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 Monday, November 19, 2007, Vol. 8, Issue 229 Headlines A R G E N T I N A ALITALIA SPA: Chairman to Recommend Buyer by Nov. 23 ALITALIA SPA: Posts EUR57.56 Mil. Pretax Loss in Third Quarter ARROW ELECTRONICS: North American Biz To Deploy Seagate Products AVAYA INC: Moody's Assigns Ba3 Rating on US$3.8-Billion Loan BALLY TECH: Inks Casino Management System Pact with Pechanga BANCO SANTANDER: Will Take ARS70.3-Mil. Charge in Fourth Quarter BLAY SRL: Proofs of Claim Verification Deadline Is Dec. 20 BEST SERVICE: Files for Reorganization Petition in Buenos Aires COCTIN SA: Proofs of Claim Verification Is Until Feb. 25 COOPERATIVA DE TRABAJO: Claims Verification Ends Feb. 25, 2008 DELTA AIR: Shareholder Wants Merger with United Airlines KEY ENERGY: Prices US$425MM Private Offering of 8.375% Sr. Notes MINCS-LIBERTY: Proofs of Claim Filing Deadline Is Nov. 29 NOTRIN SA: Proofs of Claim Verification Ends Feb. 29, 2008 QUANTIMIX XL FUND: Proofs of Claim Filing Is Until Nov. 29 QUANTIMIX XL MASTER: Proofs of Claim Filing Deadline Is Nov. 29 REVS LIMITED: Proofs of Claim Filing Ends on Nov. 29 SAISEI KAISYU: Proofs of Claim Filing Is Until Nov. 29 SLE LIMITED: Proofs of Claim Filing Is Until Nov. 29 SAVANNAH ALTERNATIVE: Proofs of Claim Filing Ends on Nov. 29 VEGA GLOBAL: Sets Final Shareholders Meeting for Nov. 29 VEGA GLOBAL 3X: Will Hold Final Shareholders Meeting on Nov. 29 VEGA INT'L: Holding Final Shareholders Meeting on Nov. 29 * ARGENTINA: Secures US$100-Million Financing from IDB B A H A M A S METROPOLITAN BANK: 3rd Quarter Profit Falls 5.56% to PHP1.7 Bil. B E R M U D A ABH 10: Proofs of Claim Filing Deadline Is Nov. 30 AIRCASTLE BERMUDA (II): Proofs of Claim Filing Is Until Nov. 30 AIRCASTLE BERMUDA (III): Proofs of Claim Filing Ends on Nov. 30 AIRCASTLE BERMUDA (IV): Proofs of Claim Filing Ends Nov. 30 AIRCASTLE BERMUDA (V): Proofs of Claim Filing Is Until Nov. 30 FOSTER WHEELER: Subsidiary Reaches Accord with NTR Acquisition FOSTER WHEELER: Subsidiary Bags Contract from LUKOIL Energy B E L I Z E FLOWSERVE CORP: Paying US$0.15 Per Share Dividend on Jan. 8 B O L I V I A AGILENT TECH: Board Okays US$2-Billion Share-Repurchase Program AGILENT TECH: Earns US$180 Million in 4th Quarter Ended Oct. 31 B R A Z I L ARVINMERITOR INC: Posts US$30MM Net Loss in Qtr. Ended Sept. 30 BANCO NACIONAL: Companhia Paranaense Applies for Plant Funding BANCO CRUZEIRO: Reports BRL64.9 Million Net Income in Third Qtr. COMPANHIA PARANAENSE: Applies for Funding from Banco Nacional COMPANHIA DE SANEAMENTO: 3Q Net income Up 95.5% to BRL382.2 Mil. COMPANHIA DE SANEAMENTO: To Initiate Deal with Sao Paulo State FIDELITY NATIONAL: Inks Exclusive Services Pact w/ Bankers Bank FORD MOTOR: Johnson Controls Inks MOU to Buy Saline ACH Plant FORD MOTOR: UAW Employees Ratify Healthcare MOU & National CBA FORD MOTOR: Moody's Affirms Ratings; Changes Outlook to Stable GOL LINHAS: Unit Announces Interline Agreement with Delta Air HERCULES INC: Board Declares Five Cents Per Share Dividend TAM SA: Launches Codeshare Pact with United Airlines * BRAZIL: Sao Paulo's Partnership Deal with SABESP Sets Example C A Y M A N I S L A N D S BEAR STEARNS FUNDS: Fund LP Wants to Dissolve & Liquidate Assets BEAR STEARNS FUNDS: Parent Taking US$1.2B Write-Down in 4Q 2007 PARMALAT SPA: Group Earns EUR276.9MM for First Nine Months 2007 PARMALAT SPA: New York Court Denies Third-Party Action Dismissal PARMALAT SPA: New York Court Junks Motion for Reconsideration C H I L E QUEBECOR WORLD: Considers Refinancing to Retire Some Loans C O L O M B I A POLYONE CORP: Buys GLS Corp. as Part of Specialization Strategy * COLOMBIA: Gets US$837-Million Private Loan Program from MIF * COLOMBIA: Is in Gas Pipeline Talks with Venezuela & Ecuador C O S T A R I C A INTERPUBLIC GROUP: Moody's Rates US$200 Mil. 4.75% Notes at Ba3 INTERPUBLIC GROUP: S&P Rates 4.75% Convertible Senior Notes B D O M I N I C A N R E P U B L I C AFFILIATED COMPUTER: Extends E-ZPass New Hampshire Toll Contract BANCO INTERCONTINENTAL: Former Pres. Appeals 10-Year Prison Term E C U A D O R PETROECUADOR: Repsol May Seek Int'l Arbitration on Windfall Tax PETROECUADOR: Nation's OPEC Re-Entry Beneficial for Firm PETROLEUM GEO-SERVICES: Acquires 78% Stake in Arrow Seismic * ECUADOR: Is in Gas Pipeline Talks with Colombia & Venezuela G U A T E M A L A BRITISH AIRWAYS: Seeks EUR2.5-Bln Loan to Finance Iberia Bid IMAX CORP: Signs Four-Picture Contract with Dreamworks Animation * GUATEMALA: Wants Support from Venezuela on Energy Crisis H O N D U R A S SBARRO INC: Posts US$35.1 Mil. Combined Net Loss for Third Qtr. J A M A I C A NATIONAL WATER: May Sue Developers for Tampering with Main Lines M E X I C O BRISTOW GROUP: Completes US$2.5-Mln Buyout of Vortex Helicopters CKE RESTAURANTS: Reports US$273.2-Mil. Blended Same-Store Sales GRUPO MEXICO: Unit Issues MXN2.5 Bil. in Bonds on Bolsa Mexicana MOVIE GALLERY: Court Gives US$150MM DIP Facility Final Go Signal MYLAN INC: Prices Offerings of Common & Preferred Stocks NUANCE COMM: Incurs US$3.4-Million Net Loss in Fourth Quarter REMY WORLDWIDE: Court Approves Shearman & Sterling as Counsel REMY WORLDWIDE: Bankruptcy Court Okays YCS&T as Delaware Counsel REMY WORLDWIDE: Court Okays Greenberg Traurig as Special Counsel SPANSION INC: Works w/ Virident To Develop New Memory Products UNITED RENTALS: S&P Holds BB- Corp. Credit Rating on Watch Neg. URS CORP: Closes Washington Group Acquisition for US$3.1 Billion WOLVERINE TUBE: S&P Affirms CC Corporate Credit Rating P A N A M A NCO GROUP: Posts US$3.1 Million Net Loss in Third Quarter 2007 P A R A G U A Y * PARAGUAY: Secures US$10-Mln Loan Program to Support Exports P E R U FREEPORT-MCMORAN: Unit Pays Indonesia Gov't US$434 Mil. in Q3 P U E R T O R I C O SANTANDER BANCORP: Posts US$34.3M Loss for Nine-Month Period FOOT LOCKER: Paying US$0.125 Per Share Qtrly Dividend on Feb. 1 MYLAN INC: Moody's Lowers Corporate Family Rating to B1 WERNER LADDER: Emerges from Ch. 11 Protection Effective Oct. 31 V E N E Z U E L A PETROLEOS DE VENEZUELA: Inks Pact with Cerro Negro Bondholders SHAW GROUP: Environmental Unit Bags Deal from U.S. Army Corps * VENEZUELA: Debt Bond Issue Up to US$1.65 Bln, Says Luis Davila * VENEZUELA: Is in Gas Pipeline Talks with Ecuador & Columbia * BOND PRICING: For the Week Nov. 12 to Nov. 16 - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Chairman to Recommend Buyer by Nov. 23 ---------------------------------------------------- Alitalia S.p.A. Chairman Maurizio Prato will recommend a buyer for the Italian government's 49.9% stake by Nov. 23, 2007, Alessandro Torello of Bloomberg News reports, citing Italian Transport Minister Alessandro Bianchi. As reported in the TCR-Europe on Oct. 22, 2007, Mr. Prato told the Italian parliament that he will recommend an industrial buyer for Italy's stake within the first ten days of November, after which the government will then decide how to finalize the sale. As previously reported in the TCR-Europe, Alitalia decided to open talks, through the financial advisor Citi and industrial advisor Roland Berger, with: -- OAO Aeroflot, -- Air France-KLM, -- AP Holding S.p.A., -- Cordata Baldassarre, -- Deutsche Lufthansa AG, -- TPG Capital. Alitalia, however, has concluded that Cordata Baldassarre's bid is "no longer compatible" to its planned stake sale. TPG Capital, meanwhile, has informed it was unable to finalize an Italian-led consortium, but will continue to follow the developments of the sale. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Posts EUR57.56 Mil. Pretax Loss in Third Quarter -------------------------------------------------------------- Alitalia S.p.A. posted EUR57.56 million in pretax losses on EUR1.27 billion in total consolidated revenues for the third quarter ended Sept. 30, 2007, compared with EUR66.43 million in pretax losses on EUR1.25 billion in total consolidated revenues for the same period in 2006. The third quarter 2007 was negatively affected by industrial unrest in the airport and flight, sectors, with EUR32 million in potential revenue loss. As of Sept. 30, 2007, the company's workforce saw a decrease of 496 people to 11,262 employees, from the same period last year. As of Sept. 30, 2007, Alitalia's operating fleet consisted of 185 aircraft of which 156 for short/medium-haul flights, and 29 for long haul. As of Sept. 30, 2007, the company's total debt amounted to EUR1.150 billion. Outlook for 2007 Expected operating result in 2007 in line with 2006, without considering the EUR197 million write-down of the fleet. The company expects 2007 results to worsen compared to the previous year due to strong fuel price increase and substantial loss of traffic revenues in second half 2007. Amount of cash-on-hands is sufficient to ensure the Company going concern for more than 12 months without any significant critical issues in the implementation of the Plan's main elements. Otherwise, such critical issues could bring about the conditions for taking immediate action regarding the capital increase. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. ARROW ELECTRONICS: North American Biz To Deploy Seagate Products ---------------------------------------------------------------- Arrow Electronics, Inc.'s North American Components business will distribute Seagate Technology's industry-leading disc-drive product portfolio to Arrow's broad customer base in the United States and Canada under an agreement announced. Arrow will distribute Seagate's product portfolio including its industry- leading EE25 hard-drive series for extreme environments, the DB35 series for digital video recorders and home media servers, the SV35 family for digital video surveillance systems, Savvio 2.5-inch drives for mission- critical enterprise server and storage applications, and the Momentus family for laptop computers. "Arrow's proven success in technical demand creation with the embedded marketplace will provide broad customer access to the industry's most diverse product portfolio," said Seagate's vice president of global marketing, Marc Jourlait. "We are pleased to be extending our reach with the addition of Arrow as we continue to deliver advanced digital storage that powers mainstream and cutting-edge applications." "Seagate's demonstrated leadership in disc-drive technology and its commitment to developing unique solutions that meet, and exceed, the diverse storage requirements of our OEM customer base clearly adds to our value proposition," said Arrow's North American Components business vice president of marketing, Robert Behn. The proliferation of embedded multimedia applications requiring audio and video, and increasing regulatory requirements across various markets are two important factors driving the storage needs of embedded OEMs. "These ever-increasing embedded storage requirements are what led Seagate and Arrow to formalize our strategic alliance," said Mr. Behn. About Arrow North American Components The North American Components (NAC) business of Arrow Electronics, Inc., is a leading provider of semiconductors and passive, electromechanical and connector products, computing solutions, services and supply-chain solutions tailored to serve distinct customer segments with dedicated sales teams. Two primary, customer-focused NAC groups serve these market segments: The Arrow Electronics Components Group serves North America-based OEM and contract manufacturing customers, and the Arrow/Zeus Electronics Group targets the aerospace and military markets. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics Inc. -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands, United Kingdom, Argentina, Brazil, Mexico, Australia, China, Hong Kong, Korea, Philippines and Singapore. * * * Arrow Electronics senior subordinated stock continues to carry Moody's Investors Service's Ba1 rating. The company's senior preferred stock is rated at Ba2. AVAYA INC: Moody's Assigns Ba3 Rating on US$3.8-Billion Loan ------------------------------------------------------------ Moody's Investors Service has assigned a B2 corporate family rating to newly private Avaya, Inc. as well as Ba3 ratings to its new senior secured US$200 million revolver and US$3.8 billion term loan. The company was acquired by TPG Capital LLC and Silver Lake Partners on Oct. 26, 2007 for US$8.3 billion. Moody's also withdrew the company's previous Ba3 corporate family rating and shelf ratings, which were placed under review for downgrade after the company announced the going private transactions. The outlook is stable. Approximately US$4.0 billion of debt affected. These ratings have been assigned: -- Corporate family rating, B2 -- Probability of default, B2 -- US$200 million Senior Secured Revolving Credit Facility, Ba3, LGD2 (28%) -- US$3,800 million Senior Secured Term Loan, Ba3, LGD2 (28%) These ratings will be withdrawn: -- Shelf registration for senior unsecured debt (P)B1 -- Shelf registration for preferred stock (P)B3 The capital structure includes the above rated debt as well as an unrated, undrawn US$335 million senior secured multi currency asset-based revolving credit facility and an unrated US$1.45 billion senior unsecured bridge facility consisting of a US$700 million senior unsecured cash-pay bridge loan and a US$750 million senior unsecured PIK-toggle bridge loan. In addition to the debt financing, the capital structure includes approximately US$2.4 billion in equity from the private equity sponsors. The above debt instrument ratings were determined using Moody's Loss Given Default Methodology. The ratings could be affected if the capital structure changes. The B2 corporate family rating reflects the significant leverage being used to finance the buyout offset by the company's industry leading position within the enterprise telephony market and favorable replacement trends facing the industry. Closing leverage is estimated to be approximately 7.0 funded debt to EBITDA (on a Moody's adjusted basis which includes approximately US$1 billion of unfunded pension obligations). Despite the strong cash generating capabilities of the underlying business, the debt service, pension service and capital requirements of the business leave minimal cash in the next few years to pay down debt and little cushion in the event of a downturn. Leverage and cash flow coverage at these levels are suggestive of a B3 rating, but the strength of the company's business and major cost cutting initiatives are positive factors that offset the company's high leverage. However, the rating remains weakly positioned at the low end of the B2 rating category. Avaya is a leader in the global enterprise telephony industry and holds the largest market share in numerous sub-segments. The industry is going through a significant upgrade cycle as customers replace or migrate their traditional TDM phone systems to next generation Internet protocol systems. The company has one of the largest installed bases of corporate phone systems in the world. Incumbency is a key ratings driver as customers tend to be 'sticky' and generate a recurring revenue stream from multi-year maintenance contracts, upgrades, replacements and expansions once a system has been put in place. The company is also a leader in sales of IP based enterprise telephony systems. While Cisco initially dominated the IP enterprise phone market, Avaya has made significant strides and in numerous segments has surpassed Cisco. The stable outlook reflects the view that the company will continue to benefit from the general growth in IP telephony upgrades, maintain or grow their market share and realize on their cost cutting initiatives. The ratings could be negatively impacted by a significant slow down in enterprise telephony spending, loss of market share or challenges in implementing the planned cost reductions or reducing leverage. Moody's does not anticipate an upgrade in the near term given the high debt levels. About Avaya Inc. Headquartered in Basking Ridge, New Jersey, Avaya Inc. (NYSE: AV) -- http://www.avaya.com/-- designs, builds and manages communications networks for more than one million businesses worldwide, including more than 90% of the FORTUNE 500(R). Avaya is a world leader in secure and reliable Internet Protocol telephony systems and communications software applications and services. Avaya has locations in Malaysia, Argentina and the United Kingdom. BALLY TECH: Inks Casino Management System Pact with Pechanga ------------------------------------------------------------ Bally Technologies, Inc. has signed a sweeping contract with the award-winning Pechanga Resort & Casino to provide a complete slot accounting and casino management system solution, advanced bonusing technology and more than 3,600 iVIEW interactive player-communication displays for all of Pechanga's gaming machines. The contract is the company's most comprehensive systems agreement ever and also includes the Bally Business Intelligence/Data Visualization solution and the first sale of the server-based Bally Live Rewards Casino Challenge(TM) tournament technology. Pechanga will utilize Bally Slot Management Systems (TM)/Casino Management Systems (TM) technologies and Bally eTICKET(TM) cashless functionality. Pechanga also selected Bally Power Bonusing(TM) products, including Bally Power Winners(TM), a configurable random progressive jackpot technology that rewards players using their player's club cards, and Bally Power Promotions(TM), which gives players the ability to convert their club points into downloadable slot machine credits. Pechanga also plans to re-wire its casino floor with advanced Ethernet capabilities that will boost the performance of the Bally products even further and prepare the property for the introduction of server gaming and advanced network floor functionality. The high-speed floor will allow for the launch of the player- centric Casino Challenge tournaments presented on the iVIEW displays, giving Pechanga the ability to conduct floor-wide slot tournaments designed to increase time on device while rewarding key players and building excitement on the casino floor. "We are constantly looking at ways to enhance the Pechanga experience for our guests," said Pechanga Development Corporation President, Amy Minniear. "After a careful competitive review, we found that Bally's product lineup would help us make immediate enhancements for our players while laying the foundation for a wide variety of technologies that will benefit our operation in the future." "We are extremely pleased to add Pechanga to our growing list of Systems customers, especially those in Southern California," said Bally Technologies Chief Executive Officer, Richard Haddrill. "As one of the most successful casino operations in the country, Pechanga is the perfect showcase for our product lineup. The Bally iVIEW display in particular will help the forward-thinking team at Pechanga to offer their customers a new playing and service experience." About Pechanga Pechanga Resort & Casino, owned and operated by the Pechanga Band of Luiseno Mission Indians, is located just off I-15 in the popular wine-growing region of Temecula, Southwest California. The resort's central location and easy freeway access make it a popular gaming destination for those driving from Los Angeles, Orange County and San Diego. About Bally Technologies Inc. Headquartered in Las Vegas, Nevada, Bally Technologies, Inc. (NYSE: BYI) -- http://www.BallyTech.com/-- designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide- area progressives and Class II lottery and central determination games and platforms. Bally Technologies also offers an array of casino management, slot accounting, bonus, cashless, and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Mississippi. The company's South American operations are located in Argentina. The company also has operations in Macau, China, and India. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 13, 2007, Fitch Ratings has upgraded Bally Technologies' secured bank debt rating and affirmed Bally's Issuer Default Rating as: -- Secured bank credit facility upgraded to 'B/RR3' from 'B-/RR4'; -- Issuer Default Rating affirmed at 'B-'. Fitch has revised the rating outlook to stable from negative. On Nov. 7, 2007, Standard & Poor's Ratings Services has raised its corporate credit and senior secured debt ratings on Bally Technologies Inc. to 'B+' from 'B-'. Concurrently, S&P revised the CreditWatch implications to positive from developing. BANCO SANTANDER: Will Take ARS70.3-Mil. Charge in Fourth Quarter ---------------------------------------------------------------- Banco Santander Rio's planning manager Luis Aragon told Business News Americas that the bank is looking to take a ARS70.3-million charge related to legal injunctions called amparos in the fourth quarter 2007. Mr. Aragon commented to BNamericas, "We are amortizing amparos at faster rates to complete them by the end of this year." Banco Santander took a ARS79-million charge in the third quarter 2007 from amparo-related losses, BNamericas says, citing Mr. Aragon. BNamericas relates that Banco Santander made a large reduction in its exposure to public sector assets -- guaranteed loans and government bonds. Lower prices on these securities led to the bank's ARS80-million loss in the third quarter 2007. Mr. Aragon told BNamericas that the quarterly loss was also due to Banco Santander's decision to value its public sector securities -- 12% of total assets -- at market value. Mr. Aragon commented to BNamericas, "We don't think this will happen again as these bonds are already priced at default." A "good chunk" of Banco Santander's exposure to government- backed securities is composed of a guaranteed government bond due in 2020, which yields a 9.6% real yearly interest rate, BNamericas states. Banco Santander Rio S.A. is headquartered in Buenos Aires, Argentina. The bank had ARS$16.2 billion (US$5.3 billion) in total assets and ARS$12.6 billion (US$4.1 billion) in deposits as of December 2006. * * * As reported in the Troubled Company Reporter-Latin America on April 19, 2007, Moody's Investors Service assigned a Ba2 local currency debt rating to Banco Santander Rio S.A.'s ARS$450 million notes that are due in 2010 issued under the program of US$250 million. Moody's also assigned Aaa.ar national scale local currency debt rating to the notes. These ratings were assigned to Banco Santander's ARS$450 million Senior Unsecured Notes: -- Long-term local currency debt rating: Ba2, stable outlook -- National scale local currency debt rating: Aaa.ar BLAY SRL: Proofs of Claim Verification Deadline Is Dec. 20 ---------------------------------------------------------- Gerardo Miguel Seghezzo, the court-appointed trustee for Blay S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 20, 2007. Mr. Seghezzo will present the validated claims in court as individual reports on March 5, 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 Blay 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 Blay's accounting and banking records will be submitted in court on April 18, 2008. Mr. Seghezzo is also in charge of administering Blay's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Gerardo Miguel Seghezzo Combate de los Pozos 129 Buenos Aires, Argentina BEST SERVICE: Files for Reorganization Petition in Buenos Aires --------------------------------------------------------------- The Best Service S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow The Best Service to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: The Best Service S.A. Nogoya 5173, Piso 1 Departamento 6 Buenos Aires, Argentina COCTIN SA: Proofs of Claim Verification Is Until Feb. 25 -------------------------------------------------------- Ester Alicia Ferraro, the court-appointed trustee for Coctin S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 25, 2007. Ms. Ferraro will present the validated claims in court as individual reports on April 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 Coctin and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Coctin's accounting and banking records will be submitted in court on May 23, 2008. Ms. Ferraro is also in charge of administering Coctin's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Coctin S.A. Tucuman 861 Buenos Aires, Argentina The trustee can be reached at: Ester Alicia Ferraro Esmeralda 960 Buenos Aires, Argentina COOPERATIVA DE TRABAJO: Claims Verification Ends Feb. 25, 2008 -------------------------------------------------------------- Gabriel Marcelo Ail, the court-appointed trustee for Cooperativa de Trabajo Lacteos Monte Castro Ltda.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 25, 2008. Mr. Ail will present the validated claims in court as individual reports on April 11, 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 Cooperativa de Trabajo 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 Cooperativa de Trabajo's accounting and banking records will be submitted in court on May 23, 2008. Mr. Ail is also in charge of administering Cooperativa de Trabajo's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Gabriel Marcelo Ail Avenida Cordoba 1352 Buenos Aires, Argentina DELTA AIR: Shareholder Wants Merger with United Airlines -------------------------------------------------------- The Chicago Tribune reports that hedge fund Pardus Capital Management LP, a major shareholder of Delta Air Lines and United Airlines, wants a merger between the two carriers. The Tribune relates that Pardus Capital sent a letter asking Delta Air to merge with United Airlines' parent company UAL Corp., "or risk returning to bankruptcy." According to the Tribune, the merger is appealing to Delta Air and United Airlines, leading to some informal negotiations. However, both Delta Air and United Airlines denied to the Tribune that a deal is being negotiated. Delta Air Chief Executive officer said in a statement, "There have been no talks with United [Airlines] regarding any type of consolidation transaction, and there are no such ongoing discussions." Delta Air, however, told the Tribune that it wasn't completely opposed to the merger and that it has created a board committee to review possible deals. "Delta [Air] believes that the right consolidation transaction could generate significant value for our shareholders and employees, and that strategic options should be evaluated," Mr. Anderson commented to the Tribune. Principals at Pardus Capital have been talking about the benefits of mergers with Delta Air, United Airlines and other industry players, "as airline stocks have languished and oil prices reaching US$100 per barrel, the Tribune says, citing sources. Pardus Capital holds 4.8% of United Airlines and 3% of Delta Air. However, it is still not in a position to broker the deal that a major airline merger would entail, as that work would have to be handled directly by the carriers. The report says that Pardus Capital, by telling the public about its concerns about high oil costs and its merger analysis, increased pressure on Delta Air, United Airlines and other US carriers to consider striking deals or coming up with strategies to deal with the deteriorating conditions that threaten the airlines' financial recoveries. William Swelbar, a research engineer with the Massachusetts Institute of Technology's Center for Air Transportation, commented to the Tribune, "Whether this one is real or not, the conversation begins in earnest. The catalyst has been revealed: the price of oil." The Tribune notes that Pardus Capital hired former Continental Airlines Chief Executive Officer Gordon Bethune as an adviser and market research company Simat, Helliesen & Eichner to evaluate possible deals for Delta Air. Pardus Capital expects that a merger with United Airlines would produce US$585 million in synergies. United Airlines spokesperson Jean Medina told the Tribune, "We make decisions in the best interest of United [Airlines], and we don't comment on the opinion of one shareholder, or the actions or hypothetical transactions proposed by others." Unions in both Delta Air and United Airlines are against the merger, the Tribune says. United Airlines' pilots union chairperson Mark Bathurst said in a statement, "All interested parties should understand that any plans to merge or consolidate with Delta or any other carrier will not be met with a rubber stamp from this pilot group." According to the Tribune, getting authorization for the merger from federal antitrust authorities wouldn't be easy, especially since Delta Air "raised that issue to fend off a hostile takeover bid from US Airways early this year." However, an antitrust expert believes that regulators might be persuaded by "harsh economic environment that major carriers must navigate," the Tribune relates. Joel Chefitz, a lawyer at McDermott Will & Emery, commented to the Tribune, "I think the climate for getting an airline merger through right now is a lot better than it was when United failed to acquire US Airways." Mr. Chefitz told the Tribune that once Delta Air and United Airlines show that a merger would significantly lessen operating costs "in the face of astronomical fuel prices, they would have a very persuasive argument." Meanwhile, CreditSights Inc. airline analyst Roger commented to the Tribune, "I think it will lead to greater investor discouragement. Basically, merger economics and synergies are the Holy Grail [for investors]. But they remain a long-term possibility. The short term is clouded by oil prices." About United Airlines UAL Corporation is a holding company whose principal subsidiary is United Air Lines, Inc. United's operations consist primarily of the transportation of persons, property and mail throughout the United States and abroad, and it accounted for most of UAL's revenues during the year ended Dec. 31, 2006. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. As of June 30, 2005, the company's balance sheet showed US$21.5 billion in assets and US$28.5 billion in liabilities. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 2007, the Court confirmed the Debtors' plan. (Delta Bankruptcy News, Issue No. 83; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) KEY ENERGY: Prices US$425MM Private Offering of 8.375% Sr. Notes ---------------------------------------------------------------- Key Energy Services, Inc. has priced a private offering of US$425 million in aggregate principal amount of 8.375% Senior Notes due 2014. The notes were priced at 100% of their face value to yield 8.375%. Interest is payable on June 1 and December 1 of each year, beginning June 1, 2008. The notes will be fully and unconditionally guaranteed by certain of the company's domestic subsidiaries. The company intends to use the net proceeds of the private placement to retire its outstanding US$393 million Tranche C Term Loans under its existing senior secured credit facility and for general corporate purposes. The closing of the senior notes offering is expected to occur on Nov. 29, 2007, and is subject to customary closing conditions. The notes will not initially be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act. The notes may be resold by the initial purchasers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S. Key Energy Services, Inc. (NYSE: KEG) is the world's largest rig-based well service company. The company provides oilfield services including well servicing, pressure pumping, fishing and rental tools, electric wireline and other oilfield services. The company has operations in all major onshore oil and gas producing regions of the continental United States and internationally in Argentina and Mexico. * * * As reported in the Troubled company Reporter on Nov. 7, 2007, Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating and stable outlook to well-servicing company Key Energy Services Inc. At the same time, S&P assigned a 'B' rating to the company's proposed US$400 million senior notes due 2017. MINCS-LIBERTY: Proofs of Claim Filing Deadline Is Nov. 29 --------------------------------------------------------- Mincs-Liberty, Ltd.'s creditors are given until Nov. 29, 2007, to prove their claims to Phillip Hinds and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Mincs-Liberty's shareholders agreed on Oct. 17, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Phillip Hinds Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands NOTRIN SA: Proofs of Claim Verification Ends Feb. 29, 2008 ---------------------------------------------------------- Sergio Leonardo Novick, the court-appointed trustee for Notrin SA's bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 29, 2008. Mr. Novick will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 11, 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 Notrin 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 Notrin's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Novick is also in charge of administering Notrin's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Notrin SA Lavalle 1566 Buenos Aires, Argentina The trustee can be reached at: Sergio Leonardo Novick Libertad 359 Buenos Aires, Argentina QUANTIMIX XL FUND: Proofs of Claim Filing Is Until Nov. 29 ---------------------------------------------------------- Quantimix XL Fund's creditors are given until Nov. 29, 2007, to prove their claims to Muriel Bonnet, 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. Quantimix XL's shareholder agreed on Oct. 15, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Muriel Bonnet rue d'Astorg 75008 Paris, France QUANTIMIX XL MASTER: Proofs of Claim Filing Deadline Is Nov. 29 --------------------------------------------------------------- Quantimix XL Master Fund's creditors are given until Nov. 29, 2007, to prove their claims to Muriel Bonnet, 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. Quantimix XL's shareholder agreed on Oct. 15, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Muriel Bonnet rue d'Astorg 75008 Paris, France REVS LIMITED: Proofs of Claim Filing Ends on Nov. 29 ---------------------------------------------------- Revs Limited's creditors are given until Nov. 29, 2007, to prove their claims to Martin Couch and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Revs' shareholders agreed on Oct. 17, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Martin Couch Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands SAISEI KAISYU: Proofs of Claim Filing Is Until Nov. 29 ------------------------------------------------------ Saisei Kaisyu Planning 2 Limited's creditors are given until Nov. 29, 2007, to prove their claims to Martin Couch and Jan Neveril, 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. Saisei Kaisyu's shareholders 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: Martin Couch Jan Neveril Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands SLE LIMITED: Proofs of Claim Filing Is Until Nov. 29 ---------------------------------------------------- SLE Limited's creditors are given until Nov. 29, 2007, to prove their claims to Guy Major 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. SLE'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: Guy Major Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands SAVANNAH ALTERNATIVE: Proofs of Claim Filing Ends on Nov. 29 ------------------------------------------------------------ Savannah Alternative Investment Fund Ltd.'s creditors are given until Nov. 29, 2007, to prove their claims to Avalon Management Limited, 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. Savannah Alternative'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: Avalon Management Limited Third Floor, Zephyr House Mary Street, P.O. Box 1180 Grand Cayman KY1-1108, Cayman Islands Contact for inquiries: Mourant du Feu & Jeune (Ref: JAPF) c/o P.O. Box 1348, Grand Cayman KY1-1108 Cayman Islands Telephone: (+1) 345 949 4123 Fax: (+1) 345 949 4647 VEGA GLOBAL: Sets Final Shareholders Meeting for Nov. 29 -------------------------------------------------------- Vega Global 3X Feeder Limited will hold its final shareholders meeting on Nov. 29, 2007, at 9:30 a.m. at: Deloitte Fourth Floor, Citrus Grove P.O. Box 1787, George Town Grand Cayman These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. Vega Global's shareholders agreed to place the company into voluntary liquidation under The Cayman Islands' Companies Law 2007 Revision). The liquidator can be reached at: Stuart Sybersma Mervin Solas Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Telephone: (345) 949-7500 Fax: (345) 949-8258 VEGA GLOBAL 3X: Will Hold Final Shareholders Meeting on Nov. 29 --------------------------------------------------------------- Vega Global 3X Master Limited will hold its final shareholders meeting on Nov. 29, 2007, at 10:00 a.m. at: Deloitte Fourth Floor, Citrus Grove P.O. Box 1787, George Town Grand Cayman These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. Vega Global's shareholders agreed to place the company into voluntary liquidation under The Cayman Islands' Companies Law 2007 Revision). The liquidator can be reached at: Stuart Sybersma Mervin Solas Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Telephone: (345) 949-7500 Fax: (345) 949-8258 VEGA INT'L: Holding Final Shareholders Meeting on Nov. 29 --------------------------------------------------------- Vega International Fund SPC Limited will hold its final shareholders meeting on Nov. 29, 2007, at 10:30 a.m. at: Deloitte Fourth Floor, Citrus Grove P.O. Box 1787, George Town Grand Cayman These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. Vega International's shareholders agreed to place the company into voluntary liquidation under The Cayman Islands' Companies Law 2007 Revision). The liquidator can be reached at: Stuart Sybersma Mervin Solas Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Telephone: (345) 949-7500 Fax: (345) 949-8258 * ARGENTINA: Secures US$100-Million Financing from IDB ------------------------------------------------------ The Inter-American Development Bank has approved a US$100 million loan for a multiphase program for the development of basic infrastructure to support production in province of Entre R�os, Argentina. This program will promote the development and competitiveness of the economy of Entre R�os, situated between the Paran and Uruguay rivers in the Argentine Mesopotamia. The first phase of the program will focus on basic economic infrastructure -- roads, electricity and ports -- to support production and related activities to promote development of the local productive sector. The program will also finance institutional strengthening and improvements in the management capacity of sector agencies. "The project will help increase the competitiveness of the productive sector due to lower transaction costs associated with road transportation; increased production due to greater regional connectivity; and availability of electric power in areas in agroindustrial expansion," said IDB project team leader Vera Lucia Vicentini. "The consolidation of supply chains will allow a change in the productive profile and the growth of business opportunities." The Ministry of Economy of Entre R�os will carry out the program. The loan is for a 25-year term, with a four and a half year grace period, at a variable interest rate. Local counterpart funds will total US$25 million. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 ============= B A H A M A S ============= METROPOLITAN BANK: 3rd Quarter Profit Falls 5.56% to PHP1.7 Bil. ---------------------------------------------------------------- The Metropolitan Bank & Trust Co.'s consolidated income statements show that the company's net income for the third quarter of 2007 decreased 5.56% from last year's PHP1.856 billion to PHP1.752 billion. For the quarter ended September 30, 2007, the bank earned a net interest income of PHP5.374 billion on an interest income of PH9.539 billion and interest expenses of PHP4.164 billion. Other income for the quarter is at PHP3.314 billion and other expenses are at PHP5.606 billion. The bank also made a PHP869.193 million provision for impairment and credit losses. The bank's nine-month period net profit, on the other hand, grew 19.97% to PHP5.8 billion from a year ago's PHP4.834 billion. For the January-September 2007 period, the bank earned a net interest income of PHP12.435 billion on interest income of PHP28.354 billion and PHP15.919 billion in interest expenses. The bank's other income is recorded to be at PHP11.619 billion while other expenses is at PHP16.792 billion. The bank also has a provision of PHP3.148 billion for impairment and credit losses. As of September 30, 2007, the bank had total assets of PHP673.84 billion and total liabilities of PHP601.304 billion, resulting in a total equity of PHP68.73 billion. The company's third quarter and nine-month financial statements can be downloaded for free at: http://www.pse.com.ph/html/ListedCompanies/pdf/2007/MBT_17Q_Sep2 007.pdf Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * As reported on Nov. 6, 2006, that Moody's Investors Service revised the outlook of Metropolitan Bank & Trust Co.'s foreign currency long-term deposit rating of B1 and foreign currency subordinated debt rating of Ba3 from negative to stable. The outlooks for Metropolitan Bank's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of D remain stable. On Sept. 21, 2006, Fitch Ratings upgraded Metrobank's Individual rating to 'D' from 'D/E'. All the bank's other ratings were affirmed: * Long-term Issuer Default rating 'BB-' -- with a stable Outlook; * Short-term rating 'B'; and * Support rating '3. On March 3, 2006, Standard and Poor's Rating Service assigned a CCC+ rating on Metrobank's US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. ============= B E R M U D A ============= ABH 10: Proofs of Claim Filing Deadline Is Nov. 30 -------------------------------------------------- ABH 10 Limited's creditors are given until Nov. 30, 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. ABH 10's shareholder agreed on Nov. 14, 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 (II): Proofs of Claim Filing Is Until Nov. 30 --------------------------------------------------------------- Aircastle Bermuda Holding II Limited's creditors are given until Nov. 30, 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. 13, 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 (III): Proofs of Claim Filing Ends on Nov. 30 --------------------------------------------------------------- Aircastle Bermuda Holding III Limited's creditors are given until Nov. 30, 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. 13, 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 (IV): Proofs of Claim Filing Ends Nov. 30 ----------------------------------------------------------- Aircastle Bermuda Holding IV Limited's creditors are given until Nov. 30, 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. 13, 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 (V): Proofs of Claim Filing Is Until Nov. 30 -------------------------------------------------------------- Aircastle Bermuda Holding V Limited's creditors are given until Nov. 30, 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. 13, 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 FOSTER WHEELER: Subsidiary Reaches Accord with NTR Acquisition -------------------------------------------------------------- Foster Wheeler Ltd.'s subsidiary Foster Wheeler USA Corporation, part of its Global Engineering and Construction Group, has signed an agreement with NTR Acquisition Co. to perform initial engineering work on planned projects at Kern Oil & Refining Co., pending the closing of NTR's acquisition of Kern. Kern's refinery is located in Bakersfield, California. The terms of the agreement were not disclosed and bookings will be made as work packages are released by NTR. Foster Wheeler expects that the first work will not be released by NTR until after the acquisition closes. NTR anticipates the acquisition of Kern closing in in the first quarter of 2008. "Foster Wheeler is pleased to have been selected by NTR's experienced management team to commence engineering projects for the Kern facility," said Troy Roder, president and chief executive officer of Foster Wheeler USA Corporation. "NTR's management has successfully executed such projects with Foster Wheeler in the past and we look forward to collaborating with NTR in this important undertaking within the company's growth strategy in heavy crude oil refining." "Our agreement with Foster Wheeler is a significant first initiative in the future transformation of Kern's facility into a world-class heavy crude oil refinery," said Mario E. Rodriguez, chief executive officer of NTR. "Our acquisition of Kern effectively launches the platform for NTR's growth strategy and we are prepared to quickly implement our plans for additional investment in Kern's operations." NTR Acquisition Co. is a special purpose acquisition company focused on the petroleum refining and marketing industry. On Nov. 5, 2007, NTR had signed agreements to acquire Kern, a privately held independent petroleum refining and marketing company, from Casey Co., Kern's sole shareholder. As part of the acquisition, NTR expects to make strategic capital investments in Kern's refinery operations to expand its conversion capacity and to improve its product yield. Foster Wheeler's work will initially concentrate on engineering assessments in advance of specific projects, which are expected to include the addition of a transmix splitter, isomerization unit, hydrocracker and delayed coker to the refinery. The acquisition, which was unanimously approved by NTR's board of directors, is subject to NTR shareholder approval, applicable regulatory approvals and other customary closing conditions. About NTR Acquisition NTR is a special purpose acquisition company organized under the laws of the State of Delaware on June 2, 2006. NTR was formed to acquire, through a merger, capital stock exchange, asset acquisition or other similar business combination, one or more businesses or assets in the energy industry, with a particular focus on businesses or assets involved in the refining, distribution and marketing of petroleum products in North America. About Kern Oil Kern Oil & Refining Co. is an independent petroleum refining and marketing company with its refinery facility located in Bakersfield, California. The company's primary products include California-approved diesel fuel and gasoline, atmospheric gas oil, fuel oil and aliphatic solvents, which are marketed mainly in California and its neighboring states. Kern processes primarily San Joaquin Valley and Kern County, California, crude oils. Kern qualifies for state and federal "small refiner" status. Kern employs about 110 people and is committed to providing a safe working environment for its employees while working diligently to provide cleaner fuels. About Foster Wheeler Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter on Dec. 18, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the company. The company had about US$217 million of total debt at Sept. 29, 2006. FOSTER WHEELER: Subsidiary Bags Contract from LUKOIL Energy ----------------------------------------------------------- Foster Wheeler Ltd.'s subsidiary of its Global Power Group has been awarded a contract for a 70 MWe (gross megawatt electric) circulating fluidized-bed steam generator by LUKOIL Energy & Gas Romania s.r.l., a subsidiary of LUKOIL OAO. The new combined heat and power plant will be located in LUKOIL's oil refinery in Ploiesti, Romania. Foster Wheeler has received a full notice to proceed on this contract. The terms of the contract, which were not disclosed, will be included in the company's fourth-quarter 2007 bookings. Foster Wheeler will design and supply the CFB steam generator and auxiliary equipment for the boiler island. The plant will be designed to burn petcoke and up to 20% heavy fuel oil. Commercial operation is scheduled for early in 2010. "We are very pleased to be given this opportunity by LUKOIL, one of Russia's largest vertically integrated oil companies," said James E. Stone, president and chief executive officer of Foster Wheeler Power Group Europe. "The award is further evidence that the fuel flexibility of CFBs appeals to clients globally across a full spectrum of power generation needs in a wide variety of utility and industrial applications." About Foster Wheeler Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter on Dec. 18, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the company. The company had about US$217 million of total debt at Sept. 29, 2006. =========== B E L I Z E =========== FLOWSERVE CORP: Paying US$0.15 Per Share Dividend on Jan. 8 ----------------------------------------------------------- Flowserve Corp.'s Board of Directors has authorized the payment of a quarterly cash dividend of 15 cents per share on the company's outstanding shares of common stock. The dividend is payable on Jan. 9, 2008, to shareholders of record as of the close of business on Dece. 26, 2007. While Flowserve currently intends to pay regular quarterly dividends for the foreseeable future, any future dividends will be reviewed individually and declared by the Board at its discretion, dependent on the Board's assessment of the company's financial condition and business outlook at the applicable time. About Flowserve Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) -- http://www.flowserve.com/-- provides fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. In Latin America, Flowserve operates in 36 countries such as the Dominican Republic, Guatemala, Guyana and Belize. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 20, 2007, Moody's Investors Service affirmed Flowserve Corporation's corporate family rating at Ba3 and probability of default at B1. Moody's also affirmed the Ba2 rating to the company's senior secured term loan and assigned a Ba2 rating to Flowserve's senior secured revolving credit facility. ============= B O L I V I A ============= AGILENT TECH: Board Okays US$2-Billion Share-Repurchase Program --------------------------------------------------------------- Agilent Technologies Inc.'s Board of Directors has approved a share-repurchase program of up to US$2 billion of its common stock over the next two years. Agilent completed its previous US$2 billion share buyback in October, bringing its cumulative repurchases to US$6.466 billion since the program's inception in 2005. "The Board's decision reflects our confidence in Agilent's operating model and strong cash flow," said Bill Sullivan, Agilent president and chief executive officer. "It also demonstrates our continuing commitment to return excess cash to the owners." Agilent anticipates the share-repurchase program will be implemented using a variety of methods, which may include open- market purchases, block trades, accelerated share-repurchase transactions or otherwise, or by any combination of such methods. The number of shares to be repurchased and the timing of any repurchases will depend on factors such as the stock price, economic and market conditions, and corporate and regulatory requirements. The stock-repurchase program may be suspended or discontinued at any time. About Agilent Tech Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/ -- is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. The company has operations in India, Argentina, Puerto Rico, Bolivia, Paraguay, Venezuela, and Luxembourg, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 26, 2007, Moody's Investors Service has assigned a Ba1 rating to Agilent Technologies, Inc.'s proposed offering of US$500 million senior notes due 2017 and affirmed its existing ratings and stable outlook. AGILENT TECH: Earns US$180 Million in 4th Quarter Ended Oct. 31 --------------------------------------------------------------- Agilent Technologies Inc. reported orders of US$1.48 billion for the fourth fiscal quarter ended Oct. 31, 2007, 6 percent above one year ago. Revenues during the quarter were US$1.45 billion, 9 percent above last year. Fourth quarter GAAP net income was US$180 million. Last year's fourth quarter GAAP net income from continuing operations was US$126 million. Included in this quarter's GAAP income is US$36 million of share-based compensation expense. Excluding this item and US$10 million of other net adjustments, Agilent reported fourth quarter adjusted net income of US$206 million. On a comparable basis, the company earned US$190 million one year ago. "Agilent had a good fiscal fourth quarter, especially considering the continued divergent trends of our markets," said Bill Sullivan, Agilent president and chief executive officer. "Bio-analytical markets were strong in both Chemical Analysis and Life Sciences, and across all geographies. Electronic measurement markets were very mixed, with strength in aerospace/ defense and wireless R&D, a flat profile for wireless handset and electronic manufacturing test, and weakness in computer and semiconductor markets." Total fourth quarter revenues were up 9 percent from last year to US$1.45 billion. Adjusted net income per share, at US$0.53, was 18 percent above last year's results and near the top of the US$0.50 - US$0.54 guidance range. Mr. Sullivan noted that the Bio-Analytical segment grew at a double-digit pace for the sixth consecutive quarter, and that the segment operating margin was at a record level. "We are seeing sustained strength in our new Liquid Chromatograph, Mass Spectroscopy and Gas Chromatograph platforms, and Stratagene integration activities continue to go well. Last week, we announced the acquisition of Velocity11, adding lab automation to our expanding workflow solutions." "While the Electronic Measurement segment was flat overall, we saw good growth in those areas where we have invested in specific growth initiatives, such as aerospace / defense and wireless R&D," said Mr. Sullivan. Fourth quarter Return on Invested Capital reached a new high of 30 percent, a point better than last year's strong performance. Both Receivables Days-Sales-Outstanding and Inventory Days-On- Hand reached new historic lows. Cash generated from operating activities was US$398 million in the fourth quarter. During the period, the company repurchased US$631 million of its common stock, completing its US$2 billion buyback program. Full fiscal 2007 revenues grew 9 percent to US$5.4 billion. Adjusted net income per share rose 22 percent to US$1.82. Return on Invested Capital reached 27 percent, and cash generated from operating activities during fiscal 2007 was US$969 million. Said Mr. Sullivan, "Today, Agilent's Board of Directors authorized a new program to repurchase up to US$2 billion of Agilent's common shares, reflecting its confidence in Agilent's ability to create superior shareholder value, leveraging our operating model through higher sustainable growth." Looking ahead, Sullivan said the company was comfortable with the range of analyst estimates for FY2008 revenues and adjusted net income per share. For the fiscal first quarter of 2008, revenues are expected to be in the range of US$1.35 billion to US$1.40 billion, up 5 percent to 9 percent from last year. Comparisons of this year's first quarter adjusted net income will be affected by a change in the timing of Agilent's annual compensation awards program, and by a shift toward more variable compensation. Compared to last year, about US$32 million more compensation-related expense will be recognized in First Quarter Fiscal Year 20008. That US$0.06 per share cost increase will be offset by a US$0.04 reduction in Q2 expense, and by US$0.01 reductions in FY08's third quarter and fourth quarter. Reflecting this changed pattern of compensation expense, first quarter adjusted net income is expected to be in the range of US$0.38 to US$0.43 per share, 15 percent to 30 percent above last year's comparable earnings. About Agilent Tech Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/ -- is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. The company has operations in India, Argentina, Puerto Rico, Bolivia, Paraguay, Venezuela, and Luxembourg, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 26, 2007, Moody's Investors Service has assigned a Ba1 rating to Agilent Technologies, Inc.'s proposed offering of USUS$500 million senior notes due 2017 and affirmed its existing ratings and stable outlook. =========== B R A Z I L =========== ARVINMERITOR INC: Posts US$30MM Net Loss in Qtr. Ended Sept. 30 ---------------------------------------------------------------- ArvinMeritor, Inc., has reported financial results for its full fiscal year and fourth quarter ended Sept. 30, 2007. Fiscal Year 2007 Highlights -- Sales from continuing operations for fiscal year 2007 were US$6.4 billion, up US$34 million, compared to fiscal year 2006. -- On a GAAP basis, net loss from continuing operations was US$30 million, or US$0.43 per diluted share. -- Earnings per share from continuing operations for fiscal 2007, before special items, were US$0.53 per diluted share. -- Net debt was reduced by US$146 million during the fiscal year despite negative free cash flow of US$113 million. Fourth-Quarter Highlights -- Fourth-quarter sales were US$1.6 billion, flat from the same period last year. -- On a GAAP basis, net loss from continuing operations was US$23 million, or US$0.32 per diluted share. -- Fourth-quarter loss from continuing operations, before special items, was US$4 million, or US$0.06 per diluted share. -- Free cash flow of US$178 million, and a US$215 million reduction in net debt, for the fourth quarter of fiscal year 2007. "Despite the solid progress we are making in implementing our strategic initiatives, our results this quarter were negatively impacted by weaker than anticipated North American truck production and the continuing capacity challenges in our European truck operations," said Chairman, Chief Executive Officer and President Chip McClure. "Going forward, we believe European capacity issues will be less severe due to actions we are taking to implement lean manufacturing improvements and bring new suppliers into the pipeline. "Following this period of extended softness in the North American truck market, we expect to see a rebound as the industry gradually returns in 2008. In Europe, we look forward to continued strong sales volumes, and in Asia and South America, we expect volumes to grow significantly." Fourth-Quarter Results 2007 For the fourth quarter of fiscal year 2007, ArvinMeritor posted sales of US$1.6 billion, flat over the same period last year. Sales reflect the continued downturn in Class 8 North American truck sales offset by stronger volumes in other regions. Operating income in the fourth quarter of 2007, before special items, was US$8 million, compared to operating income, before special items, of US$56 million in the prior year's fourth quarter. Loss from continuing operations during the fourth quarter of fiscal year 2007, before special items, was US$4 million, or US$0.06 per diluted share, compared to income from continuing operations, before special items, of US$29 million, or US$0.41 per diluted share, a year ago. Fourth-quarter results reflect reduced North American volumes and significant premium costs associated with record European volumes. Special items included costs associated with supplier reorganizations, restructuring expenses and certain non- recurring tax charges. Combined, these items accounted for approximately US$0.26 per share of additional expense in the fourth quarter. For the fourth quarter of 2007, ArvinMeritor reported positive free cash flow of US$178 million. Fourth-Quarter Accomplishments Accomplishments in the fourth fiscal quarter of 2007 include: -- Sourced as the supplier on the majority of the Mine Resistant Ambush Protected (MRAP) vehicles awarded thus far, with additional potential upside as new awards are announced. -- Entered into arrangement with Chery Motors in China that the company expects will ramp up to anticipated sales of US$150 million annually by 2010. -- Announced closure of four additional manufacturing facilities in North America, as part of previously announced restructuring actions. -- Awarded new business to supply more than four million window regulator motors annually to Hyundai Motor Company worldwide. Outlook for 2008 The company's fiscal year 2008 forecast for light vehicle sales is 16 million vehicles in North America and 17 million vehicles in Western Europe. The company's light vehicle outlook is now based on expected sales volume, rather than production forecasts, as in the past. ArvinMeritor's forecast for North American Class 8 truck production is in the range of 210,000 to 230,000 units in fiscal year 2008. The forecast for heavy and medium truck volumes in Western Europe is in the range of 530,000 to 540,000 units. ArvinMeritor's 2008 sales are expected to be in the range of US$6.8 billion to US$7.0 billion, and full-year diluted earnings per share are expected to be in the range of US$1.40 to US$1.60. This guidance excludes gains or losses on divestitures, restructuring costs, and other special items, including any extended customer shutdowns or production interruptions. "We are encouraged by our prospects for 2008," concluded Mr. McClure. "We anticipate that our Performance Plus initiatives, combined with the aggressive internal programs we have implemented to drive cost reductions, will help to mitigate the soft market conditions in the first half of fiscal year 2008. We are on track to generate US$75 million in cost savings in 2008 and US$150 million in annual cost savings by 2009." About ArvinMeritor Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs about 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. * * * As reported in the Troubled Company Reporter on Oct. 9, 2007, Fitch Ratings downgraded its ratings on ArvinMeritor Inc. including Issuer Default Rating to 'BB-' from 'BB'; Senior secured revolver to 'BB' from 'BB+'; and Senior unsecured notes to 'B+' from 'BB-'. Fitch said the rating outlook is negative. Standard & Poor's Ratings Services lowered its corporate credit rating and related ratings on ArvinMeritor Inc. to 'B+' from 'BB-'. S&P said the outlook is negative. Moody's Investors Service downgraded ArvinMeritor's Corporate Family Rating to B1 from Ba3 and maintained the outlook at stable. Moody's also lowered its ratings on the company's secured bank obligations (to Ba1, LGD-1, 8% from Baa3, LGD-2, 13%) and unsecured notes (to B2, LGD-4, 63% from B1, LGD-4, 63%). The Probability of Default is changed to B1 from Ba3, while the company's Speculative Grade Liquidity rating remains SGL-2. Moody's said the outlook is stable. BANCO NACIONAL: Companhia Paranaense Applies for Plant Funding -------------------------------------------------------------- Companhia Paranaense de Energia's investor relations officer Paulo Roberto Trompczynski said in a Web cast that the firm is negotiating to secure a loan from Banco Nacional de Desenvolvimento Economico e Social for the construction of a 361-megawatt, BRL950-million Maua hydro plant. Mr. Trompczynski told Business News Americas that the Brazilian government could decide on the funding during the federal monetary council meeting set for Nov. 20, 2007. According to BNamericas, Companhia Paranaense has partnered with federal power firm Eletrosul on the Maua plant project. BNamericas notes that Maua is part of the federal government's growth acceleration program, which grants projects "access to favorable financing conditions." State-run firms face restrictions in getting loans from Banco Nacional, BNamericas notes, citing Mr. Trompczynski. Mr. Trompczynski commented to BNamericas, "Eletrosul was granted special authorization from the mines and energy ministry to get the loan for Maua. We are making the same request and waiting for an answer." Banco Nacional will borrow about BRL700 million for Maua, BNamericas states, citing Eletrosul. About Companhia Paranaense Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/-- (NYSE: ELP/LATIBEX: XCOP/BOVESPA: CPLE3, CPLE5, CPLE6) transmits and distributes electricity to more than 3 million customers in the state of Parana and has a generating capacity of nearly 4,600 MW, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitely postponed. In response, COPEL is re-evaluating its corporate structure. The government of Parana controls about 59% of COPEL. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007, respectively. BANCO CRUZEIRO: Reports BRL64.9 Million Net Income in Third Qtr. --------------------------------------------------------------- Banco Cruzeiro do Sul S.A. has announced its results for the third quarter of 2007. Highlights -- Third quarter 2007 net income totaled BRL64.9 million, forecasting an average annualized ROAE of 26.6%, without considering the IPO non-recurring expense occurred in the second quarter of 2007. -- In the 3T07, gross income from financial intermediation was BRL191.3 million, 97.6% higher than in the same period last year. -- The loan portfolio, including, accounts receivable and subordinated shares in FIDCs contained in the Securities balance sheet line, totaled BRL2,807.9 million, on Sept. 30, 2007, an increase of 214.4% year on year (BRL893.0 million). -- Paycheck-deductible personal loans recorded a consistent growth, with origination of BRL866.2 million in the third quarter 2007, and monthly average of BRL288.7 million, expanding by 97% against the third quarter 2006 (BRL439.6 million). -- The corporate loan portfolio in the middle-market segment posted consistent growth to BRL298.2 million in the hird quarter 2007, 75.5% up on the third quarter 2006 (BRL169.9 million). -- The paycheck-deductible credit card reached 579,928 cards issued in the third quarter 2007, up 123.5% on a year ago (259,458 cards). In September 2007, the volume financed was BRL113.2 million. Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul (Bovespa - CZRS4), a private-sector multiple bank with operations in the consumer segment, through paycheck-deductible loans to public employees and social security beneficiaries, and in the corporate segment, offering middle- market companies short-term loans usually backed by receivables. The bank's core business is lending to civil servants, with payments automatically deducted from payrolls. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 4, 2006, Moody's Investors Service upgraded Banco Cruzeiro do Sul SA's long-term foreign currency deposits to Ba3 from Ba1. Moody's said the rating outlook is stable. COMPANHIA PARANAENSE: Applies for Funding from Banco Nacional ------------------------------------------------------------- Companhia Paranaense de Energia's investor relations officer Paulo Roberto Trompczynski said in a Web cast that the firm is negotiating to secure a loan from Banco Nacional de Desenvolvimento Economico e Social for the construction of a 361-megawatt, BRL950-million Maua hydro plant. Mr. Trompczynski told Business News Americas that the Brazilian government could decide on the funding during the federal monetary council meeting set for Nov. 20, 2007. According to BNamericas, Companhia Paranaense has partnered with federal power firm Eletrosul on the Maua plant project. BNamericas notes that Maua is part of the federal government's growth acceleration program, which grants projects "access to favorable financing conditions." State-run firms face restrictions in getting loans from Banco Nacional, BNamericas notes, citing Mr. Trompczynski. Mr. Trompczynski commented to BNamericas, "Eletrosul was granted special authorization from the mines and energy ministry to get the loan for Maua. We are making the same request and waiting for an answer." Banco Nacional will borrow about BRL700 million for Maua, BNamericas states, citing Eletrosul. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. About Companhia Paranaense Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/-- (NYSE: ELP/LATIBEX: XCOP/BOVESPA: CPLE3, CPLE5, CPLE6) transmits and distributes electricity to more than 3 million customers in the state of Parana and has a generating capacity of nearly 4,600 MW, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitely postponed. In response, COPEL is re-evaluating its corporate structure. The government of Parana controls about 59% of COPEL. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2006, Moody's America Latina upgraded the corporate family rating of Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its Brazilian national scale. Moody's said the rating outlook is stable. This rating action concludes the review process initiated on July 26, 2006. Moody's upgraded these ratings: -- Corporate Family Rating: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); -- BRL500 million Senior Unsecured Guaranteed Debentures due 2007: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); and -- BRL400 million Senior Secured Guaranteed Debentures due 2009: to Ba1 from Ba2 (Global Local Currency) and to Aa1.br from A1.br (Brazilian National Scale). COMPANHIA DE SANEAMENTO: 3Q Net income Up 95.5% to BRL382.2 Mil. ---------------------------------------------------------------- Companhia de Saneamento Basico do Estado de Sao Paulo -- SABESP, has announced its results for the third quarter 2007. In the third quarter of 2007 net operating revenue totaled BRL1.5 billion, a 7.3% growth compared to the same period last year. Costs and expenses, in the amount of BRL914.8 million, were 0.1% lower than in the third quarter of 2006. Earnings before financial expenses (EBIT) climbed by 21.5%, from BRL474.9 million in the third quarter 2006 to BRL577.0 million in the third quarter 2007. EBITDA moved up by 17.0%, from BRL626.4 million in the third quarter 2006 to BRL732.8 million in the third quarter 2007. The EBITDA margin went up from 45.0% to 49.1%. Net income reached BRL382.2 million, up by 95.5% compared to the BRL195.5 million recorded in the third quarter of 2006. Gross operating revenue totaled BRL1.6 billion, up by BRL106.1 million, or 7.0%, over the third quarter 2006. The main reasons for this increase were: (i) the 2.6% increase in billed water and sewage volume, being 1.4% in the retail category and 15.2% in the wholesale; (ii) the 5.0% impact in the third quarter 2006 regarding the 6.7% tariff readjustment as of August 2006; and (iii) the 0.2% impact regarding the 4.1% tariff readjustment as of September 2007. Companhia de Saneamento Basico do Estado de Sao Paulo, aka SABESP (Bovespa: SBSP3; NYSE: SBS), is one of the largest water and sewage service providers in the world based on the population served in 2005. It operates water and sewage systems in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 12, 2007, Fitch Ratings has affirmed the 'BB' Local Currency and Foreign Currency Issuer Default Ratings and the Long-Term National Scale Rating 'A+(bra)' of Companhia de Saneamento Basico do Estado de Sao Paulo. In addition, Fitch has affirmed the 'BB' Long-Term International Rating for US$140 million in notes issued by the company, as well as the 'A+(bra)' on National Scale for its sixth debenture issuance. Fitch said the rating outlook is stable. COMPANHIA DE SANEAMENTO: To Initiate Deal with Sao Paulo State -------------------------------------------------------------- Companhia de Saneamento Basico do Estado de Sao Paulo -- SABESP, a company affiliated with the State of Sao Paulo Sanitation and Energy Secretariat, and the municipality of Sao Paulo will sign a partnership that, among other significant initiatives, may be considered the first step toward preparation of the cooperative partnership and agreement for a program between the municipality of Sao Paulo and the company -- pursuant to Law 11,445/07, which regulates the concession of water and sewage services. The agreement establishes: -- The implementation and continuation of the water and sewage services and environmental programs in several areas of the city -- such as Programa Corrego Limpo (Clean Creek Program), Programa Mananciais (Spring Water Program), the construction of the Parque da Integracao (Integration Park) and several environmental education iniatives; -- The adoption of the Programa de uso Racional da Agua - Pura (Rational Water Use Program - Pure) by municipality buildings, enabling their insertion into the public tariff category regulated by contract; -- That public and mixed-economy companies may participate in Sabesp's Program for Pre-Defined Demand Agreement; -- The definition of agreements to settle financial liabilities between the municipality of Sao Paulo and Sabesp; -- A work schedule for the preparation of the Cooperation Partnership and the Program Agreement between the municipality of Sao Paulo and Sabesp. By means of the partnership and joint work, the execution of this partnership aims to offer a solution for the issue of ownership of water and sewage services in metropolitan regions. The partnership may also set the example for similar resolutions, both in Sao Paulo and throughout Brazil. Companhia de Saneamento Basico do Estado de Sao Paulo, aka SABESP (Bovespa: SBSP3; NYSE: SBS), is one of the largest water and sewage service providers in the world based on the population served in 2005. It operates water and sewage systems in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 12, 2007, Fitch Ratings has affirmed the 'BB' Local Currency and Foreign Currency Issuer Default Ratings and the Long-Term National Scale Rating 'A+(bra)' of Companhia de Saneamento Basico do Estado de Sao Paulo. In addition, Fitch has affirmed the 'BB' Long-Term International Rating for US$140 million in notes issued by the company, as well as the 'A+(bra)' on National Scale for its sixth debenture issuance. Fitch said the rating outlook is stable. FIDELITY NATIONAL: Inks Exclusive Services Pact w/ Bankers Bank --------------------------------------------------------------- The Bankers Bank has signed an exclusive agreement to remarket Fidelity National Information Services, Inc.'s Corporate Capture and Remittance Processing payment services and Network Services. In addition, Fidelity will be the exclusive provider of credit card processing services to The Bankers Bank clients. This partnership expands the existing strategic relationship between FIS and The Bankers Bank. The Bankers Bank is a leading national correspondent bank chartered specifically to serve the needs of community financial institutions across the United States. The Bankers Bank currently serves more than 1,400 community financial institutions. "The Bankers Bank believes in the power of partnership," said Bankers Bank's president and chief executive officer, Tom Bryan. "When we started in 1986, we wanted to develop a superior suite of solutions for community banks. Our strategic alliance with FIS was formed 20 years ago to offer our community bank clients unrivaled core processing and item processing solutions. The expansion of our relationship with FIS for corporate payments is very complementary to our overall payment solutions strategy and allows The Bankers Bank to round out the suite of leading technology solutions that we provide to community banks." The Bankers Bank's strategic partnership with Fidelity National has been one of strategic growth for both companies over the last 20 years. Most recently, the financial institution converted to FIS' HORIZON(TM) core processing platform in 2005. Under the new agreement, The Bankers Bank will now exclusively leverage two of Fidelity National's strongest payment processing platforms. "With the largest footprint of networked capturing facilities (48 capture centers) and our large-volume credit card processing capabilities, FIS is best-equipped to provide leading payment solutions to clients of The Bankers Bank - particularly as it continues to expand its presence," said FIS' president of Integrated Financial Solutions division, Gary Norcross. "The comprehensive payment processing solutions provide financial institutions with faster funds, greater efficiency, reduced risks and more options from a single provider." About The Bankers Bank Headquartered in Atlanta, Georgia, The Bankers Bank -- http://www.bankersbank.com-- is a leading national correspondent bank chartered specifically to serve the needs of community financial institutions across the United States. The Bank has developed a comprehensive suite of products and services that include card services, payment solutions, lending, investments, consulting, insurance programs and technology outsourcing solutions. The Bankers Bank has grown to more than US$2 billion in assets, more than 380 employees, and a customer base in excess of 1,400 financial institutions, over the last two decades. In addition to the main office in Atlanta, Georgia, regional and loan production offices are located in Baltimore, Maryland; Birmingham, Alabama; Charlotte, North Carolina; Chicago, Illinois; Cincinnati, Ohio; Denver, Colorado; Los Angeles, California; Nashville, Tennessee; San Diego, California; San Francisco, California; Seattle, Washington, and Tampa, Florida. For more information about The Bankers Bank, visit the company website or call 800.277.2265. About Fidelity National Based in Jacksonville, Florida, Fidelity National Information Services, Inc. -- http://www.fidelityinfoservices.com/-- provides core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage related information products; and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals. FIS has processing and technology relationships with 35 of the top 50 global banks, including nine of the top ten. Nearly 50% of all US residential mortgages are processed using FIS software. FIS maintains a strong global presence, serving over 7,800 financial institutions in more than 60 countries worldwide, including Brazil and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services has placed its ratings, including the 'BB' corporate credit rating, on Fidelity National Information Services Inc. on CreditWatch with negative implications. Moody's Investors Service has placed Fidelity National Information Services' ratings on review for possible downgrade: -- US$1.6 billion First Lien Senior Secured Term Loan B Ba1 -- US$2.1 billion First Lien Senior Secured Term Loan A Ba1 -- US$900 million First Lien Senior Revolving Credit Facility Ba1 -- US$200 million 4.75% (Certegy) notes due September 2008 Ba1 -- Corporate Family Rating Ba1. FORD MOTOR: Johnson Controls Inks MOU to Buy Saline ACH Plant ------------------------------------------------------------- Johnson Controls Inc. signed a non-binding memorandum of understanding with Ford Motor Company to acquire the Saline, Michigan Automotive Components Holdings plant. Closure of the transaction is contingent upon the completion of a competitive labor agreement with the unionized employees at the plant as well as resolution of other issues needed to ensure the long term competitiveness of the operation. The Saline ACH plant manufactures interior components such as door panels, floor consoles, instrument panels, and cockpit systems for a variety of Ford Motor Company vehicles. "Through this agreement Johnson Controls would be able to provide further support to Ford Motor Company. This acquisition would also complement Johnson Controls' global growth plans for our interiors business by expanding our global interiors manufacturing capacity," said Jeff Williams, group vice president and general manager of North America for the Automotive Experience of Johnson Controls. "Our goals are to swiftly bring this operation to profitability, diversify its customer base, achieve synergies from the added volume and increase our share of the interiors market." "Automotive Components Holdings is focused on the fundamentals of manufacturing and delivering significant improvements in quality, delivery and cost at its operations," said Al Ver, CEO and COO of Automotive Components Holdings and Ford Motor Company vice president. "We are pleased to partner with Johnson Controls on a transition for our interiors business that is based on a sustainable business case." 2007 Plant Plans Under Ford's 2007 Hourly Labor Agreement with UAW regarding plant plans, the company's recovery plan assumed 16 North American plant closures. The closure of ten plants have been announced: St. Louis Assembly, Atlanta Assembly, Wixom Assembly, Windsor Casting, Norfolk Assembly, and Maumee Stamping. These plants are scheduled to be idle or closed: - Essex Engine - Scheduled to idle in 2007;