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 15, 2007, Vol. 8, Issue 226 Headlines A R G E N T I N A BUNGE LTD: Closes Cumulative Preference Shares Sale for US$110MM COCTIN SA: Proofs of Claim Verification Deadline Is Feb. 25 DESARA SA: Proofs of Claim Verification Is Until March 7, 2008 FALUBBA HNOS: Proofs of Claim Verification Ends on Feb. 29, 2008 FERRO CORP: Forms Electronic Packaging Materials Unit GUILLERMO V: Proofs of Claim Verification Deadline Is Dec. 20 LOS MIRASOLES: Proofs of Claim Verification Ends on Feb. 21 NARDUCCI CONSTRUCTORA: Claims Verification Is Until Feb. 19 RED HAT: Teams Up with Platform Computing to Offer HPC Solution SMOBY-MAJORETTE: To Appeal Court's Receivership Ruling TYSON FOODS: Earns US$32 Million in Fourth Qtr. Ended Sept. 30 TYSON FOODS: Outlines International Expansion Plans * ARGENTINA: No Proposal for Paris Club US$95B Debt Repayment B A H A M A S ISLE OF CAPRI: Buys 43% Black Hawk Stake for US$64.6 Million B E R M U D A ENERGY XXI: Earns US$1.9 Million in First Quarter Ended Sept. 30 SCOTTISH RE: Moody's Affirms Firm's Ratings TRANS-OCEAN INSURANCE: Proofs of Claim Filing Deadline Is Dec. 6 B O L I V I A * BOLIVIA: State Firm Makes Second Call for Hydrocarbons Bids B R A Z I L AFFINIA GROUP: Completes Acquisition of Brake Pro Assets AMERICAN AIRLINES: Fitch Affirms B- Issuer Defualt Rating AMR CORPORATION: Fitch Affirms Issuer Default Rating at B- BANCO NACIONAL: Releasing More Funds for Infrastructure Projects BR MALLS: Gets Additional Stakes in Seven Malls BRA TRANSPORTES: Filing for Bankruptcy Protection CA INC: Signs Strategic Deal with HCL Technologies COMPANHIA PARANAENSE: Reports BRL270MM Net Income for Third Qtr. CYRELA BRAZIL: Gross Profit Up 82.1% to BRL180.5 Mln in 3rd Qtr. KRATON POLYMERS: Incurs US$754,000 Net Loss in Third Quarter LAZARD LTD: Bruce Bilger To Lead Global Energy REALOGY CORP: Hires Richard Smith as Chief Executive Officer SUN MICROSYSTEMS: Enters into Definitive Pact Acquiring Vaau * BRAZIL: Moody's Says New Oil Find Good for Petrobras' Future * BRAZIL: Petrobras Appeals for Gas Supply Resumption Injunction * BRAZIL: Petrobras To Start Running Peroa Phase 2 in 2008 C A Y M A N I S L A N D S 6TH AVENUE: Proofs of Claim Filing Deadline Is Nov. 29 ATON LIMITED: Proofs of Claim Filing Ends on Nov. 29 BIG HAND: Proofs of Claim Filing Is Until Nov. 29 BOMBAY CO: Taps DJM Realty to Dispose U.S. Retail Store Leases EAGLE 1: Proofs of Claim Filing Ends on Nov. 29 ECLIPSE SECURITIES: Proofs of Claim Filing Is Until Nov. 29 JUNO FUND: Proofs of Claim Filing Deadline Is Nov. 29 TOR FINANCE: Proofs of Claim Filing Ends on Nov. 29 UBS NEUTRAL: Proofs of Claim Filing Deadline Is Nov. 29 VEGA EMERGING: Proofs of Claim Filing Is Until Nov. 29 VEGA EMERGING ALPHA: Proofs of Claim Filing Deadline Is Nov. 29 C H I L E QUEBECOR WORLD: Moody's Rates New US$400-Million Notes at Caa1 QUEBECOR WORLD: S&P Rates US$400 Mil. Proposed Notes at B C O L O M B I A BANCOLOMBIA SA: Reports Unconsolidated COP78,161 Mil. Net Income SOLUTIA INC: CPFilms Closes US$6.95MM Buy of Acquired Technology C O S T A R I C A HILTON HOTELS: Inks Management Agreement with Desatur Cariari E C U A D O R PETROECUADOR: Contract Revisions To Bring in US$740 Million PETROLEUM GEO: S&P Affirms BB- Long-Term Corporate Credit Rating * ECUADOR: Biggest Weakness Is Willingness to Pay, Fitch Says J A M A I C A CABLE & WIRELESS: Loses More Than US$100 Mil. from Cable Theft NATIONAL COMMERCIAL: Earns J$6.6 Billion in Financial Year 2007 NATIONAL WATER: Heavy Rainfall Shuts Down Water Facilities M E X I C O ACXIOM CORP: Charles Morgan Quits from Board of Directors ALESTRA: Working with Sonus Networks to Offer Internet Services ATARI INC: Chief Executive Officer David Pierce Resigns ATARI INC: Eyes Publishing & Distribution in North America BENQ CORP: Eyes Business Expansion in the Philippines CABLEMAS SA: Renews Billing Pact with Convergys CEMEX SAB: Unit to Expand Scope of Ready Mix Joint Venture COREL CORP: S&P Revises Outlook; Affirms B Corp. Credit Rating FREESCALE SEMI: Joins SPIRIT Consortium Board of Directors FREESCALE SEMICONDUCTOR: Fitch Assigns Low B & Junk Ratings MOVIE GALLERY: Court Defers Hearing on Leases Auction to Nov. 28 MOVIE GALLERY: Resolves Objections to Leases Auction MOVIE GALLERY: Securities Delisted from NASDAQ Stock Market P E R U CLOROX CO: Board Declares 40 Cents Per Share Quarterly Dividend COMVERSE TECH: Andre Dahan Assumes CEO Role for Subsidiary P U E R T O R I C o PILGRIM'S PRIDE: Incurs US$7.5 Mil. Net Loss in Fourth Qtr. 2007 T R I N I D A D A N D T O B A G O MIRANT CORP: Fitch Removes Ratings from Negative Watch U R U G U A Y NAVIOS MARITIME: Prices Initial Public Offering at US$20 A Share SENSIENT TECHNOLOGIES: Officer Adopts Rule 10b5-1 Trading Plan V E N E Z U E L A ARVINMERITOR INC: Paying US$0.10 Per Share Dividend on Dec. 10 PEABODY ENERGY: Fitch Affirms Issuer Default Rating at BB+ * VENEZUELA: Fitch Assigns BB- Ratings on Three Coupon Bonds - - - - - ================= A R G E N T I N A ================= BUNGE LTD: Closes Cumulative Preference Shares Sale for US$110MM ---------------------------------------------------------------- Bunge Limited has completed the sale and issuance of 112,500 additional 5.125% cumulative mandatory convertible preference shares (US$1,000 liquidation preference per share) pursuant to the over-allotment option granted to the underwriter in connection with Bunge's previously announced public offering that closed on Nov. 7, 2007. As a result of the exercise in full of the over-allotment option, Bunge has issued an aggregate of 862,500 mandatory convertible preference shares in the offering. Bunge received additional net proceeds, after deducting underwriting discounts and commissions, of approximately US$110 million, which resulted in aggregate net proceeds from the offering of approximately US$845 million. Bunge intends to use the additional net proceeds from the offering to repay indebtedness and for general corporate purposes. Citi served as the sole manager for the offering. This offering of preference shares may be made only by means of a prospectus supplement and an accompanying prospectus. Copies of the prospectus supplement and the accompanying prospectus relating to this offering can be obtained from Citi at Brooklyn Army Terminal, 140 58th Street, 8th Floor, New York (fax: (718) 765-6732). About Bunge Headquartered in White Plains, New York, Bunge Ltd. is a global agribusiness company with operations primarily in commodity grain processing and fertilizer production. It has operations in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 8, 2007, Standard & Poor's Ratings Services has assigned its 'BB' rating to Bunge Ltd.'s US$750 million of 5.125% cumulative mandatory convertible preference shares. At the same time, S&P affirmed its 'BBB-' long-term corporate credit and other ratings on Bunge. The outlook is stable. Pro forma for the new issue, about US$4.2 billion of debt and preference shares of the company are rated. Proceeds from this issue will be used to repay debt and for general corporate purposes. COCTIN SA: Proofs of Claim Verification Deadline Is Feb. 25 ----------------------------------------------------------- Ester Ferraro, the court-appointed trustee for Coctin SA's bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 25, 2008. Ms. Ferraro will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 45, 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 Coctin 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 Coctin's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Ferraro is also in charge of administering Coctin's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Coctin SA Esmeralda 776 Buenos Aires, Argentina The trustee can be reached at: Ester Ferraro Esmeralda 960 Buenos Aires, Argentina DESARA SA: Proofs of Claim Verification Is Until March 7, 2008 -------------------------------------------------------------- Francisco Cano, the court-appointed trustee for Desara SA's bankruptcy proceeding, verifies creditors' proofs of claim until March 7, 2008. Mr. Cano will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 19 in Buenos Aires, with the assistance of Clerk No. 37, 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 Desara 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 Desara's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Cano is also in charge of administering Desara's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Desara SA Beruti 2951 Buenos Aires, Argentina The trustee can be reached at: Francisco Cano Uruguay 618 Buenos Aires, Argentina FALUBBA HNOS: Proofs of Claim Verification Ends on Feb. 29, 2008 ---------------------------------------------------------------- Gisela Karen Rios, the court-appointed trustee for Falubba Hnos. S.H.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 29, 2008. Ms. Rios will present the validated claims in court as individual reports on March 31, 2008. The National Commercial Court of First Instance in Lomas de Zamora, 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 Falubba Hnos. and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Falubba Hnos.'s accounting and banking records will be submitted in court on April 30, 2008. Ms. Rios is also in charge of administering Falubba Hnos.'s assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Falubba Hnos. S.H. Laureano Oliver 1550, Lomas de Zamora Buenos Aires, Argentina The trustee can be reached at: Gisela Karen Rios Araoz 446 Banfield, Partido de Lomas de Zamora Buenos Aires, Argentina FERRO CORP: Forms Electronic Packaging Materials Unit ----------------------------------------------------- Ferro Corporation's Electronic Material Systems has combined several sub-business units into the newly formed Electronic Packaging Materials unit. The new EPM unit was formed to make it easier for customers to buy both performance-enhancing engineered formulations and cost-effective materials used to produce hybrid circuits, microelectronics, advanced packaging, and devices. "We've combined several product-focused businesses to provide a full range of options to meet all of our electronics packaging customers' needs with a single point of contact," said Jeffrey Edel, Business Director/General Manager, Ferro Electronic Material Systems. "EPM's focused approach simplifies providing what customers need to gain an advantage, regardless of the product type." Ferro has a long track record of providing market-leading systems of matched engineered materials, as well as applied technology expertise to help integrate products into customers' manufacturing processes. These products are often customized for specific applications. In addition, many customers make their own formulations in-house, or use certain Ferro materials for particular functions. EPM was created to serve the full range of these customer needs. Engineered formulation product lines improve product performance and/or production efficiency in specific customer applications. These product lines include thick film conductive pastes and matched material systems comprised of resistor pastes, dielectrics, and overglazes for hybrid IC and metal core substrate applications, as well as high-performance, low temperature ceramic co-fired (LTCC) tape with a gold-based matched materials system. Ferro's cost-effective discrete materials provide building blocks for customers' electronic materials formulations. EPM offers electronic and technical glasses, and LTCC formulated powders. Ferro also manufactures binders and metal powders, as well as custom and proprietary electronic materials. About Ferro Electronic Ferro Electronic Material Systems has locations in Vista, CA; Penn Yan, NY; South Plainfield, NJ; Haverhill, United Kingdom; Uden, The Netherlands; Hanau, Germany; Tsukuba, Japan; and Suzhou, China. Its products include advanced packaging and thick film conductors; metal pastes and powders for solar energy applications; chemical mechanical planarization (CMP) slurries for semiconductors and advanced integrated circuits; dielectrics used in chip components and multilayer ceramic capacitors (MLCC); and surface finishing materials for LCD, hard disk, and ophthalmic polishing. About Ferro Corp. Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a global producer of an array of specialty chemicals including coatings, enamels, pigments, plastic compounds, and specialty chemicals for use in industries ranging from construction, pharmaceuticals and telecommunications. Ferro operates through the following five primary business segments: Performance Coatings, Electronic Materials, Color and Performance Glass Materials, Polymer Additives, and Specialty Plastics. Revenues were USUS$2 billion for the FYE ended Dec. 31, 2006. Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, among others. * * * As reported in the Troubled Company Reporter-Latin America on May 16, 2007, Moody's Investors Service assigned a B1 corporate family rating to Ferro Corporation. Moody's also assigned a B1 rating to the company's USUS$200 million senior secured notes (issued as unsecured notes in 2001) due in January 2009 and an SGL-3 speculative grade liquidity rating. GUILLERMO V: Proofs of Claim Verification Deadline Is Dec. 20 ------------------------------------------------------------- Suez, Pustilnik y Asoc., the court-appointed trustee for Guillermo V. Cassano S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 20, 2007. Suez, Pustilnik will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Guillermo V. 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 Guillermo V. Cassano's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Suez, Pustilnik is also in charge of administering Guillermo V.'s assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Suez, Pustilnik y Asoc. Suipacha 207 Buenos Aires, Argentina LOS MIRASOLES: Proofs of Claim Verification Ends on Feb. 21 ----------------------------------------------------------- Moises Gorelik, the court-appointed trustee for Los Mirasoles SA's bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 21, 2008. Mr. Gorelik will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 15 in Buenos Aires, with the assistance of Clerk No. 30, 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 Los Mirasoles 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 Los Mirasoles' accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Gorelik is also in charge of administering Los Mirasoles' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Los Mirasoles SA Juan de Garay 867 Buenos Aires, Argentina The trustee can be reached at: Moises Gorelik Lavalle 1675 Buenos Aires, Argentina NARDUCCI CONSTRUCTORA: Claims Verification Is Until Feb. 19 ----------------------------------------------------------- Guido Maria Salvadori, the court-appointed trustee for Narducci Constructora S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 19, 2008. Mr. Salvadori will present the validated claims in court as individual reports on April 9, 2008. The National Commercial Court of First Instance in Lomas de Zamora, 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 Narducci Constructora 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 Narducci Constructora's accounting and banking records will be submitted in court on May 28, 2008. Mr. Salvadori is also in charge of administering Narducci Constructora's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Narducci Constructora S.R.L. Colombres 847, Lomas de Zamora Buenos Aires, Argentina The trustee can be reached at: Guido Maria Salvadori Italia 26, Lomas de Zamora Buenos Aires, Argentina RED HAT: Teams Up with Platform Computing to Offer HPC Solution --------------------------------------------------------------- Red Hat has inked an agreement with Platform Computing, the global leader in High Performance Computing infrastructure software, to jointly offer a new product, the Red Hat HPC Solution, that fully integrates Platform's Open Cluster Stack1 with Red Hat Enterprise Linux. The new offering provides users with an end-to-end solution with a range of tools necessary to deploy and manage an HPC cluster in a wide range of environments, from SMB to Enterprise, while offering competitive pricing and outstanding performance. Businesses are increasingly utilizing HPC clusters to gain a competitive edge; the new Red Hat HPC Solution allows users to deploy their HPC applications in a more cost-effective manner, while providing tools in a single, easy-to-deploy package. The Red Hat solution incorporates the operating system, device drivers, cluster installer, resource and application monitor and job scheduler for every node in the cluster. The integrated HPC software stack includes Red Hat Enterprise Linux, the world's leading open source operating system, designed to deliver maximum application performance using today's low-cost, industry-standard systems. The solution also incorporates the device drivers and interconnect support necessary for efficiently running a high-performance cluster, and also includes Platform's Lava-based job scheduler to rapidly schedule user workloads. All of the components, supported by Red Hat's global 24x7 enterprise-level services, are delivered in one product, reducing the complexity and time needed to set up and optimize an HPC cluster. "Platform's 15 years of expertise deploying high-performance clusters, combined with the performance and stability of Red Hat Enterprise Linux, provide a perfect technology match for customers looking for an HPC solution," said Paul Cormier, executive vice president, Worldwide Engineering at Red Hat. "This agreement also enables us to tailor our existing enterprise solutions for smaller-sized customers, so this new and rapidly growing HPC market can enjoy the benefits of open source software." "Platform is excited to partner with Red Hat to reach new markets for HPC solutions," said Songnian Zhou, CEO, Platform Computing. "Organizations from Enterprise to SMB will be able to adopt open source solutions that are fully supported and easy to use. This agreement supports Platform's strategy to enable organizations to improve time to results and reduce computing costs when deploying cluster and grid software solutions." The Red Hat HPC Solution has completed certification on a range of hardware platforms and will be available at the end of 2007. About Platform Computing Platform Computing -- http://www.platform.com/-- is a pioneer and the global leader in High Performance Computing infrastructure software. The company delivers integrated software solutions that enable organizations to improve time-to- results and reduce computing costs. Many of the world's largest companies rely on Platform for workload management and cluster and grid management. Platform has over 2,200 global customers and strategic relationships with Dell, HP, IBM, Intel, Microsoft, Red Hat and SAS, along with the industry's broadest support for HPC applications. Building on 15 years of market leadership, Platform continues to define the HPC market. About Red Hat Headquartered in Raleigh, North Carolina Red Hat, Inc. -- http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Standard & Poor's Ratings Services has revised its outlook on Red Hat Inc. to positive from stable and affirmed the ratings, including the 'B+' corporate credit rating. SMOBY-MAJORETTE: To Appeal Court's Receivership Ruling ------------------------------------------------------ Smoby-Majorette will appeal a decision by the Commercial Court of Lons-le-Saunier to convert its bankruptcy protection into a period of administration, The Financial Times reports citing Les Echos as its source. As reported in the TCR-Europe on Oct. 12, 2007, the court placed Smoby-Majorette under receivership on Oct. 9, 2007, which ended the company's bankruptcy protection. The court blamed Smoby's buyer, MGA Entertainment, for failing to revive the company. In a report by Florentin Collomp for Le Figaro last week, MGA Entertainment said it is set to prepare a new recovery plan, which could involve: -- conversion of a EUR29 million loan into share capital; and -- an agreement between MGA and Smoby creditors over the repayment of its EUR270 million debt. The court-appointed administrators may decide whether to accept MGA's new recovery plan or to look for potential buyers. Deutsche Bank, Smoby's main creditor is also contemplating on launching a buyout offer for Smoby, Le Figaro relates. As reported in the TCR-Europe on Oct. 10, 2007, MGA's debt restructuring negotiation with Smoby's creditor banks fell through and it failed to pay the EUR11 million it pledged to invest in Smoby. About Smoby Headquartered in Lavans les Saint-Claude, France, Smoby -- http://www.smoby.fr/-- specializes in the creation, development, production and distribution of toys for children from birth to age 10. Smoby has a presence in over 90 countries globally, with commercial and/or industrial operations in South America, Asia and throughout Europe. The Company's products are sold worldwide through a network of 18 subsidiaries, with 65% of sales generated outside of France. In France, the Company employs 1, 300 workers. Its Latin America operations are found in Argentina, Brazil and Mexico. The Commercial Court of Lons-le-Saunier opened bankruptcy proceedings against Smoby on March 19, 2007, upon the Debtor's request. Smoby was hoping to snag an investor who will inject fresh capital yet remain a minority, as the company grapples with a EUR330-million debt. The company reported a net loss of EUR15.87 million for the year ended March 31, 2006, compared with a net profit of EUR1.56 million in 2005. TYSON FOODS: Earns US$32 Million in Fourth Qtr. Ended Sept. 30 -------------------------------------------------------------- Tyson Foods Inc. reported Monday net income of US$32 million for the fourth fiscal quarter ended Sept. 29, 2007, compared to a net loss of US$56 million in the same quarter last year. Fourth quarter 2007 sales were US$6.9 billion compared to US$6.5 billion for the same period last year. Operating income was US$102 million compared to an operating loss of US$20 million last year. Sales for fiscal 2007 were US$26.9 billion compared to US$25.6 billion last year. Operating income was US$614 million in fiscal 2007 compared to an operating loss of US$77 million in fiscal 2006, and net income was US$268 