/raid1/www/Hosts/bankrupt/TCRLA_Public/071126.mbx
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 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
RYE SELECT: Proofs of Claim Filing Deadline Is Dec. 1
-----------------------------------------------------
Rye Select Convertibles Portfolio, Ltd.'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.
Rye Select'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
TRISTAR INT'L: Proofs of Claim Filing Deadline Is Dec. 1
--------------------------------------------------------
Tristar International Sales Corp.'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.
Tristar International's shareholders agreed on Sept. 26, 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
=========
C H I L E
=========
QUEBECOR WORLD: Market Status Cues Refinancing Plan Withdrawal
--------------------------------------------------------------
Quebecor World Inc. has withdrawn its refinancing plan involving
an offer of approximately CDN$250 million of its equity shares,
an offer on a private placement basis of an aggregate of $500
million of new debt securities and amendments to the company's
secured credit facilities.
The company has decided to withdraw the refinancing plan due to
adverse current financial market conditions. The company will
continue to evaluate financing alternatives, including the
issuance of equity and debt securities when conditions are more
favourable, asset sales and sale leaseback transactions and
explore other alternatives.
To that effect, the board will hire independent financial
advisors.
In this connection, Quebecor Inc. has taken note of and agreed
with the decision by Quebecor World to withdraw its refinancing
plan. As the controlling shareholder, Quebecor Inc. related
that it will cooperate in the exploration of other alternatives.
About Quebecor World Inc.
Headquartered in Montreal, Quebec, Quebecor World Inc. (TSX:
IQW)(NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides
market solutions, including marketing and advertising
activities, well as print solutions to retailers, branded goods
companies, catalogers and to publishers of magazines, books and
other printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail. In Canada it has 17
facilities in five provinces, through which it offers a mix of
printed products and related value-added services to the
Canadian market and internationally. Quebecor World has
approximately 27,500 employees working in more than 120 printing
and related facilities in the United States, Canada, Argentina,
Austria, Belgium, Brazil, Chile, Colombia, Finland, France,
India, Mexico, Peru, Spain, Sweden, Switzerland and the United
Kingdom. In March 2007, it sold its facility in Lille, France.
Quebecor World (USA) Inc. is its wholly owned subsidiary.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Moody's Investors Service rated Quebecor World
Inc.'s new US$400 million senior unsecured note issue Caa1. At
the same time, ratings for about US$1.6 billion of existing
senior unsecured notes for QWI and its wholly-owned subsidiary
companies, Quebecor World Capital Corporation and Quebecor World
Capital ULC, were downgraded to Caa1 from B3.
Standard & Poor's assigned its 'B' debt rating to Quebecor
World's proposed US$400 million senior unsecured notes due 2014.
The 'B' debt rating will be placed on CreditWatch with negative
implications.
===============
C O L O M B I A
===============
ECOPETROL: Inks Pact with Merhav for Ethanol Project
----------------------------------------------------
Colombia's state-owned oil firm Ecopetrol said in a filing with
the Colombian financial regulator Superfinanciera that it has
signed a memorandum of understanding with Israel's Merhav for
the development of an ethanol project in Colombia.
The project is under Ecopetrol's initiative to promote cleaner-
burning fuel usage, Business News Americas relates.
About Merhav
Headquartered in Ashdod, Israel, MERHAV-Ceramic & Building
Materials Ltd. develops, produces, markets and sells products
such as taps, soap dishes, bath products, showers, pipe systems,
sanitary products, toilet seats and bowls for the construction
industry. It also offers tank and bathroom installation removal
and refitting. Merhav's products are sold on the Israeli
domestic market, and are exported to Europe and North America.
Subsidiaries include Harsa Studio - Manufacturer for Sanitary
Utensils Ltd., Harsa Design and Marketing Ltd, and Hamat
Armatures & Castings Ltd. MERHAV-Ceramic & Building Materials
Ltd. is.
About Ecopetrol
Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government. The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products. Ecopetrol is Latin America's
fourth-largest integrated-oil concern. Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas. Ecopetrol
produced 385,000 barrels a day of oil and gas in 2006 and has
330,000 barrels a day of refining capacity, according to the
company's Web site. In 2005 it produced about 60 percent of
Colombia's daily output.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A.'s foreign
and local currency issuer default ratings at 'BB+' and 'BBB-',
respectively. Fitch said the outlook for all ratings is stabl
===================================
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 Services, Inc. has announced that Messrs.
Robert B. Holland, III, J. Livingston Kosberg, Dennis
McCuistion, Joseph P. O'Neill, and Frank A. Rossi resigned from
the company's Board of Directors.
These former directors have agreed to dismiss their lawsuit,
without prejudice, seeking a declaratory judgment that they had
not breached their fiduciary duties in responding to the offer
by Chairperson of the Affiliated Computer Services Board of
Directors and Cerberus Capital Management, L.P., Darwin Deason,
to acquire the company.
About Affiliated Computer Services
Headquartered in Dallas, Affiliated Computer Services Inc.
(NYSE: ACS) -- http://www.AffiliatedComputer-inc.com/ --
provides business process outsourcing and information technology
solutions to world-class commercial and government clients. The
company has more than 58,000 employees supporting client
operations in nearly 100 countries. The company has global
operations in Brazil, China, Dominican Republic, India,
Guatemala, Ireland, Philippines, Poland, and Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 6, 2007, Standard & Poor's Ratings Services has kept its
'BB' corporate credit and senior secured ratings on Affiliated
Computer Services Inc. on CreditWatch with negative
implications, where they were placed on Mar. 20, 2007.
AFFILIATED COMPUTER: Replacement Directors Join Board
-----------------------------------------------------
The independent directors of Affiliated Computer Services Inc.'s
board of directors have completed their review of the
replacement directors proposed by Darwin Deason, chairman of the
board. No shareholders suggested any alternative nominees to
those nominated by Mr. Deason.
