T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, December 12, 2007, Vol. 8, Issue 246 Headlines A R G E N T I N A CHRYSLER LLC: Top Spokesman Quits Spurring Corporate Realignment CINDIA SA: Seeks for Reorganization Okay in Buenos Aires Court CUVERA AGROPECUARIA: Seeks for Reorganization Okay in Court ESTANCIAS NORAFE: Files for Reorganization in Buenos Aires Court GALVANI SA: Trustee Verifies Proofs of Claim Until Feb. 27, 2008 GUARIBAL SA: Seeks for Reorganization Okay in Buenos Aires Court I RUBINS: Proofs of Claim Verification Deadline Is Feb. 18, 2008 MAYA-QUINTANA: Trustee Verifies Proofs of Claims Until March 28 TAPIZADOS RAMOS: Proofs of Claim Verification Ends on March 13 VELIDI SA: Seeks for Reorganization Okay in Buenos Aires Court * ARGENTINA: Inks Foundation Act; Launches Bank of the South B A R B A D O S ANDREW CORP: Shareholders Okay CommScope Merger Agreement B E L I Z E * BELIZE: S&P Affirms B Sovereign Ratings with a Stable Outlook B E R M U D A LIGHT HOUSE: Supreme Court Hearing Wind-Up Petition on Dec. 14 NCB INSURANCE: Supreme Court To Hear Wind-Up Petition on Dec. 14 SENSU LTD: Supreme Court Will Hear Wind-Up Petition on Dec. 14 B O L I V I A * BOLIVIA: Inks Foundation Act; Launches Bank of the South B R A Z I L ADVANCED MICRO: Brings In Mike Uhler as Vice President BANCO NACIONAL: Extending Credit Line for Dominican Republic BANCO NACIONAL: Inks Cooperation Pact with Ministry of Health CHEMTURA CORP: Creates Office of the Chairman COSAN SA: Closes Down Usina Santa Luiza & Agricola Aquidaban DELPHI CORP: Noteholders Balk at Revised Disclosure Statement DELPHI CORP: Disclosure Statement Is Inadequate, Wilmington Says DELPHI CORP: Revised Plan Disregards ERISA Plaintiffs' Concerns DELPHI CORP: Inks Purchase Deal with Steering Solutions EL PASO: Allows Holders of 25% Stakes to Call Special Meetings GENERAL MOTORS: Canadian Arm to Idle Oshawa Truck Plant in Jan. GENERAL MOTORS: November 2007 Sales in Canada Down 10.2% GOL LINHAS: Pares Profit Forecast Due to Airport Delays MTI GLOBAL: Inks Forbearance Deal with its Principal Lender MYERS INDUSTRIES: GS Capital Moves Sale Closing Date to April 30 UAL CORP: Board Approves US$250-Mln Distribution to Shareholders UAL CORP: Unions Furious Over Shareholder Payouts UNITED AIRLINES: Planned Pay Out Does Not Affect Fitch's Rating * BRAZIL: Inks Foundation Act; Launches Bank of the South C A Y M A N I S L A N D S ANN FUNDING: Sets Final Shareholders Meeting for Dec. 14 ASBT CAYMAN: Holding Final Shareholders Meeting on Dec. 14 ASBT CAYMAN SUB: Final Shareholders Meeting Is on Dec. 14 AVENUE SERIES: Sets Final Shareholders Meeting for Dec. 14 EUROPEAN FINANCIAL: Holds Final Shareholders Meeting on Dec. 14 EUROPEAN FIN'L INVESTMENTS: Shareholders Meeting Is on Dec. 14 FLAGSHIP CLO: Will Hold Final Shareholders Meeting on Dec. 14 GREAT OAK: Will Hold Final Shareholders Meeting on Dec. 14 HIBIYA SEVEN INVESTMENT: Final Shareholders Meeting Is Dec. 14 HIBIYA SEVEN: Will Hold Final Shareholders Meeting on Dec. 14 TRADE LINK: Sets Final Shareholders Meeting for Dec. 14 C H I L E EASTMAN KODAK: Signs Marketing Deal with PGA TOUR ELECTRONIC DATA: Bags Bristol-Myers' US$715-Mln IT Services Deal C O L O M B I A * COLOMBIA: State Firm Issues 56.4MM New Shares at COP7,076 Each E C U A D O R * ECUADOR: Inks Foundation Act; Launches Bank of the South G U A T E M A L A IMAX CORP: Inks Deal with AMC to Install 100 IMAX(R) Systems TECO ENERGY: Completes US$405-Million Sale of TECO Transport H A I T I DYNCORP INT'L: Bags US$49-Mln Construction Project from US Army H O N D U R A S * HONDURAS: Obtains US$350,000 Financing for Biofuel Programs J A M A I C A GOODYEAR TIRE: Forms New Strategic Business Unit M E X I C O ACCELLENT INC: Moody's Junks Corporate Family Rating ADVANCED MARKETING: Third Amended Plan Takes Effect Dec. 4 AMSCAN HOLDINGS: Moody's Junks Rating on US$175-Mln Secured Loan AVNET INC: Unit Inks European Franchise Deal with Maxim EL POLLO LOCO: Court Decision Prompts S&P's Negative CreditWatch EPICORE SOFTWARE: Moody's Ups Ba1 Rating on US$100-Mln Sr. Loan GRUPO GIGANTE: Selling 206 Stores to Organizacion Soriana GRUPO GIGANTE: Supplements Earlier US$260 Million Tender Offer ICONIX BRAND: S&P Assigns BB Rating on US$60 Million Term Loan KEY ENERGY: Acquires Kings Oil Assets for US$45 Million in Cash WENDY'S INTERNATIONAL: Hiring for New Chief Marketing Officer N I C A R A G U A * NICARAGUA: Gets US$32.7MM Loan for Electricity System Project * NICARAGUA: President Ortega Wants Oil Import Nationalized P A R A G U A Y * PARAGUAY: Inks Foundation Act; Launches Bank of the South P U E R T O R I C O BIOVAIL CORP: Lloyd Segal Joins Board of Directors COMPUSA: Acquired by Gordon Bros.; Winds Down Retail Operations GENESCO INC: Faces Class Action Suit in Tennessee Dist. Court MUSICLAND HOLDING: Extends Plan Effective Date Until Jan. 31 OWENS-ILLINOIS INC: Debt Reduction Cues Fitch to Upgrade Ratings SUNCOM WIRELESS: Shareholders OKs T-Mobile & Tango Merger Plan UNIVISION COMM: Names Tonia O'Connor as Exec. VP for Marketing S A I N T V I N C E N T ST. VINCENT: Moody's Assigns Preliminary B1 Sovereign Ratings V E N E Z U E L A NORTHWEST AIR: Won't Complete Midwest Acquisition by January 31 PETROLEOS DE VENEZUELA: Forming Joint Venture for Guara & Diez * VENEZUELA: Launches Banco del Sur; Inks Foundation Act * VENEZUELA: Belarus Neft To Operate Three More Oilfields - - - - - ================= A R G E N T I N A ================= CHRYSLER LLC: Top Spokesman Quits Spurring Corporate Realignment ---------------------------------------------------------------- Jason H. Vines, Chrysler LLC's Vice President-Communications has elected to resign and, therefore, the company is disclosing a realignment of its Corporate Communications Department. "Now that Chrysler is an independent company again, we are taking every opportunity to realign functions in a more holistic manner that allows us to more effectively drive company strategy," Bob Nardelli, Chairman and CEO, said. "As part of this realignment, the corporate communications function will now report to Nancy Rae, Senior Vice President-Human Resources." Several executives in the corporate communications department will report directly to Ms. Rae. David Barnas, who has been in the corporate communications department for six years, will be responsible for internal and corporate communications, which includes dealing with the news media. Mr. Vines' resignation is effective immediately, although he has agreed to remain at Chrysler through the end of December to assist in the transition. "Jason has served Chrysler well, and we are very grateful for his many contributions over the years," Mr. Nardelli said. Mr. Vines began his career at Chrysler Corporation in 1983, serving first as an economics researcher in the Labor Relations Department and later through various assignments in Employee Communications and Public Relations. He left Chrysler in 1998 and became Vice President-Communications for Nissan North America. In February 2000, he was appointed Vice President- Communications for Ford Motor Company. He returned to Chrysler in 2003 as Vice President-Communications. "This was a tough decision, considering the many talented, longtime friends I have throughout the company," Mr. Vines said. "I wish them all the best and will continue to root for them." Mike Aberlich, who has served the company as Director, Corporate and Internal Communications, also announced last week that he has decided to retire at the end of this year. "We thank Mike for his dedication and contributions to the company," Mr. Nardelli added. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 11, 2007, Standard & Poor's Ratings Services revised its recovery rating on Chrysler's US$2 billion senior secured second-lien term loan due 2014. The issue-level rating on this debt remains unchanged at 'B', and the recovery rating was revised to '3', indicating an expectation for meaningful (50% to 70%) recovery in the event of a payment default, from '4'. CINDIA SA: Seeks for Reorganization Okay in Buenos Aires Court -------------------------------------------------------------- Cindia S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Cindia to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Cindia S.A. Ciudad de la Paz 306 P.B. 4 Buenos Aires, Argentina CUVERA AGROPECUARIA: Seeks for Reorganization Okay in Court ----------------------------------------------------------- Cuvera Agropecuaria S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Cuvera Agropecuaria to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Cuvera Agropecuaria S.A. Tandil 2746 Buenos Aires, Argentina ESTANCIAS NORAFE: Files for Reorganization in Buenos Aires Court ---------------------------------------------------------------- Estancias Norafe del Salado S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Estancias Norafe to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Estancias Norafe del Salado S.A. Ciudad de la Paz 306 P.B. 4 Buenos Aires, Argentina GALVANI SA: Trustee Verifies Proofs of Claim Until Feb. 27, 2008 ---------------------------------------------------------------- Marcela Adriana Mazzoni, the court-appointed trustee for Galvani S.A.'s reorganization proceeding, verifies creditors' proofs of claim until Feb. 27, 2008. Ms. Mazzoni will present the validated claims in court as individual reports on April 15, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Galvani 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 Galvani's accounting and banking records will be submitted in court on May 28, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Nov. 10, 2008. The trustee can be reached