million in fiscal 2007 compared to a net loss of US$196 million in fiscal 2006. During the fourth quarter of fiscal 2007, the company recognized US$17 million of non-cash tax expense associated with the correction of its fixed asset tax costs. This was primarily related to a fixed asset system conversion in 1999, which caused an inappropriate increase in the company's fixed asset tax costs. During the fourth quarter of fiscal 2006, the company recorded pretax charges totaling US$23 million associated with its Cost Management Initiative, plant closing costs and other business consolidation efforts. These charges included severance expenses, product rationalization costs and other asset impairment related expenses. The company also recorded a US$15 million charge during the fourth quarter of fiscal 2006 resulting from a review of its tax account balances, as well as a US$5 million charge related to the cumulative effect of a change in accounting principle due to the adoption of Financial Accounting Standards Board Interpretation No. 47, "Accounting for Conditional Asset Retirement Obligations," an interpretation of FASB Statement No. 143. In the first nine months of fiscal 2006, the company recorded pretax charges totaling US$59 million associated with plant closing costs. "We made tremendous progress in fiscal 2007," said Richard L. Bond, president and chief executive officer. "I give all the credit for our success to the Tyson team members, who have worked so hard for this turnaround. "All four segments were profitable for the quarter, as anticipated, and profitability improved year over year for each segment. We achieved record sales of US$27 billion, along with a nearly US$700 million operating income improvement. Our US$2.8 billion debt balance at the end of the fiscal year was the lowest it has been since the IBP acquisition in 2001. We exceeded US$265 million in annualized savings from our Cost Management Initiative, and we recently completed efforts to streamline the organization and improve our decision making processes for greater agility as a company," Bond said. "As we begin 2008, we are experiencing some challenging market conditions. Based on present assessments, we believe we will incur additional increased grain costs of approximately US$300 million in the chicken segment," Bond said. "The current beef environment is extremely difficult as well. "Even with these concerns I remain very confident about the future of Tyson Foods. I believe we are a much stronger and better positioned company, and I believe our strategies are right for long term success." At Sept. 29, 2007, the company's consolidated balance sheet showed US$10.230 billion in total assets, US$5.499 billion in total liabilities, and US$4.731 billion in total shareholders' equity. About Tyson Foods Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson(TM)" strategy. The company has operations in China, Japan, Singapore, South Korea, and Taiwan. In Latin America, Tyson Foods has operations in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 24, 2007, Moody's Investors Service affirmed Tyson Foods Inc.'s ratings, including its Ba1 corporate family rating and Ba1 probability of default rating. Moody's said the rating outlook is negative. TYSON FOODS: Outlines International Expansion Plans --------------------------------------------------- As part of ongoing efforts to meet growing world demand for protein, Tyson Foods, Inc. plans to expand the company's presence in South America, China and Mexico. Tyson's efforts to turn fat into fuel also continue to move forward, with the selection of a site in Louisiana for an alternative fuel production facility. The international expansion and renewable fuel plans were reported today as part of presentations by six Tyson executives to analysts and investors at a meeting in New York City. International Sales Improvement Program Rick Greubel, group vice president and president of Tyson International, disclosed the company has set a goal of increasing international sales from US$3 billion in fiscal 2007 to US$5 billion by 2010. Expanding and establishing operations in other countries will be a key to achieving this objective. Greubel reported the company has signed a letter of intent to buy a mid-size, vertically integrated poultry business in Brazil. While details, including the name of the company, have not been released, company officials hope to complete the acquisition before the end of calendar 2007. Tyson has also reached preliminary agreements for two joint venture poultry operations in China. While specific details were not shared, Greubel indicated both ventures are currently expected to be completed in fiscal year 2008 and will help make Tyson one of the first companies in China to offer a full line of poultry products. Expansion of Tyson de Mexico, the Mexican poultry subsidiary of Tyson Foods, is another ongoing objective. The company is exploring ways to significantly increase production at its chicken processing operations in Mexico and also expand sales to customers in the region, including those in Central America. "Our global strategy is to target countries where we see the consumption of protein growing rapidly," Mr. Greubel said. "This includes gaining access to new markets, as well as expanding business with our existing international customers." Tyson already has joint venture poultry and pork operations in China and, through Tyson de Mexico, is one of the largest producers of value-added chicken for retail and foodservice customers in Mexico. Earlier this year, the company announced the formation of a vertically integrated beef operation in Argentina with two other companies. In addition, Tyson operates a cattle feedlot and beef processing plant in Alberta, Canada. Renewable Energy Strategic Quest Tyson Foods also continues to take strategic steps in its quest to be a premier player in renewable energy. Dynamic Fuels LLC, a company created by Tyson and Syntroleum Corporation of Tulsa, has selected an existing industrial site in Louisiana to build a plant to produce synthetic fuels from renewable feedstocks such as animal fat and grease. The specific location has not yet been disclosed. Construction is expected to start in 2008 with completion set for early 2010. The project, which will cost up to US$150 million, will generate approximately 250 short-term construction jobs and 65 highly skilled permanent jobs. "After extensive review of potential sites, we selected an existing industrial site in Louisiana because it's near the needed supply of feedstock and hydrogen, has an excellent transportation infrastructure, and also because of the strong support of state and local leaders," Jeff Webster, senior vice president, Tyson Renewable Products Division, said. "The selection represents another exciting step forward in our strategy of leveraging Tyson's access to animal by-products, our trading skills, and industry relationships to become a premier player in renewable energy." Once fully operational, the facility is expected to produce 75 million gallons of fuel a year from animal fats, greases and vegetable oils supplied by Tyson. The unblended fuel can be used as a premium fuel in existing diesel engines with no engine modifications required and can also be upgraded into ultra- clean, high quality synthetic jet fuel. Tyson and ConocoPhillips also continue to move forward with plans to convert animal fats into renewable diesel fuel. Capital investment for phase one, testing protocols and the establishment of pre-processing conditions, are complete and production is currently expected to start in December. Tyson will initially provide beef tallow from its Amarillo, Texas, beef complex to the ConocoPhillips refinery in nearby Borger, Texas. Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson(TM)" strategy. The company has operations in China, Japan, Singapore, South Korea, and Taiwan. In Latin America, Tyson Foods has operations in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 24, 2007, Moody's Investors Service affirmed Tyson Foods Inc.'s ratings, including its Ba1 corporate family rating and Ba1 probability of default rating. Moody's said the rating outlook is negative. * ARGENTINA: No Proposal for Paris Club US$95B Debt Repayment ------------------------------------------------------------- Paris Club President Xavier Musca told Bloomberg News that the group hasn't received a payment proposal from Argentina, who defaulted on a US$95 billion debt in 2001. Paris Club is an informal group of financial officials from 19 of the world's richest countries. Argentine Finance Secretary Sergio Chodos and President Cristina Kirchner have said in separate reports last month that a debt- payment proposal is underway. Argentina's economy has recovered from the recession six years ago, enabling it to settle its defaulted debts with various creditors. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 ============= B A H A M A S ============= ISLE OF CAPRI: Buys 43% Black Hawk Stake for US$64.6 Million ------------------------------------------------------------ Isle of Capri Casinos, Inc. has executed a definitive agreement pursuant to which it will acquire the 43% interest in Isle of Capri-Black Hawk LLC, which is currently owned by an affiliate of Nevada Gold & Casinos, Inc. Isle of Capri Casinos, Inc. currently owns 57% of Isle of Capri-Black Hawk LLC. Under the terms of the agreement, the company has agreed to pay US$64.6 million for the remaining 43% interest. Isle of Capri-Black Hawk, LLC owns Isle of Capri-Black Hawk and Colorado Central Station, both of which are in Black Hawk, Colorado. The company's chairperson and chief executive officer, Bernard Goldstein said, "We are pleased that we have been able to come to an agreement that is beneficial to both parties. We have enjoyed our relationship with Nevada Gold, and wish them well in future endeavours." The transaction is subject to certain significant conditions, including approval of the agreement by Nevada Gold shareholders, as well as customary closing conditions. About Isle of Capri Based in Biloxi, Mississippi and founded in 1992, Isle of Capri Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville and Kansas City, Missouri and a casino and harness track in Pompano Beach, Florida. The company also operates and has a 57.0% ownership interest in two casinos in Black Hawk, Colorado. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama, a casino in Coventry, England, and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. * * * As reported in the Troubled Company Reporter on June 21, 2007, Standard & Poor's Ratings Services revised its rating outlook on Isle of Capri Casinos Inc. to negative from stable. Ratings on the company, including the 'BB-' corporate credit rating, were affirmed. ============= B E R M U D A ============= ENERGY XXI: Earns US$1.9 Million in First Quarter Ended Sept. 30 ---------------------------------------------------------------- Energy XXI (Bermuda) Limited reported its fiscal first-quarter financial and operating results for the period ended Sept. 30, 2007. For the 2008 fiscal first-quarter, revenues were US$143.6 million and earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) totaled US$102.4 million, compared with revenues of US$65.8 million and EBITDA of US$45.1 million in the 2007 fiscal first quarter. Net income was US$1.9 million compared with net income of US$1.9 million in the 2007 fiscal first quarter. "Energy XXI achieved a 25 percent increase in production volumes relative to the immediately preceding quarter, and a 90 percent increase relative to the prior year's fiscal first quarter," Energy XXI Chairman and CEO John Schiller said. "Our volumes remained on an upward trajectory in October, averaging 26,500 barrels of oil equivalent per day (BOE/d), despite the shut-in of our Rabbit Island field due to maintenance on a third-party natural gas pipeline. The shut-in affected about 2,000 BOE/d of net production beginning in mid-October and is expected to last through November." Net cash provided by operating activities totaled US$76.7 million for the 2008 fiscal first quarter, compared with US$17.7 million in the 2007 fiscal first quarter. Discretionary cash flow was US$79.0 million in the 2008 fiscal first quarter, compared with US$40.3 million in the 2007 fiscal first quarter. For the 2008 fiscal first quarter, sales volumes averaged 26,200 BOE/d, compared with 13,800 BOE/d in the 2007 fiscal first quarter. The net realized price received for the company's production in the 2008 fiscal first quarter averaged US$59.63 per BOE, including US$3.94 per BOE contributed by hedging, compared with a net realized price of US$52.03 per BOE, including US$1.68 per BOE contributed by hedging, in the 2007 fiscal first quarter. Capital Expenditures During the 2008 fiscal first quarter, capital expenditures, excluding acquisitions, totaled US$79.5 million. In addition, producing property acquisitions totaled US$33.4 million, including US$29.9 million involving a partnership with Castex Energy. The fiscal year 2008 capital budget, excluding acquisitions, is unchanged at approximately US$260 million. Operational Highlights During the fiscal first quarter, Energy XXI was successful in four of five exploration wells and one of three development wells. Further detail on the exploration and development program is provided in the attached Operations Report. "Volume growth last year was driven by a very active development drilling program, particularly at our South Timbalier 21 field offshore Louisiana, whereas growth this year revolves around the optimization of production at the former Pogo properties acquired in June," Energy XXI President and Chief Operating Officer Steve Weyel said. "We have made good progress with the newly added properties, which continue to achieve volume growth ahead of our expectations, without having drilled a single well. We plan to ramp up the offshore drilling program later in the year, but for now we are concentrating on operating enhancements, getting higher rates from the existing producing wells while improving the on-line performance of the acquired facilities." About Energy XXI (Bermuda) Limited Founded in 2005, Energy XXI (Bermuda) Limited (LSE:EGY) -- http://www.energyxxi.com/-- is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are primarily located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. * * * As reported in the Troubled Company Reporter on May 21, 2007, Standard & Poor's Rating Services assigned its 'CCC+' corporate credit rating to oil and gas exploration and production company Energy XXI Limited. At the same time, Standard & Poor's assigned its 'CCC' senior unsecured rating to subsidiary Energy XXI Gulf Coast Inc.'s proposed US$700 million note offering. S&P said the outlook is stable. SCOTTISH RE: Moody's Affirms Firm's Ratings ------------------------------------------- Moody's Investors Service has affirmed the ratings of Scottish Re Group Limited's senior unsecured shelf of (P)Ba3 and changed the outlook to negative from stable. The change in outlook applies to the company's debt ratings and the Baa3 insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. (SALIC) and Scottish Re (US), Inc. All of the aforementioned ratings were affirmed. Moody's says that the change in outlook was driven primarily by adverse experience on the company's substantial exposure to subprime and Alt-A investments. As of the end of the third quarter, Scottish Re had approximately US$3 billion of subprime ABS and Alt-A holdings, which represented 27% of its total investment portfolio. For the third quarter of 2007, the company reported a net loss of US$109.5 million, driven by US$102 million in realized losses on investments, including US$95 million of subprime-related losses. According to Scott Robinson, Moody's Vice President & Senior Credit Officer, "Notwithstanding the relatively high quality of investments, the magnitude of the company's subprime and Alt-A exposure makes the company susceptible to further losses, especially in a severe downside scenario. While its operating income was in line with our expectations, credit challenges in the investment portfolio together with continued financial reporting control issues may make it more difficult for Scottish Re to regain the confidence of cedants and write meaningful amounts of new business." Moody's notes that although much of the subprime ABS and Alt-A exposure (US$2.3 billion) resides in non-recourse securitization vehicles the company has sponsored, the company's substantial equity investments in these securitizations would be further eroded should the investment holdings experience additional realized losses. As further default experience on recent vintages of subprime and Alt-A investments emerges, Moody's will continue to evaluate the impact of potential ranges of investment losses on the company's financial condition. These ratings were affirmed, with the outlook changed to negative from stable: Scottish Re Group Limited: -- Senior unsecured shelf of (P)Ba3; subordinate shelf of (P)B1; junior subordinate shelf of (P)B1; preferred stock of B2; and preferred stock shelf of (P)B2 Scottish Holdings Statutory Trust II: -- Preferred stock shelf of (P)B1 Scottish Holdings Statutory Trust III: -- Preferred stock shelf of (P)B1 Scottish Annuity & Life Insurance Co. (Cayman) Ltd.: -- IFS rating of Baa3 -- Premium Asset Trust Series 2004-4: senior secured debt of Baa3 Scottish Re (US), Inc.: -- Insurance financial strength of Baa3 Stingray Pass-Through Certificates: -- Baa3 (based on IFS rating of SALIC) On August 22, Moody's affirmed Scottish Re's ratings and changed the outlook to stable from positive. The rating action followed the company's disclosure of sizable holdings of subprime ABS and Alt-A holdings in its investment portfolio. Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. TRANS-OCEAN INSURANCE: Proofs of Claim Filing Deadline Is Dec. 6 ---------------------------------------------------------------- Trans-Ocean Insurance Limited's creditors are given until Dec. 6, 2007, to prove their claims to Adrian Lee-Emery, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Trans-Ocean Insurance's shareholders agreed on Nov. 6, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Adrian Lee-Emery F.B. Perry Building 40 Church Street, Hamilton Bermuda ============= B O L I V I A ============= * BOLIVIA: State Firm Makes Second Call for Hydrocarbons Bids ------------------------------------------------------------- Bolivian state-owned hydrocarbons firm Yacimientos Petroliferos Fiscales Bolivianos has issued a second call for bids to quantify and certify hydrocarbons reserves in the nation, Business News Americas reports. BNamericas relates that Yacimientos Petrolifeors will accept and open offers on Jan. 8, 2008, according to updated bidding rules. The deadline for inquiries is Dec. 24, 2007. A clarification meeting is set for Dec. 26, 2007. Yacimientos Petroliferos wants to award the contract in January 2008 and sign it in February 2008, according to BNamericas. The winning bidder will be given 195 days to present its report. As reported in the Troubled Company Reporter-Latin America on Nov 6, 2007, Standard & Poor's Ratings Services revised its outlook on the Republic of Bolivia to stable from negative. S&P also said that it affirmed its 'B-' long-term and 'C' short-term credit ratings on the sovereign. =========== B R A Z I L =========== AFFINIA GROUP: Completes Acquisition of Brake Pro Assets -------------------------------------------------------- Affinia Group Inc. has acquired certain assets of Brake Pro, Ltd., Ontario, Canada, under the Companies' Creditors Agreement Act of Canada. Among other items, the purchase includes manufacturing equipment, friction formulations and unrestricted rights to the brand name. Financial terms of the transaction, which was completed on Nov. 7, 2007, were not disclosed. Affinia is in the process of relocating the physical assets to its own North American manufacturing facilities, and will resume production of the Brake Pro(R) product line. Affinia expects to have Brake Pro brand product offerings in the marketplace as quickly as possible after the asset transition and manufacturing integration is complete. "The Brake Pro name is highly respected in the industry because of the consistently high performance of their proprietary friction products. The Brake Pro line will enhance our existing brake block and medium duty product offerings. More importantly it will put us back into the heavy duty segment, and the Brake Pro line will give us a great product offering for severe duty applications such as waste handling equipment, logging equipment, construction vehicles and transit applications," said Affinia's Under Vehicle Group President, John R. Washbish. "The market can expect to see Brake Pro product from us as quickly as we can reset the equipment." Mr. Washbish added. About Affinia Group Headquartered in Ann Arbor, Michigan, Affinia Group Inc. -- http://www.affiniagroup.com/-- designs, manufactures and distributes aftermarket components for passenger cars, sport utility vehicles, light, medium and heavy trucks and off-highway vehicles. The company's product range addresses filtration, brake and chassis markets in North and South America, Europe and Asia. Its South American operation is located in Brazil. * * * In January 2007, Moody's Investors Service placed Affinia Group Inc.'s long-term corporate family and probability of default ratings at 'B2', which still hold to date. Moody's said the outlook is stable. Standard & Poor's placed the company's foreign and local issuer credit ratings at 'B' in September 2005, which still hold to date. AMERICAN AIRLINES: Fitch Affirms B- Issuer Defualt Rating --------------------------------------------------------- Fitch Ratings has affirmed the debt ratings of AMR Corp. and its principal operating subsidiary American Airlines, Inc., as: AMR Corp. -- Issuer Default Rating at 'B-'; -- Senior unsecured debt at 'CCC'/RR6'; American Airlines -- Issuer Default Rating at 'B-'; -- Secured bank credit facility at 'BB-/RR1'. The Rating Outlook for both AMR Corp. and American has been revised to Positive from Stable. The affirmation and Outlook revision reflect progress made by AMR Corp. in directing free cash flow toward