofs of Claim Verification Deadline Is Nov. 14 CUVERA AGROPECUARIA: Files for Reorganization Petition FRIGORIFICO FERNAROLO: Trustee Attests Claims Por Via Incidental OCCIDENTAL LABEL: Trustee Filing Individual Reports on Feb. 6 SATELY SA: Trustee Verifies Proofs of Claim Until Dec. 10 SER SALUD: Proofs of Claim Verification Is Until Dec. 10 WR GRACE: Reports US$16.7-Mil. Net Income in Qtr. Ended Sept. 30 B A H A M A S JETBLUE AIRWAYS: Earns US$23 Million in Third Quarter UTSTARCOM INC: Gets Notice of Default from 7/8% Notes Trustee TUPPERWARE BRANDS: Earns US$6.9 Mil. in Quarter Ended Sept. 29 B E R M U D A BV ASSET: Proofs of Claim Filing Is Until Oct. 31 LSF3 LATHROP: Proofs of Claim Filing Is Until Nov. 7 MONTPELIER RE: Earns US$101.3 Million in Quarter Ended Sept. 30 MORPHEX (BERMUDA): Supreme Court Hearing Wind-Up Petition Today UNIDO INVESTMENTS: Proofs of Claim Filing Deadline Is Nov. 7 UNICOM ASSURANCE: Proofs of Claim Filing Ends on Nov. 7 WYNRIGHT INSURANCE: Proofs of Claim Filing Deadline Is Nov. 2 B O L I V I A INTERMEC INC: Inks License Pact with Metrologic Instruments B R A Z I L BANCO NACIONAL: Directors Approve BRL124.3-Mln Loan to Sistema BANCO NACIONAL: Okays BRL120.4-Mil. Loan for Two Power Plants BAUSCH & LOMB: Named Defendant in 573 Product Liability Suits COMPANHIA PARANAENSE: Invests BRL7BB Under 2008-16 Business Plan FIAT SPA: Great Wall Motor Says It Did Not Copy Panda Model GENERAL MOTORS: Mulls 1,000 Lay Offs at Lansing Delta Township HERCULES INC: Third Qtr. Net Income Up to US$42.4 Mil. in 2007 IWT TESORO: Court Approves Focus Management as Financial Advisor METROLOGIC INSTRUMENTS: Inks License Pact with Intermec NOVELL INC: Appoints Tim Wolfe as President, Novell Americas WESTERN UNION: Sept. 30 Balance Sheet Upside-Down by US$146.4MM C A Y M A N I S L A N D S BLACKSTONE FIFTH: Creditors To File Proofs of Claim on Nov. 22 BLACKSTONE PARTNERS: Creditors Have Until Nov. 22 To File Claims CABLE & WIRELESS: Unit Investing J$2.8B on Cellular Towers GROPO LTD: Creditors Must File Proofs of Claim by Nov. 30 HIGHLAND SPECIAL: Proofs of Claim Filing Is Until Nov. 30 OPPORTUNITIES JAPAN: Proofs of Claim Filing Is Until Nov. 22 PACIFICA PARTNERS: Holding Final Shareholders Meeting on Nov. 2 PLAZA MIDOUSUJI: Sets Final Shareholders Meeting for Nov. 2 RHOMBUS CDO: Holding Final Shareholders Meeting on Nov. 2 RMB CDO: Final Shareholders Meeting Is on Nov. 2 ROKUMEI HOLDINGS: Sets Final Shareholders Meeting for Nov. 2 ROSFIN GP: Will Hold Final Shareholders Meeting on Nov. 2 SIRES 2000: Holding Final Shareholders Meeting on Nov. 2 SIRES LIMITED: Will Hold Final Shareholders Meeting on Nov. 2 SOVEREIGN INVESTMENT: Sets Final Shareholders Meeting for Nov. 2 SOLEIL FUNDING: Final Shareholders Meeting Is on Nov. 2 C H I L E NOVA CHEMICALS: Reports US$97-Mil. Net Income in 2007 Third Qtr. C O L O M B I A FREEPORT-MCMORAN: 2007 Third Qtr. Net Income Rises to US$763 Mln C O S T A R I C A COVANTA HOLDING: Earnings Up 19% to US$0.25 a Share in 3rd Qtr. * COSTA RICA: Obtains US$500-Million Financing from IDB D O M I N I C A N R E P U B L I C CAP CANA: To Modify Consent Solicitation Terms CAP CANA: Moody's Lifts Senior Secured Debt Rating to B2 E L S A L V A D O R MILLICOM INT'L: Morgan Joseph Reaffirms Buy Rating on Shares G U A T E M A L A ALCATEL-LUCENT: To Market Blackberry Phones in China with RIM H O N D U R A S * HONDURAS: Obtains US$40-Mil. Loan to Upgrade Corridor Highway J A M A I C A NATIONAL COMMERCIAL: Says No Money Is Stolen During Break-In NATIONAL WATER: Meeting with Kingston & St. Andrew Corp. M E X I C O AXTEL SAB: Reports MXN1,957.8 Million Third Quarter Gross Profit BEARINGPOINT: Bags US$50-Mln Deal for Motor Vehicle Tech Project EMPRESAS ICA: Inks Four Contracts with Proyecto Esmeralda FREESCALE SEMICONDUCTOR: Moody's Reviews Ratings for Downgrade HARMAN INTERNATIONAL: Inks New Agreement with KKR & GS Capital HARMAN INTERNATIONAL: Terminated Deal Cues S&P's Positive Watch HIPOTECARIA SU: Initiates Tender Offer on 8.50% Senior Notes MOVIE GALLERY: Court Okays Kurtzman Carson as Claims Agent MOVIE GALLERY: Court Okays Keen as Real Estate Consultants MOVIE GALLERY: Can Employ Lazard Freres as Financial Advisor RYERSON INC: Initiates Comprehensive Reorganization Plan X-RITE INC: Completes Pantone Acquisition for US$180 Million P A N A M A SOLO CUP: S&P Puts CCC+ Corp. Credit Rating under Positive Watch P A R A G U A Y AGILENT TECH: Moody's Puts Ba1 Rating on US$500-Mln Senior Notes MILLICOM INT'L: Tigo Revenues Increase 12% in Third Quarter 2007 P E R U FREEPORT-MCMORAN: Deutsche Reaffirms Buy Rating on Firm's Shares P U E R T O R I C O ANGIOTECH PHARMA: Moody's Lowers Corporate Family Rating to B3 CENTENNIAL COMM: Closes Spectrum Purchase in Key Midwest Markets ISMAR SECURITY: Case Summary & 17 Largest Unsecured Creditors PULTE HOMES: Posts US$787.9-Mln Net Loss in Third Quarter 2007 T R I N I D A D & T O B A G O HILTON HOTELS: Closes Merger Pact with Blackstone Affiliate V E N E Z U E L A CHRYSLER LLC: UAW Key Locals in Michigan Accept Labor Contract - - - - - ================= A R G E N T I N A ================= ACXIOM CORP: Earns US$20.4 Mil. in Second Quarter Ended Sept. 30 ---------------------------------------------------------------- Acxiom(R) Corporation disclosed its financial results for the second quarter of fiscal 2008 ended Sept. 30, 2007. Revenue for the three-month period was US$351.0 million, an increase of 0.8% over US$348.3 million for the comparable prior- year period. Income from operations for the three-month period equaled US$20.4 million compared to US$41.9 million for the quarter ended Sept. 30, 2006. Earnings of US$.13 per diluted share include the impact of US$14.8 million in unusual expense items net of income tax effect in the quarter. Charles D. Morgan, Acxiom's company leader and chairman of the board stated, "We are moving forward as an independent, publicly owned company. Despite the distraction of the recent course of events, the company posted a slight revenue increase for the quarter. In addition, we instituted an expense reduction plan during mid-September and we expect to see the benefit of the plan during the second half of the fiscal year." During the quarter, Acxiom expanded its interactive marketing offerings with the acquisition of New York-based EchoTarget, a leader in dynamic banner retargeting. The company provides customized targeting solutions for online advertisers and publishers, extending Acxiom's personalization expertise across digital channels that already include email, search and website. EchoTarget works with marketers and publishers to identify and target high-value marketing segments based on users' online behaviors. Those users are then targeted through relevant banners on the company's network of websites. Acxiom was named to the InformationWeek 500 list and ranked No. 117 among the 500 companies listed. For nearly 20 years, InformationWeek has identified and honored the nation's most innovative users of information technology. The list is unique among corporate rankings because it spotlights the power of innovation in information technology, rather than simply identifying the biggest IT spenders. For the fiscal year ending March 31, 2008, revenue is expected to be flat to up 1 percent compared to fiscal 2007. Earnings per diluted share, before the effect of any unusual gains or losses, is expected to be in the range of US$.69 to US$.73. Reflecting the US$35.4 million of unusual items recorded during the first two quarters of the fiscal year, and including the receipt of the US$65 million merger termination fee in the third quarter, earnings per diluted share for the fiscal year are expected to be between US$0.91 and US$0.95. In previous communications, the company provided financial guidance under a Financial Road Map. At the present time, the Company no longer intends to update this guidance. As such, previous guidance issued under the Financial Road Map should no longer be relied upon. Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. Acxiom has a team of specialists with sales and business development associates based in the largest Latin American markets: Brazil, Argentina and Mexico. * * * As reported in the Troubled Company Reporter on Oct. 3, 2007, Standard & Poor's Ratings Services said its 'BB' corporate credit rating on Little Rock, Arkansas-based Acxiom Corp. remains on CreditWatch with negative implications, where it was placed on May 17, 2007. At the same time, S&P also placed the 'BB' senior secured debt ratings on CreditWatch with negative implications, because the debt will no longer be refinanced as part of the LBO financing. ALITALIA SPA: Aeroflot to Decide on Bid in Two Weeks ---------------------------------------------------- OAO Aeroflot will decide in the next two weeks whether to bid for the Italian government's 49.9% stake in Alitalia S.p.A., various reports say. "We have inquired about the procedure, how Alitalia's management and board of directors see the sale of the state-run stake in the airline," Mikhail Poluboyarinov, Aeroflot's deputy chief executive officer for finance and planning, told Kommersant. Mr. Poluboyarinov, Bloomberg News reports, added Aeroflot may team up with another interested buyer for Alitalia and could raise up to EUR1 billion to fund the deal. As reported on Oct. 23, 2007, Alitalia will choose the buyer for Italy's stake on Nov. 10, 2007. Alitalia chairman Maurizio Prato told the Italian parliament that he will recommend an industrial buyer for Italy's stake within the first ten days of November, Agenzia Giornalistica Italia relates. The government will then decide how to finalize the sale of its stake. Alitalia decided to open talks, through the financial advisor Citi and industrial advisor Roland Berger, with: -- OAO Aeroflot, -- Air France-KLM, -- AP Holding S.p.A., -- Cordata Baldassarre, -- Deutsche Lufthansa AG, -- TPG Capital. 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. CER SA: Proofs of Claim Verification Deadline Is Nov. 14 -------------------------------------------------------- Oscar Alberto Vertzman, the court-appointed trustee for Cer S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 14, 2007. Mr. Vertzman will present the validated claims in court as individual reports on Dec. 28, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Cer 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 Cer's accounting and banking records will be submitted in court on Feb. 11, 2008. Mr. Vertzman is also in charge of administering Cer's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Oscar Alberto Vertzman Bartolome Mitre 3120 Buenos Aires, Argentina CUVERA AGROPECUARIA: Files for Reorganization Petition ------------------------------------------------------ Cuvera Agropecuaria S.A. has requested for reorganization approval after failing to pay its liabilities since May 27, 2005. The reorganization petition, once approved by the court, will allow Cuvera Agropecuaria 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. 