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 Wednesday, December 5, 2007, Vol. 8, Issue 241 Headlines A R G E N T I N A ALITALIA SPA: Ryanair Suing European Commission Over Volare Aid BURBUJAS SAICF: Proofs of Claim Verification Ends Feb. 22, 2008 COLBI SRL: Proofs of Claim Verification Deadline Is Feb. 12 COMERCIAL MENDOZA: Creditors Voting on Debt Plan on Feb. 15 CONT-COR SRL: Trustee Verifies Proofs of Claim Until March 17 CUSTODIOS SRL: Proofs of Claim Verification Deadline Is Feb. 27 DANA CORP: Active Claims Drop to 55,000 at September DANA CORP: Claimants Set to Appeal US$2-Million Settlement DOSGOR CONSTRUCCIONES: Proofs of Claim Verification Is on Feb. 5 LOGISTICA Y TRANSPORTE: Seeks for Reorganization Okay from Court LOS MIRASOLES: Proofs of Claim Verification Ends Feb. 21, 2008 MILENIUM SALUD: Proofs of Claim Verification Is Until March 17 TELECOM PERSONAL: Alcatel-Lucent Deploys Contact Center Software TENNECO INC: Closes Tender Offer for 10-1/4% Sr. Secured Notes UNION BUREAU: Trustee Verifies Proofs of Claim Until Feb. 14 VALMAX SRL: Proofs of Claim Verification Ends on Dec. 20 * ARGENTINA: Environmentalists Keep Protest Against Botnia Plant B A H A M A S ISLE OF CAPRI: Earns US$24.6 Million in Quarter Ended Oct. 28 B E R M U D A AIG PORTFOLIO: Sets Final Shareholders Meeting for Dec. 31 ECLECTIC AUSTRALIA: Proofs of Claim Filing Ends on Dec. 17 ECLECTIC AUSTRALIA: Sets Final Shareholders Meeting for Dec. 28 HER FUND: Proofs of Claim Filing Deadline Is Dec. 18 HER FUND: Will Hold Final Shareholders Meeting on Jan. 10, 2008 MINERVA INVESTMENTS: Holds Final Shareholders Meeting on Dec. 28 QPASS BERMUDA: Proofs of Claim Filing Deadline Is Dec. 12 QPASS BERMUDA: Sets Final Shareholders Meeting for Dec. 28 SEA CONTAINERS: Marathon Discloses 10.7% Equity Stake B O L I V I A COEUR D'ALENE: Shareholders Special Meeting Adjourns to Dec. 7 B R A Z I L AAR CORPORATION: Completes Summa Technology Acquisition BANCO NACIONAL: Says Steel Exports To Exceed Domestic Sales BROWN SHOE: Earns US$27 Million in Third Quarter Ended Nov. 3 DELPHI CORP: Seeks 3-Month Extension of Excl. Plan Filing Period EL PASO: Files Federal Right of Way for Ruby Pipeline Project FORD MOTOR: Overall November 2007 U.S. Sales Up 0.4 Percent GENERAL MOTORS: Overall November 2007 U.S. Sales Down 11 Percent JAPAN AIRLINES: To Launch First-Class Service on Nat'l Flights SANYO ELECTRIC: To Invest JPY350 Billion to Revive Earnings TAM SA: Inks Operational Code-Sharing Deal with Lufthansa XERIUM TECH: Acquires Roll Covers Business for US$12 Million * BRAZIL: Transpetro Inks Oil Transport Contracts with Maua C A Y M A N I S L A N D S BEAR STEARNS: Westbrook, et al. Support Chapter 15 Denial BEAR STEARNS: Samuel Cohen Sues Company Directors & Officers BEAR STEARNS: Navigator Says Supreme Court Should Hear Complaint BEAR STEARNS: Former Co-President W. Spector Gets US$23,000,000 GSCP GF: Proofs of Claim Filing Deadline Is Dec. 14 HIBIYA SEVEN: Proofs of Claim Filing Ends on Dec. 14 HIBIYA SEVEN LTD: Proofs of Claim Filing Deadline Is Dec. 14 MASTR CI-3: Proofs of Claim Filing Is Until Dec. 14 MBF NO.2: Proofs of Claim Filing Is Until Dec. 14 QGPC FINANCE: Proofs of Claim Filing Deadline Is Dec. 14 RETAIL BUSINESS: Proofs of Claim Filing Ends on Dec. 14 ROBECO CDO: Proofs of Claim Filing Deadline Is Dec. 14 SABOTEN HOLDINGS: Proofs of Claim Filing Is Until Dec. 14 SENBON ASSET: Proofs of Claim Filing Is Until Dec. 14 C H I L E AES CORP: Somerset Seeks Judge's Disqualification in Lawsuit ANIXTER INT'L: Has Up to 1 Mil. Shares Under Repurchase Program BUCYRUS INT'L: New World to Buy Ten Longwall Systems from Unit FOSTER WHEELER: Chilean Unit Bags Contract from UTE CT C O L O M B I A ECOPETROL: Will Sell 9.9% Stake C O S T A R I C A * COSTA RICA: China Prospecting for Oil * COSTA RICA: To Reach US$1.4 Billion in Fuel Bill E C U A D O R PETROECUADOR: President Hands Control to Navy Officials PETROECUADOR: Ends Demonstrations in Orellana G U A T E M A L A AFFILIATED COMPUTER: Fitch Affirms BB- Rating on Secured Notes J A M A I C A AIR JAMAICA: Government Will Sell Airline M E X I C O ARROW ELECTRONICS: Expects Revenue To Rise 28% in Fourth Quarter BEARINGPOINT INC: Board Hires Ed Harbach as President & CEO CHRYSLER LLC: Invests US$48 Mil. to Support New Dodge Production CHRYSLER LLC: Overall November 2007 U.S. Sales Down 2 Percent COINSTAR INC: Moody's Withdraws Ratings After Debt Refinancing GENERAL MOTORS: Mexican Unit Launches First Hybrid Vehicle GRUPO MEXICO: May Close Three Mines Due to Protests ICONIX BRAND: Adds Four New Executives to Senior Management Team MAZDA MOTOR: North America/Canada Sales Drop 1.0% for Nov. 2007 MAZDA MOTOR: Posts 7.6% Boost in Global Output for October 2007 QUAKER FABRIC: Can Reject Unexpired Leases Under Gordon Pact N I C A R A G U A XEROX CORP: Doug Lord & Kevin Warren Joins Sr. Management Team P A R A G U A Y ALCATEL-LUCENT: Deploys Contact Center Software for Telecom P E R U GOODYEAR TIRE: James Firestone Joins Board of Directors P U E R T O R I C O AFC ENTERPRISES: Frank Belatti Retires as Board's Chairperson APARTMENT INVESTMENT: Declares Dividends on Preferred Stock CENTENNIAL COMM: Names Michael Coltrane as New Director on Board EDS CORP: Completes US$420-Million Buyout of Saber Corp.'s Stake PILGRIM'S PRIDE: Declares US$2.25 Per Share Quarterly Dividend U R U G U A Y * URUGUAY: Reprts Cash Tender Offer for 10 International Bonds V E N E Z U E L A * VENEZUELA: Bonds & Shares Surge as Voters Reject Reforms - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Ryanair Suing European Commission Over Volare Aid --------------------------------------------------------------- Ryanair is suing the European Commission for failing to act on its complaint against state aid given to Volare S.p.A., a unit of Alitalia S.p.A., Jonathan Saul of Reuters reports. "The Italian government's recurring attempts to protect Italian aviation include the bailout of Volare and its subsequent transfer to Alitalia," Ryanair CEO Michael O'Leary was quoted by Reuters. "The write-off of some EUR20 million of airport debts is a blatant abuse of EU state aid rules, yet the Commission has refused to do anything about this since 2005," Mr. O'Leary added. Ryanair added it has no choice but to challenge the Commission's inaction by lodging a case with the European Court of First Instance. As reported in the TCR-Europe on Nov. 27, 2007, Ryanair has filed a case against the European Commission in the European Court for the latter's inaction on complaints against approximately EUR500 million in illegal state aid continually given to Olympic Airlines S.A. Ryanair has also hit the Commission's inaction on state aids given to Deutsche Lufthansa AG and Air France-KLM. 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. BURBUJAS SAICF: Proofs of Claim Verification Ends Feb. 22, 2008 --------------------------------------------------------------- Alfonso Enzo Michielin, the court-appointed trustee for Burbujas S.A.I.C.F. y A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 22, 2008. Mr. Michielin will present the validated claims in court as individual reports on April 24, 2008. The National Commercial Court of First Instance in Lomas de Zamora, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Burbujas 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 Burbujas' accounting and banking records will be submitted in court on May 30, 2008. Mr. Michielin is also in charge of administering Burbujas' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Burbujas S.A.I.C.F. y A. Vicente Lopez 241 Monte Grande, Partido de Esteban Echeverria Buenos Aires, Argentina The trustee can be reached at: Alfonso Enzo Michielin Mentruyt 1062, Banfield, Partido de Lomas de Zamora Buenos Aires, Argentina COLBI SRL: Proofs of Claim Verification Deadline Is Feb. 12 ----------------------------------------------------------- Carolina Mariel Perez, the court-appointed trustee for Colbi S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 12, 2008. Ms. Perez will present the validated claims in court as individual reports on March 28, 2008. The National Commercial Court of First Instance in Mar del Plata, 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 Colbi 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 Colbi's accounting and banking records will be submitted in court on May 13, 2008. Ms. Perez is also in charge of administering Colbi's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Colbi S.R.L. San Juan 2686, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Carolina Mariel Perez Mitre 1245, Mar del Plata Buenos Aires, Argentina COMERCIAL MENDOZA: Creditors Voting on Debt Plan on Feb. 15 ----------------------------------------------------------- Comercial Mendoza S.A.'s creditors will vote on a settlement plan that the company will lay on the table on Feb. 15, 2008. The court-appointed trustee for Comercial Mendoza's reorganization proceeding verified creditors' proofs of claim. The trustee presented the validated claims in court as individual reports and also submitted a general report containing an audit of Comercial Mendoza's accounting and banking records. The debtor can be reached at: Comercial Mendoza S.A. Mendoza 4147 Buenos Aires CONT-COR SRL: Trustee Verifies Proofs of Claim Until March 17 ------------------------------------------------------------- Alicia Ema Bisio, the court-appointed trustee for Cont-Cor S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until March 17, 2008. Ms. Bisio will present the validated claims in court as individual reports on April 30, 2008. The National Commercial Court of First Instance in Quilmes, 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 Cont-Cor 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 Cont-Cor's accounting and banking records will be submitted in court on June 13, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Dec. 9, 2008. The debtor can be reached at: Cont-Cor S.R.L. Luis Maria Campos 1500 Bernal, Partido de Quilmes, Buenos Aires, Argentina The trustee can be reached at: Alicia Ema Bisio Marconi 1967 Quilmes, Buenos Aires CUSTODIOS SRL: Proofs of Claim Verification Deadline Is Feb. 27 --------------------------------------------------------------- Marta Estela Acuna, the court-appointed trustee for Custodios S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 27, 2008. Ms. Acuna will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Custodios 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 Custodios' accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Ms. Acuna is also in charge of administering Custodios' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Marta Estela Acuna Combate de los Pozos 129 Buenos Aires, Argentina DANA CORP: Active Claims Drop to 55,000 at September ---------------------------------------------------- Dana Corp. had about 55,000 active pending asbestos-related product liability claims at Sept. 30, 2007, according to the Company's quarterly report filed with the U.S. Securities and Exchange Commission on Nov. 7, 2007. These 55,000 claims include about 6,000 claims that were settled but awaiting final documentation and payment. The Company had about 72,000 active pending asbestos-related product liability claims at June 30, 2007, including about 6,000 claims that were settled but awaiting final documentation and payment. (Class Action Reporter, Aug. 31, 2007) The number of active pending claims was reduced as tort reform and other initiatives in the State of Mississippi resulted in the dismissal of 17,000 claims. On Oct. 26, 2007, the Company filed a motion with the Bankruptcy Court seeking approval to resolve an additional 7,500 pending cases. The estimated total payments for these settlements, if all claimants are able to submit the required proof to support their claims, would be about US$2 million. The Company had accrued US$138 million for indemnity and defense costs for pending and future claims at Sept. 30, 2007. Before 2006, the Company reached agreements with some of its insurers to commute policies covering asbestos-related product liability claims. There were no commutations of insurance in the first three quarters of 2007. At Sept. 30, 2007, the Company's liability for future demands under prior commutations was US$11 million, bringing its total recorded liability for asbestos-related product liability claims to US$149 million. At Sept. 30, 2007, the Company had recorded US$71 million as an asset for probable recovery from its insurers for pending and projected asbestos-related product liability claims. In addition, the Company had a net amount recoverable from its insurers and others of US$17 million at Sept. 30, 2007. Under the Plan of Reorganization, the Debtors propose that their asbestos-related personal injury claims be reinstated upon emergence and that the reorganized Debtors will defend, settle and resolve such pending claims and future demands in the ordinary course of business. After the Center for Claims Resolution discontinued negotiating shared settlements for asbestos claims for its member companies in 2001, some former CCR members defaulted on the payment of their shares of some settlements and some settling claimants sought payment of the unpaid shares from other members of the CCR at the time of the settlements, including the Company. Through Sept. 30, 2007, the Company had paid US$47 million to such claimants and collected US$29 million from its insurance carriers with respect to these claims. At Sept. 30, 2007, the Company had a net receivable of US$13 million for the amount that it expects to recover from available insurance and surety bonds relating to these claims. Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007 the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. DANA CORP: Claimants Set to Appeal US$2-Million Settlement ---------------------------------------------------------- The Ad Hoc Committee of Personal Injury Asbestos Claimants will take an appeal to the U.S. District Court for the Southern District of New York from the Bankruptcy Court's approval of Dana Corp.'s request to settle 7,500 Asbestos personal injury claims asserted by parties represented by tort attorneys Robert Peirce & Associates; The Lanier Law Firm; Goldenberg, Miller, Heller & Anotognoli; and Bevan & Associates. Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007 the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 62; Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001) DOSGOR CONSTRUCCIONES: Proofs of Claim Verification Is on Feb. 5 ---------------------------------------------------------------- Pablo Ernesto Aguilar, the court-appointed trustee for Dosgor Construcciones S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 5, 2008. Mr. Aguilar will present the validated claims in court as individual reports on March 19, 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 Dosgor Construcciones 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 Dosgor Construcciones' accounting and banking records will be submitted in court on May 6, 2008. Mr. Aguilar is also in charge of administering Dosgor Construcciones' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Pablo Ernesto Aguilar Hipolito Yrigoyen 1516 Buenos Aires, Argentina LOGISTICA Y TRANSPORTE: Seeks for Reorganization Okay from Court ---------------------------------------------------------------- Logistica y Transporte S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Logistica y Transporte to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Logistica y Transporte S.A. Parana 693 Buenos Aires, Argentina LOS MIRASOLES: Proofs of Claim Verification Ends Feb. 21, 2008 -------------------------------------------------------------- Moises Gorelik, the court-appointed trustee for Los Mirasoles S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 21, 2008. Mr. Gorelik will present the validated claims in court as individual reports. The National Commercial Court of First Instance 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 Los Mirasoles and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Los Mirasoles' accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Mr. Gorelik is also in charge of administering Los Mirasoles' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Moises Gorelik Lavalle 1675 Buenos Aires, Argentina MILENIUM SALUD: Proofs of Claim Verification Is Until March 17 -------------------------------------------------------------- Alberto Jose Rotenberg, the court-appointed trustee for Milenium Salud S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until March 17, 2008. Mr. Rotenberg will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Milenium Salud 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 Milenium Salud's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Mr. Rotenberg is also in charge of administering Milenium Salud's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Alberto Jose Rotenberg Avenida Cordoba 1336 Buenos Aires, Argentina TELECOM PERSONAL: Alcatel-Lucent Deploys Contact Center Software ---------------------------------------------------------------- Telecom Personal has chosen Alcatel-Lucent to install an Internet protocol contact center software, Alcatel-Lucent said in a statement. According to Alcatel-Lucent's statement, the software is based on the firm's OmniPCX platform and OmniGenesys contact center. It offers personalized communications for clients through: -- 24-hour access, -- short messaging service or E-mail interaction, -- real time and historic custom statistics, -- workforce forecast, and -- voice portal services. Business News Americas relates that the software also includes: -- new Internet protocol telephony infrastructure, -- Internet protocol phones, and -- software for softphones. "[Telecom] Personal Paraguay handles more than 1.3mn customer transactions a month. It was important for us to find a solution that would deliver faster linkage of people, processes and resources for our more than 280 customer service representatives to provide global service," Telecom Personal's information technology manager Mario Bort told BNamericas. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent (Euronext Paris and NYSE: ALU) -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, China, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. About Telecom Personal Telecom Personal is the wireless provider of Telecom Argentina SA, providing services in Argentina and Paraguay over a GSM network. The company has 7.7 million users, with an estimated 30% market share in Argentina and a customer mix of 66% prepaid and 34% postpaid as of June 30, 2006. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 13, 2006, Fitch Ratings affirmed Telecom Personal SA's foreign and local currency Issuer Default Rating at 'B', and the senior unsecured at 'B/RR4', and revised the Rating Outlook of the international scale IDRs to Positive from Stable. Approximately US$200 million in debt is affected by the rating action. Fitch has also upgraded the national scale rating of Personal to 'A(arg)' from 'BBB+(arg)' with a stable rating outlook. TENNECO INC: Closes Tender Offer for 10-1/4% Sr. Secured Notes -------------------------------------------------------------- Tenneco Inc. has completed its previously announced partial tender offer and consent solicitation for its 10-1/4% Senior Secured Notes due 2013. As of midnight, New York City time, on Nov. 30, 2007, the expiration date, holders of Notes had tendered approximately US$474 million principal amount of Notes and the company purchased US$230 million principal amount of such Notes, which was the maximum amount of the offer, or 48.5% of the principal amount of Notes tendered in the offer. The total purchase price of the Notes was US$250 million, including US$20 million in premiums. Holders whose Notes were accepted for purchase were also paid accrued and unpaid interest on their purchased Notes up to, but not including, the payment date. Banc of America Securities LLC and Citigroup Global Markets, Inc. served as dealer managers and solicitation agents in connection with the tender offer and consent solicitation. About Tenneco Inc. Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) -- http://www.tenneco.com/-- manufactures automotive ride and emissions control products and systems for both the original equipment market and aftermarket. Brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany, with its European operations headquartered in Brussels, Belgium. The company has approximately 19,000 employees worldwide. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings assigned a rating of 'BB-' to Tenneco Inc.'s new senior unsecured notes due 2015. The new notes replace a portion of the company's existing US$475 million in 10.25% senior secured second-lien notes for which the company is tendering. Fitch said the rating outlook is positive. UNION BUREAU: Trustee Verifies Proofs of Claim Until Feb. 14 ------------------------------------------------------------ Alberto Rafael Bignami, the court-appointed trustee for Union Bureau Senior S.A.'s reorganization proceeding, verifies creditors' proofs of claim until Feb. 14, 2008. Mr. Bignami will present the validated claims in court as individual reports on March 27, 2008. The National Commercial Court of First Instance in Mar del Plata, 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 Union Bureau 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 Union Bureau's accounting and banking records will be submitted in court. Infobae didn't state the general report-filing deadline. The debtor can be reached at: Union Bureau Senior S.A. Alem 2902, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Alberto Rafael Bignami Rawson 3235, Mar del Plata Buenos Aires, Argentina VALMAX SRL: Proofs of Claim Verification Ends on Dec. 20 -------------------------------------------------------- Mariana Nadales, the court-appointed trustee for Valmax S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 20, 2007. Ms. Nadales 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 Valmax 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 Valmax's accounting and banking records will be submitted in court on April 18, 2008. Ms. Nadales is also in charge of administering Valmax's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Valmax S.R.L. Francisco Doblas 138 Buenos Aires, Argentina The trustee can be reached at: Mariana Nadales Hipolito Yrigoyen 1349 Buenos Aires, Argentina * ARGENTINA: Environmentalists Keep Protest Against Botnia Plant ---------------------------------------------------------------- Argentine environmentalists won't give up in their quest to prevent a paper plant from operating along River Uruguay, Prensa Latina reports. While Oy Botnia was constructing the plant, Argentina and Uruguay were disputing on its effect on the environment. The project is the biggest in Uruguay's economic history. Argentina asserts that the plant would engander the river habitat, while Uruguya insists it won't. The matter has been referred to the International Centre for Settlement of Investment Disputes. Final resolution of the conflict is still pending. According to Prensa Latina, fifty activists tried to cross the river but were prevented from crossing to avoid a confrontation with Uruguyans on the opposite side. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 ============== B A H A M A S ============= ISLE OF CAPRI: Earns US$24.6 Million in Quarter Ended Oct. 28 ------------------------------------------------------------- Isle of Capri Casinos Inc. posted net income of US$24.6 million on net sales of US$278.8 million for the three months ended Oct. 28, 2007, compared to net income of US$9.6 million on net sales of US$243.2 million for the same period in 2006. Bernard Goldstein, chairman of the board and chief executive officer commented, "In the second quarter, the Company recorded a pre-tax charge of US$6.5 million related to costs previously capitalized in connection with a proposed project in west Harrison County, Mississippi, and proposed expansions in Davenport, Iowa and Kansas City, Missouri, which negatively impacted our results. We have also begun conducting a strategic review of our existing portfolio and growth opportunities." "In addition, our second quarter results were impacted by significant non-recurring charges, including charges resulting from the retirement of our 9% Senior Subordinated Notes as part of the refinancing completed in July 2007. The refinancing improved the flexibility of our balance sheet and is consistent with our strategy to effectively lower our weighted average interest rate." President and Chief Operating Officer Virginia McDowell said, "Our Company goal continues to be increased EBITDA through margin improvement, and we have identified opportunities to reduce spending at both the corporate and site levels as a result of our focus on expense reduction and cost containment measures." "Although we continue to see improvements in operating results at nearly all of our legacy properties, the isle casino at Coventry continues to under perform. We are currently streamlining our cost structures at Coventry and developing new marketing programs, but we have also been negatively impacted by recent legislative changes, including an increase in taxes and the implementation of a smoking ban. As a result, we are currently evaluating the returns on and realization of our United Kingdom investments as a part of our strategic review process. The process in the United Kingdom will be led by Donn Mitchell, who was recently named Senior Vice President of UK Operations." Reflecting the impact of pre-opening expenses and write-offs, total EBITDA for the second quarter of fiscal 2008 was US$37.6 million compared to US$38.3 million for the second quarter of fiscal 2007. Property EBITDA from continuing operations for the second quarter of fiscal 2008 increased 8.5% to US$55.2 million compared to Property EBITDA from continuing operations of US$50.9 million for the comparable quarter in fiscal 2007. The results from operations for the second quarter of fiscal 2008 include US$6.5 million of charges primarily related to costs previously capitalized in connection with a proposed project in west Harrison County, Mississippi and the write-off of construction projects in Davenport, Iowa and Kansas City, Missouri. Additionally, in the second quarter of fiscal 2008, the Company recognized an US$11.5 million loss from early extinguishment of debt related to the retirement of the company's 9% Senior Subordinated Notes on Aug. 29, 2007. Combined, these items resulted in a US$10.8 million after-tax impact on the quarterly results, or US$0.35 loss per diluted share. The results from continuing operations for the second quarter of fiscal 2007 include US$1.0 million of office relocation costs and US$3.7 million of increased new development costs compared to the second quarter of fiscal 2008. Combined, these items resulted in US$2.8 million of after-tax impact on the prior year quarterly results or US$0.09 loss per diluted common share. The company's Bossier City and Vicksburg properties are reflected as discontinued operations for fiscal 2007 results. Accordingly, the operating results for these properties are not included in the net revenue, income and EBITDA from continuing operations results. The sale of the Bossier City and Vicksburg properties closed on July 31, 2006. Accordingly, the net revenues, income and EBITDA for fiscal 2008 are comparable to the net revenue, income and EBITDA from continuing operations for fiscal 2007 because the company had no discontinued operations in fiscal 2008. Ms. McDowell commented, "On November 1st, we celebrated the opening of the initial two lanes of the Biloxi Bay Bridge, linking Ocean Springs and Biloxi. The East Biloxi casinos have been relatively isolated since Hurricane Katrina, and the reopening of the bridge provides a vital link to our customers who reside to the east. We have introduced a variety of new marketing programs designed to reintroduce our Biloxi property to these customers, and to prepare for the full opening of the bridge next spring, when Mississippi Department of Transportation officials estimate that as many as 30,000 vehicles a day could travel the span when all lanes reopen." "We also continue to improve our properties by adding quality amenities that have been very well received by our customers. In November, the isle casino and hotel at Waterloo opened a 10,000 square foot indoor pool with a bar and restaurant, as well as an expanded deck designed to accommodate player parties and group sales opportunities. In September, we also opened the new and expanded Farraddays' Steakhouse in Black Hawk, Colorado resulting in a significant increase in revenue per cover. Relocating the restaurant has enabled the property to expand the popular Calypso's buffet by 66 much needed seats, which are expected to be available in late December." Ms. McDowell concluded, "As we continue with the strategic review of our current assets and growth opportunities, we also continue to progress with the development of our strategic brand portfolio, and hope to announce our plans by our fourth fiscal quarter." About Isle of Capri Based in Biloxi, Mississippi and founded in 1992, Isle of Capri Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville and Kansas City, Missouri and a casino and harness track in Pompano Beach, Florida. The company also operates and has a 57.0% ownership interest in two casinos in Black Hawk, Colorado. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama, a casino in Coventry, England, and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. * * * As reported in the Troubled Company Reporter on June 21, 2007, Standard & Poor's Ratings Services revised its rating outlook on Isle of Capri Casinos Inc. to negative from stable. Ratings on the company, including the 'BB-' corporate credit rating, were affirmed. ============= B E R M U D A ============= AIG PORTFOLIO: Sets Final Shareholders Meeting for Dec. 31 ---------------------------------------------------------- AIG Portfolio Diversification Fund Ltd. will hold its final shareholders meeting on Dec. 31, 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. ECLECTIC AUSTRALIA: Proofs of Claim Filing Ends on Dec. 17 ---------------------------------------------------------- The Eclectic Australia Fund Limited's creditors are given until Dec. 17, 2007, to prove their claims to Nicholas Hoskins, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. The Eclectic Australia's shareholder decided on Nov. 14, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Nicholas Hoskins Wakefield Quin, Chancery Hall 52 Reid Street, Hamilton Bermuda ECLECTIC AUSTRALIA: Sets Final Shareholders Meeting for Dec. 28 --------------------------------------------------------------- The Eclectic Australia Fund Limited will hold its final shareholders meeting on Dec. 28, 2007, at 10:00 a.m. at: Wakefield Quin Chancery Hall, 52 Reid 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. HER FUND: Proofs of Claim Filing Deadline Is Dec. 18 ---------------------------------------------------- Her Fund Ltd.'s creditors are given until Dec. 18, 2007, to prove their claims to Jennifer Y. Fraser, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Her Fund's shareholders agreed on Nov. 28, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court 22 Victoria Street Hamilton, Bermuda HER FUND: Will Hold Final Shareholders Meeting on Jan. 10, 2008 --------------------------------------------------------------- Her Fund Ltd. will hold its final shareholders meeting on Jan. 10, 2008, at 9:00 a.m. at: Canon's Court 22 Victoria 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. MINERVA INVESTMENTS: Holds Final Shareholders Meeting on Dec. 28 ---------------------------------------------------------------- Minerva Investments Ltd. will hold its final shareholders meeting on Dec. 28, 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. QPASS BERMUDA: Proofs of Claim Filing Deadline Is Dec. 12 --------------------------------------------------------- Qpass Bermuda Limited's creditors are given until Dec. 12, 2007, to prove their claims to Brett Hatch, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Qpass Bermuda's shareholder decided on Nov. 23, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Brett Hatch Conyers Dill & Pearman, Liquidation Department Clarendon House, Church Street Hamilton, HM DX, Bermuda QPASS BERMUDA: Sets Final Shareholders Meeting for Dec. 28 ---------------------------------------------------------- Qpass Bermuda Limited will hold its final shareholders meeting on Dec. 28, 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. SEA CONTAINERS: Marathon Discloses 10.7% Equity Stake ----------------------------------------------------- Marathon Asset Management LLC disclosed in a regulatory filing with the U.S. Securities and Exchange Commission dated Nov. 16, 2007, that it beneficially owns 2,790,000 shares of Class A Common Stock of Sea Containers Ltd. The 2,790,000 shares, par value US$0.01 per share, are held by Marathon Special Opportunity Master Fund, Ltd. Marathon Asset serves as the investment manager of the Fund pursuant to an Investment Management Agreement. In its capacity as investment manager of the Fund, Marathon Asset has sole power to vote and direct the disposition of all Class A Common Shares held by the Fund. Thus, for the purposes of Reg. Section 240.13d-3, Marathon Asset is deemed to beneficially own 2,790,000 shares, or 10.7% of the deemed issued and outstanding Sea Containers Class A Common Shares as of Nov. 16, 2007. Marathon Asset's interest in the securities is limited to the extent of its pecuniary interest in the Fund, if any. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Debtors' exclusive period to file a chapter 11 plan expires on Dec 21, 2007. (Sea Containers Bankruptcy News, Issue No. 31; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ============= B O L I V I A ============= COEUR D'ALENE: Shareholders Special Meeting Adjourns to Dec. 7 -------------------------------------------------------------- Coeur d'Alene Mines Corporation has adjourned its special meeting of shareholders to vote on the amendment of its charter and the issuance of its shares in connection with its proposed acquisition of Bolnisi Gold NL and Palmarejo Silver and Gold Corporation to Dec. 7, 2007 at 4:00 p.m. local time. Coeur has received overwhelming support for the proposals related to the acquisition with in excess of 91% of the votes submitted having voted in favor. Proxies are continuing to be received and votes representing an additional 1.7% of the outstanding shares are needed to enable the matters to be put to a vote at the meeting. The adjournment will allow Coeur to receive the necessary additional proxies. The company noted that three leading proxy advisory firms -- Institutional Shareholder Services, Glass Lewis and PROXY Governance -- recommended that Coeur shareholders vote "FOR" the proposed acquisitions. The meeting location has not been changed and will take place at The Coeur d'Alene Resort and Conference Center, Second Street and Front Avenue, Coeur d'Alene, Idaho. The record date for shareholders entitled to vote at the meeting remains Oct. 19, 2007. Shareholders who have questions about the merger or need assistance in submitting their proxy or voting their shares should call toll-free at (800) 901-0068 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 =========== AAR CORPORATION: Completes Summa Technology Acquisition ------------------------------------------------------- AAR CORP. has completed the acquisition of Summa Technology, Inc., a provider of high-end sub-systems and precision machining, fabrication, welding and engineering services. The acquisition builds upon AAR's wide range of capabilities and extends the company's portfolio of manufactured products and engineering services. "We are excited about this strategic combination, which further strengthens AAR's competitive position in the market for aerospace and defense products and services," said AAR CORP Chairperson and Chief Executive Officer, David P. Storch. "Summa joins us with a solid management team, excellent long- term customer relationships and diverse manufacturing capabilities that are well-aligned to growth opportunities in our markets." Summa participates in a variety of high-priority aerospace and defense programs, which include munitions supply, military and business jets, tactical missile platforms, military vehicles and space launch vehicles. Many of these programs, such as Joint Strike Fighter, Expeditionary Fighting Vehicle and ARES Launch Vehicle are very long-term programs. Summa provides a growth platform for AAR's complex machining and heavy fabrication business and will operate as a part of the company's Structures and Systems segment. The business will continue to be led by its current Chief Operating Officer, Stephen Werner. About Summa Founded in 1987, Summa Technology Inc. -- http://www.summa.com- - is headquartered in Huntsville, Alabama, strategically near Redstone Arsenal, an increasingly important Army installation that is home to the U.S. Army's Aviation and Missile Command (AMCOM), NASA Marshall Space Flight Center and major civilian contractors. Summa has additional facilities in Cullman, Alabama and Lebanon, Kentucky, totaling over 420,000 square feet of manufacturing space with approximately 450 employees. About AAR Corp. AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. In Asia Pacific, the company has offices in Singapore, China, Japan and Australia. In Latin America, the company has a sales office in Rio de Janeiro, Brazil. * * * As reported on Oct. 18, 2006, Standard & Poor's Ratings Services upgraded AAR Corp.'s corporate credit rating from 'BB-' to 'BB'. S&P said the outlook is stable. As reported on Dec. 5, 2006, that Moody's upgraded AAR's corporate family rating and senior notes to Ba3 from B1, in response to improving financial performance resulting from the strong commercial and defense aviation supply and repair environment. Moody's said the ratings outlook is stable. BANCO NACIONAL: Says Steel Exports To Exceed Domestic Sales ----------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social SA told reporters that Brazil's steel sales abroad would surpass the sales within the nation, with the balance of the country's steel sales likely "to flip from 60% to the internal market and 40% for export to the opposite ratio in the next eight years." Banco Nacional commented to the press that the switch to having larger percentage of Brazil's steel output exported than sold domestically will be due to planned projects for increasing sales abroad. Business News Americas relates that major projects being planned include those of: -- Vale, -- ThyssenKrupp, and -- Baosteel. Banco Nacional told BNamericas that it wants to help increase Brazil's steel production with US$7.7 billion in funding up to 2015, about 35% of the total investment in the steel sector expected for that period. Brazil's steel production in October 2007 rose 23.3% to 1.81 million tons, from October 2006. Local steel institute IBS said that local steel sales in October 2007 increased 22.9% to 1.08 million tons, compared to October 2006. Exports, however, declined 30.1% to 666,200 tons, BNamericas states. 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. BROWN SHOE: Earns US$27 Million in Third Quarter Ended Nov. 3 ------------------------------------------------------------- Brown Shoe Company Inc. reported net earnings of US$27 million for the third quarter of fiscal 2007 ended Nov. 3, 2007, versus net earnings of US$26.9 million in the prior-year period. Inventory at Nov. 3, 2007 was US$441 million, as compared to US$434 million last year. The company's debt-to-capital ratio at the end of the quarter was 20.2%, compared to 25.4% at the same time last year. At Nov. 3, 2007, the company's balance sheet showed total assets of US$1.12 million, total liabilities of US$528,160 and total shareholders equity of US$592,211. Strategic Initiatives Update Costs during the quarter related to the company's earnings enhancement plan were better than expected, as the company incurred costs of US$4.5 million on a pre-tax basis, or after- tax costs of US$2.9 million in the quarter, most of which were attributable to the relocation of the Shoes.com administrative offices from Los Angeles to St. Louis. The company works on other initiatives related to this plan. Estimates of costs and benefits remain as: -- in 2007, after-tax implementation costs are estimated to be approximately US$11 million, while the company expects to realize after-tax benefits of US$10 to US$12 million; -- in 2008, after-tax implementation costs are estimated to be approximately US$8 million and annual after-tax benefits upon completion in late 2008 is estimated to be US$17 to US$20 million. About Brown Shoe Company Headquartered in St. Louis, Missouri, Brown Shoe Company Inc. (NYSE:BWS) -- http://www.brownshoe.com/-- is a US$2.4 billion footwear company with global operations including Brazil, Italy, China, Hong Kong, and Taiwan. Brown Shoe's Retail division operates Famous Footwear, the 1,000-store chain that sells brand name shoes for the family, approximately 300 specialty retail stores in the U.S. and Canada under the Naturalizer, FX LaSalle, and Franco Sarto names, and Shoes.com, the company's e-commerce subsidiary. Brown Shoe, through its wholesale divisions, owns and markets footwear brands including Naturalizer, LifeStride, Via Spiga, Nickels Soft, Connie and Buster Brown; it also markets licensed brands including Franco Sarto, Dr. Scholl's, Etienne Aigner, and Carlos by Carlos Santana and Barbie, Disney and Nickelodeon character footwear for children. * * * On April 2007, Moody's Investors Service changed the outlook of Brown Shoe Company, Inc., to positive from stable and affirmed its Ba3 corporate family rating on the company. Moody's Investor Services placed Brown Shoe Company Inc.'s probability of default rating at 'Ba3' in September 2006. The rating still hold to date with a positive outlook. DELPHI CORP: Seeks 3-Month Extension of Excl. Plan Filing Period ---------------------------------------------------------------- Delphi Corporation and its debtor affiliates and subsidiaries ask the U.S. Bankruptcy Court for the Southern District of New York to further extend their exclusive periods to: (a) file a plan of reorganization through and including March 31, 2008; and (b) solicit acceptance of that plan through and including May 31, 2008. The Debtors' current Exclusive Plan Proposal Period will expire on Dec. 31, 2007. "A further extension of the Exclusive Periods is justified by the significant progress the Debtors have made toward reorganization since they last sought an extension of the Exclusive Periods," John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, asserts. The Debtors' good-faith progress towards reorganization, according to Mr. Butler, is most convincingly demonstrated by the filing of the Joint Plan of Reorganization and Disclosure Statement on Sept. 6, 2007. The Plan and Disclosure Statement were the products of a series of intense negotiations involving the Debtors, the Plan Investors led by Appaloosa Management L.P., the Statutory Committees, and General Motors Corp., Mr. Butler avers. As a result of the turbulence in the capital markets, however, the Debtors were required to negotiate potential amendments to the Plan and Disclosure Statement with certain stakeholders, Mr. Butler relates. Nonetheless, the Plan provides for full payment at Plan value to creditors and a distribution for equity holders, he notes. "All of these negotiated amendments represent the Debtors' continuing efforts to emerge from Chapter 11 protection as quickly as possible so that they can maximize value for all their stakeholders," Mr. Butler assures the Court. In addition to the significant progress toward confirming a plan, Mr. Butler points out that that the Debtors have substantially achieved the goals of their transformation plan by, among other things, negotiating amended collective bargaining agreements with their labor unions and comprehensive settlement and restructuring agreements with GM; continuing to divest non-core assets and businesses; and obtaining the second of two pension funding waivers from the Internal Revenue Service. The unresolved contingencies relating to fully committed exit financing, solicitation, and confirmation of the Plan, as well as the size and complexity of the Debtors' cases also justify a further extension of the Exclusive Periods, Mr. Butler adds. "The size and complexity of the Debtors' chapter 11 cases alone constitute sufficient cause to extend the Exclusive Periods," he asserts. Accordingly, the Debtors seek an extension of the Exclusive Periods to give them sufficient time to complete the Plan solicitation and confirmation processes in a timeframe that will allow them to emerge from bankruptcy in the first quarter of 2008. The Debtors are not using their Exclusive Periods to pressure stakeholders to submit to their reorganization demands, Mr. Butler clarifies. The Debtors, he explains, are actively utilizing the Periods to resolve remaining issues in good faith with their diverse constituencies. In addition, the Debtors' request is without prejudice to any party's right to request a termination of exclusivity for cause at any time under Section 1121(d) of the Bankruptcy Code. The Debtors said the requested extension was precautionary. The Debtors continue to expect that they will emerge from Chapter 11 during the first quarter of 2008. The Detroit News notes that Delphi, in November 2007, said if its plan isn't in place by Dec. 31, it could owe the U.S. Internal Revenue Service US$1,400,000,000, when the waiver on funding of the auto-parts supplier's pension obligations expires and would compel the company to pay taxes and penalties to the IRS. The IRS, according to the report, could extend the waiver. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 99; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) EL PASO: Files Federal Right of Way for Ruby Pipeline Project ------------------------------------------------------------- El Paso Corporation has filed a federal right of way application with the United States Department of the Interior's Bureau of Land Management for its Ruby Pipeline project -- a 680-mile, 42-inch natural gas transmission pipeline that begins at the Opal Hub in Wyoming and terminates at the Malin, Oregon interconnect near California's northern border. The Ruby Project will have an initial capacity of 1.2 billion cubic feet per day (Bcf/d) and is expandable to 2 Bcf/d. In addition, El Paso announced that it is planning to partner in the project with Bear Energy LP, a subsidiary of The Bear Stearns Companies Inc. Partnering discussions include Bear Energy becoming an initial shipper on the pipeline. "The Ruby Pipeline connects Rocky Mountain natural gas producers with one of the most attractive natural gas demand regions in the country," said El Paso's Western Pipeline Group president, Jim Cleary. "Ruby will provide natural gas users in northern California, Nevada, and the Pacific Northwest with competitively priced natural gas from the nation's most important growth supply region." "We are excited about working with El Paso on this project," said Bear Energy managing director, Jeff Rawls. "Given the production growth from the prolific Rocky Mountain region and the supply reliability objectives of the western U.S. states, the Ruby Pipeline is the right solution." El Paso is in discussions with other prospective shippers and will announce a formal open season shortly. Subject to Federal Energy Regulatory Commission and other regulatory approvals, and after obtaining necessary customer commitments, the Ruby Pipeline is anticipated to be in service in the first quarter of 2011. About Bear Energy Headquartered in Houston, Texas, Bear Energy -- http://www.bearenergy.com-- was founded in 2006 to provide flexible, comprehensive energy solutions in the physical and financial energy markets for clients across the energy value chain. Bear Energy currently employs an experienced team of 220 energy professionals with expertise in natural gas, electricity, coal, emissions and weather. About El Paso Corp. 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. FORD MOTOR: Overall November 2007 U.S. Sales Up 0.4 Percent ----------------------------------------------------------- Continued growth in crossover sales and increased demand for hybrids, fuel-efficient cars and Ford's industry-exclusive SYNC in-car connectivity technology drove Ford Motor Company's sales in November. Company sales totaled 182,951, up 0.4% versus a year ago. November marked the first sales increase following 12 months of declines. "It is encouraging to see our newest cars, crossovers, hybrids and industry-first SNYC technology resonating with customers," Mark Fields, president, The Americas, said. "Continuing to deliver more quality products that people really want and carefully gauging customer demand in the months ahead will help ensure we stay on track with our plan." Consumer demand continues to grow for the all-new Ford Edge and Lincoln MKX crossover utility vehicles. Edge sales were 12,594 and Lincoln MKX sales were 3,360. Total sales of crossover utilities, including the redesigned Ford Escape, Ford Taurus X, and Mercury Mariner were 33,271, up 119% compared with a year ago. Escape Hybrid and Mariner Hybrid models set November sales records. Sales of the new 2008 Ford Focus were up 18% compared with a year ago. Focus is one of 12 Ford, Lincoln and Mercury models equipped with SYNC, an affordable, industry-exclusive in-car connectivity technology that fully integrates most Bluetooth- enabled cell phones and MP3 players into a customer's driving experience. "All of our SYNC-equipped models are turning quickly," Mr. Fields said. "Affordable technology that integrates mobile communication and entertainment devices appears to be resonating with consumers. Beyond that, SYNC appears to be changing opinions about Ford and elevating consideration for our products and brands." Ford Fusion and Mercury Milan also contributed to the company's November sales increase. Fusion sales were up 39% and Milan sales increased 43%. Lincoln continued its winning streak in November as retail sales climbed 4%. November marked the 14th straight month of higher retail sales for the premium brand. Total Lincoln sales in November were down 7%, reflecting lower fleet sales. In November, Ford, Lincoln and Mercury sales to individual retail customers were 3% lower than a year ago. Sales to daily rental companies were down 6%, but sales to commercial fleet and government customers were up 25%. North American Production In the first quarter of 2008, the company plans to produce 685,000 vehicles in North America. This is the initial forecast of first quarter production. In the first quarter of 2007, the company produced 740,000 vehicles. Fourth-quarter 2007 production is 645,000 units, unchanged from the previously announced plan. 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: Overall November 2007 U.S. Sales Down 11 Percent ---------------------------------------------------------------- After three consecutive monthly increases, General Motors Corp. dealers in the United States delivered 263,654 vehicles in November, down 11% compared with a year ago, reflecting continuing reductions in daily rental sales and softening industry demand. GM's retail car deliveries increased, based on the strength of the all-new Chevrolet Malibu, 2008 Cadillac CTS and fuel- efficient Chevrolet Aveo, Cobalt, Pontiac G5 and G6. "Integral to our strategy is to grow our share in the key car segments," Mark LaNeve, GM North America vice president, Vehicle Sales, Service and Marketing, said. "The retail performance, especially from the new Chevrolet Malibu and Cadillac CTS, demonstrates the enthusiasm customers have for these outstanding new vehicles. The recognition of the 2008 CTS as Motor Trend's Car of the Year reinforces what we are hearing from customers about this phenomenal car. And, not to be outdone, the new Malibu is flying off dealer lots." There were several bright spots in retail deliveries, led by brisk sales in the economy, small, mid and luxury car segments and mid-utility crossovers. Chevrolet retail car sales were up more than 15%, Cadillac retail car sales, driven by a 48% increase in CTS sales, were up more than 13% and Pontiac retail car sales were up more than 8%. Total retail deliveries were down 9.7%, largely due to reduced availability of 2007 models after a strong sell-down in September and October. "The Malibu, CTS and Enclave have some of the fastest turn rates in the industry," Mr. LaNeve added. "We've added production capacity at our Orion Assembly plant for Malibu to keep up with growing demand and dealer orders." Together, GM's mid-utility crossovers (Buick Enclave, Saturn OUTLOOK and GMC Acadia) sold nearly 13,000 vehicles at retail. Saturn retail truck sales, driven by the OUTLOOK, were up more than 35%. Chevrolet HHR retail sales were up 60%. The Pontiac and GMC divisions showed retail sales increases. GM continued to reduce sales to daily rental fleets, down more than 14,000 vehicles, or almost 29% compared with a year ago. Total fleet sales were down 16%. Retail sales for the month, as a percentage of total sales, showed an increase of more than one percentage point (to 74% of total sales) compared with a year ago. Vehicle inventories were down 97,000 vehicles compared with year-ago levels and stood at about 993,000 vehicles at the end of the month. Certified Used Vehicle Sales November 2007 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 37,946 vehicles, down nearly 11% from last November. Total year-to- date certified GM sales are 479,946 vehicles, up 0.3% from the same period last year. GM Certified Used Vehicles, the industry's top-selling manufacturer-certified used brand, posted 32,748 sales, down 10% from last November. Year-to-date sales for GM Certified Used Vehicles are 421,190 vehicles, up 2% from the same period in 2006. Cadillac Certified Pre-Owned Vehicles posted November sales of 3,227 vehicles, down 9% from last November. Saturn Certified Pre-Owned Vehicles sold 1,372 vehicles in November, up nearly 2%. Saab Certified Pre-Owned Vehicles sold 468 vehicles, down 54%, and HUMMER Certified Pre-Owned Vehicles sold 131 vehicles, up 17%. "While November was a challenging sales month for certified GM brands, year-to-date GM Certified Used Vehicle sales are up 2% through November and we're in a position to set a new industry annual sales record for the manufacturer-certified category," Mr. LaNeve said. About GM 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 in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. The outlook is stable. JAPAN AIRLINES: To Launch First-Class Service on Nat'l Flights -------------------------------------------------------------- Japan Airlines International Co., Ltd., will be introducing a new service on domestic flights to attract wealthy passengers in the competitive domestic travel market, Yasufumi Kado of The Asahi Shimbun reports. JAL, according to the report, will launch the First-Class service on Saturday between Tokyo's Haneda Airport and Osaka's Itami Airport. It is the first company to set up first-class seats on Japanese domestic routes. The Tokyo-based airline expects to make an additional JPY4 billion in annual revenue from the new service after expanding it to flights between Haneda and Fukuoka and between Haneda and New Chitose Airport near Sapporo next spring, relates The Asahi Shimbun. Seven of JAL's 15 round-trip flights between Haneda and Itami a day will feature 14 first-class seats each, at an extra cost of JPY8,000 per passenger, states Mr. Kado. JAL official, Koji Tsuchiya, who developed the seats, claims it will not be easy for rivals to come up with seats that offer the same degree of comfort. The first-class seats are upholstered with white leather, has a seat-to-seat space of about 130 centimeters between the rows, about 50 cms. wider than standard seats and reclines at 27 degrees in the normal position to provide greater comfort during take-offs and landings. A JAL official in charge of product and service planning revealed to The Asahi Shimbun that the most affluent customers often chose rival All Nippon Airways Co., Ltd.'s Super Seat Premium service, saying they are annoyed by voices of nearby passengers. Along with this, a partition between the two seats in a row is designed to better ensure privacy enabling passengers to avoid the eyes of next-door passengers when the seat is reclined. A JAL survey of about 3,000 high-profile customers, mostly corporate executives, found that an overwhelming majority want comfortable seats that ensure privacy. The second-largest number of respondents wanted in-flight meals at any time, followed by those who wanted to use exclusive airport lounges. Rival ANA, adds The Asahi Shimbun, in April, is scheduled to start its Premium Class service in the first full-scale upgrade of its top class seats in 23 years. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. The outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006, with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. The rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. SANYO ELECTRIC: To Invest JPY350 Billion to Revive Earnings ----------------------------------------------------------- Sanyo Electric Co., Ltd., will invest JPY350 billion in its operations to revive earnings growth, Hiroshi Suzuki of Bloomberg News reports. Of the total amount, which will be spent during the three years starting April 1, Sanyo will invest JPY100 billion for rechargeable lithium-ion batteries, used in devices including mobile phones; JPY110 million on semiconductors, digital products and appliances; JPY60 billion on electronic components and JPY80 billion on solar-power batteries, relates Bloomberg. The expansion, states Bloomberg, is aimed at increasing the company's share of the US$4.5 billion battery market after it exited unprofitable units like flat panels and prepares to sell the mobile phone business. After announcing Sanyo's three-year midterm plan, stocks surged as much as 7.3% in the Nikkei 225 stock, while Sanyo's shares rose 6.2% to JPY188 on the Tokyo Stock Exchange, adds the report. According to the report, Moody's Investors Service analyst Shinsuke Tanimoto expressed before Sanyo's business plan announcement that, "Focusing on areas the company is good at would please investors. Sanyo's battery business is strong." Sanyo reported a net income of JPY16 billion for the 6-month ended September 30 of the current fiscal year as compared to a loss of JPY3.62 billion the same period last year, notes Bloomberg. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. TAM SA: Inks Operational Code-Sharing Deal with Lufthansa --------------------------------------------------------- TAM S.A. and Lufthansa signed a contract on Dec. 1, to start an operational code-sharing agreement on national and international routes. TAM and Lufthansa's flight partnership is expected to begin during the first half of 2008. Starting in February, clients of both companies will be able to accumulate and exchange points earned on TAM's Programa Fidelidade loyalty program and miles with Lufthansa's Miles & More program on flights operated by either company. The code-sharing agreement will allow both companies to offer more flight options to their passengers who travel between Brazil and Germany. TAM's clients will be able to purchase tickets on flights operated by Lufthansa, which depart from Sao Paulo and arrive in Frankfurt and Munich (Germany). From Frankfurt, connections will be available to other destinations in Germany, such as Dusseldorf, Hamburg, and Stuttgart, as well as Zurich and Geneva (Switzerland). Lufthansa passengers will be able use the new TAM flight to Frankfurt and, in Brazil, will be offered connections from Sao Paulo to Rio de Janeiro, Porto Alegre, Curitiba, Belo Horizonte, Brasilia, Recife, Florianopolis, Salvador and Foz do Iguacu. The code-sharing will also cover TAM flights to other South American destinations: Santiago (Chile), Buenos Aires (Argentina) and Montevideo (Uruguay). TAM began flights to Frankfurt, its fourth direct European destination, on Nov. 30. The operation uses an Airbus A340-500, with a carrying capacity of up to 267 passengers - 42 seats in business class and 225 in economy. The first flight took off as 80% occupied and returned from Frankfurt on December 1 with 98% of the seats filled. TAM SA (Bovespa: TAMM4 and NYSE: TAM) -- http://www.tam.com.br/ -- operates regular flights to 47 destinations throughout Brazil. It serves 72 different cities in the domestic market through regional alliances. Additionally, it maintains code- share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. The program has over 3.3 million subscribers and has awarded more than 3.6 million tickets. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 27, 2007, Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Brazil-based airline TAM S.A. S&P said the outlook is stable. XERIUM TECH: Acquires Roll Covers Business for US$12 Million ------------------------------------------------------------ Xerium Technologies Inc. has acquired a privately held roll covers business in China. Xerium acquired from IB Investments Limited all of the equity of a Mauritius holding company that owns 90% of a joint venture roll covering operation located in Xian, China that operates under the Xibe brand name and a wholly owned foreign-funded enterprise with a roll covers facility in Changzhou, China. The total consideration for the acquisition was approximately US$12 million and is subject to certain adjustments. The acquired companies had aggregate net sales for the first nine months of 2007 of approximately US$3.6 million. Thomas Gutierrez, Xerium's President and Chief Executive Officer, said, "China is one of the fastest growing paper and board manufacturing markets in the world. We expect the Chinese paper industry to continue to invest in some of the most technically-advanced paper making equipment in the world and thus, increase demand for our advanced roll covers technology and value-added services. With this transaction, we are able to accelerate our entry into this growing market. We believe that Xerium can leverage its market leadership under the Stowe Woodward brand name, taking full advantage of the recently-built Changzhou facility and Xibe's reputation for providing the local Chinese market with quality services and roll products, to significantly build market share in the Chinese paper and board market." Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. * * * Moody's Investors Service changed the outlook on Xerium Technologies, Inc.'s ratings to negative from stable, and affirmed the company's corporate family rating at B1. The change in outlook to negative reflects Xerium's weaker than expected operating performance primarily due to production inefficiencies in North America and delays in achieving benefits from cost reduction initiatives. Moody's believes the impact of these issues, coupled with a difficult pricing environment for roll covers and to a lesser extent clothing products, will continue to negatively affect operating performance over the intermediate term. Affirmed ratings are: * Corporate family rating; B1 * Guaranteed senior secured term loan B; B1 * Guaranteed senior secured revolving credit facility; B1 * BRAZIL: Transpetro Inks Oil Transport Contracts with Maua ----------------------------------------------------------- Transpetro, the tranportation unit of Brazilian state-run oil firm Petroleo Brasileiro SA aka Petrobras, has signed contracts totaling US$277 million with local shipyard Maua for the construction of vessels to transport oil products, Dow Jones Newswires reports. According Petrobras' press statement, the shipyard is near Rio de Janeiro. It will construct four ships that can transport 54,000 cubic meters. Dow Jones relates that the vessels would be incorporated into Transpetro's fleet between 2010 and 2011. They are part of a US$2.5-billion program to purchase 26 new oil vessels "in an initial phase and revive Brazil's shipbuilding industry." Petrobras will then increase the new oil vessels to 42, Dow Jones states. 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. =========================== C A Y M A N I S L A N D S =========================== BEAR STEARNS: Westbrook, et al. Support Chapter 15 Denial --------------------------------------------------------- Professor Jay Westbrook of the University of Texas, Professor Kenneth Klee of the University of California Los Angeles, and Daniel M. Glosband, Esq., at Goodwin Procter, LLP, in Boston, Massachusetts, filed an amici curiae brief to assist the U.S. District Court for the Southern District of New York in its interpretation and application of Chapter 15 of the Bankruptcy Code. According to the amici curiae brief, Prof. Westbrook and Mr. Glosband were part of the group that drafted the United Nations Commission for International Trade Law Model Law on Cross-Border Insolvency. They also served as primary draftsmen assisting the Department of State and the U.S. Congress in drafting Chapter 15. Prof. Klee, on the other hand, is one of the draftsmen of the 1978 revision of the United States Code. He also assisted in drafting Chapter 15 and its presentation to the U.S. Congress. Prof. Westbrook, et al., opine that the District Court should affirm Judge Lifland's order denying recognition under Chapter 15 of the Bankruptcy Code of the liquidation proceedings of Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd., and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund, Ltd., in the Cayman Islands. Prof. Westbrook, et al., explain that, in contrast to the dicta