at: Marcela Adriana Mazzoni Viamonte 1337 Buenos Aires, Argentina GUARIBAL SA: Seeks for Reorganization Okay in Buenos Aires Court ---------------------------------------------------------------- Guaribal S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Guaribal to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Guaribal S.A. Ciudad de la Paz 306 P.B. 4 Buenos Aires, Argentina I RUBINS: Proofs of Claim Verification Deadline Is Feb. 18, 2008 ---------------------------------------------------------------- Eduardo Ruben Pronsky, the court-appointed trustee for I. Rubins S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 18, 2008. Mr. Pronsky will present the validated claims in court as individual reports on April 1, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by I. Rubins 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 I. Rubins' accounting and banking records will be submitted in court on May 15, 2008. Mr. Pronsky is also in charge of administering I. Rubins' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: I. Rubins S.A. Jeronimo Salguero 1697 Buenos Aires, Argentina The trustee can be reached at: Eduardo Ruben Pronsky Parana 480 Buenos Aires, Argentina MAYA-QUINTANA: Trustee Verifies Proofs of Claims Until March 28 --------------------------------------------------------------- Lidia Roxana Martin, the court-appointed trustee for Maya- Quintana S.A.'s reorganization proceeding, verifies creditors' proofs of claim until March 28, 2008. Ms. Martin will present the validated claims in court as individual reports on May 7, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Maya-Quintana 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 Galvani's accounting and banking records will be submitted in court on June 19, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Dec. 5, 2008. The debtor can be reached at: Maya-Quintana S.A. Coronel Pagola 4170/4172 Buenos Aires, Argentina The trustee can be reached at: Lidia Roxana Martin Avenida Cordoba 1352 Buenos Aires, Argentina TAPIZADOS RAMOS: Proofs of Claim Verification Ends on March 13 -------------------------------------------------------------- Nestor Raul Rozenberg, the court-appointed trustee for Tapizados Ramos S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until March 13, 2008. Mr. Rozenberg will present the validated claims in court as individual reports on April 30, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Tapizados Ramos 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 Tapizados Ramos' accounting and banking records will be submitted in court on June 12, 2008. Mr. Rozenberg is also in charge of administering Tapizados Ramos' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Nestor Raul Rozenberg Mansilla 3696 Buenos Aires, Argentina VELIDI SA: Seeks for Reorganization Okay in Buenos Aires Court -------------------------------------------------------------- Velidi S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Velidi to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Velidi S.A. Ciudad de la Paz 306 P.B. 4 Buenos Aires, Argentina * ARGENTINA: Inks Foundation Act; Launches Bank of the South ------------------------------------------------------------ The national leaders of Argentina, Bolivia, Brazil, Ecuador, Paraguay and Venezuela have launched Sunday the new Banco del Sur development bank, according to published reports. The bank's launching was initially set for June 26 but was moved due to capitalization issues. According to the Financila Times, the bank has about US$7 billion in capital, which came from the founding members. Colombia and Chile has not entered the venture. The bank, advocated by Venezuelan President Hugo Chavez, will be established to rival the services offered by the International Monetary Fund and the World Bank, on much lower rates and better financing conditions. Critics called the bank a waste of effort given the established presence of the institutions, like the IMF and the Word Bank, which it wants to compete with. The finer details of the services that the bank will be providing still need to be ironed out by the finance ministers of the countries involved. The ministers have two months to translate into operations what have been agreed on paper, the FT says. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 =============== B A R B A D O S =============== ANDREW CORP: Shareholders Okay CommScope Merger Agreement --------------------------------------------------------- Andrew Corporation's shareholders, at a special meeting, has approved the company's merger agreement with CommScope Inc. Andrew and CommScope now have received all necessary approvals and clearances to complete the transaction, which was announced June 27. Andrew currently expects the merger to close on Dec. 27, subject to customary closing conditions. About CommScope Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) -- http://www.commscope.com/-- is into infrastructure solutions for communication networks. CommScope's structured cabling systems for business enterprise applications includes SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands. It is also the manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including China, India, Italy, Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. * * * As reported in the Troubled Company Reporter-Latin America Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its ratings on Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for the company. =========== B E L I Z E =========== * BELIZE: S&P Affirms B Sovereign Ratings with a Stable Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'B' long- and 'B' short-term sovereign credit ratings on Belize. The outlook is stable. According to S&P's credit analyst Olga Kalinina, the ratings on Belize balance the government's large debt against its improved amortization and cost profiles. "The debt exchange launched by the government on Dec. 18, 2006, and concluded on Feb. 20, 2007, affected 50% of Belize's total public debt," said Ms. Kalinina. "The participation rate in the restructuring was high, with over 95% of eligible claims exchanged by year-end 2007," she added. Ms. Kalinina explained that while the restructuring did not reduce the stock of the government's debt, which stands at 85% of GDP in 2007, it lengthened its maturity significantly and decreased debt interest payments. Interest costs dropped to 5.5% of GDP in 2007 from 7% in 2006, and should decrease further to 4.3% of GDP in 2008. The total savings from the restructuring are estimated at US$481.5 million between 2007 and 2015. "The stable outlook reflects S&P's expectation that the government has the ability to improve its financial position and reduce debt improved following the debt restructuring," Ms. Kalinina said. "Specifically, the reduced fiscal and external liquidity pressures following the debt exchange provided the government with a favorable time frame to tighten its fiscal discipline, improve debt management, and enhance the transparency of its finances," she added. If the government benefits from this important momentum and addresses its fiscal weaknesses, the high debt level should decline. "This positive scenario, however, must be matched by similar strides in boosting the quality and transparency of policymaking to ensure the continuity of fiscal discipline and thereby improve creditworthiness," noted Ms. Kalinina. "On the other hand, if the government does not capitalize on the benefits of the current situation and does not improve its fiscal policies and management, the loss of momentum, especially amid a more challenging external situation, could negatively affect the ratings," she concluded. ============= B E R M U D A ============= LIGHT HOUSE: Supreme Court Hearing Wind-Up Petition on Dec. 14 -------------------------------------------------------------- The Supreme Court of Bermuda will hear Lighthouse Insurance Company Limited's wind-up petition on Dec. 14, 2007, at 9:30 a.m. The Bermuda Monetary Authority filed the wind-up petition on behalf of Lighthouse Insurance to the Supreme Court on Nov. 13, 2007. Any creditor or contributory of Lighthouse Insurance who wants to support or oppose the making of an order on the wind-up petition may appear during the hearing by himself or his counsel. Interested parties were given until 4:00 p.m. at Dec. 13, 2007, to send to Attride-Stirling & Woloniecki -- the attorneys to the petitioner -- a notice in writing of his intention so to do, including his name and address of the person, or, if a firm, the name and address of the firm, and must be signed by the person or firm, or his or their attorney. Attride-Stirling & Woloniecki will supply a copy of the petition on payment of the regulated charge. The attorneys for the petitioner can be reached at: Attride-Stirling & Woloniecki Crawford House 50 Cedar Avenue, Hamilton HM11 Bermuda NCB INSURANCE: Supreme Court To 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 filed the wind-up petition on behalf of NCB Insurance to the Supreme Court on Nov. 13, 2007. Any creditor or contributory of NCB Insurance who wants to support or oppose the making of an order on the wind-up petition may appear during the hearing by himself or his counsel. Interested parties were given until 4:00 p.m. at Dec. 13, 2007, to send to Attride-Stirling & Woloniecki -- the attorneys to the petitioner -- a notice in writing of his intention so to do, including his name and address of the person, or, if a firm, the name and address of the firm, and must be signed by the person or firm, or his or their attorney. Attride-Stirling & Woloniecki will supply a copy of the petition