T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, November 16, 2007, Vol. 8, Issue 227 Headlines A R G E N T I N A BRILLOLAM SA: Proofs of Claim Verification Deadline Is Dec. 11 FIDEICOMISO FINANCIERO: Moody's Puts B1 Global Rating on Debts FRIO MUNDIAL: Proofs of Claim Verification Ends on Dec. 28 LONGDAY SA: Proofs of Claim Verification Deadline Is Dec. 20 RED HAT: Extends Pact w/ Hyperic on Open Source Systems Mgmt. REPES SA: Proofs of Claim Verification Is Until March 19 TOP CELULAR: Proofs of Claim Verification Deadline Is March 14 WENDY'S INT'L: Gets Lower Purchase Proposal from Triarc Cos. B E R M U D A AIRCASTLE BERMUDA: Proofs of Claim Filing Is Until Today AIRCASTLE BERMUDA HOLDING: Proofs of Claim Filing Ends Today AIRCASTLE BERMUDA HOLDING VIII: Claims Filing Is Until Today AIRCASTLE BERMUDA HOLDING IX: Claims Filing Deadline Is Today AMSTELVEEN FSC: Proofs of Claim Filing Deadline Is Today BD MANAGEMENT: Proofs of Claim Filing Is Until Today CYRUS REINSURANCE: S&P Assigns Low B Ratings on Bank Loans FOUNTAINS FSC: Proofs of Claim Filing Deadline Is Today MSD LATINA: Proofs of Claim Filing Deadline Is Today NIGHT WATCH: Proofs of Claim Filing Ends Nov. 21 OPTIMA SHORT: Proofs of Claim Filing Ends Today PRO-ACTIVE MANAGEMENT: Wind-Up Petition Hearing Set for Today REGGA INSURANCE: Proofs of Claim Filing Ends Today STENA CARRON: Proofs of Claim Filing Deadline Is Today TREEMONT LIFE: Proofs of Claim Filing Is Until Nov. 21 TREMONT SERVICES: Proofs of Claim Filing Deadline Is Nov. 21 ZEN LIMITED: Proofs of Claim Filing Deadline Is Nov. 21 B R A Z I L ASPEN TECH: Hires James Hintlian To lead Pharmaceutical Biz Unit COMPANHIA SIDERURGICA: Earns US$395.6 Million in Third Quarter DELPHI CORP: To Receive Labor Payments from GM Through 2015 GENERAL MOTORS: Signs 2007 UAW-GM National Labor Contract GENERAL MOTORS: To Make Labor Payments to Delphi Through 2015 HEXION SPECIALTY: Posts US$2-Mln Net Loss in 2007 Third Quarter * BRAZIL: Moody's Cuts Series 2002-2 Senior Certificate Ratings C A Y M A N I S L A N D S ANIMI OFFSHORE: Proofs of Claim Filing Deadline Is Nov. 27 ANIMI OFFSHORE FUND: Proofs of Claim Filing Is Until Nov. 27 ANIMI MASTER: Proofs of Claim Filing Is Until Nov. 27 ANIMI MASTER FUND: Proofs of Claim Filing Ends on Nov. 27 ANN FUNDING: Proofs of Claim Filing Deadline Is Nov. 28 EM SPECIAL: Proofs of Claim Filing Deadline Is Nov. 29 FIRST DORMY: Proofs of Claim Filing Ends on Nov. 29 GLOBAL AIR: Proofs of Claim Filing Deadline Is Nov. 29 GLOBAL AIR MOV'T: Proofs of Claim Filing Is Until Nov. 29 MESA 2002-2: Proofs of Claim Filing Deadline Is Nov. 29 SCOTTISH RE: Declares US$0.4531 Per Preferred Share Dividend C H I L E CLAXSON INTERACTIVE: Hikes Tender Offer Price to US$12.35/Share GMAC LLC: Fitch Puts BB Issuer Default Rating on Watch Negative C O L O M B I A CHIQUITA BRANDS: Faces Colombian Lawsuit Over Terrorist Payments C U B A NASH FINCH: Board Approves One Million Share Repurchase Program NASH FINCH: Earns US$15.4 Million in Quarter Ended October 6 D O M I N I C A N R E P U B L I C AES CORP: To Complete Cash Tender Offer for Senior Notes E L S A L V A D O R MILLICOM INT'L: Moody's Lifts Corporate Family Rating to Ba2 H O N D U R A S SBARRO INC: Reports US$503,000 Net Income in Qtr. Ended Sept. 30 * HONDURAS: Police To Arrest Hondutel Head for Authority Abuse J A M A I C A MIRANT CORP: Moody's Reviews Ratings for Possible Upgrade M E X I C O ATARI INC: Streamlines Operations, Establishes Business Plan FIRST DATA: Incurs US$2-Mln Net Loss in Quarter Ended Sept. 30 FEDERAL MOGUL: District Court Affirms Chapter 11 Plan GRUPO MEXICO: Safety Violations at Cananea May Cause Disease MEGA BRANDS: Moody's Reviews Ratings for Possible Downgrade REMY WORLDWIDE: Files Supplement to Prepackaged Chapter 11 Plan REMY WORLDWIDE: Plan Confirmation Hearing Set for November 20 N I C A R A G U A DOLE FOOD: Judge Chaney Says Workers Can Seek Punitive Damages INFINITY ENERGY: Earns US$3.2 Million in 3rd Qtr. Ended Sept. 30 XEROX CORP: Inks Three-Year Collaborative Deal with NC State P A N A M A SOLO CUP: Earns US$5.4 Million in Quarter Ended Sept. 30 P U E R T O R I C O MACY'S INC: Earns US$33 Million in Third Quarter Ended Nov. 3 MAXXAM INC: Incurs US$10.5-Mln Net Loss in Third Qtr. of 2007 MYLAN INC: S&P Downgrades Corp. Credit Rating to BB- from BB+ V E N E Z U E L A ARVINMERITOR INC: Posts US$62 Million Net Loss in Fourth Quarter PETROLEOS DE VENEZUELA: Venture with Chinese Co. Bags Contract PETROLEOS DE VENEZUELA: May Suffer Fin'l Crisis, Report Says SHAW GROUP: Expects To File 2007 Annual Report by Mid-December - - - - - ================= A R G E N T I N A ================= BRILLOLAM SA: Proofs of Claim Verification Deadline Is Dec. 11 -------------------------------------------------------------- Jacobo Beker, the court-appointed trustee for Brillolam S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 11, 2007. Mr. Beker will present the validated claims in court as individual reports on March 3, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Brillolam 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 Brillolam's accounting and banking records will be submitted in court on April 17, 2008. Mr. Beker is also in charge of administering Brillolam's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jacobo Beker Jeronimo Salguero 2244 Buenos Aires, Argentina FIDEICOMISO FINANCIERO: Moody's Puts B1 Global Rating on Debts -------------------------------------------------------------- Moody's Latin America has assigned a rating of Aa3.ar (Argentine National Scale) and of B1 (Global Scale, Local Currency) to the debt securities of Fideicomiso Financiero SECUPYME XXVIII issued by Banco de Valores S.A. -- acting solely in its capacity as Issuer and Trustee. The rated securities are backed by a pool of bills of exchange signed by agricultural producers in Argentina. The bills of exchange are guaranteed by Garantizar S.G.R., which is a financial guarantor in Argentina. Garantizar has a rating of Aa3.ar (Argentine National Scale) and of B1 (Global Scale, Local Currency). The rating assigned to this transaction is primarily based on the rating of Garantizar. Therefore, any future change in the rating of the guarantor may lead to a change in the rating assigned to this transaction. The rating addresses the payment of interest and principal on or before the legal final maturity date of the securities. Banco de Valores S.A. (Issuer and Trustee) issued one class of debt securities denominated in US dollars. The rated securities will bear a 7.5% annual interest rate. The rated securities will be repaid from cash flow arising from the assets of the Trust, constituted by a pool of fixed rate bills of exchange denominated in US dollars signed by agricultural producers and guaranteed by Garantizar S.G.R. The bills of exchange will bear the same interest rate as the rated securities. Although the rated securities (and the bills of exchange) are denominated in US dollars, they are payable in Argentine pesos at the exchange rate published by Banco de la Nacion Argentina as of the day prior to the date that the funds are initially deposited into the Trust account. As a result, the dollar is used as a currency of reference and not as a mean of payment. For that reason, the transaction is considered to be denominated in local currency. If, eight days before the final maturity date, the funds on deposit in the trust account are not sufficient to make payments to investors, the Trustee is obligated to request Garantizar to make payment under the bills of exchange. Garantizar, in turn, will have five days to make this payment into the trust account. Under the terms of the transaction documents, the trustee has up to two days to distribute interest and principal payments to investors. Interest on the securities will accrue up to the date on which the funds are initially deposited by either Garantizar, the exporter, or the individual producers into the Trust account. FRIO MUNDIAL: Proofs of Claim Verification Ends on Dec. 28 ---------------------------------------------------------- Jacobo Michan, the court-appointed trustee for Frio Mundial S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 28, 2007. Mr. Michan will present the validated claims in court as individual reports on March 13, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Frio Mundial 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 Frio Mundial's accounting and banking records will be submitted in court on April 30, 2008. Mr. Michan is also in charge of administering Frio Mundial's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jacobo Michan Paraguay 2492 Buenos Aires, Argentina LONGDAY SA: Proofs of Claim Verification Deadline Is Dec. 20 ------------------------------------------------------------ Mirta Noemi Andrada, the court-appointed trustee for Longday S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 20, 2007. Ms. Andrada will present the validated claims in court as individual reports on March 10, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Longday 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 Longday's accounting and banking records will be submitted in court on April 24, 2008. Ms. Andrada is also in charge of administering Longday's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Mirta Noemi Andrada Avenida Corrientes 676 Buenos Aires, Argentina RED HAT: Extends Pact w/ Hyperic on Open Source Systems Mgmt. ------------------------------------------------------------- Red Hat and Hyperic Inc. have extended their agreement to collaborate on the development of a common systems management platform. Development will continue