"We have determined that we have no reason to conclude that the
nominees are not independent of Mr. Deason and the company's
management," Dennis McCuistion said.
Effective Nov. 21, 2007, Messrs. Robert B. Holland, III, J.
Livingston Kosberg, Dennis McCuistion, Joseph P. O'Neill and
Frank A. Rossi resigned from the company's board. The remaining
directors have appointed Frank Varasano, Ted B. Miller, Jr.,
Richard W. Spears, and Kurt R. Krauss to fill the resulting
vacancies.
Mr. John H. Rexford also resigned from the company's board
effective Nov. 21, 2007, leaving the board to consist of four
independent directors and two management directors. Neither Mr.
Deason nor any member of the company's management or board has
any prior relationship with any of the newly elected independent
directors.
Frank Varasano
Mr. Varasano served as executive vice president of Oracle
Corporation from 1999 to 2001, where he was responsible for
marketing, sales and consulting to Oracle's 400 largest product
producing clients and was a member of the executive committee.
Prior to that, Mr. Varasano held several senior management
positions during his 26-year tenure at Booz Allen Hamilton. As
a senior vice president, he led Booz Allen Hamilton's
engineering and manufacturing practice, New York office and
United States regional profit center.
He also served on the firm's board of directors and executive
committee. From 2005 to 2006, Mr. Varasano served as a director
of Loudeye Corporation, serving on the compensation committee
and the special committee that led the analysis and review of
the sale of Loudeye to Nokia Corp.
Mr. Varasano holds a Masters in Business Administration from
Harvard Business School and a Bachelor of Science Degree from
the United States Naval Academy. He also served as an officer
aboard the USS Patrick Henry, a nuclear submarine.
Ted B. Miller, Jr.
From 1996 to 2001, Mr. Miller was the chief executive officer of
Crown Castle International Corp., a wireless communications
company he founded in 1995, which grew from start up to an
US$11.1 billion market capitalization. He was chairman of the
Crown Castle board of directors from 1999 to 2002.
Prior to founding Crown Castle, Mr. Miller was involved in the
commercial real estate development, management and brokerage
business and various investments including the media business as
an original licensee of Blockbuster Video. Mr. Miller is
currently managing director of Imperium International LLC and
president of 4M Investments LLC, both international private
investment companies.
He is currently the chairman and majority shareholder of
M7 Aerospace LP, an internationally diversified aerospace
service, manufacturing and technology company. He is also vice
chairman and majority shareholder of Intercomp Technologies LLC,
a payroll outsourcing company with operations in Europe. Mr.
Miller received a Juris Doctor from Louisiana State University
and a Bachelor of Business Administration from the University of
Texas.
Richard W. Spears
From 1980 to 1992, Mr. Spears was senior vice president, law and
human resources, of Ashland Oil Inc., then a Fortune 100
company. From 1992 to 2003, he was a co-owner and director of
Kentucky Bank and Trust Co. From 1992 to 1994, Mr. Spears
served as of counsel to Greenebaum, Doll & McDonald PLLC, a
corporate law firm with offices in Kentucky, Ohio, Tennessee and
the District of Columbia.
Currently, Mr. Spears is President and a director of Ashmark,
Inc., a private retail venture, which he co-founded. Mr. Spears
received a Bachelor of Laws from the University of Kentucky
College of Law and a Bachelor of Arts in Economics from
Georgetown College.
Kurt R. Krauss
From 1978 to 1992, Mr. Krauss was a partner with Booz Allen
Hamilton. He also served on the firm's board of directors and
executive committee. From 1992 to 1997, Mr. Krauss was managing
partner of the Mead Group, a management consulting firm which he
founded with offices in Greenwich, Connecticut, and London,
England.
From 1997 to 2000, he served as chief financial officer of
Burson-Marsteller, a public relations and public affairs firm.
Currently, Mr. Krauss is the managing member of Sachem
Investments LLC, an investment company he founded in 2001.
Mr. Krauss currently serves on the board of directors of
Prescient Medical Inc., for which he is the audit committee
chairman, and has served on the boards of directors of Zila,
Inc., Loudeye Corporation and several other not-for-profit
organizations.
Mr. Krauss received a Master of Science in Industrial
Administration from Carnegie-Mellon University and a Bachelor of
Arts in Mathematics from Heidelberg College.
About Affiliated Computer
Headquartered in Dallas, Affiliated Computer Services Inc.
(NYSE: ACS) -- http://www.AffiliatedComputer-inc.com/ --
provides business process outsourcing and information technology
solutions to world-class commercial and government clients. The
company has more than 58,000 employees supporting client
operations in nearly 100 countries. The company has global
operations in Brazil, China, Dominican Republic, India,
Guatemala, Ireland, Philippines, Poland, and Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov 6, 2007, Standard & Poor's Ratings Services kept its 'BB'
corporate credit and senior secured ratings on Dallas-based
Affiliated Computer Services Inc. on CreditWatch with negative
implications, where they were placed on March 20, 2007.
=============
E C U A D O R
=============
PETROECUADOR: Says Crude Storage Almost Reaching Capacity Limit
---------------------------------------------------------------
Ecuadorian state-run Petroecuador's production unit chief Pedro
Freile told Reuters that the company has warned foreign
companies that its crude storage space is almost reaching
capacity, which could disrupt production.
Mr. Freile commented to Reuters, "We are warning them that if
our storage space gets filled up, there could be production
problems. They have to be ready with their own storage
facilities."
According to Reuters, Petroecuador gets part of the crude
foreign companies extract under joint venture contracts.
Petroecuador and private firms would have to reduce production
in the event of a buildup in the storage tanks.
Mr. Freile assured Reuters that Petroecuador will soon solve the
problem. He didn't say the causes for the storage scarcity or
when will the tanks reach their maximum capacity.