14 in Buenos Aires. Clerk No. 27 assist in this case. The debtor can be reached at: Cuvera Agropecuaria SA Tandil 2746 Buenos Aires, Argentina FRIGORIFICO FERNAROLO: Trustee Attests Claims Por Via Incidental ---------------------------------------------------------------- Juan Carlos Vilanova, the court-appointed trustee for Frigorifico Fernarolo S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim "por via incidental." Mr. Vilanova will present the validated claims in court as individual reports. 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 Frigorifico Fernarolo 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 Frigorifico Fernarolo's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Mr. Vilanova is also in charge of administering Frigorifico Fernarolo's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Juan Carlos Vilanova Hipolito Yrigoyen 1349 Buenos Aires, Argentina OCCIDENTAL LABEL: Trustee Filing Individual Reports on Feb. 6 ------------------------------------------------------------- Jacobo Beker, the court-appointed trustee for Occidental Label S.A.'s bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on Feb. 6, 2008. Mr. Beker verifies creditors' proofs of claim until Nov. 16, 2007. He will submit a general report containing an audit of Occidental Label's accounting and banking records in court on March 19, 2008. Mr. Beker is also in charge of administering Occidental Label's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jacobo Beker Jeronimo Salguero 2244 Buenos Aires, Argentina SATELY SA: Trustee Verifies Proofs of Claim Until Dec. 10 --------------------------------------------------------- Clara Auerhan, the court-appointed trustee for Sately SA's reorganization proceeding, verifies creditors' proofs of claim until Dec. 10, 2007. Ms. Auerhan will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 12, 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 Sately 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 Sately's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on Sept. 29, 2008. The debtor can be reached at: Sately SA Juncal 4502 Buenos Aires, Argentina The trustee can be reached at: Clara Auerhan Uruguay 872 Buenos Aires, Argentina SER SALUD: Proofs of Claim Verification Is Until Dec. 10 -------------------------------------------------------- Jorge Daniel Alvarez, the court-appointed trustee for Ser Salud SRL's bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 10, 2007. Mr. Alvarez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 10 in Buenos Aires, with the assistance of Clerk No. 20, 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 Ser Salud 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 Ser Salud's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Alvarez is also in charge of administering Ser Salud's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ser Salud SRL Besares 4048 Buenos Aires, Argentina The trustee can be reached at: Jorge Daniel Alvarez Bartolome Mitre 1738 Buenos Aires, Argentina WR GRACE: Reports US$16.7-Mil. Net Income in Qtr. Ended Sept. 30 ---------------------------------------------------------------- W.R. Grace & Co. reported its financial results for the third quarter ended Sept. 30, 2007. Net income for the third quarter was US$16.7 million compared with net income of US$18.4 million in the prior year quarter. The 2007 and 2006 third quarters were negatively affected by Chapter 11 expenses, litigation and other matters not related to core operations. Excluding such costs, and after tax effects, net income would have been US$46.3 million for the third quarter of 2007 compared with US$40.3 million calculated on the same basis for the third quarter of 2006, a 14.9% increase. Pre-tax income from core operations was US$74.0 million in the third quarter compared with US$71.1 million in the prior year quarter, a 4.1% increase. Pre-tax operating income of the Grace Davison operating segment was US$47.6 million, up 4.4% compared with the third quarter of 2006, attributable principally to sales increases across most product groups and productivity gains. Pre-tax operating income of the Grace Performance Chemicals operating segment was US$54.1 million, up 4.2% compared with the third quarter of 2006, attributable primarily to higher sales of construction products (in regions other than North America) and packaging products worldwide. Corporate operating costs were US$1.3 million higher than the third quarter of 2006 due primarily to higher performance-based compensation. Sales for the third quarter were US$783.1 million compared with US$741.4 million in the prior year quarter, a 5.6% increase (2.4% before the effects of currency translation). The increase was attributable primarily to higher selling prices in response to rising raw material costs and to higher volumes in most product groups, particularly outside the United States. Sales increased 1.7% for the Grace Davison operating segment and 10.1% for the Grace Performance Chemicals operating segment. Geographically, sales were up 15.2% in Europe, 8.4% in Asia Pacific and 34.8% in Latin America, and down 7.9% in North America, where sales were adversely affected by a lower level of residential construction in the United States and lower sales of hydroprocessing catalysts. "Our business performance is on track to deliver strong financial results for 2007," said Grace's President and Chief Executive Officer Fred Festa. "The quarter-over-quarter comparison was adversely affected by refill order patterns of hydroprocessing catalysts, which were very strong last year, and the decline in U.S. housing starts, which continues to cause lower sales of construction products in North America. However, we have enjoyed good growth in several key product groups, and in Europe, Asia and Latin America where economic activity has been strong." Corporate Operating Costs Corporate costs related to core operations were US$27.7 million in the third quarter of 2007 compared with US$26.4 million in the prior year quarter, and US$74.4 million year-to-date 2007 compared with US$77.5 million in 2006. The decrease in year-to- date corporate operating costs was primarily attributable to lower pension costs from the effect of contributions made to defined benefit pension plans in recent years, and higher investment returns on pension plan assets. Pre-Tax Income (Loss) Noncore activities (as reflected in the attached Segment Basis Analysis) comprise events and transactions not directly related to the generation of operating revenue or the support of core operations. The pre-tax loss from noncore activities was US$12.8 million in the third quarter of 2007 compared with US$26.0 million in the prior year quarter, and US$39.6 million year-to-date 2007 compared with US$88.9 million in 2006. The year-to-date loss is principally due to: (1) a charge of US$12.0 million in the second quarter to adjust Grace's estimate of costs to resolve environmental remediation claims; and (2) defense costs of US$11.2 million related to legal proceedings arising from Grace's former vermiculite mining operations in Montana. Interest & Income Taxes Interest expense was US$17.4 million for the quarter ended Sept. 30, 2007, compared with US$18.8 million for the comparable period in 2006, and US$57.1 million year-to-date in 2007 compared with US$54.5 million last year. The year-to-date increase is attributable to the effects of compounding interest on certain liabilities subject to compromise over the course of the Chapter 11 proceeding. The annualized weighted average interest rate on such pre-petition obligations for the quarter was 6.1%. Income taxes are recorded at a global effective rate of approximately 35% before considering the effects of certain non- deductible Chapter 11 expenses and discrete adjustments for changes in uncertain tax positions. Income taxes related to foreign jurisdictions are generally paid in cash, while income taxes in the United States are generally offset by available net operating loss carryforwards. Cash Flow & Liquidity Grace's net cash inflow from operating activities for the nine months ended Sept. 30, 2007 was US$65.7 million, compared with a net cash inflow of US$49.4 million for 2006. The increase in cash flow from operating activities was principally attributable to higher pre-tax operating income offset by dividends to joint venture partners and cash paid to resolve certain tax contingencies. Pre-tax income from core operations before depreciation and amortization was US$311.2 million for the nine months ended Sept. 30, 2007, 13.0% higher than in the prior year, a result of the performance from core operations described above. At Sept. 30, 2007, Grace had available liquidity in the form of cash and cash equivalents of US$535.0 million, marketable securities of US$28.5 million, net cash value of life insurance of US$93.5 million, available credit under its debtor-in- possession facility of US$173.7 million and available credit under various non-U.S. credit facilities equivalent to US$89.3 million. Grace believes that these sources and amounts of liquidity are sufficient to support its business operations, strategic initiatives and Chapter 11 proceedings for the foreseeable future. About W.R. Grace Headquartered in Columbia, Md., W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally , including Argentina, Australia and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). James H.M. Sprayregen, Esq., at Kirkland & Ellis, and Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan LLP represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Anderson Kill & Olick, P.C., represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Martin W. Dies, III, Esq., at Dies & Hile L.L.P., and C. Alan Runyan, Esq., at Speights & Runyan, to represent it. Lexecon, LLP, provided asbestos claims consulting services to the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. ============= B A H A M A S ============= JETBLUE AIRWAYS: Earns US$23 Million in Third Quarter ----------------------------------------------------- JetBlue Airways Corporation reported Tuesday its results for third quarter 2007. Net income for the quarter was US$23 million, compared with third quarter 2006 net loss of US$500,000. Operating revenues for the quarter totaled US$765 million, representing growth of 21.9% over operating revenues of US$628 million in the third quarter of 2006. Operating income for the quarter was US$79 million, resulting in a 10.3% operating margin, compared to operating income of US$41 million and a 6.6% operating margin in the third quarter of 2006. Pre-tax income for the quarter was US$46 million, resulting in a 6.0% pre-tax margin, compared with pre-tax income of US$1 million and a 0.2% pre-tax margin in the year-ago period. "We are very pleased with our strong performance this quarter," said Dave Barger, JetBlue's chief executive officer. "Thanks to the dedication of our crewmembers, we continued to drive revenue growth, productivity improvements and cost discipline. Our crewmembers are the reason Conde Nast Traveler readers recently named JetBlue best domestic airline for the sixth straight year." During the third quarter, JetBlue achieved