on payment of the regulated charge. The attorneys for the petitioner can be reached at: Attride-Stirling & Woloniecki Crawford House 50 Cedar Avenue, Hamilton HM11 Bermuda SENSU LTD: Supreme 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 filed the wind-up petition on behalf of Sensu to the Supreme Court on Nov. 13, 2007. Any creditor or contributory of Sensu who wants to support or oppose the making of an order on the wind-up petition may appear during the hearing by himself or his counsel. Interested parties were given until 4:00 p.m. at Dec. 13, 2007, to send to Attride-Stirling & Woloniecki -- the attorneys to the petitioner -- a notice in writing of his intention so to do, including his name and address of the person, or, if a firm, the name and address of the firm, and must be signed by the person or firm, or his or their attorney. Attride-Stirling & Woloniecki will supply a copy of the petition on payment of the regulated charge. The attorneys for the petitioner can be reached at: Attride-Stirling & Woloniecki Crawford House 50 Cedar Avenue, Hamilton HM11 Bermuda ============= B O L I V I A ============= * BOLIVIA: Inks Foundation Act; Launches Bank of the South ---------------------------------------------------------- The national leaders of Argentina, Bolivia, Brazil, Ecuador, Paraguay and Venezuela have launched Sunday the new Banco del Sur development bank, the Financial Times reports. The bank's launching was initially set for June 26 but was moved due to capitalization issues. According to the FT, the bank has about US$7 billion in capital, which came from the founding members. Colombia and Chile has not entered the venture. The bank, advocated by Venezuelan President Hugo Chavez, will be established to rival the services offered by the International Monetary Fund and the World Bank, on much lower rates and better financing conditions. Critics called the bank a waste of effort given the established presence of the institutions, like the IMF and the Word Bank, which it wants to compete with. The finer details of the services that the bank will be providing still need to be ironed out by the finance ministers of the countries involved. The ministers have two months to translate into operations what have been agreed on paper, the FT says. * * * As reported in the Troubled Company Reporter-Latin America on Nov 6, 2007, Standard & Poor's Ratings Services revised its outlook on the Republic of Bolivia to stable from negative. S&P also said that it affirmed its 'B-' long-term and 'C' short-term credit ratings on the sovereign. =========== B R A Z I L =========== ADVANCED MICRO: Brings In Mike Uhler as Vice President ------------------------------------------------------ Advanced Micro Devices Inc. reported that Mike Uhler, former CTO of MIPS, has joined the company as its first vice president of Accelerated Computing. Mr. Uhler has extensive experience developing advanced chip architectures and software for designs that combine multiple intellectual property blocks, as well as a deep understanding of customer requirements across a range of applications. "We are excited to have Mike join AMD just as chip architectures, AMD software development and third-party development of related technologies are converging around our Accelerated Computing vision," said Phil Hester, senior vice president and chief technology officer for AMD. "Customers are asking for design innovations that apply hardware and software more directly toward a set of workloads, rather than a one-size- fits-all approach. Mike furthers AMD's design leadership by applying that philosophy to our Accelerated Computing vision and I welcome him aboard." AMD's Accelerated Computing research and development (R&D) programs focus on accelerating specific computing tasks and increasing overall platform performance-per-watt through the use of discrete co-processors and integration of on-chip accelerator cores. "There is an important shift occurring in chip hardware and software to address the simultaneous changes in both the types of information being processed and the amount of data available for processing," said Mr. Uhler. "As a technologist, tackling these fundamental challenges inspires me and I look forward to working with AMD, its technology partners and its customers to address them." AMD's vision for Accelerated Computing, unveiled at the close of AMD's acquisition of ATI in 2006, calls for the increasing use of accelerators to offload certain workloads from the CPU and process them at higher speeds and efficiency levels. This balancing of workload computation across multiple chips and cores, allowing each to do what it does best, stands to dramatically improve overall system performance and energy- efficiency, while also enabling systems to be highly optimized for a specific set of tasks based on the unique priorities of the particular end-user segment. As vice president of Accelerated Computing at AMD, Uhler will apply a strong leadership background in a technology career spanning nearly 30 years. Prior to his role as CTO of MIPS, he served in various architecture and engineering roles at MIPS, as Silicon Graphics Inc.'s, director of engineering, and as a senior consulting engineer at Digital Equipment Corp. Mr. Uhler has been issued 34 patents in the areas of computer architecture and design, and holds a M.S. in computer science and a B.S. in electrical engineering from the University of Arizona. About Advanced Micro Devices Inc. Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. -- http://www.amd.com/-- (NYSE: AMD) designs and manufactures microprocessors and other semiconductor products. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. * * * As reported in the Troubled Company Reporter on Aug. 14, 2007, Standard & Poor's Ratings Services affirmed its B/Negative/-- corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. At the same time, S&P assigned its 'B' rating to the company's US$1.5 billion 5.75% senior convertible notes due 2012, and raised the rating on the company's existing senior unsecured debt to 'B' from 'B-', because the company no longer has secured debt in its capital structure. As reported in the Troubled Company Reporter on Aug. 13, 2007, Fitch Ratings has assigned a 'CCC+/RR6' rating to Advanced Micro Devices Inc.'s private placement of US$1.5 billion 5.75% convertible senior notes due 2012. Fitch also affirmed the company's Issuer Default Rating at 'B'; and Senior unsecured debt at 'CCC+/RR6'. In July 2007, Standard & Poor's Ratings Services affirmed its 'B/Negative/--' corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. At the same time, Standard & Poor's lowered the rating on the company's 7.75% senior notes due 2012 to 'B-' from 'BB-', which is now rated the same as the company's other senior unsecured notes, reflecting release of the collateral securing the issue. BANCO NACIONAL: Extending Credit Line for Dominican Republic ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social will extend a credit line for the Dominican Republic for the construction of infrastructure projects in areas affected by tropical storm Noel, Dominican Today reports. Ambassador Ronaldo Edgar Dunlop told Dominican Today that he received information that Banco Nacional concludes the proceedings to begin disbursing the US$110-million loan for the construction of an aqueduct in Samana. One of Brazilian President Inacio Lula Da Silva's main advisers said a meeting would be held with the head of Banco Nacional to negotiate the extension of the line of credit for the Dominican Republic, Dominican Today relates, citing Ambassador Dunlop. Ambassador Dunlop commented to Dominican Today, "The first interested in extending that line of credit are the Brazilian companies themselves who are operating already in this country, because the truth is that Dominican Republic's financial credibility abroad is very good." Banco Nacional's credits are to Brazilian firms. However, Dominican President Leonel Fernandez spoke with President Lula about his interest to access Banco Nacional loans, Dominican Today says, citing Ambassador Dunlop. Brazilian firms Andrade Gutierrez and Odebrecht are in the Dominican Republic constructing projects like the Northwest Line Aqueduct and the dams at Pinalito and Las Placetas, Ambassador Dunlop told Dominican Today. "President Fernandez has always been interested in an increasingly stronger relation with Brazil," Ambassador Dunlop commented to Manuel Jimenez at En 1 Hora. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007, respectively. BANCO NACIONAL: Inks Cooperation Pact with Ministry of Health ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social's President, Luciano Coutinho, has signed an agreement for technical cooperation with the Ministry of Health for the implementation of measures, programs and studies aimed at the development of the Industrial Health Complex throughout the Brazilian territory. The document was signed Dec. 5 during the launching of PAC da Saude in Brasilia by President Luiz Inacio Lula da Silva, creating a new policy for the sector. In September this year, BNDES renewed the Program for Support to the Development of the Pharmaceutical Productive Chain [Programa de Apoio ao Desenvolvimento da Cadeia Produtiva Farmaceutica] - Profarma, renaming it as Program for Support to the Development of the Industrial Health Complex, with a BRL$3 billion budget until 2012. The major differential of the new program in relation to the previous one is that the current one will promote integration between Industrial Policies and the National Health Policy. For this purpose, Profarma foresees joint actions between BNDES and the Ministry of Health in their subprograms Profarma -- Innovation and Profarma -- Public Producers. The cooperation agreement between those two institutions will allow implementation of these actions. Profarma foresees, in its subprogram Profarma -- Innovation, support to research and development projects that represent a considerable technological challenge and are priorities for the Ministry of Health. BNDES will provide financial support, while the Ministry of Health will define the list of products considered a priority for the National Policy in this sector. The ministry is also analyzing a governmental acquisition mechanism, which allows the government to acquire products developed with BNDES support. The Industrial Health Complex stands out as a target to be achieved by public sector policies, since it shows market flaws and for generating products, which are essential for the well- being of the population, as well as for relying on high technology and innovative capacity. BNDES has actively collaborated in the discussion process, elaboration and the execution of the industrial health complex structure and the granting of financings through Profarma is considered one of the pillars for its sustainability. The cooperation agreement between BNDES and the Ministry of Health also encompasses the subprogram Profarma Public Producers, which is structured in two phases. The first one consists of contracting a study to elaborate a strategic plan for insertion of public producers into the National Health System; promoting increased efficiency of public producers individually and jointly; as well as of the public system for purchasing and distributing products related to health. For this purpose, it is foreseen the creation of a mixed work force between BNDES and the Ministry of Health for definition of the reference term, contracting and monitoring of the services provided by the consultancy firm contracted. The second phase consists of the implementation of the results obtained in the first phase, including: -- investments in the productive capacity and adequacy to regulatory standards; -- modernization or improvements to the organizational, administrative, management, commercialization, distribution and logistics structure of public producers; -- support to innovative projects and to the innovative public health infrastructure in the country. In this phase it is foreseen the participation of the Ministry of Health in the analysis of projects, and it should pre-approve all projects submitted to BNDES. 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. CHEMTURA CORP: Creates Office of the Chairman --------------------------------------------- Chemtura Corporation has formed the Office of the Chairman, designed to increase organizational focus, speed decision-making and improve execution. The Office of the Chairman will be comprised of Chairman and Chief Executive Officer Robert L. Wood and three direct reports: -- Stephen Forsyth, who remains in his current position as executive vice president , chief financial officer and treasurer, responsible for all financial functions, Strategy and New Business Development, and Information Technology; -- Robert Wedinger, Ph.D., who has been named chief business officer, responsible for Chemtura's commercial organization. Chemtura's four businesses - Polymer Additives, Performance Specialties, Crop and Consumer Products will report to Wedinger. Mr. Wedinger, who was serving as group president of Performance Specialties, will retain his Performance Specialties role in addition to his new chief business officer responsibilities; and -- David Dickey, who has been named chief functional and services officer, responsible for all non-Finance functions, including logistics and customer care, strategic manufacturing, human resources, legal and procurement. The general counsel retains a direct reporting relationship to the chairman for regulatory and compliance issues. "This is a natural progression of the restructuring we announced in April," said Mr. Wood. "By providing more direct leadership to the commercial organization and functions, we believe we can speed decision making and better position ourselves to deliver results." About Chemtura Corp. Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:CEM) -- http://www.chemtura.com/-- is a global manufacturer and marketer of specialty chemicals, crop protection, and pool, spa and home care products. The company has approximately 6,400 employees around the world and sells its products in more than 100 countries. The company has facilities in Singapore, Australia, China, Hong Kong, India, Japan, South Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany, Mexico, and The United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on May 18, 2007, Moody's Investors Service lowered Chemtura Corporation's ratings: -- Corporate Family Rating: Ba2 from Ba1 -- Senior notes, US$500 million due 2016: Ba2 from Ba1; LGD4 (53%) -- Senior Unsecured Notes, US$150 million due 2026: Ba2 from Ba1; LGD4 (53%) -- Senior Unsecured Notes, US$400 million due 2009: Ba2 from Ba1; LGD4 (53%) COSAN SA: Closes Down Usina Santa Luiza & Agricola Aquidaban ------------------------------------------------------------ Cosan SA said in a statement that it, along with Sao Martinho and Santa Cruz, has shut down joint subsidiaries Usina Santa Luiza and Agricola Aquidaban. Cosan commented to Business News Americas, "The purpose of the decision is to maximize operational and managerial synergies for the controlling groups." BNamericas notes Sao Martinho, Cosan and Santa Cruz hold 41.6%, 33.3% and 25.0% stakes in the mills respectively. Cosan told BNamericas that Santa Luiza has crushing capacity of about 1.8 million tons of sugarcane per harvest. Cane that Usina Santa Luiza used to process "will be rerouted to the industrial facilities of the controlling groups proportionate to their capital interest," as of the 2008-2009 harvest. Cosan's Bonfim unit will then get about 600,000 tons of cane that Santa Luiza used to handle. Sao Martinho will receive 750,000 tons of cane at one of its mills, BNamericas relates. "Aquidaban's land leasing contracts and deals with cane suppliers will be divided proportionally among the controlling groups," Cosan, Sao Martinho, and Santa Cruz told BNamericas. Headquartered in Sao Paulo, Brazil, Cosan S.A. Industria e Comercio, is the third largest sugar producer in the world. In 2004/2005 it crushed more than 26 million tons of sugar cane in fourteen mills located in the Central South region of Brazil, with sugar sales of 2.3 million tons and ethanol sales of 825 million liters. * * * As of February 2007, Cosan carries Moody's Ba2 global local currency and foreign currency ratings and Standard and Poor's BB corporate credit rating. DELPHI CORP: Noteholders Balk at Revised Disclosure Statement ------------------------------------------------------------- Eight holders of Senior Notes in Delphi Corp. asks the United States Bankruptcy Court for the Southern District of New York to disapprove the revised Disclosure Statement explaining the Debtors' Joint Chapter 11 Plan of Reorganization filed on Dec. 3, 2007. As reported in the Troubled Company Reporter on Dec. 6, 2007, the Debtors 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. Holders of Delphi Corp. Senior Notes: -- Caspian Capital Advisors, LLC; -- Castlerigg Master Investments Ltd.; -- CR Intrinsic Investors, LLC; -- Davidson Kempner Capital Management LLC; -- Elliott Associates, L.P.; -- Everest Capital Limited; -- Nomura Corporate Research & Asset Management, Inc.; -- Northeast Investors Trust; -- Sailfish Capital Partners, LLC; and -- Whitebox Advisors, LLC, maintain that the Disclosure Statement should not be approved because the Joint Plan of Reorganization: * classifies dissimilar claims in the same class in violation of Section 1122(a) of the Bankruptcy Code; * provides different treatment to claims classified together within a single class in violation of Section 1123(a)(4); * does not enforce the subordination agreement between the Senior Notes and TOPrS Claims by lumping the claims in one class in violation of Section 510(a); and * is premised on a substantive consolidation of the Debtors, solely for voting and distribution purposes, that the Debtors are unable to justify. "None of these issues have been addressed by the most recent amendment to the Disclosure Statement filed by the Debtors on Dec. 3, 2007," Allan S. Brilliant, Esq., at Goodwin Procter LLP, in New York, contends. Mr. Brilliant argues that although the Debtors have attempted to provide a more fulsome disclosure regarding several aspects of the Plan, the information in the current proposed Disclosure Statement remains wholly inadequate to enable creditors to make an informed judgment about the Plan as required by Section 1125. The Senior Noteholders maintain that the Disclosure Statement lacks adequate disclosure and information: -- on the implications of the value of the New Common Stock and the range of recoveries afforded to General Unsecured Creditors under the Plan; -- contained in the valuation analysis; -- on the economic interests and involvement of the Plan Investors and General Motors Corp. in "negotiating" the Plan; -- on the Plan's proposed treatment of intercreditor rights; -- on the potential impact to creditors of the Debtors' present lack of committed exit financing; -- regarding substantive consolidation; -- on the GM Claim; -- on releases under the Plan; and -- on the Multi-District Litigation Settlements between the Debtors and plaintiffs in the consolidated Securities Litigation. 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. 101; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Disclosure Statement Is Inadequate, Wilmington Says ---------------------------------------------------------------- Wilmington Trust Company, the indenture trustee for US$2 billion in senior notes and debentures issued by Delphi Corp., asks the U.S. Bankruptcy Court for the Southern District of New York to disapprove the revised Disclosure Statement explaining the Debtors' Joint Chapter 11 Plan of Reorganization filed on Dec. 3, 2007, unless it is supplemented with adequate information. Wilmington Trust further asks the Court to direct the Debtors to reclassify the Senior Debt and the TOPrS Claims in, and to vote in, different classes. Wilmington Trust contends that the Disclosure Statement, as amended on Dec. 3, 2007, continues to lack "adequate information" within the meaning of Section 1125(a) of the Bankruptcy Code regarding issues that are critical to creditors' ability to make an intelligent and informed evaluation of the Joint Plan of Reorganization. The Debtors' statement that "the Plan continues to provide for full recoveries for unsecured creditors at Plan value" is misleading, Edward M. Fox, Esq., at Kirkpatrick & Lockhart Preston Gates Ellis LLP, in New York, asserts. The concept of "Plan value" is never clearly explained and could lead creditors to believe that they are being paid in full when, based on Rothschild's midpoint valuation, they will receive only an 89.2% recovery, he argues. In order to avoid any confusion on that issue and other issues, Wilmington Trust proposes, inter alia, that the Debtors add after the phrase "for unsecured creditors at Plan Value" this language: ", a negotiated enterprise value of US$13.3 billion ("Plan Value") for the Debtors, which is US$600 million higher than the US$12.7 billion midpoint valuation (the Midpoint Valuation") of the Debtors' enterprise value as determined by the Debtors' financial advisors, and which may not be equivalent to the Debtors' actual enterprise value. At the Midpoint Valuation, unsecured creditors will receive a recovery equal to 89.2% of their allowed claims. The Plan also provides . . . ." 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. 101; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Revised Plan Disregards ERISA Plaintiffs' Concerns --------------------------------------------------------------- The lead plaintiffs in the consolidated securities class action entitled In re Delphi Corp. Securities Litigation, Master Case No. 05-md-1725 (GER) (E.D.Mich.) pending before the U.S. District Court for the Eastern District of Michigan, inform the Bankruptcy Court that the Dec. 3, 2007 versions of the Debtors' Disclosure Statement and Joint Plan of Reorganization still do not address all of their concerns. The lead plaintiffs, as well as the Employee Retirement Income Security Act plaintiffs in the Securities Litigation, had agreed to reduce the allowed amount of the Section 510(b) Note Claims and the Section 510(b) Equity Claims under the Plan from US$204 million to US$179 million in exchange for the Debtors' cooperation in the monetization of the Allowed Amount. The lead plaintiffs are the holders of Section 510(b) Note Claims while the ERISA plaintiffs are the holders of the Section 510(b) Equity Claims. The Lead Plaintiffs agreed that the claim reduction will be deemed a non-material modification to their Multi-District Litigation Settlement with the Debtors. The Debtors disclosed the Claim Reduction in their Dec. 3 Disclosure Statement. On Dec. 4, 2007, the District Court tentatively approved the modification of the parties' MDL Settlement subject to certain notice requirements intended to allow class members the opportunity to review and take a position on the proposed modification, Michael S. Etkin, Esq., at Lowenstein Sandler PC, in New York, informs the Bankruptcy Court. Nonetheless, the lead plaintiffs and the Debtors have yet to reach agreement on certain of the Lead Plaintiffs' proposed revisions to the Disclosure Statement and Plan involving third- party releases and conditions to the Plan's effectiveness, Mr. Etkin relates. The lead plaintiffs, he says, have provided the Debtors with suggested language that will resolve their dispute and discussions between the parties are continuing. The lead plaintiffs consist of Teachers' Retirement System of Oklahoma, Public Employees' Retirement System Of Mississippi, Raiffeisen Kapitalanlage-Gesellschaft m.b.H., and Stichting Pensioenfonds ABP. 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. 101; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Inks Purchase Deal with Steering Solutions ------------------------------------------------------- Delphi Corporation has entered into a master sale and purchase agreement with Steering Solutions Corporation, a wholly owned entity of Platinum Equity, LLC, for the sale of its global steering and halfshaft businesses. In addition to the master sale and purchase agreement, Delphi has simultaneously entered into a transaction facilitation agreement pursuant to which GM is making certain commitments to Delphi in connection with the sale. Pursuant to the requirements of the Bankruptcy Code, Delphi filed a motion with the U.S. Bankruptcy Court for the Southern District of New York seeking approval of the master purchase and sale agreement and the GM transaction facilitation agreement and requesting a bidding procedures hearing on Dec. 20, 2007. Following entry of an order approving bidding procedures, parties interested in purchasing Delphi's global steering and halfshaft business would have an opportunity to submit a binding bid. If Delphi receives any qualified bids for its steering and halfshaft business, it would conduct an auction and sell the steering and halfshaft business to the party submitting the highest or otherwise best bid. Following the completion of the bidding procedures process, a final sale hearing is anticipated to occur in February 2008. The final sale of Delphi's global steering and halfshaft businesses and the transaction facilitation agreement are subject to the approval of the U.S. Bankruptcy Court. As outlined in the court filing, the master sale and purchase agreement covers the sale of substantially all of Delphi's global steering and halfshaft businesses, including manufacturing operations, intellectual property, customer and supplier contracts, and interests in joint ventures as well as the transfer of the global employee team to the new company. It is anticipated that the senior leadership of the global business will also transfer to the buyer. All parties remain committed to ensuring a smooth transition for all customers. 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. EL PASO: Allows Holders of 25% Stakes to Call Special Meetings -------------------------------------------------------------- The board of directors of El Paso Corporation has voted to amend the company's by-laws to modify the provisions regarding the calling of special meetings. The amendment permits stockholders who own at least 25% of El Paso's outstanding common stock to call a special meeting of stockholders. Previously, a special meeting of stockholders could be called only by a majority of the board of directors, the chairman of the board, the chief executive officer, or the president. A copy of the amended by-laws and corporate governance guidelines is available in El Paso's Web site. Headquartered in Houston, Texas, El Paso Corporation (NYSE: EP) -- http://www.elpaso.com/-- is an energy company that provides natural gas and related energy products. The company owns North America's interstate pipeline system, which has approximately 55,500 miles of pipe. It also owns approximately 470 billion cubic feet of storage capacity and a liquefied natural gas import facility with 806 million cubic feet of daily base load send out capacity. El Paso's exploration and production business is focused on the exploration for and the acquisition, development and production of natural gas, oil and natural gas liquids in the United States, Brazil and Egypt. It operates in three business segments: Pipelines, Exploration and Production and Marketing. It also has a Power segment, which holds its remaining interests in international power plants in Brazil, Asia and Central America. * * * As reported in the Troubled Company Reporter on Nov. 20, 2007, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit ratings on El Paso Corp. and subsidiaries. S&P said the outlook remains positive. GENERAL MOTORS: Canadian Arm to Idle Oshawa Truck Plant in Jan. --------------------------------------------------------------- General Motors of Canada Ltd. disclosed plans of temporarily shuttering its truck assembly plant in Oshawa, Ontario, for two weeks in January 2008, cutting roughly 8,800 truck output, various sources report. The move is a result of the slow sales of Chevrolet Silverados and GMC Sierras in the United States. As reported in the Troubled Company Reporter on Dec. 4, 2007, after three consecutive monthly increases, General Motors Corp. dealers in the United States delivered 263,654 vehicles in November, down 11% compared with a year ago, reflecting continuing reductions in daily rental sales and softening industry demand. About General Motors of Canada Headquartered in Oshawa Ontario, General Motors of Canada Ltd. manufactures vehicles, vehicle powertrains, and markets the full range of General Motors vehicles and related services through 743 dealerships and retailers across Canada. Vehicles sold through this network include Chevrolet, Buick, Pontiac, GMC, Saturn, Hummer, Saab and Cadillac. GM of Canada employs more than 19,000 people nationwide. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. GENERAL MOTORS: November 2007 Sales in Canada Down 10.2% -------------------------------------------------------- For November 2007, General Motors of Canada Ltd. dealers delivered a total of 28,071 vehicles, down 10.2% from the same month last year. "November was a soft month overall for industry retail sales," Marc Comeau, GM of Canada's vice-president of sales, service, and marketing, said. "At GM we continue to see strength from our recently launched products like the Saturn Outlook, GMC Acadia and Buick Enclave crossover utilities and the Cadillac CTS. The new Chevrolet Malibu and Malibu Hybrid are creating a lot of buzz with impressive product reviews and strong customer acceptance. "We have seen some early success from our year-end Wish & Win promotion, showing customers that the best value on the industry's best vehicles can be found at their local GM Canada dealership." Sales Highlights Mid Utilities were up a combined 67.4% driven by the continued strength of the all-new family of crossovers including the Saturn Outlook, GMC Acadia and Buick Enclave. GMs smaller, fuel-efficient cars continue to perform well with the Chevrolet Aveo and Pontiac Wave up a combined 16.8% and the Pontiac Vibe posting gains of 31.3%. Chevrolet Silverado and Sierra Extended Cab pick-ups were up a combined 4.9%. Cadillac sales were up 2.9% overall, led by a 38.1% increase for the award winning Cadillac CTS. About General Motors of Canada Headquartered in Oshawa Ontario, General Motors of Canada Ltd. manufactures vehicles, vehicle powertrains, and markets the full range of General Motors vehicles and related services through 743 dealerships and retailers across Canada. Vehicles sold through this network include Chevrolet, Buick, Pontiac, GMC, Saturn, Hummer, Saab and Cadillac. GM of Canada employs more than 19,000 people nationwide. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. GOL LINHAS: Pares Profit Forecast Due to Airport Delays ------------------------------------------------------- Gol Linhas Aereas Inteligentes SA has cut down for the sixth time this year its profit forecast due to delays in the Congonhas airport, Bloomberg News reports. The company has also lowered profit expectation in November for the same reason. According to the company's statement, Gol sees four to five percent of profit from 2007 revenue. At the start of the year, the airline saw a 23% operating profit compared to last year. Fatal accidents in Brazil's airline industry has led the government to enforce measures that include limiting flights at Congonhas, causing widespread delays, the same report says. The airline's controlling shareholder, the Oliveira family- controlled Fundo de Investimento, wants to take it private after its share fell 46% as of September. Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) -- http://www.voegol.com.br-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2007, Fitch Ratings has affirmed the 'BB+' foreign and local currency issuer default ratings of Gol Linhas Aereas Inteligentes S.A. Fitch has also affirmed the outstanding US$200 million perpetual bonds and US$200 million of senior notes due 2017 at 'BB+' as well as the company's 'AA-' (bra) national scale rating. Fitch said the rating outlook is stable. MTI GLOBAL: Inks Forbearance Deal with its Principal Lender ----------------------------------------------------------- MTI Global Inc. has entered into a forbearance agreement with its principal lender, a Canadian chartered bank. Under the agreement, the Bank has agreed not to enforce its security prior to March 31, 2008, subject to MTI satisfying certain conditions. In addition certain provisions of the credit facilities have been amended. As reported on Nov. 14, 2007, MTI was notified by the Bank that it was in breach of a financial covenant in its credit facility agreement and in the transfer of assets and financial support of MTI de Baja as at June 30, 2007, and Sept. 30, 2007. The conditions to the forbearance include, among others, -- that guarantees and additional security be provided by MTI Groendyk and MTI Specialty Silicones; -- that MTI provide certain additional financial information to the Bank; and -- that MTI meet certain agreed upon deliverables at various dates up to and including March 31, 2008. The amendments to the credit facilities include: -- that a US$3 million term facility is now classified as a current portion of long term debt and therefore repayable upon demand, the term facility is related to the acquisition of the silicone division of Mold-Ex on July 12, 2007; -- that interest on the operating facility is now payable at prime plus 2% and on the term facility at prime plus 2.5%; and -- that MTI comply with certain additional financial reporting and general covenants on an on-going basis. MTI is developing a long-term plan, which will include a review of financial, corporate and operational structures to stabilize its financial situation. In the shorter term, MTI will: a) focus specifically on improving and streamlining customer and sales relationships; b) implementing more stringent discipline with respect to processes; and c) tighter management of working capital including inventory and overall financial performance. The restructuring plan is to be submitted to the Bank on or before Jan. 21, 2008. Breach of Financial Covenant Subsequent to the release of the second quarter results, the company was notified by its Canadian chartered bank that it was in breach of a financial covenant in its credit facility agreement as at June 30, 2007. Specifically, the company did not comply with the debt service coverage ratio of 1.25 calculated on a rolling twelve-month basis. Furthermore, the company was in breach of a general covenant concerning the transfer of certain inventory and equipment to the company's contract manufacturer in Mexico without first receiving the Bank's prior written consent. The company has received a written notice of waiver of the June 30, 2007, breaches through Nov. 30, 2007, and has requested the Bank's written consent for ongoing transfers of inventory and equipment in compliance with the terms of its loan agreement. Due to unfavourable financial results in the third quarter, the company remains in breach of the same debt service coverage ratio as at Sept. 30, 2007. Accordingly, the credit facilities consisting of an operating and term loan with the Bank are in default and have both been reflected in current liabilities. The company also expects to be in breach of the debt service covenant at Dec. 31, 2007. The company has commenced discussions with the Bank with respect to the breaches and has requested that the Bank waive the default for Sept. 30, 2007. About MTI Global Headquartered in Mississauga, Ontario, MTI Global Inc. (TSX: MTI) -- http://www.mtiglobalinc.com/-- designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The company serves a variety of specialty markets focused on three main product categories: Silicone, Aerospace and Fabricated Products. MTI's Canadian manufacturing operations are located in Mississauga, Ontario, with international manufacturing operations located in Richmond and Buchanan, Virginia; Pensacola, Florida; Bremen, Germany; and a contract manufacturer venture in Ensenada, Mexico. The company also has sales operations in England and Sweden, and an engineering support center in Brazil. MYERS INDUSTRIES: GS Capital Moves Sale Closing Date to April 30 ---------------------------------------------------------------- Myers Industries Inc.'s Board of Directors has announced that GS Capital Partners has requested more time to complete the acquisition of the company. In consideration for extending the closing date of the transaction from Dec. 15, 2007, to April 30, 2008, GSCP has agreed to make a non-refundable payment to Myers of the previously agreed upon US$35 million fee. GSCP has secured an extension of its debt financing commitments from Goldman Sachs Credit Partners and Key Bank pursuant to which GSCP has agreed to contribute another US$30 million of equity to the transaction. GSCP has acknowledged that there has been no material adverse change in Myers' business, and that GSCP's deadline extension request resulted from its desire to further evaluate conditions in certain industries in which Myers operates. John C. Orr, Myers Industries' president and chief executive officer said, "Both sides continue to work closely to complete this transaction. In light of GSCP's request for an extension, which we received the evening of December 7, 2007, the Board of Directors determined that it is in the best interest of Myers' shareholders to preserve this opportunity." Board Increases Regular Dividend Myers Industries' Board also announced that it would increase the company's regular quarterly dividend from US$0.0525 to US$0.06 per common share, payable January 2, 2008, to shareholders of record as of Dec. 20, 2007. As permitted by the extension agreement, the Board of Directors also approved payment of a special dividend of US$0.28 per common share, also payable Jan. 2, 2008, to shareholders of record as of Dec. 20, 2007. Merger Agreement Changes As part of the agreement to extend the closing deadline with GSCP, Myers Industries will be free to respond to takeover proposals solicited or received from others during the extension period and will not be required to pay a termination fee to GSCP if it enters into an alternative transaction. Except as modified by the extension agreement, the terms of the merger agreement remain unchanged, including GSCP's agreement to acquire all of the outstanding common stock of Myers Industries for US$22.50 per share in cash. About Myers Industries Myers Industries, Inc. -- http://www.myersind.com-- is an international manufacturer of polymer products for industrial, agricultural, automotive, commercial, and consumer markets. The Company is also the largest wholesale distributor of tools, equipment, and supplies for the tire, wheel, and undervehicle service industry in the US. The company reported record net sales from continuing operations of USUS$780.0 million in 2006. It has operations in Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 19, 2007, Standard & Poor's Ratings Services withdrew all ratings on Myers Industries Inc. The withdrawal follows the announcement that private equity sponsor Goldman Sachs Capital Partners would postpone the closing of its acquisition of Myers until the fourth quarter. UAL CORP: Board Approves US$250-Mln Distribution to Shareholders ---------------------------------------------------------------- The UAL Corporation Board of Directors approved a special distribution of US$2.15 per share to holders of UAL common stock, or approximately US$250 million. The distribution will be made on Jan. 23, 2008, to holders of UAL Corporation common stock outstanding as of Jan. 9, 2008. United also paid down US$500 million of the term loan under its existing credit agreement. Both the distribution and the term loan prepayment follow the approval by United's lenders of an amendment to the company's credit agreement. Under the amendment, the company can undertake an additional US$250 million in shareholder initiatives without any additional prepayment. In addition, the amendment provides that the company can carry out further shareholder initiatives in an amount equal to future term loan prepayments. "This shareholder distribution underscores our commitment to creating value for our investors," said Glenn Tilton, chairman, president and CEO. "On behalf of our board of directors, we are pleased to make this decision to provide a distribution to our shareholders while strengthening our balance sheet and investing in our business. We compete for shareholders just as we compete for customers." "Building a successful, sustainable enterprise, and providing a return on investment, is what shareholders expect and deserve," Mr. Tilton said, reports The Associated Press. Since exiting bankruptcy, United has reduced its total net debt by US$2.7 billion through the end of the third quarter. United has generated more than US$2 billion in operating cash flow in the first nine months of the year. The company also plans to invest US$4 billion in its business over the next five years. For the 5% Senior Convertible Notes due 2021 -- the "O'Hare Notes"; the 4.5% Senior Limited-Subordination Convertible Notes due 2021 -- the "Employee Notes"; and the PBGC 2% Convertible Preferred Stock -- "PBGC Preferred Stock", the conversion price and the ratios will be adjusted in accordance with their terms. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. * * * As reported in the Troubled Company Reporter on Nov. 29, 2007, Moody's Investors Service affirmed the ratings of UAL Corp. debt -- corporate family rating at B2 -- following the company's announced plans to amend its US$2.055 billion bank credit facilities (comprising a term loan facility of US$1.8 billion and a revolving credit facility of US$255 million) to provide the flexibility to implement up to US$500 million of shareholder initiatives. This level of shareholder initiatives would likely be within United's anticipated free cash flow and should still preserve the company's adequate level of liquidity. Moody's said the outlook remains stable. Standard & Poor's Ratings Services meanwhile affirmed its 'B' corporate credit rating on UAL Corp. and subsidiary United Air Lines Inc. following disclosure of a proposed amendment to United's bank credit agreement that would permit UAL to pursue "shareholder initiatives" (which could include a special dividend or share repurchases) of up to US$500 million. S&P said the outlook remains stable. UAL CORP: Unions Furious Over Shareholder Payouts ------------------------------------------------- The Air Line Pilots Association, the Association of Flight Attendants-CWA, and the International Association of Machinists and Aerospace Workers, representing the overwhelming majority of union-represented employees, are furious with the UAL Corporation Board of Directors and management's decision to give the special shareholder payout to the exclusion of employees. "In every venue available, we have voiced our opposition to any 'shareholder initiative' that does not equally recognize employee sacrifices," the leaders of the three largest Unions at United Airlines, Mark Bathurst, chairman of the United Chapter of the ALPA; Greg Davidowitch, united master executive council president of the AFA-CWA; and Randy Canale, president and directing general chairman of the IAM, District 141, said in a statement. "We have warned management that this move is wrong for the business, wrong for the employees and ultimately wrong for lenders. These executives have pushed through their personal agenda while ignoring serious concerns raised by nearly every stakeholder, industry trends and the company's financial position. This is being done with utter disregard for the interests of employees and the long-term success of United Airlines," the Unions said. "The best shareholder initiative would be one that invests in the employees for the long-term success of United Airlines. Shareholders in the pre-bankrupt UAL were issued new stock in the same manner as every other constituency, including the employees, when United emerged from bankruptcy. Today, employees who lost their pensions and work longer hours for less pay continue to suffer the affects of the bankruptcy. Not one penny of employee concessions has been repaid. The Unions noted that since United Airlines exited Chapter 11, UAL management has renegotiated excessive executive compensation packages for themselves and have renegotiated their agreements with lenders. "If they have the ability to renegotiate their own compensation packages, if they have the ability to negotiate with lenders, if they have the ability to negotiate with shareholders to create another management bonus, then they have the ability to enter negotiations with us." According to AFA-CWA, the move undercuts the value of United Airlines by favoring short-term shareholder returns over a strong, motivated workforce, an improved customer experience and the long-term health of the airline. "The executives at United Airlines are nothing more than charlatans, sweetening the pot to flip our airline like an unscrupulous real estate agent," said Mr. Davidowitch in letter to flight attendants. "This shareholder "initiative" is nothing more than an executive induced plan to enrich themselves at the expense of the working women and men of United Airlines. The best shareholder initiative would be one that invests in the employees for the long-term success of the airline." Mr. Davidowitch pointed out that Flight Attendants and other workers know that any time an employee or shareholder gets a supposed return on United's success, executives are getting an even bigger return on top of their renegotiated compensation packages. "Workers are fed up. They are fed up with these executives initiating class warfare instead of making good decisions for our airline," he said. Susan Carey of The Wall Street Journal, however, says UAL Corp. is making good on its pledge to be more mindful of its investors. United's management is clearly showing investors it can and will execute on its promises of shareholder-friendly actions," William Greene, airline analyst at Morgan Stanley said in a research note, reports WSJ. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. * * * As reported in the Troubled Company Reporter on Nov. 29, 2007, Moody's Investors Service affirmed the ratings of UAL Corp. debt -- corporate family rating at B2 -- following the company's announced plans to amend its US$2.055 billion bank credit facilities (comprising a term loan facility of US$1.8 billion and a revolving credit facility of US$255 million) to provide the flexibility to implement up to US$500 million of shareholder initiatives. This level of shareholder initiatives would likely be within United's anticipated free cash flow and should still preserve the company's adequate level of liquidity. Moody's said the outlook remains stable. Standard & Poor's Ratings Services meanwhile affirmed its 'B' corporate credit rating on UAL Corp. and subsidiary United Air Lines Inc. following disclosure of a proposed amendment to United's bank credit agreement that would permit UAL to pursue "shareholder initiatives" (which could include a special dividend or share repurchases) of up to US$500 million. S&P said the outlook remains stable. UNITED AIRLINES: Planned Pay Out Does Not Affect Fitch's Rating --------------------------------------------------------------- Following the announcement by United Airlines that it intends to pay out a special cash distribution of approximately US$250 million to shareholders while reducing its outstanding term loan balance by US$500 million, Fitch's ratings on United and its UAL Corp. parent are unaffected. Fitch's Issuer Default Rating on both UAL and United is 'B-', and the secured credit facility is rated 'BB-' with a recovery rating of 'RR1'. The Rating Outlook for UAL and United is Positive. Current ratings reflect the substantial progress made toward balance sheet repair and leverage reduction over the past two years, offset by management's stated intention to return more cash to shareholders through the current US$250 million payment, to be made on January 23, and potential future cash distributions. The recently negotiated amendment to United's secured bank credit facility allows for an additional US$250 million to be paid out to shareholders without further required reduction of the term loan balance. In addition, lenders have agreed to allow United to pursue further shareholder initiatives as long as a corresponding amount of debt reduction occurs at that time. The credit facility amendment and the distribution announcement appear to reflect management's view that a portion of the carrier's unrestricted cash position (US$4.2 billion as of Sept. 30, 2007) represents excess liquidity that should be allocated to the return of cash to shareholders and the pre- payment of debt. While this will clearly have a positive near- term effect on leverage, the resulting impact of this action on the carrier's liquidity position and free cash flow generation represents a modest credit negative that could limit United's financial flexibility in a potential industry downturn linked to a softening domestic demand outlook and very high jet fuel prices. United has recently adjusted its domestic mainline capacity growth plans for 2008 to reduce scheduled available seat miles by approximately 3%-4% in light of the weaker operating outlook. Other carriers, including Southwest, Continental and Delta have announced similar capacity pullbacks this month. Industry capacity discipline should support domestic unit revenue trends somewhat for 2008, but United and its competitors are likely to experience some margin pressure next year. Fitch expects free cash flow to weaken in 2008, particularly in light of the fact that cash distributions to shareholders could increase beyond the announced US$250 million payment. In Fitch's view, proceeds from any prospective asset divestitures-notably United's maintenance services business and/or the Mileage Plus loyalty program-are likely to be allocated toward both shareholder distributions and debt reduction, but the precise allocation is contingent upon developments in the industry operating environment over the next few quarters. About United Airlines United Airlines (Nasdaq: UAUA) -- http://www.united.com/-- is a subsidiary of UAL Corp. It operates more than 3,600 flights a day on United, United Express and TedSM to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America (Brazil), United is one of the largest international carriers based in the United States. The airline is also a founding member of Star Alliance, which provides connections for our customers to 855 destinations in 155 countries worldwide. The airline's 55,000 employees reside in every U.S. state and in many countries around the world. * BRAZIL: Inks Foundation Act; Launches Bank of the South --------------------------------------------------------- The national leaders of Argentina, Bolivia, Brazil, Ecuador, Paraguay and Venezuela have launched Sunday the new Banco del Sur development bank, the Financial Times reports. The bank's launching was initially set for June 26 but was moved due to capitalization issues. According to the FT, the bank has about US$7 billion in capital, which came from the founding members. Colombia and Chile has not entered the venture. The bank, advocated by Venezuelan President Hugo Chavez, will be established to rival the services offered by the International Monetary Fund and the World Bank, on much lower rates and better financing conditions. Critics called the bank a waste of effort given the established presence of the institutions, like the IMF and the Word Bank, which it wants to compete with. The finer details of the services that the bank will be providing still need to be ironed out by the finance ministers of the countries involved. The ministers have two months to translate into operations what have been agreed on paper, the FT says. * * * 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 =========================== ANN FUNDING: Sets Final Shareholders Meeting for Dec. 14 -------------------------------------------------------- Ann Funding Two Co., Ltd., 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 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. Ann Funding's shareholders agreed on Oct. 29, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands ASBT CAYMAN: Holding Final Shareholders Meeting on Dec. 14 ---------------------------------------------------------- ASBT Cayman Sub No. 85 Limited will hold its final shareholders meeting on Dec. 14, 2007, at 12:30 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 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. ASBT Cayman's shareholders agreed on Nov. 2, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands ASBT CAYMAN SUB: Final Shareholders Meeting Is on Dec. 14 --------------------------------------------------------- ASBT Cayman Sub No. 84 Limited will hold its final shareholders meeting on Dec. 14, 2007, at 1:00 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 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. ASBT Cayman's shareholders agreed on Nov. 2, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands AVENUE SERIES: Sets Final Shareholders Meeting for Dec. 14 ---------------------------------------------------------- Avenue Series 2002-1 Limited will hold its final shareholders meeting on Dec. 14, 2007, at: Maples Finance Limited Boundary Hall, Cricket Square George Town, Grand Cayman Cayman Islands` These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving any 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. Avenue Series' shareholders agreed on Nov. 1, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Chris Marett Sarah Kennedy Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands EUROPEAN FINANCIAL: Holds Final Shareholders Meeting on Dec. 14 --------------------------------------------------------------- European Financial Investments Fund Limited will hold its final shareholders meeting on Dec. 14, 2007, at: Maples Finance Limited Boundary Hall, Cricket Square George Town, Grand Cayman Cayman Islands` These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving any 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. European Financial's shareholders 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: Guy Major Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands EUROPEAN FIN'L INVESTMENTS: Shareholders Meeting Is on Dec. 14 -------------------------------------------------------------- European Financial Investments Limited will hold its final shareholders meeting on Dec. 14, 2007, at: Maples Finance Limited Boundary Hall, Cricket Square George Town, Grand Cayman Cayman Islands` These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving any 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. European Financial's shareholders 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: Guy Major Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands FLAGSHIP CLO: Will Hold Final Shareholders Meeting on Dec. 14 ------------------------------------------------------------- Flagship CLO II will hold its final shareholders meeting on Dec. 14, 2007, at: Maples Finance Limited Boundary Hall, Cricket Square George Town, Grand Cayman Cayman Islands` These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving any 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. Flagship CLO's shareholders agreed on Nov. 1, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Andrew Dean Jan Neveril Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands GREAT OAK: Will Hold Final Shareholders Meeting on Dec. 14 ---------------------------------------------------------- Great Oak Investment Limited 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 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. Great Oak's shareholders agreed on Nov. 2, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands HIBIYA SEVEN INVESTMENT: Final Shareholders Meeting Is Dec. 14 -------------------------------------------------------------- Hibiya Seven Investment Ltd. will hold its final shareholders meeting on Dec. 14, 2007, at: Maples Finance Limited Boundary Hall, Cricket Square George Town, Grand Cayman Cayman Islands` These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving any 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. Hibiya Seven's shareholders 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: Jan Neveril Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands HIBIYA SEVEN: Will Hold Final Shareholders Meeting on Dec. 14 ------------------------------------------------------------- Hibiya Seven Ltd. will hold its final shareholders meeting on Dec. 14, 2007, at: Maples Finance Limited Boundary Hall, Cricket Square George Town, Grand Cayman Cayman Islands` These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving any 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. Hibiya Seven's shareholders 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: Jan Neveril Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands TRADE LINK: Sets Final Shareholders Meeting for Dec. 14 ------------------------------------------------------- Trade Link Bank will hold its final shareholders meeting on Dec. 14, 2007, at 9:00 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 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. Trade Link's shareholders agreed on Nov. 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: Russell Smith Attention: Sumitra Devi &