Some purchasers failed to collect on time their Ecuadorean
crude, generating the accumulation, a news daily in Ecuador
says, citing Petroecuador officials.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
* ECUADOR: Rafael Correa Slams Oil Tax Raise Int'l Arbitration
--------------------------------------------------------------
Ecuadorian President Rafael Correa has criticized international
arbitration on the nation's oil tax hike, describing it as "a
biased tool of the rich world," Reuters reports.
Reuters relates that President Correa increased in October 2007
the tax to 99% from 50% of the extra oil revenues generated by
firms above a contractual price.
Foreign investors in Ecuador told Reuters that they may turn to
tribunals over a disputed tax on oil earnings.
Meanwhile, Ecuador would form a special working group with China
to discuss the tax, Reuters says, citing President Correa. The
Eucuadorian leader said, "in the long term he would like to see
Latin American tribunals deciding similar spats."
President Correa commented to Reuters, "(We aim to) construct
regional tribunals to discuss any problem within Latin America,
knowing that justice will be applied. With an institution which
is a cheerleader for transnational capital, which is financed by
this capital and is in debt to these countries where the capital
is -- what guarantee of impartiality are we going to have?"
Ecuador and China hoped the working group had set a year-end
target for reaching an accord. The two nations had signed two
more deal covering the upgrading of two Ecuadorian plants and
boosting recovery rates at the nation's mature fields, Reuters
notes, citing Ecuadorian energy and mines minister Galo
Chiriboga.
"We have a huge trade deficit with China. For China that is not
interesting, it's just US$500 million but for us it is a lot and
increasing," President Correa told Reuters.
As reported in the Troubled Company Reporter-Latin America on
Nov. 22, 2007, Standard & Poor's Ratings Services raised its
long-term sovereign credit rating on the Republic of Ecuador to
'B-' from 'CCC'. The short-term sovereign credit rating on the
republic remains 'C'. S&P says the outlook on the rating is
stable.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 1, 2007, Fitch Ratings affirmed and removed from Rating
Watch Negative the long-term foreign currency Issuer Default
Rating of Ecuador at 'CCC', the country ceiling at 'B-' and the
short-term IDR at 'C'. Fitch said the rating outlook is stable.
In addition, these bond ratings were affirmed:
-- Uncollateralized foreign currency bonds at 'CCC/RR4';
-- Collateralized foreign currency Par and Discount Brady
bonds at 'CCC+/RR3'.
* ECUADOR: Threatens To Terminate America Movil Service Contract
----------------------------------------------------------------
The Ecuadorian government repeated a threat to revoke its
service contract with Mexican telecom firm America Movil if the
company fails to fix technical problems, Dow Jones Newswires
says.
Dow Jones relates that the Ecuadorian telecommunications
regulator gave America Movil a month to resolve problems with
the network of its unit Porta Celular.
Porta Celular had service problems on Sept. 25, 2007 that
resulted to some clients without service for around six hours,
Dow Jones says, citing the government. The total outages were
for over 19 hours across Ecuador.
Dow Jones notes that the concessions of the two private-sector
operators, which are local units of America Movil and Spain's
Telefonica, expire by year-end. The firms have an option to
extend their contract for another 15 years.
The Ecuadorian government told Dow Jones that if no accord is
reached by year-end it will launch a tender process to select
new operators.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 1, 2007, Fitch Ratings affirmed and removed from Rating
Watch Negative the long-term foreign currency Issuer Default
Rating of Ecuador at 'CCC', the country ceiling at 'B-' and the
short-term IDR at 'C'. Fitch said the rating outlook is stable.
In addition, these bond ratings were affirmed:
-- Uncollateralized foreign currency bonds at 'CCC/RR4';
-- Collateralized foreign currency Par and Discount Brady
bonds at 'CCC+/RR3'.
=========
H A I T I
=========
* HAITI: Obtains US$25-Million Financing for Road Rehabilitation
----------------------------------------------------------------
The Inter-American Development Bank has approved a US$25 million
grant for a program to improve road networks in Haiti, where a
90-km (55-mile) trip on a principal route can take more than six
hours.
The operation is expected to be the first of four annual grants
totaling US$100 million the IDB plans to approve over the next
four years to support Haiti's efforts to foster regional
development by linking areas that are virtually isolated from
the rest of the country. The Canadian International Development
Agency will contribute CDN$75 million (about US$76 million) to
the program.
The program will help improve and maintain 146 kilometers of
primary roads and 250 kilometers of rural roads in the Sud,
Grande Anse and Nippes departments of Haiti's southern
peninsula. It will also finance the construction of up to 18
bridges on the primary road from Gros Morne to Port-de-Paix in
northeastern Haiti.
Resources will be earmarked to strengthen the southern
departmental offices of Haiti's Ministry of Public Works,
Transportation and Communications, including training for staff
and the purchase of office equipment, tools, vehicles and road
maintenance equipment.
The program will also help the departmental offices improve
their capacity to manage road maintenance work, which will be
carried out either by their own crews or by local companies and
microenterprises, helping generate jobs and income for residents
in the areas where the investments will be made.
CIDA's contribution will finance the rehabilitation of the road
between Les Cayes and Jeremie, as well as the improvement of
urban crossings and construction of bridges in that road section
of southern Haiti. It will also support maintenance work and a
project to foster the participation of local women in jobs
arising from the program, such as street cleaning and upkeep in
urban areas.
Haiti is the leading recipient of Canadian aid in the Western
Hemisphere. Earlier this year CIDA contributed CAD$19.5 million
to an IDB program that supports medium-size infrastructure
projects with a high economic impact. The program has financed
work on roads, bridges, ports, cargo terminals, irrigation and
drainage systems, public marketplaces and potable water.