under an open source model. For years, the JBoss Operations Network team has been developing code on the Hyperic platform. Red Hat will be contributing its updates and enhancements to this new open source project. Both companies will work to maintain, govern and extend management capabilities within the new open source systems management platform project. Additionally, Hyperic and Red Hat will work jointly to include this base in both future Hyperic and Red Hat systems management products. "Hyperic is committed to improving the manageability of technology everywhere," said Javier Soltero, CEO of Hyperic. "This relationship furthers our mission by enabling ISV's, hardware vendors and users to contribute to and extend our base platform with tight management of any network, desktop, server, OS, DB, Middleware or application technology." In keeping with the open source development model, Red Hat and Hyperic will share an open source code repository hosted by Hyperic. The community will have full access to the code base via the GPL license. Red Hat and Hyperic will collaborate on a development and governance roadmap for the common technology that will enable both companies to produce innovative solutions for systems management. "The combination of Red Hat and Hyperic open source technology is more than the sum of its parts," said Craig Muzilla, vice president, Middleware Products at Red Hat. "Now, companies have access to a powerful blend of our management depth for the Red Hat platform, and an extended community building from the same core technology." About Hyperic Inc. Hyperic -- http://www.hyperic.com/-- provides the only open source systems management software purpose-built for the fast- moving online services market. Hyperic's software provides unprecedented cross-stack visibility and helps enterprises to pinpoint, correct and prevent problems at every layer -- including hardware, networks, virtualization, middleware and applications. Hyperic's technology-neutral approach supports innovation by enabling manageability across technologies in the market today as well as those of tomorrow. Hyperic's software manages online services businesses of all sizes, including hi5 Networks, eHarmony.com, MyNewPlace.com and more. Founded in 2004 and headquartered in San Francisco, California, Hyperic is a private company funded by Accel Partners and Benchmark Capital. 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. REPES SA: Proofs of Claim Verification Is Until March 19 -------------------------------------------------------- Jose Cicocioco, the court-appointed trustee for Repes SA's bankruptcy proceeding, verifies creditors' proofs of claim until March 19, 2008. Mr. Cicocioco will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 16 in Buenos Aires, with the assistance of Clerk No. 32, 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 Repes 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 Repes' accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Cicocioco is also in charge of administering Repes' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Repes SA Miralla 446 Buenos Aires, Argentina The trustee can be reached at: Jose Cicocioco Vidal 3375 Buenos Aires, Argentina TOP CELULAR: Proofs of Claim Verification Deadline Is March 14 -------------------------------------------------------------- Alfredo Raul Badaracco, the court-appointed trustee for Top Celular SRL's bankruptcy proceeding, verifies creditors' proofs of claim until March 14, 2008. Mr. Badaracco will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 3, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Top Celular and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Top Celular's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Badaracco is also in charge of administering Top Celular's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Top Celular SRL Salvador Maria del Carril 2189 Buenos Aires, Argentina The trustee can be reached at: Alfredo Raul Badaracco Esmeralda 980 Buenos Aires, Argentina WENDY'S INT'L: Gets Lower Purchase Proposal from Triarc Cos. ------------------------------------------------------------ At the request of the Board of Directors of Wendy's International Inc. and in connection with the company's sales process, Triarc Companies Inc. has submitted a proposal to purchase 100% of the food chain's equity with a proposed purchase price below the valuation range Triarc had indicated it would be prepared to offer in its July 30, 2007 letter. As reported in the Troubled Company Reporter on Aug. 1, 2007, Nelson Peltz, chairman of Triarc, asked the special committee working on Wendy's sale to consider his company's purchase offer. In his letter, Mr. Peltz dislosed that Triarc's offer could range from $37 to $41 per share, which could increase further depending on due diligence results. In its Nov. 12, 2007 proposal, Triarc indicated that the consideration would be primarily in the form of cash with a portion to be paid in the form of Triarc equity. Triarc's proposal is subject to the receipt of satisfactory financing commitments, completion of due diligence, and the approval by Triarc's Board of Directors of the final terms of the transaction, including the final form of the merger agreement and all other definitive agreements to be entered into in connection with the transaction. The Troubled Company Reporter previously disclosed citing the Wall Street Journal that among the entities interested in buying the company is Cedar Enterprises Inc., a Columbus, Ohio-based franchisee which owns 134 Wendy's restaurants. A group formed by Fidelity National Financial Inc., Thomas H. Lee Partners LP, Oaktree Capital Management LP, and Ares Management LLC also joined to bid for the company. Last week, Fidelity National decided to put off its buyout offer for the fastfood chain, according to a source cited by The Wall Street Journal. According to WSJ's source, Fidelity National pointed to the poor terms of a staple financing recently disclosed by Wendy's banks as the reason why it is not going forward with its bid. Earlier, an unnamed source told WSJ that the sale of Wendy's could be affected by a financing package its lenders -- J.P. Morgan Chase & Co. and Lehman Brothers Holdings Inc. -- provided. The package, which is anchored by a securitization of the royalty fees franchisees pay Wendy's, allows the lenders to back out should financing conditions worsen, the unnamed source said. Calling the financing as "highly conditional," the unnamed source believes such term could lower bids or make bidders think twice about proceeding. Wendy's decided to sell the business in June 2007 to "minimize disruption to the company and its operations." About Triarc Companies Inc. Headquartered in New York City, Triarc Companies Inc. (NYSE:TRY.B/TRY) -- http://www.triarc.com/-- is a holding company and, through its subsidiaries, is currently the franchisor of the Arby's restaurant system and the owner of approximately 94% of the voting interests, 64% of the capital interests and at least 52% of the profits interests in Deerfield & Company LLC, an asset management firm. The Arby's restaurant system is comprised of approximately 3,600 restaurants, of which, as of Dec. 31, 2006, 1,061 were owned and operated by the company's subsidiaries. Deerfield & Company LLC, through its wholly owned subsidiary, Deerfield Capital Management LLC, is a Chicago-based asset manager offering a diverse range of fixed income and credit- related strategies to institutional investors with about US$13.2 billion under management as of Dec. 31, 2006. Headquartered in Dublin, Ohio, Wendy's International Inc. (NYSE:WEN) -- http://www.wendysintl.com/-- and its subsidiaries operate, develop, and franchise a system of quick service and fast casual restaurants in the United States, Canada, Mexico, Argentina, among others. * * * As reported in the Troubled Company Reporter-Latin America on June 21, 2007, Moody's Investors Service lowered all ratings of Wendy's International, Inc. and placed all ratings on review for further possible downgrade. Affected ratings include the company's Ba2 corporate family rating which was lowered to Ba3 and its (P)B1 preferred stock shelf rating which was lowered to (P)B2. Additionally, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Wendy's International Inc. to 'BB-' from 'BB+'. All ratings remain on CreditWatch with negative implications, where they were placed on April 26, 2007. ============= B E R M U D A ============= AIRCASTLE BERMUDA: Proofs of Claim Filing Is Until Today -------------------------------------------------------- Aircastle Bermuda Holding VI Limited's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Aircastle Bermuda's shareholder agreed on Nov. 1, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda AIRCASTLE BERMUDA HOLDING: Proofs of Claim Filing Ends Today ------------------------------------------------------------ Aircastle Bermuda Holding VII Limited's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Aircastle Bermuda's shareholder agreed on Nov. 1, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda AIRCASTLE BERMUDA HOLDING VIII: Claims Filing Is Until Today ------------------------------------------------------------ Aircastle Bermuda Holding VIII Limited's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Aircastle Bermuda's shareholder agreed on Nov. 1, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda AIRCASTLE BERMUDA HOLDING IX: Claims Filing Deadline Is Today ------------------------------------------------------------- Aircastle Bermuda Holding IX Limited's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Aircastle