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 Thursday, November 1, 2007, Vol. 8, Issue 217 Headlines A R G E N T I N A BOATING SHOES: Trustee Filing General Report in Court Today BUEN AYRE: Trustee Filing Individual Reports on Feb. 19 CEREALES SAN JOSE: Trustee Filing General Report Today COLORIN INDUSTRIA: Moody's Arg Rates US$47-Million Notes at D EDITORIAL LLAMOSO: Trustee Filing Individual Reports Today EL RAPIDO: Proofs of Claim Verification Ends on Dec. 26 EMPLOYS SA: Trustee Filing Individual Reports Today EMPRESA DISTRIBUIDORA: S&P Arg Puts B Rating on US$220-Mln Bond F Y F: Proofs of Claim Verification Is Until Today FIDEICOMISO FINANCIERO: Moody's Puts B2 Rating on Securities FRANCISCO Y JOSE: Proofs of Claim Verification Ends Today HILADO SA: Reorganization Proceeding Concluded MASTER PARTS: Proofs of Claim Verification Deadline Is Feb. 28 MPM OBRAS: Trustee Filing Individual Reports on March 13, 2008 PETROBRAS ENERGIA: Bags Apaika Nenke Field Development Contract POL AMBROSIO: Reorganization Proceeding Concluded PROTAM SA: Proofs of Claim Verification Deadline Is Feb. 4, 2008 SOLGAS SA: Creditors Voting on Settlement Plan Today TELECOM ARGENTINA: Allaria Ledesma Upgrades Firm's Shares to Buy TEXTIL NOROESTE: Reorganization Proceeding Concluded TOP NUT: Proofs of Claim Verification Ends Today TOURS & TRAVEL: Proofs of Claim Verification Ends Today B O L I V I A * BOLIVIA: Obtains US$15-Million Financing from World Bank B R A Z I L BANCO DAYCOVAL: Earns BRL58.7 Million in Third Quarter 2007 BANCO NACIONAL: Board Okays BRL48.5-Million Loan to Lumitrans BAUSCH & LOMB: Warburg Pincus Unit Completes Buy for US$4.5 Bil. COMMSCOPE INC: Reports US$1.9 Million Third Quarter Net Income DELPHI CORP: Amends Chapter 11 Reorganization Plan DRESER-RAND GROUP: Earns US$21.3 Mil. for Quarter Ended Sept. 30 DRESSER-RAND GROUP: Inks Alliance Agreement with Repsol YPF ENERGIAS DO BRASIL: Earns BRL130.6 Million in Third Quarter GENERAL MOTORS: UBS Upgrades Firm's Shares To Buy from Sell GERDAU SA: Starts Operating Acominas Unit's Second Blast Furnace LAZARD LTD: Paying US$0.09 Per Share Quarterly Dividend NOVELIS INC: Realm Communications Completes Rebranding PERDIGAO SA: Signs Share Purchase Agreement with Eleva Alimentos RHODIA SA: Halts Paracetamol Production at Roussillon Site SCO GROUP: Court Approves Berger Singerman as Co-Counsel SCO GROUP: Gets Court OK to Hire Pachulski Stang as Co-Counsel * BRAZIL: Petrobras Inks Plant Supply Contract with Petroperu C A Y M A N I S L A N D S A&Q SELECT: Proofs of Claim Filing Ends Today ASTPRELUDE FUND: Proofs of Claim Filing Deadline Is Today ATLANTIC PACIFIC: Proofs of Claim Filing Is Until Nov. 2 BELMONT UNITED: Proofs of Claim Filing Deadline Is Today BLACKSTONE PARTNERS: Proofs of Claim Filing Is Until Nov. 7 BLACKSTONE R: Proofs of Claim Filing Ends on Nov. 7 BLACKSTONE W: Proofs of Claim Filing Is Until Nov. 7 BOMBAY CO: Committee Can Hire Forshey & Prostok as Local Counsel BOMBAY CO: Court Approves Cooley Godward as Panel's Lead Counsel COLIN LUKE: Proofs of Claim Filing Ends Today ELYSEE LIMITED: Proofs of Claim Filing Deadline Is Today FRESH DEL MONTE: Earns US$29.9 Million in Quarter Ended Sept. 28 GALATEA FUND: Proofs of Claim Filing Deadline Is Nov. 14 GFIA-SHK MANAGERS: Proofs of Claim Filing Ends on Nov. 7 GOTTFRIED INT'L: Proofs of Claim Filing Deadline Is Nov. 15 LAKEPORT INVESTMENTS: Proofs of Claim Filing Is Until Today ML CBO: Proofs of Claim Filing Is Until Today PINE INVESTMENTS: Proofs of Claims Filing Ends Today SAILFISH GLOBAL: Proofs of Claim Filing Ends Today SMOKY RIVER: Proofs of Claim Filing Deadline Is Today ST. ALBANS: Proofs of Claim Filing Is Until Nov. 15 SUPER H. LIMITED: Proofs of Claim Filing Deadline Is Today TM PROPERTY: Proofs of Claim Filing Deadline Is Nov. 10 UNICORN GROUP: Proofs of Claim Filing Is Until Nov. 9 C H I L E AES CORP: Prices Cash Tender Offer for Senior Notes AES CORP: Seeking Regulators' Approval on 2 Gas Projects COEUR D'ALENE: U.S. Court of Appeals Rejects Rehearing Request C O L O M B I A GOODYEAR TIRE: Earns US$668 Million for Third Quarter 2007 C O S T A R I C A CAREY INT'L: Moody's Withdraws Ratings After Refinancing D O M I N I C A N R E P U B L I C ASHMORE ENERGY: Acquires 84.4% Interest on Jamaica Private E C U A D O R * ECUADOR: Awards Apaika Nenke Field Dev't Pact to Petrobras * ECUADOR: Fitch Affirms & Removes Junk Ratings from Watch Neg. E L S A L V A D O R ALCATEL-LUCENT: Dresdner Kleinwort Maintains Buy Rating on Firm ALCATEL-LUCENT: Pittsburgh Med Center US$277MM Deal on Sched. G U A T E M A L A BRITISH AIRWAYS: Ends Franchises with GB Airways & Loganair TECO ENERGY: Fitch Places BB+ Ratings on Watch Positive J A M A I C A AIR JAMAICA: New Board To Discuss Airline's Financial Position M E X I C O AMERICAN AXLE: Reports Third Quarter Net Income of US$13.1 Mil. GLOBAL POWER: Sells Braden's Asset to Prestige for US$575,000 HARMAN INTERNATIONAL: Declares US$0.0125 Per Share Dividend HERBALIFE LTD: Paying US$0.20 Per Share Cash Dividend on Dec. 14 MOVIE GALLERY: US Trustee Amends Creditors Committee Composition MOVIE GALLERY: Wants Lease Rejection Procedures Approved MOVIE GALLERY: Wants to Perform Under Sopris Lock Up Agreement SANMINA-SCI CORP: Posts US$1.1 Billion Net loss for FY 2007 UNITED STEEL: Paying 20 Cents Per Share Dividend on Dec. 10 P E R U * PERU: Petroperu Inks Plant Supply Contract with Petrobras P U E R T O R I C O HUMANA INC: Teams w/ INSPIRIS To Provide Care in Daytona/Ormond LIN TV: Inks MetroCast Deal for Broadcast Station Retransmission STANDARD MOTOR: Earns US$206.2 Million for Third Quarter 2007 SUPERMERCADOS BONANZA: Case Summary & 35 Largest Unsec Creditors U R U G U A Y NAVIOS MARITIME: Net Income Up 116% to US$36.5 Mil. in 3rd Qtr. V E N E Z U E L A CHRYSLER LLC: Affirms UAW 2007 National Labor Agreement CHRYSLER LLC: Appoints Douglas Betts as Vice President & CCO PETROLEOS DE VENEZUELA: Unit Presenting 2008 Spending Plan - - - - - ================= A R G E N T I N A ================= BOATING SHOES: Trustee Filing General Report in Court Today ----------------------------------------------------------- Estudio Tisocco & Asociados, the court-appointed trustee for Boating Shoes S.A.'s bankruptcy proceeding, will submit a general report containing an audit of the company's accounting and banking records in the National Commercial Court of First Instance in Buenos Aires on Nov. 1, 2007. Estudio Tisocco verified creditors' proofs of claim until Aug. 9, 2007. The trustee presented the validated claims in court as individual reports on Sept. 20, 2007. Estudio Tisocco is also in charge of administering Boating Shoes' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Estudio Tisocco & Asociados Viamonte 1570 Buenos Aires, Argentina BUEN AYRE: Trustee Filing Individual Reports on Feb. 19 ------------------------------------------------------- Graciela Esther Palma, the court-appointed trustee for Buen Ayre Transportes 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. 19, 2008. Ms. Palma verifies creditors' proofs of claim until Dec. 3, 2007. She will submit a general report containing an audit of Buen Ayre's accounting and banking records in court on April 7, 2008. Ms. Palma is also in charge of administering Buen Ayre's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Graciela Esther Palma Avenida Cordoba 1351 Buenos Aires, Argentina CEREALES SAN JOSE: Trustee Filing General Report Today ------------------------------------------------------ Pedro Rodriguez Oller, the court-appointed trustee for Cereales San Jose S.A.'s bankruptcy proceeding, will present a general report containing an audit of the company's accounting and banking records in the the National Commercial Court of First Instance in Bahia Blanca, Buenos Aires, on Nov. 1, 2007. Mr. Oller verified creditors' proofs of claim until Aug. 7, 2007. He presented the validated claims as individual reports in court on Sept. 19, 2007. Mr. Oller is also in charge of administering Cereales San Jose's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Cereales San Jose S.A. Caronti 15, Bahia Blanca Buenos Aires, Argentina The trustee can be reached at: Pedro Rodriguez Oller D Orbigny 325, Bahia Blanca Buenos Aires, Argentina COLORIN INDUSTRIA: Moody's Arg Rates US$47-Million Notes at D ------------------------------------------------------------- Moody's Argentina has rated Colorin Industria de Materiales Sintet's US$47 million Obligaciones Negociables at D. The rating action is based on the company's financial status at June 30, 2007. Colorin Industria de Materiales Sinteticos S.A. produces industrial and automotive paint in Argentina, and markets its products to the countries of Mercosur. The Company is a member of Grupo Bisa. EDITORIAL LLAMOSO: Trustee Filing Individual Reports Today ---------------------------------------------------------- Norberto Jorge Volpe, the court-appointed trustee for Editorial Llamoso S.R.L.'s bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on Nov. 1, 2007. Mr. Volpe verified creditors' proofs of claim until Sept. 19, 2007. He will submit a general report containing an audit of Editorial Llamoso's accounting and banking records in court on Dec. 13, 2007. Mr. Volpe is also in charge of administering Editorial Llamoso's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Norberto Jorge Volpe Maipu 859 Buenos Aires, Argentina EL RAPIDO: Proofs of Claim Verification Ends on Dec. 26 ------------------------------------------------------- Marcelo Dborkin, the court-appointed trustee for El Rapido SRL's bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 26, 2007. Mr. Dborkin will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 50, 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 El Rapido 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 El Rapido's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Dborkin is also in charge of administering El Rapido's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: El Rapido SRL Jose Hernandez 1780 Buenos Aires, Argentina The trustee can be reached at: Marcelo Dborkin Avenida Callao 295 Buenos Aires, Argentina EMPLOYS SA: Trustee Filing Individual Reports Today --------------------------------------------------- Maria Cristina Agrelo, the court-appointed trustee for Employs S.A.'s bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on Nov. 