debt reduction throughout 2007, as well as Fitch's expectation that the airline can de-lever its balance sheet further-even in the face of record-high jet fuel costs and a challenging United States economic outlook moving into 2008. Ratings capture the airline's highly leveraged balance sheet and heavy fixed cash obligations, balanced against the substantial reduction in debt and improvements in liquidity achieved over the last two years. AMR Corp.'s intention to pre-pay approximately US$545 million of aircraft-backed debt in the fourth quarter appears to validate management's commitment to focus on debt reduction as the first and best use of free cash flow at a time when considerable uncertainty still exists over AMR Corp.'s cost profile and its capacity to grow profitably in a very difficult airline industry operating environment. Sustained improvements in passenger unit revenue over the last several quarters, tied to solid air travel demand patterns and constraints on industry capacity growth, have supported a surge in AMR Corp.'s free cash flow generation power. This in turn has made substantial debt reduction possible. Since year-end 2005, AMR's consolidated debt balance has declined from US$14.7 billion to US$12.0 billion at Sept. 30, 2007, while lease- adjusted leverage (capitalizing both aircraft and facilities rents at 8.0 times LTM expenses) has fallen from 9.8 at year-end 2005 to 5.7 at Sept. 30. With its heavy emphasis on strengthened liquidity and US$5.4 billion of unrestricted cash and investments, total net balance sheet debt stood at US$6.6 billion at the end of the third quarter. Besides spiking energy costs and mounting concerns over the durability of healthy air travel demand and pricing patterns, AMR Corp. faces significant cost pressures that could intensify over the next several quarters if a new round of contracts with the Allied Pilots Association and other unions pushes unit labor costs significantly higher. The pilot union's call for substantial wage increases raises the risk that rising pay and benefit levels could keep AMR's unit costs at the high end of the legacy carrier group for an extended period. With longer- term deals in place at Northwest and Delta following their bankruptcies, AMR could face a protracted cost competitiveness challenge that may keep available seat mile capacity and fleet growth in check for a number of years. With crude oil prices surging to over US$98 per barrel in early November, AMR Corp. and the other U.S. airlines have been forced to look for opportunities to recover higher fuel costs via fare hikes at a time when marginal demand patterns may already be softening. To date, rising fares and strong revenue per available seat mile (RASM) gains have offset fuel cost pressure. Still, looking into 2008, Fitch expects all U.S. carriers to experience some additional margin pressure that could limit free cash flow generation and constrain further debt reduction. AMR Corp. has approximately 40% of fourth quarter jet fuel consumption hedged with effective caps of approximately US$69 per barrel of crude oil. This will offset some fuel cost pressure, but AMR management has made it clear that additional fare hikes will be necessary to pass on higher fuel costs to customers. To date, the industry appears to be adopting a disciplined capacity approach in response to fuel cost pressure, and additional capacity reduction may well follow over the next few weeks. For AMR Corp., the absence of new aircraft deliveries until 2009 will keep capital spending low and allow continued debt reduction as well as cash pension funding of US$300 million - US$400 million next year. Since unrestricted cash and investments now represent about 25% of LTM revenues, most if not all free cash flow can be directed to the funding of debt maturities and pension contributions in 2008. Recent discussion of possible non-core asset spin-offs at AMR Corp. and the other legacy carriers raises questions over the long-term direction of core airline credit quality if cash- generating units such as the AAdvantage loyalty program, American Eagle regional airline unit, or the aircraft maintenance unit are ultimately separated from American Airlines, Inc. -- where the bulk of AMR's consolidated debt and fixed obligations reside. Any asset separation would presumably result in some margin erosion at the core airline, making the direction of cash proceeds from any asset sale toward debt reduction a credit-enhancing priority. While the Positive Rating Outlook reflects Fitch's view that further de-leveraging could drive an upgrade of AMR's IDR to 'B' in the near term, further spikes in jet fuel costs and/or a significant slowdown in the airline's RASM growth during 2008 could drive free cash flow lower and limit the potential for further improvements in credit quality. About American Airlines Inc. Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. American Airlines flies to Belgium, Brazil, Japan, among others. AMR CORPORATION: Fitch Affirms Issuer Default Rating at B- ---------------------------------------------------------- Fitch Ratings has affirmed the debt ratings of AMR Corp. and its principal operating subsidiary American Airlines, Inc., as: AMR Corp. -- Issuer Default Rating at 'B-'; -- Senior unsecured debt at 'CCC'/RR6'; American Airlines -- Issuer Default Rating at 'B-'; -- Secured bank credit facility at 'BB-/RR1'. The rating outlook for both AMR Corp. and American has been revised to positive from stable. The affirmation and Outlook revision reflect progress made by AMR Corp. in directing free cash flow toward debt reduction throughout 2007, as well as Fitch's expectation that the airline can de-lever its balance sheet further-even in the face of record-high jet fuel costs and a challenging United States economic outlook moving into 2008. Ratings capture the airline's highly leveraged balance sheet and heavy fixed cash obligations, balanced against the substantial reduction in debt and improvements in liquidity achieved over the last two years. AMR Corp.'s intention to pre-pay approximately US$545 million of aircraft-backed debt in the fourth quarter appears to validate management's commitment to focus on debt reduction as the first and best use of free cash flow at a time when considerable uncertainty still exists over AMR Corp.'s cost profile and its capacity to grow profitably in a very difficult airline industry operating environment. Sustained improvements in passenger unit revenue over the last several quarters, tied to solid air travel demand patterns and constraints on industry capacity growth, have supported a surge in AMR Corp.'s free cash flow generation power. This in turn has made substantial debt reduction possible. Since year-end 2005, AMR's consolidated debt balance has declined from US$14.7 billion to US$12.0 billion at Sept. 30, 2007, while lease- adjusted leverage (capitalizing both aircraft and facilities rents at 8.0 times LTM expenses) has fallen from 9.8 at year-end 2005 to 5.7 at Sept. 30. With its heavy emphasis on strengthened liquidity and US$5.4 billion of unrestricted cash and investments, total net balance sheet debt stood at US$6.6 billion at the end of the third quarter. Besides spiking energy costs and mounting concerns over the durability of healthy air travel demand and pricing patterns, AMR Corp. faces significant cost pressures that could intensify over the next several quarters if a new round of contracts with the Allied Pilots Association and other unions pushes unit labor costs significantly higher. The pilot union's call for substantial wage increases raises the risk that rising pay and benefit levels could keep AMR's unit costs at the high end of the legacy carrier group for an extended period. With longer- term deals in place at Northwest and Delta following their bankruptcies, AMR could face a protracted cost competitiveness challenge that may keep available seat mile capacity and fleet growth in check for a number of years. With crude oil prices surging to over US$98 per barrel in early November, AMR Corp. and the other U.S. airlines have been forced to look for opportunities to recover higher fuel costs via fare hikes at a time when marginal demand patterns may already be softening. To date, rising fares and strong revenue per available seat mile (RASM) gains have offset fuel cost pressure. Still, looking into 2008, Fitch expects all U.S. carriers to experience some additional margin pressure that could limit free cash flow generation and constrain further debt reduction. AMR Corp. has approximately 40% of fourth quarter jet fuel consumption hedged with effective caps of approximately US$69 per barrel of crude oil. This will offset some fuel cost pressure, but AMR management has made it clear that additional fare hikes will be necessary to pass on higher fuel costs to customers. To date, the industry appears to be adopting a disciplined capacity approach in response to fuel cost pressure, and additional capacity reduction may well follow over the next few weeks. For AMR Corp., the absence of new aircraft deliveries until 2009 will keep capital spending low and allow continued debt reduction as well as cash pension funding of US$300 million - US$400 million next year. Since unrestricted cash and investments now represent about 25% of LTM revenues, most if not all free cash flow can be directed to the funding of debt maturities and pension contributions in 2008. Recent discussion of possible non-core asset spin-offs at AMR Corp. and the other legacy carriers raises questions over the long-term direction of core airline credit quality if cash- generating units such as the AAdvantage loyalty program, American Eagle regional airline unit, or the aircraft maintenance unit are ultimately separated from American Airlines, Inc. -- where the bulk of AMR's consolidated debt and fixed obligations reside. Any asset separation would presumably result in some margin erosion at the core airline, making the direction of cash proceeds from any asset sale toward debt reduction a credit-enhancing priority. While the Positive Rating Outlook reflects Fitch's view that further de-leveraging could drive an upgrade of AMR's IDR to 'B' in the near term, further spikes in jet fuel costs and/or a significant slowdown in the airline's RASM growth during 2008 could drive free cash flow lower and limit the potential for further improvements in credit quality. About AMR Corporation Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, Europe and Asia, including Belgium, Brazil, Japan, among others. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR Corp., is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. BANCO NACIONAL: Releasing More Funds for Infrastructure Projects ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social head Luciano Coutinho told reporters that the bank would grant more financing for infrastructure projects in the next two years. Business News Americas relates that in the past 12 months, Banco Nacional's infrastructure project financing increased 80% to BRL37.9 billion, compared to the previous year. Disbursements rose 60% to BRL25.8 billion. Mr. Coutinho told BNamericas that these are the areas where the projects would be concentrated: -- transport, -- telecommunications, and -- energy. BNamericas notes that Banco Nacional ratified some BRL16.4 billion in transport projects in the past 12 months, about 450% greater that the previous 12-month period. The bank's telecommunications project funding rose 176% to BRL6.1 billion, while financing for projects in electric power grew 79% to BRL8.4 billion. "The coming highway concession auctions will require other investments. Besides that, BNDES [Banco Nacional] has had high demand for railway investments in recent months," Mr. Coutinho told BNamericas. 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. BR MALLS: Gets Additional Stakes in Seven Malls ----------------------------------------------- In the third quarter of 2007, BR Malls Participacoes S.A. has acquired additional stakes in 7 new malls, expanding its owned GLA by 77,000 square meters. These acquisitions included the industry's largest M&A transaction in the quarter: a portfolio of 4 malls located in the state of Rio de Janeiro. On July 23, in order to finance these acquisitions, BR Malls issued local debentures denominated in reals, raising BRL320 million, and signed a BRL550 million bridge loan with Itau BBA, UBS Pactual and Citibank. During the quarter, BR Malls announced three greenfield projects in the state of Sao Paulo (Mooca, Granja Vianna and Bauru projects), which will jointly add 101.8 thousand square meters to its total GLA and 68.1 thousand square meters to its owned GLA. BR Malls will be responsible for managing and leasing the three projects. On August 28, BR Malls hired UBS Pactual as a market maker to improve the liquidity of its shares, underlining its commitment to its investors and to the best corporate governance practices; Since the beginning of the year, BR Malls has been making every effort to become the most efficient shopping mall company in the sector. In the third quarter of 2007, BR Malls completed the task of mapping and optimizing all of the company's processes. BR Malls also concluded the implementation of an Oracle ERP system at the headquarter on October 1. Furthermore, BR Malls outsourced maintenance, security, cleaning and parking services for some of the malls in its portfolio in order to reduce condominium costs. The company also began a Shared Service Center, which will centralize all the financial processes in its malls. During the year, and especially during this quarter, BR Malls improved its fiscal efficiency, by reducing the accumulated tax burden of 27.2% of gross revenues in the 9M06 to 12.4% year-on- year basis; For the full earnings release please access: http://www.brmalls.com.br/ir Earnings Conference Calls English Portuguese Nov. 13, 2007 Nov. 13, 2007 10:00 a.m. (US EST) 08:00 a.m. (US EST) 01:00 p.m. (Brasilia Time) 11:00 a.m. (Brasilia Time) Phone: (1 973) 935-8893 Phone: (55 11) 4003-9004 Replay: (1 973) 341-3080 Replay: (55 11) 4003-9004 Code: 9394136 Code: BRMALLS About BR Malls BR Malls Participacoes SA is an integrated Shopping Mall company in Brazil. The company has stakes in 11 Shopping Centers, 10 of them in operation and one under construction, totalizing 505,000 square meters of Gross Commercial Area and 396,900 square meters of Gross Leaseable Area and approximate 2.2 thousand stores. The company provides management, consulting and leasing services for 37 Shopping Centers, Commercial and Business Centers, totalizing 981,000 square meters of Gross Commercial Area, with approximate 4,100 stores. The company's portfolio of shopping centers has been strategically diversified in its geographic positioning and in its penetration of income segments. The company's principal subsidiaries consist of ECISA Engenharia and ECISA Participacoes, Egec, Dacom, Sisa, Egec Par and GS, Nattca, SPE Indianapolis, Deico and other companies. * * * As reported in the Troubled Company Reporter-Latin America on July 24, 2007, Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to BR Malls Participacoes S.A. S&P said the outlook is stable. The company's total debt amounted to US$91 million in March 2007. BRA TRANSPORTES: Filing for Bankruptcy Protection ------------------------------------------------- Jessica Brice at Bloomberg News reports that BRA Transportes Aereos SA intends to file for a formal bankruptcy proceeding after it was forced to ground flights due to cash problems, Bloomberg News reports, citing Estado de S. Paulo. As a result of the company's stalled operations, about 1,100 workers were laid off. Its Chief Executive Officer Humberto Folegatti also resigned, who according to rumors, was forced to step down by the airline's board of directors. BRA was optimistic that it would be able to return to normal operations once it is able to secure additional financing. It flew to 26 local and three international routes. Estado related that while seeking funds, the airline would want protection from probable actions from its creditors. It owes US$100 million to banks and leasing companies, and needs US$17.2 million to be able to continue its flights to 26 domestic routes and three international ones. Meanwhile, OceanAir has temporarily taken over the airline's operations in order to lessen the impact on the already in- crisis Brazilian aviation industry. The government will decide this week if it will take over control of the airline. Other than OceanAir, major airlines in the country, like TAM SA and GOL Linhas Aereas Inteligentes, are honoring BRA tickets, according to AP. Based in Sao Pauolo, Brazil, BRA Transportes Aereos, due to financial difficulties, is a currently grounded low-fare airline with 26 domestic and three international routes. It started operations in 1999 as a domestic charter airline and transformed into a low-fare carrier in March 2006. CA INC: Signs Strategic Deal with HCL Technologies -------------------------------------------------- CA Inc. and HCL Technologies have entered into an agreement to establish a strategic partnership in which HCL will assume all research and product development connected with CA's threat management security business. CA will retain all sales and marketing functions. The goal of the strategic partnership is to grow CA's threat management business by combining the strengths of both organizations. HCL and CA will achieve goal alignment and financial targets through revenue sharing. The annual revenue of CA's threat management security business is in excess of US$100 million. The partnership covers all threat management products, which include anti-virus, anti-spyware, integrated threat manager, host-based intrusion prevention system, secure content manager, internet security suite, anti-spam and firewall. "HCL brings to the table over three decades of product engineering heritage and a track record of successful partnerships that have created value. This partnership benefits CA and HCL, and, most importantly, the customers who rely on CA's threat management security products to protect their systems and data." said Shiv Nadar, HCL's chairman and chief strategy officer. "This unique strategic partnership will enable us to profitably grow CA's threat business, develop a more aggressive product roadmap for the benefit of our customers, and ultimately gain market share," said Michael Christenson, CA's chief operating officer. "We are very excited to have found a global player with the strong reputation and solid depth of experience of HCL to be our strategic partner." HCL will be responsible for research, engineering, architecture, technical support, technical writing, and quality assurance. All affected employees outside of European Union countries will be offered employment with HCL. Within the EU countries, CA will start the consultation process with the affected employees. CA's threat management products will continue to be sold exclusively under the CA brand and through several routes to market with a growing emphasis on channel partners. The partnership is expected to become operational by year-end, following the signing of a definitive agreement. About HCL Technologies HCL Technologies Ltd. is one of India's leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 18 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences & Healthcare, Hi-Tech & Manufacturing, Telecom and Media & Entertainment. For the quarter ended 30th September 2007, HCL Technologies, along with its subsidiaries had last twelve months revenue of US$1.5 billion and employed 45,622 professionals. About HCL Enterprise HCL Enterprise -- http://www.hcl.in/-- is a US$4.4 billion (Rs. 18,525 crore) leading Global Technology and IT enterprise that comprises two companies listed in India - HCL Technologies & HCL Infosystems. The 3-decade-old enterprise, founded in 1976, is one of India's original IT garage start-ups. Its range of offerings span Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises approximately 51,000 professionals of diverse nationalities, who operate from 18 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. About CA Inc. Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. * * * As reported in the Troubled Company Reporter-Latin America on June 7, 2007, Standard & Poor's Rating Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on Islandia, New York-based CA Inc. S&P revised the outlook to stable from negative. As reported in the Troubled Company Reporter-Latin America on May 31, 2007, Fitch has affirmed these ratings for CA, Inc.: -- Issuer Default Rating at 'BB+'; -- Senior unsecured revolving credit facility expiring 2008 at 'BB+'; -- Senior unsecured debt at 'BB+'. COMPANHIA PARANAENSE: Reports BRL270MM Net Income for Third Qtr. ---------------------------------------------------------------- Companhia Paranaense de Energia aka COPEL,has announces its results for the third quarter of 2007. All figures included in this report are in Reais and were prepared in accordance with Brazilian GAAP (corporate law method). -- Companhia Paranaense's consolidated financial statements present, in addition to the figures of the wholly-owned subsidiaries (COPEL Geracao, COPEL Transmissao, COPEL Distribuicao, COPEL Telecomunicacoes and COPEL Participacoes), those of Compagas, Elejor, UEG Araucaria and Centrais Eolicas do Parana (companies in which Copel retains a majority stake). -- Net operating revenues for the first nine months of 2007: BRL3,988 million -- an increase of 10.0% compared to the same period last year. In the third quarter 2007, net operating revenues were BRL1,414 million. -- Operating income for the first nine months of 2007: BRL1,192 million. In the third quarter 2007, operating income was BRL350 million. -- Net income year-to-date: BRL794 million (BRL2.90 per share). Net income in the third quarter 2007 alone was BRL270 million. -- EBITDA (earnings before interest, taxes, depreciation and amortization): BRL1,511 million in the first nine months of 2007. In the third quarter of 2007, EBITDA was BRL441 million. -- Return on net equity: 12.7% (year to date 2007). -- Total power consumption billed by Companhia Paranaense in the first nine months of 2007 rose 6.0% over the figure for the same period last year. -- Copel Distribuicao's grid market (TUSD), comprising the captive market and all free customers within the company's concession area, grew by 5.1% in the first nine months of 2007, compared to the same period last year. -- During the first nine months of 2007, Companhia Paranaense's shares appreciated at the following rates: CPLE3 (common/Bovespa) = 37.2% CPLE6 (preferred B/Bovespa) = 17.2% ELP (ADR/NYSE) = 36.9% XCOP (preferred B/Latibex) = 26.6% About COPEL Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/-- (NYSE: ELP/LATIBEX: XCOP/BOVESPA: CPLE3, CPLE5, CPLE6) transmits and distributes electricity to more than 3 million customers in the state of Parana and has a generating capacity of nearly 4,600 MW, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitely postponed. In response, COPEL is re-evaluating its corporate structure. The government of Parana controls about 59% of COPEL. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2006, Moody's America Latina upgraded the corporate family rating of Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its Brazilian national scale. Moody's said the rating outlook is stable. This rating action concludes the review process initiated on July 26, 2006. Moody's upgraded these ratings: -- Corporate Family Rating: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); -- BRL500 million Senior Unsecured Guaranteed Debentures due 2007: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); and -- BRL400 million Senior Secured Guaranteed Debentures due 2009: to Ba1 from Ba2 (Global Local Currency) and to Aa1.br from A1.br (Brazilian National Scale). CYRELA BRAZIL: Gross Profit Up 82.1% to BRL180.5 Mln in 3rd Qtr. ---------------------------------------------------------------- Cyrela Brazil Realty S.A. Empreendimentos e Participacoes has announced its results for the first nine months of 2007. The financial and operational information herein, except where otherwise indicated, is presented in BR GAAP and in Brazilian Reais (BRL) and comparisons refer to the first nine months of 2006. Third Quarter 2007 Highlights Launches: BRL1,573.6 million (increase of 132.1%); Pre-Sales Contracts: BRL1,058.2 million (increase of 149.5%); Net Revenue: BRL414.8 million (increase of 78.2%); Gross Profit: BRL180.5 million (increase of 82.1%); Gross Margin: 435% (vs. 42.6% in third quarter 2006); EBITDA: BRL110.4 million (increase of 318.6%); EBITDA Margin: 26.6% (vs. 11.3% in third quarter 2006); Net Margin: 21.7% (vs. 13.4% in third quarter 2006). Based on developments launched in 2004 and 2005, in terms of potential sales value, Cyrela Brazil Realty (Bovespa: CYRE3) is the largest developer of high-end residential buildings in Sao Paulo and Rio de Janeiro, according to the ADEMI and the EMBRAESP, respectively. Sao Paulo and Rio de Janeiro are the two cities that account for the highest percentage of Brazil\u2019s gross domestic product, or GDP (9.4% and 4.3% in 2003, respectively), according to IBGE. The company\u2019s main focus is the development of high-end luxury residential apartments in attractive locations, targeted mainly at upper and upper-middle income customers in the Sao Paulo and Rio de Janeiro metropolitan areas. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2007, Standard & Poor's Ratings Services assigned its 'BB' rating to the 10-year unsecured and unsubordinated notes denominated in Brazilian reals and payable in US dollars, in the aggregate amount of BRL500 million, issued by Cyrela Brazil Realty S.A. Empreendimentos e Participacoes. At the same time, S&P affirmed its 'BB' long-term corporate credit rating and its 'brAA-' Brazil National Scale corporate credit rating on Cyrela, and its 'brAA-' issue rating on the company's seven-year Brazilian reais BRL500 million debentures. S&P said the outlook is stable. Fitch Ratings has assigned a Foreign and Local Currency Issuer Default Rating 'BB' to Cyrela Brazil Realty S.A. Empreendimentos e Participacoes. Fitch also has assigned a rating of 'BB' to its issuance of approximately BRL500 million real-denominated unsecured notes due 2017, with payments of the notes in U.S. dollars based on prevailing exchange rate of Reals per U.S. dollar. Proceeds of the issuance will be used to acquire land and launch new developments, to provide more customer financing, to pay debt, and also for other general corporate purposes. Fitch's outlook is stable. KRATON POLYMERS: Incurs US$754,000 Net Loss in Third Quarter ------------------------------------------------------------ Kraton Polymers LLC posted a net loss of US$754,000 on net revenues of US$290.1 million for the three months ended Sept. 30, 2007, compared to net income of US$11.6 million on net revenues of US$288.1 million for the same period in 2006. Gross Profit for the quarter decreased 25% to US$46 million, as compared to US$62 million in the comparable period of 2006 as higher monomers and plant-restructuring costs offset the benefits of higher revenues. "In the third quarter, we were disappointed by the volume declines we saw in our Paving and Roofing end use market due to lower market demand driven primarily by poor weather in our North American market and lower government spending. Outside of Paving and Roofing however, we were pleased that our core product volume experienced 6% growth versus last year," said George B. Gregory, President and Chief Executive Officer. "The price increases we implemented in the quarter only partially offset variable cost increases. In response to lower margins, we are reviewing further price increases to keep pace with increasing raw material and energy costs and are accelerating cost reduction programs. As always, we remain committed to providing our customers with the highest valued products and service in the industry." Quarterly Business Developments: * Achieved 6% core volume growth outside of Paving & Roofing. * Implemented SBS price increases in Europe and North America. * Finalized actions for closure of the SIS unit at the Pernis, Netherlands plant, generating expected cost savings of US$6-US$9 million annually. * Pre-paid US$40 million of term debt. * Grew innovation-based volumes by 114%. * Generated US$32 million incremental cash from working capital versus 3rd quarter 2006. Based in Houston, Texas, Kraton Polymers LLC -- http://www.kraton.com/-- produces styrenic block copolymers. SBCs are highly-engineered thermoplastic elastomers, which enhance the performance of numerous products by delivering a variety of attributes, including greater flexibility, resilience, strength, durability and processability. Kraton polymers are used in a wide range of applications including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving, roofing, and footwear products. Kraton has the leading position in nearly all of its core markets and is the only producer of SBCs with global manufacturing capability. Its production facilities are located in the United States, Germany, France, The Netherlands, Brazil, and Japan. * * * As reported in the Troubled Company Reporter-Latin America on June 8, 2007, Standard & Poor's Ratings Services lowered its ratings on Kraton Polymers LLC, including the corporate credit and senior secured debt ratings to 'B' from 'B+'. S&P said the outlook is negative. LAZARD LTD: Bruce Bilger To Lead Global Energy ---------------------------------------------- Lazard Ltd. disclosed that Bruce Bilger will join the firm's Financial Advisory business as Chairperson and Head of Global Energy, and will co-head its Southwest Investment Banking region, effective Jan. 1, 2008. Based in Houston, Mr. Bilger is currently with Vinson & Elkins L.L.P., one of the world's leading energy and M&A law firms, as the Head of its Energy Practice Group, a global 400-plus-attorney practice. He also is Co-Head of the law firm's Business and International Section, a 180-plus-attorney corporate and transactions practice. "Power and energy are core global sectors at Lazard," said Bruce Wasserstein, Chairman and Chief Executive Officer of Lazard. "As we continue to bolster our industry teams around the world, we are delighted that Bruce is joining us to help reinforce our strong position in power and energy." "Bruce is renowned for his in-depth knowledge of the energy industry and is widely recognized for providing high-value strategic legal advice in corporate matters as well as mergers and acquisitions," said Kenneth Jacobs, CEO of Lazard North America. "The combination of these skills and his significant financial background, positions him to be highly qualified as an advisor on transactions for Lazard clients." "I am fortunate to have had the opportunity to work with many of the best attorneys in the world at Vinson & Elkins over the past three decades, and having had the platform there to build a practice focused on the energy business," said Mr. Bilger. "Having worked on a number of transactions involving Lazard bankers over the years, I am excited to have this new opportunity to work alongside them, and to provide advice on a financial platform with the world's premier independent investment bank. I especially look forward to working closely with senior Lazard Managing Directors George Bilicic in strengthening the energy expertise in the firm's global Power & Energy sector and Harry Pinson in Houston to help drive Lazard's Southwest Investment Banking business." By joining Lazard, Mr. Bilger will conclude a very successful career with Vinson & Elkins, where he helped build its energy team. In 2006, Vinson & Elkins' energy practice lawyers handled over 2,000 matters with a collective value of more than US$187 billion. Mr. Bilger's practice consisted primarily of domestic and international business transactions, including mergers and acquisitions, international infrastructure development projects, project finance, and other corporate transactions, particularly in the energy industry. "Bruce and I started at the firm together and have been close friends and colleagues for 30 years," said Joe Dilg, Managing Partner of Vinson & Elkins. "He will be sorely missed but has left a legacy of many talented energy specialists at Vinson & Elkins. We congratulate Bruce and wish him every success in this next stage of his illustrious career." During his tenure at Vinson & Elkins, Mr. Bilger has led the teams handling many of the firm's most significant energy industry transactions, including Duke Energy's US$8 billion cross-border acquisition of Canada's Westcoast Energy, Enterprise Products Partners' US$13 billion merger with El Paso's master limited partnership GulfTerra, and the recently completed US$45 billion acquisition of TXU by Kohlberg Kravis Roberts, TPG and other investors. He is active in the Greater Houston Partnership and other civic and charitable organizations in the Houston community. Mr. Bilger received combined MBA and JD degrees from the University of Virginia and a BA from Dartmouth College. About Lazard Ltd. 