T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, December 10, 2007, Vol. 8, Issue 244 Headlines A R G E N T I N A ALITALIA SPA: Three Groups Submit Non-Binding Offers DANA CORP: Affinia Still Involved in Company's Bankruptcy DANA CORP: Urges Court to Disallow 1,064 Claims FARMACIA 533: Files for Reorganization in Buenos Aires Court FREESCALE SEMICONDUCTOR: Moody's Pares Corp. Family Rating to B1 INDUSTRIAL PESQUERA: Trustee Verifies Claims Until Dec. 28 ORION XXI: Proofs of Claim Verification Deadline Is Feb. 5, 2008 SCO GROUP: Court Approves Tanner LLC as Accountant SCO GROUP: Court Oks Chief Fin'l Exec to Come from CFO Solutions VERIFONE INC: Accounting Errors Prompt S&P to Revise Outlook B E R M U D A DRESDNER RCM: Sets Final Shareholders Meeting for Dec. 14 DRESDNER RCM ORIENTAL: Final Shareholders Meeting Is on Dec. 14 DRESDNER RCM TIGER: Holding Last Shareholders Meeting on Dec. 14 LIGHTHOUSE INSURANCE: Court To Hear Wind-Up Petition on Dec. 14 MUTUAL ARGENTINA: Proofs of Claim Filing Deadline Is Dec. 14 MUTUAL ARGENTINA: Sets Final Shareholders Meeting for Dec. 31 NCB INSURANCE: Court Will Hear Wind-Up Petition on Dec. 14 REFCO INC: Ch. 7 Trustee Wants Nod on MF Global Settlement Pact SENSU LTD: Court Will Hear Wind-Up Petition on Dec. 14 B O L I V I A MILLICOM INT: Colombian Unit Eyes 2.9 Mln Subscribes by Year-End B R A Z I L BANCO NACIONAL: Praia Grande Secures BRL124-Mln Loan from Bank BRASKEM SA: S&P Raises Long-Term Corporate Credit Rating to BB+ DELPHI CORP: Gets Committees' Support on Plan Amendments GERDAU SA: Socopo Puts Hold Recommendation on Firm's Shares HEXCEL CORP: Expects Double Digit Sales Growth in 2008 NOVELL INC: SEC Inquiries Prompt Delay in 2007 Earnings Release * BRAZIL: Petroleo Brasileiro Supplying Natural Gas To Bahiagas C A Y M A N I S L A N D S BOMBAY CO: Court Sets Jan. 21, 2008 as Claims Bar Date LIPPER OFFSHORE: Sets Final Shareholders Meeting for Dec. 14 NORTH POLE: Will Hold Final Shareholders Meeting on Dec. 14 NZB ABSOLUTE: Sets Final Shareholders Meeting for Dec. 14 NZB ABSOLUTE HEALTHCARE: Final Shareholders Meeting Is Dec. 14 NZB PRODUCTS: Will Hold Final Shareholders Meeting on Dec. 14 OTEMACHI CAPITAL: Holding Final Shareholders Meeting on Dec. 14 PARMALAT SPA: PET Shift Boosts Romanian Juice Sales by 300% TRISTAR INTERNATIONAL: Final Shareholders Meeting Is on Dec. 14 VF CAYMANS: Sets Final Shareholders Meeting for Dec. 14 VF CAYMANS II: Will Hold Final Shareholders Meeting on Dec. 14 C H I L E ELECTRONIC DATA: Share Buyback Won't Impact Rating, Moody's Says REVLON INC: Stockholder to Refinance Unit's US$170-Mln Sub. Loan C O L O M B I A CORPORACION INTERAMERICA: S&P Affirms BB- Corp. Credit Rating SOLUTIA INC: Moody's Assigns B1 Corporate Family Rating SOLUTIA INC: S&P Rates Proposed US$1.2 Billion Term Loan at B+ * COLOMBIA: Cuts Mobile Firms' Maximum Connection Fee by 51% D O M I N I C A N R E P U B L I C CENVEO INC: S&P Lifts Corporate Credit Rating to BB- from B+ G U A T E M A L A BRITISH AIRWAYS: Traffic Figures Up 2.4% in November 2007 TECO ENERGY: Considers Amounts for Debt Tender Offer H A I T I DYNCORP INT: Teams Up with Thiess to Pursue Australian Contracts J A M A I C A DYOLL INSURANCE: Considering Jamaica Stock Exchange Suspension NATIONAL COMMERCIAL: Cash Plus Seeks for Further Injunction NATIONAL WATER: May Face Lawsuit for Unpaid J$38M Regulator Fees M E X I C O ALLIS-CHALMERS: S&P Shifts Outlook; Affirms B Corp. Credit Rtng CHRYSLER LLC: CEO Expects US$1.6 Bil. Loss in 2007, Source Says CHRYSLER LLC: Expected US$1-Bil. Loss Spurs Jan. Production Cuts COREL CORP: Partners with ConceptShare for Online Collaboration FORD MOTOR: Mulls Production Cuts Due to Low November Sales GENERAL MOTORS: Mulls Production Cuts Due to Low November Sales GRUPO GIGANTE: S&P Puts BB Corp. Credit Rating on WatchNegative GRUPO MEXICO: Negotiation with Mining-Metal Workers Union Fails HASBRO INC: Names Lisa Licht as General Manager for Licensing HASBRO INC: Paying US$0.16 Per Share Dividend on Feb. 15, 2008 INTERTAPE POLYMER: Moody's Ups IPG US Corp. Family Rating to B2 MOVIE GALLERY: Can Hire Ernst & Young as Tax Advisors MOVIE GALLERY: Inks DIP Financing Amendment with Goldman Sachs MOVIE GALLERY: Wants Lease Termination Procedures Approved REMY WORLDWIDE: Emerges from Chapter 11, Completes Sale of Knopf N I C A R A G U A PERRY ELLIS: Picks Joseph Natoli as Independent Board Director XEROX CORP: Appoints Three Corporate Officers to Executive Roles P E R U * PERU: Gets US$75-Mil. Loan to Improve Quality of Public Mgmt. P U E R T O R I C O ADVANCE AUTO: Moody's Rates US$200 Mil. Senior Term Loan at Ba1 ADVANCE AUTO: S&P Changes Outlook; Confirms BB+ Credit Rating AVNET INC: Operating Unit Expands Semiconductor Offerings BIOVAIL CORP: S&P Drops Long-Term Corporate Credit Rating to BB DORAL FINANCIAL: Clarifies Info on the November Cash Dividend DORAL FINANCIAL: James Gilleran & Ramesh Shah Joins Board FIRSTBANK PUERTO RICO: S&P Affirms BB+ Counterparty Credit Rtng LIN TV: Concludes Review of Strategic Alternatives V E N E Z U E L A PETROLEOS DE VENEZUELA: Unit Establishes Four Joint Ventures REVLON CONSUMER: MacAndrews Loan Cues S&P to Revise Outlook SHAW GROUP: Earns US$600,000 in Fourth Quarter Ended Aug. 31 * BOND PRICING: For the Week Dec. 3 to Dec. 7 - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Three Groups Submit Non-Binding Offers ---------------------------------------------------- The Board of Directors of Alitalia S.p.A. took note -- referring to the Company's project aimed at rapidly identifying industrial and financial subjects committed to carry forward Alitalia's restructuring, development and re-launching and, in such context, willing to acquire a majority shareholding in the Company -- of the communication from the advisor Citi regarding the receipt of non-binding Proposals from: -- Air France-KLM, -- AP Holding S.p.A., and -- Cordata Baldassarre. As regards to Cordata Baldassarre, represented by Prof. Antonio Cordata Baldassarre, the Board, even after having taken note that it hasn't been provided to the advisor Citi the basic information elements to participate in the project, making it impossible to proceed to the necessary further analysis, assigned to the advisor of Alitalia the task to proceed with the evaluation of the Proposal and to report his findings to the Board of Directors. Upon completion of the examination by the advisor of the Proposals presented, the Board of Directors will meet, presumably during next week, to select the subject with which to begin exclusive negotiations. 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. DANA CORP: Affinia Still Involved in Company's Bankruptcy --------------------------------------------------------- Affinia Group Intermediate Holdings Inc. continues to be involved in Dana Corp.'s bankruptcy, which includes asbestos- related matters. On March 3, 2006, Dana and 40 of its domestic subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court, Southern District of New York (Case No. 06-10354). On Sept. 26, 2007 Dana filed an adversary complaint against Company subsidiaries Affinia Group Inc. and Affinia Canada Corp. (Adv. Pr. No. 07-02059) seeking turnover under the Purchase Agreement and section 542(a) of the Bankruptcy Code of a tax refund in the amount of US$32.5 million. Dana alleges that the tax refund is an excluded asset that was not transferred under the Purchase Agreement. In addition, on Oct. 3, 2007, Dana filed a motion under section 365 of the Bankruptcy Code to reject both the Stock and Asset Purchase Agreement and the Spicer Trademark License Agreement, the rejection of which would enable Dana to disavow and abandon its obligations under these agreements. Under these agreements, Dana is contractually obligated to: (a) indemnify the Company for specified liabilities; including, (i) liabilities arising out of legal proceedings commenced prior to the Acquisition, and (ii) liabilities for death, personal injury or other injury to persons (including, but not limited to, such liabilities that result from human exposure to asbestos) or property damage occurring prior to the Acquisition relating to the use or exposure to any of Dana's products designed, manufactured, served or sold by Dana; and (b) license the Company's use of the "Spicer" trademark. 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. 64; Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001) DANA CORP: Urges Court to Disallow 1,064 Claims ----------------------------------------------- Dana Corp. asks the U.S. Bankruptcy Court for the Southern District of New York to disallow 1,064 claims, totaling US$52,663,000, because these claims are Asbestos Personal Injury Claims and will be reinstated under the Plan. The Asbestos Personal Injury Claims include: -- Roy Adair (Claim No. 12079 - US$200,000) -- Gregorio Aguirre (Claim No. 11968 - US$200,000) -- David Alber (Claim No. 12043 - US$200,000) -- John Alexander (Claim No. 11989 - US$200,000) -- Clarence Allen (Claim No. 12371 - US$200,000) -- Naomi Ammerman (Claim No. 12076 - US$200,000) -- Johnnie Apodaca (Claim No. 11992 - US$200,000) -- Linda Atchley (Claim No. 12372 - US$200,000) -- Joseph Baca (Claim No. 11938 - US$200,000) -- Haroldine Bartlett (Claim No. 11977 - US$200,000) -- Walter Becker (Claim No. 12311 - US$200,000) -- Joseph Boutot (Claim No. 11991 - US$200,000) -- Leonard Chavez (Claim No. 11964 - US$200,000) -- Lyle Covington (Claim No. 1227 - US$200,000) -- Claude Dawson (Claim No. 11985 - US$200,000) 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. 64; Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001) FARMACIA 533: Files for Reorganization in Buenos Aires Court ------------------------------------------------------------ Farmacia 533 Sociedad en Comandita Simple has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Farmacia 533 to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 9 in Buenos Aires. Clerk No. 18 assist in this case. The debtor can be reached at: Farmacia 533 Sociedad en Comandita Simple Medrano 533 FREESCALE SEMICONDUCTOR: Moody's Pares Corp. Family Rating to B1 ---------------------------------------------------------------- Moody's Investors Service has lowered the ratings of Freescale Semiconductor, Inc. and maintained the negative outlook. Moody's also affirmed the speculative grade liquidity rating at SGL-1. This concludes the review for possible downgrade that was initiated on Oct. 24, 2007. The downgrade to B1 reflects Freescale Semiconductor's weakened credit profile evidenced by continued high financial leverage, reduced capacity utilization levels and lower earnings prospects over the near term. It also incorporates Moody's expectations of: (i) continued weakness in the company's wireless segment, which accounts for roughly one third of its revenues; (ii) moderating demand in the company's networking segment (approximately 22% of revenues) due to subdued North American wireline and wireless infrastructure spending as the large communications equipment providers continue to delay purchases amid network consolidation; (iii) lackluster revenue growth in the transportation segment; and (iv) long product lead times before semiconductor design win activity transitions to the production phase and contributes to margins and earnings. While the company maintains relatively high gross and operating margins as well as very good liquidity, the negative outlook reflects Moody's concerns regarding the difficult end market and customer conditions, which have negatively impacted EBITDA and free cash flow levels. This has delayed leverage reduction, causing debt and credit protection measures to migrate to levels more comparable to mid single-B rated peers. The negative outlook captures Moody's view that the company will be challenged to reduce leverage to under 6.0 EBITDA on a sustained basis over the next twelve months. It also takes into consideration the company's thin interest coverage and reduced financial flexibility, which is magnified by diminished operating cash flow, a limited track record as a standalone company and lack of historical performance during a downturn. The ratings could experience downward pressure if end market demand weakens further or remains soft for a protracted period resulting in lower-than-anticipated operating cash flow, weak free cash flow generation, Moody's adjusted debt to EBITDA above 6.0 for an extended period and/or erosion of liquidity sources. The B1 rating recognizes Moody's view that Freescale Semiconductor: (i) maintains strong market leadership positions and a rich product portfolio comprising breadth and depth of technology; (ii) benefits from a diversified revenue base with exposure to the relatively stable and less volatile transportation and networking segments which tend to exhibit slower growth prospects but longer product life cycles than the wireless space; (iii) could benefit from its near-sole source provider status for baseband and power management ICs in Motorola's recent line-up of handsets and its status as a RF transceiver supplier in newly-launched mobile devices from both RIM and Motorola, to the extent consumer uptake materializes; (iv) is positioned to benefit longer-term from increasing content in existing mobile OEM customer platforms as design solicitations are won (especially in 3G) and shipments ramp; (v) has considerably improved its operating efficiency since the Motorola spin-off and has taken steps to reduce operating costs in the challenging business environment; and (vi) has a defensive operating model that allows it to quickly reduce expenses and capex in response to weak market conditions. The SGL-1 rating reflects the company's very good liquidity in spite of diminished internal cash generation. LTM free cash flow has declined to levels well-below Moody's expectations. Over the next twelve months, Moody's anticipates free cash flow to remain below 2% of total debt and EBITDA interest coverage to remain under 2.0. Moody's expects this to be driven by: (i) weak operating cash generation given its expectations of continued softness in the company's addressable end markets; and (ii) sizeable interest payments (approximately US$800 million per year). The company's depressed cash flow is offset by strong balance sheet liquidity consisting of cash and short-term investments totaling US$772 million, as of September 2007, and potential cash proceeds of US$200 - US$300 million from asset sales. The SGL-1 rating also incorporates the company's ability to suspend roughly US$137 million of cash interest payments through the use of a PIK toggle structure on US$1.5 billion of senior notes. However, Moody's notes that continued weakness in internal cash generation could force the company to draw down on its cash balance and/or credit facilities, which would place downward pressure on the liquidity rating. Presently, external liquidity remains solid through an undrawn US$750 million revolver that expires in 2012. The bank credit facilities contain a financial covenant that subjects the company to a first-lien secured debt incurrence test. The company currently has sufficient headroom under this covenant and full access to the revolver. These ratings were downgraded: -- Corporate Family Rating to B1 from Ba3 -- Probability of Default Rating to B1 from Ba3 -- US$ 750 Million Senior Secured Revolving Credit Facility due 2012 to Ba1 (LGD-2, 17%) from Baa3 (LGD-2, 16%) -- US$3.50 Billion Senior Secured Term Loan B Facility due 2013 to Ba1 (LGD-2, 17%) from Baa3 (LGD-2, 16%) -- US$2.35 Billion Senior Unsecured Notes due 2014 to B2 (LGD- 4, 65%) from B1 (LGD-4, 63%) -- US$ 500 Million Senior Unsecured Floating Rate Notes due 2014 to B2 (LGD-4, 65%) from B1 (LGD-4, 63%) -- US$1.50 Billion Senior Unsecured Toggle Notes due 2014 to B2 (LGD-4, 65%) from B1 (LGD-4, 63%) -- US$1.60 Billion Senior Subordinated Unsecured Notes due 2016 to B3 (LGD-6, 92%) from B2 (LGD-6, 91%) This rating was affirmed: -- Speculative Grade Liquidity Rating - SGL-1 Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL) (NYSE:FSL.B) -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale Semiconductor became a publicly traded company in July 2004. The company has design, research and development, manufacturing or sales operations in more than 30 countries. In Latin America, the company has operations in Argentina, Brazil and Mexico. In Europe, the company has operations in Czech Republic, France, Germany, Ireland, Italy, Romania, Turkey and the United Kingdom. Revenues for the 12 months ended Mar. 31, 2007 were US$6.2 billion. INDUSTRIAL PESQUERA: Trustee Verifies Claims Until Dec. 28 ---------------------------------------------------------- Jose Luis Fittipaldi, the court-appointed trustee for Industrial Pesquera Necochea S.A.I.C.'s reorganization proceeding, verifies creditors' proofs of claim until Dec. 28, 2007. Mr. Fittipaldi will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Necochea, 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 Industrial Pesquera 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 Industrial Pesquera's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on Aug. 14, 2008. The debtor can be reached at: Industrial Pesquera Necochea S.A.I.C. Avenida 10, Numero 2958 Necochea, Buenos Aires Argentina The trustee can be reached at: Jose Luis Fittipaldi Calle 66, Numero 3045 Necochea, Buenos Aires Argentina ORION XXI: Proofs of Claim Verification Deadline Is Feb. 5, 2008 ---------------------------------------------------------------- Emilio Abraham, the court-appointed trustee for Orion XXI SA's bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 5, 2008. Mr. Abraham will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 9 in Buenos Aires, with the assistance of Clerk No. 18, 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 Orion XXI 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 Orion XXI's accounting and banking records will be submitted in court. Mr. Abraham is also in charge of administering Orion XXI's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Orion XXI SA Maipu 388 Buenos Aires, Argentina The trustee can be reached at: Emilio Abraham Viamonte 1592 Buenos Aires, Argentina SCO GROUP: Court Approves Tanner LLC as Accountant -------------------------------------------------- The SCO Group Inc. and its affiliate, SCO Operations Inc., obtained authority from the U.S. Bankruptcy Court for the District of Delaware to employ Tanner LC as their accountants. As reported in the Troubled Company Reporter on Nov. 8, 2007, Tanner LC is expected to perform an audit of the Debtors' consolidated financial statements for the year ending Oct. 31, 2007, and to assist the Debtors in reviewing their financial statements and other documents necessary for the Securities and Exchange Commission submissions. Kent M. Bowman, an auditor at Tanner LC, told the Court the Debtors agreed to pay an estimated amount of approximately US$196,000. The firm's reviews of the 10-Q's will bill a fixed fee of US$22,500 per 10-Q report. For all other services in connection with the services rendered, the firm will bill at the normal customary rate. To the best of the Debtors' knowledge, the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as the Debtors' claims and noticing agent. The U.S. Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. SCO GROUP: Court Oks Chief Fin'l Exec to Come from CFO Solutions ---------------------------------------------------------------- The SCO Group Inc. and its affiliate, SCO Operations Inc., obtained authority from the U.S. Bankruptcy Court for the District of Delaware, to employ CFO Solutions LC to provide their company with a chief financial officer. As reported in the Troubled Company Reporter on Nov 8, 2007, CFO Solutions provides consulting services and temporary employees to staff CFO and other key financial positions in companies. CFO Solutions proposed the appointment of Ken Nielsen as the Debtors' chief financial officer. Mr. Nielsen is expected to assist the Debtors in financial and general management matters, including, evaluating and implementing strategic and tactical options through the restructuring process. Specifically, Mr. Nielsen will: a) develop and implement cash management strategies and reporting protocols; b) develop and evaluate various restructuring alternatives and negotiate with key creditors and other stakeholders; c) assist in day-to-day oversight and management of the Debtors' operations; and d) counsel and assist the Debtors through the marketing and sale process, or other reorganization strategies, including the identification of the highest and best transaction, and to assist with such other matters as may be requested that fall within the firm's expertise and mutually agreeable. The Debtors told the Court that the firm will charge $150 per hour. Of the total amount, Mr. Nielsen will receive $105 through the Debtors' payroll and US$45 will be paid to the firm. The Debtors also related that they agreed to pay the firm an amount not to exceed 30% of Mr. Nilesen's annual salary, minus all amounts paid to the firm, as of the date of termination as a placement fee, if Mr. Nielsen will be terminated prior to the expiration of the six month term. Furthermore, the Debtors agreed to pay the firm US$40,000 minus 70% of any severance amounts paid to Mr. Nielsen, if the Debtors terminate Mr. Nielsen, without cause, or if Mr. Nielsen is unable to perform the services. If the Court does not approve the hourly payments to the firm under the agreement, the Debtors have agreed to compensate the firm 30% of Mr. Nielsen's annual base salary, as a placement fee for a chief operating officer. To the best of the Debtors' knowledge, the Mr. Nielsen holds no interest adverse to the Debtors' and their estates and is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as the Debtors' claims and noticing agent. The U.S. Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. VERIFONE INC: Accounting Errors Prompt S&P to Revise Outlook ------------------------------------------------------------ Standard & Poor's Ratings Services has revised its outlook on VeriFone Inc. to negative from positive, following the announcement that the company will restate its previously issued, unaudited interim consolidated financial statements for the quarters ended January, April, and July 2007. Ratings on the company, including the 'BB-' corporate credit rating, were affirmed. The company announced that it will restate previous financial statements because of errors in accounting related to the valuation of in-transit inventory and allocation of manufacturing and distribution overhead to inventory. Both of these affect the company's reported cost of revenues. VeriFone currently expects to file the amended quarterly reports, together with its fiscal 2007 (October year-end) audited financial statements, in January 2008. "The ratings reflect the company's moderate debt leverage and acquisitive growth strategies," said S&P's credit analyst David Tsui. "These factors are offset partially by VeriFone's leading position in the niche market for electronic payment solutions and its diversified customer and market base." VeriFone Inc. is headquartered in Santa Clara, California, and is a global market leader in the development and sale of point- of-sale electronic payment systems. The company has operations in Argentina, Australia, Brazil, China, France, India, Malaysia, Poland, the United Kingdom, the United States, among others. ============= B E R M U D A ============= DRESDNER RCM: Sets Final Shareholders Meeting for Dec. 14 --------------------------------------------------------- Dresdner RCM New Tiger Selections Fund Limited will hold its final shareholders meeting on Dec. 14, 2007, at 10:15 a.m. at: Deloitte & Touche Corner House, Chruch & Parliament Streets 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. DRESDNER RCM ORIENTAL: Final Shareholders Meeting Is on Dec. 14 --------------------------------------------------------------- Dresdner RCM Orienal Income Fund Limited will hold its final shareholders meeting on Dec. 14, 2007, at 10:30 a.m. at: Deloitte & Touche Corner House, Chruch & Parliament Streets 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. DRESDNER RCM TIGER: Holding Last Shareholders Meeting on Dec. 14 ---------------------------------------------------------------- Dresdner RCM Tiger Fund Limited will hold its final shareholders meeting on Dec. 14, 2007, at 10:00 a.m. at: Deloitte & Touche Corner House, Chruch & Parliament Streets 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. LIGHTHOUSE INSURANCE: Court To Hear Wind-Up Petition on Dec. 14 --------------------------------------------------------------- The Supreme Court of Bermuda will hear Lighthouse Insurance Company Limited's wind-up petition at on Dec. 14, 2007, at 9:30 a.m. The Bermuda Monetary Authority presented Lighthouse Insurance's petition on Nov. 13, 2007. Any creditor or contributory of the company who wants to support or oppose the making of an order on the petition may appear during the hearing by himself or his counsel. Anyone who wants to attend the hearing of the petition must submit by post a notice in writing of their intention to do so to Attride-Stirling & Woloniecki, the attorneys for the petitioner, stating the name and address of the person or firm. It must be signed by the person or firm and must be served or sent not later than 4:00 p.m. on Dec. 13, 2007. A copy of the petition will be furnished to any creditor or contributor of the company upon payment of the regulated charge for the document, which is available at: Attride-Stirling & Woloniecki Crawford House, 50 Cedar Avenue Hamilton HM11, Bermuda Fax: 441 295 6566 MUTUAL ARGENTINA: Proofs of Claim Filing Deadline Is Dec. 14 ------------------------------------------------------------ Mutual Argentina Holdings Limited's creditors are given until Dec. 14, 2007, to prove their claims to Robin J. Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Mutual Argentina's shareholder decided on Nov. 29, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda MUTUAL ARGENTINA: Sets Final Shareholders Meeting for Dec. 31 ------------------------------------------------------------- Mutual Argentina Holdings Limited 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. NCB INSURANCE: Court Will Hear Wind-Up Petition on Dec. 14 ---------------------------------------------------------- The Supreme Court of Bermuda will hear NCB Insurance Limited's wind-up petition on Dec. 14, 2007, at 9:30 a.m. The Bermuda Monetary Authority presented Lighthouse Insurance's petition on Nov. 13, 2007. Any creditor or contributory of the company who wants to support or oppose the making of an order on the petition may appear during the hearing by himself or through his counsel. Anyone who wants to attend the hearing of the petition must submit by post a notice in writing of their intention to do so to Attride-Stirling & Woloniecki, the attorneys for the petitioner, stating the name and address of the person or firm. It must be signed by the person or firm and must be served or sent not later than 4:00 p.m. on Dec. 13, 2007. A copy of the petition will be furnished to any creditor or contributor of the company upon payment of the regulated charge for the document, which is available at: Attride-Stirling & Woloniecki Crawford House, 50 Cedar Avenue Hamilton HM11, Bermuda Fax: 441 295 6566 REFCO INC: Ch. 7 Trustee Wants Nod on MF Global Settlement Pact --------------------------------------------------------------- Albert Togut, as Chapter 7 Trustee for Refco, LLC, asks the U.S. Bankruptcy Court for the Southern District of New York to approve a settlement and compromise he entered into on behalf of the Chapter 7 for the estates of Refco LLC and Refco Trading Services, LLC, with: (a) the Reorganized Debtors; (b) Reorganized Refco Capital Markets, Ltd.; (c) the plan administrators of the Reorganized Debtors and Reorganized RCM; (d) certain non-debtor Refco affiliates -- Refco (Singapore) Pte. Limited, Refco Overseas Ltd., Refco Investment Services Pte. Ltd., Refco Securities, LLC, Refco Trading Services, Ltd. and CI Investor Services, Ltd.; (e) the litigation trustee under the Refco litigation trust established by the Plan; and (f) MF Global, Inc., formerly known as Man Financial Inc. Ronald DeKoven, Esq., at Jenner & Block LLP, in Chicago, Illinois, reminds the Court that Refco LLC sold its futures commission merchant business and its international business lines -- Refco Singapore, Refco Investment Services Pte Ltd., Refco Overseas Limited, and the stock in Refco Canada Co. -- to MFG. MFG paid US$282 million in cash on account of the Sales, as well as an additional US$1 million in liquidated damages resulting from MFG's decision not to purchase the assets of Refco Hong Kong Ltd. The Chapter 7 Trustee, MFG, and Citibank, N.A., as escrow agent, executed a Purchase Price Escrow Agreement, wherein MFG deposited funds equal to 25% of the adjusted purchase price into an escrow account. As of Sept. 30, 2007, the balance of the Escrow Account was US$75,545,000,000 of which US$70.187 million (or 92.91%) was attributable to proceeds from the Sales (exclusive of Refco Singapore), and US$5.358 million (or 7.09%) was attributable to the sale of Refco Singapore. MFG has asserted significant claims against the escrowed proceeds, and consequently, the escrowed proceeds have not been released. The Chapter 7 Trustee also have material unresolved claims against MFG. Following months of negotiations between the Chapter 7 Trustee and MFG, the Parties have now come to a resolution of the remaining outstanding claims relating to the Sales, and are willing to settle all claims against each other. Among others, the parties agree that: 1. The balance, including all accrued interest, of the Escrow Account maintained at the Escrow Agent will be released by the Escrow Agent to the Chapter 7 Trustee; 2. Approximately 92.91% of the proceeds from the Escrow Account will be allocated: (i) 87.1% to Refco, LLC; (ii) 3.7% the selling shareholders of Refco Canada Co.; (iii) 4.5% to Refco Group Ltd.; and (iv) 4.7% to Refco Global Holdings, LLC. The remaining 7.09% of the proceeds in the Escrow Account are allocable to the sale of Refco Singapore and will be distributed to Refco Singapore; 3. MFG will pay to the Chapter 7 Trustee US$2,191,347 as settlement payment representing US$2,900,000, less certain tax obligations and the allowed amount of the Man Financial Ltd. claim; 4. The Tax Obligations that will be deemed satisfied upon delivery of the MFG Settlement Payment are: (i) US$50,007 to satisfy certain of the Refco Entities' capital gains tax obligations relating to their India operations; and (ii) US$306,818 to satisfy certain of the Refco Entities' tax obligations relating to Polaris-Refco Futures Co., Ltd.; 5. Man Financial's Claim No. 409 for US$351,827 against the Chapter 7 Debtor will be allowed and satisfied upon delivery of the MFG Settlement Payment. 6. The Refco Entities and MFG each retain their obligations and rights under their Facilities Management Agreement; 7. The superpriority liens and claims granted to MFG pursuant to the Chapter 7 Sale Order will be deemed released; and 8. The parties will exchange mutual releases, except with respect to certain obligations. A full-text copy of the Agreement is available for free at: http://bankrupt.com/misc/PartiesSettlementAgreement.pdf About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 73 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or215/945-7000). SENSU LTD: Court Will Hear Wind-Up Petition on Dec. 14 ------------------------------------------------------ The Supreme Court of Bermuda will hear Sensu Ltd.'s wind-up petition on Dec. 14, 2007, at 9:30 a.m. The Bermuda Monetary Authority presented Lighthouse Insurance's petition on Nov. 13, 2007. Any creditor or contributory of the company who wants to support or oppose the making of an order on the petition may appear during the hearing by himself or his counsel. Anyone who wants to attend the hearing of the petition must submit by post a notice in writing of their intention to do so to Attride-Stirling & Woloniecki, the attorneys for the petitioner, stating the name and address of the person or firm. It must be signed by the person or firm and must be served or sent not later than 4:00 p.m. on Dec. 13, 2007. A copy of the petition will be furnished to any creditor or contributor of the company upon payment of the regulated charge for the document, which is available at: Attride-Stirling & Woloniecki Crawford House, 50 Cedar Avenue Hamilton HM11, Bermuda Fax: 441 295 6566 ============= B O L I V I A ============= MILLICOM INT: Colombian Unit Eyes 2.9 Mln Subscribes by Year-End ---------------------------------------------------------------- Millicom International's Colombian unit Tigo sees about 2.9 million clients by the end of 2007, Colombian news daily Portafolio reports. Cellular-News relates that as of September 2007, Tigo reported about 2.6 million clients. Tigo would end 2007 with coverage in 700 cities and municipalities across Colombia. Its investments in coverage would total US$170 million this year, Portafolio states. About Tigo Tigo won its nationwide PCS license in January 2003. The operator began as a joint venture (50:50) between Bogota-based fixed line operator ETB and Medellin-based public services and telecoms group EPM. In September 2006, Millicom International Cellular acquired a 50% plus one share-controlling stake in the company. About Millicom International Headquartered in Bertrange, Luxembourg, and controlled by Sweden's AB Kinnevik, Millicom International Cellular S.A. -- http://www.millicom.com/-- is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has cellular operations and licenses in 16 countries. The Group's cellular operations have a combined population under license of around 391 million people. The Central America Cluster comprises Millicom's operations in El Salvador, Guatemala and Honduras. The population under license in Central America at December 2005 is 26.4 million. The South America Cluster comprises Millicom's operations in Bolivia and Paraguay. The population under license in South America at December 2005 is 15.2 million. * * * As reported in the Troubled Company Reporter-Latin America Nov. 16, 2007, Moody's Investors Service has upgraded ratings of Millicom International Cellular S.A. The corporate family rating was upgraded to Ba2 from Ba3 and the rating on the existing senior notes was upgraded to B1 from B2. Moody's said the outlook on the ratings is stable. =========== B R A Z I L =========== BANCO NACIONAL: Praia Grande Secures BRL124-Mln Loan from Bank -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social told Business News Americas that it has signed a BRL124-million loan with Praia Grande city for drainage and environmental sanitation. Business News Americas relates that funds from the federal growth acceleration program of Brazil will supplement the Banco Nacional loan, bringing total project financing to BRL155 million. According to BNamericas, Coastal Praia Grande had one of the highest growth in population in the region, increasing demand for basic services. The works will also bring in jobs and money as better infrastructure will attract more tourists in the summer season. BNamericas states that these most populated and lower income neighborhoods will have works done first: -- Satio do Campo, -- Antartica, -- Quietude, -- Trevo, and -- Rio Branco. 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. BRASKEM SA: S&P Raises Long-Term Corporate Credit Rating to BB+ --------------------------------------------------------------- Standard & Poor's Ratings Services has raised its long-term corporate credit rating on Brazilian petrochemical company, Braskem S.A. to 'BB+' from 'BB'. At the same time, the rating was removed from CreditWatch, where it was placed with positive implications on Nov. 26, 2007. The Brazil National Scale credit rating on the company was also raised to 'brAA+' from 'brAA'. The outlook is stable. The rating action reflects Braskem's improved business profile, resulting from both the acquisition of the control of strategic assets in the Triunfo Petrochemical Complex and the recently announced agreement with Petroleo Brasileiro S.A. (Petrobras; BBB-/Stable/--) under which Petrobras will contribute its stakes in co-owned petrochemical assets in exchange for a higher shareholding position at Braskem. These transactions significantly strengthen Braskem's business profile, as they further improve operating integration into feedstock and reinforce the company's leading market position in Brazil, pointing toward margin improvement and reduction in credit measures volatility in the future. "The rating action also reflects the improvements in the company's financial profile already captured by the consolidation of acquired assets and expectations that the company will continue using its more resilient cash flows to pay down acquisition debt," said S&P's credit analyst Victor Saulytis. The rating on Braskem reflects the company's exposure to volatile input costs (mainly naphtha), as well as to the associated working capital swings; reliance on its home market for EBITDA and increasing competition arising from large local players; and the risks associated with the company's growth and internationalization plans. These risks are partly offset by the company's leading business and market position in the Brazilian petrochemical industry; a fair financial profile, with adequate liquidity and debt amortization schedule; economies of scale; some geographic diversification; and increasing technological expertise. The stable outlook reflects S&P's expectations that Braskem will consistently improve financial ratios, as higher and more resilient cash flows are used to pay down acquisition debt gradually. S&P expects the company to sustain prudent financial policies and low debt maturity concentration after the acquisitions are completed. The company will increasingly benefit from higher operating integration and stronger market position, which S&P expects to result in consistently stronger profitability and resilient cash flows. As such, a positive revision of the ratings would depend primarily on gross debt reduction relative to midcycle cash flows, causing FFO-to-total debt to be consistently higher than 40% and total debt-to-EBITDA lower than 1.5. Alternatively, the ratings or outlook could be revised negatively if the company is not able to continue improving credit measures or liquidity deteriorates significantly, which may be caused by feedstock volatility, working capital pressures, or unfavorable market conditions. Finally, changes in the company's investment strategy (including investments in Venezuela) causing higher cash outflows than initially expected and leading to a more leveraged capital structure, could also place negative pressure on the ratings. Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. DELPHI CORP: Gets Committees' Support on Plan Amendments -------------------------------------------------------- Delphi Corp. said it has reached agreements in principle with its Official Committee of Unsecured Creditors, its Official Committee of Equity Security Holders, General Motors Corp. and its Plan Investors on amendments to its Joint Plan of Reorganization, Global Settlement Agreement and Master Restructuring Agreement between Delphi and GM, and the Investment Agreement with Delphi's Plan Investors led by an affiliate of Appaloosa Management L.P. Delphi filed potential amendments to all four documents on Monday evening in the United States Bankruptcy Court for the Southern District of New York as revisions to the company's Disclosure Statement and appendices to the company's Disclosure Statement. Delphi expects to make further amended filings prior to the resumption on Dec. 6, 2007 of the Disclosure Statement hearing commenced in Oct. 2007. These filings will include further changes required to reflect the agreements in principle with Delphi's key stakeholders and executed signature pages with respect to the Company's agreements with GM and the Plan Investors. These agreements currently remain subject to proposedamendments announced on Nov. 14, which are also subject to Bankruptcy Court approval. The potential amendments primarily reflect changes required by Delphi's Statutory Committees to obtain their support of Delphi's Plan and related Disclosure Statement. In the event these amendments do not become effective, the original underlying agreements as approved by the Bankruptcy Court on Aug. 2 remain in effect. The company continues to pursue emergence from Chapter 11 during the first quarter of 2008. The potential amendments to the Disclosure Statement and certain Appendices (which include amendments to the POR, the GM Global Settlement Agreement, the GM Master Restructuring Agreement and the Investment Agreement) will be available on http://www.delphidocket.com/ 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. 100; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) GERDAU SA: Socopo Puts Hold Recommendation on Firm's Shares ----------------------------------------------------------- Brazilian brokerage Socopa has assigned a "hold" rating on Gerdau SA's shares, after the steel company disclosed plans of investing about US$400 million in a new heavy plate rolling plant, Business News Americas reports. Socopa said in its report, "We consider Gerdau's plans to be positive, for the installation of a heavy plate rolling operation diversifies its product mix and takes advantage of existing marketing know-how." "The company gains competitiveness to face competition from Usiminas and Arcelor," Socopa commented to BNamericas. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook, following the announcement of an agreement to acquire the specialty steel operations of Quanex Corporation, mainly represented by its MacSteel division for some US$1.46 billion in cash. All other ratings related to the company were affirmed. Ratings affirmed are: Issuer: Gerdau S.A. -- Ba1 Global Local Currency Corporate Family Rating -- US$600 million Senior Unsecured Guaranteed Perpetual Notes: Ba1 Foreign Currency Rating Issuer: Gerdau Brazil (fictitious entity representing the Brazilian operations of Gerdau S.A. comprising Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos S.A.). -- Ba1 Global Local Currency Corporate Family Rating Issuer: Gerdau Ameristeel Corporation -- Ba1 Probability of Default Rating -- Ba1 Corporate Family Rating -- US$405 million Senior Unsecured Regular Bond: Ba1, LGD4 59% Issuer: Jacksonville Economic Development Comm. -- US$23 million Senior Unsecured Revenue Bonds guaranteed by Gerdau Ameristeel: Ba1, LGD4 59% Outlook for all ratings: stable HEXCEL CORP: Expects Double Digit Sales Growth in 2008 ------------------------------------------------------ Hexcel Corporation has discussed its guidance for 2008 and outlook for the future. Mr. David Berges, summarizing Hexcel's prospects, commented, "For 2008 we see the continuation of growth in all of our core markets and an increasing significance of Airbus A380 and Boeing 787 sales. We expect our fifth year in a row of double digit sales growth led by commercial aerospace and wind energy markets. Global demand is lifting build rates for aircraft and wind turbines and we believe that this trend will continue for the foreseeable future. In addition, the ramp-ups for the Airbus A380 and Boeing 787 programs accelerate the secular penetration story for composites in commercial aerospace." "We expect that we will achieve our margin targets for 2007 and the sales growth will lead to an increased rate of operating margin and earnings expansion in 2008. Our expectations are for improvement of about 100 basis points in operating margin in 2008 despite continued cost pressures from high oil costs and unfavorable foreign exchange rates." "Our 2007 sale of non-core reinforcements businesses both improved our prospects for consistent growth and helped put our balance sheet in the best shape it has been in for years. Entering 2008, we expect debt to be less than two times EBITDA and we expect our capital investment program to be funded from operations." Revenue Commercial Aerospace With continued increases in aircraft production and the contribution of A380 and B787 ramp up, total 2008 commercial aerospace revenues are projected to grow in the range of 12% - 15% as compared to 2007. At currently projected build rates, the A380 and B787 programs could contribute over US$200 million more in revenues to Hexcel in 2010 than 2007. Combined with industry projections of other aircraft build increases, the three year revenue trend for Airbus and Boeing programs could result in average revenue growth in the high-teens for the three year period. Space & Defense The company expects its Space & Defense revenues to maintain their long-term growth trend of 8%-10% per year. A key driver near term will be continued strong growth in rotorcraft, particularly the ramp-up of the V-22 Osprey. It is hoped that sales to the new A400M transport will offset the possible decline of the C-17 program. Longer term, the F-35 Joint Strike Fighter program will be a key growth contributor. Industrial Led by the strong growth in wind energy revenues, industrial sales growth should return to the mid-teens. After a year of portfolio pruning in "other industrial" and a weak year of recreational sales, non-wind related sales will show some modest improvement. Longer term, the company expects continued growth of wind energy as well as the addition of over US$40 million per year in new material sales for the American Centrifuge Program and other new industrial opportunities by 2010. Consolidated Revenues In total, the company anticipates 2008 consolidated revenues to grow in a range of 10%-15% year-on-year, assuming the average Euro and British pound exchange rates in 2008 are comparable to 2007. Based on its current mix of sales, while a weaker US dollar would inflate revenues, operating income would not increase, and as a result, margin percentages would compress. Operating Margin The company should see continued improvement in operating margin percentage through leverage on incremental sales, productivity gains, cost reductions, increased pricing and carbon fiber expansion. These improvements will be partially offset by the continuing cost pressures from the collateral impact of oil costs and the weak dollar. In 2008, its target-operating margin is 12-12.5% of sales, which will be an improvement of about 100 basis points from 2007 levels (excluding business consolidation and restructuring expenses). However, the company expects first quarter operating margin to be slightly lower than the 2008 average due to the start-up activities at its new manufacturing facilities and the usual timing associated with its stock compensation expense. Included within its 2008 operating margin assumptions is an US$8-US$10 million increase in depreciation expense from 2007 levels. Diluted EPS The company expects 2008 earnings per share to be in the range of US$0.90 to US$0.95, excluding any possible impact from non- recurring items. For example, the previously disclosed settlement expense for the termination of the US defined pension plan (about US$0.08 per share), will primarily be recorded in the fourth quarter of 2007, but the company expects about US$0.02 of this charge to occur in early 2008. This EPS estimate is based upon an implied tax rate of 38% for the year and an estimated diluted share count of 97.5-98.5 million. Hexcel's effective tax rate is sensitive to the mix of taxable income from its U.S. and European operations and the volatility inherent in FIN 48. Cash Flows Capital expenditures are expected to be approximately US$150 million as the company moves ahead with its previously announced expansion of carbon fiber production capacity. Cash flows from operations are expected to be sufficient to cover the capital spending plans. New program wins will determine future capital spending levels, but the company currently expects US$120-US$150 million per year to be a pace that would support most growth scenarios for a number of years. About Hexcel Corp. Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications. The company has operations in Australia, Brazil, China, France and Japan, among others. * * * As reported in the Troubled Company Reporter on April 5, 2007, Moody's Investors Service has raised the ratings of Hexcel Corporation, Corporate Family Rating to Ba3 from B1. The ratings on Hexcel's senior secured credit facility have been upgraded to Ba1 from Ba2, while the subordinated notes ratings were upgraded to B1 from B3. Moody's said the ratings outlook is stable. NOVELL INC: SEC Inquiries Prompt Delay in 2007 Earnings Release --------------------------------------------------------------- Novell Inc. has decided to postpone its fourth quarter and full- year 2007 earnings release and conference call. The release of its fourth quarter and full-year results was initially scheduled Wednesday, Dec. 5, 2007. Novell received a comment letter from the U.S. Securities and Exchange Commission, dated Aug. 7, 2007, regarding Novell's Form 10-K for the fiscal year ended Oct. 31, 2006, and its Form 10-Q for the quarterly period ended April 30, 2007. Novell delivered a response letter to the SEC on Sept. 20, 2007. On Oct. 18, 2007, Novell received a second comment letter from the SEC indicating that the SEC had reviewed Novell's response to the Aug. 7, 2007, letter. The second comment letter was limited to certain accounting matters. Novell responded to the SEC's second comment letter on Nov. 7, 2007, and is awaiting a response. "We are confident of our accounting and are working diligently with the SEC to respond to their inquiries," said Dana C. Russell, chief financial officer of Novell. "In an abundance of caution, we have chosen to postpone our earnings release. We look forward to completing our dialogue with the SEC." Novell intends to release its fourth quarter and full-year 2007 earnings upon the completion of the SEC's review. Novell is unable to estimate when the process will be completed, but currently expects to file its Form 10-K for the fiscal year ended Oct. 31, 2007, on or before its due date of Dec. 31, 2007. Last May 23, 2007, Novell Inc. disclosed that it completed its self-initiated, voluntary review of the company's historical stock-based compensation practices and determined the related accounting impact. The scope of the review covered approximately 400 grant actions from Nov. 1, 1996, through Sept. 12, 2006. As a result of the review, Novell delayed the filing of its quarterly reports on Form 10-Q for the fiscal quarters ended July 31, 2006, and Jan. 31, 2007, and its annual report on Form 10-K for the fiscal year ended Oct. 31, 2006. The Audit Committee, together with its independent outside legal counsel, did not find any evidence of intentional wrongdoing by any former or current Novell employees, officers or directors. Novell determined, however, that it utilized incorrect measurement dates for some of the stock-based compensation awards granted during the review period. About Novell Inc. Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq: NOVL) -- http://www.novell.com/-- delivers infrastructure software for the Open Enterprise. Novell provides desktop to data center operating systems based on Linux and the software required to secure and manage mixed IT environments. The company has offices in Australia, Argentina, Austria, Belgium, Brazil, China, Czech Republic, Finland, Germany, Hong Kong, Hungary, India, Ireland, Japan, Luxembourg, Malaysia, Netherlands, New Zealand, Norway, Philippines, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand and United Kingdom. * * * Novell Inc.'s subordinated debt carries Moody's Investors Service's B1 rating. * BRAZIL: Petroleo Brasileiro Supplying Natural Gas To Bahiagas --------------------------------------------------------------- Brazilian state-run oil firm Petroleo Brasileiro SA said in a statement that it has signed a deal to supply about 5.1 million cubic meters per day of natural gas to Bahia state gas distributor, Bahiagas. Business News Americas relates that the newly agreed natural gas volume is about 1.6 million cubic meters per day higher compared to the current 3.5 million cubic meters per day deal between Petroleo Brasileiro and Bahiagas. BNamericas notes that of the added 1.6 million cubic meters per day of natural gas, about 500,000 cubic meters per day will be supplied through a "company and flexible accord." Meanwhile, some 1.1 million cubic meters per day will be supplied through an "interruptible deal." Petroleo Brasileiro can stop supplying natural gas to Bahiagas, BNamericas says, citing the "interruptible deal." Meanwhile, the "firm and flexible contract" requires Petroleo Brasileiro to sell fuel oil to Bahiagas for the same price as natural gas if it fails to supply the gas. Petroleo Brasileiro commented to BNamericas, "The new contract structures allow for more efficient planning in the natural gas market and ensures natural gas supplies to Bahia state." Due to production from the Camamu basin's Manati field, Petroleo Brasileiro could ensure natural gas supplies to Bahia. The field began producing earlier this year. It would reach production of six million cubic meters a day by year-end, BNamericas 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 =========================== BOMBAY CO: Court Sets Jan. 21, 2008 as Claims Bar Date ------------------------------------------------------ The United States Bankruptcy Court for the Northern District of Texas set Jan. 21, 2008, as the last day within which creditors of Bombay Co. and its debtor-affiliates may file their proofs of claim. Governmental units may file their proofs of claim on or before March 18, 2008. Proofs of claims must be filed at this address: AlixPartners LLP c/o John Franks 2100 McKinney Avenue, Suite 800 Dallas, Texas 75201 Based in Fort Worth, Texas, The Bombay Company Inc., (OTC Bulletin Board: BBAO) -- http://www.bombaycompany.com/-- designs, sources and markets a unique line of home accessories, wall decor and furniture through 384 retail outlets and the Internet in the U.S. and internationally, including Cayman Islands. The company and five of its debtor-affiliates filed for Chapter 11 protection on Sept. 20, 2007 (Bankr. N.D. Tex. Lead Case No. 07-44084). Robert D. Albergotti, Esq., John D. Penn, Esq., Ian T. Peck, Esq., and Jason B. Binford, Esq., at Haynes and Boone, LLP, represent the Debtors. Attorneys at Cooley, Godward, Kronish LLP act as counsel for the Official Committee of Unsecured Creditors. Forshey & Prostok LLP is the Committee's local counsel. As of May 5, 2007, the Debtors listed total assets of US$239,400,000 and total debts of US$173,400,000. LIPPER OFFSHORE: Sets Final Shareholders Meeting for Dec. 14 ------------------------------------------------------------ Lipper Offshore Convertibles Corp. will hold its final shareholders meeting on Dec. 14, 2007, at 2:00 p.m. at: Deloitte, Fourth Floor Citrus Grove, P.O. Box 1787 George Town, Grand Cayman Cayman Islands These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. Lipper Offshore's shareholders agreed on Oct. 30, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Stuart Sybersma Attention: Mervin Solas Deloitte, P.O. Box 1787 George Town, Grand Cayman Cayman Islands Telephone: (345) 949-7500 Fax: (345) 949-8258 NORTH POLE: Will Hold Final Shareholders Meeting on Dec. 14 ----------------------------------------------------------- North Pole Capital Limited will hold its final shareholders meeting on Dec. 14, 2007, at 9:00 a.m. at: Avalon Management Limited Third Floor, Zephyr House Mary Street, P.O. Box 1180 Grand Cayman KY1-1108, Cayman Islands These agenda will be taken during the meeting: 1) accounting of the winding-up process; 2) hearing any explanation thereof; and 3) deciding the manner in which the books, accounts and documentation of the company and of the liquidator should be maintained and subsequently disposed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. North Pole's shareholders decided to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Avalon Management Limited Third Floor, Zephyr House Mary Street, P.O. Box 1180 Grand Cayman KY1-1108, Cayman Islands NZB ABSOLUTE: Sets Final Shareholders Meeting for Dec. 14 --------------------------------------------------------- NZB Absolute Healthcare Master Fund Limited will hold its final shareholders meeting on Dec. 14, 2007, at 10:00 a.m. at: Trident Trust Company (Cayman) Limited Fourth Floor, One Capital Place P.O. Box 847, George Town Grand Cayman, Cayman Islands These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. NZB Absolute's shareholder decided on Feb. 28, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Trident Directors (Cayman) Ltd. Attention: Kimbert Solomon P.O. Box 847, George Town Grand Cayman KY1-1103, Cayman Islands Telephone: (345) 949 0880 Fax: (345) 949 0881 NZB ABSOLUTE HEALTHCARE: Final Shareholders Meeting Is Dec. 14 -------------------------------------------------------------- NZB Absolute Healthcare Fund Limited will hold its final shareholders meeting on Dec. 14, 2007, at 10:00 a.m. at: Trident Trust Company (Cayman) Limited Fourth Floor, One Capital Place P.O. Box 847, George Town Grand Cayman, Cayman Islands These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. NZB Absolute's shareholder decided on Feb. 28, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Trident Directors (Cayman) Ltd. Attention: Kimbert Solomon P.O. Box 847, George Town Grand Cayman KY1-1103, Cayman Islands Telephone: (345) 949 0880 Fax: (345) 949 0881 NZB PRODUCTS: Will Hold Final Shareholders Meeting on Dec. 14 ------------------------------------------------------------- NZB Products (CI) Limited will hold its final shareholders meeting on Dec. 14, 2007, at 10:00 a.m. at: Trident Trust Company (Cayman) Limited Fourth Floor, One Capital Place P.O. Box 847, George Town Grand Cayman, Cayman Islands These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. NZB Products shareholders agreed on Aug. 9, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Trident Directors (Cayman) Ltd. Attention: Kimbert Solomon P.O. Box 847, George Town Grand Cayman KY1-1103, Cayman Islands Telephone: (345) 949 0880 Fax: (345) 949 0881 OTEMACHI CAPITAL: Holding Final Shareholders Meeting on Dec. 14 --------------------------------------------------------------- Otemachi Capital Holdings Inc. will hold its final shareholders meeting on Dec. 14, 2007, at 11:30 a.m. at the registered office of the company. These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. Otemachi Capital's shareholder agreed on Nov. 1, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands PARMALAT SPA: PET Shift Boosts Romanian Juice Sales by 300% ----------------------------------------------------------- Parmalat Romania, a unit of Parmalat S.p.A., posted a 300% hike in sales for its juice and nectar segments for the first nine months of 2007, Mihaela Popescu writes for Ziarul Financiar. Giampaolo Manzonetto, Parmalat Romania's manager, attributed the increase to a shift to PET packaging, particularly on Santal juices, Ziarul relates. "For ice tea, Santal posted a 241% increase during this period, after we launched the PET alternative," Mr. Manzonetto told Ziarul. "This year, the still drinks segment was bolstered by high temperatures in the summer. As a rule, December is the most important month for us, however in 2007, July and August brought us sales double the monthly average," Mr. Manzonetto added. Mr. Manzonetto forecasts sales to reach over EUR14 million this year, up EUR12.1 million, Ziarul relates. The manager also forecasts the unit's operating income to reach EUR3 million by year-end. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than $200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted Parmalat Permanent Injunction. TRISTAR INTERNATIONAL: Final Shareholders Meeting Is on Dec. 14 --------------------------------------------------------------- Tristar International Sales Corp. will hold its final shareholders meeting on Dec. 14, 2007, at 12:00 p.m. at the registered office of the company. These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. Tristar International's shareholders agreed on Sept. 26, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands VF CAYMANS: Sets Final Shareholders Meeting for Dec. 14 ------------------------------------------------------- VF Caymans I will hold its final shareholders meeting on Dec. 14, 2007, at 10:00 a.m. at: Trident Trust Company (Cayman) Limited Fourth Floor, One Capital Place P.O. Box 847, George Town Grand Cayman, Cayman Islands These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. VF Caymans shareholders agreed on May 29, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Trident Directors (Cayman) Ltd. Attention: Kimbert Solomon P.O. Box 847, George Town Grand Cayman KY1-1103, Cayman Islands Telephone: (345) 949 0880 Fax: (345) 949 0881 VF CAYMANS II: Will Hold Final Shareholders Meeting on Dec. 14 -------------------------------------------------------------- VF Caymans II will hold its final shareholders meeting on Dec. 14, 2007, at 10:00 a.m. at: Trident Trust Company (Cayman) Limited Fourth Floor, One Capital Place P.O. Box 847, George Town Grand Cayman, Cayman Islands These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. VF Caymans shareholders agreed on May 29, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Trident Directors (Cayman) Ltd. Attention: Kimbert Solomon P.O. Box 847, George Town Grand Cayman KY1-1103, Cayman Islands Telephone: (345) 949 0880 Fax: (345) 949 0881 ========= C H I L E ========= ELECTRONIC DATA: Share Buyback Won't Impact Rating, Moody's Says ---------------------------------------------------------------- Moody's has commented that Electronic Data System Corp.'s Ba1 long term rating and positive rating outlook are unaffected by the Dec. 4, 2007 announcement that its board has authorized a new US$1 billion share buyback program to be executed over the next eighteen months. The company's large cash balance and Moody's expectations for continued improvements in operating performance and free cash flow generation, as well as management's commitment to limit share repurchases within free cash flow, support the Ba1 rating and positive outlook. Electronic Data remains a leader in Information Technology outsourcing with good organic revenue growth and profitability. The company is expected to maintain strong liquidity from internal and external sources providing good financial flexibility. The company's rating and positive rating outlook are supported by its size and breadth, as measured by its geographic diversification, as well as its ample pretax income and free cash flow. Moody's expects the company's management will be prudent in administering the share buyback program, such that share repurchases are done in accordance with free cash flow generation and may be suspended or slowed if capital is needed to be allocated elsewhere to fund other possible business investment needs. As of the quarter ended September 2007, Electronic Data' cash and short term investments totaled US$3.1 billion as compared to total debt of US$3.3 billion, with the nearest maturity of US$700 million due in October 2009 (US$700 million 7.125% senior notes due). The company also has access to a US$1 billion five year revolving credit facility maturing June 2011. There are no outstanding borrowings under the credit facility at September 2007 and Moody's does not expect any usage over the next twelve months. This revolver allows for drawings without having to represent no material adverse change and has two financial covenants, a leverage ratio of 3.0 times measured by debt to EBITDA and an EBITDA to interest expense coverage ratio of 3.0 times. At Sept. 30, 2007, the company's leverage ratio and interest coverage ratio, as measured under the definitions of the facility, were 1.12 and 13.01, respectively. Moody's expects the company will remain in compliance with these financial covenants for at least the next twelve months. About EDS Corp. Based in Plano, Texas, Electronic Data System Corp. (NYSE: EDS) -- http://www.eds.com/-- is a global technology services company delivering business solutions to its clients. The company founded the information technology outsourcing industry more than 40 years ago. The company delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. EDS has locations in Argentina, Australia, Brazil, China, Chile, Hong Kong, India, Japan, Malaysia, Mexico, Puerto Rico, Singapore, Taiwan, Thailand and South Korea. REVLON INC: Stockholder to Refinance Unit's US$170-Mln Sub. Loan ---------------------------------------------------------------- MacAndrews & Forbes Holdings Inc., Revlon Inc.'s stockholder, which is owned by Ronald O. Perelman, has agreed to provide Revlon Inc.'s operating subsidiary, Revlon Consumer Products Corporation, with a US$170 million Senior Subordinated Term Loan. RCPC will use the proceeds of such term loan to repay in full the US$167.4 million remaining aggregate principal amount of its 8-5/8% Senior Subordinated Notes, which matures on Feb. 1, 2008, and to pay fees and expenses incurred in connection with such transaction. RCPC expects to close and fund the US$170 million Senior Subordinated Term Loan on Feb. 1, 2008. The US$170 million Senior Subordinated Term Loan from MacAndrews & Forbes will bear interest at the rate of 11% per annum, which will be payable quarterly in cash, and will be unsecured and subordinated to RCPC's senior debt, with a final maturity of Aug. 1, 2009. MacAndrews & Forbes beneficially owns approximately 57% of the company's outstanding Class A common stock, 100% of the company's Class B common stock and 60% of the company's combined outstanding shares of Class A and Class B common stock, which together represent approximately 74% of the combined voting power of such shares. About Revlon Inc. Headquartered in New York City, Revlon Inc. (NYSE:REV) -- http://www.revlon.com/-- conducts its business through its direct wholly owned operating subsidiary, Revlon Consumer Products Corporation and its subsidiaries, which manufactures, markets and sells an array of cosmetics, skincare, fragrances, beauty tools, hair color and personal care products. The company is a mass-market cosmetics brand. The company's Latin American operations are located in Argentina, Brazil, Chile, Mexico and Venezuela. * * * The company's Sept. 30, 2007, consolidated balance sheet showed US$882.4 million in total assets and US$2.03 billion in total liabilities, resulting in a US$1.15 billion in total shareholders' deficit. Net loss in the third quarter of 2007 was US$10.4 million, compared with a net loss of US$100.5 million in the third quarter of 2006. =============== C O L O M B I A =============== CORPORACION INTERAMERICA: S&P Affirms BB- Corp. Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'BB-' long- term corporate credit rating on Corporacion Interamericana de Entretenimiento S.A.B. de C.V. y subsidiarias and its 'B+' long- term corporate credit rating on its holding company, Corporacion Interamericana de Entretenimiento S.A.B. de C.V. S&P also affirmed its 'B+' senior unsecured debt rating on the company's notes due 2015. In addition, all ratings were removed from CreditWatch with positive implications, where they were placed on Aug. 17, 2007, after the announcement that the company entered into a Memorandum of Understanding with Codere S. A. (BB-/Watch Neg/--), in which Codere will agree to acquire a 49% interest in CIE Las Americas in exchange for Codere's 50% interest in the existing gaming joint ventures within CIE Las Americas. The outlook is stable. The removal from CreditWatch follows the closing of the exchange with Codere, which resulted in a US$175 million cash payment from Codere to Corporacion Interamericana. The rating affirmation reflects S&P's expectations that although the company's financial policy will continue to favor debt reduction, there is uncertainty regarding the timing and amounts of future debt reductions and particularly the company's discretion over the joint venture's cash flows. The affirmation also reflects S&P's expectation that the new 20% tax on gaming that was recently approved by the Mexican Congress will have an impact on the company's financial performance. Corporacion Interamericana's holding company is rated 'B+' based on its pure holding company nature. It depends on the cash flows-interest income, fees, and dividends-upstreamed from its subsidiaries. The removal of debt at the operating company level would not automatically warrant the equalization of the rating on the holding company's notes with the corporate credit rating on the whole group. Proceeds of the holding company- level debt are largely downstreamed to its operating subsidiaries as loans. The holding company's main source of cash flow is the interest collected from its subsidiaries, which is a more stable revenue stream than dividends. "The ratings reflect CIE's exposure to economic cycles and increasing competition from emerging out-of-home entertainment sources; the need to constantly add more attractions or events to its backlog; the volatile availability of international talent; and the ongoing need to renew venues' concessions and sponsorship contracts. The ratings are also based on the favorable competitive position of its operations due to its vertically integrated structure and operational scale, and its position as the out-of-home industry leader in Mexico," said S&P's credit analyst Fabiola Ortiz. The stable outlook reflects the company's leading position in the Latin America market, as well as management's commitment to improve its financial profile. Significant debt reduction combined with conservative and selective acquisitions would be the main factors in strengthening the company's credit profile. On the other hand, liquidity constraints or changes in the economic or regulatory environment could affect the credit rating. The more evident cause for a rating action would be the company's greater, or lesser, discretion regarding its subsidiaries' cash flows. Corporacion Interamericana de Entretenamiento is a Mexican entertainment company involved in the promotion of live events, including concerts, theatrical productions, amusement parks, betting on foreign sports and number games, trade fairs and exhibitions, as well as sporting and other events. The company's operations are divided into five strategic areas: Corporacion Interamericana Entertainment, which promotes musical concerts, theatrical productions, family shows and other live events; Corporacion Interamericana Las Americas, which centers on the operation and development of the Las Americas Complex in Mexico City, including the Las Americas Hippodrome; Corporacion Interamericana Amusement Parks, which operates nine parks in Mexico and two in Columbia and has also opened the Wannado City Theme Park in Fort Lauderdale, Florida; Corporacion Interamericana Commercial, which attracts and channels customers via advertising and public relations, and Corporacion Interamericana International, which develops live events outside of Mexico, mainly in Argentina, Brazil, Colombia and the United States. SOLUTIA INC: Moody's Assigns B1 Corporate Family Rating ------------------------------------------------------- Moody's Investors Service has assigned a Ba1 rating to a proposed US$400 million, five-year, senior secured asset-based credit facilities of Solutia Inc. Moody's also assigned a B1 rating to a proposed US$1,200 million, seven-year, secured term- loan, a B2 rating to a proposed US$400 million 8-year senior unsecured note, and a corporate family rating of B1. The ratings outlook is stable. The ratings assigned are subject to a complete review by Moody's of the final credit facility, term loan and senior note documents and are also subject to the transactions being closed in a manner and with terms that are substantially identical to those that have been shared with Moody's. US$2.0 billion of proposed debt rated. Assignments: -- Corporate Family Rating, Assigned B1 -- Probability of Default Rating, Assigned B1 -- Speculative Grade Liquidity Rating, Assigned SGL-3 -- Senior Secured Bank Credit Facility, Assigned Ba1 (LGD2, 16%) -- Senior Secured Bank Term Loan, Assigned B1 (LGD4, 54%) -- Senior Unsecured Note, Assigned B2 (LGD4, 69%) The B1 corporate family rating reflects the company's initially high leverage and weak credit metrics along with the material uncertainty surrounding its environmental remediation activities upon exiting bankruptcy. An additional concern centers on the high proportion of Solutia's revenue base that is concentrated in low margin commodity businesses and a material percentage of EBITDA that is derived from a single product with concentrated customers. Following the refinancing and exit from bankruptcy, Solutia will be highly leveraged, particularly after adjusting debt for rent and pensions, which adds some US$60 million and US$180 million, respectively. Moody's projected coverage for fiscal year 2008, as measured by EBITDA/Interest, is only 2.1 times while projected leverage as measured by adjusted Debt/EBITDA is 5.2 times. In Moody's model, adjusted debt is slightly above US$1,900 million at the end of December 2008. Pro forma adjusted debt to book capital would be just above 62% at Dec. 31, 2007. Moody's notes that even with fresh start accounting, tangible net worth is likely to be negative. While Moody's recognizes that good progress has been made in the elimination, classification and/or sharing of environmental, legal and pension liabilities, there remains a noteworthy level of uncertainty as to the ultimate scope of these liabilities, particularly the environmental liabilities. Moody's believes that these environmental liabilities are subject to changing governmental policy and regulations, discovery of unknown conditions, judicial proceedings, method and extent of remediation, existence of other potentially responsible parties and future changes