* * *
Haiti is currently seeking international help to spur economic
development in the country. President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructure will be alleviated with
increased international assistance.
===============
H O N D U R A S
===============
* HONDURAS: Seeks Congressional Okay on Bunker Fuel Import
----------------------------------------------------------
The Honduran executive branch has sought congressional
authorization to import bunker fuel from Venezuela under the
Petrocaribe initiative, Business News Americas reports, citing
the presidential legal advisor Enrique Flores Lanza.
BNamericas relates that the importation of bunker fuel under
Petrocaribe is aimed at lessen the impact of record-high fuel
prices on the Honduran economy, particularly the power sector,
where over 50% of generation comes from thermo plants.
Mr. Lanza said in a statement that Petrocaribe would provide
resources to fund subsidies and hydroelectric projects.
Under Petrocaribe, member nations pay 60% of the cost of
Venezuelan oil at the time of purchase. The members can retain
40% of the cost as funding for development projects. "The
financing is then amortized after a two-year grace period over
23 years at 1% annual interest," BNamericas states.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
AIR JAMAIKCA: Says Job Cuts Will be Last Resort
-----------------------------------------------
Air Jamaica's management has assured the National Workers Union
vice president Granville Valentine that layoffs will be the last
resort in trying to save the airline, Radio Jamaica reports.
As reported in the Troubled Company Reporter-Latin America on
Nov. 22, 2007, the Air Jamaica board allegedly ordered that
audits be conducted in all departments to determine which areas
of the work force should be cut. Air Jamaica sent a notice to
its workers proposing a one-year voluntary leave of absence.
Air Jamaica's Executive Chairperson Shirley Williams confirmed
that the airline's work force would be reduced, saying that
there is an "urgent need" to lessen costs. Some areas of the
airline are over-staffed. The Bustamante Industrial Trade Union
representing some of Air Jamaica's employees rejected the
voluntary leave of absence proposal.
Air Jamaica will conduct a staff audit. If there is need for
the dismissal of workers, proper procedures will be observed,
Radio Jamaica states, citing Mr. Valentine.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private in
1994. The Jamaican government does not plan to on Air Jamaica
permanently.
* * *
On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.
MAAX HOLDINGS: Adopts Management Retention Plan
-----------------------------------------------
MAAX Holdings Inc. and several of its affiliated companies
adopted a management retention plan in an effort to retain key
employees of the MAAX corporate family. Concurrently with the
adoption of the retention plan, MAAX Corp. amended its existing
credit facility to reflect and accommodate the adoption of the
retention plan.
"Retaining our management team is vital to our continued
success," Paul Golden, president of MAAX Corp. and president and
chief executive officer of the company, said. "Our employees
bring value to our company, and we are pleased to take this step
toward keeping this talented group of individuals in the MAAX
organization."
The company is exploring strategic alternatives to improve its
capital structure and increase its liquidity for general
corporate purposes. Strategic alternatives being explored by
the company include:
-- operational enhancements;
-- cost reduction programs;
-- refinancing or repayment of debt and issuance of new
debt or equity.
The company stated that there can be no assurance that the
exploration of strategic alternatives will result in any
transaction. The company remains committed to improving its
overall operations and enhancing its market position.
About MAAX Holdings
Headquartered in Brooklyn Park, Minnesota, MAAX Holdings Inc. --
http://www.maax.com/-- is a North American manufacturer of
bathroom products, and spas for the residential housing market.
MAAX offerings are available through plumbing wholesalers, bath,
and spa specialty boutiques and home improvement centers. The
company currently operates 18 manufacturing facilities and
independent distribution centers throughout North America and
Europe. MAAX Corporation is a subsidiary of Beauceland
Corporation, itself a wholly owned subsidiary of the company.
The company has operations in Jamaica and Puerto Rico.
The company's consolidated balance sheet at Aug. 31, 2007,
showed US$507.5 million in total assets, US$604.5 million in
total liabilities, and US$7.0 million in redeemable preferred
stock, resulting in a US$104.0 million total shareholders'
deficit.
* * *
Maax Holdings Inc. still carries Standard & Poor's Ratings
Services' CCC- long-term corporate credit rating.
=================
G U A T E M A L A
=================
GOODYEAR TIRE: To Pay US$324MM Settlement to Entran II Class
------------------------------------------------------------
On Nov. 17, 2004, New Jersey District Court Judge Stanley
Chesler granted final approval to a settlement of the Entran II
Hose Amended Class Action against The Goodyear Tire & Rubber
Company.
The case, "Galanti v. The Goodyear Tire & Rubber Company," was
filed in the United States District Court for the District of
New Jersey while the "Kelman v. The Goodyear Tire & Rubber
Company et al." was filed in the Ontario Superior Court of
Justice.
The amended settlement resolves a lawsuit over whether Goodyear
and Goodyear Canada Inc. made defective Entran II hose used in
radiant heating and snow-melting systems. The hose was sold and
distributed by Heatway Systems.
Entran II was also known as Twintran, Nytrace, Entran II Trace,
Entran II Wire, Entran 2, Entran 2 Trace, and Entran 2 Wire.
The settlement was approved in 2004. As a result, a US$324
million settlement fund was created for class members.
Pursuant to an amended settlement, cash payments will pay given
to people in the U.S. and Canada who are current or former
owners of property where the hose was, or still is, installed.
Claims filing deadline was Nov. 17, 2009.
