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 26, 2007, Vol. 8, Issue 234 Headlines A R G E N T I N A ALITALIA SPA: May Pick Winning Bidder by Mid-December 2007 ALITALIA SPA: Hikes Year-on-Year Traffic in October 2007 BIBLIOGRAFICA INTERNACIONAL: Claims Verification Ends Feb. 25 BOSTON SCIENTIFIC: Amends Pact to Settle Product Claims CARGUEZ SRL: Proofs of Claim Verification Is Until Feb. 21 DANILOR SA: Proofs of Claim Verification Deadline Is Feb. 28 EDITORIAL AL: Proofs of Claim Verification Is Until Feb. 14 EMPRESA DISTRIBUIDORA: Investing US$1B To Boost Distribution GNC SA: Trustee Verifies Proofs of Claim Until Feb. 26, 2008 KONINKLIJKE AHOLD: Earns EUR2.68 Bil. for First Nine Months 2007 LOGISTICA RUTA: Trustee Verifies Proofs of Claim Until Feb. 22 LONG REGENT: Trustee Verifies Proofs of Claim Until Feb. 29 OREANS SA: Proofs of Claim Verification Deadline Is Dec. 18 RAYCOL SA: Proofs of Claim Verification Deadline Is Feb. 14 ROBERTO DEMINGE: Proofs of Claim Verification Ends on March 3 SERVI TODO: Proofs of Claim Verification Is Until Dec. 31 SUCESION DE JUAN: Seeks for Reorganization Okay in Buenos Aires B E R M U D A ABH 10: Sets Final Shareholders Meeting for Dec. 17 ABH 11: Will Hold Final Shareholders Meeting on Dec. 17 AIRCASTLE BERMUDA: Sets Final Shareholders Meeting for Dec. 17 AIRCASTLE BERMUDA HOLDING: Final Shareholders Meeting Is Dec. 17 AIRCASTLE BERMUDA HOLDING IV: Shareholders Meeting Is on Dec. 17 AIRCASTLE BERMUDA HOLDING V: Shareholders Meeting Is on Dec. 17 JIBANA SA: Seeks for Reorganization Okay in Buenos Aires Court OLD MUTUAL: Sets Final Shareholders Meeting for Dec. 17 SCOTTISH RE: N.Y. Court Partially Dismisses Securities Suit B O L I V I A COEUR D'ALENE: Advisory Firms Recommend for Acquisition B R A Z I L AMERICAN AXLE: Paying US$0.15 Per Share Cash Dividend on Dec. 28 BANCO NACIONAL: Okays BRL283-Mil. Loan for Maua Jurong Shipyard EL PASO: El Paso Pipeline Closes Initial Public Offering EMBRATEL PARTICIPACOES: Investing US$600MM in WiMax Techonology FORD MOTOR: Russian Plant Workers Resume Strike GENERAL MOTORS: UAW Members Wary on GM's Exposure to ResCap Woes GERDAU AMERISTEEL: Moody's Affirms Ba1 Corporate Family Rating GERDAU SA: Moody's Affirms Corporate Family Rating at Ba1 INDEPENDENCIA SA: S&P Affirms Corporate Credit Rating at B NET SERVICOS: Reports BRL50-Mln Prepayment Due to Good Liquidity PETROLEO BRASILEIRO: Mr. Gabrielli Defends Biofuels Use * BRAZIL: Banco Nacional OKs BRL283M Loan for Petrobras' Tankers * BRAZIL: Petrobras Investing US$300 Mln in Offshore Exploration C A Y M A N I S L A N D S BASIS YIELD: Joint Provisional Liquidators Seek Summary Judgment BOMBAY CO: Court OKs Sale of Corporate Headquarters for US$16MM CABLE & WIRELESS: Excessive Executive Payout Angers Investors FRM WATER: Proofs of Claim Filing Deadline Is Dec. 1 KANAZAWA HOLDING: Proofs of Claim Filing Is Until Dec. 1 MUSIC PARTNERS: Proofs of Claim Filing Deadline Is Dec. 1 NT FUNDING: Proofs of Claim Filing Ends on Dec. 1 OTEMACHI CAPITAL: Proofs of Claim Filing Is Until Dec. 1 PINNAKELL ASIA: Proofs of Claim Filing Deadline Is Dec. 1 PINNAKELL ASIA ABSOLUTE: Proofs of Claim Filing Ends on Dec. 1 RYE SELECT: Proofs of Claim Filing Deadline Is Dec. 1 TRISTAR INT'L: Proofs of Claim Filing Deadline Is Dec. 1 C H I L E QUEBECOR WORLD: Market Status Cues Refinancing Plan Withdrawal C O L O M B I A ECOPETROL: Inks Pact with Merhav for Ethanol Project D O M I N I C A N R E P U B L I C AFFILIATED COMPUTER: Five Former Directors Drop Lawsuits AFFILIATED COMPUTER: Replacement Directors Join Board E C U A D O R PETROECUADOR: Says Crude Storage Almost Reaching Capacity Limit * ECUADOR: Rafael Correa Slams Oil Tax Raise Int'l Arbitration * ECUADOR: Threatens To Terminate America Movil Service Contract H A I T I * HAITI: Obtains US$25-Million Financing for Road Rehabilitation H O N D U R A S * HONDURAS: Seeks Congressional Okay on Bunker Fuel Import J A M A I C A AIR JAMAIKCA: Says Job Cuts Will be Last Resort MAAX HOLDINGS: Adopts Management Retention Plan G U A T E M A L A GOODYEAR TIRE: To Pay US$324MM Settlement to Entran II Class M E X I C O ATHLETES WORLD: Forzani Group Discloses Acquisition Plans P E R U * PERU: Inks 18 Oil & Gas Deals with Foreign Companies P U E R T O R I C O BADRAN STORES: Case Summary & 20 Largest Unsecured Creditors CONCHITA SUPERMARKET: Case Summary & 5 Largest Unsecured Lenders MOVIE GALLERY: Judge Tice Approves Store Closing Sales Process OSCAR ROJAS: Case Summary & Seven Largest Unsecured Creditors V E N E Z U E L A * VENEZUELA: Honduras Wants To Buy Bunker Fuel from Nation * VENEZUELA: Mr. Chavez Declares US$100 Per Barrel a Fair Price * BOND PRICING: For the Week Nov. 19 to Nov. 23 - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: May Pick Winning Bidder by Mid-December 2007 ---------------------------------------------------------- Alitalia S.p.A.'s Board of Directors acknowledged the progress made on the Company's project aimed at rapidly identifying industrial and financial subjects committed to carrying forward its restructuring, development and re-launching and, in such context, willing to acquire a majority shareholding in the Company, as reported by the Advisor Citi. In particular, Citi informed the Board that the discussions to enable the interested parties to present a non-binding proposal by next week are progressing. The Board will review the aforementioned offers in order to select a party for exclusive negotiations, after the financial and industrial aspects have been analyzed and evaluated by Alitalia's advisors. Within this framework and under the current circumstances, the Board meeting called to identify the interested party to begin exclusive negotiations with could be held within the first half of the coming month of December. 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. OAO Aeroflot, however, has decided not to take part in the privatization of the Italian carrier. TPG Capital, meanwhile, has informed it was unable to finalize an Italian-led consortium, but will continue to follow the developments of the sale. Alitalia has concluded that Cordata Baldassarre's bid is "no longer compatible" to its planned stake 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: Hikes Year-on-Year Traffic in October 2007 -------------------------------------------------------- Alitalia S.p.A.'s October 2007 traffic data compared to the same period in 2006 showed an increase in both passenger and cargo businesses. Passenger business showed an increase in terms of traffic (+1.0%) with a decrease of capacity offered by 1.0% compared with the same period of 2006. October 2007 Cargo statistics, compared to October 2006, showed an increase in terms of goods flown (+0.7%) with capacity offered down 5.9%. Passengers Operations Traffic, measured in Revenue Passenger Kilometers, increased by 1.0% and the capacity, measured in Available Seat Kilometers, decreased by 1.0%. Therefore load factor increased by 1.5 percentage points reaching 76.9%. Alitalia carried 2.2 million passengers, up 2.3% compared to the previous year. Detailed comparisons with October 2006: -- Domestic Passenger Network: traffic increased by 6.0% with offered capacity up 1.6%. Load factor was 66.9%; -- International Passenger Network: traffic increased by 0.9% and offered capacity decreased by 3.4%. Load factor was 72.7%; and -- Intercontinental Passenger Network: traffic decreased by 0.4% and capacity was in line with October 2006. Load factor was 84.1%. Cargo Operations October 2007 Cargo performance showed, compared to October 2006, a traffic increase by 0.7% (traffic, measured in terms of Revenue Ton Kilometers) while capacity was down 5.9%. Overall Load factor was 70.9% with an increase by 4.7 percentage points. Regarding the All-Cargo sector, Load factor was 83% with an increase by 12.9 percentage points compared with the same period of 2006. 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. BIBLIOGRAFICA INTERNACIONAL: Claims Verification Ends Feb. 25 ------------------------------------------------------------- Maria Cristina Rodriguez, the court-appointed trustee for Bibliografica Internacional S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 25, 2008. Ms. Rodriguez 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 Bibliografica Internacional 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 Bibliografica Internacional's accounting and banking records will be submitted in court on May 23, 2008. Ms. Rodriguez is also in charge of administering Bibliografica Internacional's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Maria Cristina Rodriguez Avenida Corrientes 3169 Buenos Aires, Argentina BOSTON SCIENTIFIC: Amends Pact to Settle Product Claims ------------------------------------------------------- Boston Scientific Corporation has reached an amended agreement to settle claims associated with a series of product communications issued by Guidant Corporation in 2005 and 2006. Boston Scientific acquired Guidant last year. This agreement amends a prior agreement Boston Scientific reached in July 2007 to cover additional unanticipated claims. The amended agreement was reached during mediation sessions conducted before U.S. Magistrate Judge Arthur J. Boylan in Minneapolis. Under the terms of the amended agreement, subject to certain conditions, Boston Scientific will pay a total of up to US$240 million. The agreement covers 8,550 patient claims, including all of those that have been consolidated in the