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's consolidated balance sheet at Sept. 30, 2007, showed US$3.51 billion in total assets, US$3.54 billion in total liabilities, and US$49.0 million minority interest, resulting in a US$74.5 million total shareholders' deficiency. REALOGY CORP: Hires Richard Smith as Chief Executive Officer ------------------------------------------------------------ Realogy Corporation has appointed Richard A. Smith, as its chief executive officer, succeeding Henry R. Silverman in accordance with the Company's previously announced succession plan. Mr. Smith will now serve as Realogy's president and CEO. Mr. Silverman will become the non-executive chairman of Realogy's board of directors. The leadership transition will take effect immediately. Headquartered in Parsippany, New Jersey, Realogy Corporation (NYSE: H)-- http://www.realogy.com/-- is real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world-renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company operates in Australia, Brazil and France. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Standard & Poor's Ratings Services has lowered its ratings on Realogy Corp.; the corporate credit rating was lowered to 'B' from 'B+'. S&P said the rating outlook is stable. SUN MICROSYSTEMS: Enters into Definitive Pact Acquiring Vaau ------------------------------------------------------------ Sun Microsystems Inc. has entered into a definitive agreement with Vaau Inc. pursuant to which Sun will acquire Vaau, a premier provider of Enterprise Role Management and identity compliance solutions. As regulatory requirements continue to tighten, enterprises must find new ways to reduce auditing costs. By leveraging ERM, organizations can reduce these costs by discovering, defining, and managing user access with a common vocabulary that links business and IT. Vaau's RBACxTM solution combined with the provisioning and identity auditing capabilities of Sun's identity management portfolio powered by the Solaris(TM) 10 Operating System will enable organizations to streamline the provisioning process and significantly reduce the cost of auditing. "This announcement further underscores Sun's leadership in the high growth identity audit and compliance categories, adding both a market-leading solution and proven implementation services to our portfolio," said Jim McHugh, vice president of Marketing, Software Infrastructure, Sun Microsystems. "As a leader in enterprise role management and identity certification, Vaau provides an integrated set of capabilities to automate and enforce internal security controls that will further enhance Sun's ability to provide comprehensive solutions to our customers across the full spectrum of governance, risk and compliance." Recognized as a global leader in identity management, Sun manages billions of user identities worldwide for the world's largest companies spanning a variety of industries. The definitive agreement to acquire Vaau Inc. is subject to customary closing conditions and is expected to be completed during Sun's fiscal third quarter 2008, which begins on Dec. 31, 2007. The terms of the deal were not disclosed as the transaction is immaterial to Sun's earnings per share. About Vaau Inc. Headquartered in Torrance, California, Vaau Inc. -- http://www.vaau.com/-- is a premier provider of enterprise role management and identity compliance solutions for global Fortune 500 companies. Vaau's award-winning solutions and methodology enable organizations to proactively enforce internal security control policies and automate critical identity management processes. Through strategic relationships with identity management vendors such as Computer Associates, Hewlett-Packard, IBM, Novell, Oracle, and Sun Microsystems, Vaau offers a unique, integrated user-management solution that includes role engineering, role management, and identity compliance. Vaau's flagship solution, RBACxTM, allows enterprises to manage the lifecycle of identities from role definition to the ongoing and continuous process of auditing and certifying users' accessibility rights to company resources and information. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, among others. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. * BRAZIL: Moody's Says New Oil Find Good for Petrobras' Future -------------------------------------------------------------- Moody's Investors Service has commented that the discovery of major new oil and gas discovery offshore by Brazilian state-run oil firm Petroleo Brasileiro S.A. bodes well for the company's future reserve position and upstream production and development prospects. However, it will have no immediate impact on Petrobras's A2 global local currency rating or Baa1 foreign currency bond rating, or on the baseline credit assessment of 8.0 that underpins those ratings. Petrobras has announced the discovery of an estimated 5.0 to 8.0 billion BOE oil and gas field offshore in the Tupi area of the Santos Basin in Brazil. The discovery is part of a frontier area in the ultra deepwater. The range of the field estimate represents recoverable reserves, which the company has characterized as light oil and natural gas. If the field proves to be as large as indicated by the first wells drilled, it would rank as a world class hydrocarbon discovery that would significantly increase Petrobras's current estimated 11.4 billion BOE of proved reserves as well as the volumes and value of its production profile, which is currently about 2.3 million BOE/day. Moody's notes, however, that Petrobras, which is the field operator with a 65% stake, is still in an early post-discovery phase. The discovery will require further exploration, delineation of the field extent and, in due course, a determination of commerciality, capital allocation, and a development plan, all relative to the rest of Petrobras's upstream portfolio. No proved reserves have been booked. Consequently, the discovery per se will not affect Moody's near- term outlook for Petrobras's baseline credit assessment or its global local currency and foreign currency bond ratings. Moody's will continue to monitor the progress of the discovery to determine its potential impact on Petrobras's captial spending, reserves and credit profile in the medium-to-long- term. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp- - was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * BRAZIL: Petrobras Appeals for Gas Supply Resumption Injunction ---------------------------------------------------------------- A spokesperson for Brazilian state-owned oil firm Petroleo Brasileiro SA aka Petrobras told Business News Americas that the company has filed an appeal on the injunction that forced it to resume natural gas supplies above contracted levels in Rio de Janeiro. BNamericas relates that Petrobras cut gas supplies to Rio de Janeiro distributor CEG in the week starting Oct. 29, 2007. The company was heeding to grid operator ONS's request to divert the natural gas supply to generators. The injunction in Rio de Janeiro made Petrobras stop supplying enough natural gas to fire a 250-megawatt generator, according to the report. The spokesperson commented to BNamericas, "Petrobras argues CEG has been purchasing natural gas volumes from Petrobras way above levels agreed upon by both companies." BNamericas notes that Petrobras will try to overturn the injunction in a court in Rio de Janeiro so it can ensure gas supplies to thermo plants. The report says that Petrobras usually distributes 5.1 million cubic meters per day to CEG. According to Petrobras, it is selling an additional 2.4 million cubic meters per day to the distributor. Petrobras wants to lessen gas supply to CEG by 1.5 million cubic meters a day. CEG disagreed with Petrobras' gas supply reduction in October, saying that the move was "arbitrary" and "unilateral," BNamericas states. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * BRAZIL: Petrobras To Start Running Peroa Phase 2 in 2008 ---------------------------------------------------------- Brazilian state-owned oil firm Petroleo Brasileiro SA aka Petrobras wants to begin operating the second phase of its Peroa gas production project in Espirito Santo basin in November 2008, Business News Americas reports. Petrobras Chief Financial Officer Almir Barbassa told the press that phase two will add some five million cubic meters per day of gas to the firm's output through three producing wells. BNamericas relates that Peroa's first phase is "underway" with three wells producing a total of three million cubic meters per day of natural gas. Meanwhile, Petrobras would get its first gas in December 2008 from its Cidade de Sao Mateus Floating Production, Storage and Offloading vessel in Espirito Santo, BNamericas says. Mr. Barbassa told BNamericas that Peroa will have production capacity of about 10 million cubic meters a day. BNamericas notes that Petrobras will also begin ramping up these FPSO vessels in time to reach full capacity in up to six months: -- P-52, -- P-54, and -- Cidade de Vitoria. Once it reaches full capacity, P-52 will operate in the Golfinho offshore field, Campos basin, with 100,000 barrels per day production, the report says. According to BNamericas, P-54 will operate in the Roncador offshore field, Campos basin, with 180,000-barrel-per-day capacity. Cidade de Vitoria will operate in Roncador with 180,000-barrel-per-day capacity. Platforms P-51 and P-53 and the Cidade de Niteroi FPSO will start operating in 2008. P-51, P-53 and the Cidade de Niteroi FPSO will operate in the Campos basin's Marlim Sul, Marlim Leste and Jabuti fields respectively. The 180,000-barrel-a-day capacity P-51 platform will hit first oil in June 2008. The 180,000-barrel-per-day P-53 and the 100,000-barrel-per-day Cidade de Niteroi will start producing in December 2008, BNamericas states. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. =========================== C A Y M A N I S L A N D S =========================== 6TH AVENUE: Proofs of Claim Filing Deadline Is Nov. 29 ------------------------------------------------------ 6th Avenue Funding 2007-1, Ltd.'s creditors are given until Nov. 29, 2007, to prove their claims to Chris Watler and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. 6th Avenue's shareholders agreed on Oct. 17, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Chris Watler Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands ATON LIMITED: Proofs of Claim Filing Ends on Nov. 29 ---------------------------------------------------- Aton Limited's creditors are given until Nov. 29, 2007, to prove their claims to Phillip Hinds and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Aton's shareholders agreed on Oct. 17, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Phillip Hinds Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands BIG HAND: Proofs of Claim Filing Is Until Nov. 29 ------------------------------------------------- Big Hand Funding Corporation's creditors are given until Nov. 29, 2007, to prove their claims to Wendy Ebanks and Joshua Grant, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Big Hand's shareholder agreed on Oct. 9, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Wendy Ebanks Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands BOMBAY CO: Taps DJM Realty to Dispose U.S. Retail Store Leases -------------------------------------------------------------- The Bombay Company, Inc., has selected DJM Realty, a provider of strategic rea