Info for Owners of Property in the United States
Current or former owner of property in the United States
including its territories and possessions in which Entran II
hose was or is used for radiant heating or snowmelting, may
obtain complete information about their legal rights and choices
under the Amended Settlement at:
http://ResearchArchives.com/t/s?258d
Info for Owners of Property in Canada
Current or former owner of property in Canada in which Entran II
hose was or is used for radiant heating or snowmelting, may
obtain complete information about their legal rights and choices
under the Amended Settlement at:
http://ResearchArchives.com/t/s?258e
For further information on the proposed settlement, contact:
Entran II Settlement
Claims Administrator
P.O. Box 24
Minneapolis, MN 55440-0024
Tel: 1-800-254-9222
http://www.entraniisettlement.com/
About Goodyear
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear Tire has marketing operations in almost
every country around the world including Chile, Colombia,
Guatemala, Jamaica and Peru in Latin America. Goodyear employs
more than 80,000 people worldwide.
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services raised its ratings on
Goodyear Tire & Rubber Co., including its corporate credit
rating to 'BB-' from 'B+'. In addition, the ratings were
removed from CreditWatch where they were placed with positive
implications on May 10, 2007. Recovery ratings were not on
CreditWatch. These ratings still apply as of Nov. 8, 2007.
===========
M E X I C O
===========
ATHLETES WORLD: Forzani Group Discloses Acquisition Plans
---------------------------------------------------------
The Forzani Group Ltd. said Wednesday that it proposes to
acquire 100% of bankrupt Athletes World Limited.
The acquisition of Athletes World, Forzani said, will be
financed through existing credit facilities.
Forzani said that Athletes World will seek court approval of the
transaction later this week. If that approval is granted, it is
expected that the transaction will close at the end of November
subject to the satisfaction of conditions customary in a
transaction of this nature. Following the acquisition, Forzani
intends to support the continuation of the restructuring of
Athletes World under the Companies' Creditors Arrangement Act.
In its most recently csompleted fiscal year, Athletes World
generated US$186 million in revenues, and currently operates 138
stores.
The acquisition of Athletes World represents a great opportunity
for Forzani to add another recognized national banner. Forzani
management believes that Forzani buying power, operational
expertise and experience will provide the necessary platform on
which to base Athletes World's long-term profitability upon its
emergence from CCAA proceedings.
In order to maintain Athletes World's positioning and identity,
Forzani anticipates that Athletes World will, as it has with its
other banners, maintain dedicated office staff, store employees
and operational functions. Once the proposed acquisition is
completed, senior management of Forzani will host a conference
call to discuss the acquisition and its plans for the Athletes
World banner.
As reported in the Troubled Company Reporter on Nov. 7, 2007,
Athletes World Ltd., Canadian unit of Bata Ltd., filed for
protection from its creditors under the Companies' Creditors
Arrangement Act with the Ontario Superior Court of Justice on
Oct. 30, 2007.
The company, which is losing money to competitors and facing
thousand of dollars in tax claims, said it hopes to sell off its
assets through the bankruptcy process. The company has been in
negotiation with Michael Gold relating to the sale of the
company's assets and had reached an agreement last May.
However, Mr. Gold backed out on the deal on October 29 which led
to the company's bankruptcy filing the next day.
Athletes World owes about US$152 million, about US$115 million
of which is owed to its parent company, Bata.
About The Forzani Group
The Forzani Group Ltd. (TSX: FGL) --
http://www.forzanigroup.com/-- is Canada's largest national
retailer of sporting goods, offering a comprehensive assortment
of brand-name and private-brand products, operating stores from
coast to coast, under corporate banners: Sport Chek, Coast
Mountain Sports, Sport Mart, National Sports and Hockey Experts.
About Athletes World
Headquartered in Ontario, Athletes World Ltd. is a shoe retailer
with over 100 stores in Canada. It is the only remaining
Canadian retailer unit of Bata Ltd., -- http://www.bata.com/--
a privately owned global shoe manufacturer and retailer. Bata
is led by a third generation of the Bata family. With
operations in 68 countries, Bata is organized into four business
units. Bata Canada, based in Toronto, serves the Canadian
market with 250 stores. Based in Paris, Bata Europe serves the
European market with 500 stores. With supervision located in
Singapore, Bata International has 3,000 stores to serve markets
in Africa, the Pacific, and Asia, Finally, Bata Latin America,
operating out of Mexico City, sells footwear throughout Latin
America. Bata owns more than 4,700 retail stores and 46
production facilities. Total employment for the company exceeds
50,000.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Athletes World Ltd., Canadian unit of Bata Ltd.,
filed for protection from its creditors under the Companies'
Creditors Arrangement Act with the Ontario Superior Court of
Justice on Oct. 30, 2007, Marina Strauss writes for Globe and
Mail.
=======
P E R U
=======
* PERU: Inks 18 Oil & Gas Deals with Foreign Companies
------------------------------------------------------
RigZone reports that the Peruvian government has entered into 18
oil and gas exploration contracts with companies from the United
States, Canada, Colombia, Russia, Ireland, South Korea and
Vietnam for a minimum of US$600 million in investment.
According to President Alan Garcia, the South American nation
had never signed so many exploration pacts at one time, calling
it an "exceptional night," the same report says.
RigZone relates that Peru had a total of 24 oil and gas
exploration signed contracts this year.
Mr. Garcia disclosed, during the signing ceremony at the
Government Palace in Lima, the positive effect of the rise in
oil prices was that "the countries that can produce are in a
situation to attract investment from large companies" and obtain
better royalty rates, RigZone says.
Among the companies that signed the contracts are:
-- U.S.-based Vetra Energy Group,
-- BPZ Energy,
-- Hunt Consolidated and Occidental Petroleum Corporation,
-- Canada's Pacific Stratus Energy and Talisman Energy,
-- Colombia's Ecopetrol,
-- Russia's Samaraneftegas,
-- Ireland's PanAndean Resources,
-- South Korea's SK,
-- Vietnam Oil and Gas Group and
-- Peru's Petro Tech
RigZone adds that the companies have intended to discover the
the jungle regions of Loreto and Ucayali, the northern provinces
of Tumbes, Piura, Lambayeque and La Libertad, and the Andean
provinces of Puno, Huanuco, Pasco and Ancash.