Bermuda's shareholder agreed on Nov. 1, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda AMSTELVEEN FSC: Proofs of Claim Filing Deadline Is Today -------------------------------------------------------- Amstelveen FSC Ltd.'s creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Amstelveen FSC's shareholders agreed on Nov. 2, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda BD MANAGEMENT: Proofs of Claim Filing Is Until Today ---------------------------------------------------- BD Management Limited's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. BD Management's shareholders agreed on Oct. 26, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda CYRUS REINSURANCE: S&P Assigns Low B Ratings on Bank Loans ---------------------------------------------------------- Standard & Poor's Ratings Services has assigned these bank loan ratings to Cyrus Reinsurance II Ltd.'s (Cyrus II) three proposed bank loans totaling US$105 million: -- Senior secured term loan (senior debt, US$65 million, modeled probability of default of 70 basis points (bps), cushion of 15%) rated 'BB+', -- Senior subordinated secured term loan (senior subordinated debt, US$20 million, 235 bps, 40%) rated 'B', and -- Junior subordinated secured term loan (junior subordinated debt, US$20 million, 661 bps, 18%) rated 'B-'. "The different ratings reflect differences in the modeled probability of the tranches attaching and the application of a cushion to consider the possibility of modeling error and other risks," said S&P's credit analyst Mark Davidson. "The cushion is a critical element to our rating process for sidecars and other forms of indemnified property catastrophe risk," Mr. Davidson added. "The cushion equals the percentage difference between the catastrophe losses associated with the modeled probability of default and the catastrophe losses at the point on Cyrus II's aggregate exceedance probability (AEP) curve that correspond to the maximum adjusted probability of default that S&P allows for the assigned rating." The cushion addresses the potential for modeling error, nonmodeled losses, variances between the modeled portfolio and the actual portfolio, deviations in assumptions for premiums and expenses, investment risk, and credit risk. Adverse outcomes in any of these areas would lower the catastrophe losses needed to cause a default. For example, if nonmodeled losses are US$5 million above the expectations in the sidecar's business plan, the catastrophe losses needed to cause a default would be US$5 million less than implied by the modeled output based on the sidecar's business plan. The cushion will vary by transaction. Although there are no formal restrictions, S&P believes most sidecars' debt issuances will have cushions between 15% and 30%. The cushion for securitization of indemnified property catastrophe risk through an excess of loss reinsurance agreement, often referred to as indemnified cat bonds or cat loans, will usually be less than 15% because risks other than modeled losses and modeling error are mitigated through the catastrophe bond or catastrophe loan's structure. The cushions applied to Cyrus II are moderately less than the cushion S&P would assign to a typical sidecar. Cyrus II's cushions are at the lower end of this range due to their higher modeled probability of attachment and XL Re Ltd. and XL Re Europe Ltd.'s (collectively, XL Re; (A+/Stable/--) strong geographic diversification. S&P believes the catastrophe modeling software is more precise for less remote events because the lack of historical data for extremely remote events makes it very difficult to assess their frequency and severity. XL Re's portfolio is fairly balanced between exposures in the U.S. and the rest of the world. Consequently, the modeling software indicates that a thousand-year event from any peril would not cause the senior tranche to attach. Cyrus II is a limited-life, special-purpose Class 3 reinsurance company domiciled in Bermuda that will assume reinsurance (retro) risks from XL Re. XL Re will cede 10% of the premium and losses from most of its property catastrophe business to Cyrus II through a policy attaching quota share reinsurance treaty. The agreement covers policies starting between Jan. 1, 2008, and July 1, 2008, inclusive. Cyrus II will continue reinsuring XL Re until all covered policies cancel or expire. The loans will be on risk only for events occurring between Jan. 1, 2008 and July 1, 2009. Cyrus II will deposit the majority of the proceeds from its debt into a trust, and the trustee will ensure proper order of payments. The trust will also include funds raised from the issuance of common stock by Cyrus Reinsurance II Holdings SPC, the holding company of Cyrus II. Capital cannot be released from the trust before Sept. 1, 2009, except to pay claims and interest expense. Cyrus Reinsurance Holdings SPC is majority-owned by investment funds affiliated with Highfields Capital Management LP. Cyrus Reinsurance Limited is a Class 3 Bermuda reinsurer that has entered into a collateralized quota share reinsurance treaty with its sole clients, XL Re Ltd. and XL Re Europe, both subsidiaries of XL Capital Ltd. Cyrus Re will assume up to 50% of certain lines of property catastrophe reinsurance and retrocession business underwritten by its clients for the 2006 and 2007 underwriting years (commencing Jan. 1, 2006 through and including July 1, 2007), subject to adjustment under certain conditions. The current quota share cession percentage is 35%. FOUNTAINS FSC: Proofs of Claim Filing Deadline Is Today ------------------------------------------------------- Fountains FSC. Ltd's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Fountains FSC.'s shareholder agreed on Oct. 2, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda MSD LATINA: Proofs of Claim Filing Deadline Is Today ---------------------------------------------------- MSD Latina America Services Ltd's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. MSD Latina's shareholders agreed on Oct. 26, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda NIGHT WATCH: Proofs of Claim Filing Ends Nov. 21 ------------------------------------------------ Night Watch FSC Ltd.'s creditors are given until Nov. 21, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Night Watch's shareholder agreed on Nov. 2, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda OPTIMA SHORT: Proofs of Claim Filing Ends Today ----------------------------------------------- The Optima Short Fund Limited's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. The Optima Short's shareholder agreed on Nov. 2, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda PRO-ACTIVE MANAGEMENT: Wind-Up Petition Hearing Set for Today ------------------------------------------------------------- The Supreme Court of Bermuda will hear the petition for the wind-up of Pro-Active Management Services Ltd. on Nov. 16, 2007, at 9:30 a.m. Michael E. Smith of Smith & Co., Barristers & Attorneys -- a creditor of Pro-Active Management -- presented the wind-up petition on Oct. 16, 2007, before the Supreme Court. Any creditor or contributory of Pro-Active Management who wants to support or oppose the making of an order on the petition may attend the hearing by himself or through his counsel. Those interested in attending the hearing were required to send by post a notice in writing of his intention to do so by 4:00 p.m. on Nov. 15, 2007, to the attorneys for the petitioner: Smith & Co. 95 Front Street, Hamilton Bermuda Creditors or contributories of Pro-Active Management may ask a copy of the petition upon payment of the regulated charge to Smith & Co. REGGA INSURANCE: Proofs of Claim Filing Ends Today -------------------------------------------------- Regga Insurance Limited's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Regga Insurance's shareholders agreed on Nov. 1, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda STENA CARRON: Proofs of Claim Filing Deadline Is Today ------------------------------------------------------ Stena Carron Limited's creditors are given until Nov. 16, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Stena Carron's shareholders agreed on Oct. 26, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda TREEMONT LIFE: Proofs of Claim Filing Is Until Nov. 21 ------------------------------------------------------ Tremont Life Holdings, Ltd.'s creditors are given until Nov. 21, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Tremont Life's shareholders agreed on Nov. 2, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda TREMONT SERVICES: Proofs of Claim Filing Deadline Is Nov. 21 ------------------------------------------------------------ Tremont Services Ltd.'s creditors are given until Nov. 21, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Tremont Services' shareholders agreed on Nov. 2, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda ZEN LIMITED: Proofs of Claim Filing Deadline Is Nov. 21 ------------------------------------------------------- Zen Limited's creditors are given until Nov. 21, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Zen's shareholders agreed on Oct. 31, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda =========== B R A Z I L =========== ASPEN TECH: Hires James Hintlian To lead Pharmaceutical Biz Unit ---------------------------------------------------------------- Aspen Technology Inc. it has named James Hintlian to launch a new business unit focused on the Pharmaceuticals industry. This move signals AspenTech's commitment to build on its emerging presence in Pharmaceuticals, and extend the company's core markets