U.S. District Court for the District of Minnesota in a Multi-District Litigation, well as other filed and unfiled claims throughout United States. As a result of the amendment, proceedings in Minnesota state court have -- like the trials in the bellwether cases in the MDL -- been stayed. Under the terms of the prior agreement, Boston Scientific had agreed to pay US$195 million to settle over 4,000 claims in the MDL, well as an undetermined number of additional similar claims. The company stated that the claims covered by the amended agreement constitute substantially all currently asserted claims in the United States arising from the 2005 and 2006 product communications. "We are pleased with this amendment, which is in the best interest of all involved," Jim Tobin, president and chief executive officer of Boston Scientific, said. About Boston Scientific Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 24, 2007, Standard & Poor's Ratings Services affirmed its ratings on Boston Scientific Corp. (including the 'BB+' corporate credit rating) and removed them from CreditWatch, where they were placed with negative implications Aug. 3, 2007. S&P said the rating outlook is negative. CARGUEZ SRL: Proofs of Claim Verification Is Until Feb. 21 ---------------------------------------------------------- Francisco Vazquez, the court-appointed trustee for Roberto Carguez SRL's bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 21, 2008. Mr. Vazquez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 42, 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 Carguez 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 Carguez's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Vazquez is also in charge of administering Carguez's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Carguez SRL Arcos 3751 Buenos Aires, Argentina The trustee can be reached at: Francisco Vazquez Rodriguez Pena 110 Buenos Aires, Argentina DANILOR SA: Proofs of Claim Verification Deadline Is Feb. 28 ------------------------------------------------------------ Maria Cenatiempo, the court-appointed trustee for Danilor SA's bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 28, 2008. Ms. Cenatiempo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 3 in Buenos Aires, with the assistance of Clerk No. 6, 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 Danilor 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 Danilor's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Cenatiempo is also in charge of administering Danilor's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Danilor SA Carlos Berg 2856 Buenos Aires, Argentina The trustee can be reached at: Maria Cenatiempo Avenida de Mayo 1365 Buenos Aires, Argentina EDITORIAL AL: Proofs of Claim Verification Is Until Feb. 14 ----------------------------------------------------------- Jacobo Luterstein, the court-appointed trustee for Editorial Al Dia S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 14, 2008. Mr. Luterstein will present the validated claims in court as individual reports on March 31, 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 Editorial Al 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 Editorial Al's accounting and banking records will be submitted in court on May 13, 2008. Mr. Luterstein is also in charge of administering Editorial Al's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jacobo Luterstein Rodriguez Pena 694 Buenos Aires, Argentina EMPRESA DISTRIBUIDORA: Investing US$1B To Boost Distribution ------------------------------------------------------------ A Empresa Distribuidora y Comercializadora Norte S.A. spokesperson told Business News Americas that the firm will invest US$1 billion through 2016 to double its distribution capacity. BNamericas relates that investments will help Argentina meet increasing power demand, expected to grow about 5.5% a year for the next 10 years. Empresa Distribuidora eyes peak demand increasing to six giga watts in 10 years from the current three- giga watts. The spokesperson told BNamericas that investments cover the up to 220-kilo-volt Cabecera Norte substation, which would cost about US$60 million. The substation will be built in Tigre, Buenos Aires. It could be operational in 2010 and will be connected to the transmission line being built to link the Yacyreta hydro plant with the General Rodriguez substation. The spokesperson commented to BNamericas, "There are series of other works including 37 medium-voltage substations, 600 kilometers of high-voltage transmission lines, 6,000 new platforms, 5,000 kilometers of medium-voltage lines and 6,000 kilometers of low-voltage ones." Meanwhile, Empresa Distribuidora president Alejandro MacFarlane told BNamericas that the firm is negotiating with the Argentine government for a rate increase. The state will make the final decision. Based in Buenos Aires, Argentina, Empresa Distribuidora y Comercializadora Norte S.A. aka Edenor is the largest electricity distribution company in Argentina in terms of number of customers and volume of energy sold. Edenor commenced operations in 1992, as a result of the privatization of the previously state-owned SEGBA. At that time, it was granted a 95-year concession to distribute electricity on an exclusive basis in its concession area, the greater Buenos Aires metropolitan area and northern portion of the City of Buenos Aires. EASA, which is controlled by Dolphin Energia S.A., is Edenor's holding company. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 1, 2007, Standard and Poor's Argentina Assigns its 'B' Rating on US$220 Million Bond issued by Empresa Distribuidora y Comercializadora Norte S.A with annual fixed interest rate of 10.5% Notes due 2017. S&P said the outlook is positive. GNC SA: Trustee Verifies Proofs of Claim Until Feb. 26, 2008 ------------------------------------------------------------ Rodolfo Fernando Daniel Torella, the court-appointed trustee for GNC S.A.'s reorganization proceeding, verifies creditors' proofs of claim until Feb. 26, 2008. Mr. Torella will present the validated claims in court as individual reports on April 8, 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 GNC 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 GNC's accounting and banking records will be submitted in court on May 21, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Oct. 16, 2008. The trustee can be reached at: Rodolfo Fernando Daniel Torella Arcos 3726 Buenos Aires, Argentina KONINKLIJKE AHOLD: Earns EUR2.68 Bil. for First Nine Months 2007 ---------------------------------------------------------------- Koninklijke Ahold N.V. released its financial results for the first nine months and third quarter ended Sept. 30, 2007. Ahold posted EUR2.68 billion in net income on EUR21.54 billion in net revenues for the first nine months of 2007, compared with EUR675 million in net income on EUR21.23 billion in net revenues for the same period in 2006. Ahold posted EUR214 million in net income on EUR6.32 billion in net revenues for the third quarter of 2007, compared with EUR210 million in net income on EUR6.25 billion in net revenues for the same period in 2006. As of Sept. 30, 2007, Ahold had EUR14.75 billion in net assets, EUR10.53 billion in total liabilities, and EUR4.22 billion in total shareholders' equity. "We continue to make good progress with our strategy. In the United States, our Value Improvement Program at Stop & Shop and Giant-Landover remains on track, with almost half the program completed," John Rishton, President and CEO, said. "The progress made so far has enabled us to accelerate the program and we now expect to complete 70% by year-end, up from the previous target of 50%. In October, we announced a major three- year remodeling program of more than half of our Giant-Landover stores and the agreement to sell the remainder of our Tops operation. "In Europe, Albert Heijn continues to show impressive performance. In the Czech Republic, we are making significant price investments as part of our repositioning strategy. In Slovakia, we have decided to continue operating as a result of improved performance and the current difficult financial markets. "For our total core retail operations, we expect the operating margin for the full-year 2007 to be at the higher end of our previous guidance of 4% to 4.5%. "Following the capital repayment in August and the EUR1 billion share buyback program completed yesterday, we have returned a total of EUR4 billion to shareholders this year. In addition, we plan to reinstate an annual dividend on Ahold's common shares. "The proposed dividend for the 2007 financial year will be announced with our full-year results on March 6, 2008." About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. (fka Royal Ahold) -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe. It has operations in Argentina. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * As of Nov. 19, 2007, Koninklijke Ahold carries BB+ Issuer Default and senior unsecured ratings from Fitch Ratings. Fitch said the outlook is positive. Its Short-term rating is B. LOGISTICA RUTA: Trustee Verifies Proofs of Claim Until Feb. 22 -------------------------------------------------------------- The court-appointed trustee for Logistica Ruta 3 S.R.L.'s reorganization proceeding verifies creditors' proofs of claim until Feb. 22, 2008. Infobae didn't state the name of the trustee. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Cordoba 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 GNC 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 Logistica Ruta's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. The debtor can be reached at: Logistica Ruta 3 S.R.L. Camino a la Carbonada Km. 6 1/2, Ciudad de Cordoba Cordoba, Argentine LONG REGENT: Trustee Verifies Proofs of Claim Until Feb. 29 ----------------------------------------------------------- Lidia Elsa Albite, the court-appointed trustee for Long Regent S.A.'s reorganization proceeding, verifies creditors' proofs of claim until Feb. 29, 2008. Ms. Albite will present the validated claims in court as individual reports on April 17, 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 Long Regent 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 Long Regent's accounting and banking records will be submitted in court on May 30, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Nov. 27, 2008. The trustee can be reached at: Lidia Elsa Albite Tacuari 119 Buenos Aires, Argentina OREANS SA: Proofs of Claim Verification Deadline Is Dec. 18 ----------------------------------------------------------- Hector Jorge Vegetti, the court-appointed trustee for Oreans S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 18, 2007. Mr. Vegetti 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 Oreans 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 Oreans' accounting and banking records will be submitted in court on April 21, 2008. Mr. Vegetti is also in charge of administering Oreans' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Oreans S.A. Jose A. Terry 390 Buenos Aires, Argentina The trustee can be reached at: Hector Jorge Vegetti Montevideo 711 Buenos Aires, Argentina RAYCOL SA: Proofs of Claim Verification Deadline Is Feb. 14 ----------------------------------------------------------- Nestor del Potro, the court-appointed trustee for Raycol SA's bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 14, 2008. Mr. del Potro will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 33, 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 Raycol 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 Raycol's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. del Potro is also in charge of administering Raycol's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Raycol SA Reconquista 672 Buenos Aires, Argentina The trustee can be reached at: Nestor del Potro Corrientes 1291 Buenos Aires, Argentina ROBERTO DEMINGE: Proofs of Claim Verification Ends on March 3 ------------------------------------------------------------- Maria del Carmen Alvarez, the court-appointed trustee for Roberto Deminge SA's bankruptcy proceeding, verifies creditors' proofs of claim until March 3, 2008. Ms. Alvarez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 7 in Buenos Aires, with the assistance of Clerk No. 13, 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 Roberto Deminge 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 Roberto Deminge's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Alvarez is also in charge of administering Roberto Deminge's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Roberto Deminge SA Virrey Olaguer y Feliu 2468 Buenos Aires, Argentina The trustee can be reached at: Maria del Carmen Alvarez San Jose 135 Buenos Aires, Argentina SERVI TODO: Proofs of Claim Verification Is Until Dec. 31 --------------------------------------------------------- Rosa Elena Teliczan, the court-appointed trustee for Servi Todo S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 31, 2007. Ms. Teliczan will present the validated claims in court as individual reports on March 13, 2008. The National Commercial Court of First Instance in Cordoba 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 Servi Todo 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 Servi Todo's accounting and banking records will be submitted in court on April 29, 2008. Ms. Teliczan is also in charge of administering Servi Todo's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Rosa Elena Teliczan Lima 90, Ciudad de Cordoba Cordoba, Argentina SUCESION DE JUAN: Seeks for Reorganization Okay in Buenos Aires --------------------------------------------------------------- Sucesion de Juan Carlos Cainzos has requested for reorganization approval after failing to pay its liabilities since June 2000. The reorganization petition, once approved by the court, will allow Sucesion de Juan to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 15 in Buenos Aires. Clerk No. 30 assist in this case. The debtor can be reached at: Sucesion de Juan Carlos Cainzos Santa Fe 3040 Buenos Aires, Argentina ============= B E R M U D A ============= ABH 10: Sets Final Shareholders Meeting for Dec. 17 --------------------------------------------------- ABH 10 Limited will hold its final shareholders meeting on Dec. 17, 2007, at 9:30 a.m., at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. ABH 11: Will Hold Final Shareholders Meeting on Dec. 17 ------------------------------------------------------- ABH 11 Limited will hold its final shareholders meeting on Dec. 17, 2007, at 9:30 a.m., at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. AIRCASTLE BERMUDA: Sets Final Shareholders Meeting for Dec. 17 -------------------------------------------------------------- Aircastle Bermuda Holding II Limited will hold its final shareholders meeting on Dec. 17, 2007, at 9:30 a.m., at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. AIRCASTLE BERMUDA HOLDING: Final Shareholders Meeting Is Dec. 17 ---------------------------------------------------------------- Aircastle Bermuda Holding III Limited will hold its final shareholders meeting on Dec. 17, 2007, at 9:35 a.m., at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. AIRCASTLE BERMUDA HOLDING IV: Shareholders Meeting Is on Dec. 17 ---------------------------------------------------------------- Aircastle Bermuda Holding IV Limited will hold its final shareholders meeting on Dec. 17, 2007, at 9:40 a.m., at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. AIRCASTLE BERMUDA HOLDING V: Shareholders Meeting Is on Dec. 17 --------------------------------------------------------------- Aircastle Bermuda Holding V Limited will hold its final shareholders meeting on Dec. 17, 2007, at 9:45 a.m., at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. JIBANA SA: Seeks for Reorganization Okay in Buenos Aires Court -------------------------------------------------------------- Jibana SA has requested for reorganization approval after failing to pay its liabilities since Nov. 16, 2007. The reorganization petition, once approved by the court, will allow Jibana to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 22 in Buenos Aires. Clerk No. 44 assist in this case. The debtor can be reached at: Jibana SA Pueyrredon 468 Buenos Aires, Argentina OLD MUTUAL: Sets Final Shareholders Meeting for Dec. 17 ------------------------------------------------------- Old Mutual SAGA Opportunities Fund Limited will hold its final shareholders meeting on Dec. 17, 2007, at 9:30 a.m., at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. SCOTTISH RE: N.Y. Court Partially Dismisses Securities Suit ----------------------------------------------------------- The U.S. District Court for the Southern District of New York partially granted and partially denied a motion to dismiss a consolidated securities fraud class action filed against Scottish Re Group Ltd. On Aug. 2, 2006, putative class actions were filed against: -- the company; -- Glenn Schafer, the chairman of its board of directors; -- Dean E. Miller, chief financial officer; -- Scott E. Willkomm, former chief executive officer; and -- Seth Vance, former chief executive officer - North America. Between Aug. 7, 2006, and Oct. 2, 2006, seven additional related class actions were filed against the company, certain of its current and former officers and directors, and certain third parties. Each of the complaints allege that the defendants made materially false and misleading statements and/or omissions concerning the company's business and operations, thereby causing investors to purchase the company's securities at artificially inflated prices, in violation of Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated under the 1934 Act. Two of the complaints also allege violations of Sections 11 and 15 of the Securities Act of 1933, related to a 2005 preferred stock offering. Each of the class actions filed seek an unspecified amount of damages, as well as other forms of relief. On Oct. 12, 2006, all of the class actions were consolidated. A consolidated complaint was filed on December 4, 2006. On March 7, 2007, the company filed a motion to dismiss the putative class action. On Nov. 2, Judge Shira A. Scheindlin of the U.S. District Court for the Southern District of New York issued a split verdict, agreeing to toss claims relating to Scottish Re accounting firm Ernst & Young, but denying the defendants' bid to dismiss the entire securities fraud suit. Judge Scheindlin dismissed two of the claims filed against E&Y on the grounds that the plaintiffs had not adequately established scienter. The is suit is "Zuckerman v. Scottish Re Group Ltd. et al., Case No. 1:06-cv-05853-SAS," filed in the U.S. District Court for the Southern District of New York under Judge Shira A. Scheindlin. Representing the plaintiff are: Arthur N. Abbey, Esq. Abbey Spanier Rodd Abrams & Paradis LLP, 212 East 39th Street New York, NY 10016 Phone: (212) 889-3700 Fax: (212) 684-5191 E-mail: aabbey@abbeygardy.com - and - Max W. Berger, Esq. Bernstein, Litowitz, Berger & Grossmann, L.L.P. 1285 Avenue of the Americas New York, NY 10019 Phone: (212) 554-1400 Fax: (212) 554-1444 Representing the company is: George E. Anhang, Esq. LeBoeuf, Lamb, Greene & MacRae, L.L.P. 1875 Connecticut Ave., N.W., Suite 1200 Washington, DC 20009 Phone: (202) 986-8052 Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 15, 2007, Moody's Investors Service has affirmed the ratings of Scottish Re Group Limited's senior unsecured shelf of (P)Ba3 and changed the outlook to negative from stable. ============= B O L I V I A ============= COEUR D'ALENE: Advisory Firms Recommend for Acquisition ------------------------------------------------------- Coeur d'Alene Mines Corporation has disclosed that two of the nation's most influential independent proxy advisory firms, Institutional Shareholder Services and Glass Lewis & Co., have each recommended that Coeur shareholders vote "FOR" the proposals related to the acquisition of Bolnisi Gold NL (ASX:BSG) and Palmarejo Silver and Gold Corporation at the Company's Special Meeting of shareholders scheduled for Dec. 3, 2007. In recommending that Coeur shareholders vote "FOR" the proposed acquisition, ISS stated in its Nov: 20, 2007 report: "Based on our review of the terms of the transaction and the factors described above, in particular the strategic rationale, the opportunities available to the combined company and the increased liquidity of the combined company's stock, we believe that the merger agreement warrants shareholder support." Glass Lewis also recommended that shareholders vote "FOR" all proposals relating to the acquisition. In its Nov. 20, 2007 report, Glass Lewis stated: "Given the strategic rationale of the Transactions, the financial fairness of the proposed exchange ratios, and in the absence of significant conflicts, we believe that shareholders should support this proposal. The resulting scale of the three- way combination will yield operational and strategic benefits otherwise not available to the Company as a stand-alone entity." "We are very pleased to have the support of both ISS and Glass Lewis," said Dennis E. Wheeler, Coeur's Chairman, President and Chief Executive Officer. "Clearly, both proxy advisory firms recognize the transformative nature of this transaction and the potential for the tremendous value it will create for all Coeur shareholders. On behalf of the entire Board of Directors, I urge all Coeur shareholders to vote "FOR" the merger proposals. We look forward to closing this transaction and working toward becoming the world's undisputed leader in silver." Coeur shareholders are reminded that their vote is very important regardless of the number of shares of common stock they own. Whether or not shareholders are able to attend the Special Meeting in person, they should complete, sign and date the proxy card and return it in the prepaid and addressed envelope as soon as possible or submit a proxy through the Internet or by telephone as described on the proxy card that accompanied the definitive proxy statement. The Special Meeting of Coeur shareholders to consider and vote upon the proposed merger has been scheduled for Dec. 3, 2007 at 9:30 a.m. local time at The Coeur d'Alene Resort and Conference Center, Second Street and Front Avenue, Coeur d'Alene. Coeur shareholders of record as of the close of business on Oct. 19, 2007 will be entitled to vote at the special meeting. Shareholders who have questions about the transactions and the special meeting, including the procedures for voting your shares, should call D.F. King & Co., Inc., which is assisting Coeur, at 1-800-901-0068 (toll-free) or (collect) at 212-269-5550. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. =========== B R A Z I L =========== AMERICAN AXLE: Paying US$0.15 Per Share Cash Dividend on Dec. 28 ---------------------------------------------------------------- American Axle & Manufacturing Holdings, Inc. has announced a cash dividend of US$0.15 per share payable on Dec. 28, 2007, to stockholders of record on all of the company's issued and outstanding common stock as of Dec. 7, 2007. American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc. manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2007, Fitch Ratings affirmed American Axle & Manufacturing Holdings' Inc. ratings: American Axle & Manufacturing Holdings, Inc. -- Issuer Default Rating 'BB'. American Axle & Manufacturing, Inc. -- Issuer Default Rating 'BB'; -- Senior unsecured revolving credit facility 'BB'; -- Senior unsecured term loan 'BB'; -- Senior unsecured notes 'BB'. Fitch said the rating outlook has been revised to stable from negative. Including the available portion of American Axle's revolving credit facility, Fitch's ratings affect approximately US$1.5 billion of indebtedness. BANCO NACIONAL: Okays BRL283-Mil. Loan for Maua Jurong Shipyard --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has ratified a BRL283-million loan for the Maua Jurong shipyard, Business News Americas reports. According to BNamericas, Maua Jurong will use the loan in the construction of Brazilian state-run oil firm Petroleo Brasileiro SA's four oil tankers. Banco Nacional told BNamericas that the loan accounts for 46% of the BRL627-million project cost. Banco Nacional said in a statement that Petroleo Brasileiro's transportation division Transpetro will run the tankers. BNamericas explains that the vessels will transport: -- diesel, -- gasoline, -- jet fuel, -- naphtha, and -- lubricant oil. 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. EL PASO: El Paso Pipeline Closes Initial Public Offering -------------------------------------------------------- El Paso Pipeline Partners, L.P. has closed its initial public offering of 28,750,000 of its common units at US$20 per unit. The number of units issued at closing included 3,750,000 additional common units issued pursuant to the exercise of the underwriters' over-allotment option. Net proceeds received by El Paso Pipeline Partners from the sale of the 28,750,000 units were approximately US$540.5 million. The common units offered to the public represent 33.2 percent of the outstanding equity of El Paso Pipeline Partners. El Paso Corporation will indirectly own the remaining equity interests in El Paso Pipeline Partners, L.P. Lehman Brothers Inc.; Citi; Goldman, Sachs & Co., and UBS Securities LLC acted as the joint book-running managers of the offering. Merrill Lynch & Co.; Morgan Stanley; Wachovia Securities; Credit Suisse; Raymond James; RBC Capital Markets, and Tudor Pickering acted as co-managers. El Paso Pipeline Partners, L.P. (NYSE: EPB) -- http://www.eppipelinepartners.com-- is a Delaware limited partnership formed by El Paso Corporation to own and operate natural gas transportation pipelines, storage, and other midstream assets. El Paso Pipeline Partners, L.P. owns Wyoming Interstate Company, a pipeline system serving the Rocky Mountain region, and a 10 percent interest in each of the Colorado Interstate Gas Company and Southern Natural Gas Company pipelines, which operate in the Rocky Mountain and Southeastern regions of the United States, respectively. El Paso Corporation will continue to own the other 90 percent of Colorado Interstate and Southern Natural gas companies. Headquartered in Houston, Texas, El Paso Corporation (NYSE: EP) -- http://www.elpaso.com/-- is an energy company that provides natural gas and related energy products. The company owns North America's interstate pipeline system, which has approximately 55,500 miles of pipe. It also owns approximately 470 billion cubic feet of storage capacity and a liquefied natural gas import facility with 806 million cubic feet of daily base load send out capacity. El Paso's exploration and production business is focused on the exploration for and the acquisition, development and production of natural gas, oil and natural gas liquids in the United States, Brazil and Egypt. It operates in three business segments: Pipelines, Exploration and Production and Marketing. It also has a Power segment, which holds its remaining interests in international power plants in Brazil, Asia and Central America. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 20, 2007, Standard & Poor's Ratings Services has affirmed its 'BB' corporate credit ratings on El Paso Corp. and subsidiaries. S&P said the outlook remains positive. EMBRATEL PARTICIPACOES: Investing US$600MM in WiMax Techonology --------------------------------------------------------------- Embratel Participacoes's sales director Flavio Gomes told Brazilian news daily Asltimo Segundo that the firm would invest about US$600 million in WiMax technology through March 2008. Business News Americas relates that Mr. Gomes said the WiMax technology will be available by March in these cities: -- Sao Paulo, -- Rio de Janeiro, -- Belo Horizonte, -- Campinas, -- Curitiba, -- Porto Alegre, -- Florianopolis, -- Campo Grande, -- Brasilia, -- Salvador, -- Recife, and -- Fortaleza. According to BNamericas, Embratel Participacoes would provide WiMax coverage in other state capitals and other cities in subsequent stages. Embratel Participacoes would target the corporate and residential segments, BNamericas states, citing Mr. Gomes. Embratel Participacoes SA offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. Embratel Participacoes is rated by Moody's: * local currency issuer rating -- B1; and * senior unsecured debt -- B2. FORD MOTOR: Russian Plant Workers Resume Strike ----------------------------------------------- Workers at Ford Motor Co.'s manufacturing plant in Vsevolozhsok, Russia, resumed their strike on Nov. 20, 2007, demanding higher wages and reduction of night shifts from March 2008, published reports say. According to reports, workers held a 19-hour strike on Nov. 6, 2007, after management repeatedly rejected their pay hike demands. They returned to work after a court ordered the union to postpone further action until Nov. 20, 2007. In a report by RIA Novosti, Yekaterina Kulinenko, a public relations manager at Ford said that the strike could disrupt car deliveries to Russian customers. "The cars that were ordered earlier will be produced later and, correspondingly, their delivery will be delayed due to the strike," Mr. Kulinenko was quoted by RIA Novosti, adding that the plant's daily output was 300 Ford Focus vehicles. Mr. Kulinenko added the company's management was prepared to hold talks with the plant's trade union only after the strike was over. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. GENERAL MOTORS: UAW Members Wary on GM's Exposure to ResCap Woes ---------------------------------------------------------------- UAW President Ron Gettelfinger wants an audience with General Motors Corp.'s chief financial officer Frederick A. Henderson to seek transparency in the carmaker's vulnerability to the financial woes of Residential Capital LLC, which it has a 49% stake, Reuters reports. The UAW leader disclosed that union members are wary of the huge drop in GM shares this week. ResCap is the home mortgage unit of GMAC Financial Services, which is in turn wholly owned by GMAC LLC. As reported in yesterday's Troubled Company Reporter, according to Gimme Credit analyst Kathleen Shanley, GMAC Financial Services and Cerberus Management Capital LP, which owns 51% stake in ResCap, could likely place ResCap into bankruptcy due to ResCap's exposure to homebuilders. ResCap is currently under restructuring as severe weakness in the housing market and mortgage industry continues to prevail. ResCap will streamline its operations and revise its cost structure, which will enhance its flexibility, allowing it to scale operations up or down more rapidly to meet changing market conditions. GMAC Financial Services and ResCap continue to investigate strategic alternatives, including to improve ResCap's liquidity and to adjust its business in light of current domestic and international market conditions. These strategic alternatives include potential acquisitions as well as dispositions, alliances, and joint ventures with a variety of third parties with respect to some or all of ResCap's businesses. Reuters adds that JPMorgan analyst, Himanshu Patel, said that a ResCap bankruptcy could cost GM shareholders about $2.65 a share. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets (DTAs) in the US, Canada and Germany. As reported on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. GERDAU AMERISTEEL: Moody's Affirms Ba1 Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service has affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook, following the announcement of an agreement to acquire the specialty steel operations of Quanex Corporation, mainly represented by its MacSteel division for some US$1.46 billion in cash. All other ratings related to the company were affirmed. Ratings affirmed are: Issuer: Gerdau S.A. -- Ba1 Global Local Currency Corporate Family Rating -- US$600 million Senior Unsecured Guaranteed Perpetual Notes: Ba1 Foreign Currency Rating Issuer: Gerdau Brazil (fictitious entity representing the Brazilian operations of Gerdau S.A. comprising Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos S.A.). -- Ba1 Global Local Currency Corporate Family Rating Issuer: Gerdau Ameristeel Corporation -- Ba1 Probability of Default Rating -- Ba1 Corporate Family Rating -- US$405 million Senior Unsecured Regular Bond: Ba1, LGD4 59% Issuer: Jacksonville Economic Development Comm. -- US$23 million Senior Unsecured Revenue Bonds guaranteed by Gerdau Ameristeel: Ba1, LGD4 59% Outlook for all ratings: stable On Nov. 19, 2007, Gerdau SA announced an agreement to acquire MacSteel for US$1.46 billion in cash (equivalent to nine times estimated 2007 EBITDA), to be initially fully funded with existing cash balance. The transaction is subject to approval by Quanex Corp.'s shareholders and regulatory approvals, and is expected to be completed during the first quarter of 2008. The announcement occurred just a few months after the conclusion of its acquisition of Chaparral Steel Company for some US$4.5 billion in September 2007. Although Total Adjusted Debt to EBITDA is anticipated to peak at about 2.6 pro-forma for MacSteel and Chaparral, Moody's expects that Gerdau SA will use cash flow to reduce indebtedness over the near term resulting in leverage metrics that are commensurate with the Ba1 rating. Liquidity post-acquisition is expected to remain sufficient to cover debt maturities, considering the maintenance of a cash position in excess of US$1 billion and full availability under the company's US$1,050 million committed credit facility, its ample access to export- related loans, and free cash flow. In spite of the increased capex associated with the Acominas plant expansion program, free cash flow is anticipated to remain strong and supportive of adequate debt protection metrics. The acquisition of MacSteel contributes to a broadening of Gerdau SA's product portfolio and makes it the second largest manufacturer of long specialty steel (SBQ) for use by the automotive industry on a global basis. While the associated integration risks are somewhat mitigated by the large experience of the company with several acquisitions in North America over the past years, Moody's views the risk of overpayment as material based on the relatively high multiple paid combined with limited synergy gains announced by the company that would permit MacSteel's margins to improve to a level closer to the group's SBQ operations in Brazil (Acos Villares) and Spain (Sidenor). Moody's believes that Gerdau will continue to play an active role in the ongoing consolidation of the global steel industry and pursue opportunistic acquisitions. While acquisitions made so far have contributed to improved business profile of Gerdau, Moody's notes that the event risk associated with the group's acquisitive strategy is a constraining factor to the rating. The stable outlook reflects Moody's view that Gerdau SA will maintain prudent financial management and use free cash flow to reduce indebtedness following the acquisition of MacSteel, while simultaneously maintaining a comfortable liquidity position. Furthermore, Moody's believes that the company will continue to focus on the improvement of its cost structure, as well as successfully integrate MacSteel and Chaparral into its North American assets. Assuming the acquisition of MacSteel materializes, Gerdau SA's ratings could be under downward pressure if Total Adjusted Net Debt (considering a minimum cash equivalent position of US$1.5 billion)/EBITDA pro-forma for MacSteel and Chaparral remains above 2.2 for an extended time period or in case of a sharp deterioration in the group's liquidity position or financial performance. Also, further acquisitions preventing Gerdau from reducing its leverage could have an adverse impact on the rating. For the rated unsecured bonds, a substantial increase in the level of secured debt of the guarantors could lead to a downgrade of the respective ratings. A positive impact on the ratings could result from the successful integration of Chaparral and MacSteel combined with a decline in leverage as measured by Net Debt (considering a minimum cash equivalent position of US$1.5 billion) to EBITDA below 1.8 on a sustained basis simultaneously with the maintenance of strong credit fundamentals that include efficient cost management and adequate liquidity levels. Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a mini-mill steel producer in North America. Through its vertically integrated network of 17 mini-mills, 17 scrap recycling facilities and 52 downstream operations, Gerdau Ameristeel serves customers throughout North America. The company's products are sold to steel service centers, steel fabricators, or directly to original equipment manufactures for use in a variety of industries, including construction, cellular and electrical transmission, automotive, mining and equipment manufacturing. Gerdau Ameristeel is a unit of Brazilin firm Gerdau SA. GERDAU SA: Moody's Affirms Corporate Family Rating at Ba1 ---------------------------------------------------------- Moody's Investors Service has affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook, following the announcement of an agreement to acquire the specialty steel operations of Quanex Corporation, mainly represented by its MacSteel division for some US$1.46 billion in cash. All other ratings related to the company were affirmed. Ratings affirmed are: Issuer: Gerdau S.A. -- Ba1 Global Local Currency Corporate Family Rating -- US$600 million Senior Unsecured Guaranteed Perpetual Notes: Ba1 Foreign Currency Rating Issuer: Gerdau Brazil (fictitious entity representing the Brazilian operations of Gerdau S.A. comprising Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos S.A.). -- Ba1 Global Local Currency