1, 2007. Ms. Agrelo verified creditors' proofs of claim until Sept. 19, 2007. She will submit a general report containing an audit of Employs' accounting and banking records in court on Dec. 13, 2007. Ms. Agrelo is also in charge of administering Employs' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Employs S.A. Lavalle 1570 Buenos Aires, Argentina The trustee can be reached at: Maria Cristina Agrelo Viamonte 1365 Buenos Aires, Argentina EMPRESA DISTRIBUIDORA: S&P Arg Puts B Rating on US$220-Mln Bond --------------------------------------------------------------- S&P Argentina has assigned a B rating to Empresa Distribuidora Norte S.A following the issuance of a bond for US$220 million with annual fixed interest rate of 10.5% and due 2017. S&P expects that the company will use the money to pay debt. Edenor is the first argentine company to have issued debt in the international market after the crisis. The outlook is positive, reflecting the improvements done in the funds of Edenor after an important increase on the rates applied to clients. Based in Buenos Aires, Argentina, Edenor is the largest electricity distribution company in Argentina in terms of number of customers and volume of energy sold. Edenor commenced operations in 1992, as a result of the privatization of the previously state-owned SEGBA. At that time, it was granted a 95-year concession to distribute electricity on an exclusive basis in its concession area, the greater Buenos Aires metropolitan area and northern portion of the City of Buenos Aires. EASA, which is controlled by Dolphin Energia S.A., is Edenor's holding company. F Y F: Proofs of Claim Verification Is Until Today -------------------------------------------------- Guillermo Rosendo Hernandez, the court-appointed trustee for F. y F. S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 1, 2007. Mr. Hernandez will present the validated claims in court as individual reports on Dec. 17, 2007. The National Commercial Court of First Instance in San Miguel de Tucuman, Tucuman, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by F. y F. 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 F. y F.'s accounting and banking records will be submitted in court on March 4, 2008. Mr. Hernandez is also in charge of administering F. y F.'s assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: F. y F. S.R.L. Colombia 249, San Miguel de Tucuman Tucuman, Argentina The trustee can be reached at: Guillermo Rosendo Hernandez Lavalle 971, San Miguel de Tucuman Tucuman, Argentina FIDEICOMISO FINANCIERO: Moody's Puts B2 Rating on Securities ------------------------------------------------------------ Moody's Latin America has assigned a rating of A1.ar (Argentine National Scale) and of B2 (Global Scale, Local Currency) to the debt securities of Fideicomiso Financiero Aval Rural VI issued by Banco de Valores S.A. -- acting solely in its capacity as Issuer and Trustee. The rated securities are backed by a pool of bills of exchange signed by agricultural producers in Argentina. The bills of exchange are guaranteed by Aval Rural S.G.R., which is a financial guarantor in Argentina. Aval Rural has a rating of A1.ar (Argentine National Scale) and of B2 (Global Scale, Local Currency). The rating assigned to this transaction is primarily based on the rating of Aval Rural. Therefore, any future change in the rating of the guarantor may lead to a change in the rating assigned to this transaction. Banco de Valores S.A. issued one class of debt securities denominated in US dollars. The rated securities will bear a 9.75% annual interest rate. The rated securities will be repaid from cash flow arising from the assets of the Trust, comprised of a pool of fixed rate bills of exchange denominated in US dollars, guaranteed by Aval Rural S.G.R.; and by sales agreements of grain signed between the producers and the exporter Nidera S.A. The bills of exchange will bear the same interest rate as the rated securities. Although the rated securities (and the bills of exchange) are denominated in US dollars, they are payable in Argentine pesos at the exchange rate published by Banco de la Nacion Argentina as of the day prior to the date that the funds are initially deposited into the Trust account. As a result, the dollar is used as a currency of reference and not as a mean of payment. For that reason, the transaction is considered to be denominated in local currency. If, eight days before each payment date, the funds on deposit in the trust account are not sufficient to make payments to investors, the Trustee is obligated to request Aval Rural to make payment under the bills of exchange. Aval Rural, in turn, will have five days to make this payment into the trust account. Under the terms of the transaction documents, the trustee has up to two days to distribute interest and principal payments to investors. Interest on the securities will accrue up to the date on which the funds are initially deposited by either Aval Rural, the exporter, or the individual producers into the Trust account. US$5,246,500 in Fixed Rate Debt Securities of "Fideicomiso Financiero Aval Rural VI," rated A1.ar (Argentine National Scale) and B2 (Global Scale, Local Currency). FRANCISCO Y JOSE: Proofs of Claim Verification Ends Today --------------------------------------------------------- Natalio Kinsbrunner, the court-appointed trustee for Francisco y Jose Mazzotta S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 1, 2007. Mr. Kinsbrunner will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 2, 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 Francisco y Jose 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 Francisco y Jose's accounting and banking records will be submitted in court. Infobae didn't say the reports submission deadlines. Mr. Kinsbrunner is also in charge of administering Francisco y Jose's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Francisco y Jose Mazzotta Sociedad Anonima Teniente General Juan Domingo Peron 3350 Buenos Aires, Argentina The trustee can be reached at: Natalio Kinsbrunner Marcelo T. de Alvear 1671 Buenos Aires, Argentina HILADO SA: Reorganization Proceeding Concluded ---------------------------------------------- Hilado S.A.'s reorganization proceeding has ended. Data published by Infobae on its Web site indicated that the process was concluded after the National Commercial Court of First Instance in La Rioja approved the debt agreement signed between the company and its creditors. MASTER PARTS: Proofs of Claim Verification Deadline Is Feb. 28 -------------------------------------------------------------- Claudio Jorge Haimovich, the court-appointed trustee for Master Parts S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 28, 2008. Mr. Haimovich will present the validated claims in court as individual reports on April 16, 2008. The National Commercial Court of First Instance in Buenos Aires, Argentina, 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 Master Parts 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 Master Parts' accounting and banking records will be submitted in court on March 4, 2008. Mr. Haimovich is also in charge of administering Master Parts' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Claudio Jorge Haimovich Maipu 267 Buenos Aires, Argentina MPM OBRAS: Trustee Filing Individual Reports on March 13, 2008 -------------------------------------------------------------- Marina Fernanda Tynik, the court-appointed trustee for M.P.M. Obras Civiles 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 March 13, 2008. Ms. Tynik verifies creditors' proofs of claim until Dec. 28, 2007. She will submit a general report containing an audit of M.P.M. Obras' accounting and banking records in court on April 29, 2008. Ms. Tynik is also in charge of administering M.P.M. Obras Civiles S.A.'s assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Marina Fernanda Tynik Avenida Rivadavia 10.444 Buenos Aires, Argentina PETROBRAS ENERGIA: Bags Apaika Nenke Field Development Contract --------------------------------------------------------------- Petrobras Energia SA has been awarded an environmental license to develop the Apaika Nenke field on block 31 in Ecuador, Business News Americas reports. The company said that it is performing economic feasibility studies on the block in the northeast of Ecuador, the same report adds. "The project concept was based on the use of modern exploration and production techniques, nature preservation and social aspects in strict compliance with the Ecuadorian regulatory requirements," Petrobras told BNamericas. The project is part of Ecuador's Environmental Improvement Scheme that was approved in December 2006. Petrobras Energia, S.A. is headquartered in Buenos Aires, Argentina. Its majority owner, Petrobras, is based in Rio de Janeiro, Brazil. * * * As reported on Oct. 29, 2007, Moody's Investors Service assigned a Ba1 global local currency issuer rating to Petrobras Energia S.A., and affirmed its Ba2 foreign currency rating for bonds issued under the US$2.5 billion Obligaciones Negociables program, and the Baa1 FCBR for the Series S bonds based on a Petrobras standby purchase agreement. POL AMBROSIO: Reorganization Proceeding Concluded ------------------------------------------------- Pol Ambrosio S.A.'s reorganization proceeding has ended. Data published by Infobae on its Web site indicated that the process was concluded after the National Commercial Court of First Instance in La Rioja approved the debt agreement signed between the company and its creditors. PROTAM SA: Proofs of Claim Verification Deadline Is Feb. 4, 2008 ---------------------------------------------------------------- Juan Roque Treppo, the court-appointed trustee for Protam SA's bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 4, 2008. Mr. Treppo 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 Protam 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 Protam's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Treppo is also in charge of administering Protam's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Protam SA Alicia Moreau de Justo 1080 Buenos Aires, Argentina The trustee can be reached at: Juan Roque Treppo Sarmiento 1183 Buenos Aires, Argentina SOLGAS SA: Creditors Voting on Settlement Plan Today ---------------------------------------------------- Solgas SA's creditors will vote on a settlement plan that the company will lay on the table on Nov. 1, 2007. Maria del Carmen Massa, the court-appointed trustee for Solgas' reorganization proceeding, verified creditors' proofs of claim until Feb. 23, 2007. She presented the validated claims in a court in Salta as individual reports on April 10, 2007. She also submitted a general report containing an audit of Solgas SA's accounting and banking records on May 23, 2007. The trustee can be reached at: Maria del Carmen Massa Avenida Belgrano 663 Salta, Argentina TELECOM ARGENTINA: Allaria Ledesma Upgrades Firm's Shares to Buy ---------------------------------------------------------------- Argentine brokerage Allaria Ledesma said in a statement that it has upgraded Telecom Argentina's shares to buy from hold due to a recent fall in the company's share price. Business News Americas relates that Allaria Ledesma has maintained Telecom Argentina's target price for the end of 2008 at ARS18. Allaria Ledesma told BNamericas that the mobile sector is still Telecom Argentina's main business. Telecom Argentina has recovered the margins in the mobile segment in the last quarter. Allaria Ledesma analyst Guido Bizzozero commented to BNamericas, "We expect the company to continue registering increasing results with higher margins." Telecom Argentina would concentrate chiefly on increasing Ebitda by offering more value added services to its clients, rather than expanding the base in a market that already has high mobile telephony penetration, BNamericas states, citing Mr. Bizzozero. Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- is the fixed-line operator for local and long-distance services in northern and southern Argentina. It also provides cellular and PCS phone services in Argentina, as well as in Paraguay through a 68% stake in Nocleo. France Telecom formerly controlled the company through its Nortel Inversora venture with Telecom Italia. France Telecom sold most of its stake in 2003 to the Werthein Group, an Argentine agricultural concern owned in part by vice chairman Gerardo Werthein. Nortel continues to be Telecom Argentina's largest shareholder with a 55% stake. Nortel is owned by Sofora, a consortium owned by Telecom Italia (50%), the Werthein Group (48%), and France Telecom (2%). * * * As reported on Oct 11, 2006, Standard & Poor's Ratings Services raised Telecom Argentina S.A.'s counterparty credit rating to B+/Stable/ from B/Stable following the upgrade of the Republic of Argentina to 'B+' from 'B'. TEXTIL NOROESTE: Reorganization Proceeding Concluded ---------------------------------------------------- Textil Noroeste S.A.'s reorganization proceeding has ended. Data published by Infobae on its Web site indicated that the process was concluded after the National Commercial Court of First Instance in La Rioja approved the debt agreement signed between the company and its creditors. TOP NUT: Proofs of Claim Verification Ends Today ------------------------------------------------ Ines Etelvina Clos, the court-appointed trustee for Top Nut S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 1, 2007. Ms. Clos will present the validated claims in court as individual reports on Dec. 13, 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 Top Nut 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 Top Nut's accounting and banking records will be submitted in court Feb. 21, 2008. Ms. Clos is also in charge of administering Top Nut's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Top Nut S.A. Uruguay 651 Buenos Aires, Argentina The trustee can be reached at: Ines Etelvina Clos Sarmiento 944 Buenos Aires, Argentina TOURS & TRAVEL: Proofs of Claim Verification Ends Today ------------------------------------------------------- Alfredo O. Audicio, the court-appointed trustee for Tours & Travel S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim on Nov. 1, 2007. Mr. Audicio will present the validated claims in court as individual reports on Dec. 14, 2007. The National Commercial Court of First Instance in Mendoza will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Tours & Travel 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 Tours & Travel's accounting and banking records will be submitted in court on March 3, 2008. Mr. Audicio is also in charge of administering Tours & Travel's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Alfredo O. Audicio Ciudad de la Paz 1564 Buenos Aires, Argentina ============= B O L I V I A ============= * BOLIVIA: Obtains US$15-Million Financing from World Bank ---------------------------------------------------------- The World Bank's Board of Directors has approved a US$15 million loan on Bolivia to establish a decentralized land distribution system that allows organized landless or poor farmers to acquire agricultural lands and implement investment subprojects that will help them to improve their income and living standards. The project will benefit around 2,200 poor rural families, which represents roughly 20 percent of the total number of families nationwide which have existing requests for land allocations with the Government According to David Tuchschneider, World Bank acting Country Manager in Bolivia. "The project targets a mostly indigenous group of extremely poor people in the eastern lowlands, one of Bolivia's most productive regions" The Land for Agricultural Development Project contributes to rural poverty reduction in Bolivia, by improving access to land; the implementation of productive investment subprojects to help consolidate the newly acquired farms; and the generation of an income stream from increased value of agricultural production sufficient to pay for land and increase living standards. Specifically, the loan will support Bolivia Government's objectives by: The financing of land purchases and potentially loan-term leases in the future through a line of credit managed by the Productive Development Bank and executed by local financial institutions. The provision of matching grants for infrastructure and productive investments on the acquired lands (US$8.5 million approximately). Providing technical assistance, monitoring and evaluation. This US$15 million is a standard International Development Association credit with a maturity of 35 years. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 =========== B R A Z I L =========== BANCO DAYCOVAL: Earns BRL58.7 Million in Third Quarter 2007 ----------------------------------------------------------- Banco Daycoval said in its earnings release that its net profits increased 103% to BRL58.7 million in the third quarter 2007, from the third quarter 2008. Business News Americas relates that the third quarter result excludes BRL1.4 million in expenses from Banco Daycoval's initial public offering earlier this year. In the first nine months of 2007, Banco Daycoval's net profit rose 169% to BRL169 million, compared to the same period last year, BNamericas notes. According to BNamericas, Banco Daycoval's loan portfolio grew 98.4% to BRL2.83 billion in the 12 months ended September 2007, from the same period last year. Banco Daycoval started trading in the Brazilian stock exchange Bovespa on June 29, 2007, BNamericas states. Banco Daycoval, a Brazilian midsize bank, was founded in 1989. It operates 15 branches concentrated in the south and southeast of the country. Its main business is commercial lending to small and medium enterprises, with a diversified portfolio in agribusiness, automotives, commerce, foods, financial services, general services, manufacturing, and textiles. Banco Daycoval established its trade finance department in 1995 to satisfy the increasing demand for trade finance instruments. As reported in the Troubled Company Reporter-Latin America on June 26, 2007, Standard & Poor's Ratings Services removed its long-term counterparty credit rating on Banco Daycoval S.A. from CreditWatch Positive, where it was placed on June 11, 2007, and raised the rating to 'BB-'. At the same time, S&P affirmed its 'B' short-term counterparty credit rating on the bank. S&P said the outlook is stable. BANCO NACIONAL: Board Okays BRL48.5-Million Loan to Lumitrans ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES' board approved a financing of BRL48.5 million to Lumitrans Companhia Transmissora de Energia Eletrica. The Bank support aims at adjusting the substations in Machadinho, State of Rio Grande do Sul, and Campos Novos, State of Santa Catarina, in addition to the construction of a 525 kV transmission line, with an extension of 51 kilometers, interlinking the two substations. As this is an indirect operation, the funds will be transferred through a syndicate of banks, headed by Unibanco and including Itau BBA and Banco Regional de Desenvolvimento do Extremo Sul. BNDES financing is equivalent to 53.7% from a total investment of BRL90.4 million. Lumitrans is a Specific Purpose Enterprise organized for implementation and operation of a transmission line connecting the municipalities of Machadinho and Campos Novos. The company obtained this concession by winning the 2003 auction, sponsored by Agencia Nacional de Energia Eletrica, and the transmission line started operating last September. BNDES waited for the completion of changes in stock control to approve the financing. The investments generated 209 direct jobs, of which 450 in the peak of works. The significant effect of the project is mainly indirect, by means of improvements in the energetic infrastructure of the regions supplied, which will be an incentive for the development of new endeavors and, consequently, for an increase in the offer of jobs and for the improvement to the conditions of life of the population. In the areas directly affected by the works, there was a heating in the local economy, due to an increase in direct and indirect jobs; to a higher demand of goods and services, through the development of small establishments, especially at the cities to be used as work field or logistic support; and to an increase in municipal tax collections, which will allow new investments by local city halls. Since 2003, BNDES has already approved 27 operations to transmission projects, including STC's, which amount to 9.3 thousand kilometers. The financings totalized BRL5.6 billion, allowing for a total investments of BRL9.3 billion. 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: Warburg Pincus Unit Completes Buy for US$4.5 Bil. ---------------------------------------------------------------- Affiliates of Warburg Pincus have completed the acquisition of Bausch & Lomb Inc. for a total purchase price of approximately US$4.5 billion, including approximately US$830 million of debt. "With a strong and supportive partner in Warburg Pincus, we are well-positioned to create new opportunities for Bausch & Lomb and advance our leadership in the eye health industry," Ronald L. Zarrella, chairman and CEO of Bausch & Lomb, said. "Our customers will continue to receive high levels of service, product quality and innovation, and our commitment to serving their needs remains steadfast. On behalf of Bausch & Lomb's management and Board of Directors, I want to thank our shareholders and hard-working employees for their support throughout this process." "We're delighted to be partners with Bausch & Lomb, a global leader in vision care, ophthalmic devices and pharmaceuticals," Elizabeth H. Weatherman, a Warburg Pincus Managing Director, said. "We look forward to helping the company build upon its rich heritage and premier brand in ophthalmology." Bausch & Lomb stock will cease to trade on the New York Stock Exchange at market close on October 26 and will be delisted. Under the terms of the agreement, Bausch & Lomb shareholders are entitled to receive US$65.00 in cash for each share of Bausch & Lomb common stock that they hold. Letters of transmittal allowing Bausch & Lomb shareholders of record to deliver their shares to the paying agent in exchange for payment of the merger consideration will be distributed shortly after the closing. Shareholders of record should be in receipt of the letter of transmittal before surrendering their shares. Shareholders who hold shares through a bank or broker will not have to take any action to have their shares converted into cash, as such conversions will be handled by the bank or broker. Morgan Stanley acted as financial advisor to the Special Committee of the Bausch & Lomb Board of Directors and delivered a fairness opinion to the Special Committee. Wachtell Lipton Rosen & Katz acted as legal counsel to the Special Committee in this transaction. Banc of America, Citi, Credit Suisse and JPMorgan served as financial advisors to Warburg Pincus and arranged the debt financing for the transaction, and Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Warburg Pincus. 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. 31, 2007, Moody's Investors Service has confirmed and will withdraw Bausch & Lomb Incorporated's Ba1 Corporate Family Rating, Ba1 Probability of Default Rating and Ba1 ratings on certain existing senior unsecured notes. The rating outlook was revised to stable and will be withdrawn. COMMSCOPE INC: Reports US$1.9 Million Third Quarter Net Income -------------------------------------------------------------- CommScope, Inc.has reported sales of US$513.6 million and net income of US$60.3 million, or US$0.81 per diluted share for the third quarter of 2007. For the third quarter of 2006, CommScope reported sales of US$466.1 million and net income of US$43.6 million, or US$0.61 per diluted share. The reported net income for the third quarter of 2006 included after-tax charges of US$1.9 million related to restructuring costs. Excluding this special item, adjusted third quarter 2006 earnings were US$45.5 million, or US$0.64 per diluted share. "We are pleased to deliver another strong quarter as all of our operating segments continue to benefit from the global demand for bandwidth," said CommScope Chairman and Chief Executive Officer, Frank M. Drendel. "We believe that video, data intensive applications, mobility and dynamic websites create an ongoing need for infrastructure solutions for communication networks. With our acquisition of Andrew Corporation on track to be completed by the end of this year, we believe that CommScope, as a global leader in 'last mile' infrastructure solutions, will be solidly positioned to continue to benefit from these long- term trends," Mr. Drendel added. Sales Overview Sales for the third quarter of 2007 increased 10.2 percent year over year, primarily driven by increased volume in all three segments, with particular strength in the Carrier segment. Enterprise segment sales rose 1.1 percent year over year to US$240.4 million, primarily due to higher sales volume. Enterprise revenues grew slightly year over year despite unusually strong third quarter 2006 sales. Sales in the third quarter of 2006 had been positively affected by a particularly strong backlog coming into the year-ago quarter. This backlog resulted from longer lead times associated with the company's global manufacturing initiatives and volatile raw material costs. CommScope announced price increases on selected Enterprise cable and apparatus late in the third quarter of 2007 in response to higher costs. The company expects limited revenue and gross margin benefit from these price increases during the fourth quarter of 2007. Broadband segment sales rose 12.1 percent year over year to US$161.2 million, primarily due to higher sales volumes, particularly in the Central and Latin American region, and the positive impact of the Signal Vision, Inc. acquisition, which closed on May 1, 2007. Competition between domestic Multiple System Operators and domestic wireline carriers continues to drive investment by Multiple System Operators in their networks. Carrier segment sales increased 32.1 percent year over year to US$112.3 million. These robust sales result from strong growth in all Carrier product areas. CommScope's Integrated Cabinet Solutions increased as large domestic wireline carriers continue to deploy electronics deeper in their networks to offer higher bandwidth broadband and video services. Strong international sales growth of CommScope's Extremeflex(R) smooth wall aluminum cables to major wireless carriers also drove Carrier performance. Total international sales for the third quarter of 2007 rose 19.0 percent year over year to US$168.5 million, or approximately 32.8 percent of total company sales. External orders booked in the third quarter of 2007 were US$482.3 million, up 25.4 percent from the year-ago quarter. Andrew Acquisition On June 27, 2007, CommScope and Andrew Corporation (NASDAQ: ANDW) announced a definitive agreement, unanimously approved by both companies' respective Boards of Directors, under which CommScope will acquire all of the outstanding shares of Andrew for US$15.00 per share, at least 90 percent in cash. The combined company will be a global leader in infrastructure solutions for communications networks, including structured cabling solutions for the business enterprise; broadband cable and apparatus for cable television applications; and antenna and cable products, base station subsystems, coverage and capacity systems, and network solutions for wireless applications. "As we approach the closing of the Andrew acquisition, we are increasingly excited about the prospects of combining our talented work forces and extensive portfolios of 'last mile' solutions," Mr. Drendel stated. "We continue to believe that cost reductions, growth opportunities and other synergies inherent in this combination will drive increased value for our stockholders. We have been working with our colleagues at Andrew on integration planning and we believe that once this transaction is completed, we will be well-prepared to begin integrating our two industry leading organizations." The total transaction value is approximately US$2.6 billion, based on Andrew's estimated 176 million shares outstanding on a fully diluted basis, which includes shares associated with Andrew's existing convertible notes. CommScope expects to fund the cash portion of the purchase price through a combination of new credit facilities and available cash on hand. CommScope has obtained customary fully underwritten debt financing commitment letters from Bank of America and Wachovia Bank, N.A. (and their respective affiliates). The transaction is not conditioned on receipt of financing by CommScope. The transaction is subject to completion of customary closing conditions, including effectiveness of a registration statement on Form S-4, approval by Andrew's stockholders, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and any other applicable laws or regulations. As previously announced, on Aug. 16, 2007, CommScope and Andrew received requests for additional information from the Antitrust division of the U.S. Department of Justice. CommScope and Andrew have been cooperating fully with the DOJ. The companies continue to expect to close the transaction before the end of 2007. Other Third Quarter Highlights -- As part of CommScope's continued cost management initiatives, a vacant 400,000 square foot warehouse along with 22 acres in Omaha, Nebraska and a vacant 150,000 square foot manufacturing facility in Scottsboro, Alabama were sold for approximately US$11 million. -- CommScope and Axis Communications announced an alliance to provide converged security solutions for intelligent buildings. CommScope believes combining the strengths of its global leadership in Enterprise infrastructure with Axis Communications' unique expertise and global leadership in IP-based video surveillance should help deliver customers exceptional intelligent building solutions. -- CommScope's Carrier segment extended its product portfolio through several product introductions, including the new quieter 52 Universal Cabinet Series designed for residential applications and the 30EC Modular Battery Cabinet designed as a reserve power storage system capable of using multiple vendors' batteries, which supports increased DSL capacity in previously deployed systems. -- Gross margin for the third quarter of 2007 was 31.0 percent, up approximately 100 basis points year over year. The gross margin improvement was primarily due to higher sales levels and a more favorable mix. -- SG&A expense for the third quarter of 2007 was US$69.4 million or 13.5 percent of sales, compared to US$62.8 million or 13.5 percent of sales in the year-ago quarter. SG&A expense grew primarily due to higher sales levels and spending to support and expand global sales initiatives. -- Third quarter 2007 results include US$2.7 