in In re SPhinX, Ltd., Judge Lifland properly applied the Chapter 15 eligibility criteria to the Recognition Motion filed by Simon Lovell Clayton Whicker and Kristen Beighton, the joint official liquidators and foreign representatives of the Bear Stearns Funds. Judge Lifland determined on the record before the Bankruptcy Court that the Foreign Debtors had neither their "center of main interests" nor an "establishment" in the Cayman Islands; and consequently denied recognition of the Foreign Proceedings as either foreign "main" proceedings or foreign "nonmain" proceedings. Prof. Westbrook, et al., note that the Foreign Representatives, in arguing for reversal of Judge Lifland's Order, attempt to circumvent the strict eligibility criteria for Chapter 15 recognition by interpolating subjective factors -- comity and flexibility -- into an objective standard and by stretching the meaning of the terms "center of main interests" and "establishment" to encompass facts that fall short of their definitional requirements. Prof. Westbrook, et al., also point out that the Foreign Representatives did not offer evidence of any substantial business activity by the Foreign Debtors in the Cayman Islands but conceded that virtually all of the important activities of the Bear Stearns Funds were carried out in New York. On their Appeal, the Foreign Representatives attempt to introduce new, through still insufficient, evidence to support their assertions, Prof. Westbrook, et al., tell the District Court. The Foreign Representatives could and should have been prepared to address the evidentiary issues apparent on the face of the statute when the Bankruptcy Court asked them to do so, Prof. Westbrook, et al., relate. Their post-hoc attempt to provide evidence is as procedurally invalid as it is substantively inadequate, Prof. Westbrook, et al., state. Prof. Westbrook, et al., note that the effect of recognition of the Funds' Chapter 15 petition would be to void the U.S. Congressional effort to limit the United States' cooperation to countries with a real connection to the Debtors. An injunction against lawsuits and collection efforts in the U.S. and a turnover of U.S. assets to a Cayman Islands proceeding would not only violate the Chapter 15 and UNCITRAL statute, but would give that proceeding most of the relief Congress has reserved for main bankruptcy proceedings, Prof. Westbrook, et al., opine. In addition, representatives from several countries with some tenuous connection to a debtor might arrive in waves, each demanding the same relief. Thus, the careful, orderly, structured procedure adopted by the U.S. Congress would degenerate into a struggle without rules or guidance for the courts to follow, Prof. Westbrook, et al., say. These concerns, according to Prof. Westbrook, et al., are especially great where, in Bear Stearns' case, the debtors are in fact American companies in every economic sense. "These companies and dozens of others like them are at the center of a growing economic storm in the United States. They are also the center of an important public debate about the desirability vel non of increased regulation or oversight of subprime lending and of certain kinds of investments, especially in the context of market imperfections," Prof. Westbrook, et al., say. "It is appropriate, even necessary, that their liquidation take place in American courts, supervised by American judges, and under the observation of American investors and financial media. "New York is the center of the financial work and should be the center of judicial management of the current crisis involving United States funds." * * * The Bear Stearns Funds' Appeal will be heard by Judge Robert Sweet of the District Court on Jan. 16, 2008. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On Aug. 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than US$100,000,000 each. (Bear Stearns Funds Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) BEAR STEARNS: Samuel Cohen Sues Company Directors & Officers ------------------------------------------------------------ Samuel T. Cohen, a shareholder of Bear Stearns Companies, Inc., has filed a derivative action on behalf of the company, against certain of its officers and directors, including Chief Executive Officer James Cayne, Chief Financial Officer Samuel Molinaro, President Alan Schwartz, and former president Warren Spector, in the U.S. District Court for the Southern District of New York. Mr. Cohen seeks monetary damages as a result of the Directors and Officers' breaches of fiduciary duties, abuse of control, gross mismanagement and waste of corporate assets. Mr. Cohen alleges that beginning March 2006, Bear Stearns, under the D&Os' direction, recklessly spent billions of dollars purchasing subprime loans to be used for future collateralized debt obligations. Mr. Cohen says the D&O failed to take appropriate reserves for the large amount of CDOs in the company's portfolio, both on and off the balance sheet, and the information was not disclosed to investors. Representing Mr. Cohen, David A.P. Brower, Esq., at Brower Piven, APC, in New York, explains that CDOs are complex financial instruments that combines slices of varying assets and debts. Many CDOs are backed by subprime mortgages -- loans given to customers with poor credit history. As those mortgages have increasingly defaulted, banks are being forced to write down the value of bonds and CDOs backed by the loans. According to Mr. Brower, the D&Os actively concealed Bear Stearns' failure to write down impaired securities containing subprime debt. The D&Os directed Bear Stearns to issue false and misleading statements regarding its business and financial condition. While the D&Os were directing Bear Stearns to issue improper statements concerning its exposure to the subprime market crisis, they were also directing the company to acquire a subprime loan portfolio for US$1,200,000,000 from a troubled subprime mortgage lending company, Mr. Brower says. On Nov. 14, 2007, Bear Stearns said that it expects to write- down US$1,200,000,000 of its assets linked to mortgage-related investments in the fourth quarter of 2007. The US$1.2 billion write-down, according to Mr. Brower, is equal to 9% of the company's equity and will result in a net loss. As a result of the announced write-down, Mr. Brower says Bear Stearns' credibility with investors has been wiped out. Mr. Brower also points out that Bear Stearns' value has declined more than US$10,000,000,000 from its peak in February 2007. Its quarterly net income for the period ended August 2007 sank 61% to US$171,300,000, or US$1.16 a share, from the same period in 2006, and revenue fell to US$1,300,000,000 from US$2,130,000,000 in 2006. Aside from the monetary judgment, Mr. Cohen also asked the District Court to take all necessary actions to reform and improve its corporate governance and internal procedures to protect its stakeholders from a repeat of the damaging events, including, but not limited to, adopting these remedial measures: (a) strengthening the Board of Directors' supervision and oversight responsibilities and developing a system to ensure the Board accurately manages the company's risk potential; (b) prohibiting an individual from concurrently serving as chief executive officer and the chairman of the Board; (c) allowing the company's shareholders to nominate at least one candidate for election to the board; and (d) a policy of ensuring the accuracy of the qualifications of Bear Stearns' directors, executives and other employees. Bloomberg News reports that Bear Stearns spokeswoman Janet Slater said in an e-mailed statement that Mr. Cohen's allegations are without merit. She said Bear Stearns would fight the lawsuit. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On Aug. 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than US$100,000,000 each. (Bear Stearns Funds Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) BEAR STEARNS: Navigator Says Supreme Court Should Hear Complaint ---------------------------------------------------------------- Navigator Capital Partners, L.P., filed a memorandum supporting its argument that its class action complaint against the Bear Stearns Entities -- Bear Stearns Asset Management, Bear, Stearns Securities Corp., The Bear Stearns Companies, Inc., Bear, Stearns & Co., Inc., Ralph Cioffi, Raymond McGarrigal, and Matthew Tannin, and Bear Stearns High-Grade Structured Credit Strategies, L.P., as nominal defendant -- should be adjudicated in the New York Supreme Court. Navigator asserts that it is undisputed that the Bear Stearns Entities have the burden of convincing the U.S. District Court for the Southern District of New York that the case has been properly removed from the NY Supreme Court, and that they must establish their right to a federal forum by competent proof. Navigator maintains that the Bear Stearns Entities' removal was improper under the U.S. Securities Litigation Uniform Standards Act. The Bear Stearns Entities fail to identify a single alleged misrepresentation or omission in connection with purchases or sales of "covered securities" to support removal under the SLUSA. Instead, they point to the Master Fund's proportionately miniscule "holdings" of covered securities and disingenuously argue that these "holdings" are somehow "directly" connected to the wrongdoing alleged in Navigator's Complaint, Andrew J. Entwistle, Esq., at Entwistle & Cappucci, LLP, in New York, notes.