Corporate Family Rating Issuer: Gerdau Ameristeel Corporation -- Ba1 Probability of Default Rating -- Ba1 Corporate Family Rating -- US$405 million Senior Unsecured Regular Bond: Ba1, LGD4 59% Issuer: Jacksonville Economic Development Comm. -- US$23 million Senior Unsecured Revenue Bonds guaranteed by Gerdau Ameristeel: Ba1, LGD4 59% Outlook for all ratings: stable On Nov. 19, 2007, Gerdau SA announced an agreement to acquire MacSteel for US$1.46 billion in cash (equivalent to nine times estimated 2007 EBITDA), to be initially fully funded with existing cash balance. The transaction is subject to approval by Quanex Corp.'s shareholders and regulatory approvals, and is expected to be completed during the first quarter of 2008. The announcement occurred just a few months after the conclusion of its acquisition of Chaparral Steel Company for some US$4.5 billion in September 2007. Although Total Adjusted Debt to EBITDA is anticipated to peak at about 2.6 pro-forma for MacSteel and Chaparral, Moody's expects that Gerdau SA will use cash flow to reduce indebtedness over the near term resulting in leverage metrics that are commensurate with the Ba1 rating. Liquidity post-acquisition is expected to remain sufficient to cover debt maturities, considering the maintenance of a cash position in excess of US$1 billion and full availability under the company's US$1,050 million committed credit facility, its ample access to export- related loans, and free cash flow. In spite of the increased capex associated with the Acominas plant expansion program, free cash flow is anticipated to remain strong and supportive of adequate debt protection metrics. The acquisition of MacSteel contributes to a broadening of Gerdau SA's product portfolio and makes it the second largest manufacturer of long specialty steel (SBQ) for use by the automotive industry on a global basis. While the associated integration risks are somewhat mitigated by the large experience of the company with several acquisitions in North America over the past years, Moody's views the risk of overpayment as material based on the relatively high multiple paid combined with limited synergy gains announced by the company that would permit MacSteel's margins to improve to a level closer to the group's SBQ operations in Brazil (Acos Villares) and Spain (Sidenor). Moody's believes that Gerdau will continue to play an active role in the ongoing consolidation of the global steel industry and pursue opportunistic acquisitions. While acquisitions made so far have contributed to improved business profile of Gerdau, Moody's notes that the event risk associated with the group's acquisitive strategy is a constraining factor to the rating. The stable outlook reflects Moody's view that Gerdau SA will maintain prudent financial management and use free cash flow to reduce indebtedness following the acquisition of MacSteel, while simultaneously maintaining a comfortable liquidity position. Furthermore, Moody's believes that the company will continue to focus on the improvement of its cost structure, as well as successfully integrate MacSteel and Chaparral into its North American assets. Assuming the acquisition of MacSteel materializes, Gerdau SA's ratings could be under downward pressure if Total Adjusted Net Debt (considering a minimum cash equivalent position of US$1.5 billion) / EBITDA pro-forma for MacSteel and Chaparral remains above 2.2 for an extended time period or in case of a sharp deterioration in the group's liquidity position or financial performance. Also, further acquisitions preventing Gerdau from reducing its leverage could have an adverse impact on the rating. For the rated unsecured bonds, a substantial increase in the level of secured debt of the guarantors could lead to a downgrade of the respective ratings. A positive impact on the ratings could result from the successful integration of Chaparral and MacSteel combined with a decline in leverage as measured by Net Debt (considering a minimum cash equivalent position of US$1.5 billion) to EBITDA below 1.8 on a sustained basis simultaneously with the maintenance of strong credit fundamentals that include efficient cost management and adequate liquidity levels. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. INDEPENDENCIA SA: S&P Affirms Corporate Credit Rating at B ---------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'B' corporate credit rating on Brazil-based meat processor Independencia S.A. and removed the ratings from CreditWatch, where they were placed with negative implications on May 31, 2007. The company's outstanding pro forma debt taking into account Goias Carne's figures at the end of third-quarter 2007 (Sept. 30, 2007) was about US$500 million, while cash and market securities totaled US$66 million. The outlook is stable. "The rating action reflects our view that Independencia's temporary debt increase following the acquisition of Goias Carne will not directly affect its credit metrics," said S&P's credit analyst Vivian Zietemann. "We believe the company will continue to report higher-than-market average operational performance, evidenced by its higher EBITDA margins." The better distribution of its assets after the acquisition and the recent announcement of asset rentals in Mato Grosso also help to reduce the company's concentration in areas with sanitary restrictions, potentially becoming a positive factor for company's business diversification in the medium term. The expected resolution of short-term debt maturities until the beginning of 2008, by refinancing existing export pre-payment loans, will also contribute to slightly reduce Independencia's high refinancing risk. Currently, the company reports a high concentration of short-term debt maturities up to 2009, including a bullet maturity of its US$100-million bridge loan used to acquire Goias Carne. Independencia's business fundamentals are strong, with historical higher-than-average EBITDA margin at the 16% level. The company's pro forma combined third-quarter results (ended Sept. 30, 2007) show a slight reduction in its EBITDA margin to 14.1% in the past 12 months ended Sept. 30, 2007, compared with 16.4% at Dec. 31, 2006, mainly influenced by higher raw material prices due to a cattle shortage during winter, but also because of the consolidation of Goias Carne's lower profitability since July 2007. Goias Carne has so far reported weaker profitability than Independencia, as it still does not share the same operating efficiency. Therefore, S&P expects Independencia's EBITDA margin to reduce slightly in 2007 to a level between 13% and 15%, but to recover to historical levels as soon as Goias Carne's efficiency levels improve with higher consolidated slaughter capacity, but also reflecting Independencia's business model. This is expected to occur in the 2008-2009 period. Although Independencia incurred US$100 million in additional debt to finance Goias Carne's acquisition at the holding level, S&P believes the company will be able to refinance this additional short-term pressure. The company's funds-from- operations-to-total-debt ratio, which gradually increased to 13.7% in December 2006, should decline slightly in the current and next fiscal years to 10%, as S&P takes account of potential execution risks to integrate Goias Carne as well as to conclude Independencia's projected growth strategy throughout the coming year. S&P believes the company's cash flow generation could recover to adequate levels from 2009 onward, delivering funds- from-operations-to-total-debt ratio in the high 10%-20% range thanks to both stronger cash flows and debt refinancing this year. Owing to higher debt levels, S&P expects EBITDA interest coverage ratio to hover at around 1.8 by year-end 2007 (1.8 in December 2006), however strengthening from 2008 on because of the lower cost of debt. S&P does not expect the company to report positive FOCF before 2010, reflecting the company's projected growth plans. An increase in acquisition debt adds to a projected debt, which is expected to peak in fiscal 2007 and to result in a total-debt-to-EBITDA ratio of 5.2 by year-end 2007 (4.6 in December 2006). S&P expects this ratio to gradually reduce to a more comfortable level of 4.5 from 2008 onward, reflecting higher cash flow generation and gradual debt reduction. "The stable outlook reflects our expectations that Independencia will retain its competitive position in exporting beef, but will also report strong operating performance, as it moves forward with its growth strategy by incorporating leased and acquired assets," said Ms. Zietemann. "The stable outlook also incorporates the expected improvements of company's financial risk profile, including the refinancing of some short-term debt maturities and a gradual recovery of cash flow protection measures." The ratings could be lowered if the company encounters negative conditions in local and international markets, resulting in lower-than-projected EBITDA margins and weaker cash flow generation. The ratings could also be negatively affected if the company fails to resolve successfully its short-term debt maturities, which includes the refinancing of the bridge loan. A positive rating action or outlook revision would depend on a significant reduction of the company's debt leverage, resulting in stronger cash flow generation, with funds-from-operations-to- total-debt ratio consistently in the high 10%-20% range and total-debt-to-EBITDA ratio consistently lower than 3.5. NET SERVICOS: Reports BRL50-Mln Prepayment Due to Good Liquidity ---------------------------------------------------------------- Net Servicos de Comunicacao S.A. has reported the partial prepayment, at its sole and exclusive discretion, of the Bank Letter of Credit, which belongs to its full subsidiary Vivax S.A., in the amount of BRL50 million, equivalent to 22.7% of the total contracted amount of BRL$220 million. The company further announced that the decision to effect said prepayment was taken due to its current good liquidity in its balance sheet and the fact that this CCB is above the levels at which the company believes it can raise funds. Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao -- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1-- is a subscriber TV multi-operator in Brazil, as it operates the NET brand in major cities, including operations in the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre. NET also offers Broadband Internet services through its NET VIRTUA brand name. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 23, 2007, Moody's Investors Service upgraded Net Servicos de Comunicacao S.A.'s corporate family rating to Ba2 from B1 on its global local currency scale and to Aa3.br from Baa2.br on its Brazilian national scale rating. Moody's said the rating outlook is stable. This rating action concludes the review process initiated on Oct. 17, 2006. PETROLEO BRASILEIRO: Mr. Gabrielli Defends Biofuels Use ------------------------------------------------------- Petroleo Brasileiro SA's president, Jose Sergio Gabrielli de Azevedo, has defended the use of biofuels as a way to reduce the transportation sector's impact on the environment. Mr. Gabrielli was one of the participants of a debate on the future of transportations held Nov. 13, in Rome, during the 20th World Energy Congress. To the executive, the Brazilian experience using ethanol as fuel is an example of how other countries may, on the short term, use cleaner sources in there several means of transportation. "We should consider what happens in Brazil a glimpse of the future," he said. The executive emphasized the fact that the 25% ethanol mix to gasoline, and the increasing use of flex fuel vehicles have changed the Brazilian market. "In the State of Sao Paulo, Brazil's biggest fuel market, we currently sell more ethanol than gasoline," he exemplified. Mr. Gabrielli added that biofuel use is expected to increase in the heavy vehicle fleet, which is also hoped to contribute to slashing pollutant emissions. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp- - was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * BRAZIL: Banco Nacional OKs BRL283M Loan for Petrobras' Tankers ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has ratified a BRL283-million loan for the Maua Jurong shipyard to construct the four oil tankers of Brazilian state-run oil firm Petroleo Brasileiro aka Petrobras, Business News Americas reports. Banco Nacional told BNamericas that the loan accounts for 46% of the BRL627-million project cost. Banco Nacional said in a statement that Petrobras' transportation division Transpetro will run the tankers. BNamericas explains that the vessels will transport: -- diesel, -- gasoline, -- jet fuel, -- naphtha, and -- lubricant oil. 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 Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp- - was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * BRAZIL: Petrobras Investing US$300 Mln in Offshore Exploration ---------------------------------------------------------------- Brazilian state-owned oil firm Petroleo Brasileiro SA aka Petrobras will invest about US$300 million through 2010 for exploration off the coast of Argentina, news daily El Universal reports. Petrobras directo Nestor Cervero told Business News Americas that the firm is working on seismic studies. BNamericas relates that Petrobras' offshore operation in Argentina is block E3. The company is exploring the block with Argentine state-run energy firm Enarsa. According to Clarin, Petrobras officials are positive that an "enormous oil reserve exists" off the Argentine coast. Petrobras said earlier this year that it would invest some US$2.8 billion in its 2008-12 operations in Argentina, BNamericas notes. Enarsa has rights to Argentina's offshore potential. The firm wants to launch bidding for four offshore blocks early in 2008, BNamericas states. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. =========================== C A Y M A N I S L A N D S =========================== BASIS YIELD: Joint Provisional Liquidators Seek Summary Judgment ---------------------------------------------------------------- Hugh Dickson, Stephen John Akers and Paul Andrew Billingham, as joint provisional liquidators and authorized foreign representatives of Basis Yield Alpha Fund (Master), ask the U.S. Bankruptcy Court for the Southern District of New York to issue summary judgment recognizing Basis Yield's insolvency proceeding pending before the Grand Court of the Cayman Islands pursuant to Chapter 15 of the U.S. Bankruptcy Code. Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York, tells the U.S. Court that not one party-in-interest has opposed recognition or challenged the Foreign Representatives' evidence that Basis Yield's "center of main interest" is located in the Cayman Islands. Ms. Dine asserts that Basis Yield is entitled to the statutory presumption provided for in the Bankruptcy Code that the Cayman Islands is the Fund's COMI because the Cayman Islands is the location of its registered office. Given this presumption, together with the lack of any factual dispute concerning the evidence already presented to the Court that the Foreign Debtor's COMI is located in the Cayman Islands, Ms. Dine contends that: -- the U.S. Court should not be compelled to expend further judicial resources; and -- the Foreign Representatives should not be required to expend significant amounts of time and money, to the detriment of Basis Yield's estate, producing additional evidence to the U.S. Court. Ms. Dine points out that the sole response filed to the Foreign Representatives' Recognition Motion was a limited objection by Citigroup Global Markets Limited to the proposed form of order granting recognition. The Limited Objection, she notes, only addresses the current form of proposed recognition order and expressly states that CGML "takes no position on whether the Joint Provisional Liquidators . . . have demonstrated the propriety of recognition of [the Cayman Islands Proceeding] as a main or non-main proceeding." The Limited Objection does not preclude a determination by the U.S. Court that the Foreign Representatives are entitled to summary judgment at this time, she says. Basis Yield is the master fund in a master-feeder structure. Basis Yield has one active feeder fund -- Basis Yield Alpha Fund, a registered mutual fund domiciled in the Cayman Islands and regulated by the Cayman Islands Monetary Authority. A further Cayman Islands registered mutual fund, Basis Yield Alpha Fund (US), was established with the intention of becoming Basis Yield's second feeder fund. BYAF(US) was intended to be marketed to U.S. taxable investors. BYAF(US) is currently, and has always been, dormant, however, and holds no shares in Basis Yield. Cayman Island-based Fortis Prime Fund Solutions (Cayman) Limited serves as administrator to Basis Yield and each of its feeder funds. Basis Yield's investment manager is a Cayman Islands company. The Foreign Representatives have petitioned the High Court of Justice, Chancery Division, Companies Court, in England pursuant to Section 426 of the Insolvency Act of 1986, and obtained recognition as joint provisional liquidators from the High Court of Justice. The Supreme Court of New South Wales also has granted the Foreign Representatives' application for orders compelling certain parties to turnover, among other things, documents and funds in their possession. "Third parties, including creditors, trading counterparties, and/or investors of Basis Yield, have appeared in the proceedings pending in the Cayman Islands and Australia; however, no foreign court or party appearing before a foreign court has challenged the basis for the liquidation proceeding in the Cayman Islands," Ms. Dine says. "This remains true today." Basis Yield has already produced sufficient evidence that the Cayman Islands proceeding should be recognized as a Foreign Main proceeding, Ms. Dine tells the Court. Basis Yield is entitled to the statutory presumption set forth in Chapter 15 and therefore, should not be required to produce further evidence of COMI at a full evidentiary hearing, Ms. Dine contends. Ms. Dine points out that Section 1516(c) provides that "[i]n the absence of evidence to the contrary, the debtor's registered office, . . . is presumed to be the center of the debtor's main interests." The Foreign Representatives are entitled to the benefit of the Bankruptcy Code's statutory presumption, Ms. Dine tells the Court. Other bankruptcy courts have made note of the presumption, Ms. Dine notes. In In re Tri-Continental Exch. Ltd., 349 B.R. 627, 635 (Bankr. B.D. Cal. 2006), Ms. Dine says the court held that "[i]n effect, the registered office (or place of incorporation) is evidence that is probative of, and that may in the absence of other evidence be accepted as a proxy for, 'center of main interests.' " Congress expressly chose to incorporate the statutory presumption into the Bankruptcy Code when it enacted Chapter 15 to help foreign debtors preserve time and money for the benefit of their true creditors, Ms. Dine asserts. International law is no different, she adds. "[T]he simple presumption laid down by the Community legislature in favour of the registered office of that company can be rebutted only if factors which are both objective and ascertainable by third parties enable it to be established that an actual situation exists which is different from that which locating it at that registered office is deemed to reflect," Ms. Dine cites Bondi v. Bank of America, NA. (In re Eurofood IFSC Ltd.), 2006 B.C.R. 1-3813, ~ 34 (B.C.J. May 2, 2006). Ms. Dine also argues that the decision in In re Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd.; 374 B.R. 122 (Bankr. S.D.N.Y. 2007), appeal docketed, Case No. 07-08730-RWS (S.D.N.Y. Oct. 10, 2007), supports application of the presumptions provided for in Chapter 15 in Basis Yield's case. Ms. Dine explains that the Bear Stearns court characterized its decision as refusing to "rubber-stamp" the foreign debtors' request for recognition even in the absence of objections to recognition. The rationale throughout the Bear Stearns decision makes clear that while recognition is not to be "rubber stamped" by the court, a petitioner who has presented the required evidence to establish its prima facie case of recognition, where there is no evidence of a serious dispute about the petitioner's true center of interest, is entitled to the presumption that its registered office is its COMI, Ms. Dine says. Unlike the Bear Stearns' case, no controversy regarding Basis Yield's center of main interest -- serious or otherwise -- exists, and the facts before the U.S. Court are not doubtful, according to Ms. Dine. Key Dates The Foreign Representatives and CGML have stipulated that responses or objections, if any, to the Summary Judgment Motion must be filed and served so as to be received on or before Dec. 6, 2007. Replies, if any, to the Summary Judgment Objections are due Dec. 17. Replies, if any, to CGML's Limited Objection are due December 17. The U.S. Court will convene a hearing on the Summary Judgment Motion and all related responses on Jan. 15, 2008, at 9:45 a.m. (New York time). The hearing may continue as ordered by the court. The U.S. Court will also take up CGML's Limited Objection and all related responses at the January 15 hearing. About Basis Yield Basis Yield Alpha Fund (Master) is a Cayman Islands mutual fund. It operates as a master-feeder structure that allows investors' funds to be channeled through two companies operating in a single jurisdiction to a "master" company operating in the same jurisdiction. These two feeder funds are Basis Yield Alpha Fund (US), a US feeder fund for US taxable investors, and Basis Yield Alpha Fund, a non-US feeder for all other investors. On Aug. 29, 2007, Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham filed a chapter 15 petition for Basis Yield (Bankr. S.D.N.Y. Case No. 07-12762). Karen Dine, Esq. at Pillsbury Winthrop Shaw Pittman LLP represents the petitioners. (Basis Yield Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000) BOMBAY CO: Court OKs Sale of Corporate Headquarters for US$16MM --------------------------------------------------------------- The Honorable D. Michael Lynn of the U.S. Bankruptcy Court for the Northern District of Texas gave authority to The Bombay Company Inc. and its debtor-affiliates to sell their corporate headquarters and related assets. As reported in the Troubled Company Reporter on Nov. 12, 2007, the Debtors will sell theur corporate headquarters to Goff Capital Inc. for US$16.35 million. The property is a seven-story, 122,000-square-foot building and a parking garage at 550 Bailey Avenue in Fort Worth, Texas. In addition, Goff Capital will be assuming the unexpired leases of office spaces at the complex. The Debtor also provided adequate assurance of future performance pursuant to Section 365(f)(2) of the U.S. Bankruptcy Code, and no cure amounts are required to be paid to the office tenants pursuant to Section 365(b)(1). The Court acknowledges that the sale agreement constitutes the highest and best offer for the Bombay office complex and is appropriate to maximize the value to the Debtors' estates. About Bombay Company Basedc in Fort Worth, Texas, The Bombay Company Inc., (OTC Bulletin Board: BBAO) -- http://www.bombaycompany.com/-- designs, sources and markets a unique line of home accessories, wall decor and furniture through 384 retail outlets and the Internet in the U.S. and internationally, including Cayman Islands. The company and five of its debtor-affiliates filed for Chapter 11 protection on Sept. 20, 2007 (Bankr. N.D. Tex. Lead Case No. 07-44084). Robert D. Albergotti, Esq., John D. Penn, Esq., Ian T. Peck, Esq., and Jason B. Binford, Esq., at Haynes and Boone, LLP, represent the Debtors. Attorneys at Cooley, Godward, Kronish LLP act as counsel for the Official Committee of Unsecured Creditors. Forshey & Prostok LLP is the Committee's local counsel. As of May 5, 2007, the Debtors listed total assets of US$239,400,000 and total debts of US$173,400,000. CABLE & WIRELESS: Excessive Executive Payout Angers Investors ------------------------------------------------------------- Cable & Wireless plc is facing yet another dispute with investors and unions over excessive executive rewards following a management shake-up, the Times reports. On Nov. 13, 2007, C&W implemented changes to the management of its International business in preparation for driving the next phase of its value creation. Harris Jones is to step down as chief executive of International and as a director, and leave the business towards the end of 2007 once handover is complete. As disclosed, Mr. Jones will receive his contractual entitlement on leaving, including GBP4.3 million for his pro-rated share in the Long Term Incentive Plan having delivered value creation on behalf of shareholders from International of over GBP1 billion since he joined in November 2004, of which three quarters of a billion has been created since the commencement of the LTIP on April 1, 2006. There will be no additional charge to shareholders for the LTIP regarding this management change as there is a finite pool of units in the plan. However, according to investors, Mr. Jones' departure came amid a weakening performance in the company's international division, the Times relates. John Pluthero is to become executive chairman of International with immediate effect, while continuing his similar role for Europe, Asia & US. Mr. Pluthero will receive 50% of Mr. Jones' LTIP units for the remaining life of the LTIP after deduction of the LTIP payment above to Mr. Jones. Peter Montagnon, the Association of British Insurers' director of investment affairs, told the Times it would go over the latest revisions of the C&W's remuneration scheme, which he describes as "quite unusual." At its Annual General Meeting on July 20, 2007, C&W recommended the removal of the GBP20 million cap on the amount that can be received by an individual within the LTIP, which angered investors, Elizabeth Judge writes for the Times. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% FRM WATER: Proofs of Claim Filing Deadline Is Dec. 1 ---------------------------------------------------- FRM Water Fund (Cayman Nominee) Limited's creditors are given until Dec. 1, 2007, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. FRM Water'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 liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 KANAZAWA HOLDING: Proofs of Claim Filing Is Until Dec. 1 -------------------------------------------------------- Kanazawa Holding, Inc.'s creditors are given until Dec. 1, 2007, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Kanazawa Holding's shareholder agreed on Oct. 22, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 MUSIC PARTNERS: Proofs of Claim Filing Deadline Is Dec. 1 --------------------------------------------------------- Music Partners Capital Limited's creditors are given until Dec. 1, 2007, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Music Partners' shareholder agreed on Oct. 18, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 NT FUNDING: Proofs of Claim Filing Ends on Dec. 1 ------------------------------------------------- NT Funding Corporation's creditors are given until Dec. 1, 2007, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. NT Funding's shareholder agreed on Nov. 1, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 OTEMACHI CAPITAL: Proofs of Claim Filing Is Until Dec. 1 -------------------------------------------------------- Otemachi Capital Holdings Inc.'s creditors are given until Dec. 1, 2007, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Otemachi Capital's shareholder agreed on Nov. 1, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 PINNAKELL ASIA: Proofs of Claim Filing Deadline Is Dec. 1 --------------------------------------------------------- Pinnakell Asia Absolute Fund's creditors are given until Dec. 1, 2007, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Pinnakell Asia's shareholder agreed on Oct. 10, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 PINNAKELL ASIA ABSOLUTE: Proofs of Claim Filing Ends on Dec. 1 -------------------------------------------------------------- Pinnakell Asia Absolute Master Fund's creditors are given until Dec. 1, 2007, to pr