Peru will be a petroleum exporter, Mr. Garcia asserts, adding
that it was part of the government's goal.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Standard & Poor's Ratings Services assigned its
'BB+' foreign currency credit rating to the Republic of Peru's
(BB+/Stable/B foreign, BBB-/Stable/A-3 local currency sovereign
credit ratings) US$1.24 billion global bond due in 2037 issued
as part of a new liability management operation.
=====================
P U E R T O R I C O
=====================
BADRAN STORES: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Badran Stores Corp.
Calle Atocha #24
Ponce, PR 00730
Bankruptcy Case No.: 07-06728
Chapter 11 Petition Date: November 13, 2007
Court: District of Puerto Rico (Old San Juan)
Debtor's Counsel: Madeline Soto Pacheco, Esq.
Lube & Soto Law Offices, P.S.C.
702 Calle Union Apt G-1
Condominio Unimar
San Juan, pr 00907-4202
Tel: (787) 722-0909
Estimated Assets: US$1 Million to US$100 Million
Estimated Debts: US$1 Million to US$100 Million
Debtor's list of its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Rubio Imports, Inc. Trade debt US$107,591
P.O. Box 3933
Aguadilla, PR 00605
Flamingo, Inc. Distribuidora Trade debt US$63,288
P.O. Box 9066537
San Juan, PR 00906
Banco Santander Puerto Rico Trade debt US$45,000
P.O. Box 362589
San Juan, PR 00936-2589
Fun Tech Imports, Inc. Trade debt US$39,160
Royal Manufacturing Inc. Trade debt US$38,462
Linen Universe Trade debt US$36,360
Golden Sheets Factory, Inc. Trade debt US$29,000
Nucci International Corp. Trade debt US$25,976
Crest Home Design Trade debt US$25,116
Goldenvale, Inc. Trade debt US$24,434
Tomas R. Rivera & Hijo Trade debt US$23,103
Vicente, Inc. Rent arrears US$23,000
Horizon Int'l. Shipping, Inc. Trade debt US$22,451
Gindi Imports, Ltd. Trade debt US$19,232
Suarez Sales Inc. Trade debt US$17,093
Gold American Art Inc. Trade debt US$16,761
Sandra Santiago Rivera, Esq. Civil complaint US$16,264
Omega/Nabat Inc. Trade debt US$16,000
Better Homes Plastics Corp. Trade debt US$15,312
Lati Fashions Int. Inc. Trade debt US$11,536
CONCHITA SUPERMARKET: Case Summary & 5 Largest Unsecured Lenders
----------------------------------------------------------------
Debtor: Conchita Supermarket
Ave. Santa Rosa 18 Altos Tienda Conchita
Centro Comercial Las Cumbres
San Juan, PR 00969
Bankruptcy Case No.: 07-06722
Chapter 11 Petition Date: November 13, 2007
Court: District of Puerto Rico (Old San Juan)
Debtor's Counsel: Francisco R. Moya Huff, Esq.
Bco Popular Building Suite 401 Tetuan 206
San Juan, PR 00901-1802
Tel: (787) 723-0714
(787) 724-2447
Fax: (787) 725-3685
Estimated Assets: US$1 Million to US$100 Million
Estimated Debts: US$1 Million to US$100 Million
Debtor's list of its five Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
Eurobank US$2,901,551
P.O. Box 191009
San Juan, PR 00919-1009 Collateral:
US$1,175,000
Unsecured:
US$1,249,600
Banco Popular de Puerto Rico US$2,651,740
P.O. Box 362708
San Juan, PR 00936-3969 Collateral:
US$194,000
Unsecured:
US$421,000
Packers Provisions of PR US$616,290
P.O. Box 363969
San Juan, PR 00936-3969
Suiza Dairy Corp. US$407,679
Coca-Cola Puerto Rico US$269,980
V. Suarez & Co. US$183,558
Holsum de PR US$175,352
Mendez & Co. US$120,705
Pan Pepin, Inc. US$116,839
Malgor & Co. Inc. US$105,039
Municipality of San Juan US$103,418
Ballester Hermanos, Inc. US$101,235
Herba de Puerto Rico LLC US$94,644
Herba de Puerto Rico US$94,644
Internal Revenue Services US$93,000
MOVIE GALLERY: Judge Tice Approves Store Closing Sales Process
--------------------------------------------------------------
The Honorable Douglas O. Tice of the U.S. Bankruptcy Court for
the Eastern District of Virginia permitted Movie Gallery, Inc.
and its debtor-affiliates to conduct, in their sole discretion,
the store closing sales procedures.
However, that in the event the Debtors and each landlord reach
an agreement with respect to the procedures applicable to
specific store locations, and to the extent that conflict
between the agreement and the procedures arises, the agreement
takes full control with respect to all store locations it
covers.
Subject to the Debtors' compliance with the procedures, and to
the right of parties to object, landlords at or lessors of the
Debtors' store locations are enjoined from interfering with or
restricting in any way the Debtors' ability to conduct the
closing sales. State and local governments are also enjoined
from directly or indirectly interfering with, and restricting or
penalizing the conduct of the Debtors and the landlords at store
locations relating to, or arising out of, the closing sales.
The Court also authorized the Debtors to pay limited liquidation
and closure performance bonuses and payments pursuant to a
severance plan, provided that for the duration of the store
closing sales, the liquidation, and bonuses do not not exceed:
(a) US$1.00 per hour worked per store-level employee;
(b) US$100 per week per store director or store manager; and
(c) US$2,000 in total per district manager.
The Debtors are authorized, in their sole discretion, to provide
severance payments to eligible store managers. No liquidation,
severance payments, and bonuses will be paid to an "insider" of
the Debtors within the meaning of Section 503(c) of the
Bankruptcy Code.