a completion factor of 98.9% of scheduled flights, compared to 99.6% in 2006. On- time performance, defined by the U.S. Department of Transportation as arrivals within 14 minutes of schedule, was 73.7% in the third quarter compared to 74.6% in the same period in 2006. JetBlue attained a load factor in the third quarter of 2007 of 82.0%, an increase of 1.6 points on a capacity increase of 10.9% over the third quarter of 2006. "JetBlue's crewmembers continue to deliver exceptional customer service, despite the operational challenges we continue to face in the Northeast," said Russ Chew, JetBlue's president and chief operating officer. "We are very proud of the efforts our crewmembers made this quarter." At Sept. 30, 2007, the company had total assets of US$5.46 billion and total stockholders' equity of US$1.02 billion. Total debt was US$3.02 billion at Sept. 30, 2007. Discontinued Operations JetBlue also disclose Tuesday that it will discontinue operations in Columbus, Ohio and Nashville, Tennessee, effective Jan. 6, 2008. "We are taking the difficult but necessary step to discontinue operations in these two markets," Mr. Barger said. "After more than 12 months of service and a detailed review of traffic and revenue trends in these two cities, we have decided to redeploy our assets." About JetBlue Airways Corp. Headquartered in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq: JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services in the United States. As of Feb. 14, 2007, it operated approximately 502 daily flights serving 50 destinations in 21 states, Bahamas, Bermuda, Dominican Republic, Puerto Rico, Mexico, and the Caribbean; and a fleet of 98 Airbus A320 aircraft and 23 EMBRAER 190 aircraft. The company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV LLC. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 15, 2007, Fitch Ratings affirmed the debt ratings of JetBlue Airways Corp. as: -- Issuer Default Rating at 'B' -- Senior unsecured convertible notes at 'CCC' with a recovery rating of 'RR6' The senior unsecured rating applies to US$425 million of outstanding convertible notes. UTSTARCOM INC: Gets Notice of Default from 7/8% Notes Trustee ------------------------------------------------------------- UTStarcom, Inc., disclosed that on Oct. 15, 2007, it received a notice of default from U.S. Bank National Association, as indenture trustee, pursuant to which the Trustee asserted that the company was in default of certain obligations under the Indenture, dated as of March 12, 2003, as amended by the First Supplemental Indenture, dated Jan. 9, 2007, as further amended by the Second Supplemental Indenture, dated July 26, 2007, between the company and the Trustee with respect to the company's 7/8% Convertible Subordinated Notes due 2008 (CUSIP Nos. 918076AA8 and 918076AB6). The specific purported defaults referred to in the Notice of Default are: (1) the company's failure to file with the Securities and Exchange Commission and provide copies to the Trustee of its Quarterly Report on Form 10-Q for the fiscal quarter ending March 31, 2007, and its Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2007, as required by the Indenture and the Trust Indenture Act and (2) the company's failure to deliver to the Trustee the officer's certificate of compliance of the company required by the Indenture. Pursuant to the Second Supplemental Indenture, any failure by the company to comply with covenants in the Original Indenture as amended by the First Supplemental Indenture relating to the filing of reports required to be filed with the SEC under the Securities Exchange Act of 1934, as amended and the furnishing of copies of SEC Reports and the officer's certificate of compliance of the company required by the Original Indenture to the Trustee before 5:30 p.m., New York City time, on Oct. 15, 2007, would not constitute a default under the Indenture. The Notice of Default states that the Covenant Reversion Date provided for by the Second Supplemental Indenture had passed and that the company's failure to cure the purported defaults within 60 consecutive days after the date of the Notice of Default, would constitute an "Event of Default" under the Indenture. The company previously reported in its Notifications of Late Filing on Form 12b-25 filed on Nov. 11, 2006, March 2, 2007, May 10, 2007, and Aug. 9, 2007 that the filing of its First Quarter 2007 Form 10-Q and Second Quarter 2007 Form 10-Q, as well as certain other SEC Reports that the company has now filed with the SEC, had been delayed for the reasons stated therein. Update The company filed its First Quarter 2007 Form 10-Q with the SEC on Oct. 17, 2007 and Second Quarter 2007 Form 10-Q on Oct. 19, 2007. The company contends that as of Oct. 19, 2007, it has, prior to the Demand Date set forth in the notice of default: (i) filed all required reports with the SEC and furnished them to the Trustee, and (ii) delivered the officer's certificate of compliance required by the Original Indenture to the Trustee. Therefore, the company believes that that no Event of Default under the Indenture occurred. About UTStarcom Headquartered in Alameda, California, UTStarcom Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- provides IP-based, end-to-end networking solutions and international service and support. The company sells its broadband, wireless, and handset solutions to operators in both emerging and established telecommunications markets around the world. The company maintains operations in France, Italy, Spain, China, India, Japan, Argentina and Brazil. * * * As reported on Jan. 18, 2007, noteholders of UTStarcom Inc.'s 7/8% convertible subordinated notes due 2008 agreed to the proposed amendments of certain provisions of the indenture pursuant to which the notes were issued and a waiver of rights to pursue remedies available under the indenture with respect to certain default. Under the terms of the indenture, during the period beginning Jan. 9, 2007, and ending 5:30 p.m., May 31, 2007, any failure by the company to comply with certain provisions will not result in a default or an event of default, and the Notes will accrue an additional 6.75% per annum in special interest from and after Jan. 9, 2007, to the maturity date of the Notes, unless the Notes are earlier repurchased or converted. TUPPERWARE BRANDS: Earns US$6.9 Mil. in Quarter Ended Sept. 29 -------------------------------------------------------------- Tupperware Brands disclosed Tuesday its third quarter 2007 results. The company reported net income of US$6.9 million on net sales of US$454.7 million for the 13 weeks ended Sept. 29, 2007, compared with net income of US$13.1 million on net sales of US$394.9 million for the 13 weeks ended Sept. 30, 2006. GAAP net income for the 2007 period included the following one- time charges (after tax): -- costs associated with implementing new credit agreement of US$6.2 million -- purchase accounting intangibles and goodwill impairment of US$9.7 million -- acquired intangible asset amortization of US$2.3 million -- re-engineering and impairment charge expenses of US$1.8 million -- gain from land sales of US$3.4 million -- tax benefit of US$2.1 million versus US$4.7 million benefit from taxes in 2006 "Another quarter of strong sales and earnings reaffirms that our strategic growth initiatives are making a significant positive impact in the markets" said Rick Goings, chairman and chief executive officer. "Overall our local currency sales increase was 10%, reflecting 20% higher sales in the emerging markets, which accounted for 46% of sales. Sales in our established markets were up slightly, reflecting significant increases by several businesses, but a double-digit decrease in Germany," Goings continued. At Sept. 29, 2007, the company's consolidated balance sheet showed US$1.80 billion in total assets, US$1.33 billion in total liabilities, and US$469.3 million in total shareholders' equity. About Tupperware Headquartered in Orlando, Florida, Tupperware Brands Corporation (NYSE: TUP)-- http://www.tupperware.com/-- is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent sales force of 2.0 million. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and personal care products for consumers through the Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde brands. The company has operations in Indonesia, Argentina, Australia, Bahamas, Brazil, China, France, Germany, Philippines, Spain, and Sweden, among others. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 19, 2007, Moody's Investors Service assigned a Ba1 rating to Tupperware Brands Corporation proposed senior secured credit facilities, consisting of a US$200 million revolving credit facility and a US$550 million term loan A, both due 2012. Moody's also affirmed the company's Ba2 corporate family rating and Ba3 probability of default rating, and changed the outlook to positive from stable. ============= B E R M U D A ============= BV ASSET: Proofs of Claim Filing Is Until Oct. 31 ------------------------------------------------- BV Asset Management Limited's creditors are given until Oct. 31, 2007, to prove their claims to Ernest A. Morrison, 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. BV Asset's shareholders agreed on Oct. 15, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Ernest A. Morrison 18 Parliament Street Hamilton HM12, Bermuda LSF3 LATHROP: Proofs of Claim Filing Is Until Nov. 7 ---------------------------------------------------- LSF3 Lathrop's creditors are given until Nov. 7, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. LSF3 Lathrop's shareholders agreed on Oct. 17, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda MONTPELIER RE: Earns US$101.3 Million in Quarter Ended Sept. 30 --------------------------------------------------------------- Montpelier Re Holdings Ltd. recorded net income of US$101.3 million for the quarter ended Sept. 30, 2007, compared to net income of US$83.4 million. Operating income, which excludes foreign exchange, investment gains and losses and income tax, was US$78.3 million, or US$0.82 per diluted common share. The loss ratio for the quarter was 26.8%, which includes US$11.4 million, or 8.2 points, of losses incurred as a result of the UK floods in July. This was offset in part by net favorable prior year reserve development of US$4.6 million, or 3.3 points. The company also reported a fully converted book value per share of US$17.03 as at Sept. 30, 2007, an increase of 6.6% for the quarter inclusive of dividends. At Sept. 30, 2007, the company held US$19.0 million of securities with exposure to the sub-prime mortgage market with an estimated weighted average life of 1.9 years and US$63.7 million of securities with exposure to the Alternative-A mortgage market with an estimated weighted average life of 3.4 years. All of these securities are currently rated AAA and are carried at fair value. Anthony Taylor, Chairman and CEO, commented: "This was a strong quarter resulting in a 6.6% increase in book value per share. Since the beginning of 2006, we have grown book value per share by over 48%, inclusive of dividends." "Notwithstanding the impact of expenses associated with the roll-out of our first half initiatives, the combined ratio was a very strong 57.9% reflecting what turned out to be a relatively benign catastrophe quarter. We continue to make steady progress building out our Lloyd's and US platforms with both operations binding their first policies in the quarter. On the capital front, we have initiated a share repurchase program, repurchasing approximately 450,000 common shares during the quarter at an average price of US$16.02." Headquartered in Bermuda, Montpelier Re Holdings Ltd., through its operating subsidiary Montpelier Reinsurance Ltd., is a premier provider of global property and casualty reinsurance and insurance products. During the year ended Dec. 31, 2005, Montpelier underwrote US$978.7 million in gross premiums written. Shareholders' equity at Dec. 31, 2005, was US$1.1 billion. * * * As reported in the Troubled Company Reporter on Dec. 19, 2006, A.M. Best affirms these ratings on Montpelier Re Holdings: Montpelier Re Holdings Ltd. -- "bbb-" on senior unsecured debt; -- "bb+" on subordinated debt; and -- "bb" on preferred stock. MRH Capital Trust I and II (guaranteed by Montpelier Re Holdings Ltd.) -- "bb" on preferred securities. MORPHEX (BERMUDA): Supreme Court Hearing Wind-Up Petition Today --------------------------------------------------------------- The Supreme Court of Bermuda will hear Morphex (Bermuda) Ltd's wind-up petition on Oct. 26, 2007, at 9:30 a.m. The Bermuda Monetary Authority filed the wind-up petition on behalf of Morphex (Bermuda) to the Supreme Court on Oct. 3, 2007. Any creditor or contributory of Morphex (Bermuda) who wants to support or oppose the making of an order on the wind-up petition may appear during the hearing by himself or his counsel. Interested parties were given until 4:00 p.m. at Oct. 25, 2007, to send to Attride-Stirling & Woloniecki -- the attorneys to the petitioner -- a notice in writing of his intention so to do, including his name and address of the person, or, if a firm, the name and address of the firm, and must be signed by the person or firm, or his or their attorney. Attride-Stirling & Woloniecki will supply a copy of the petition on payment of the regulated charge. The attorneys for the petitioner can be reached at: Attride-Stirling & Woloniecki Crawford House 50 Cedar Avenue, Hamilton HM11 Bermuda UNIDO INVESTMENTS: Proofs of Claim Filing Deadline Is Nov. 7 ------------------------------------------------------------ Unido Investments Limited's creditors are given until Nov. 7, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Unido Investments' shareholder agreed on Oct. 19, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda UNICOM ASSURANCE: Proofs of Claim Filing Ends on Nov. 7 ------------------------------------------------------- Unicom Assurance Company Limited's creditors are given until Nov. 7, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Unicom Assurance's shareholders agreed on Oct. 22, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda WYNRIGHT INSURANCE: Proofs of Claim Filing Deadline Is Nov. 2 ------------------------------------------------------------- Wynright Insurance Company Ltd.'s creditors are given until Nov. 2, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Wynright Insurance's shareholder agreed on Oct. 19, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda ============= B O L I V I A ============= INTERMEC INC: Inks License Pact with Metrologic Instruments ----------------------------------------------------------- Intermec Inc. has signed an agreement to license cutting-edge technology to Metrologic Instruments, Inc. This intellectual property licensing agreement is part of Intermec's ongoing commitment to make critical data capture and related technologies available to the marketplace. Under this agreement, Metrologic is taking a running-royalty license under nine Intermec patents that cover wireless data capture and data processing devices and systems. Five of these licensed patents are the subject of Intermec's recent patent infringement lawsuit against Palm, Inc. About Metrologic Instruments Headquartered in Blackwood, New Jersey, Metrologic Instruments, Inc. is a global supplier for data capture and collection hardware, and image processing software. The company had LTM September 2006 revenues of approximately US$210 million. The company has operations in Brazil and Mexico. About Intermec Inc. Intermec Inc. -- http://www.intermec.com/-- develops, manufactures and integrates technologies that identify, track and manage supply chain assets. Core technologies include RFID, mobile computing and data collection systems, bar code printers and label media. The company has locations in Australia, Bolivia, Brazil, China, France, Hong Kong, Singapore and the United Kingdom. * * * Standard & Poor's Rating Services raised its ratings on Everett, Washington-based Intermec Inc. to 'BB-' from 'B+'. The upgrade reflects expectations that Intermec will sustain current levels of profitability and leverage. S&P said the outlook is stable. PAN AMERICAN: Strong Market Position Cues Moody's to Lift Rtgs. --------------------------------------------------------------- Moody's Investors Service has upgraded Pan American Energy LLC's global local currency issuer rating to Ba1 from Ba2. At the same time, Moody's upgraded Pan American Energy LLC, Argentine Branch's foreign currency note ratings to Ba2 from Ba3. The global local currency rating and foreign currency note ratings have a stable outlook. The company's foreign currency Corporate Family Rating of B2, positive outlook, was not affected by the rating actions, as the foreign currency Corporate Family Rating is constrained by Argentina's B2 ceiling, which has a positive outlook. The upgrade of Pan American's global local currency rating reflects the company's strong market position in Argentina and performance versus competitors. Pan American is the second- largest oil and gas company in Argentina by volume, accounting for approximately 15% of the total market. The company has demonstrated consistently sound financial and operating performance relative to its peers, with a track record of maintaining low financial leverage while growing production at competitive costs. Pan American has successfully grown its oil and gas production over the past four years (CAGR of 2.9% excluding Bolivia). In particular, the company has continued to demonstrate production and reserve growth in the Cerro Dragon area in Argentina's Golfo San Jorge basin. Pan American derives most of its oil production (77%) from Cerro Dragon, and the area's reserves are integral to the company's production growth in the near to medium term. Pan American successfully replaced 154% of its reserves in Cerro Dragon in 2006 and has continued to grow production over the last four years, with a CAGR of 4.2%. Pan American has achieved production growth at competitive, albeit rising, costs, while maintaining appropriately conservative financial leverage. The company's unit full cycle costs remain competitive relative to its peers both in Argentina and the United States and are more representative of a Baa-rated E&P company. Pan American's cost structure benefits from management's focus on operational efficiency and the successful deployment of proprietary technologies, which has been supported by the company's relationship with its majority owner BP plc (rated Aa1). However, an increasingly onerous tax burden has caused the company's cost structure to rise. Rising drilling and service costs, including labor costs, have also contributed to Pan American's increasing cash costs, but Moody's notes that these costs have risen across the entire sector. While Moody's believes that the company's cash operating costs may continue to increase over the near-term and will be subject to upward pressure as a result of inflation and secondary recovery costs, as well as increased taxes, Moody's expects they will remain in a range consistent with the current ratings. Moody's believes that the Cerro Dragon area will continue to provide Pan American with attractive opportunities to grow its production. Management continues to pursue a strategy of expanding Pan American's oil production and reserves through development drilling, workovers, waterflooding and extensions/step-outs in the mature Cerro Dragon area. Management also expects to direct investments towards increasing domestic gas production in order to meet rising demand in Argentina. Longer term production growth from the Cerro Dragon area is supported by Pan American's extension of the concession contract to develop and operate the area from 2017 until 2027; however, it will likely take substantial capital investments in order to continue to develop Cerro Dragon and grow production. Moody's notes that while the company's capital spending has steadily increased, Pan American's overall reserve replacement, notwithstanding Cerro Dragon, has been weak, underscoring a longer term challenge for Pan American to increase its production and reserves while maintaining low unit costs. Pan American has not fully replaced its reserves since 2003 and its total PD reserves have slightly decreased since 2003, with declines in its two largest fields in Argentina outside of Cerro Dragon, Cuenca Austral and Acambuco. Over the longer-term, Moody's remains concerned that certain production and reserve growth outside of Cerro Dragon could entail significantly higher costs, which could result in pressured financial leverage and returns. Given Cerro Dragon's seven year proved developed reserve life, this could prove particularly challenging for the company as Cerro Dragon continues to mature. Pan American's Ba1 global local currency rating remains constrained by the geographic concentration of its reserves and production, by its exposure to economic instability and political risks in Argentina and in Bolivia, and by its significant capital expenditure program and dividend payout ratio. Moody's believes that price controls and other government measures such as taxation may limit the pace of future development of Pan American's gas reserves over the near to medium term. While Moody's notes that Pan American has successfully lowered the percentage of its total gas sales to Argentine local distribution companies and that industrial and power sector gas prices in Argentina have risen, which has resulted in increased gas price realizations, demand growth remains strong in the residential sector, where prices continue to be frozen. In light of Bolivia's May 1, 2006 nationalization decree, Moody's continues to exclude Pan American's Bolivian reserves, production, and associated unit revenues and costs from the company's operating and financial metrics when assessing its credit quality, which limits ratings upside potential. Pan American's Ba2 foreign currency rating reflects its Ba1 local currency rating, as well as its strong track record in servicing its foreign currency debt obligations during the Argentine financial crisis, its ability as an oil and gas company operating in Argentina to keep up to 70% of its export proceeds offshore, and the fact that it has a strong majority owner that operates outside of Argentina. At the same time, the Ba2 rating takes into account Argentina's B2 long-term foreign currency ceiling and B3 foreign currency bond rating, which indicate a high degree of foreign currency convertibility and transfer risk. Both ratings currently have a positive outlook. The stable outlook for the Ba1 global local currency rating and Ba2 foreign currency bond rating assumes that Pan American will continue to maintain conservative financial policies. Over the near-term, Moody's expects Pan American's financial leverage will increase somewhat due to its increased capital-spending program; however, we expect leverage will remain in a range consistent with the current ratings. Key to maintaining the stable outlook and current ratings will be Pan American's ability as a joint venture to maintain a flexible dividend policy that is managed in line with its internal capital requirements and the maintenance of low financial leverage (below US$3/boe PD reserves) as it seeks to grow its oil and gas reserves and production. Moody's notes that Pan American's ratings can accommodate less leverage than its peers in the U.S. as Moody's generally attributes a lower value to Pan American's reserves than to those of its peers in the U.S. A one-notch upgrade in Argentina's foreign currency bond rating or ceiling would not affect Pan American's foreign currency ratings. Moody's believes there is limited upside for Pan American's Ba1 global local currency rating and Ba2 foreign currency bond rating at the present time. Over the longer term, an increase in Argentina's Ba1 local currency ceiling in addition to a reduction in government interference risk or material improvement in regional natural gas markets could have favorable rating implications. Materially higher unit full-cycle costs, a dramatic negative reserve revision in Argentina, materially increased financial leverage (above US$4/PD reserves) or a downgrade in Argentina's foreign currency government bond rating could pressure Pan American's ratings or outlook. Pan American Energy LLC is the second largest oil and gas producer in Argentina. Also, Pan American performs exploration and production activities in Bolivia. Total fiscal year 2006 production of 242 thousand barrels of oil equivalent per day was split 51:49 between oil and gas. Bolivia represented 23% of proved reserves and 10% of both production and revenues at FY06. The proved reserve life is 14 years and 60% of reserves are developed. Outside E&P, other assets include participation in oil transportation, storage and loading, gas distribution and power generation in Argentina, Uruguay and Bolivia. Created in 1997 as a Delaware holding company, Pan American is owned 60% by BP and 40% by Bridas. The Argentine Branch has historically been Pan American's primary subsidiary both in terms of assets and revenues and the entity that assumes most of the financial debt for the whole group. =========== B R A Z I L =========== BANCO NACIONAL: Directors Approve BRL124.3-Mln Loan to Sistema -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES' directors have approved a BRL124.3 million financing for Sistema de Transmissao Catarinense SA. The credit is destined for implementation and Barra Grande/Lages/Rio do Sul transmission line, located in the State of Santa Catarina. The project consists of the construction of a double circuit 230 KV transmission line with a 195-kilometer extension. The Bank participation is equivalent to 74% of the total investment in the project, of BRL167.8 million. The operation will generate around 537 direct jobs, 850 of which during the work peak. BNDES participation in the project will bring significant social effects, as increased quality of the electric power transmission system in the service regions (the new extension goes through thirteen cities in Santa Catarina), which will serve as an incentive for the development of new undertakings and, consequently, for increased job opportunities and improved conditions of life for the population. Since 2003, BNDES has already approved 27 operations for transmission projects, including STC's, for a total of 9.3 thousand kilometers. The projects added up to BRL5.6 billion, which enabled a total of BRL9.3 billion investments. With this, BNDES reinforces the high priority given to electric power generation and transmission projects. Sistema de Transmissao Catarinense S/A is controlled by Grupo Alusa -- Cia. Tecnica de Engenharia Eletrica which holds interest in 11 electric power transmission companies in Brazil and in one in Chile. Operating for over 42 years, Alusa is a Brazilian company specialized in construction and assembly of energy and telecommunication systems. Within energy concession areas, the focus is on businesses involving the construction and operation of high and extra-high tension transmission lines, creating new energy transmission companies in partnership with other organizations in the sector. The transmission segment has as its purpose to transport the generated electric power and interconnect the different system participants -- generators, distributors or free consumers. This segment has a special importance in Brazil, where the electric system is characterized by the predominant hydraulic generation by large-sized plants, mostly far from consumption centers. The good utilization of an interconnected system depends upon the existence of a high capillarity and technical efficiency transmission network. In this sense, the main objective of this project is to increase safety levels of supply to the State of Santa Catarina, thus contributing to increase the reliability of the National Integrated System. 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. BANCO NACIONAL: Okays BRL120.4-Mil. Loan for Two Power Plants ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES' The directors of have approved a BRL120.4 million financing for Goias Sul Geracao de Energia SA to construct two Small Hydroelectric Power Plants. One of these, Nova Aurora, shall have 21 megawatts, while Goiandira, 27 MW installed capacity. The power plants shall be installed in Verissimo river, Southeast Goias. The projects will generate 400 direct jobs and will be important for the Brazilian energetic matrix, to the extent that it will supply energy to the system in 2009. Furthermore, it will contribute for regional development, above all of the cities of Goiandira and Nova Aurora, which, during the PCHs' construction phase, will benefit from the economic recovery resulting from direct and indirect work posts to be created. This year, the Bank has already approved 17 PCH operations, adding up to BRL1.4 billion financings and total investment of BRL1.9 billion. The power plants will generate 1.1 thousand MW. From 2010 on, all the power generated will be commercialized at Ambiente de Comercializacao Regulado [Regulated Contracting Ambience], for a 30-year term, as a result of Agencia Nacional de Energia Eletrica [Brazilian Electric Energy Regulatory Agency] auction, in December 2005. The commercialization of the energy generated in 2009 until 2010 shall take place by means of bilateral contracts to be signed at Ambiente de Comercializacao Livre [Free Contracting Ambience]. Goias Sul Geracao de Energia SA is a special purpose society, controlled by Neoenergia and created for the exclusive purpose of constructing and operating the PCHs. The works started in August 2007 and the first machine shall start up in July 2009, while the second one in August that same year. The financing is structured as Project Finance and BNDES will participate with 66.3% of the total investment. The constructing consortium for the two projects is formed by Construtora EIT (Empresa Industrial Tecnica) and Energ Power. The work shall be under the inspection of Engevix. 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. BAUSCH & LOMB: Named Defendant in 573 Product Liability Suits ------------------------------------------------------------- Bausch and Lomb Inc. disclosed that its has been named as a defendant in approximately 573 product liability lawsuits pending in various U.S. federal and state courts as well as certain other non-U.S. jurisdictions. These include 550 individual actions filed on behalf of individuals who claim they suffered personal injury as a result of using a ReNu solution, and a federally filed consolidated class action. On Aug. 14, 2006, the Judicial Panel on Multidistrict Litigation created a coordinated proceeding and transferred an initial set of MoistureLoc product liability lawsuits to the Federal District Court for the District of South Carolina. On Jan. 2, 2007, the New York State Litigation Coordinating Panel ordered the consolidation of cases filed in New York State, and assigned the coordination responsibilities to the Supreme Court of the State of New York, New York County before the Honorable Helen Freedman of the Commercial Division of the New York County Supreme Court. On Oct. 11, 2007, the U.S. District Court for the District of South Carolina granted B&L's motion to dismiss the consolidated class action. As of Oct. 16, 2007, 209 of the 225 cases filed in federal courts have been transferred to the JPML. Also, 308 of the 344 cases filed in state courts have been filed in the New York Consolidated Proceeding. These cases and claims involve complex legal and factual questions relating to causation, scientific evidence, actual damages and other matters. Litigation of this type is also inherently unpredictable, particularly given that these matters are at an early stage, there are many claimants and many of the claimants seek unspecified damages. Accordingly, it is not possible at this time to predict the outcome of these matters or to reasonably estimate a range of possible loss. While the company intends to vigorously defend these matters, it could in future periods incur judgments or enter into settlements that individually or in the aggregate could have a material adverse effect on its results of operations and financial condition in any such period. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. In Europe, the company maintains operations in Austria, Germany, the Netherlands, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 18, 2007, Moody's Investors Service affirmed Bausch & Lomb Incorporated's (Newco) ratings with updated LGD assessments: -- B2 Corporate Family Rating; -- B2 Probability of Default Rating; -- SGL-2 Speculative Grade Liquidity Rating; -- B1 rating (to LGD3/36% from LGD3/35%) on a US$500 million Senior Secured Revolver; -- B1 rating (to LGD3/36% from LGD3/35%) on a US$1,200 million U.S. Senior Secured Term Loan; -- B1 rating (to LGD3/36% from LGD3/35%) on a US$300 million Delayed Draw Term Loan; and -- Caa1 rating (to LGD5/89% from LGD5/86%) on US$650 million Senior Unsecured Notes. COMPANHIA PARANAENSE: Invests BRL7BB Under 2008-16 Business Plan ---------------------------------------------------------------- Companhia Paranaense de Energia said in a statement that it will invest some BRL7 billion under its 2008-16 business plan. Companhia Paranaense Chief Executive Officer Rubens Ghilardi told Business News Americas that the firm will include the purchase of small hydro plants in Parana, where it operates, as well as buying the 156-megawatt Itiquira plant from US power company NRG Energy in Mato Grosso. According to Companhia Paranaense's statement, the firm will increase installed capacity to 2.2 gigawatts, including: -- 311 megawatts in small hydros, -- 144 megawatts in coal-fired plants, and -- 120 megawatts in renewables like biomass. Companhia Paranaense said in a statement that some 1.4 gigawatts will be added through a power auction. Meanwhile, the 361- megawatt Maua hydro plant, the firm's biggest generation investment, will launch operations in 2011. The project will need BRL950 million. Companhia Paranaense told BNamericas that it has allocated about BRL55 million for investments in telecommunications. The firm has asked sector regulator Anatel for permission "to play a bigger role in the industry." Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/-- transmits and distributes electricity to more than 3 million customers in the state of Parana and has a generating capacity of nearly 4,600 MW, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitely postponed. In response, COPEL is re-evaluating its corporate structure. The government of Parana controls about 59% of COPEL. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2006, Moody's America Latina upgraded the corporate family rating of Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its Brazilian national scale. The rating outlook was stable. This rating action concludes the review process initiated on July 26, 2006. Moody's upgraded these ratings: -- Corporate Family Rating: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); -- BRL500 million Senior Unsecured Guaranteed Debentures due 2007: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); and -- BRL400 million Senior Secured Guaranteed Debentures due 2009: to Ba1 from Ba2 (Global Local Currency) and to Aa1.br from A1.br (Brazilian National Scale). FIAT SPA: Great Wall Motor Says It Did Not Copy Panda Model ----------------------------------------------------------- Great Wall Motor denied a claim by Fiat S.p.A. that its Peri compact car closely resembles the Italian carmaker's Panda City car, The Standard reports. Fiat, according to the news agency, is suing the Hebei-based automaker in China and Europe in connection with the Peri, without giving further details other than to reiterate that the two models looked alike. Great Wall spokesman Shang Yugui dismissed Fiat's allegation. "It took us three years and CNY300 million (HK$309.7 million) to develop the Peri," Mr. Shang said. He explained that the delay in launching the new model -- originally scheduled for this month -- was due to the approval process with regulators. "The legal action shouldn't affect the sales of Great Wall. The management. . . expects a delay in production of the line until next year," Sun Hung Kai Securities analyst Vivien Chan told The Standard. Mr. Shang said, "Once we get the license, we will roll out the Peri in China and in nearly 80 countries worldwide -- including Italy." Great Wall plans to price the Peri at CNY40,000 to CNY50,000, pitting it against rival Chery Automobile's hot-selling QQ, which is priced from CNY40,000 to CNY200,000. About Fiat S.p.A Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported on Aug. 8, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Italian industrial group Fiat S.p.A. to 'BB' from 'BB-'. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the outlook is stable. "The upgrade reflects Fiat's strong debt reduction achievements, positive trends in the auto sector, and improvements in the group's profitability and cash generation," said Standard & Poor's credit analyst Nicolas Baudouin. As reported in TCR-Europe on Aug. 7, Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from Stable. Its Issuer Default rating and senior unsecured rating are affirmed at BB-. The Short-term rating is affirmed at B. Around EUR6 billion of debt is affected by this rating action. The Outlook change is underpinned by the consistent improvement of the group's financial profile, the pick-up in Fiat Auto's market shares and earnings since late 2005 and positive expectations for the CNH and Iveco divisions. Fiat carries Moody's Ba3 long-term corporate family rating since July 14, 2003. GENERAL MOTORS: Mulls 1,000 Lay Offs at Lansing Delta Township -------------------------------------------------------------- After last week's disclosure of a lay off program at its Hamtramck assembly plant, General Motors Corp. said Monday that it will lay off about 1,000 workers at its crossover plant in Lansing Delta Township by year-end, the Associated Press reports. The company intends to drop the third shift at the plant consisting of 510 low-seniority full-time and 497 temporary workers, the report says. The lay off program at the GM plant that produces Buick Enclave, Saturn Outlook and GMC Acadia, is only a "temporary measure" as GM tries to manage inventory, according to GM spokesman Tom Wickham, the reports relates. However, Mr. Wickham could not confirm a reinstatement of the third shift, though he assures that the two remaining shifts are enough to cover the current demand for vehicles. The Troubled Company Reporter on Oct. 18, 2007, citing various reports, said that General Motors will initiate a lay off program in December 2007 at the Hamtramck assembly plant in Detroit, Michigan, affects 767 workers. Due to the decline in sales, the assembly plant, which employs 1,847 hourly workers and manufactures Buick Lucerne and Cadillac DTS sedans, will be fusing two shifts into one on Dec. 14, 2007. The plant currently produces 40 cars per hour over two shifts. After Jan. 2, 2008, the plant will manufacture 56 cars per hour over one shift, sources report, citing Mr. Wickham. As reported in the Troubled Company Reporter on Sept. 27, 2007, GM reached a labor deal with the United Auto Workers union, bringing unprecedented job security with company commitments to invest in new products for its existing U.S. facilities, as well as a moratorium on plant closings and outsourcing of work over the life of the agreement. The UAW also was able to secure a commitment to hire 3,000 temporary workers into full-time, traditional employment. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P says the outlook is stable. HERCULES INC: Third Qtr. Net Income Up to US$42.4 Mil. in 2007 -------------------------------------------------------------- Hercules Incorporated reported net income for the quarter ended Sept. 30, 2007 of US$42.4 million as compared to net income of US$34.2 million for the third quarter of 2006. Net sales in the third quarter of 2007 were US$544.2 million, an increase of 6% from the same period last year. Volume and pricing increased by 4% and 1%, respectively. Rates of exchange also increased sales by 3%, while product mix was 2% unfavorable during the quarter. Net sales for the nine months ended Sept. 30, 2007, were US$1.596 billion, an increase of 8% as compared to the same period in 2006, excluding the impact of the FiberVisions transaction. "We continue to demonstrate solid growth in revenues, earnings per share and cash flow," commented Craig A. Rogerson, President and Chief Executive Officer. "Our priority is to continue to invest in high return opportunities supporting our two global franchises. We also began returning excess cash flow to our shareholders by reinstituting a common stock dividend and through share repurchases." Net sales in the third quarter of 2007 increased in all regions of the world. Sales increased 1% in North America, 7% in Europe (primarily Euro related), 28% in Latin America and 17% in Asia Pacific as compared to the same period last year. Reported profit from operations in the third quarter of 2007 was US$72.9 million, an increase of 1% compared with the same period in 2006. Profit from ongoing operations in the third quarter of 2007 was US$84.2 million, an increase of 10% compared with US$76.4 million in the third quarter of 2006. The third quarter of this year included a gain of US$7.4 million on the sale of the Paper Technology patents. Interest and debt expense was US$17.0 million in the third quarter of 2007, up US$0.3 million compared with the third quarter of 2006. Interest expense for the nine months ended Sept. 30, 2007, was US$52.0 million, a decrease of US$2.1 million from the same period of last year. Net debt, total debt less cash and cash equivalents, was US$669.0 million at Sept. 30, 2007, a decrease of US$154.7 million from year-end 2006. Capital spending was US$24.0 million in the third quarter and US$77.8 million year to date. This compares to US$26.3 million and US$49.2 million in the third quarter and year to date periods last year, respectively. Segment Results - Reported Basis In the Aqualon Group, net sales increased 8% while profit from operations decreased 3% in the third quarter as compared with the third quarter of 2006. All Aqualon business units had increased sales in the third quarter as compared to the prior year. In the aggregate, the sales increase was driven by 7% higher volume, 3% unfavorable product mix, 1% increased pricing and 3% favorable rates of exchange. "We continue to show strong growth outside of North America, more than offsetting the challenging conditions experienced in this region. However, third quarter margins were impacted by higher supply chain and startup costs associated with our two major expansions in China to support growing demand in that region", noted Mr. Rogerson. Coatings and construction sales increased 13% in the third quarter of 2007 as compared to the same period of last year, primarily due to 11% higher volume and 4% favorable rates of exchange, partially offset by 2% unfavorable product mix. Coatings sales were up 15% globally (14% from volume), with strong growth in many regions except the U.S. and Europe. The U.S. region increased 1% versus the third quarter of last year, while Europe was flat versus the prior year, excluding the favorable Euro. Sales into construction markets were up 11% globally (9% from volume) compared to the prior year. Strong growth in Asia, the Middle East, South America and Canada offset declines in Europe and the U.S. The company recently acquired a specialty surfactants business, which will broaden Aqualon's product offering to the coatings markets and provide an additional growth platform. Regulated Industries sales increased 3% in the third quarter of 2007 as compared to the same period of last year, primarily due to 2% increased price, 2% favorable mix, and 2% from favorable rates of exchange. Volume in the aggregate was down 3%. Price increases were achieved in many end markets. The improved sales mix reflects a higher portion of sales in the higher priced personal care markets. Volumes were lower in the aggregate as growth achieved in Europe and China was offset by declines in the U.S. Energy & Specialties sales increased 3% in the third quarter of 2007 as compared to the same period of last year. The increase was due to 9% higher volume and 1% favorable rates of exchange, partially offset by 7% unfavorable mix. Pricing in the aggregate was flat. Lower oilfield volumes were offset by higher volumes in the specialty markets. The unfavorable mix is primarily attributable to a higher portion of guar versus other oilfield product sales. Aqualon Group's profit from operations decreased US$1.4 million as the higher volume and the associated contribution margin was offset by higher raw material, utility and supply chain costs. Margins were adversely impacted due to increased sales of third party materials as a result of our delayed capacity expansions as well as startup costs incurred by the China expansions. Selling, general and administrative (SG&A) costs were also higher compared to the prior year, reflecting increased sales and marketing, business management, and technology costs incurred to support growth initiatives. In the Paper Technologies and Ventures Group, net sales in the third quarter increased 5% and profit from operations increased 34% compared with the same quarter in 2006. Paper Technologies sales increased 4% due to 1% increased volume and 4% favorable rates of exchange, partially offset by an unfavorable mix of 1%. Pricing in the aggregate was flat as compared to the prior year. Volume growth was achieved in the Americas and in Europe, whereas Asia was lower. Price increases were achieved in North America, while pricing was lower in both Europe and Asia. Venture sales increased 7% primarily due to 3% higher volume, 4% higher price, and 2% favorable rates of exchange, partially offset by 2% unfavorable mix. Volumes increased in most of the Venture businesses, while pricing increased in all of the Ventures. The unfavorable mix reflects higher sales of lower priced pulp and tolled products. The company recently invested in a joint venture, H2H Innovations, to expand our product offering of specialty formaldehyde-free adhesives, which should enable faster penetration into the wood products industry. PTV's increased profit from operations reflects higher volume, improved selling price, a favorable product mix and the gain on the sale of the PTV patents, partially offset by higher raw material, transportation, utility and SG&A costs. Price increases were US$1.5 million in the aggregate, whereas raw material cost increases were US$3.0 million. Severance, restructuring and other exit costs in the third quarter of 2007 were US$1.2 million as compared to US$1.5 million in the same period of 2006. SG&A costs were higher than the prior year primarily due to increased personnel related costs, partially offset by lower legal and bad debt expenses. "Performance in the Americas helped offset weaker European and Asian performance. Our success with new product launch, including emerging markets, continues to support overall margins," commented Mr. Rogerson. "We remain confident in our growth strategy and optimistic about both earnings and cash flow growth for the balance of the year and as we look to 2008," said Mr. Rogerson. "Aqualon's volumes should continue to grow globally across its markets and margins should benefit as we make progress with our expanded capacities in China through improved utilization. Paper Technologies' margins are expected to be maintained with sales of new products and growth in emerging markets offsetting raw material headwinds. We also expect pricing initiatives in both businesses to take effect in the fourth quarter and as we enter 2008." About Hercules Inc. Headquartered in Wilmington, Delaware, Hercules Inc. (NYSE:HPC) -- http://www.herc.com/-- manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. The company has its regional headquarters in China and Switzerland, and a production facility in Brazil. * * * As reported in the Troubled Company Reporter-Latin America on July 2, 2007, Standard & Poor's Ratings Services revised its outlook on Wilmington, Delaware-based Hercules Inc. to positive from stable and affirmed the existing 'BB' corporate credit rating. IWT TESORO: Court Approves Focus Management as Financial Advisor ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York gave I.W.T. Tesoro Corporation and its debtor-affiliates authority to employ Focus Management Group, USA, Inc. as their financial advisor. As reported in the Troubled Company Reporter on Sept. 14, 2007, Focus Management is expected to: a. provide assistance in connection with the Debtors' Chapter 11 case; b. review and validate, or if so requested, assist in the preparation of the Debtors' business plans, cash flow projections, restructuring programs, and other reports or analyses prepared by the Debtors or its professionals in order to advise the Debtors on the viability of the continuing operations and the reasonableness of projections and underlying assumptions; c. review and analyze any restructuring plan to be presented to the Debtors' provider of post-filing financing; d. review, evaluate, assist and analyze the financial ramifications of proposed transactions for which the Debtors may seek Court approval, including DIP financing and cash management compensation or retention and severance plans; e. assist the Debtors, as may be requested, in communicating with its customers, vendors, employees, and other stakeholders in the Debtors' business regarding the status of its bankruptcy case including the preparation of initial communication materials and updates as necessary. f. manage and coordinate information requested by Official Committee of Unsecured Creditors or the legal and financial advisors for any committee; g. review, evaluate and analyze the Debtors' internally prepared financial statements and related documentation, in order to evaluate the performance of the Debtors as compared to projected results on an ongoing basis; h. review and analyze the development, evaluation and documentation of any plan(s) of reorganization or strategic transaction(s), including developing, structuring and negotiating the terms and conditions of potential plan(s) or strategic transaction(s) and the consideration that is to be provided to unsecured creditors; i. render testimony in connection with procedures (a) through (i) above, as required, on behalf of the Debtors; j. coordinate operations of the Debtors with their management and counsel, and assist management with monitoring and reporting to the Court and all interested parties; k. provide other services, as requested by the Debtors and agreed by Focus Management. The Debtors proposed to pay Focus Management its customary hourly rate ranging from US$375 for senior consultants to $400 for managing directors. These hourly rates are adjusted periodically. To the best of the Debtors' knowledge, Focus Management has no connection with the creditors or any other party in interest or their attorneys. The firm can be reached at: FOCUS Management Group 5001 W. Lemon Street Tampa, FL 33609-1103 Tel: (813) 281-0062 Fax: (813) 281-0063 http://www.focusmg.com/ I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, -- http://www.iwttesoro.com/-- is headquartered in New York City. The company and its subsidiaries distribute building materials, specifically hard floor and wall coverings. They are wholesalers and do not sell directly to any end user. Their products consist of ceramic, porcelain and natural stone floor, wall and decorative tile. They import a majority of these products from suppliers and manufacturers in Europe, South America (Brazil), and the Near and Far East. Their markets include the United States and Canada. They also offer private label programs for branded retail sales customers, buying groups, large homebuilders and home center store chains. The Debtor and its debtor-affiliates, International Wholesale Tile, Inc. and American Gres, Inc., filed for Chapter 11 bankruptcy protection on Sept. 6, 2007 (Bankr. S.D.N.Y. Lead Case No. 07-12841). Dawn K. Arnold, Esq. and Jonathan S. Pasternak, Esq. at Rattet, Pasternak & Gordon-Oliver, L.L.P. represent the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had total assets of US$39,798,579 and total debts of US$47,940,983. METROLOGIC INSTRUMENTS: Inks License Pact with Intermec ------------------------------------------------------- Intermec Inc. has entered an agreement to license cutting-edge technology to Metrologic Instruments, Inc. This intellectual property licensing agreement is part of Intermec's ongoing commitment to make critical data capture and related technologies available to the marketplace. Under this agreement, Metrologic is taking a running-royalty license under nine Intermec patents that cover wireless data capture and data processing devices and systems. Five of these licensed patents are the subject of Intermec's recent patent infringement lawsuit against Palm, Inc. About Intermec Inc. Intermec Inc. -- http://www.intermec.com/-- develops, manufactures and integrates technologies that identify, track and manage supply chain assets. Core technologies include RFID, mobile computing and data collection systems, bar code printers and label media. The company has locations in Australia, Bolivia, Brazil, China, France, Hong Kong, Singapore and the United Kingdom. About Metrologic Instruments Headquartered in Blackwood, New Jersey, Metrologic Instruments, Inc. is a global supplier for data capture and collection hardware, and image processing software. The company had LTM September 2006 revenues of approximately US$210 million. The company has operations in Brazil and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on April 9, 2007, Standard & Poor's Rating Services revised its outlook on Metrologic Instruments Inc. to negative from stable, and affirmed the 'B+' corporate credit rating. The revision in the outlook reflects increased leverage, to the mid-5x area from the mid-4x area, resulting from US$45 million in additional debt to buy out shares held by the company's founder, as well as a redemption of preferred equity held by remaining shareholders. As reported in the Troubled Company Reporter-Latin America on April 5, 2007, Moody's Investors Service downgraded Metrologic Instruments' corporate family rating and probability of default rating to B3 from B2 following the recent debt financed share repurchase. At the same time, Moody's assigned a B2 rating to the first lien secured credit facility, which is comprised of a US$170 million term loan (split into two tranches) and a US$35 million undrawn revolver, and a Caa2 rating to the US$75 million senior secured second lien. Proceeds from the transaction were used to refinance US$200 million of debt (US$125 million first lien and US$75 million second lien) and to repurchase about US$40 million of stock. The ratings on the existing first and second lien facilities will be withdrawn upon closing. Moody's said the ratings outlook is stable. NOVELL INC: Appoints Tim Wolfe as President, Novell Americas ------------------------------------------------------------ Novell Inc. has appointed Tim Wolfe as president for Novell Americas, responsible for the execution of Novell's strategy across the Americas. Mr. Wolfe, who brings nearly three decades of software, technology and consulting leadership experience to the role, most recently held the position of vice president and general manager of Novell's East region in the United States. He will play a key role in Novell's transition to a greater focus on customers and partners in implementing the company's go-to-market strategy. "Tim's promotion comes at an important time for Novell, as we accelerate our shift from a predominantly direct-sales model to a partner-leveraged model," said Tom Francese, executive vice president, Worldwide Sales, for Novell. "Tim is uniquely skilled and experienced to lead the Americas team in pursuit of the opportunities that lie ahead for our customers and partners. Under his leadership, the U.S. East region performed well, with particular success in the financial services and retail sectors. We look to Tim to extend this success widely across the U.S., Latin America and Canada." Mr. Wolfe brings 27 years of IT and software sales experience to his new role. He joined Novell in 2003 as vice president and general manager of the Southeast region, moving to oversee the East region in 2006. Prior to joining Novell, he served as executive vice president at Covansys. He held a variety of sales executive and management roles during his 20-year tenure at IBM. Mr. Wolfe earned a bachelor's degree from the University of Missouri Business School and graduated from Harvard's Advanced Management Program and International Senior Management Program 148. "This is an exciting time for Novell, as we extend our leadership in Linux and open source and deliver important new identity and resource management solutions to help customers secure and administer their IT infrastructures," Mr. Wolfe said. "It's been a privilege helping shape Novell's successful transformation over the past four years, and I'm looking forward to helping drive that success effectively across the entire Americas in my new role." About Novell Inc. Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq: NOVL) -- http://www.novell.com/-- delivers infrastructure software for the Open Enterprise based on Linux. With more than 50,000 customers in 43 countries, Novell helps customers manage, simplify, secure and integrate their technology environments by leveraging best-of-breed, open standards-based software. The company has offices in Australia, Argentina, Austria, Belgium, Brazil, China, Czech Republic, Finland, Germany, Hong Kong, Hungary, India, Ireland, Japan, Luxembourg, Malaysia, Netherlands, New Zealand, Norway, Philippines, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand and United Kingdom. * * * Novell Inc.'s subordinated debt carries Moody's Investors Service's B1 rating. WESTERN UNION: Sept. 30 Balance Sheet Upside-Down by US$146.4MM --------------------------------------------------------------- The Western Union Company disclosed Tuesday financial results for the third quarter ended Sept. 30, 2007. At Sept. 30, 2007, the company's consolidated balance sheet showed US$5.69 billion in total assets and US$5.83 billion in total liabilities, resulting in a US$146.4 million total stockholders' deficit. Net income was US$216.3 million and was also impacted by US$46 million of incremental pretax interest expense, compared to the third quarter of 2006. Total revenues were US$1.26 billion in the 2007 third quarter, compared with total revenues of US$1.14 billion in the same period in 2006. Total consumer-to-consumer revenue in the third quarter grew 10% to US$1.06 billion including US$16 million from Euro translation, on transaction growth of 15%. The segment benefited from improving trends across its three business categories: international, Mexico and domestic. In the third quarter, operating income was US$330.1 million and operating income margin was 26% compared to 30% in last year's third quarter. Both operating income and operating income margin for third quarter 2007 were impacted by the US$22 million non-cash stock compensation expense and an additional US$4 million of incremental independent public company expenses. Western Union president and chief executive officer Christina Gold said, "I am pleased that we achieved third quarter performance consistent with our expectations. Our consumer-to- consumer segment posted strong performance driven by especially robust results within our international business. Our Mexico business continued to improve in a stable pricing environment and again outperformed the market. We were further encouraged by improving transaction trends in our domestic business." Revenue in the consumer-to-business segment grew 14% to US$179.5 million in the quarter, including US$17 million of revenue from the December 2006 acquisition of Pago F cil. During the third quarter, Western Union repurchased 15.3 million shares for US$300 million at an average cost of US$19.59 per share. The company has now repurchased a total of 29.2 million shares for US$601 million and has nearly US$400 million remaining under its board-authorized repurchase plan. Non-Cash Charge for Accelerated Stock Compensation Expense In the third quarter 2007, the company recognized a US$22 million, non-cash charge in accordance with FAS 123R accounting for stock-based compensation resulting from the previously announced acceleration of vesting in Western Union stock options and awards granted to current Western Union employees prior to the spin-off from First Data. Under the terms of the plan, vesting was accelerated for these options and awards as a result of the change of control that occurred when an affiliate of Kohlberg, Kravis, Roberts & Co acquired First Data Corporation, Western Union's former parent company, on Sept. 24, 2007. About Western Union Headquartered in Englewood, Colo., The Western Union Company (NYSE: WU) -- http://www.westernunion.com/-- provides global money transfer and bill payment services worldwide, including Belgium, Brazil and the Philippines. Together with its affiliates, Orlandi Valuta, Vigo and Pago Facil, Western Union provides consumers with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. It operates through a network of more than 320,000 Agent locations in over 200 countries and territories. =========================== C A Y M A N I S L A N D S =========================== BLACKSTONE FIFTH: Creditors To File Proofs of Claim on Nov. 22 -------------------------------------------------------------- Blackstone Fifth Avenue Offshore Euro Fund Ltd.'s creditors are required to submit proofs of claim by Nov. 22, 2007, to Scott Long, 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. Blackstone Fifth's shareholders agreed on Oct. 2, 2007, to place the company into voluntary liquidation under The Cayman Islands' Companies Law (2007 Revision). The liquidator can be reached at: Scott Long 345 Park Avenue New York, NY 10154 BLACKSTONE PARTNERS: Creditors Have Until Nov. 22 To File Claims ---------------------------------------------------------------- Blackstone Partners Offshore Euro Fund Ltd.'s creditors are required to submit proofs of claim by Nov. 22, 2007, to Scott Long, 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. Blackstone Partners' shareholders agreed on Oct. 2, 2007, to place the company into voluntary liquidation under The Cayman Islands' Companies Law (2007 Revision). The liquidator can be reached at: Scott Long 345 Park Avenue New York, NY 10154 CABLE & WIRELESS: Unit Investing J$2.8B on Cellular Towers ---------------------------------------------------------- Cable & Wireless' Jamaican unit will invest J$2.8 billion to construct about 120 new cellular towers over 18 months to modernize its mobile and broadband services, Susan Gordon at the Jamaica Gleaner reports. According to The Gleaner, the cell towers or telecommunication base stations will be installed all over Jamaica. The Gleaner notes that a review of planning authorizations over the past few months showed that most of the towers will be in these parishes: -- St. Ann, -- St. Elizabeth, and -- St. Catherine. The report says that the program will increase Cable & Wireless' cell sites to over 600, which is yet far behind its chief rival competitor Digicel Jamaica Limited's over 1,000 sites. The Gleaner relates that the J$2.8-billion investment is part of the J$5-billion program parent company Cable & Wireless disclosed in 2006 to boost on mobile, voice over Internet protocol telephone and broadband services. According to the report, the project began under former Cable & Wireless Jamaica president Rodney Davis. However, it is now being carried through by his successor Phil Green. Financing would be taken from Cable & Wireless Jamaica's budget, The Gleaner says, citing company spokesperson Errol Miller. He said, "The sites are being rolled out across all parishes. Their location would have been dictated by our testing to see where on our network our coverage needed to be boosted to provide our customers with ever better service." Cable & Wireless Jamaica will invest about J$2.2 billion of the J$5 billion on other capital projects aimed at strengthening several areas of the firm's "value proposition as a full service telecoms provider," Mr. Miller told The Gleaner. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% GROPO LTD: Creditors Must File Proofs of Claim by Nov. 30 --------------------------------------------------------- Gropo Ltd.'s creditors are required to submit proofs of claim by Nov. 30, 2007, to Derrick Harper, 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. Gropo's shareholders agreed on Oct. 2, 2007, to place the company into voluntary liquidation under The Cayman Islands' Companies Law (2007 Revision). The liquidator can be reached at: Derrick Harper Alexandria Bancorp Limited P.O. Box 2428 Georgetown Grand Cayman, Cayman Islands Tel: 345-945-1111 Fax: 345-945-1122 HIGHLAND SPECIAL: Proofs of Claim Filing Is Until Nov. 30 --------------------------------------------------------- Highland Special Opportunity Master Fund Ltd.'s creditors are required to submit proofs of claim by Nov. 30, 2007, to S.L.C. Whicker and K. Beighton, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Highland Special's shareholders agreed on Sept. 27, 2007, to place the company into voluntary liquidation under The Cayman Islands' Companies Law (2007 Revision). The liquidator can be reached at: S.L.C. Whicker K. Beighton KPMG P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands For inquires, you may contact: Gundega Tamane P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands Tel: 345-914-4309 Fax: 345-949-7164 OPPORTUNITIES JAPAN: Proofs of Claim Filing Is Until Nov. 22 ------------------------------------------------------------ Opportunities Japan Fund's creditors are required to submit proofs of claim by Nov. 22, 2007, to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Opportunities Japan's shareholders agreed on Sept. 26, 2007, to p