million of pretax equity-based compensation expense in accordance with SFAS No. 123( R ). -- Operating income for the third quarter of 2007 increased 25 percent year over year to US$81.4 million, or 15.8 percent of sales. In the year-ago quarter, operating income was US$64.9 million, or 13.9 percent of sales. Excluding restructuring costs in the year ago quarter, operating income would have been US$67.9 million, or 14.6 percent of sales. -- Total depreciation and amortization expense was US$12.4 million for the third quarter of 2007. -- Net cash provided by operating activities in the third quarter of 2007 was US$80.7 million. Capital spending in the quarter was US$7.0 million. Outlook CommScope management provided the following guidance for the fourth quarter, calendar year 2007 and calendar year 2008 without giving effect to the proposed acquisition of Andrew. Fourth Quarter and Calendar Year 2007 For the fourth quarter of 2007, revenue is expected to be US$420-US$440 million, up approximately 7 percent to 12 percent year over year, and operating income should rise by 20 percent to 40 percent year over year, based on the expected operating margin of 11.0 percent to 12.0 percent, excluding special items. "Consistent with historical patterns, we expect lower sequential sales as we move into the seasonally slower fourth quarter," stated CommScope Executive Vice President and Chief Financial Officer, Jearld Leonhardt. "Again this year, we expect lower sales of ICS products in the fourth quarter to be followed by a robust recovery in the first quarter of 2008." Based on the fourth quarter 2007 financial guidance, sales for calendar year 2007 are expected to be approximately US$1.89- US$1.91 billion, up approximately 16 percent to 17 percent year over year. Operating margin for calendar year 2007 is estimated to be 14.75 percent to 15.0 percent, excluding special items. Calendar year 2007 capital spending is expected to be approximately US$24-US$27 million. The company's previous calendar year 2007 guidance was sales of US$1.90 - US$1.94 billion and operating margin of 15.25 percent to 15.50 percent, excluding special items. Calendar Year 2008 For calendar year 2008, CommScope expects modest sales and operating income growth assuming relative stability in the business environment and raw material costs. The company intends to provide calendar-year 2008 guidance after it closes the Andrew transaction and completes its planning for the combined business. Excluding intangible amortization, transition and any other nonrecurring items, and including synergies, the company expects the transaction with Andrew to be accretive to its 2008 results. About CommScope Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) -- http://www.commscope.com/-- designs and manufactures "last mile" cable and connectivity solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions. CommScope has facilities in Brazil, Australia, China and Ireland. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Standard & Poor's Ratings Services has affirmed its ratings on CommScope Inc. and Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for both companies. The ratings on Andrew will be withdrawn following its acquisition and debt refinancing. S&P said outlook is stable. DELPHI CORP: Amends Chapter 11 Reorganization Plan -------------------------------------------------- Delphi Corp., on Oct. 30, 2007, filed potential amendments to its Joint Plan of Reorganization and related Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York. The notice of potential amendments was filed in accordance with a timetable established by the Bankruptcy Court for the resumption on Nov. 8, 2007 of the Disclosure Statement hearing commenced earlier this month on Oct. 3, 2007. The filing, which remains subject to further amendment by the company on Nov. 7, pursuant to the Bankruptcy Court's scheduling order, also included amendments to the Global Settlement Agreement and Master Restructuring Agreement between Delphi and General Motors Corp. and to the Investment Agreement with Delphi's Plan Investors which are led by an affiliate of Appaloosa Management L.P. Delphi also filed a separate motion seeking approval of the proposed amendment to the Investment Agreement at the Nov. 8, 2007 hearing. The proposed Investment Agreement amendment, which has been executed by Appaloosa and a supermajority of the Plan Investors, is subject to the satisfaction of various conditions including Appaloosa's approval of exit financing terms under discussion with the company's principal lead lenders and execution of the amendment by one additional plan investor prior to the Nov. 8 hearing. "Last evening's filings represent further substantial progress in our Chapter 11 cases in a challenging capital markets environment," said John Sheehan, Delphi vice president and chief restructuring officer. "These very focused potential amendments reflect current market conditions, commensurate changes to our proposed emergence capital structure and form of plan currency contemplated for stakeholder distributions, and an effective reduction of less than five percent in plan value to reflect macroeconomic and industry conditions and uncertainties." The potential amendments contemplate an approximate US$2 billion reduction in the company's net debt at emergence. Further, the potential amendments reflect reductions in stakeholder distributions to some junior creditors and interest holders required to obtain consensus among Delphi's Creditors' Committee, Plan Investors and settling parties, and changes required by our Plan Investors and settling parties to obtain their endorsement of the Plan and Disclosure Statement, the company's settlements with GM and its US labor unions, the company's emergence business plan and related agreements. The potential amendments filed by the company include changes to the Plan Investors' direct investment and certain stakeholder recoveries: Party Original Plan Potential Amendment ----- ------------- ------------------- Plan Direct Investment Direct Investment Investors * Purchase US$400MM. * Purchase US$400MM of preferred stock of preferred stock convertible at an convertible at an assumed enterprise assumed enterprise value of US$11.75B value of US$10.80B * Purchase US$400MM * Purchase US$400MM of preferred stock of preferred stock convertible at an convertible at an assumed enterprise assumed enterprise value of US$12.80B value of US$11.80B * Purchase US$175MM * Purchase US$175MM of New Common Stock of New Common Stock at an assumed plan at an assumed plan value of US$12.8B value of US$11.8B GM Recovery of US$2.7B Recovery of US$2.7B * US$2.7B in Cash * US$750MM in Cash * US$750MM in second lien note * US$1.2B in junior conv. preferred stock Unsecured Par + accrued recovery Par + accrued recovery Creditors at Plan value of US$13.9B at Plan value of US$13B * 80% in New Common * 92.4% in New Common Stock valued stock valued at at US$45 per share US$41.58 per share * 20% in Cash * 7.6% through prorata participation in the Discount Rights Offering at US$34.98 per share TOPrS Par + accrued recovery Par only recovery at at Plan value of US$13.9B Plan value of US$13.0B * 100% in New Common * 92.4% in New Common Stock valued at Stock valued at US$45 per share US$41.58 per share * 7.6% through prorata participation in the Discount Rights Offering at US$34.98 per share Existing Par Value Rights Par Value Rights Common Stockholders * Right to acquire * Right to acquire approx. 12,711,111 approx. 12,711,111 shares of New Common shares of New Common Stock at a purchase Stock at a purchase price of US$45.00 price of US$41.58 per share per share Warrants Warrants * Warrants to acquire * Warrants to acquire an additional 5% US$1.0B of New Common of New Common Stock Stock at US$45.00 per at US$45.00 per share share exercisable exercisable for five for six months years after emergence after emergence Direct Distribution No provision for Direct Distribution * 1,476,000 shares of New Common Stock Participation in No Provision for Discount Participation in Rights Offering Discount Rights Offering * Right to purchase 40,845,016 shares of New Common Stock at a purchase price of US$38.56 per share Although the potential amendments are supported by the Creditors Committee, GM and the Plan Investors, Delphi has been advised by the Equity Committee that it will no longer support the company's Plan if amended to reduce recoveries to common stockholders as contemplated in the potential amendments. Absent a consensual resolution of the Equity Committee's concerns, the Committee is expected to file objections to the Disclosure Statement and Plan, seek a further adjournment of the continued Disclosure Statement hearing and current emergence timetable, and seek other relief from the Bankruptcy Court. Delphi will continue to work towards a consensus among its principal stakeholders, including the Equity Committee, however, the likelihood of such an outcome was speculative and not assured. A full-text copy of the blacklined changed pages to the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?24ab A full-text copy of the blacklined changed pages to the Plan is available for free at http://ResearchArchives.com/t/s?24ac A full-text copy of the potential amendments and the Investment Agreement Amendment Approval Motion and related pleadings can be obtained at http://www.delphidocket.com/ Adequacy of Disclosure Statement The hearing to consider the adequacy of the Disclosure Statement began on Oct. 3, 2007 and is scheduled to continue on Nov. 8, 2007. The brief adjournment allowed Delphi to continue to negotiate potential Plan of Reorganization (POR) amendments with key stakeholders, make appropriate amendments to both the GM settlement documentation and the Equity Purchase Commitment Agreement, and continue discussions with potential exit lenders. Approval of the Disclosure Statement and related voting solicitation procedures permits the company to solicit acceptances of the proposed Plan of Reorganization later this year and seek confirmation of the Joint Plan of Reorganization by the Bankruptcy Court during the first quarter of 2008. About Delphi Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 93; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DRESER-RAND GROUP: Earns US$21.3 Mil. for Quarter Ended Sept. 30 ---------------------------------------------------------------- Dresser-Rand Group Inc. has reported net income of US$21.3 million, or US$0.25 per diluted share, for the third quarter 2007. This compares to a net income of US$22.9 million, or US$0.27 per diluted share, for the third quarter 2006. Vincent R. Volpe, Jr., President and Chief Executive Officer of Dresser-Rand, said, "Consistent with the information contained in our Oct. 3, 2007 news release, there are two items which affected our third quarter 2007 results. Costs and margin related to deferred sales associated with the work stoppage at our Painted Post facility were approximately US$20 million, which was higher than the originally anticipated range of US$12 to US$18 million. As we continue to hire permanent replacement workers and extend subcontracting, the associated financial impact of the strike will continue to be reduced and we believe will not be of a material nature in 2008." "Additionally, we expected a stronger recovery in aftermarket bookings and shipments than experienced. This shortfall is principally due to a delay attributable to changes in the procurement and budgeting processes of certain national oil company clients. The impact of this shortfall on bookings in the first nine months of 2007, which we believe was one of timing rather than lost market share, was approximately US$43 million compared to the corresponding nine month period in 2006. Excluding the specific national oil companies involved, the rest of the aftermarket bookings have grown from US$531.5 million in 2006 to US$574.4 million in 2007 or 8.1%. We do see signs of recovery with one national oil company with which we are presently negotiating a three year blanket purchase agreement initially valued at approximately US$50 million in aftermarket parts and services. This agreement would essentially pre- approve the operating budget and, thereby, shorten the approval process. We expect this agreement to be signed in the fourth quarter of this year. In light of the above, we believe that the year-to-date aftermarket sales shortfall will be at least partially recovered in the fourth quarter." Market conditions remain strong in both new unit and aftermarket business segments. In the third quarter 2007, total revenues increased 25.5%, bookings increased 2.7% and backlog grew 48.0% over the prior year period. Total revenues for the third quarter 2007 of US$389.3 million increased US$79.0 million or 25.5% compared to US$310.3 million for the third quarter 2006. Total revenues for the nine months ended Sept. 30, 2007, of US$1,144.9 million increased US$119.1 million or 11.6% compared to revenues of US$1,025.8 million for the corresponding period in 2006. Operating income for the third quarter 2007 was US$36.4 million. This compares to operating income of US$48.4 million for the third quarter 2006. Third quarter 2007 operating income decreased from the year ago quarter primarily due to the adverse impact of a work stoppage at the company's Painted Post facility in New York State. The company estimates the work stoppage reduced its operating income for the third quarter 2007 by approximately US$20 million, which includes approximately US$10 million higher costs principally for temporary workers and US$10 million for margin related to deferred sales. Operating income for the nine months ended Sept. 30, 2007, was US$119.4 million. This compares to operating income of US$105.8 million for the corresponding period in 2006. Operating income increased from the year ago nine-month period primarily due to higher sales which was partially offset by the work stoppage at the Painted Post facility. Bookings for the third quarter 2007 were US$496.2 million, which was US$12.9 million or 2.7% higher than the third quarter 2006. Bookings for the nine and twelve months ended Sept. 30, 2007, of US$1,581.0 million and US$2,137.2 million, respectively, were 23.3% and 26.2% higher than the bookings for the corresponding periods ended Sept. 30, 2006. The backlog at the end of September 2007, was US$1,750.8 million or 48.0% higher than the backlog at the end of September 2006 of US$1,183.0 million. New Units Segment New unit revenues for the third quarter 2007 of US$194.0 million compared to US$113.7 for the third quarter 2006. New unit revenues for the nine months ended Sept. 30, 2007, of US$540.6 million compared to US$501.0 million for the corresponding period in 2006. Overall demand for rotating equipment remains strong in all key markets. New unit operating income was US$12.0 million for the third quarter 2007 compared to operating income of US$11.4 million for the third quarter 2006. This segment's operating margin was 6.2% compared to 10.0% for the third quarter 2006. The decrease in this segment's operating results was primarily attributable to the work stoppage at the Painted Post facility. The company estimates the work stoppage reduced this segment's third quarter 2007 operating income by approximately US$8 to US$9 million and its operating margin by approximately 300 to 350 basis points. New unit operating income was US$34.0 million for the nine months ended Sept. 30, 2007, compared to operating income of US$24.7 million for the corresponding period in 2006. This segment's operating margin for the nine months ended Sept. 30, 2007, was 6.3% compared to 4.9% for the corresponding nine month period in 2006. The increases from the corresponding periods in 2006 were attributable to higher sales partially offset by the the work stoppage at the Painted Post facility. The company estimates the work stoppage reduced this segment's operating margin by approximately 100 to 150 basis points for the nine months ended Sept. 30, 2007. Bookings for the three months ended Sept. 30, 2007, of US$285.1 million were 2.8% higher than bookings for the corresponding period in 2006. New unit bookings included a US$33.5 million order for four reciprocating compressors, two centrifugal compressors, and two steam turbines for Valero's refinery expansion projects. Bookings for the nine and twelve months ended Sept. 30, 2007, of US$973.0 million and US$1,300.4 million, respectively, were 44.2% and 46.4% higher than the bookings for the corresponding periods ended Sept. 30, 2006. The backlog at Sept. 30, 2007, of US$1,456.7 million was 61.8% above the US$900.3 million backlog at Sept. 30, 2006. This increase was due to continuing strong worldwide demand for rotating equipment. Aftermarket Parts and Services Segment Aftermarket parts and services revenues for the third quarter 2007 of US$195.3 million compared to US$196.6 for the third quarter 2006. Aftermarket parts and services revenues for the nine months ended Sept. 30, 2007, of US$604.3 million compared to US$524.8 for the corresponding period in 2006. While the market overall continues to be strong, revenues in 2007 have been affected adversely, but the company believes temporarily, by changes in the procurement process and a delay in budget appropriations for certain of the company's national oil company clients. Aftermarket operating income for the third quarter 2007 of US$43.1 million compared to US$51.9 million for the third quarter 2006. This segment's operating margin for the third quarter of 2007 of approximately 22.1% compared to 26.4% for the third quarter 2006. The decrease in this segment's operating results was principally due to the work stoppage at the Painted Post facility. The company estimates the work stoppage reduced this segment's third quarter 2007 operating income by approximately US$11 to 12 million and its operating margin by approximately 400 to 450 basis points. Aftermarket operating income for the nine months ended Sept. 30, 2007, of US$143.2 million compared to US$131.8 million for the corresponding period in 2006. The increase in operating income from the corresponding nine-month period in 2006 was attributable to higher sales for parts and services partially offset by the adverse impact of the work stoppage at the Painted Post facility. This segment's operating margin of approximately 23.7% compared to 25.1% for the corresponding period in 2006. The company estimates the work stoppage reduced this segment's operating margin by approximately 100 to 150 basis points for the nine months ended Sept. 30, 2007. Bookings for the three months ended Sept. 30, 2007, of US$211.1 million were 2.5% above bookings for the corresponding period in 2006 of US$206.0 million. Bookings for the nine and twelve months ended Sept. 30, 2007 of US$608.0 million and US$836.8 million, respectively, compared to bookings of US$607.8 million and US$804.4 million, respectively, for the corresponding periods ended Sept. 30, 2006. Bookings have been affected adversely, but the company believes temporarily, by changes in the procurement process and a delay in budget appropriations for certain of the company's national oil company clients. The backlog at Sept. 30, 2007, of US$294.1 million compared to the backlog of US$282.7 million at Sept. 30, 2006. Liquidity and Capital Resources As of Sept. 30, 2007, cash and cash equivalents totaled US$184.0 million and borrowing availability under the company's US$500 million senior secured credit facility was US$306.6 million, as US$193.4 million was used for outstanding letters of credit. In the first nine months of 2007, cash provided by operating activities was US$187.7 million compared to US$92.1 million for the corresponding period in 2006. The increase of US$95.6 million in net cash provided by operating activities was principally from changes in working capital and improved operating performance. In the first nine months of 2007, capital expenditures totaled US$15.0 million and the company prepaid US$137.1 million of its outstanding indebtedness under its senior secured credit facility. As of Sept. 30, 2007, total debt was US$370.0 million and total debt net of cash and cash equivalents was approximately US$186.0 million. In August 2007, the company amended its senior secured credit facility. The amended credit facility is a five year, US$500 million revolving credit facility. The amendment increased the size of the facility by US$150 million, lowered borrowing costs 50 basis points to LIBOR plus 150 basis points at present leverage and extended the maturity date from Oct. 29, 2009 to Aug. 30, 2012. The amendment also reduced the commitment fee from 37.5 basis points to 30.0 basis points. Painted Post Labor Agreement The labor agreement covering approximately 400 represented employees at the company's Painted Post facility in New York expired Aug. 3, 2007. There was no agreement reached resulting in a continuing work stoppage. The company implemented a multiphase contingency plan that has been designed to allow for uninterrupted service to its clients. The company estimates the work stoppage reduced its operating income for three and nine months ended Sept. 30, 2007, by approximately US$20 million, which includes approximately US$10 million in higher costs, principally for temporary workers, and US$10 million for margin related to deferred sales. While the work stoppage has resulted in higher costs and deferred sales, the company maintains its commitment to the long-term improvement of its operations and believes any short-term adverse impacts to its business are worth incurring for whatever period necessary to meet its long- term objectives. Contingency plan update: 1. Approximately 180 temporary replacement workers have been contracted since the first week of the work stoppage. Temporary workers will be reduced as the company continues recruiting permanent replacement workers and extends subcontracting. 2. The company has begun the process of operating with a permanent workforce in Painted Post, which currently stands at 75 employees. This total includes both recently hired permanent workers and bargaining unit employees who have chosen to return to work. 3. Additionally, another twenty-five applicants have been offered employment and are expected to begin training in early November, bringing the total in-plant permanent workforce to approximately 100. 4. Subcontracting has grown to approximately 35% of Painted Post's labor hours and will continue, replacing the work of approximately 150 people by year-end 2007. 5. Quality products continue to be shipped starting with the second week of the work stoppage. 6. Production capacity will continue to ramp-up due to the above planned actions. Outlook Demand for rotating equipment and aftermarket parts and services continues to be strong but aftermarket bookings and revenues continue to be adversely, but the company believes temporarily, impacted by changes in the procurement process approval cycle and a delay in the budget appropriations for certain of its national oil company clients. The backlog of orders has continued to increase to record levels. At Sept. 30, 2007, 72.4% of the backlog of US$1,750.8 million is scheduled to ship in 2008 and beyond. The company believes that its 2007 operating income will be in the range of US$205 million to US$225 million, including a potential FAS 106 non-cash curtailment gain related to the work stoppage of approximately US$8 million to US$12 million. About Dresser-Rand Group Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to the US$500 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/Stable/--). DRESSER-RAND GROUP: Inks Alliance Agreement with Repsol YPF ----------------------------------------------------------- Dresser-Rand Group Inc. has signed an alliance agreement with Repsol YPF. The agreement covers sales of all Dresser-Rand products and services. Dresser-Rand estimates the value of the alliance agreement to be approximately US$100 million for products and services over the next two years. One steam turbine project for the Tarragona (Spain) refinery valued at approximately US$13 million was secured in August 2007. Subsequently, in the month of October, two projects for the Petronor Refinery (Bilbao, Spain) have been awarded with a total value of approximately US$20 million. Dresser-Rand will supply one process reciprocating compressor, one DATUM centrifugal compressor and associated services. "We're appreciative of the confidence that Repsol has placed in Dresser- Rand," said Vincent R. Volpe, Jr., president and Chief Executive Officer of Dresser-Rand. "As a new alliance partner, we look forward to working with Repsol to provide value- adding solutions through lowest life cycle cost for new equipment and minimal emissions. We're also pleased to supply equipment to the planned refinery expansions reflecting the continued strength of this market segment, particularly as it relates to expansion in the European market." Repsol-YPF's decision to enter into an alliance with Dresser- Rand was primarily based on the company's technical capability as well as its proposal to reduce Repsol's total cost of ownership of their assets. Repsol-YPF will be able to realize considerable saving by not utilizing an EPC contractor for the final design stages and procurement (after FEED) based on Dresser-Rand's proprietary Corporate Product Configurator and its Price Book e-tools. About Repsol YPF Repsol YPF, S.A. (IBEX: REP) is an integrated Spanish oil and gas company with operations in 29 countries, the bulk of its assets are located in Spain and Argentina. Repsol S.A. is one of the world's ten largest private oil enterprises, employing over 30,000 people worldwide. Repsol YPF operates five refineries in Spain and four in Latin America and produces chemicals, plastics, and polymers. It sells gas under the brands Campsa, Petronor, and Repsol at more than 6,900 service stations in Europe and Latin America. It is one of Spain's largest sellers of liquefied petroleum gas. About Dresser-Rand Group Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to the US$500 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/Stable/--). ENERGIAS DO BRASIL: Earns BRL130.6 Million in Third Quarter ----------------------------------------------------------- Energias Do Brasil S.A. announces its results for the third quarter and the first nine months of 2007. The information is presented on a consolidated basis in accordance with Brazilian Corporate Law and is based on reviewed financial information. The independent auditors did not review the operating information. -- Energy volumes distributed in 3Q07 totaled 6,190 GWh, 3.7% more than recorded in 3Q06. Volumes were boosted by a growth in demand in residential and commercial customers, notably in Bandeirante and Escelsa's concession areas. -- Enertrade's commercialization business reported a growth of 17.1% in 3Q07 when compared to 3Q06, driven by a growth of 23.3% in the volume of sales to free consumers, which offset the end of Enerpeixe's contract. -- The volume of energy sold in 3Q07 was 1,433 GWh, a 7.0% hike from the same quarter in 2006, reflecting sales from the 4th generating unit at the Mascarenhas Hydro Power Plant and from the Sao Joao Small Hydro Power Plant. -- Net operating revenue in 3Q07 was BRL1,166.4 million, 16.1% more than in 3Q06. This performance resulted mainly from the increase in generation capacity, as well as the growth in distributed and commercialized energy volumes and also tariff hikes in the distribution and generation businesses. -- In 3Q07, EBITDA reached BRL317.0 million, a decrease of 6.6% when compared to 3Q06. Both 3Q07 and 3Q06 EBITDAs were affected by non-recurring effects. Adjusting the figures, 3Q07 EBITDA would amount to BRL338.9 million while 3Q06 EBITDA would reach BRL304.9 million, which would imply an 11.2% increase from yoy. -- Net income amounted BRL130.6 million, a 14.6% growth over 3Q06 earnings, boosted by the improvement in better financial results in 3Q07. -- Capital expenditures amounted to BRL173.8 million in 3Q07, a reduction of 29.3% when compared to 3Q06, mainly a reflection of the conclusion of construction work at Peixe Angical. -- On Aug. 06, 2007, Aneel approved Escelsa's tariff revision. Considering financial adjustments, the effective average tariff readjustment was -9.62%. -- On Aug. 29, 2007, Enersul received a Notification Term from Aneel regarding a decision to reassess the company's Regulatory Asset Base, as defined in its 2003 Tariff Review. On Sept. 21, Enersul submitted an appeal to Aneel and is currently awaiting for the regulator's decision on that matter. -- On Oct. 16, 2007, the energy from Pecem thermal power plant (UTE) was sold in the A-5 new energy auction. UTE Pecem, a projected developed in partnership with MPX Mineracao & Energia, will have an installed capacity of 700MW. When concluded, UTE Pecem will imply an approximate growth of 33% over Energias do Brasil's current installed capacity. -- On Oct. 22, 2007, Aneel approved Bandeirante's tariff revision. Considering financial adjustments, the effective average tariff readjustment was -12.47%. Energias do Brasil is an integrated utility group controlled by Energias de Portugal, with activities in generation, distribution and commercialization of electricity. Its power distribution subsdiaries Bandeirante, Escelsa and Enersul represent altogether some 64% of consolidated total assets, while the power generation assets represent some 31%. EDB reported consolidated net revenues of BRL4,112 million (US$1.90 billion) in the last twelve months ended Mar. 31, 2007. * * * As reported in the Troubled Company Reporter-Latin America on May 21, 2007, Moody's America Latina assigned a senior unsecured corporate family rating of Ba2 on its global scale and Aa3.br on its Brazilian national scale to EDP- Energias do Brasil S.A. Moody's said the outlook of the ratings is stable. GENERAL MOTORS: UBS Upgrades Firm's Shares To Buy from Sell ----------------------------------------------------------- UBS analysts have upgraded General Motors' shares to "buy" from "sell," Newratings.com reports. According to Newratings.com, the one-year target price for General Motors' shares was increased to US$48 from US$24. The analysts said in a research note that under the United Auto Workers contract, General Motors' Tier 2 employees would earn almost 50% less than the Tier 1 workers, while new core employees would get total compensation in-line with that at Toyota. The analysts told Newratings.com that this year's contract decreased "the number of skilled jobs, which would encourage senior workers to accept buyouts." General Motors would be "transformed" by 2010. The contract accounts for US$3-billion potential cost savings, Newratings.com notes, citing UBS. This year's earnings per share estimate was decreased to US$2.75 from US$4.00, Newratings.com states. 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. GERDAU SA: Starts Operating Acominas Unit's Second Blast Furnace ---------------------------------------------------------------- Gerdau SA said in a statement that it has started operating the second blast furnace at its Acominas unit in Minas Gerais. Business News Americas relates that the blast furnace's startup is part of an expansion project at the mill in Ouro Branco to 4.5 million tons per year from 3.0 million tons a year, with investments totaling US$1.50 billion. Gerdau SA Chief Executive Officer Andre Gerdau Johannpeter said in a statement, "The expansion of Gerdau Acominas is the biggest investment of Grupo Gerdau's history in Brazil. With this project, we are preparing ourselves to meet the increasing local and global demand for steel products." Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. As reported on Oct. 1, 2007, Moody's Investors Service confirmed the Ba1 corporate family ratings of Gerdau S.A. and Gerdau Ameristeel Corporation. The ratings agency also confirmed the Ba1 corporate family rating of the Brazilian operations of Gerdau, represented by Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos S.A. Meanwhile, the ratings for Chaparral Steel Company were withdrawn as all its rated debt will be retired. Moody's said the outlook for all ratings is stable. LAZARD LTD: Paying US$0.09 Per Share Quarterly Dividend ------------------------------------------------------- Lazard Ltd.'s Board of Directors has declared a quarterly dividend of US$0.09 per share on its outstanding Class A common stock, payable on Nov. 30, 2007, to stockholders of record on Nov. 9, 2007. Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a preeminent financial advisory and asset management firms, that operates from 32 cities across 16 countries in North America, Europe, Asia, Australia and South America. With origins dating back to 1848, the firm provides advice on mergers and acquisitions, restructuring and capital raising, well as asset management services to corporations, partnerships, institutions, governments, and individuals. The company has locations in Australia, Brazil, China, France, Germany, India, Japan, Korea and Singapore. The company reported total assets of US$2.6 billion, total liabilities of US$2.8 billion, and minority interest at US$55.7 million, resulting in a total stockholders' deficit of US$206.8 million as of March 31, 2007. NOVELIS INC: Realm Communications Completes Rebranding ------------------------------------------------------ Realm Communications has announced the completion of its rebranding initiative for Novelis Inc., newly acquired by Mumbai-based Hindalco Industries Limited, the flagship company of the multinational conglomerate Aditya Birla Group. The biggest Indian acquisition of a U.S.-based company, Hindalco, with Novelis, is now the world's largest aluminum rolled products company and recycler of aluminum cans, as well as one of the largest producers of primary aluminum in Asia and of copper in India. A landmark transaction for Aditya Birla and further evidence of India's expanding global business presence, Realm capitalized on the reputations and collaboration of these two giants in the metals industry by combining the best of both worlds, yet remaining sensitive to accommodating two cultures, both from a corporate and ethnic perspective, under one brand. "When you're rebranding a multicultural corporation, especially in light of an acquisition, you have to take a 360-degree view, respecting what has come before and balancing that with established identities," said Michael Stewart, Realm's Creative Director. "In this particular case we had to marry the brand promise and graphic identity of an Indian parent company with a North American subsidiary with locations in 11 countries. We believe the result not only affirms their complementary capabilities, but also anticipates their future possibilities." In developing the new brand message, Realm chose a direction that would better support the Novelis vision -- "To make the world a lighter, brighter and better place" -- and ensure that it underscores a consistent and stable message for the corporate transition. With that as the goal, "Brighter ideas with aluminum" is the new Novelis tag line. The brand message clearly defines Novelis' business and reinforces their commitment to be a commodity provider as well as an industry innovator. Brand applications such as websites, collateral, vehicles and workwear are due to be fully implemented by the end of the year. Exterior signage will be completed by July 2008. About Realm Communications REALM Communications Group, Inc. -- http://www.rcgoptic.com/-- is a manufacturer, a value added reseller, a systems integrator and distributor of fiber optic equipment, communication products, and fiber optic cables. The company specializes in developing and marketing unique fiber optic solutions. Founded in 1987, REALM has taken a leading role in supplying state of the art technologies and integrated solutions in voice, data, video, and SCADA fields. About Novelis Based in Atlanta, Georgia, Novelis Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- is the global provider of aluminum rolled products and aluminum can recycling. The company operates in 11 countries and has approximately 12,900 employees. Novelis has the capability to provide its customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America and South America. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. Novelis South America operates two rolling plants and primary production facilities in Brazil in the Latin American region. Novelis also has operations in Germany, Switzerland and Korea. * * * As reported in the Troubled Company Reporter-Latin America on July 26, 2007, Fitch Ratings has affirmed the Issuer Default Rating for Novelis, Inc. and Novelis, Corp. at 'B' and assigned a Negative Rating Outlook. The company's previous senior secured bank debt ratings have been withdrawn. Ratings for the new credit facility of 'BB' were assigned and the senior unsecured debt ratings have been affirmed as: Novelis, Inc. -- IDR 'B'; -- Senior secured asset-based revolver 'BB/RR1'; -- Senior secured term loan B 'BB/RR1'; -- Senior unsecured notes 'B/RR4'. Novelis, Corp. -- IDR 'B'; -- Senior secured asset-based revolver 'BB/RR1'; -- Senior secured term loan B 'BB/RR1'. PERDIGAO SA: Signs Share Purchase Agreement with Eleva Alimentos ---------------------------------------------------------------- Perdigao S.A. and Eleva Alimentos S.A. have signed a share purchase and other covenants. Under the agreements: (a) the controlling shareholders of Eleva undertake to sell to Perdigao 23,170,146 shares of Eleva representative of 46.23% of the stake in the company held by them and corresponding to 35.74% of the voting and total capital of Eleva at the price of BRL25.8162443 per share, to be paid on or before Dec. 30, 2007; and (b) through the incorporation of the shares of Eleva by Perdigao (Incorporation of Shares), it is established that Perdigao will take ownership of the remaining stake of 53.77% held by the controlling shareholders, representing 41.57% of the voting and total capital of Eleva in such a manner that the controlling shareholders will receive 15,463,349 shares of Perdigao as a consequence of the Incorporation of Shares. With the conclusion of these transactions, Perdigao will take shareholding control of Eleva, the latter becoming a wholly owned subsidiary of Perdigao. 1. Stages of the Transaction (i) With the purpose of financing the acquisition of the shares of Eleva, which shall be paid in cash, pursuant to item (a) above, Perdigao shall make a public offering comprising a primary distribution of its common shares in Brazil (Primary Offering), the request for registration of which has been approved on Oct. 30, 2007 by Perdigao's Board of Directors and shall be filed with the CVM on the same date. (ii) The Common Shares will not be registered with the U.S. Securities and Exchange Commission and thus may only be offered and sold in the United States of America on the basis of exemption or in transactions not subject to registration with the SEC. (iii) As soon as the requirements under the provisions in articles 224 and successive articles thereafter of Law 6,404/76 and in CVM Instruction 319/99, both as amended have been complied with, the managements of Perdigao and Eleva shall convene a general meeting of their shareholders to decide on the Incorporation of Shares, including the approval of experts hired to prepare the reports required for the realization of the Incorporation of Shares, these reports, as with the other documents required under said legislation, to be made available to the shareholders of the companies, parties to the transaction. (iv) Following the payment of the shares to be acquired for cash from the controlling shareholders of Eleva, pursuant to item (a) above, Perdigao shall hold a public offering for the acquisition of the shares of the minority shareholders of Eleva, pursuant to article 254-A of Law 6,404/76, at the same price and under the same conditions of acquisition as the other shares held by Eleva's controlling shareholder (Tag Along Offering), that is, through payment in cash for 46.23% of the shares held by the minority shareholders at the price of BRL25.8162443 per share, and the issue and delivery to these shareholders of shares of Perdigao, as a result of the Incorporation of Shares, for the remaining 53.77% of the shares held by the minority shareholders, in the proportion of 1 share issued by Perdigao for 1.74308855 shares issued by Eleva. 2. Reasons for the Transaction. The managements of Perdigao and Eleva believe that the transaction will create shareholder value for both companies. The operation should also additionally allow the capture of financial and commercial synergies in addition to the tax benefits generated from the amortization of the goodwill resulting from the acquisition. 3. Exchange Ratio for the Incorporation of Shares. For the purposes of establishing the exchange ratio of the shares issued by Eleva for shares issued by Perdigao, Eleva and Perdigao were evaluated by Banco de Investimentos Credit Suisse (Brasil) S.A according to the same criterion, that of economic value, using the discounted cash flow method. Based on this evaluation, Eleva's shareholders shall receive, on the Inco