In addition, the first US$261,000 of proceeds received or will
be received by the Debtors from closing sales taking place in
"Texas Political Subdivisions", will be deemed segregated. All
liens, claims and encumbrances of the Subdivisions, including
but not limited to 2007 and 2008 property taxes, will be of the
same validity, extent, and priority as the segregated proceeds.
The proceeds may not be distributed except by a Court-approved
agreement between the Subdivisions and the Debtors.
Accordingly, all segregated proceeds exceeding the amounts
asserted by the Subdivisions' valid secured claims will be
subject to the terms of the DIP Credit Agreement.
Objections Withdrawn
As previously reported, various Landlords asked the Court to
modify the Procedures to, among others, (i) require the Debtors
to designate a business contact, instead of an attorney, to
attend to any issues that may arise during the closing sales;
and (ii) allow the Landlords to file and have heard any closing
sales disputes on an expedited basis upon five days' notice.
ADLP-L&M, LLC, and Vision Broadway, LLC, joined the handful of
objecting landlords with respect to certain procedures in the
conduct of the Debtors' closing sales.
In light of separate settlement agreements reached with the
Debtors, these landlords withdrew their objections to the
Debtors' store closing sales procedures without prejudice:
* Plaza Associates, a successor in interest to KZ Holdings,
LLC, composed of The Bender Family Trust, Morton Bender and
Joyce Bender, Trustees, The Debra Colman 2003 Trust, Robert
Kroll, Trustee, and Robert and Nancy Kroll;
* West Acres, LLC, Centre At Woodstock, LLC, Gr/Fenkell
Associates, LLC, and Romeo Retail, LLC;
* Clairmont Center, LLC;
* McLaren Investment, LLC, as an assignee from Ferrari
Investment, LLC;
* BTS Boonton, L.L.C., Grove Hall Retail Center, LLC, and
Highlands Plaza LLC;
* The Marver Trust;
* Cole MT Wayland MI, LLC;
* Darien Associates, LP;
* F.I. Mentor Commons, Ltd.;
* Aronov Realty Management, Centro Properties Group,
Developers Diversified Realty Corporation, Federal Realty
Investment Trust, General Growth Management, Inc., Levin
Management Corporation, The Morris Companies Affiliates and
Regency Centers L.P.;
* FC Pikesville LLC;
* Gibraltar Management, Kimco Realty Corporation, Realty
Income Corporation, Weingarten Realty Investors, RMC
Property Group, Basser Kaufman, Ltd., Realty Income Texas
Properties, L.P., BC Wood Properties, Holiday CVS, L.L.C.,
Massachusetts CVS Pharmacy, L.L.C., Louisiana CVS Pharmacy,
L.L.C., Arbor Drugs, Inc, Sunrise Plaza Associates, L.P.,
Oekos Management Corporation), on behalf of CVS Pharmacy
and affiliates, BC Wood Properties, Basser-Kaufman,
Gibraltar Management, Kimco Realty Corporation, King
Entertainment Okeechobee, Inc., King Entertainment, Inc.,
Oekos Management Corporation, RMC Property Group, Realty
Income Corporation, Realty Income Texas Properties, L.P.,
Sunrise Plaza Associates, L.P., and Weingarten Realty
Investors;
* Wal-Mart Stores, Inc.;
* GE Commercial Finance Business Property Corporation;
* HRE Properties, Inc. and Scarborough Associates, LP;
* Safeway, Inc.; and
* MDMK Farmington LLC
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. It operates over 4,600 stores in the United
States, Canada, and Mexico under the Movie Gallery, Hollywood
Entertainment, Game Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, is the Debtors' local counsel. The Debtors'
claims & balloting agent is Kutzman Carson Consultants LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000.
The Official Committee of Unsecured Creditors has selected
Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B.
Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl &
Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at
Miles & Stockbridge PC, as its local counsel. (Movie Gallery
Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service
Inc.; http://bankrupt.com/newsstand/or 215/945-7000)
The Debtors' spokeswoman Meaghan Repko said that the Plan will
not be filed before November 27, and the company does not expect
to exit bankruptcy protection before the second quarter of 2008.
OSCAR ROJAS: Case Summary & Seven Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Oscar Vaz Rojas
#25 Calle Almanciga
Seccion Cautiva
Hacienda San Jose
Caguas, PR 00725
Bankruptcy Case No.: 07-06593
Chapter 11 Petition Date: November 7, 2007
Court: District of Puerto Rico (Old San Juan)
Debtor's Counsel: Carlos Rodriguez Quesada, Esq.
Law Office of Carlos Rodriguez Ques
P.O. Box 9023115
San Juan, PR 00902-3115
Tel: (787) 724-2867
Estimated Assets: US$1 Million to US$10 Million
Estimated Debts: US$1 Million to US$10 Million
Debtor's list of his Seven Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Maritza Villamil Conjugal property US$969,881
Cond. Playa Serena settlement
7063 Carr. 187 Apt. 503
Carolina, PR 00979-7033
Turaser Inc. Loan US$406,514
Calle Beleares #352 - Altos
Esquina FD Roosevelt
San Juan, PR 00920
Viajes Galiana, Inc. Loan US$229,985
P.O. Box 195499
First Bank Credit card US$54,078
Dova Construction Civil Action US$23,000
Banco Popular de Puerto Rico Credit card US$10,781
BBVA Credit card US$1,109
=================
V E N E Z U E L A
=================
* VENEZUELA: Honduras Wants To Buy Bunker Fuel from Nation
----------------------------------------------------------
The Honduran executive branch has sought congressional
authorization to import bunker fuel from Venezuela under the
Petrocaribe initiative, Business News Americas reports, citing
the presidential legal advisor Enrique Flores Lanza.
BNamericas relates that the importation of bunker fuel under
Petrocaribe is aimed at lessen the impact of record-high fuel
prices on the Honduran economy, particularly the power sector,
where over 50% of generation comes from thermo plants.