beyond Energy and Chemicals. Mr. Hintlian will report directly to AspenTech president and Chief Executive Officer Mark Fusco. "More diverse types of process industries are realizing the benefits of aspenONE integrated process optimization solutions, and we see tremendous opportunities to expand our penetration into the pharmaceuticals market," said Mark Fusco, president and CEO, AspenTech. "With Jamie's breadth of experience, insight and passion for the industry, he will be extremely valuable as the leader of our Pharmaceuticals strategy. With this focus, we will also better align our resources and products to create stronger partnerships with our Pharmaceuticals customers." Mr. Hintlian will be responsible for developing and executing AspenTech's pharmaceuticals business, product and go-to-market strategies, building on AspenTech's existing relationships with 13 of the world's top 15 Pharmaceutical companies. AspenTech solutions for leading pharmaceutical companies already include the following aspenONE deployments: -- Enabling a multibillion dollar pharmaceutical company to transform its process development operations across the development work flow, and into commercial manufacture. -- Providing a global bio-science manufacturer with the capability to efficiently schedule a highly complex U.S. manufacturing operation, driving plant utilization and customer delivery performance metrics. -- Delivering significant manufacturing performance improvements and cost reductions for one of the world's largest API (Active Pharmaceutical Ingredient) manufacturing operations. Mr. Hintlian joins AspenTech from Accenture, where for several years he was a senior partner leading the Global Health and Life Sciences Supply Chain Practice. In his career at Accenture, and previously at Data General, Hintlian led several innovation initiatives. At Accenture, he developed the first fully operational supply chain using RFID (radio frequency identification) to support drug pedigree and anti-counterfeiting programs, from manufacturer to retail pharmacy. Mr. Hintlian is also a frequent speaker at industry association events -- this week, in his first days at AspenTech, he was a special invited commentator at the AMR Research annual "Healthcare Exchange" conference. Mr. Hintlian is also a member of the editorial board for Supply Chain Management Review. He holds both an M.S. and a B.S. in Operations Research from Cornell University, where he also earned his MBA. "I look forward to working with a strong AspenTech team as we bring new process optimization innovations to the Pharmaceuticals industry," said Mr. Hintlian. "AspenTech's ability to integrate core processes from drug discovery through supply chain execution is unique, and supports critical manufacturer programs aimed at improving R&D productivity, design for quality and cost effective manufacturing execution." Mr. Hintlian continued, "By harnessing the power of AspenTech's unique process optimization software, pharmaceutical companies can focus on the management of value, as opposed to assets, throughout the product lifecycle. We will build on our successes by aligning AspenTech pharma solutions with emerging industry needs, in particular embracing the initiatives of QbD (Quality by Design), DfM (Design for Manufacture), and Operational & Process Excellence from lab floor to shop floor to top floor." About Aspen Technology Based in Cambridge, Massachusetts, Aspen Technology Inc. (Nasdaq: AZPN) -- http://www.aspentech.com/-- provides software and professional services that help process companies improve efficiency and profitability by enabling them to model, manage and control their operations. The company has operations in Brazil, Malaysia and France. * * * Aspen Technology carries Moody's B2 long-term corporate family rating and Caa1 equity linked rating. Moody's said the outlook is stable. The company carries Standard & Poor's B long-term foreign and local issuer credit ratings, with negative outlook. COMPANHIA SIDERURGICA: Earns US$395.6 Million in Third Quarter -------------------------------------------------------------- Companhia Siderurgica Nacional, Brazil's third-largest steelmaker, reported third quarter financial results, showing higher profitability due to iron ore exports and higher domestic sales. According to various reports, the steelmaker earned BRL699 million (US$395.6 million), double that of its earnings in the same period last year. Rodrigo Ferraz, a steel analyst with Banco Brascan SA in Sao Paulo, expected profit of BRL765 million, according to Bloomberg News. "Sales volume in the domestic market is still showing an upward trend," Mr. Ferraz said in a report to investors before results were released, Bloomberg says. "The redirection of products to the internal market in addition to higher average prices should bring net positive results." Reuters says the company plans to offer shares for its Casa de Pedra iron mine to fund its US$2.7 billion expansion plans in 2008. The Casa Pedra mine is the company's most valuable asset due to its steady supply of high-grade iron ore. Companhia Siderurgica's U.S.-traded shares were up US$2.33, or 3.2%, to US$74.32 on Nov. 14, the Associated Press reports. Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal and the U.S. * * * As reported in the Troubled Company Reporter-Latin America on July 26, 2007, Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Brazil-based steel maker Companhia Siderurgica Nacional. S&P said the outlook is stable. DELPHI CORP: To Receive Labor Payments from GM Through 2015 ----------------------------------------------------------- General Motors Corp. said in its third quarter 2007 financial report filed with the U.S. Securities and Exchange Commission that it expects to make its annual payments to Delphi Corp. for labor costs through 2015, and said the payments could extend for up to five more years. Michigan-based General Motors said it will pay US$300,000,000 to US$400,000,000 a year for labor costs, as part of the settlements reached with Delphi and its labor union United Automobile, Aerospace & Agricultural Implement Workers of America. Pursuant to the settlements, which was contemporaneously filed with Delphi's Joint Plan of Reorganization on Sept. 6, 2007 before the U.S. Bankruptcy Court for the Southern District of New York, General Motors agreed to reimburse a certain portion of Delphi's U.S. hourly labor costs incurred to produce systems, components, and parts for GM from Oct. 1, 2006 through Sept. 14, 2015. General Motors and the bankrupt auto-parts supplier also agreed to resolve all outstanding issues and claims against each other. Delphi agreed to withdraw a prior request to terminate its supply agreements with GM. Delphi, GM's former parts-making unit, also agreed to issue a US$1,500,000,000 note in favor of GM, in exchange for its assumption of Delphi's pension obligations, and pay US$2,700,000,000 cash to GM on the effective date of the Plan. Due to difficulties in obtaining commitment for a proposed US$7,100,000,000 exit financing contemplated in the Plan, Delphi, however, has reduced the amount of cash to available for use as "currency" to be paid to creditors and interest holders. GM has consented to an amendment, providing that GM would receive US$1,500,000,000 in a combination of at least US$750,000,000 in cash and a second lien note for the remaining amount and US$1,200,000,000 in junior convertible preferred stock of Delphi, instead of US$2,700,000,000 in cash. Delphi is scheduled to seek the Bankruptcy Court's approval of the disclosure statement explaining the terms of the Plan at a Nov. 29, 2007 hearing, which has already delayed for almost two months. Delphi has to obtain approval of the disclosure statement before it could begin soliciting votes from creditors and equity holders on the Plan. Delphi expects to emerge from bankruptcy in the first quarter of 2008. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 96; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: Signs 2007 UAW-GM National Labor Contract --------------------------------------------------------- General Motors Chairman and CEO Rick Wagoner, United Auto Workers President Ron Gettelfinger and their respective senior leadership teams, signed the 2007 UAW-GM national labor contract at a special ceremony held Monday at the UAW-GM Center for Human Resources in Detroit, Michigan. The new contract is effective for the next four years. As reported in the Troubled Company Reporter on Oct. 11, 2007, GM confirmed that its UAW-represented employees have ratified the GM-UAW 2007 national labor agreement. The Troubled Company Reporter disclosed that GM and the UAW reached a tentative agreement on Sept. 26, 2007, after more than two months of bargaining. The new four-year agreement covers approximately 74,000 hourly employees located in more than 80 U.S. facilities. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of $39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. Moody's ratings of GMAC LLC (Ba2 senior unsecured/Negative outlook) and of Residential Capital LLC (Ba3 senior unsecured/Negative outlook) are unaffected by the action. GENERAL MOTORS: To Make Labor Payments to Delphi Through 2015 ------------------------------------------------------------- General Motors Corp. said in its third quarter 2007 financial report filed with the U.S. Securities and Exchange Commission that it expects to make its annual payments to Delphi Corp. for labor costs through 2015, and said the payments could extend for up to five more years. Michigan-based General Motors said it will pay US$300,000,000 to US$400,000,000 a year for labor costs, as part of the settlements reached with Delphi and its labor union United Automobile, Aerospace & Agricultural Implement Workers of America. Pursuant to the settlements, which was contemporaneously filed with Delphi's Joint Plan of Reorganization on Sept. 6, 2007 before the U.S. Bankruptcy Court for the Southern District of New York, General Motors agreed to reimburse a certain portion of Delphi's U.S. hourly labor costs incurred to produce systems, components, and parts for GM from Oct. 1, 2006 through Sept. 14, 2015. General Motors and the bankrupt auto-parts supplier also agreed to resolve all outstanding issues and claims against each other. Delphi agreed to withdraw a prior request to terminate its supply agreements with GM. Delphi, GM's former parts-making unit, also agreed to issue a US$1,500,000,000 note in favor of GM, in exchange for its assumption of Delphi's pension obligations, and pay US$2,700,000,000 cash to GM on the effective date of the Plan. Due to difficulties in obtaining commitment for a proposed US$7,100,000,000 exit financing contemplated in the Plan, Delphi, however, has reduced the amount of cash to available for use as "currency" to be paid to creditors and interest holders. GM has consented to an amendment, providing that GM would receive US$1,500,000,000 in a combination of at least US$750,000,000 in cash and a second lien note for the remaining amount and US$1,200,000,000 in junior convertible preferred stock of Delphi, instead of US$2,700,000,000 in cash. Delphi is scheduled to seek the Bankruptcy Court's approval of the disclosure statement explaining the terms of the Plan at a November 29, 2007 hearing, which has already delayed for almost two months. Delphi has to obtain approval of the disclosure statement before it could begin soliciting votes from creditors and equity holders on the Plan. Delphi expects to emerge from bankruptcy in the first quarter of 2008. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of $39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. HEXION SPECIALTY: Posts US$2-Mln Net Loss in 2007 Third Quarter --------------------------------------------------------------- Hexion Specialty Chemicals Inc. reported its results for the third quarter ended Sept. 30, 2007. Highlights for the third quarter of 2007 include: -- Revenues of US$1.43 billion in 2007 compared to US$1.34 billion during the prior year period, an increase of 7%. -- Operating income of US$88 million for the third quarter of 2007 compared to US$57 million during the prior year period, an increase of 54%. Operating income for the third quarter of 2007 benefited from improved operating performance, as well as decreased integration costs, compared to the similar year-ago period. -- Net loss of US$2 million for the 2007 quarter versus a net loss of US$14 million in the third quarter of 2006. -- Segment EBITDA (earnings before interest, taxes, depreciation and amortization) increased 20 percent to US$162 million in third quarter 2007 compared to US$135 million during the prior year period. "We were pleased to achieve double-digit gains in Segment EBITDA for the fifth consecutive quarter, while our operating income increased by 54 percent in the third quarter of 2007 compared to the prior year period, on the strength of several specialty products within our Epoxy and Phenolic Resins segment, our oilfield technology products, and our European and Latin American forest products businesses," said Craig O. Morrison, Chairman, President and Chief Executive Officer. "We continue to offset the challenging North American market conditions in 2007 through our strategy of international diversification, synergy achievement, productivity initiatives and leveraging bolt-on acquisitions to better serve our global customers." "In the near-term, we continue to take the necessary actions to offset price spikes in certain key raw materials. We have recently announced several price increases for select products focused on offsetting the volatility of input costs." Hexion achieved US$10 million in synergies in the third quarter of 2007 as the company continued to realize its targeted cost saving as planned. As of Sept. 30, 2007, Hexion has achieved US$105 million in synergies from its full program targeting US$175 million in savings. As previously announced on July 12, 2007, Hexion entered into a definitive merger agreement with Huntsman Corporation in an all- cash transaction valued at approximately US$10.6 billion, including assumed debt. As previously disclosed, Huntsman's stockholders approved the merger agreement with Hexion on Oct. 16, 2007. The transaction is subject to various conditions, including expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Act, review by several foreign jurisdictions and other customary closing conditions. "We are pleased that Huntsman's stockholders approved the merger, and we continue to work diligently to satisfy all closing conditions and complete the transaction as quickly as possible," Mr. Morrison said. Hexion also announced on Nov. 1, 2007, that it had completed the purchase of ARKEMA GmbH, which had 2006 revenues of approximately EUR101 million. Terms of the agreement were not disclosed. Based in the Leuna industrial park in east central Germany, the ARKEMA German resins and formaldehyde business manufactures formaldehyde and formaldehyde-based resins including urea-formaldehyde, phenol-formaldehyde and melamine- based resins systems. These resins are used to manufacture engineered wood panels including oriented strand board, particleboard and medium density fiberboard. The business also produces impregnation resins used to laminate decorative paper surfaces to wood products. "We remain focused on serving an expanding list of leading global customers in the high-growth regions of Eastern Europe, Latin America and Asia Pacific through our broad portfolio of thermoset resins," Mr. Morrison said. About Hexion Specialty Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://www.hexion.com/-- serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Hexion Specialty Chemicals is owned by an affiliate of Apollo Management, L.P. The company has locations in China, Australia, Netherlands, and Brazil. It is an Apollo Management L.P. portfolio company. Hexion had 2006 sales of USUS$5.2 billion and employs more than 7,000 associates. * * * As reported in the Troubled Company Reporter on July 9, 2007, Standard & Poor's Ratings Services placed its 'B' corporate credit rating and other ratings on Columbus, Ohio-based Hexion Specialty Chemicals Inc. on CreditWatch with negative implications. The ratings on related entities were also placed on CreditWatch. * BRAZIL: Moody's Cuts Series 2002-2 Senior Certificate Ratings --------------------------------------------------------------- Moody's America Latina Ltda. has downgraded the ratings of the senior certificates of Brazilian Securities Series 2002-2 (aka Series 9 or BBRAZ S005) to B2 from B1 (Global Scale, Local Currency), and to Ba1.br from Baa1.br (Brazilian National Scale). The ratings of these securities will remain on review for possible further downgrade. The downgrade of the Series 2002-2 certificates reflects Moody's concerns over the high level of delinquencies and defaults in the collateral portfolio relative to the senior certificates' outstanding balance. As of September 2007, Brazilian Securities reports that only 33% of the mortgage pool is current in its monthly payments, with serious delinquencies (90+ days) and loans in foreclosure accounting for approximately 50% of the securitized pool. The Series 2002-2 has been on review since July 2006. The continuation of the review reflects Moody's concerns over the sustainability of collections to meet the interest and principal payments required under the transaction documents, given the high level of non-performing loans. Moody's review will focus on the results of the collection efforts on non-performing collateral and the liquidation of real-estate owned, as well as on the reliability of performance data provided to Moody's for this transaction. Approximately BRL1.2 Million of Debt Securities Affected. The complete rating action is: Issuer: Brazilian Securities Companhia de Securitizacao -- Senior Certificates Series 2002-2, downgraded to B2 from B1 (Global Scale, Local Currency) and to Ba1.br from Baa1.br (Brazilian National Scale), on review for possible further downgrade. =========================== C A Y M A N I S L A N D S =========================== ANIMI OFFSHORE: Proofs of Claim Filing Deadline Is Nov. 27 ---------------------------------------------------------- The Animi Offshore Concentrated Risk Fund, Ltd.'s creditors are given until Nov. 27, 2007, to prove their claims to Archeus Capital Management, LLC -- 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. The Animi Offshore's shareholder agreed on Oct. 18, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Archeus Capital Management, LLC Attention: Ramanan Navakadadcham c/o Ogier P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1986 ANIMI OFFSHORE FUND: Proofs of Claim Filing Is Until Nov. 27 ------------------------------------------------------------ The Animi Offshore Fund, Ltd.'s creditors are given until Nov. 27, 2007, to prove their claims to Archeus Capital Management, LLC -- 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. The Animi Offshore's shareholder agreed on Oct. 18, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Archeus Capital Management, LLC Attention: Ramanan Navakadadcham c/o Ogier P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1986 ANIMI MASTER: Proofs of Claim Filing Is Until Nov. 27 ----------------------------------------------------- The Animi Master Concentrated Risk Fund, Ltd.'s creditors are given until Nov. 27, 2007, to prove their claims to Archeus Capital Management, LLC -- 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. The Animi Master's shareholder agreed on Oct. 18, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Archeus Capital Management, LLC Attention: Ramanan Navakadadcham c/o Ogier P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1986 ANIMI MASTER FUND: Proofs of Claim Filing Ends on Nov. 27 --------------------------------------------------------- The Animi Master Fund, Ltd.'s creditors are given until Nov. 27, 2007, to prove their claims to Archeus Capital Management, LLC -- 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. The Animi Master's shareholder agreed on Oct. 18, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Archeus Capital Management, LLC Attention: Ramanan Navakadadcham c/o Ogier P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1986 ANN FUNDING: Proofs of Claim Filing Deadline Is Nov. 28 ------------------------------------------------------- Ann Funding Two Co., Ltd.'s creditors are given until Nov. 28, 2007, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Ann Funding's shareholder agreed on Oct. 29, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 EM SPECIAL: Proofs of Claim Filing Deadline Is Nov. 29 ------------------------------------------------------ EM Special Opportunities TPC Ltd.'s creditors are given until Nov. 29, 2007, to prove their claims to Jan Neveril and Richard Gordon, 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. EM Special's shareholder agreed on Oct. 31, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands FIRST DORMY: Proofs of Claim Filing Ends on Nov. 29 --------------------------------------------------- First Dormy Holdings' creditors are given until Nov. 29, 2007, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. First Dormy's shareholder agreed on Oct. 31, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 GLOBAL AIR: Proofs of Claim Filing Deadline Is Nov. 29 ------------------------------------------------------ Global Air Movement Cayman - Holdco's creditors are given until Nov. 29, 2007, to prove their claims to Guy Major 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. Global Air's shareholder agreed on Oct. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Guy Major Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands GLOBAL AIR MOV'T: Proofs of Claim Filing Is Until Nov. 29 --------------------------------------------------------- Global Air Movement Cayman - PEC Co.'s creditors are given until Nov. 29, 2007, to prove their claims to Guy Major 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. Global Air's shareholder agreed on Oct. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Guy Major Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands MESA 2002-2: Proofs of Claim Filing Deadline Is Nov. 29 ------------------------------------------------------- Mesa 2002-2 Global Issuance Company's creditors are given until Nov. 29, 2007, to prove their claims to Andrew Millar 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. Mesa 2002-2'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: Andrew Millar Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands SCOTTISH RE: Declares US$0.4531 Per Preferred Share Dividend ------------------------------------------------------------ Scottish Re Group Limited's Board of Directors has declared a cash dividend of US$0.4531 per Perpetual Preferred Share outstanding to be paid on Jan. 15, 2008 to Perpetual Preferred Share shareholders of record as of the close of business on Jan. 2, 2008. 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. On June 30, 2007, Scottish Re reported total assets of US$13.6 billion and shareholder's equity of US$1.2 billion. ========= C H I L E ========= CLAXSON INTERACTIVE: Hikes Tender Offer Price to US$12.35/Share --------------------------------------------------------------- Claxson Interactive, with the support of a group of the company's controlling shareholders, the Cisneros Group, Hicks Muse, Roberto Vivo and Luis H. Moreno, has submitted to the special committee of independent directors an amendment to the going private proposal made on March 19, 2007, to increase the price per share offered to acquire for cash up to all of the outstanding Class A Common Shares of the Company held by the shareholders other than the Group to US$12.35 per share. The offer is subject to approvals and definitive documentation and this proposed transaction, or any similar transaction, may not take place on these or any other terms. Headquartered in Buenos Aires, Argentina, and Miami, Florida, Claxson Interactive Group Inc. (Pink Sheets: XSONF) has a presence in the United States and all key Ibero-American countries, including Mexico, Chile, Brazil, Spain and Portugal. Claxson's principal shareholders are the Cisneros Group of Companies and funds affiliated with Hicks, Muse, Tate & Furst Inc. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 4, 2007, Claxson Interactive Group Inc.'s obligaciones negociables for US$44,400,000 is rated BB by Fitch Argentina. The rating action was based on the company's balance sheet at Sept. 30, 2006. GMAC LLC: Fitch Puts BB Issuer Default Rating on Watch Negative --------------------------------------------------------------- Fitch Ratings has placed GMAC LLC and its related subsidiaries 'BB+' long-term Issuer Default Ratings on Rating Watch Negative. This action reflects the ongoing pressures in the company's residential mortgage subsidiary, Residential Capital LLC (ResCap, IDR 'BB+' by Fitch with Rating Watch Negative). Fitch's review of GMAC and ResCap will consider the: -- the ability of ResCap to return to profitability in the near-term. -- the potential for additional financial support from GMAC. -- unencumbered asset coverage at both the GMAC and ResCap levels. -- appropriate risk-adjusted capital levels at GMAC and ResCap. The review will also focus on the relative creditworthiness of GMAC and ResCap, particularly in light of the demonstrated financial support from GMAC to ResCap. Fitch expects to complete its review of both GMAC and ResCap in the next four to six weeks. Fitch acknowledges that GMAC's automotive and insurance businesses have continued to perform well; however, this has been more than offset by losses in the residential mortgage business. Fitch believes that the residential mortgage business will remain stressed, at least over the near-term. Moreover, Fitch also recognizes the good relative liquidity position of GMAC at this juncture. These ratings have been placed on Rating Watch Negative: GMAC LLC -- Long-term IDR 'BB+'; -- Short-term IDR 'B'; -- Senior unsecured 'BB+'; -- Short-term debt 'B'. GMAC Australia (Finance) Limited -- Short-term debt 'B'; -- Short-term IDR 'B'. GMAC Bank GmbH -- Long-term IDR 'BB+'; -- Short-term IDR 'B'; -- Senior unsecured 'BB+'; -- Short-term debt 'B'. GMAC International Finance B.V. -- Long-term IDR 'BB+'; -- Short-term IDR 'B'; -- Senior unsecured 'BB+'; -- Short-term debt 'B'. General Motors Acceptance Corp. (N.Z.) Ltd. -- Long-term IDR 'BB+'; -- Short-term IDR 'B'; -- Short-term debt 'B'. General Motors Acceptance Corp. of Canada Limited -- Long-term IDR 'BB+'; -- Short-term IDR 'B'; -- Senior unsecured 'BB+'; -- Short-term debt 'B'. General Motors Acceptance Corporation (U.K.) plc -- Short-term IDR 'B'; -- Short-term debt 'B'. General Motors Acceptance Corporation, Australia -- Long-term IDR 'BB+'; -- Short-term IDR 'B'; -- Senior unsecured 'BB+'; -- Short-term debt 'B'. GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors Acceptance Corporation, is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and other commercial businesses. GMAC was established in 1919 and currently employs about 31,000 people worldwide. Its Latin American operations are located in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela. At Dec. 31, 2006, GMAC held more than US$287 billion in assets and earned net income for 2006 of US$2.1 billion on net revenue of US$18.2 billion. =============== C O L O M B I A =============== CHIQUITA BRANDS: Faces Colombian Lawsuit Over Terrorist Payments ---------------------------------------------------------------- Colombian terrorism victims have filed in the U.S. District Court in Manhattan an almost US$8-billion lawsuit against the U.S. banana firm Chiquita Brands International for paying the terrorist group The United Self-Defense Forces of Colombia, the Associated Press reports. As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2007, the Colombian government said that it would seek the Chiquita Brands International officials' extradition if they had broken local law after the company made a US$25-million settlement for paying off terrorists. The U.S. federal court ordered Chiquita Brands to pay US$25 million in fines for paying millions of dollars to Colombian terrorist groups from 1997 to 2004. Chiquita Brands pleaded guilty to paying some US$1.7 million to Colombian paramilitary group United Self-Defense Committees of Colombia, explaining that the payments were made by a former unit due to threats to the safety of workers. The Honorable Royce Lamberth authorized an accord between Chiquita Brands and the US government in March 2007 that spared company officials. Theprosecution also agreed not to name or prosecute Chiquita Brands executives who were involved in paying the terrorist groups. Colombian officials were angry the settlement. The fine was small compared to other cases. The Colombian terrorism victims accused Chiquita Brands of "complicity in hundreds of deaths by financially supporting the United Self-Defense, the AP says. The complainants include relatives of 387 people allegedly killed by the terrorism group. They are seeking US$7.86 billion in damages from Chiquita Brands. A Chiquita Brands spokesperson told the AP that it would contest the civil lawsuit. Chiquita Brands admitted that its former subsidiary Banadex paid US$1.7 million to the terrorist group between 1997 and 2004. It also admitted that the payments were illegal and pleaded guilty this year to breaching the US counterterrorism laws and agreed to pay a US$25-million fine, the AP states. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Panama and the Philippines. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. ======= C U B A ======= NASH FINCH: Board Approves One Million Share Repurchase Program --------------------------------------------------------------- The Board of Directors of Nash Finch Company authorized, last week, a share repurchase program authorizing the company to purchase up to 1 million shares of the company's common stock. The program will take effect on Nov. 19, 2007 and will continue until Jan. 3, 2009. Notice of Default On Sept. 10, 2007, Nash Finch received a purported notice of default, which was subsequently reissued on Sept. 27, 2007, to correct a procedural defect in the initial notice, from certain hedge funds who are beneficial owners purporting to hold at least 25% of the aggregate principal amount of the Notes. The hedge funds alleged in the notice that Nash Finch was in breach of Section 4.08(a)(5) of the Indenture governing the Notes, which provides for an adjustment of the conversion rate on the Notes in the event of an increase in the amount of certain cash dividends to holders of Nash Finch's common stock. Nash Finch believes it made all required adjustments to the conversion rate on the Notes after it increased the quarterly dividends paid to shareholders from US$0.135 to US$0.18 per share and, accordingly, does not believe that a default has occurred under the Indenture. However, to avoid any uncertainty, Nash Finch has asked the Trustee to execute a supplemental indenture clarifying the company's obligations with respect to such increases in its quarterly dividends. The Indenture trustee has filed an action in the Hennepin County District Court, in Minneapolis, Minnesota for an order determining its obligations with respect to the supplemental indenture. Nash Finch has filed its own action in the same court, seeking a determination that the supplemental indenture is proper and should be executed, and that regardless of whether the supplemental indenture is executed, no default has occurred under the Indenture. Under the terms of the Indenture, if a default has occurred, Nash Finch would have 30 days from the date of receipt of a valid notice of default to cure. Nash Finch has asked the Court to toll the 30-day cure period while the Court determines whether the Indenture trustee must execute the supplemental indenture and whether Nash Finch adjusted the conversion rate in accordance with the requirements of the Indenture. If the Court determines the hedge fund's assertion to be correct, Nash Finch would cure the default by making an upward adjustment in the conversion rate of 0.4307 shares per US$1,000 bond. "In consultation with our legal and financial advisors, Nash Finch determined that it made all required adjustments to the conversion rate on the Notes, and therefore we are confident that no event of default has occurred," Bob Dimond, Executive Vice President and CFO of Nash Finch, said. "We are disappointed that this small group of noteholders has chosen to pursue this path -- it appears to be nothing more than an opportunistic attempt to achieve financial gain that is well beyond what they are due." About Nash Finch Headquartered in Minneapolis, Minnesota, Nash Finch Company (NASDAQ:NAFC) -- http://www.nashfinch.com/-- distributes food products. Nash Finch's core business, food distribution, serves independent retailers and military commissaries in 31 states, the District of Columbia, Europe, Cuba, Puerto Rico, the Azores and Egypt. The company also owns and operates a base of retail stores, primarily supermarkets under the Econofoods(R), Family Thrift Center(R) and Sun Mart(R) trade names. NASH FINCH: Earns US$15.4 Million in Quarter Ended October 6 ------------------------------------------------------------ Nash Finch Company disclosed financial results for the third quarter ended Oct. 6, 2007. Net earnings for the third quarter 2007 were US$15.4 million, as compared to net loss of US$4.6 million in the prior year quarter. During the third quarter the company reported the effect of resolving two Internal Revenue Service examinations, 2003 statute of limitations expiration and filing of various reports to settle potential tax liabilities resulting in a decrease to income tax expense of approximately US$4.9 million. Net earnings for the first forty weeks of 2007 were US$30.3 million, as compared to net earnings of US$3.4 million in the prior-year period. Total company sales for the sixteen week third quarter of 2007 were US$1.3 billion compared to US$1.4 billion in the prior-year quarter. Sales for the first forty weeks of 2007 were US$3.4 billion compared to US$3.5 billion in the prior-year period. The third quarter and year-to-date sales declines of 4.2% and 2.0%, respectively, result primarily from the transition of a large customer to another supplier, which was announced earlier this year, the closure of unprofitable retail stores, and to a lesser degree customer attrition that occurred in 2006 that has not yet been fully offset by new customer gains in 2007. "I remain quite pleased with the overall improvements our company has made thus far this year, and specifically the improvements in EBITDA visible in the third quarter results," Alec Covington, President and CEO of Nash Finch, said. "EBITDA as a percentage of sales increased once again among all three business units versus the prior year, a trend which we have been able to sustain throughout 2007. These accomplishments have primarily resulted from improved inventory management resulting in higher gross margins and lower product cost, as well as significant reductions in our overall expense structure." During the third quarter and year-to-date periods of 2007, the Company repaid US$16.0 million and US$41.3 million, respectively, of debt on its senior credit facilities. The company continues to focus on effectively managing its working capital, reducing indebtedness, improving cash flow, and is currently in compliance with all of its debt covenants. The debt leverage ratio as of the end of the third quarter 2007 was 2.51, a significant improvement from 3.42 at the end of fiscal 2006. Availability on the company's revolving credit facility at the end of the quarter was US$105.9 million. As of Oct. 6, 2007, the company's balance sheet showed total assets of US$981.5 million and total liabilities of US$657.9 million, resulting in a US$323.6 million stockholders' equity. Notice of Default On Sept. 10, 2007, Nash Finch received a purported notice of default, which was subsequently reissued on Sept. 27, 2007, to correct a procedural defect in the initial notice, from certain hedge funds who are beneficial owners purporting to hold at least 25% of the aggregate principal amount of the Notes. The hedge funds alleged in the notice that Nash Finch was in breach of Section 4.08(a)(5) of the Indenture governing the Notes, which provides for an adjustment of the conversion rate on the Notes in the event of an increase in the amount of certain cash dividends to holders of Nash Finch's common stock. Nash Finch believes it made all required adjustments to the conversion rate on the Notes after it increased the quarterly dividends paid to shareholders from US$0.135 to US$0.18 per share and, accordingly, does not believe that a default has occurred under the Indenture. However, to avoid any uncertainty, Nash Finch has asked the Trustee to execute a supplemental indenture clarifying the company's obligations with respect to such increases in its quarterly dividends. The Indenture trustee has filed an action in the Hennepin County District Court, in Minneapolis, Minnesota for an order determining its obligations with respect to the supplemental indenture. Nash Finch has filed its own action in the same court, seeking a determination that the supplemental indenture is proper and should be executed, and that regardless of whether the supplemental indenture is executed, no default has occurred under the Indenture. Under the terms of the Indenture, if a default has occurred, Nash Finch would have 30 days from the date of receipt of a valid notice of default to cure. Nash Finch has asked the Court to toll the 30-day cure period while the Court determines whether the Indenture trustee must execute the supplemental indenture and whether Nash Finch adjusted the conversion rate in accordance with the requirements of the Indenture. If the Court determines the hedge fund's assertion to be correct, Nash Finch would cure the default by making an upward adjustment in the conversion rate of 0.4307 shares per US$1,000 bond. "In consultation with our legal and financial advisors, Nash Finch determined that it made all required adjustments to the conversion rate on the Notes, and therefore we are confident that no event of default has occurred," Bob Dimond, Executive Vice President and CFO of Nash Finch, said. "We are disappointed that this small group of noteholders has chosen to pursue this path -- it appears to be nothing more than an opportunistic attempt to achieve financial gain that is well beyond what they are due." About Nash Finch Headquartered in Minneapolis, Minnesota, Nash Finch Company (NASDAQ:NAFC) -- http://www.nashfinch.com/-- distributes food products. Nash Finch's core business, food distribution, serves independent retailers and military commissaries in 31 states, the District of Columbia, Europe, Cuba, Puerto Rico, the Azores and Egypt. The company also owns and operates a base of retail stores, primarily supermarkets under the Econofoods(R), Family Thrift Center(R) and Sun Mart(R) trade names. =================================== D O M I N I C A N R E P U B L I C =================================== AES CORP: To Complete Cash Tender Offer for Senior Notes -------------------------------------------------------- The AES Corporation disclosed that its previously announced offer to purchase up to US$1.24 billion aggregate principal amount of its outstanding senior notes in accordance with the terms and conditions described in its Offer to Purchase and the related Letter of Transmittal expired as scheduled at 12:00 midnight on Nov. 13, 2007. As of such time, a total of approximately US$1,980.8 million aggregate principal amount of Notes had been validly tendered, consisting of approximately: (i) US$192.6 million principal amount of 8.75% Senior Notes due 2008, (ii) US$600.0 million principal amount of 9.00% Second Priority Senior Secured Notes due 2015 and (iii) US$1,188.3 million principal amount of 8.75% Second Priority Senior Secured Notes due 2013. In accordance with the terms of the tender offer, since the total amount of Notes tendered exceeded the Tender Cap, the company accepted for purchase all of the 2008 Notes, all of the 2015 Notes and approximately US$447.4 million principal amount of the 2013 Notes (representing a pro ration factor of 37.6714%, with each amount tendered rounded down to the nearest US$1,000) that were validly tendered prior to the expiration time. Settlement of the tender offer occurred at which time none of the 2015 Notes, approximately US$9.3 million principal amount of the 2008 Notes and approximately US$752.6 million principal amount of the 2013 Notes remained outstanding. About AES Corp. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company's Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. As reported in the Troubled Company Reporter-Latin America on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to US$2 billion from US$500 million. LGD assessments are subject to change pending the final capital structure. As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's US$500 million issue of senior unsecured notes due 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. Fitch said the rating outlook is stable. ===================== E L S A L V A D O R ===================== MILLICOM INT'L: Moody's Lifts Corporate Family Rating to Ba2 ------------------------------------------------------------ Moody's Investors Service has upgraded ratings of Millicom International Cellular S.A. The corporate family rating was upgraded to Ba2 from Ba3 and the rating on the existing senior notes was upgraded to B1 from B2. The outlook on the ratings is stable. The upgrade reflects Millicom's continued robust operational and financial performance and a strong growth momentum in its countries of operations underpinned by low to moderate levels of mobile penetration. The upgrade also takes into account the company's conservative leverage level of 1.5 Debt to EBITDA based on the third quarter of 2007 annualized basis and substantial liquidity of approximately US$1 billion in cash and cash equivalents at the end of the third quarter of 2007. Furthermore, the Ba2 corporate family rating is supported by the company's relatively conservative financial policies under which they have articulated a 2.0 Net Debt to EBITDA parameter. At the same time, Moody's notes that Millicom's ratings also reflect the political, economic and legal risks of the emerging market countries in which the company operates. The majority of the countries either have sub-investment grade ratings or do not have a publicly assigned rating. Moody's, however, relies on the company's representations that it has never experienced any substantial operational problems or any difficulty in repatriating funds from its countries of operations. The company expects to be free cash flow negative in 2007 as it intends to spend approximately US$1 billion in capital expenditures. However, it has been the company's policy to finance its capital expenditures at the level of its operating subsidiaries and to upstream available cash; e.g. the company spent US$738 million in capex whilst upstreaming US$484 million in cash in the nine months 2007. The upgrade of the senior notes to B1 is driven by the upgrade of the corporate family rating. The Loss Given Default assessment remains at LGD-5. The stable outlook on the rating reflects Moody's expectations that the company will continue to grow its revenue and EBITDA underpinned by subscriber growth. At the same time, the ratings are likely to be constrained by the sovereign risk of Millicom's countries of operations and negative free cash flow generation over the near term. What Could Change the Rating -- UP -- The rating could come under upward pressure if the company generates free cash flow with the leverage level substantially below 2.0 Debt to EBITDA to offset emerging market risk What Could Change the Rating -- Down -- The rating could come under downward pressure if the company's leverage moves towards 2.5 Debt to EBITDA in conjunction with reduced financial flexibility in terms of cash balances. About Millicom Headquartered in Bertrange, Luxembourg, and controlled by Sweden's AB Kinnevik, Millicom International Cellular S.A. -- http://www.millicom.com/-- is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has cellular operations and licenses in 16 countries. The Group's cellular operations have a combined population under license of around 391 million people. The Central America Cluster comprises Millicom's operations in El Salvador, Guatemala and Honduras. The population under license in Central America at December 2005 is 26.4 million. The South America Cluster comprises Millicom's operations in Bolivia and Paraguay. The population under license in South America at December 2005 is 15.2 million. =============== H O N D U R A S =============== SBARRO INC: Reports US$503,000 Net Income in Qtr. Ended Sept. 30 ---------------------------------------------------------------- Sbarro Inc. reported net income of US$503,000 for the three months ended Sept. 30, 2007, compared to net income of US$2.1 million for the same period in 2006. The decrease in net income was primarily due to higher net interest expense and depreciation and amortization resulting from the Merger. Revenues were US$91.0 million for the quarter ended September 30, 2007 as compared to US$79.2 million for the quarter ended October 8, 2006. The third quarter of 2007 consisted of thirteen weeks as compared to twelve weeks in the third quarter of 2006. The one week difference in 2007 generated revenues of approximately US$6.8 million. The company's revenue increase was primarily driven by same-store sales growth of 3.2% in its company-owned stores, 4.3% in our domestic franchise stores and 6.6% in its international franchise stores as well as revenue from new stores opened in 2007. EBITDA, as calculated in accordance with the terms of the company's bank credit agreement, was US$14.7 million for the third quarter ended Sept. 30, 2007, as compared to US$13.0 million for the third quarter ended Oct. 8, 2006. The one week difference in 2007 generated EBITDA of approximately US$0.9 million. EBITDA increased after absorbing higher product costs, in particular the cost of cheese, which increased approximately US$1.5 million. On Jan. 31, 2007, MidOcean SBR Acquisition Corp., an indirect subsidiary of MidOcean SBR Holdings, LLC, an affiliate of MidOcean Partners III, L.P., and certain of its affiliates, merged with and into the company in exchange for consideration of US$450 million in cash, subject to certain adjustments. As a result of the Merger, the company is now an indirect wholly owned subsidiary of Holdings. About Sbarro Headquartered in Melville, New York, Sbarro Inc. is a quick service restaurant chain that serves Italian specialty foods. As of Oct. 8, 2006, the company owned and operated 479 and franchised 476 restaurants worldwide under brand names such as "Sbarro," "Umberto's," and "Carmela's Pizzeria." The company also operated 25 other restaurant concepts and joint ventures under various brand names. Total revenues for fiscal 2005 were approximately USUS$348 million. The company announced on June 19, 2006, its international expansion by opening more than 25 restaurants in Guatemala, El Salvador, Honduras, The Bahamas and Romania. * * * As reported in the Troubled Company Reporter on Jan. 29, 2007, Standard & Poor's Ratings Services affirmed its bank loan and recovery ratings on Sbarro Inc.'s bank facility, after the report that the company will increase the size of the loan to USUS$208 million from USUS$175 million. These ratings were affirmed: -- Corporate credit rating affirmed B-; -- USUS$25 million revolver due 2013 affirmed at B; and -- USUS$183 million term loan due 2014 affirmed B. * HONDURAS: Police To Arrest Hondutel Head for Authority Abuse -------------------------------------------------------------- Published reports say that