Mr. Lanza said in a statement that Petrocaribe would provide
resources to fund subsidies and hydroelectric projects.
Under Petrocaribe, member nations pay 60% of the cost of
Venezuelan oil at the time of purchase. The members can retain
40% of the cost as funding for development projects. "The
financing is then amortized after a two-year grace period over
23 years at 1% annual interest," BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Fitch Ratings assigned these ratings to the
Bolivarian Republic of Venezuela's bonds under the 'El
Venezolano I' combined offer:
-- US$750 million 30-year Eurobond, 7% coupon 'BB-';
-- VEB806.250 billion 7-year variable coupon bond 'BB-';
-- VEB806.250 billion 8-year, variable coupon bond 'BB-'.
* VENEZUELA: Mr. Chavez Declares US$100 Per Barrel a Fair Price
---------------------------------------------------------------
The Australian Business relates that Venezuelan President Hugo
Chavez said US$100 per barrel is a fair price for oil, as global
crude prices approach triple digits.
Reports show that the country has demanded for higher oil prices
and tended to be more aggressive in seeking production cuts in
the Organisation of Petroleum Exporting Countries than other
members.
Mr. Chavez has utilized oil revenues to finance social
development programs, increasing his popularity at home, the
Australian Biz says.
Venezuela is the fourth-largest exporter of oil to the United
States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Fitch Ratings assigned these ratings to the
Bolivarian Republic of Venezuela's bonds under the 'El
Venezolano I' combined offer:
-- US$750 million 30-year Eurobond, 7% coupon 'BB-';
-- VEB806.250 billion 7-year variable coupon bond 'BB-';
-- VEB806.250 billion 8-year, variable coupon bond 'BB-'.
* BOND PRICING: For the Week Nov. 19 to Nov. 23
-----------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Argnt-Bocon PR11 2.000 12/3/10 ARS 60.59
Argnt-Bocon PR13 2.000 3/15/24 ARS 58.91
Arg Boden 2.000 9/30/08 ARS 27.84
Argent-Par 0.630 12/31/38 ARS 39.14
BRAZIL
------
CESP 9.750 1/15/15 BRL 61.67
CAYMAN ISLANDS
--------------
Vontobel Cayman 6.100 12/28/07 CHF 73.70
Vontobel Cayman 7.050 11/23/07 CHF 67.40
Vontobel Cayman 7.350 1/25/08 CHF 66.00
Vontobel Cayman 7.450 2/22/08 CHF 55.80
Vontobel Cayman 7.500 1/25/08 CHF 65.60
Vontobel Cayman 7.900 2/22/08 CHF 64.75
Vontobel Cayman 8.300 11/23/07 CHF 73.40
Vontobel Cayman 8.300 3/20/08 CHF 73.30
Vontobel Cayman 8.400 12/28/07 CHF 64.55
Vontobel Cayman 8.800 12/28/07 CHF 60.95
Vontobel Cayman 9.200 12/28/07 CHF 61.75
Vontobel Cayman 9.250 2/22/08 CHF 74.50
Vontobel Cayman 9.350 1/25/08 CHF 74.70
Vontobel Cayman 9.600 2/22/08 CHF 51.40
Vontobel Cayman 9.950 12/28/07 CHF 45.40
Vontobel Cayman 10.050 1/25/08 CHF 43.60
Vontobel Cayman 10.100 1/25/08 CHF 64.00
Vontobel Cayman 10.200 2/4/08 CHF 72.80
Vontobel Cayman 10.400 12/28/07 CHF 69.55
Vontobel Cayman 10.500 1/25/08 CHF 66.40
Vontobel Cayman 10.700 12/28/07 CHF 56.00
Vontobel Cayman 11.350 12/28/07 CHF 69.50
Vontobel Cayman 11.400 12/28/07 CHF 46.20
Vontobel Cayman 11.400 2/15/08 CHF 71.00
Vontobel Cayman 11.850 12/28/07 CHF 69.30
Vontobel Cayman 12.600 12/28/07 CHF 69.30
Vontobel Cayman 12.850 12/28/07 CHF 56.95
Vontobel Cayman 13.050 12/28/07 CHF 67.35
Vontobel Cayman 13.350 12/28/07 EUR 59.55
Vontobel Cayman 13.500 2/22/08 CHF 48.60
Vontobel Cayman 13.450 1/25/08 CHF 74.00
Vontobel Cayman 14.000 12/28/07 cHF 47.20
Vontobel Cayman 14.900 12/28/07 cHF 43.05
Vontobel Cayman 15.900 12/28/07 USD 64.40
Vontobel Cayman 16.000 12/28/07 EUR 54.00
Vontobel Cayman 16.000 2/4/08 USD 69.40
Vontobel Cayman 16.450 12/28/07 EUR 61.15
Vontobel Cayman 16.650 12/28/07 USD 75.00
Vontobel Cayman 16.800 12/28/07 CHF 19.70
Vontobel Cayman 18.800 12/21/07 USD 66.80
Vontobel Cayman 22.850 12/28/07 CHF 25.1-
JAMAICA
-------
Jamaica Govt. LRS 7.500 10/06/12 JMD 73.69
PERU
----
Citigroup Peru 5.844 9/28/08 PEN 6.15
Edelnor S.A. 6.750 8/09/10 PEN 6.25
Luz Del Sur 7.250 2/06/08 PEN 3.50
PUERTO RICO
-----------
Puerto Rico Cons. 6.300 11/01/33 USD 73.50
Puerto Rico Cons. 5.900 4/15/34 USD 70.50
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 USD 66.00
Petroleos de Ven 5.375 4/12/27 USD 56.82
Petroleos de Ven 5.500 4/12/37 USD 54.72
Venezuela 7.000 3/31/38 USD 72.70
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2007. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *