/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/071219.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, December 19, 2007, Vol. 8, Issue 251 Headlines A R G E N T I N A AGENCIA DE INVESTIGACIONES: Claims Verification Ends on March 14 ALITALIA SPA: AirOne's Business Plan Includes 3,802 Lay-offs ARROW ELECTRONICS: Expands Distribution Agreement with Delta ASOCIACION MUTUAL: Proofs of Claim Verification Is Until Feb. 21 CARGUEZ SRL: Proofs of Claim Verification Deadline Is Feb. 21 DANA CORP: Rhodes Wants Cape Girardeau Property Offer Considered FORD MOTOR: Names J. Hinrichs as Global Manufacturing Vice Pres. INDUSTRIAS METALURGICAS: Will Upgrade Acaray II Plant MEDICALGRAF SA: Trustee Verifies proofs of Claim Until Feb. 20 NOVELL INC: Posts US$13MM Loss from Operations in 4th Qtr. 2007 PETER PAN: Proofs of Claim Verification Deadline Is March 7 PEUSSO SA: Reorganization Proceeding Concluded PINAMAR TENNIS: Proofs of Claim Verification Ends on March 12 PROTECCION Y COMANDO: Trustee Verifies Claims Until Feb. 12 B E R M U D A ASPEN INSURANCE: Haldevang to Lead Political Risk Insurance Unit SEA CONTAINERS: Posts US$19.4MM Net Loss in Month Ended Oct. 31 B O L I V I A * BOLIVIA: Petroleo Brasileiro Investing Up to US$1B in Nation B R A Z I L AMERICAN AIRLINES: Recalls 247 TWA Furloughed Flight Attendants AMERICAN AIRLINES: Names K. Stache as VP & General Sales Manager BANCO DO BRASIL: May Raise BRL3.44 Bil. from Secondary Offering BANCO NACIONAL: Grants BRL56.7-Million Loan for Salto Project BANCO NACIONAL: Directors Okay BRL2-Mln Financing to Taum Chemie BRASKEM SA: Sells Petroflex Shares to German Company Lanxess CA INC: Fitch Affirms Issuer Default & Debt Ratings at BB+ CAMARGO CORREA: Forms Joint Venture with Unique & Gestion CLEAR CHANNEL: Launches Tender Offer & Solicitation for Notes MARFRIG FRIGORIFICOS: S&P Affirms Corporate Credit Rating at B+ NAVISTAR INT'L: Unit Names Steve Bruford as Vice President NAVISTAR INT'L: Ratifies New Three-Year Contract w/ UAW Members SPANSION INC: Amends Merger Agreement with Saifun Semiconductors ULTRAPAR PARTICIPACOES: Says Form F-4 Statement Is Effective WEIGHT WATCHERS: Declares US$0.175 Per Share Quarterly Dividend XERIUM TECH: Promotes Eduardo Fracasso as Pres. for LatAm Biz * BRAZIL: Petrobras To Invest in National Gas Output in Bolivia * BRAZIL: Reports 1.8% Boost in Oil Production in November * BRAZIL: Petroleo Brasileiro Mulling Areas Near Tupi C A Y M A N I S L A N D S ADARI IAM: Proofs of Claim Filing Is Until Today BEAR STEARNS: Proofs of Claim Filing Deadline Is Today BEAR STEARNS: Four Law Firms File Investor Claims BEAR STEARNS GLOBAL: Proofs of Claim Filing Ends Today CELEBRITY IAM: Last Day To File Proofs of Claim Is Today COMITY IAM: Proofs of Claim Filing Ends Today CORAL IAM: Proofs of Claim Filing Deadline Is Today DAHLIA IAM: Proofs of Claim Filing Is Until Today EDEN (IFI): Proofs of Claim Filing Is Until Today GRANADA IAM: Proofs of Claim Filing Deadline Is Today LAVENDER IAM: Last Day To File Proofs of Claim Is Today MAGNOLIA IAM: Proofs of Claim Filing Is Until Today MERLIN IAM: Proofs of Claim Filing Ends Today MIASMA IAM: Last Day To File Proofs of Claim Is Today MORES IAM: Proofs of Claim Filing Deadline Is Today OASIS IAM: Last Day To File Proofs of Claim Is Today ORCHID IAM: Last Day To File Proofs of Claim Is Today PANOPLY IAM: Last Day To File Proofs of Claim Is Today QUINCY IAM: Proofs of Claim Filing Deadline Is Today RUBY IAM: Proofs of Claim Filing Deadline Is Today SUNSTONE IAM: Proofs of Claim Filing Is Until Today TOPAZ IAM: Proofs of Claim Filing Deadline Is Today WISDOM IAM: Last Day To File Proofs of Claim Is Today ZODIAC IAM: Proofs of Claim Filing Deadline Is Today C H I L E CONSTELLATION BRANDS: Closes Fortune Brands' Wine Business Sale TECH DATA: Teams w/ XO Comms To Deliver IP Services to Resellers C O L O M B I A QUEBECOR WORLD: Aborts US$341-Mil. Sale of Euro Assets to RSDB C U B A * CUBA: Launching Camilo Cienfuegos Plant on Dec. 21 G U A T E M A L A LAND O'LAKES: Posts US$2.8-Mln Net Loss in Third Quarter of 2007 H A I T I DYNCORP INT'L: Bags Airlift Wing Support Contract for US$357.9MM J A M A I C A AIR JAMAICA: Gov't Inks Direct Air Travel Pact with Brazil NATIONAL WATER: Temporarily Averts Legal Action from Regulator SUGAR COMPANY: Frome Factory Remains Closed M E X I C O ADVANCED MICRO: Goodwill Recorded After ATI Buy Likely Impaired CINRAM INT'L: Unit Implements Internal Debt Restructuring COMPLETE RETREATS: Court Confirms Joint Plan of Liquidation DURA AUTOMOTIVE: Wants Plan Confirmation Hearing Moved Next Year DURA AUTO: Subprime Lending Mess Blamed for Lack of Funding DURA AUTO: Defers Exit Financing Process Due to Market Riff EPICOR SOFTWARE: Moody's Says NSB Buyout Won't Affect Rating GRUPO MEXICO: Mexican Court Allows Cananea Protests To Continue HOST HOTELS: Board Declares Quarterly and Special Dividends ICONIX BRAND: Completes US$60 Million Starter Brand Acquisition INT'L RECTIFIER: Promotes Rick Sivan to Vice President for R&D XIGNUX SA: S&P Lifts Corporate Credit Rating to BB+ from BB * NICOLAS ROMERO: Moody's Places B1 Global Local Currency Rating P A N A M A BANCO LATINOAMERICANO: Declares US$0.22 Per Share Cash Dividend P A R A G U A Y * PARAGUAY: Industrias Metalurgicas To Upgrade Acaray II Plant P E R U CUMMINS INC: Urges Shareholders to Reject Mini-Tender Offer P U E R T O R I C O AFC ENTERPRISES: James Lyons Leaves Chief Operating Officer Post AVNET INC: Completes Acal IT Solution Acquisition for US$200 Mln GENESCO INC: S&P Lowers Corporate Credit Rating from BB- to B+ WESCO INT'L: Enters Into Strategic Venture w/ Deutsch Engineered T R I N I D A D & T O B A G O HILTON HOTELS: Unit Hires Joseph Palmieri as General Manager V E N E Z U E L A HARVEST NATURAL: Buys 50% Interest in Gabon Exploration Project PETROLEOS DE VENEZUELA: Makes Prepayment of Hamaca Project Debt - - - - - ================= A R G E N T I N A ================= AGENCIA DE INVESTIGACIONES: Claims Verification Ends on March 14 ---------------------------------------------------------------- Silvia Giudice, the court-appointed trustee for Agencia de Investigaciones y Seguridad Privada Senda S.R.L.'s bankruptcy proceeding, verifies creditors'proofs of claim until March 14, 2008. Ms. Giudice will present the validated claims in court as individual reports on May 9, 2008. The National Commercial Court of First Instance in Lomas de Zamora, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Agencia de Investigaciones 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 Agencia de Investigaciones' accounting and banking records will be submitted in court on June 23, 2008. Ms. Giudice is also in charge of administering Agencia de Investigaciones' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Agencia de Investigaciones y Seguridad Privada Senda S.R.L. Avenida Valette 405, Monte Grande Partido de Esteban Echeverria, Buenos Aires Argentina The trustee can be reached at: Silvia Giudice Avenida Frias 1676, Lomas de Zamora Buenos Aires, Argentina ALITALIA SPA: AirOne's Business Plan Includes 3,802 Lay-offs ------------------------------------------------------------ AirOne S.p.A. plans to lay off 3,802 employees at Alitalia S.p.A. once it acquires the Italian government's 49.9% stake in the national carrier, Agenzia Giornalistica Italia reports citing FIT-CISL national secretary Claudio Genovesi. According to Mr. Genovesi, AirOne, which acquisition vehicle AP Holding S.p.A. includes Intesa Sanpaolo S.p.A., plans to lay off: * 2,750 employees at Alitalia Fly: -- 1,785 ground personnel, -- 334 pilots * 25 via retirement, * 180 via golden handshake, * 35 through turnover offset, and * 94 though solidarity compensation. -- 631 cabin crew. * 1,052 employees at Alitalia Services: -- 633 from maintenance department, and -- 419 from other departments. As reported in the TCR-Europe on Dec. 17, 2007, Alitalia's Board of Directors will convene at 4:00 p.m. today, Dec. 18, 2007, to choose the preferred buyer for Italy's stake. As reported in the TCR-Europe on Dec. 7, 2007, Alitalia received non-binding proposals for the Italian government's 49.9% stake from: -- Air France-KLM, -- AP Holding S.p.A., and -- Cordata Baldassarre. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ARROW ELECTRONICS: Expands Distribution Agreement with Delta ------------------------------------------------------------ The North American Components business of Arrow Electronics, Inc. has expanded its distribution agreement with Delta Electronics, Inc., the world's largest provider of switching power supplies, to include Delta's Delphi Series of standard DC/DC converters. Offering up to 700 watts of power in a single unit, the Delphi DC/DC converters provide high efficiency and high-density power for the commercial, industrial and military markets. "The expanded agreement between Delta, one of the world's largest power manufacturers, and Arrow, one of the largest power-supply distributors, enables customers to access products and services from a world-class team," said Arrow Electronics vice president of marketing for passives, electromechanical and connector products, Mike Calabria. "Delta will compliment Arrow's industry-leading power-supply line card and strong market presence." "We are pleased to expand our association with Arrow to include DC/DC converters. Our customers will benefit from the support and program expertise Arrow provides," said Delta Electronics senior vice president of sales, Graham Hunter. About Delta Electronics, Inc. Delta Group -- http://www.deltaww.com-- is the world's largest provider of switching power supplies and a major source for power management solutions, components, visual displays, industrial automation, networking products, and renewable energy. Established in 1971, Delta Group has sales offices worldwide and manufacturing plants in Taiwan, Thailand, China, Mexico and Europe. As a global leader in power electronics, Delta is committed to environment protection and has implemented green, lead-free production and recycling and waste management programs for many years. Delta's mission continues to be: "To provide innovative energy-saving products for a better quality of life." About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics Inc. -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands, United Kingdom, Argentina, Brazil, Mexico, Australia, China, Hong Kong, Korea, Philippines and Singapore. * * * Arrow Electronics senior subordinated stock continues to carry Moody's Investors Service's Ba1 rating. The company's senior preferred stock is rated at Ba2. ASOCIACION MUTUAL: Proofs of Claim Verification Is Until Feb. 21 ---------------------------------------------------------------- Lidia Roxana Martin, the court-appointed trustee for Asociacion Mutual del Personal del Instituto de Servicios Sociales Bancarios Contador Hugo Omar Ulloa's bankruptcy proceeding, verifies creditors'proofs of claim until Feb. 21, 2008. Ms. Martin will present the validated claims in court as individual reports on April 3, 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 Asociacion Mutual 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 Asociacion Mutual's accounting and banking records will be submitted in court on May 16, 2008. Ms. Martin is also in charge of administering Asociacion Mutual's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Lidia Roxana Martin Avenida Cordoba 1352 Buenos Aires, Argentina CARGUEZ SRL: Proofs of Claim Verification Deadline Is Feb. 21 ------------------------------------------------------------- Francisco Jose Vazquez, the court-appointed trustee for Carguez S.R.L.'s bankruptcy proceeding, verifies creditors'proofs of claim until Feb. 21, 2008. Mr. Vazquez will present the validated claims in court as individual reports on April 24, 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 Carguez and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Carguez's accounting and banking records will be submitted in court on June 26, 2008. Mr. Vazquez is also in charge of administering Carguez's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Carguez S.R.L. Arcos 3751 Buenos Aires, Argentina The trustee can be reached at: Francisco Jose Vazquez Rodriguez Pena 110 Buenos Aires, Argentina DANA CORP: Rhodes Wants Cape Girardeau Property Offer Considered ---------------------------------------------------------------- Rhodes Development Company, LLC is interested in purchasing the Cape Girardeau property at a higher purchase price, hence, it asks Dana Corp. and its debtor-affiliates to consider its offer. Rhode says that is willing to participate in any reasonable auction format established for the sale of the Property. As reported in the Troubled Company Reporter on Dec. 14, 2007, the Debtors had asked authority from the U.S. Bankruptcy Court for the Southern District of New York the to sell a 15-acre parcel of real estate and a 150,000 square-foot building located at 2075 Corporate Circle in Cape Girardeau, Missouri, to Schaefer's Power Panels, Inc., for US$2,841,750. The Debtors currently use the property for manufacturing, and they are in the process of closing the manufacturing operations, Corinne Ball, Esq., at Jones Day, in New York related. Request to Delay Sale Approval Furthermore, Rhodes asks the Court to delay the approval of the sale of the Property pending further discussions among the interested parties. In a separate filing, the Official Committee of Unsecured Creditors asks the Debtors to immediately put in place auction procedures for the sale of the Property to ensure that the Property is sold at a maximum value. About Dana Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 66; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) FORD MOTOR: Names J. Hinrichs as Global Manufacturing Vice Pres. ---------------------------------------------------------------- Ford Motor Company President and Chief Executuve Officer Alan Mulally has named Joe Hinrichs as group vice president, Global Manufacturing effective Jan. 1, 2008. Mr. Hinrichs, currently vice president of North America Manufacturing, will lead the worldwide integration of the company's manufacturing operations and its engineering support for vehicle, powertrain and stamping. In his new role, Mr. Hinrichs will drive alignment between manufacturing and product development on a global scale, leveraging the company's worldwide product strategy. He will continue to directly oversee North American manufacturing operations. In addition, he will have global responsibility for the company's Material Planning and Logistics, Ford Production System, and Manufacturing Business Office organizations. "Joe has been successful in leading the restructuring of our North American manufacturing operations and was a key participant in the recent contract talks with the UAW," Mr. Mulally said. "In his new role, Joe will focus on delivering a global manufacturing plan that allows us to improve our efficiency while leveraging our scale worldwide. A global manufacturing footprint supporting a global product plan that delivers the vehicles people want and value are key to creating an exciting and viable company -- that delivers profitable growth for all." In his global role, Mr. Hinrichs reports to Mr. Mulally. In his North American role, he will continue to report to Mark Fields, executive vice president and president, The Americas. "Our plants in North America are more competitive and our launches are stronger, thanks in large part to Joe's leadership," Mr. Fields said. "Integrating manufacturing around the world and aligning it with product development on a global scale will make the entire business stronger." Mr. Hinrichs, who joined Ford Motor in 2000 and has held a variety of top manufacturing jobs, led the company's successful effort to negotiate Competitive Operating Agreements with the United Auto Workers across Ford's United States manufacturing operations while driving improved quality. He also played a key role in this year's contract negotiations with the UAW, which led to a new four-year U.S. labor agreement that will help the company become significantly more competitive and protects workers and retirees. "I am excited by the opportunity to bring our plants and engineering functions around the world together into one, cohesive manufacturing operation," Mr. Hinrichs said. "Integrating a global process plan and combining it with our global product plan allow us to accelerate our ability to produce the vehicles customers want around the world while continuing to improve quality." Mr. Hinrichs also will lead Automotive Components Holdings LLC, the Ford-managed temporary business entity comprised of former Visteon Corp. plants and facilities in the United States and Mexico. Automotive Components is preparing its plants for sale or closure by the end of 2008. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. INDUSTRIAS METALURGICAS: Will Upgrade Acaray II Plant ----------------------------------------------------- Industrias Metalurgicas Pescarmona SA has signed an accord with Paraguayan state-run power firm Ande to modernize the Acaray II hydroelectric plant, Business News Americas reports. BNamericas says that the upgrade is aimed at increasing the plant's capacity. Industrias Metalurgicas said in a statement that the contract is about US$11 million. It involves the revamping of plant generators three and four to boost their production to 150 megawatts from 121 megawatts. According to BNamericas, Ande runs Acaray II, which supplies 15% of Paraguay's power needs. Acaray II is also the sole hydroelectric plant Paraguay runs on its own. BNamericas notes that work for the project would last for 30 months. Industrias Metalurgicas told Waterpowermagazine.com that "binational possibilities" like the Yacyreta project on the Parana river were still of interest as the firm is examining possibilities for the 300-megawatt Ana Cua project, a complementary scheme to the 3200-megawatt Yacyreta plant for which the company provided seven 160-megawatt units out of the total 20 turbines. Industrias Metalurgicas commented to Waterpowermagazine.com that it is working on providing equipment for a series of other projects like: -- Bakun in Malaysia; -- Tocoma and Macagua schemes in Venezuela; -- Porce III in Colombia; and -- Simplicio, Dardanelos and Anta plants in Brazil. Waterpowermagazine.com says that Industrias Metalurgicas is also working on wind farm development. Industrias Metalurgicas told Waterpowermagazine.com that its power generation projects surpass six giga watts, entailing a US$1.7-billion "order backlog." Industrias Metalurgicas Pescarmona SA aka IMPSA -- http://www.impsa.com.ar/-- is one of the largest worldwide providers of integrated energy solutions for hydropower and wind energy projects through the production of capital goods and by investing in power generation projects. The company has offices in Malaysia, China, and Argentina. As reported in the Troubled Company Reporter-Latin America on Oct. 24, 2007, Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on Industrias Metalurgicas Pescarmona S.A.I.C. y F, aka IMPSA. Standard & Poor's said that the outlook remains stable. Oct. 16, 2007, Fitch Ratings assigned a 'B' rating to Industrias Metalurgicas Pescarmona S.A.I.C. Y F proposed US$250 million amortizing notes due in 2014. These notes were assigned a Recovery Rating of 'RR4', which is consistent with an anticipated recovery of 30%-50% in the event of a default. Fitch maintains a foreign and local currency Issuer Default Rating of 'B'. Fitch said the rating outlook is stable. MEDICALGRAF SA: Trustee Verifies proofs of Claim Until Feb. 20 -------------------------------------------------------------- Roberto Coliqueo, the court-appointed trustee for Medicalgraf S.A.'s reorganization proceeding, verifies creditors' proofs of claim until Feb. 20, 2008. Mr. Coliqueo will present the validated claims in court as individual reports on April 9, 2008. The National Commercial Court of First Instance in La Plata, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Medicalgraf 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 Medicalgraf's accounting and banking records will be submitted in court on May 22, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Oct. 17, 2008. The debtor can be reached at: Medicalgraf S.A. Calle 5, Numero 473 La Plata, Buenos Aires Argentina The trustee can be reached at: Roberto Coliqueo Calle 53, Numero 755 La Plata, Buenos Aires Argentina NOVELL INC: Posts US$13MM Loss from Operations in 4th Qtr. 2007 --------------------------------------------------------------- Novell, Inc. has announced financial results for its fourth fiscal quarter and full fiscal year ended Oct. 31, 2007. For the quarter, the company reported net revenue of US$245 million, which excludes US$6 million of revenue from its Swiss-based business consulting unit, which the company agreed to sell during the quarter. This compares to net revenue of US$234 million for the fourth fiscal quarter 2006. The loss from operations for the fourth fiscal quarter 2007 was US$13 million, compared to income from operations of US$4 million for the fourth fiscal quarter 2006. The loss available to common stockholders from continuing operations in the fourth fiscal quarter 2007 was US$9 million, or US$0.03 loss per common share. This compares to income available to common stockholders from continuing operations of US$21 million, or US$0.05 per diluted common share, for the fourth fiscal quarter 2006. Foreign currency exchange rates favorably impacted total revenue by approximately US$6 million and did not materially impact the loss from operations year-over-year. On a non-GAAP basis, adjusted income from operations for the fourth fiscal quarter 2007 was US$20 million. This compares to non-GAAP adjusted income from operations of US$18 million in the year-ago quarter. Non-GAAP adjusted income available to common stockholders from continuing operations for the fourth fiscal quarter 2007 was US$20 million, or US$0.06 per adjusted diluted common share. This compares to non-GAAP adjusted income available to common stockholders from continuing operations of US$20 million, or US$0.05 per adjusted diluted common share, for the fourth fiscal quarter 2006. In the fourth fiscal quarter 2007, the company entered into an agreement to sell its Swiss-based business consulting unit. Accordingly, all financial results for this unit were excluded from Novell's continuing operations for income statement reporting purposes and are reported as discontinued operations. For the full fiscal year 2007, the company reported net revenue of US$932 million and a loss available to common stockholders from continuing operations of US$26 million, or US$0.08 loss per common share. Comparatively, net revenue for the full fiscal year 2006 was US$919 million and income available to common stockholders from continuing operations was US$4 million, or US$0.01 per diluted common share. Foreign currency exchange rates favorably impacted total revenue by approximately US$15 million and negatively impacted the loss from operations by US$5 million year-over-year. For the fourth fiscal quarter 2007, the company reported US$23 million of revenue from Open Platform Solutions, of which US$22 million was from Linux Platform Products, up 69 percent year- over-year. Linux Platform Products invoicing was US$46 million during the quarter, up 108 percent year-over-year. Revenue from Identity and Security Management was US$33 million, of which Identity and Access Management was US$30 million, up 27 percent year-over-year. Revenue from Systems and Resource Management was US$36 million, up 5 percent year-over-year. Workgroup revenue of US$88 million was up 1 percent year-over-year. "We are pleased with our overall results for 2007. While undergoing transformational change, we grew revenue and exceeded our operating targets. We are on the right path to long-term, sustainable profitability," said Novell president and Chief Executive Officer, Ron Hovsepian. Cash, cash equivalents and short-term investments were US$1.9 billion at Oct. 31, 2007, up from US$1.5 billion last year. Days sales outstanding in accounts receivable was 77 days at the end of the fourth fiscal quarter 2007, down from 86 days at the end of the year-ago quarter. Total deferred revenue was US$768 million at the end of the fourth fiscal quarter 2007, up US$341 million, or 80 percent, from Oct. 31, 2006. Cash flow from operations was US$77 million for the fourth fiscal quarter 2007, compared to US$62 million in the fourth fiscal quarter 2006. Financial Outlook Novell management issues these financial guidance: For the full fiscal year 2008: -- Net revenue is expected to be between US$920 million and US$945 million. -- Non-GAAP adjusted operating margin is expected to be between 7 and 9 percent. Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq: NOVL) -- http://www.novell.com/-- delivers infrastructure software for the Open Enterprise. Novell provides desktop to data center operating systems based on Linux and the software required to secure and manage mixed IT environments. The company has offices in Australia, Argentina, Austria, Belgium, Brazil, China, Czech Republic, Finland, Germany, Hong Kong, Hungary, India, Ireland, Japan, Luxembourg, Malaysia, Netherlands, New Zealand, Norway, Philippines, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand and United Kingdom. * * * Novell Inc.'s subordinated debt carries Moody's Investors Service's B1 rating. PETER PAN: Proofs of Claim Verification Deadline Is March 7 ----------------------------------------------------------- Guillermo Javier Gimenez, the court-appointed trustee for Peter Pan S.A.'s bankruptcy proceeding, verifies creditors'proofs of claim until March 7, 2008. Mr. Gimenez will present the validated claims in court as individual reports on April 9, 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 Peter Pan 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 Peter Pan's accounting and banking records will be submitted in court on May 8, 2008. Mr. Gimenez is also in charge of administering Peter Pan's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Peter Pan S.A. Pte. Luis Saenz Pena 1756 Buenos Aires, Argentina The trustee can be reached at: Guillermo Javier Gimenez Rodriguez Pena 434 Buenos Aires, Argentina PEUSSO SA: Reorganization Proceeding Concluded ---------------------------------------------- Peusso S.A.'s reorganization proceeding has ended. Data published by Infobae on its Web site indicated that the process was concluded after the National Commercial Court of First Instance in Cordoba approved the debt agreement signed between the company and its creditors. The debtor can be reached at: Peusso S.A. Ibarbalz 955, Ciudad de Cordoba Cordoba, Argentina PINAMAR TENNIS: Proofs of Claim Verification Ends on March 12 ------------------------------------------------------------- Jaime Luis Jeiman, the court-appointed trustee for Pinamar Tennis Ranch S.A.'s bankruptcy proceeding, verifies creditors'proofs of claim until March 12, 2008. Mr. Jeiman will present the validated claims in court as individual reports on April 29, 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 Pinamar Tennis 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 Pinamar Tennis' accounting and banking records will be submitted in court on May 28, 2008. Mr. Jeiman is also in charge of administering Pinamar Tennis' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jaime Luis Jeiman Lavalle 1312 Buenos Aires, Argentina PROTECCION Y COMANDO: Trustee Verifies Claims Until Feb. 12 ----------------------------------------------------------- Jose Miguel Tsanis, the court-appointed trustee for Proteccion y Comando S.A.'s reorganization proceeding, verifies creditors' proofs of claim until Feb. 12, 2008. Mr. Tsanis will present the validated claims in court as individual reports on March 27, 2008. The National Commercial Court of First Instance in Quilmes, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Proteccion y Comando 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 Proteccion y Comando's accounting and banking records will be submitted in court on May 13, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Nov. 3, 2008. The debtor can be reached at: Proteccion y Comando S.A. Calle 138, Numero 1147 Berazategui, Buenos Aires Argentina The trustee can be reached at: Jose Miguel Tsanis Alvear 674, Quilmes Buenos Aires, Argentina ============= B E R M U D A ============= ASPEN INSURANCE: Haldevang to Lead Political Risk Insurance Unit ---------------------------------------------------------------- Aspen Insurance Holdings Limited has appointed Bernard de Haldevang as Head of Political Risk Insurance with immediate effect. In this newly formed role, Mr. Haldevang reports directly to Matthew Yeldham, Aspen's Head of International Insurance. Aspen anticipates that gross written premium from this new line of business will be in the region of US$70 million after three years subject to market conditions. Mr. Haldevang has over 20 years of experience of underwriting political risk insurance and joins Aspen from Atrium Underwriting, Lloyd's of London, where he was a member of the Syndicate Management Group and Class Underwriter for Financial and Political Risks. "I am very pleased to welcome Bernie to Aspen," said Matthew Yeldham, Head of International Insurance for Aspen. "He has a strong underwriting track-record, excellent relationships in the industry and I am looking forward to working with him." Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings Limited (NYSE: AHL) (BSX: AHL BH) is the holding company of the Aspen Group the principal operating entities of which are Aspen Insurance UK Limited and Aspen Insurance Limited, both rated A2 for insurance financial strength. At the end of September 2006, Aspen Group reported net income of US$259 million and shareholders' equity of US$2.3 billion. * * * As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba1 rating to the USUS$200 million Perpetual Non-Cumulative Preference Shares issued by Aspen Insurance Holdings Limited, the existing perpetual "PIERS" of which were rated Ba1 by Moody's. SEA CONTAINERS: Posts US$19.4MM Net Loss in Month Ended Oct. 31 --------------------------------------------------------------- Sea Containers, Ltd. Unaudited Balance Sheet As of October 31, 2007 Assets Current Assets Cash and cash equivalents US$34,820,574 Trade receivables, less allowances for doubtful accounts 317,470 Due from related parties 719,317 Prepaid expenses and other current assets 1,443,166 ------------ Total current assets 37,300,527 Fixed assets, net - Long-term equipment sales receivable, net - Investments in group companies 143,546,856 Intercompany receivables - Investment in equity ownership interests 222,728,282 Other assets 3,804,260 ------------ Total assets US$407,379,925 Liabilities and Shareholders' Equity Current Liabilities Accounts payable US$17,908,268 Accrued expenses 59,119,323 Current portion of long-term debt 172,540,013 Current portion of senior notes 385,379,664 ------------ Total current liabilities 634,947,268 Total shareholders' equity (227,567,343) ------------ Total liabilities and shareholders' equity US$407,379,925 Sea Containers, Ltd. Unaudited Statement of Operations For the Month Ended October 31, 2007 Revenue US$2,673,200 Costs and expenses: Operating income 162,248 Selling, general and administrative expenses (3,047,323) Professional fees (14,600,666) Charges to provide against intercompany accounts (190,746) Impairment of investment in subsidy Co. 0 Forgiveness of intercompany debt 0 Depreciation and amortization 0 ------------ Total costs and expenses (17,676,487) ------------ Gain or (Loss) on sale of assets 13,260 ------------ Operating income (loss) (14,990,027) Other income (expense) Interest income 123,951 Foreign exchange gains or (losses) 2,076 Interest expense, net (4,700,938) ------------ Income (Loss) before taxes (19,564,938) Income tax credit/(expense) 143,000 ------------ Net (Loss) (US$19,421,938) Headquartered in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Debtors' exclusive period to file a chapter 11 plan expires on Dec. 21, 2007. (Sea Containers Bankruptcy News, Issue No. 32; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ============= B O L I V I A ============= * BOLIVIA: Petroleo Brasileiro Investing Up to US$1B in Nation -------------------------------------------------------------- Brazilian state-run oil firm Petroleo Brasileiro SA will invest up to US$1 billion in natural gas fields in Bolivia within the next five years, government press agencies reports. Business News Americas relates that Brazilian President Luiz Inacio Lula da Silva signed the deal for the investments with Bolivian counterpart Evo Morales. Published reports say that Brazil will make about US$750 million in oil and gas investments in Bolivia. News daily O Globo notes that as agreed, Petroleo Brasileiro and Bolivian state-owned hydrocarbons firm Yacimientos Petrol�feros Fiscales Bolivianos will consider the creation of a joint company to explore new hydrocarbons areas in Bolivia. Reuters relates that Petroleo Brasileiro workers will give technical and commercial training to their Bolivian counterparts. According to Bolivian paper La Razon, President Lula had said earlier that the stable corporate framework in Bolivia would let Brazil invest in the oil and gas sector. Bolivia has a long- term deal to export about 30 million cubic meters per day to Brazil. Petroleo Brasileiro is the first firm to disclose new investment plans for Bolivia since President Morales launched his nationalization program in May 2006, BNamericas notes. President Lula commented to La Razon, "Tensions will not affect our intention to maintain a permanent dialogue, to cooperate and to help Bolivia." President Morales told Reuters, "I want to tell Petrobras's [Petroleo Brasileiro] president that although there was a certain lack of trust after the changes to our energy policies, we've never sought to harm any company. Every investor should recover their investment, not just recover it, but also have a right to the profits. We'll always guarantee that." Brazil, under an agreement reached earlier this year with Bolivia, will receive US$112 million for the two plants the Bolivian government nationalized, Dow Jones relates. President Lula also signed agreements to give loans for farm machinery and boost cooperation between Brazilian and Bolivian universities, Reuters states. * * * 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 =========== AMERICAN AIRLINES: Recalls 247 TWA Furloughed Flight Attendants --------------------------------------------------------------- American Airlines is sending recall notices to 247 furloughed flight attendants to address anticipated staffing needs and projected attrition for 2008. This recall is comprised of former TWA flight attendants. "American is thrilled to have recalled more than 900 flight attendants this year, and we are very happy to welcome this latest group back to service in 2008," said American Airlines' Vice President for Onboard Service, Lauri Curtis. "We are eager for these flight attendants to join their colleagues in providing our customers the best possible onboard experience." The flight attendants who will accept the recall and meet all requirements will be eligible to return to service in March 2008. Since 2003, American has conducted seven flight attendant recalls, contacting more than 2,100 American Airlines and former TWA furloughed flight attendants. About American Airlines Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. American Airlines flies to Belgium, Brazil, Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 15, 2007, Fitch Ratings affirmed the debt ratings of AMR Corp. and its principal operating subsidiary American Airlines, Inc., as: AMR Corp. -- Issuer Default Rating at 'B-'; -- Senior unsecured debt at 'CCC'/RR6'; American Airlines -- Issuer Default Rating at 'B-'; -- Secured bank credit facility at 'BB-/RR1'. Fitch says the rating outlook for both AMR Corp. and American has been revised to positive from stable. AMERICAN AIRLINES: Names K. Stache as VP & General Sales Manager ---------------------------------------------------------------- American Airlines has named Kurt Stache as its Vice President and General Sales Manager. Mr. Stache will be responsible for all of the airline's sales activities worldwide with sales organizations throughout its network reporting to him. Mr. Stache, who has been with American since 1995, served most recently as President -- AAdvantage Marketing Programs, a position he held since 2004. AAdvantage was the world's first frequent flyer program and is the world's largest. "Kurt brings a wealth of airline experience to our global sales organization," said American Airlines' Executive Vice Marketing President, Dan Garton, to whom Mr. Stache will report. "His background, business acumen and people skills these past 12 years at American made him the clear-cut choice for the job." Prior to his AAdvantage position, Mr. Stache was Managing Director for International Revenue Management, responsible for pricing and yield management for the airline's international markets worldwide. He also served in several positions in American's sales and finance groups, including Airline Profitability Manager. Mr. Stache speaks three languages, including German and Spanish. He lived and worked in Central America and Europe prior to joining American Airlines. He received a Bachelor of Science degree in Finance from Santa Clara University in California and holds an MBA degree from Harvard Business School. Mr. Stache, his wife and children reside in Colleyville, Texas. About American Airlines Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. American Airlines flies to Belgium, Brazil, Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 15, 2007, Fitch Ratings affirmed the debt ratings of AMR Corp. and its principal operating subsidiary American Airlines, Inc., as: AMR Corp. -- Issuer Default Rating at 'B-'; -- Senior unsecured debt at 'CCC'/RR6'; American Airlines -- Issuer Default Rating at 'B-'; -- Secured bank credit facility at 'BB-/RR1'. Fitch says the rating outlook for both AMR Corp. and American has been revised to positive from stable. BANCO DO BRASIL: May Raise BRL3.44 Bil. from Secondary Offering --------------------------------------------------------------- Banco do Brasil shareholders could raise about BRL3.44 billion through a secondary public offering on the Sao Paulo stock exchange Bovespa, Business News Americas reports. According to BNamericas, this is possible if Banco do Brasil places a 13.1-million-share "supplementary lot." Banco do Brasil said in a statement that the offering raised some BRL3.06 billion from the sale of about 105 million shares at BRL29.25 each. BNamericas relates that Banco do Brasil initially offered 87.2 million shares -- 82.8% from BNDESpar, and the rest from Banco do Brasil worker pension fund Previ. Banco do Brasil then offered an additional lot of 17.4 million shares after the first round. The bank could still place a supplementary lot of up to 15% of the offering. The report says the shares started trading on Bovespa's Novo Mercado index on Dec. 17, 2007, under the ticker BBAS3. Banco do Brasil has until June 2009 to increase its "free float" to 25% and comply with Novo Mercado requirements, BNamericas reports. A secondary share offering in June 2006 raised Banco do Brasil's free float to 14.8% from 6.90%. BNamericas notes that these entities underwrote the operation: -- Banco do Brasil's investment banking arm BB Investimentos, -- UBS Pactual, -- Deutsche Bank, -- Banif Investment Banking, -- Espirito Santo Investment, -- Banco do Nordeste (BNB), and -- Safra. BNDESpar and Previ had said in July 2007 that they would sell up to 5% of their Banco do Brasil shares, BNamericas states. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and over 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. As reported on May 22, 2007, Standard & Poor's Ratings Services raised its long-term foreign currency counterparty credit rating on Brazilian government-related entity Banco do Brasil to 'BB+' from 'BB', after Brazil's foreign currency sovereign credit rating was upgraded to BB+. BANCO NACIONAL: Grants BRL56.7-Million Loan for Salto Project ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has approved a BRL56.7 million financing to Salto Jauru Energetica S/A for the construction of the Small Hydroelectric Power Plant Salto. The plant, in Mato Grosso, will have generation capacity of 19 megawatts and an associated transmission line for connection with the electric distribution system of Centrais Eletricas Matogrossenses. The bank's loan is equivalent to 74.4% of the total investment of BRL71.7 million. Among the benefits of the project is the increased offer of electrical power with low environmental impact and the diversification of the Brazilian energetic matrix, with increased participation of alternative energy sources. Further to this, the project created 450 direct and 1.5 thousand indirect jobs during the construction phase. The plant will be in operation in 2008. This year, BNDES has already approved 21 PCH projects, which add up to a generation capacity of 487 MW. The financing totals BRL1.6 billion, which would allow a total investment of BRL2.2 billion. Salto Jauru belongs to Brascan group, now with the new name Brookfield Power, which will be responsible for 25.6% of the total BRL76.2 million investment. The remaining 74.4% will be financed by BNDES. The group has been in Brazil since 1899 and has 17 thousand employees (direct and indirect), and focuses on energy, real estate and infrastructure sectors. The investments in energy are concentrated in Brascan Energetica S/A, which operates 14 PCH's in the Country. Environment The implementation of the plant will imply the execution of environmental programs and measures to mitigate and compensate the impact of the project (the reservoir to be built is small, with 79 hectares to be flooded), as conservation of the fauna and flora, compensation and environmental education and monitoring of the water quality. 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: Directors Okay BRL2-Mln Financing to Taum Chemie ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social's directors has approved BRL2 million financing to Taum Chemie - Industria e Comercio de Produtos Qu�micos S.A. The objective of the project is the implementation of a unit for the manufacturing of a highly concentrated organophilic clay gel, which, nowadays is not produced in Brazil. The product is a basic raw material used by the paint and cosmetics industries for use in their liquid products, to prevent the separation of the solids and deposits on the bottom of the packaging. The financing is inserted within the scope of Inovacao Producao [Production Innovation] program and the bank's support is equivalent to 91.1% of total investments, of BRL2.3 million. This support will be divided into two modalities: one part will be in the form of a BRL1.1 million loan, while the other will be carried out upon shareholding participation, which adds up to BRL1 million, through BNDESPAR. The creation of 20 new direct jobs is projected during the initial phase of operation. Organophilic clay is used by the paint industry, in all its solvent based product lines, either destined to civil construction, the automobile industry, road signs or art. According to the Brazilian Association for Paint Manufacturers, Brazil is one of the five largest markets for paint, worldwide. In 2007, the volume produced was around 1 billion liters of paint and the total invoicing reached BRL4.7 billion. The estimate is for an increase above 7% in the paint segment, in 2008. The cosmetics industry, on its turn, will use the additive in its nail polish, creams and sun block product lines. Currently, there is no gel in the market that can be used universally, but a specific product must be used for each application. The raw material is responsible for the stabilization of the liquid state of paint and nail polish during their validity term. Without the addition of clay, these products would become useless a few days after being manufactured, because of decantation, that is, the separation of solids (pigments and mass), with the subsequent formation of precipitates, which are hard to mix in again, as they settle at the bottom of the packaging. The raw material also controls the viscosity of the paint while it is applied. Worldwide, there are few manufacturers of organophilic clay, which is supplied in micro granules, having distinct qualities, each of which destined to a certain effect. The gel obtained from these qualities does not allow obtaining high concentrations, aggravated by the fact that each type of paint would need a different kind of organophilic clay. This requires the paint industry to manufacture various gels. To achieve a highly concentrated gel that allows for universal application, both the organophilic clay, as well as the gel formula and the respective production processes were developed by Taum Chemie. The new product will enable for the substitution of imports, besides meaning an innovation for the Brazilian paint sector. The industrial plant is designed to produce 4,600 tons of concentrated gel per year. This quantity, currently enough to supply about 30% of the Brazilian organophilic clay market, will be produced after five years of operation. Taum Chemie - Industria e Comercio de Produtos Qu�micos S.A. was incorporated in 2005 and has its headquarters in the city of Monte Mor, in the metropolitan region of Campinas. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007, respectively. BRASKEM SA: Sells Petroflex Shares to German Company Lanxess ------------------------------------------------------------ Braskem S.A., jointly with Uniao de Industrias Petroquimicas S.A. (Unipar) and other parties, has entered into a Share Purchase Agreement on Dec. 13, 2007, with the German company Lanxess Deutschland GmbH for the sale of Petroflex Industria e Comercio S.A shares. The amount of shares to be sold add up to 17,102,002 common shares and 7,416,602 preferred shares representative of 72.38% of total common shares and 69.68% of capital stock of Petroflex Industria, at a total price of BRL526,680,000, which corresponds up to BRL22.86 per common share and BRL18.29 per preferred class "A" share. The company is selling its total share interest, which represents 33.57% of Petroflex Industria common shares and 33.46% of its preferred shares. Upon the conclusion of this transaction, the company will have a cash inflow of approximately BRL251 million and an estimated gain, before income tax, of BRL110 million, based on the accounting value as of Nov. 30, 2007. The transfer of the shares and the corresponding cash inflow will occur within approximately six months. According to Braskem Chief Executive Officer, Jose Carlos Grubisich, "The conclusion of the sale of Braskem's share interest in Petroflex represents not only an important value creation for Braskem, with a cash inflow of BRL251 million and gain of BRL110 million, but reinforces the focus on our strategic target -- the thermoplastic resins business -- while keeping our position as main raw material supplier to the synthetic rubber production chain in Latin America through long- term contracts for the supply of butadiene." Petroflex Industria is the largest producer of synthetic rubber in Latin America with annual production capacity of 442,000 tons and plants located in the states of Rio de Janeiro, Pernambuco and Rio Grande do Sul. About Braskem Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 10, 2007, Standard & Poor's Ratings Services has raised its long-term corporate credit rating on Brazilian petrochemical company, Braskem S.A. to 'BB+' from 'BB'. At the same time, the rating was removed from CreditWatch, where it was placed with positive implications on Nov. 26, 2007. The Brazil National Scale credit rating on the company was also raised to 'brAA+' from 'brAA'. S&P's outlook is stable. CA INC: Fitch Affirms Issuer Default & Debt Ratings at BB+ ---------------------------------------------------------- Fitch Ratings has affirmed these ratings of CA, Inc.: -- Issuer Default Rating at 'BB+'; -- Senior unsecured revolving credit facility at 'BB+'; -- Senior unsecured debt at 'BB+'. Additionally, Fitch has revised the Rating Outlook on CA Inc. to Stable from Negative. Fitch's actions affect approximately US$2.8 billion of total debt, including the company's US$1.0 billion revolving credit facility. The Stable Rating Outlook reflects the company's consistent operating and financial performance and Fitch's expectation that the company would utilize its financial flexibility provided by excess cash and free cash flow to finance any intermediate acquisition, dividends or share buyback activity. Fitch believes that significant near-term acquisition activity appears limited given management's current focus on integrating previous acquisitions and improving operating efficiency. Also considered in revising the Rating Outlook to Stable is the company's successful refinancing and extension of its revolving credit facility to August 2012 and its progress in resolving outstanding accounting issues, including complete resolution of all material weaknesses. Positive rating actions could occur if: -- No significant capital structure changes occur over the next year with a commitment to limit acquisition and share buybacks to excess cash on hand and free cash flow; -- Credit protection measures trend positively through growth in operating profits and/or debt reduction; -- The company's recurring revenue model limits the potential financial stress from a less favorable macro- economic environment, particularly in the U.S., which accounted for approximately 54% of the company's total revenue over the last twelve months. Negative rating actions could occur if: -- The company's financial performance declines materially in the event of an economic downturn in the U.S., particularly for the financial services vertical, indicating a less resilient business model relative to Fitch's expectations; -- Significant debt-financed acquisitions with considerable integration risk and/or unrelated to core business. Ratings concerns center on a slowing and more challenging mainframe market, the likelihood for additional albeit less significant restructuring costs, and strong competition from larger companies with strong financial flexibility. Fitch believes the company's lack of participation in the software industry's ongoing consolidation activity could constrain longer term revenue growth rates. The ratings continue to be supported by the company's: i) solid recurring revenue profile, driven by the high barriers to entry with significant 'switching' costs associated with the software industry; ii) consistent annual free cash flow approximating US$750 million to US$1 billion; and iii) size, diversity, and quality of the company's installed base (approximately 98% of Fortune 500) and depth of product line. Credit protection measures remain solid for the rating category and Fitch expects that they will remain flat over the intermediate term. Total debt to cash flow from operations was 2.0 times for the latest twelve months ended Sept. 30, 2007, compared to 2.4 for the fiscal year ended March 31, 2007, and 1.3 for fiscal year 2006. Fitch believes liquidity at Sept. 30, 2007 was solid and supported by: i) approximately US$1.9 billion of cash and cash equivalents (approximately 66% overseas); ii) US$1 billion senior unsecured revolving credit facility due August 2012, of which approximately US$250 million is undrawn and available; and iii) aforementioned consistent annual free cash flow. Free cash flow for fiscal year 2008 ending March 31, 2008 is anticipated to be adversely impacted by cash restructuring and higher cash tax payments but should increase going forward as the company's restructuring initiatives begin to translate into higher profitability and capital spending on the company's global SAP implementation trends downward. Total debt as of Sept. 30, 2007 was approximately US$2.6 billion, consisting primarily of: i) US$750 million of borrowings outstanding under the company's revolving credit facility; ii) US$350 million senior notes due April 2008; iii) US$460 million convertible senior notes due 2009; iv) US$500 million senior notes due 2009; and v) US$500 million senior notes due 2014. Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. CAMARGO CORREA: Forms Joint Venture with Unique & Gestion --------------------------------------------------------- Camargo Correa has formed a joint venture with Swiss Zurich airport operator Unique and Chilean airport consortium Gestion e Ingenieria IDC to construct and run airports in Latin America, Business News Americas reports, citing Unique. BNamericas relates that Camargo Correa will control 80 of the joint venture A-Port. Unique will hold a 15% stake in A-Port, while IDC will have a 5% stake. The joint venture will be based in Sao Paulo and will be listed on the Sao Paulo stock exchange Bovespa after a startup period of up to five years. A-Port will invest in the construction and operation of airports and in airport-related infrastructures in Latin America. Unique told BNamericas that it, along with IDC, already operates these Chilean airports: -- Puerto Montt, -- La Serena, and -- Calama. Unique said it is involved in management contracts for the operation of Colombian and Honduran airports. These projects will also be taken into the joint venture, BNamericas notes. Brazil-Arab News Agency notes that the joint venture will invest in airport infrastructure expansion projects and in airport management concessions. Camargo Correa said in a press statement that the joint venture member companies are references in their countries of operation Unique invests about US$2 million in A-Port, BNamericas states. About Unique Unique is a publicly listed company. With operations in airports in Switzerland and Latin American airports, Unique, along with Gestion e Ingenieria IDC, owns 17% of the Bangalore International Airport and is involved in the planning and construction of a new airport in India. About Gestion e Ingenieria Headquartered in Chile, Gestion e Ingenieria was established in 1994 by society Estorial Limitada. It pioneered participation in airport concession programs in Chile. About Camargo Correa Camargo Correa SA is one of the largest private industrial conglomerates in Brazil. The company is a holding company with interests in cement, engineering and construction, textiles, footwear and sportswear manufacturing. It also owns non- controlling equity interests in the energy, transportation (highway concessions) and steel businesses. During the last 12 months through June 2007, Camargo Correa had net sales of BRL9.2 billion and EBITDA of BRL1.4 billion. As reported in the Troubled Company Reported-Latin America on Nov. 27, 2007, Fitch Ratings affirmed the foreign currency and local currency Issuer Default Ratings of Camargo Correa S.A. at 'BB'. Fitch also affirmed the 'BB' rating on the US$250 million senior unsecured bonds due 2016 issued by CCSA Finance Limited (a special-purpose vehicle wholly-owned by Camargo and incorporated in the Cayman Islands), which is unconditionally guaranteed by Camargo Correa. In addition, Fitch has also upgraded Camargo's national debt rating to 'AA-(bra)' from 'A+(bra)'. Fitch said the rating outlook is stable. CLEAR CHANNEL: Launches Tender Offer & Solicitation for Notes ------------------------------------------------------------- Clear Channel Communications Inc. has commenced a cash tender offer and consent solicitation for its outstanding US$750,000,000 principal amount of the 7.65% Senior Notes due 2010 (CUSIP No. 184502AK8) (the CCU Notes) on the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated Dec. 17, 2007 (the CCU Offer to Purchase). The company also announced that its subsidiary, AMFM Operating Inc., is commencing a cash tender offer and consent solicitation for the outstanding US$644,860,000 principal amount of the 8% Senior Notes due 2008 (CUSIP No. 158916AL0) on the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated Dec. 17, 2007. The CCU Tender Offer and the AMFM Tender Offer are being made in connection with the previously announced merger with BT Triple Crown Merger Co., Inc. The completion of the Merger and the related debt financings are not subject to, or conditioned upon, the completion of the Tender Offers or the related consent solicitations or the adoption of the proposed amendments with respect to any Notes contemplated by the CCU Offer to Purchase and the AMFM Offer to Purchase. The total consideration for each US$1,000 principal amount of CCU Notes and AMFM Notes validly tendered and accepted for purchase by Clear Channel or AMFM, as applicable, pursuant to the applicable Offer to Purchase will be the price (calculated as described in the applicable Offer to Purchase) equal to: (i) the sum of: (a) the present value, determined in accordance with standard market practice, on the scheduled payment date of US$1,000 on the maturity date for the applicable Notes plus (b) the present value on the scheduled payment date of the interest that would be payable on, or accrue from, the last interest payment date prior to the scheduled payment until the applicable maturity date for such Notes, in each case determined on the basis of a yield to such maturity date equal to the sum of: (A) the yield to maturity on the U.S. Treasury Security specified in the table below as calculated by Citi, as lead dealer manager, in accordance with standard market practice, based on the bid-side price of such reference security as of 2:00 p.m., New York City time on the second business day immediately preceding the applicable tender offer expiration date for the applicable Notes (which, for both the CCU Notes and the AMFM Notes is currently expected to be Jan. 14, 2008), unless modified by Clear Channel or AMFM, as applicable, in its sole discretion, as displayed on the page of the Bloomberg Government Pricing Monitor or any recognized quotation source selected by Citi, as lead dealer manager, in its sole discretion if the Bloomberg Government Pricing Monitor is not available or is manifestly erroneous, plus (B) the applicable spread (as shown in the table below), minus (ii) accrued and unpaid interest to, but not including, the scheduled payment date. The total consideration includes a consent payment of US$30.00 per US$1,000 principal amount of the Notes tendered which will be payable only in respect of the Notes purchased that are tendered on or prior to the applicable consent payment deadline. Holders who tender their Notes after the consent payment deadline will not be eligible to receive the consent payment and will receive the applicable total consideration less the consent payment. The consent payment deadline for both the CCU Notes and the AMFM Notes is 5:00 p.m. New York City time, on Dec. 31, 2007, unless, in either case, earlier terminated or extended. Both Tender Offers will expire at 8:00 a.m., New York City time, on Jan. 16, 2008, unless, in either case, earlier terminated or extended. In conjunction with the Tender Offers, Clear Channel and AMFM are also soliciting consents from the holders of their respective Notes to effect amendments to eliminate substantially all of the restrictive covenants and the covenants regarding mergers and consolidations, eliminate certain events of default, and modify or eliminate certain other provisions, including certain provisions relating to defeasance. If adopted, the proposed amendments in connection with the CCU Tender Offer will not amend any of the terms of any of Clear Channel's securities other than the CCU Notes. A holder cannot tender its Notes without delivering a corresponding consent or vice versa. The proposed amendments to Notes and provisions of the indenture applicable to the Notes are subject to consents from holders of a majority of the outstanding principal amount of the applicable Notes. Tendered Notes, including the related consents, may be withdrawn at any time prior to Dec. 31, 2007, but not thereafter in the case of the CCU Notes and at any time prior to the receipt of the requisite consents and the execution of the applicable supplemental indenture, but not thereafter in the case of the AMFM Notes. The tender offers and consent solicitations relating to the Notes are made upon the terms and conditions set forth in the CCU Offer to Purchase and the AMFM Offer to Purchase, as applicable and the related Consent and Letter of Transmittal. Each of the Tender Offers is conditioned upon the consummation of the Merger and the satisfaction of certain other customary conditions as described in the applicable Offer to Purchase. The completion of the CCU Tender Offer is not conditioned upon the receipt of the requisite consents or the adoption of the proposed amendments. The AMFM Tender Offer is conditioned upon the receipt of the requisite consents. If any of the conditions are not satisfied or waived, CCU and AMFM are not obligated to accept for payment, purchase or pay for, and may delay the acceptance for payment of, any tendered Notes, and may even terminate the Tender Offers. Further details about the terms and conditions of the tender offers and the consent solicitations are set forth in the CCU Offer to Purchase and the AMFM Offer to Purchase. Clear Channel has retained Citi to act as the lead dealer manager for the tender offers and lead solicitation agent for the consent solicitations and Deutsche Bank Securities Inc. and Morgan Stanley & Co. Incorporated to act as co-dealer managers for the tender offers and co-solicitation agents for the consent solicitations. Global Bondholder Services Corporation is the Information Agent for the tender offers and the consent solicitations. Questions regarding the transaction should be directed to Citi at 800-558-3745 (toll-free) or 212-723-6106 (collect). Requests for documentation should be directed to Global Bondholder Services Corporation at 212-430-3774 (for banks and brokers only) or 866-924-2200 (for all others toll- free). Clear Channel-Triple Crown Merger In connection with the proposed Merger of Clear Channel with and into BT Triple Crown Merger Co, Inc. pursuant to the terms and conditions of that certain Agreement and Plan of Merger, dated as of Nov. 16, 2007, by and among Mergerco, B Triple Crown Finco, LLC, T Triple Crown Finco, LLC, CC Media Holdings, Inc. (formerly BT Triple Crown Capital Holdings III, Inc., CC Media) and Clear Channel, as amended by Amendment No. 1, dated as of April 18, 2007 and by Amendment No. 2, dated as of May 17, 2007, Clear Channel and CC Media have filed a joint proxy statement/prospectus dated Aug. 21, 2007 with the U.S. Securities and Exchange Commission. Investors and security holders may obtain a free copy of the definitive proxy statement and other documents filed by Clear Channel and CC Media at the U.S. Securities and Exchange Commission's web site at http://www.sec.gov/ The definitive proxy statement and such other documents may also be obtained for free from Clear Channel by directing such request to: Clear Channel Communications, Inc. Investor Relations Department 200 East Basse San Antonio, TX 78209 Tel: (210) 822-2828 As previously announced by Clear Channel, the closing of the Merger is expected to occur during the first quarter 2008. The closing of the Merger is subject to the receipt of regulatory approvals and conditions, which are summarized in Clear Channel's proxy statement. Concurrently with the consummation of the Merger, Clear Channel expects to obtain US$18,525 million of new senior secured credit facilities, to be available to the Company and certain of its subsidiaries as borrowers. The senior secured credit facilities are expected to include: (i) a US$1.25 billion term loan A facility, a US$12.65 billion term loan B facility and a US$2.0 billion (which is expected to be reduced by the amount of net cash proceeds from certain specified asset sales received prior to the closing of the Merger) term loan C facility to be funded at the closing of the Merger, (ii) a US$2.0 billion revolving credit facility and (iii) a US$625 million delayed draw term loan facility Clear Channel and one or more of Clear Channel's subsidiaries would be the borrowers under a separate receivables-backed revolving credit facility with availability of up to US$1.0 billion. To the extent that availability under the company's receivables-backed credit facility is less than US$750 million at closing, the term loan A facility would be increased by a corresponding amount. Clear Channel expects to issue US$2.6 billion in aggregate principal amount of new senior unsecured notes, including: (i) US$1.1 billion in senior cash pay notes and (ii) US$1.5 billion in senior pay-in-kind option notes (the PIK Toggle Notes and together with the Cash Pay Notes, the New Senior Notes). If US$1.1 billion in aggregate principal amount of Cash Pay Notes are not issued, the company would incur up to US$1.1 billion (less the amount of the Cash Pay Notes, if any, issued on or prior to the closing of the merger) in aggregate principal amount of loans with an increasing interest rate under a new senior unsecured cash pay bridge facility. If US$1.5 billion in aggregate principal amount of PIK Toggle Notes are not issued, the company would incur up to US$1.5 billion (less the amount of the PIK Toggle Notes, if any, issued on or prior to the closing of the merger) in aggregate principal amount of loans with an increasing interest rate under a new senior unsecured pay-in-kind option bridge facility. The new senior secured credit facilities are expected to be guaranteed by Clear Channel's direct parent entity and by each of Clear Channel's existing and future wholly owned material domestic restricted subsidiaries, subject to certain exceptions, and such subsidiaries would also guarantee the receivables- backed revolving credit facility and the New Senior Notes. Clear Channel's existing senior notes are not guaranteed by Clear Channel's subsidiaries and the existing senior notes that remain outstanding after the merger and the new debt financing will not be entitled to guarantees by Clear Channel's subsidiaries. The new senior secured credit facilities are expected be secured by: (a) a first-priority pledge of the capital stock of Clear Channel, (b) the capital stock of future material wholly-owned domestic license subsidiaries that are not restricted subsidiaries under the indenture governing its existing senior notes, (c) first-priority security interests in certain assets of Clear Channel and the guarantor subsidiaries that will not require Clear Channel's existing senior notes that remain outstanding to be equally and ratably secured under the indenture governing such notes, and (d) if requested by the arrangers of the senior secured credit facilities, a second-priority lien on the accounts receivable and related assets that would secure the receivables-backed credit facility on a first-priority basis. With respect to any additional collateral, the senior secured credit facilities documentation would provide that the amount of indebtedness to be secured by such collateral will be limited at all times to an amount less than the amount that would require the Clear Channel's existing senior notes that remain outstanding to be equally and ratably secured under the indenture governing such notes. The documentation for the senior secured credit facilities and the receivables-backed revolving credit facility would include customary provisions, including mandatory prepayments, incremental facilities, representations and warranties, covenants and events of defaults. The senior secured credit facilities are also expected to include a maintenance covenant that would require Clear Channel to maintain a specified ratio of the consolidated senior secured net debt to consolidated adjusted EBITDA as determined under the senior secured credit facilities documentation. The New Senior Notes would include customary provisions, including covenants and events of defaults. The New Senior Notes will be offered in the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons in accordance with Regulation S under the Securities Act. The New Senior Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws. Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 27, 2007, Fitch Ratings said it expects to downgrade Clear Channel Communications Inc.'s Issuer Default Rating to 'B' from 'BB-'. The rating outlook is expected to be stable. Existing ratings remain on rating watch negative pending the closing of the merger transaction and review of final documentation. MARFRIG FRIGORIFICOS: S&P Affirms Corporate Credit Rating at B+ --------------------------------------------------------------- Standard & Poor's Ratings Services has revised the outlook on Brazil-based meat processing company Marfrig Frigorificos e Comercio de Alimentos S.A. to negative from stable. At the same time, S&P affirmed its 'B+' corporate credit rating on the company and its US$375 million notes due 2016. Pro forma fiscal 2007, S&P expects the company to report about US$800 million of total debt. "The rating action reflects Marfrig's lower-than-expected cash flow generation, leading to weak credit metrics for the rating category, associated with the company's aggressive growth strategy in 2007 and beyond. In our opinion, the company will report negative discretionary cash flow in the future, limiting the potential improvement to its financial profile," said S&P's credit analyst Vivian Zietemann. Negative rating factors are partly offset by the company's improved business diversification, its relatively good distribution of sales in both local and external markets, and the company's competitive cost position with Brazilian beef producers. The negative outlook reflects the company's weakening financial policies and cash flow generation in the current year. The negative outlook also reflects S&P's expectation that the company will continue to report a highly leveraged capital structure. The ratings could be lowered if the company is not able to revise the weakening trend of its cash flow coverage indicators (such as a funds from operations-to-total debt ratio consistently between 5%-7%). S&P believes that cash flow improvements could derive from the successful consolidation of acquired assets or a slowdown of its investment program. The outlook could be revised to stable if the company is able to deliver stronger-than-projected EBITDA margins in the high teens, but also stronger cash flow generation with a FFO-to- total debt ratio consistently above 10%. Headquartered in Sao Paulo, Brazil, Marfrig is one of the largest beef processing companies in Brazil. With processing plants in Brazil, Argentina and Uruguay, Marfrig processes, prepares packages and delivers fresh, chilled and processed beef products to customers in Brazil and abroad, with approximately 50% of its sales derived from exports. Along with its beef products, the company also delivers additional food products that it imports or acquires in the local market. NAVISTAR INT'L: Unit Names Steve Bruford as Vice President ---------------------------------------------------------- International Truck and Engine Corporation, a subsidiary of Navistar International Corporation, has appointed Steve Bruford as its vice president of global product creation for its truck group. Bruford will provide engineering and product development leadership for all of Navistar's truck product lines and will reside at Navistar's Truck Development and Technology Center in Fort Wayne, Ind. He will report to Ramin Younessi, vice president, business and product operations. "Steve brings to our company a distinguished reputation in the field of automotive and commercial vehicle engineering," said Dee Kapur, president, Truck Group, International Truck and Engine Corporation. "His extensive product development knowledge and experience in global program management will help us continue to develop great products for customers all over the world." With more than 29 years of global product development experience in all fields of automotive engineering and commercial vehicle design as well as the defense industry, Bruford has performed in a number of executive level assignments prior to joining Navistar. He has served in supplier roles as well as a vertically integrated OEM and holds 19 design patents. Bruford received his bachelor's degree in mechanical engineering from Loughborough University in Loughborough, England. In addition, he holds a master's in science from Hertfordshire University in Hatfield, England. About International Truck A wholly owned subsidiary of Navistar International Corporation (Other OTC: NAVZ), International Truck and Engine Corporation is a leading producer of medium trucks, heavy trucks, severe service vehicles, MaxxForce brand diesel engines, parts and service. International and its affiliates sell their products, parts and services through a network of nearly 1,000 dealer outlets in the United States, Canada, Brazil and Mexico and from more than 60 dealers in 90 countries throughout the world. About Navistar International Based in Warrenville, Illinois, Navistar International Corp. (NYSE:NAV) -- http://www.nav-international.com/-- is the parent company of Navistar Financial Corp. and International Truck and Engine Corp. The company produces International brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV market. The company also provides truck and diesel engine parts and service sold under the International brand. A wholly owned subsidiary offers financing services. The company has operations in Brazil, Iceland and India. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services said that its 'BB-' corporate credit ratings on North American truck and diesel engine producer Navistar International Corp. and subsidiary Navistar Financial Corp. remain on CreditWatch with negative implications, where they were placed on Jan. 17, 2006. NAVISTAR INT'L: Ratifies New Three-Year Contract w/ UAW Members --------------------------------------------------------------- The seven-week strike against International Truck and Engine Corporation, a subsidiary of Navistar International Corporation, ended on Dec. 16, 2007, as members of the United Auto Workers approved new three-year labor agreements that will yield operational flexibility and cost improvements at nine company locations. The contract was ratified by a majority of UAW members in a vote conducted this weekend. The new contracts take effect immediately and run until Oct. 1, 2010. "We expect the new agreements to result in operational and cost improvements at these facilities while maintaining a good quality of life for our employees and retirees," Dan Ustian, chairman, president and chief executive officer of Navistar, said. "This deal represents a positive step forward for these facilities." The agreements were ratified after more than two years of periodic negotiations between company and UAW leaders. The UAW chose to strike on Oct. 23, 2007, and the company utilized its diversified operations and resources effectively so that customers were unaffected by the UAW strike. "With extraordinary efforts and planning, we met all delivery schedules and as a result, we are well positioned as a business going forward," Mr. Ustian said. Navistar's preliminary unaudited manufacturing cash and marketable securities balance as of Oct. 31, 2007 was US$695 million. "We have maintained our focus on executing our business strategies," Mr. Ustian said. "We have the liquidity and lines of credit available to continue to fund our growth plans to capitalize on market opportunities. The new contract will help the company to reach its previously announced goals for 2009 revenues and operating segment margins." Outstanding products and a competitive cost structure will be the basis for Navistar's continued success, Mr. Ustian continued. "All our operations must be structured to succeed against any competitor and in any market condition. Our ability to compete effectively is important to both our shareholders and to our employees. True job security comes only through competitiveness." These summarizes some key competitive changes and provisions in the new contracts: * significant improvements in operational flexibility and cost structure, while maintaining operational improvements from prior contracts; * elimination of restrictive and costly minimum employment level requirements; * increased health care cost sharing; * ability to shed non-core work; * improved new hire package; * ability to close/sell specific locations if business needs dictate; and * "Living Operating Agreement" that facilitates ongoing improvements. In addition, the UAW has dropped all unfair labor practice charges previously filed with the National Labor Relations Board, which the UAW communicated were the basis of its strike. The UAW represents approximately 3,700 employees at nine International facilities in Indianapolis, Indiana (engine assembly and foundry), Melrose Park, Illinois (engine assembly and engine engineering), Springfield, Ohio (truck assembly), Atlanta, York (Pennsylvania) and Dallas (parts distribution centers) and Fort Wayne, Indiana (truck engineering). Total worldwide employment at the company is more than 16,000. About International Truck and Engine International Truck and Engine Corporation, a wholly owned subsidiary of Navistar International Corporation, produces medium trucks, heavy trucks, severe service vehicles, MaxxForce brand diesel engines, parts and service. International and its affiliates sell their products, parts and services through a network of nearly 1,000 dealer outlets in the United States, Canada, Brazil and Mexico and from more than 60 dealers in 90 countries throughout the world. About Navistar International Headquartered in Warrenville, Illinois, Navistar International Corporation (Other OTC: NAVZ) -- http://www.navistar.com/-- is a holding company whose wholly owned subsidiaries produce International(R) brand commercial trucks, MaxxForce brand diesel engines, IC brand school and commercial buses, and Workhorse brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service. Another wholly owned subsidiary offers financing services. The company has operations in Brazil, Iceland and India. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services said that its 'BB-' corporate credit ratings on North American truck and diesel engine producer Navistar International Corp. and subsidiary Navistar Financial Corp. remain on CreditWatch with negative implications, where they were placed on Jan. 17, 2006. SPANSION INC: Amends Merger Agreement with Saifun Semiconductors ---------------------------------------------------------------- Spansion Inc. and Saifun Semiconductors Ltd. boards of directors have executed an amendment to their merger agreement providing for an approximately US$31.4 million increase in the cash distribution, which would result in a cash distribution of approximately US$6.05 per share in cash based on Saifun Semiconductor's current capitalization. The cash distribution will be funded solely from Saifun's existing cash on hand prior to or on the closing of the transaction. The exchange ratio that each outstanding share of Saifun common stock would receive in the merger remains 0.7429 shares of Spansion common stock. In connection with this amendment, Saifun will send to its shareholders and file with the Securities and Exchange Commission additional solicitation materials. "We are very excited about this transaction as the combined company will be well positioned for future growth. Additionally, with the cash that will be acquired in the transaction, the combined company will be capitalized to further leverage Saifun's licensing business," said Spansion Inc president and Chief Executive Officer, Bertrand Cambou. "We also feel it is appropriate in this environment that Saifun shareholders receive a higher cash distribution." The special general meeting of Saifun shareholders called to obtain the shareholder approval necessary to complete the merger and all transactions contemplated under the amended merger agreement including the increased cash distribution will be held, as originally scheduled, on Dec. 20, 2007 at 4:00 p.m. Israel time. The record date for Saifun shareholders entitled to attend and vote at the Saifun special general meeting remains Nov. 11, 2007. Saifun notes that shareholders that have previously voted may either change their vote as a result of the amendment, or decide to leave their original vote unchanged, in which case their vote shall be seemed to refer to the amended merger agreement which includes the increased cash distribution amount as detailed above. The merger remains subject to satisfaction of customary closing conditions that include Israeli court approval, regulatory approvals and the Saifun shareholders' approval, and is expected to close in the first quarter of 2008. Saifun shareholders are reminded that their vote is very important. Any shareholder who has not yet voted is urged to vote 'FOR' the approval of the merger agreement as amended, the merger and the transactions the amended merger agreement contemplates, including the increased cash distribution. Saifun shareholders are advised that if they have any questions or need any assistance in the voting of their shares or if they need additional copies of Saifun's proxy materials, they should contact Saifun's proxy solicitor, Innisfree M and A Incorporated, toll-free at 888-750-5834 (United States and Canada) or 00800 7710 9971 (Europe and Israel). Additional Information About the Merger and Where to Find It Saifun Semiconductors has filed a Form 6-K with the SEC containing a definitive proxy statement and other relevant materials in connection with the proposed merger. On or about Nov. 13, 2007, the definitive proxy statement was mailed to Saifun shareholders of record as of the close of business on Nov. 11, 2007. Saifun security holders are urged to read the definitive proxy statement and the other relevant materials because they contain, among other things, important information about the merger, the merger agreement, the cash distribution and the special general meeting of Saifun shareholders, as well as important information about Saifun and Spansion. The definitive proxy statement and other relevant materials, and any other documents filed by Spansion or Saifun with the SEC, may be obtained free of charge at the SEC's web site at http://www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Spansion by contacting its Investor Relations, Bob Okunski, (408) 616-1117. Investors and security holders may obtain free copies of the documents filed with the SEC by Saifun by contacting KCSA Worldwide, Lee Roth, (212) 896-1209. About Spansion Spansion Inc. -- http://www.spansion.com/-- (Nasdaq: SPSN), headquartered in Sunnyvale, California, and parent of Spansion LLC, is a leading provider of flash memory semiconductors that's after its initial public offering in December 2005, is owned approximately 38% by Advanced Micro Devices and 25% by Fujitsu Limited. The company has European operations in France, Asia-Pacific facilities in Japan, China, Malaysia and Thailand, as well as sales offices in Latin American countries including Brazil and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on May 18, 2007, Fitch Ratings has assigned a rating of 'B+/RR2' to Spansion Inc.'s US$550 million senior secured floating- rate notes due 2013 issued pursuant to Rule 144A, the net proceeds from which will be used to repay the outstanding obligations under the company's US$500 million senior secured term loan facility due 2012. The remainder of net proceeds will be used for general corporate purposes, including capital expenditures and working capital. Fitch has withdrawn the 'BB-/RR1' rating of the approximately US$500 million senior secured term loan facility in anticipation of Spansion's repayment of this tranche of debt. Additionally, Fitch has downgraded the US$175 million senior secured revolving credit facility due 2010 to 'B+/RR2' from 'BB-/RR1.' In conjunction with the refinancing, Fitch has affirmed these ratings: -- Issuer Default Rating of 'B-'; -- US$250 million of 11.75% senior unsecured notes due 2016 at 'CCC+/RR5'; and -- US$207 million of 2.25% convertible senior subordinated debentures due 2016 at 'CCC/RR6'. Fitch said the rating outlook remains negative. Approximately US$1.1 billion of total debt is affected by Fitch's actions. ULTRAPAR PARTICIPACOES: Says Form F-4 Statement Is Effective ------------------------------------------------------------ Ultrapar Participacoes S.A. informs that the Registration Statement on Form F-4, filed in connection with a share exchange transaction, wherein the preferred shares of Refinaria de Petroleo Ipiranga S.A., Distribuidora de Produtos de Petroleo Ipiranga S.A., and Companhia Brasileira de Petroleo Ipiranga, will be exchanged for preferred shares of Ultrapar, was declared effective by the United States Securities and Exchange Commission on Dec. 17, 2007. The prospectus will be made available on the companies' websites. The Special Shareholders Meetings of between the three petroleum companies and Ultrapar Participacoes to deliberate about the Share Exchange will be held on Dec. 18, 2007. Andre Covre Chief Financial and Investor Relations Officer Ultrapar Participacoes S.A. This document relates to a proposed transaction involving Ultrapar Participacoes S.A., Refinaria de Petroleo Ipiranga S.A., Distribuidora de Produtos de Petroleo Ipiranga S.A. and Companhia Brasileira de Petroleo Ipiranga (Target Companies). In connection with the proposed transaction, Ultrapar has filed with the Securities and Exchange Commission a registration statement on Form F-4 (File no. 333-146406, the Registration Statement) to register Ultrapar preferred shares to be issued in the proposed transaction and that includes a prospectus of Ultrapar. Ultrapar has also filed, and intends to continue to file, additional relevant materials with the SEC. The Registration Statement and the related prospectus contain important information about Ultrapar, the Target Companies, the proposed transaction and related matters. Investors will be able to obtain copies of the offering document and other documents from the SEC's Public Reference Room at 450 Fifth Street N.W., Washington D.C., 20549. Please call the SEC at 1-800-SEC- 0330 for further information on the Public Reference Room. The documents may also be obtained from the website maintained by the SEC at http://www.sec.gov,which contains reports and other information regarding registrants that file electronically with the SEC. Ultrapar has also filed certain documents with the Comissao de Valores Mobiliarios, the Brazilian securities commission, which are available on the CVM's website at http://www.cvm.gov.br. In addition, documents (including any exhibits) filed with the SEC or CVM by Ultrapar will be available free of charge from the Investor Relations office of Ultrapar Participacoes S.A., located at Avenida Brigadeiro Luis Antonio, 1343, 9 degree Andar Sao Paulo, SP, Brazil 01317- 910, tel: 011-55-11-3177-6695. About Ultrapar Participacoes Ultrapar Participacoes S.A. (NYSE: UGP) (BOVESPA: UGPA4) is a company with two main operations: LPG distribution (through its fully-owned subsidiary Ultragaz Participacoes Ltda.) and chemical production (through its also fully-owned subsidiary Oxiteno S.A.). A third smaller but growing business is the transportation and storage of chemicals and fuels, Ultracargo Operacoes Logisticas e Participacoes Ltda., which completes Ultrapar's business portfolio and reinforces the trend for further business diversity in the long run. * * * In November 2005, Standard & Poor's Ratings Services assigned its 'BB+' senior unsecured debt rating to the 10-year notes issuance by LPG International Inc., a wholly owned subsidiary of Ultrapar Participacoes S.A., in the amount of US$250 million. At the same time, the 'BB+' long-term corporate credit ratings on Ultrapar, a Brazilian company with operations in liquefied petroleum gas (LPG) distribution, chemical production, and integrated logistics, were affirmed. S&P said the outlook is stable. WEIGHT WATCHERS: Declares US$0.175 Per Share Quarterly Dividend --------------------------------------------------------------- Weight Watchers International, Inc. Board of Directors has declared its quarterly cash dividend of US$0.175 per share, which corresponds to an annual dividend rate of US$0.70 per share. This quarterly dividend will be payable on Jan. 11, 2008, to shareholders of record at the close of business on Dec. 28, 2007. Headquartered in New York City, Weight Watchers International Inc. (NYSE: WTW) -- http://www.weightwatchersinternational.com/ -- provides weight management services, with a presence in 30 countries around the world, including Brazil, the Netherlands, and New Zealand. The company serves its customers through Weight Watchers branded products and services, including meetings conducted by Weight Watchers International and its franchisees. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 10, 2007, Weight Watchers International Inc.'s consolidated balance sheet at June 30, 2007, showed US$1.04 billion in total assets and US$2.04 billion in total liabilities, resulting in a US$991,266 total stockholders' deficit. In August 2001, Moody's Investor Services placed Weight Watchers International Inc.'s long-term corporate family and bank loan debt ratings at "Ba1". These ratings hold to this date. XERIUM TECH: Promotes Eduardo Fracasso as Pres. for LatAm Biz ------------------------------------------------------------- Xerium Technologies Inc. has promoted Eduardo Fracasso to the position of President for Xerium South America, effective Jan. 1, 2008. Mr. Fracasso has worked in the paper industry in Brazil for more than 27 years, with most of that time spent with Xerium and its predecessors. He had been promoted to President - Xerium Brazil in June of this year. Mr. Fracasso succeeds Miguel Quinonez, the company's current President - Xerium South America, who as announced in April 2007, is retiring from the Company effective Dec. 31, 2007. "I want to thank Miguel for more than 40 years of service to the Company," said Thomas Gutierrez, Chief Executive Officer of Xerium Technologies. "He has played significant roles in Xerium's successes over the years, most recently serving as the leader of our South American operations during a time when we have been expanding our manufacturing capability in that region. While Miguel will be greatly missed, we are fortunate to have Eduardo, who has strong operational experience and the benefits of Miguel's mentorship over the years, to step into his role." Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. * * * Moody's Investors Service changed the outlook on Xerium Technologies, Inc.'s ratings to negative from stable, and affirmed the company's corporate family rating at B1. The change in outlook to negative reflects Xerium's weaker than expected operating performance primarily due to production inefficiencies in North America and delays in achieving benefits from cost reduction initiatives. Moody's believes the impact of these issues, coupled with a difficult pricing environment for roll covers and to a lesser extent clothing products, will continue to negatively affect operating performance over the intermediate term. Affirmed ratings are: * Corporate family rating; B1 * Guaranteed senior secured term loan B; B1 * Guaranteed senior secured revolving credit facility; B1 * BRAZIL: Petrobras To Invest in National Gas Output in Bolivia --------------------------------------------------------------- Petroleo Brasileiro SA and YPFB, the Bolivian national oil company, have signed a joint announcement in La Paz foreseeing new investments to increase natural gas production in Bolivia. In collaboration with its partners, the company estimates it may invest US$750 million to US$1 billion, depending on the results achieved in new area exploration. The document was signed during a ceremony held at the Quemado Palace. Presidents Evo Morales, from Bolivia, and Luiz In cio Lula da Silva, from Brazil, among other authorities, attended the event. The companies also signed an agreement for technical human resource qualification for Bolivia's oil industry. General lines for joint exploration project execution were defined in the Carohuaicho, Astillero, and Cedro areas, with the possibility of the incorporation of a Semi-Public Corporation. In a different agreement, Petrobras and YPFB defined an 18% ceiling for the natural gas volume coming from the new projects to be provided to the internal Bolivian market. In the city of La Paz, on Dec. 17 2007, Petrobras and YPFB agreed as follows: 1. YPFB and Petrobras reached an agreement regarding the formula for the payment for the liquids contained in the natural gas Petrobras purchases via the GSA Agreement, for a value between US$100 million and US$180 million per year, pursuant to the Bras�lia Minutes dated Feb. 14 2007, which Petrobras agreed to pay as of May 2, 2007. The exchange agreement goes into effect on this date. 2. Aiming at boosting the natural gas production volumes, to supply both internal and external markets, Petrobras and its partners plan to invest US$750 million to US$1 billion in Bolivia, in the explotation of the fields in development and in exploring and exploting new areas, as per the normative and economic conditions that are currently in effect. 3. YPFB's Reserved Area Mark Agreement with Regard to Hydrocarbons establishes the general lines for joint project execution in areas reserved in favor or YPFB, Carohuaicho, Astillero, and Cedro, setting forth the basic conditions for the signing of Study Agreements, to incorporating a possible Semi-Public corporation, for the signing of Exploration and Explotation Agreements and the resulting execution of the work in the mentioned areas. 4. Mark Agreement on qualification: undertake human resource qualification activities, with the purpose of reinforcing the staffs of the Ministry of Hydrocarbons and Energy of and of YPFB in oil industry and corporate organization technique areas. The qualification may be carried out in any one of Petrobras' human resource development facilities, such as the Petrobras University, in Brazil, the Gas & Hydrocarbons Business Excellence Institution (Inegas), in Bolivia, or other corporate centers." About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * BRAZIL: Reports 1.8% Boost in Oil Production in November ---------------------------------------------------------- Petroleo Brasileiro SA's joint oil and natural gas production in Brazil and abroad, in barrels of oil equivalent, in November capped at 2,257,230 barrels per day, 1.2% more than in October. Only taking domestic fields into account, joint oil and natural gas production was 2,036,660 boe/day, 2% above the October mark. In November, with operations going online at two new platforms (P-52, on the 28th, and the FPSO Cidade de Vit�ria, on the 15th), and with production being resumed at the three units that were underwent scheduled maintenance in October, the average oil production in Brazilian fields rose 1.8% compared to the previous month, topping out at 1,760,598 barrels per day. Together, the two platforms that kicked production off in November are capable of lifting 280,000 barrels per day. Domestic field natural gas production was 43,890,000 cubic meters per day, stable compared to the previous month. The oil and natural gas volume, in barrels of oil equivalent, coming from the eight countries where Petrobras has production assets, reached 220,570 barrels per day in November, 5.6% less than in October. The company's exclusive oil production abroad added up to 122,233 barrels per day, slightly below the October mark, when 124,195 barrels were lifted per day. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * BRAZIL: Petroleo Brasileiro Mulling Areas Near Tupi ----------------------------------------------------- Brazilian state-owned oil firm Petroleo Brasileiro SA said in a filing with the Sao Paulo stock exchange Bovespa that it is considering pre-salt areas near the Tupi discovery. Petroleo Brasileiro commented to Business News Americas, "There's no news on Tupi to be published at the moment." According to BNamericas, UBS had disclosed earlier a pre-salt area "that could eclipse Tupi in size," increasing the share price of some oil firms with stakes in blocks near Tupi. BNamericas states that these firms hold stakes in blocks covering the area near Tupi: -- Petroleo Brasileiro, -- ExxonMobil, -- Amerada Hess, -- BG Group, -- Repsol YPF, -- Shell, and -- Petrogal. * * * 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 =========================== ADARI IAM: Proofs of Claim Filing Is Until Today ------------------------------------------------ Adari IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Adari IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 BEAR STEARNS: Proofs of Claim Filing Deadline Is Today ------------------------------------------------------ Bear Stearns Global Alpha Master Fund Limited's creditors are given until Dec. 19, 2007, to prove their claims to David A.K. Walker and Lawrence Edwards, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Bear Stearns' shareholder decided on Nov. 14, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: David A.K. Walker Lawrence Edwards Attention: Jodi Jones PricewaterhouseCoopers Strathvale House, George Town P.O. Box 258, Grand Cayman Cayman Islands Telephone: (345) 914 8694 Fax: (345) 945 4237 BEAR STEARNS: Four Law Firms File Investor Claims ------------------------------------------------- A legal team of four law firms has filed investor claims against two subsidiaries of Bear Stearns Companies, Inc. -- Bear Stearns & Co., Inc. and Bear Stearns Securities Corp. -- over the recent collapse of Bear Stearns High Grade Structured Credit Strategies Enhanced Leverage (Overseas) Fund, which invested heavily in the subprime mortgage market. According to Joseph A. Giannone of Reuters, the arbitration claims, which were filed with the Financial Industry Regulatory Authority, assert that an "unidentified fund-of-funds manager" invested US$1,000,000 in the Overseas Fund in March, when the subprime mortgage market was already showing some signs of strain. The arbitration claims were filed by the law firms: * Maddox, Hargett & Caruso, P.C., * Aidikoff, Uhl & Bakhtiari, * Page Perry, LLC, and * David P. Meyer & Associates Co., LPA. "Bear Stearns did not properly disclose related party transactions, the true nature of the risk of the illiquid securities in the investment portfolio and failed to protect the interests of their clients," Steven B. Caruso, Esq., at Maddox Hargett & Caruso, P.C., in New York, said in a press release. "Our investigation indicates that officials at Bear Stearns engaged in a concerted effort to conceal the true state of affairs at both of these hedge funds for an extended period of time before they imploded," Mr. Caruso continued. "Given Bear Stearns' dominance in the mortgage-backed securities underwriting market, they knew or should have known how much subprime exposure both of these hedge funds faced," Ryan Bakhtiari, Esq., at Aidikoff, Uhl & Bakhtiari, in Beverly Hills, California, stated. "We're finding, in our investigation of these funds, that many investors in these funds simply were unaware of what was being held in their portfolios because it was not adequately disclosed," Mr. Bakhtiari added. According to the press release, the legal team pursuing the arbitration claims includes: -- immediate past president and several current and former directors of the Public Investors Arbitration Bar Association; -- co-chairman of the American Bar Association Securities Arbitration Subcommittee; -- current chair and past members of the FINRA National Arbitration and Mediation Committee; -- a former general counsel of a national brokerage company; -- a former state securities commissioner; and -- a past member of the NASD Securities Arbitration Policy Task Force. Reuters said that FINRA keeps the names of arbitration parties confidential. The legal team who filed the arbitration claims declined to identify their clients. Reuters added that Bear Stearns spokesman Russell Sherman declined to comment, saying he had not seen the complaint. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On Aug. 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than US$100,000,000 each. (Bear Stearns Funds Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) BEAR STEARNS GLOBAL: Proofs of Claim Filing Ends Today ------------------------------------------------------ Bear Stearns Global Alpha Fund Limited's creditors are given until Dec. 19, 2007, to prove their claims to David A.K. Walker and Lawrence Edwards, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Bear Stearns' shareholder decided on Nov. 14, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: David A.K. Walker Lawrence Edwards Attention: Jodi Jones PricewaterhouseCoopers Strathvale House, George Town P.O. Box 258, Grand Cayman Cayman Islands Telephone: (345) 914 8694 Fax: (345) 945 4237 CELEBRITY IAM: Last Day To File Proofs of Claim Is Today -------------------------------------------------------- Celebrity IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Celebrity IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 COMITY IAM: Proofs of Claim Filing Ends Today --------------------------------------------- Comity IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Comity IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 CORAL IAM: Proofs of Claim Filing Deadline Is Today --------------------------------------------------- Coral IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Coral IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 DAHLIA IAM: Proofs of Claim Filing Is Until Today ------------------------------------------------- Dahlia IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Dahlia IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 EDEN (IFI): Proofs of Claim Filing Is Until Today ------------------------------------------------- Eden (IFI) Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Eden (IFI)'s shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 GRANADA IAM: Proofs of Claim Filing Deadline Is Today ----------------------------------------------------- Granada IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Granada IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 LAVENDER IAM: Last Day To File Proofs of Claim Is Today ------------------------------------------------------- Lavender IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Lavender IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 MAGNOLIA IAM: Proofs of Claim Filing Is Until Today --------------------------------------------------- Magnolia IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Magnolia IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 MERLIN IAM: Proofs of Claim Filing Ends Today --------------------------------------------- Merlin IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Merlin IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 MIASMA IAM: Last Day To File Proofs of Claim Is Today ----------------------------------------------------- Miasma IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Miasma IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 MORES IAM: Proofs of Claim Filing Deadline Is Today --------------------------------------------------- Mores IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Mores IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 OASIS IAM: Last Day To File Proofs of Claim Is Today ---------------------------------------------------- Oasis IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Oasis IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 ORCHID IAM: Last Day To File Proofs of Claim Is Today ----------------------------------------------------- Orchid IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Orchid IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 PANOPLY IAM: Last Day To File Proofs of Claim Is Today ------------------------------------------------------ Panoply IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Panoply IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 QUINCY IAM: Proofs of Claim Filing Deadline Is Today ---------------------------------------------------- Quincy IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Quincy IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 RUBY IAM: Proofs of Claim Filing Deadline Is Today -------------------------------------------------- Ruby IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Ruby IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 SUNSTONE IAM: Proofs of Claim Filing Is Until Today --------------------------------------------------- Sunstone IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Sunstone IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 TOPAZ IAM: Proofs of Claim Filing Deadline Is Today --------------------------------------------------- Topaz IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Topaz IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 WISDOM IAM: Last Day To File Proofs of Claim Is Today ----------------------------------------------------- Wisdom IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Wisdom IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 ZODIAC IAM: Proofs of Claim Filing Deadline Is Today ---------------------------------------------------- Zodia IAM Limited's creditors are given until Dec. 19, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Zodia IAM's shareholders agreed on Nov. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 ========= C H I L E ========= CONSTELLATION BRANDS: Closes Fortune Brands' Wine Business Sale --------------------------------------------------------------- Constellation Brands Inc. has completed the acquisition of the Fortune Brands, Inc. United States wine portfolio for a purchase price of US$885 million. Coupled with the sale earlier this year of two wine brands to E. & J. Gallo Winery, Fortune Brands has realized total consideration for its wine unit well in excess of US$900 million. "This acquisition is another significant step to expand our excellent portfolio of fine wine in the fast-growing super- premium and luxury segments of the U.S. market," stated Constellation Brands president and chief executive officer, Rob Sands. "We are pleased that we have been able to take advantage of this opportunity to strengthen our position as the premium wine leader in the U.S. marketplace and improve our ability to meet wine trade-up consumer trends." "The sale of our wine business will help us drive shareholder value in a couple of meaningful ways," said Norm Wesley, chairman and chief executive officer of Fortune Brands. "It will help enhance the already high returns in our premium spirits business, which is the segment that generates our largest profit. Naturally, it will also increase our financial flexibility to focus resources on value-creating opportunities." The wine brands in the transaction with Constellation -- which include Clos du Bois, Geyser Peak, Wild Horse, Buena Vista Carneros and Gary Farrell -- had sales in 2006 of 2.6 million 9- liter cases and revenues of US$214 million including excise taxes. In addition to the wine brands, the transaction also included the associated vineyards, winemaking assets and sales organization. The previous transaction with Gallo included the William Hill and Canyon Road wine brands and related assets. In connection with this acquisition, the company financed the transaction using net proceeds from its Dec. 5, 2007, sale of US$500 million 8 3/8% Senior Notes due 2014 together with borrowings under the revolving portion of the company's senior credit facility. Constellation Brands is formulating an integration plan for the acquired assets and will announce details when the plan is finalized. Fortune Brands was advised on the transaction by Citi and Credit Suisse as financial advisors and Pillsbury Winthrop Shaw Pittman as legal advisor. About Fortune Brands Headquartered in Deerfield, Illinois, Fortune Brands Inc. is a leading consumer brands company with annual sales exceeding US$8 billion. Its operating companies have premier brands and leading market positions in spirits and wine, home and hardware products, and golf equipment. Beam Global Spirits & Wine, Inc. is the company's spirits and wine business. Major spirits brands include Jim Beam and Maker's Mark bourbons, Sauza tequila, Canadian Club whisky, Courvoisier cognac, DeKuyper cordials, Starbucks(TM) liqueurs and Laphroaig single malt Scotch. Home and hardware brands include Moen faucets, Aristokraft, Omega, Diamond and Kitchen Craft cabinetry, Therma- Tru door systems, Simonton windows, Master Lock padlocks and Waterloo tool storage sold by units of Fortune Brands Home & Hardware LLC. Acushnet Company's golf brands include Titleist, Cobra and FootJoy. The company is traded on the New York Stock Exchange under the ticker symbol FO and is included in the S&P 500 Index, the MSCI World Index and the Ocean Tomo 300(TM) Patent Index. About Constellation Brands Headquartered in Fairport, New York, Constellation Brands Inc. (NYSE:STZ) -- http://www.cbrands.com/-- is a producer and marketer of beverage alcohol in the wine, spirits and imported beer categories, with market presence in the U.S., Canada, Chile, U.K., Australia and New Zealand. The company has more than 250 brands in its portfolio, sales in 150 countries and operates approximately 60 wineries, distilleries and distribution facilities. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 3, 2007, Fitch Ratings assigned a 'BB-' rating to a note registered by Constellation Brands Inc. to fund the purchase price of Beam Wine Estates Inc., a subsidiary of Fortune Brands Inc: US$500 million 8.375% senior unsecured note due Dec. 15, 2014. Fitch said the rating outlook is negative. TECH DATA: Teams w/ XO Comms To Deliver IP Services to Resellers ---------------------------------------------------------------- XO Communications and Tech Data Corporation have announced a strategic partnership to offer technology resellers advanced IP services and solutions for small and medium-sized businesses. Under the terms of the agreement, Tech Data will offer resellers and systems integrators XO's converged IP voice and data services, leveraging industry-leading networking technologies from Cisco. XO Communications will benefit from Tech Data's extensive marketing resources and nationwide reseller base to further expand the sales of XO Communications' services among SMB resellers. The partnership gives Tech Data Cisco Express, Advanced, and Master Unified Communications Specialized partners the ability to resell XO Communications' portfolio of IP services, including XO SIP, which delivers converged voice and data services to businesses with IP-PBX systems over a single, high-speed connection. Tech Data resellers will be able to offer a bundled solution combining XO SIP Service with Cisco Unified Communications solutions to deliver a cost-effective, feature- rich IP communications system. "This is a major agreement for the XO Business Partner Channel as it brings together Tech Data's nationwide network of resellers with XO's leading IP services capabilities and nationwide network reach," said XO Communications' Business Partner Program director, Tom Gorey. "Tech Data will help us reach an even larger number of resellers with our industry- leading IP solutions and address their customers' needs for converged IP solutions." "Tech Data provides Cisco resellers with an extensive array of dedicated sales, technical, marketing and product management support to help them profitably capitalize on the demand for the latest networking and communications solutions," said Tech Data Networking Product Marketing vice president, Chuck Bartlett. "The addition of XO Communications enables our customers to grow their revenue and enhance the value they provide end users by bundling Cisco-based solutions with reliable, enterprise-class IP voice and data services." "Enabling resellers to more profitably deliver Unified Communications is important to Cisco," said Cisco Senior Director of Unified Communications Solutions for Worldwide Channels, Richard McLeod. "The combination of Tech Data's exceptional support and XO's powerful converged IP services give channel partners a level of services and support that can help them to capitalize on new revenue opportunities." XO SIP XO SIP delivers converged voice and data services to businesses with IP-PBX systems over a single, high-speed connection. Using a single Session Initiation Protocol (SIP)-based facility to manage all traffic between the IP-PBX system, the XO IP network, and the Public Switched Telephone Network, XO SIP provides greater efficiencies by eliminating the need for businesses to maintain multiple access facilities for each service and eliminates the need for bandwidth-consuming protocol conversions, thereby, simplifying the overall deployment and management of customers' enterprise IP telephony services. About XO Communications XO Communications -- http://www.xo.com-- a subsidiary of XO Holdings, Inc. (OTC Bulltin Board: XOHO), is a leading provider of 21st century communications services for businesses and communications services providers, including 50 percent of the Fortune 500 and leading cable companies, carriers, content providers, and mobile operators. Utilizing its unique and powerful nationwide IP network and extensive local metro networks and broadband wireless facilities, XO offers customers a broad range of managed voice, data and IP services in 75 metropolitan markets across the United States. About Tech Data Founded in 1974, Tech Data Corporation (NASDAQ GS: TECD) -- http://www.techdata.com/-- distributes IT products, with more than 90,000 customers in over 100 countries. The company's business model enables technology solution providers, manufacturers and publishers to cost-effectively sell to and support end users ranging from small-to-midsize businesses to large enterprises. Tech Data is ranked 107th on the FORTUNE 500(R). The company and its subsidiaries operate centers in Latin America, including Brazil and Chile. * * * As reported in the Troubled Company Reporter-Latin America on Dec 4, 2007, Moody's Investors Service has affirmed Tech Data Corporation's existing ratings and changed the outlook to stable from negative. Moody's also assigned a speculative grade liquidity rating of SGL-1. Moody's has affirmed these ratings: -- Corporate Family Rating -- Ba1 -- Probability of Default Rating -- Ba1 -- US$350 Million Convertible Senior Unsecured Notes due 2026 -- Ba2 (LGD-6, 94%) This rating was assigned: -- Speculative Grade Liquidity Rating - SGL-1 =============== C O L O M B I A =============== QUEBECOR WORLD: Aborts US$341-Mil. Sale of Euro Assets to RSDB -------------------------------------------------------------- Quebecor World Inc. will not be proceeding with the sale of its European business to RSDB NV due to the lack of support of the transaction from RSDB's shareholders. In November 2007, Quebecor World and RSDB NV have signed a definitive share purchase agreement and implementation agreement to sell/merge Quebecor World's European operations to RSDB Group. RSDB will buy Quebecor World's European operations and Quebecor World will retain a 29.9% interest in the merged entity that will be named "Roto Smeets Quebecor" and will be listed on Euronext Amsterdam. Under the terms of the share purchase agreement and implementation agreement, RSDB will deliver to Quebecor World, at closing, cash, a note and shares valued in the aggregate at approximately EUR240 million or US$341 million, subject to certain post-closing adjustments. More specifically, the consideration payable to Quebecor World will be comprised of approximately EUR150 million or US$213 million in cash, a EUR35 million or US$50 million note, and 1.4 million shares in RSQ representing approximately 29.9% of the issued and outstanding shares of the combined business post- closing. The share purchase and implementation agreement was agreed to by both RSDB's management and supervisory boards but was conditional upon the approval of RSDB's shareholders. Notwithstanding the outcome of the RSDB's shareholders vote, Quebecor World believes that the overall terms of the transaction represented fair value for all affected stakeholders. The company will explore its strategic options for its European operations, including consolidation opportunities and other initiatives to enhance value. 'While we believed this transaction represented an important consolidation opportunity for the European industry, our European business remains a leader, with one of the most extensive and technologically advanced pan-European platforms," Wes Lucas, president and CEO Quebecor World, said. "Our customers will continue to receive top quality, on-time products and services each and every day as we are fortunate to have some of the most skilled and dedicated people in the industry." The company is evaluating and implementing a variety of options that should compensate for the sale proceeds that will no longer be realized as a result of this transaction not proceeding, including the implementation of new accounts receivable financing programs in Europe. Moreover, Quebecor World's management and board of directors, together with its independent financial advisor, explore and evaluate financing and other alternatives to further strengthen the company's balance sheet and liquidity. While recent external market conditions have been challenging, the company's completed retooling and turn-around plan are generating improvements and have contributed to ensuring the company's continued positive operating cash flow. About Quebecor World Inc. Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 29, 2007, Standard & Poor's Ratings Services lowered its preferred stock rating on Quebecor World Inc. two notches to 'C' from 'CCC-'. The company's other ratings, including the 'B-' long-term corporate credit rating, remain unchanged. All ratings are on CreditWatch with negative implications, where they were initially placed Aug. 9, 2007. ======= C U B A ======= * CUBA: Launching Camilo Cienfuegos Plant on Dec. 21 ---------------------------------------------------- The Cuban news agency ACN reports that state-run oil firm Cupet will launch the Camilo Cienfuegos oil plant on Dec. 21, 2007. According to ACN, Camilo Cienfuegos underwent an US$83-million upgrade. Business News Americas relates that Cupet and Venezuelan counterpart Petroleos de Venezuela formed joint venture PDV- Cupet in 2006 to carry out the overhaul project to reactivate the plant. The revamp was conducted under Venezuelan President Hugo Chavez's Bolivarian Alternative for the Americas plan, which was "designed to help integrate the region's energy sectors." BNamericas notes that Camilo Cienfuegos will process some 65,000 barrels per day. RP News Wires relates that investment for the plant would total US$83 million. The plant will produce: -- 15,000 barrels per day of gasoline, -- 14,000 barrels per day of diesel fuel, -- 7,000 barrels per day of jet fuel, and -- 1,000 barrels per day of liquid petroleum gas. According to RP News, Camilo Cienfuegos' steel floating roof tanks were replaced for aluminum fixed roof storage tanks, extending five-year maintenance work to 10 years. The refiner's processing capacity will total 108,000 barrels per day once the second phase is completed. The plant's reactivation will help cover Cuba's domestic gasoline demand. Cuba produces about 70,000 barrels per day of high sulfur crude oil. Cuba would also export over 9,000 barrels per day of what Camilo Cienfuegos will produce, BNamericas states. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1 foreign-currency issuer rating reflects the debt moratorium that has been in place for more than 15 years, leading to the accumulation of principal and interest arrears. Moody's assigned these ratings on Cuba: -- CC LT Foreign Bank Deposit, Caa2 -- CC LT Foreign Currency Debt, Caa1 -- CC ST Foreign Bank Deposit, NP -- CC ST Foreign Currency Debt, NP -- Issuer Rating, Caa1 ================= G U A T E M A L A ================= LAND O'LAKES: Posts US$2.8-Mln Net Loss in Third Quarter of 2007 ---------------------------------------------------------------- Land O'Lakes, Inc. reported its third-quarter and year-to-date financial results. For the third quarter, Land O'Lakes reported US$2.1 billion in sales and a net loss of US$2.8 million, compared to US$1.5 billion in sales and a net loss of US$16.7 million in 2006. Year-to-date sales are US$6.3 billion with net earnings of US$156.6 million, compared to sales of US$5.2 billion and net earnings of US$44.2 million in the first nine months of 2006. "We've seen solid performance over the first three quarters of the year, with strong markets, particularly in dairy and eggs, helping to boost dollar sales and earnings," Land O'Lakes President and Chief Executive Officer Chris Policinski said. "Higher prices have dampened volumes and we don't expect the fourth quarter to be without its challenges. However, our results year to date, the positive momentum we have generated and our ongoing commitment to cost control, brand strength, targeted marketing and strategic portfolio management put us in a very good position to meet any challenges which may emerge." Total balance sheet debt, including capital leases, was US$960 million at the end of the quarter, compared to US$770 million as of Sept. 30, 2006. Company officials indicated the increased debt was primarily due to higher working capital requirements, as the company builds inventory and receivables at higher price levels, plus cash requirements related to the September acquisition of Agriliance LLC's crop protection products business. The company improved its Long-Term-Debt to Capital ratio, which is at 36.8% as of Sept. 30, 2007, compared to 40.5% Sept. 30, 2006. Liquidity, defined as cash on hand plus unused capacity on short term debt facilities, was US$270 million at Sept. 30, 2007, versus US$340 million one year ago. At Sept. 30, 2007, the company's balance sheet showed total assets of US$3.3 billion and total liabilities of US$2.3 billion, resulting in a stockholders' deficit of US$1.0 billion. Equity at Dec. 31, 2006, was US$944.5 million. About Land O'Lakes Headquartered in Saint Paul, Minnesota, Land O'Lakes Inc. -- http://www.landolakesinc.com/-- is a national, farmer-owned food and agricultural cooperative. Land O'Lakes does business in all 50 states and more than 50 countries, including the Philippines, Ukraine and Guatemala. It is a leading marketer of a full line of dairy-based consumer, foodservice and food ingredient products across the United States; serves its international customers with a variety of food and animal feed ingredients; and provides farmers and ranchers with an extensive line of agricultural supplies and services. Land O'Lakes also provides agricultural assistance and technical training in more than 25 developing nations. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 14, 2007, Standard & Poor's Ratings Services raised its corporate credit and other ratings on privately owned marketing and supply cooperative Land O'Lakes Inc. The corporate credit rating is now 'BB'. S&P said the outlook is stable. ========= H A I T I ========= DYNCORP INT'L: Bags Airlift Wing Support Contract for US$357.9MM ---------------------------------------------------------------- DynCorp International Inc. has been awarded an additional option year by the USAF 89th Airlift Wing to support the Presidential Airlift Fleet. The contract -- originally worth US$280 million -- is now valued at US$357.9 million. The DynCorp International team received a 7th consecutive "Excellent" evaluation by the Award Determining Board, resulting in the award of the option through September 2010. DI employs 500 people at Andrews Air Force Base to support this effort. About Dyncorp. DynCorp International Inc. -- http://www.dyn-intl.com/-- (NYSE: DCP) through its operating company DynCorp International LLC, is a provider of specialized mission-critical technical services, mostly to civilian and military government agencies. It operates major programs in law enforcement training and support, security services, base operations, aviation services and operations, and logistics support worldwide. Headquartered in Falls Church, Virginia, DynCorp International LLC has approximately 14,600 employees worldwide including Haiti. * * * DynCorp still carries Standard and Poor's BB- rating assigned on June 15, 2006. S&P said the outlook is stable. ============= J A M A I C A ============= AIR JAMAICA: Gov't Inks Direct Air Travel Pact with Brazil ---------------------------------------------------------- The Jamaica Information Service reports that the Jamaican government has entered into a bilateral accord with Brazil to facilitate direct air services between the two nations. Jamaican Transport & Works Minister Michael Henry told the Jamaica Information that in negotiating the agreement, the government sought to protect Air Jamaica by making sure that it's not rendered "vulnerable to the vicissitudes of asymmetric competition." The Jamaica Information notes that Minister Henry -- deputizing for Foreign Affairs & Foreign Trade Minister Ken Baugh -- and outgoing Brazilian Ambassador to Jamaica Cezar Augusto De Souza Lima Amaral signed the air travel pact at the Jamaican Foreign Affairs Ministry. The signing was the culmination of talks on a draft of the Brazil-Jamaica accord that ended in August 2006. According to the Jamaica Information, the accord has been implemented and it covers that facilitation of commercial passenger and cargo flights. It allows code-sharing alliances among designated airlines in Jamaica and Brazil. "Jamaica's potential as an alternative gateway for connecting service between North and South America will be explored." Minister Henry told the Jamaica Information that the accord will: -- promote fair competition among airlines, -- prevent discrimination and abuse of dominant positions, -- bring air transport safety and security features in line with international standards, -- let airlines operate combination and all-cargo services on specified routes, and -- open up opportunities for cultural and intellectual rights with greater collaborations, boosting tourism and investment possibilities. Minister Henry commented to the Jamaica Information, "In an increasingly globalized world, the government recognizes that the air transport sector is important for economic growth and development but it must be complemented by a multi-modal approach to the movement of people, goods, and services." "Logistics pertaining to destinations and routes, and frequency of flights" will be analyzed and worked out by designated airlines in Jamaica and Brazil, the Jamaica Information says, citing Minister Henry. "Jamaica is a very important tourist destination (and) it is a very important product for sale in North America (and) Europe, but it could also be, in South America. I hope that this agreement will make it possible for more people from Brazil and South America to come to Jamaica," Mr. Amaral told the Jamaica Information. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to on Air Jamaica permanently. * * * On July 21, 2006, Standard & Poor's Rating Services assigned B long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, is based on the government's unconditional guarantee of both principal and interest payments. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Moody's Investors Service assigned a rating of B1 to Air Jamaica Limited's guaranteed senior unsecured notes. NATIONAL WATER: Temporarily Averts Legal Action from Regulator -------------------------------------------------------------- The National Water Commission has temporarily averted legal action from Jamaica's Office of Utilities Regulation over its failure to pay outstanding regulatory fees, Radio Jamaica reports. As reported in the Troubled Company Reporter-Latin America on Dec. 10, 2007, the Office of Utilities Regulation may sue the National Water for failing to pay over J$38 million in fees. The Office of Utilities served the National Water with a compliance order for the outstanding sum. The ordered had had expired last Friday, RJR News relates, citing the Office of Utilities' consumer and public affairs director David Geddes. The utility presented a new payment schedule offer. Mr. Geddes told Radio Jamaica that the initial offer was unacceptable. The National Water must present a revised offer. The Office of Utilities would analyze the new offer during its next meeting set for this week. Mr. Geddes commented to Radio Jamaica, "When the NWC [National Water] responds to what we said to them then that response will go before the office at its regulatory meeting and a decision will be made if it can be accepted or not. We are mindful that NWC is having some financial difficulties but the issue at hand is that if we accept a payment plan from them and they do not keep to that then there would be some serious legal consequences flowing from that." Under the Office of Utilities Regulation Act, any utility that fails to comply with its directives is liable for prosecution and a fine of not over J$2 million, Radio Jamaica states. * * * As reported in the Troubled Company Reporter on Feb. 7, 2006, the National Water Commission of Jamaica had been criticized for failing to act promptly in cutting its losses. For the fiscal years 2002 and 2003, the water commission accumulated a net loss of US$2.11 billion. The deficit fell to US$1.86 billion the following year, and to US$670 million in 2004 and 2005. SUGAR COMPANY: Frome Factory Remains Closed ------------------------------------------- The Sugar Company's Frome factory has not begun production, Radio Jamaica reports, citing the Jamaican agriculture ministry. The Sugar Company's operations vice president Aston Smith told Radio Jamaica that Frome is being refurbished and is not yet ready to start up. The factory hasn't yet received the equipment it needs. Mr. Smith commented to Radio Jamaica, "This year we were doing major upgrade of the physical factory involving the importation of some equipment from overseas also the refurbishing of some equipment. We were promised a delivery date but there are some items we would have wanted before now as we speak, some are not readily available so that has set back the factory preparedness." Without the renovation problems, adverse weather conditions would have still affected the start of "season" on Dec. 26, 2007, Radio Jamaica says, citing Mr. Smith. "If you recall there has been a dramatic turn in the weather pattern and October has been the wettest in 60 years. Now too much water is not good for cane. What has happened is that the quality has been adversely affected also most of the cane fields are still extremely wet so it is extremely difficult to harvest the cane at this time both from the perspective of the ground conditions, which is excessively wet and secondly the cane quality is not as good as one would desire at this time," Mr. Smith commented to Radio Jamaica. The Sugar Company of Jamaica registered a net loss of almost US$1.1 billion for the financial year ended Sept. 30, 2005, 80% higher than the US$600 million reported in the previous financial year. Sugar Company blamed its financial deterioration to the reduction in sugar cane production. According to published reports, the Jamaican government has taken responsibility for the payment of the firm's debts. Radio Jamaica has said that to date, the five sugar factories have incurred J$3 billion in debts. =========== M E X I C O =========== ADVANCED MICRO: Goodwill Recorded After ATI Buy Likely Impaired --------------------------------------------------------------- Advanced Micro Devices, Inc., disclosed in a regulatory filing with the U.S. Securities and Exchange Commission, that the current carrying value of its goodwill which the company had recorded as a result of its October 2006 acquisition of ATI Technologies Inc. was impaired. The company relates that this conclusion was reached based on the results of an updated long- term financial outlook for the businesses of the former ATI as part of AMD's strategic planning cycle conducted annually during the company's fourth quarter and based on the preliminary findings of the company's annual goodwill impairment testing that commenced in the beginning of October 2007. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. All of AMD's goodwill and acquisition-related intangible assets outstanding as of Sept. 29, 2007 were related to its acquisition of ATI. The company expects that the impairment charge will be material, but the company has determined that, as of the time of this filing, it is unable in good faith to make a determination of an estimate of the amount or range of amounts of the impairment charge. Results for the third quarter of 2007 included ATI acquisition- related charges of US$76 million, an impairment charge on AMD's investment in Spansion Inc.'s common stock of US$42 million, stock-based compensation expense of US$27 million and a tax expense of US$27 million primarily due to the need for a deferred tax liability related to the large tax deductions AMD received for the amortization of goodwill from the acquisition of ATI, which is not amortized through earnings for financial reporting purposes, and for foreign current taxes. AMD's cash, cash equivalents and marketable securities as of Sept. 29, 2007 were US$1.5 billion, a decrease of US$66 million compared to June 30, 2007 due to the repayment of its October 2006 Term Loan, offset by positive cash flows from operations of US$223 million, net proceeds from the issuance of its 5.75% Convertible Senior Notes due 2012 and the inclusion of the fair market value of AMD's ownership interest in Spansion Inc. of US$119 million in its marketable securities balance. 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 $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. Fitch Ratings has assigned a 'CCC+/RR6' rating to Advanced Micro Devices Inc.'s private placement of $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'. CINRAM INT'L: Unit Implements Internal Debt Restructuring --------------------------------------------------------- Cinram International Income Fund has implemented changes to its internal debt structure to address the tax consequences to taxable United States unitholders, which would have otherwise resulted from the Fund's suspension of distributions. Background On Nov. 5, 2007, Cinram International announced the Fund's intention to suspend all distribution payments following the distribution for the month of December 2007. A distribution of CAD0.1625 (previously CAD0.2708) per unit was declared for November and December 2007 to help address the potentially adverse tax consequences to U.S. unitholders of the suspension of distributions. The Fund's distributions to unitholders are funded in part through interest payments made on an inter-company note. For U.S. federal income tax purposes, the Fund's unitholders are treated as the beneficial owners of this inter-company debt. To the extent that the Fund does not distribute cash equal to the amount of the interest income, any shortfall is treated as imputed income to unitholders for U.S. federal income tax purposes. By maintaining a reduced distribution of CAD0.1625 for November and December, management estimates that sufficient cash will be distributed to avoid any imputation of income to U.S. unitholders under U.S. federal income tax principles for which there is no corresponding distribution of cash. Internal Reorganization To eliminate imputed income, on a going forward basis, for unitholders subject to U.S. federal income tax, the Fund is executing an internal reorganization by way of a series of inter-company transfers. The initial inter-company transfer was completed as of Dec. 14, 2007, and the balance of the transfers will occur by year end. The reorganization will result in minimal cash tax leakage and a loss of tax basis which may result in future capital gains; however, it should not have a material impact on the Fund's 2007 and 2008 free cash flow projections. Information for U.S. Unitholders We recommend that unitholders subject to U.S. federal income tax consult with their tax advisors to determine if they are required to file an information return on Internal Revenue Service Form 926 reporting the transfer of Cinram International LLC to Cinram International Inc., one of the inter-company transfers. Additional information concerning tax matters and reporting relating to the reorganization is available in the investor relations section of Cinram's website at http://investors.cinram.com/. About Cinram Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/ -- an indirect wholly owned subsidiary Cinram International Income Fund, provides pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, VHS video cassettes, audio CDs, audio cassettes and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. The company has sales offices in Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 8, 2007, Standard & Poor's Ratings Services has placed its 'BB-' long-term corporate credit and bank loan ratings on Cinram International Inc., a wholly owned indirect subsidiary of Cinram International Income Fund, on CreditWatch with negative implications. The '4' bank loan recovery rating remains unchanged. COMPLETE RETREATS: Court Confirms Joint Plan of Liquidation ----------------------------------------------------------- The Honorable Alan H.W. Shiff of the U.S. Bankruptcy Court for the District of Connecticut confirmed Complete Retreats LLC and its debtor-affiliates' First Amended Joint Plan of Liquidation. Majority of Creditors Accept Plan The Debtors, according to information provided by their balloting agent, certified that sufficient acceptances have been received. The number of eligible voters in Class 3 total 1,815. Approximately 199 creditors with claims totaling US$48,992,868 submitted ballots. Approximately 176 holders of Class 3 claims voted to accept the Plan, representing US$44,631,242 in claims. Approximately 23 holders of Class 3 claims voted to reject the Plan, representing US$4,361,626 in claims. Thus, approximately 90% in number and 89% in amount of Claims in Class 3 of the Plan that voted on the Plan voted to accept the Plan. Of the 81 eligible voters in Class 4, about 21 creditors representing US$14,826 submitted ballots. Approximately 18 holders of Class 4 claims voted to accept the Plan, representing US$13,930 in claims; while three holders of Class 4 claims rejected the Plan, representing US$895 in claims. Thus, approximately 86% in number and 94% in amount of Claims in Class 4 of the Plan that voted on the Plan voted to accept the Plan. Holders of claims in Class 1 and Class 2 are unimpaired and are deemed to accept the Plan. Holders of interests in Class 5 receive nothing under the plan and are deemed to reject the Plan. Objections Resolved According to the Debtors, the only objection to the Plan came from Jeffrey Gram, Private Island Management Limited, and Casa Olita Limited. The Debtors believe that this objection has been resolved and will be withdrawn, and no other objections to the Plan were timely filed. Revised Liquidating Trust Agreement On Nov. 20, 2007, the Debtors delivered to the Court a revised Liquidating Trust Agreement. Non-material changes were made to the draft. A full-text copy of the Revised Liquidating Trust Agreement is available for free at: http://bankrupt.com/misc/revised_liquidatingtrustpact.pdf With respect to the payment and treatment of outstanding professional fees, the Debtors disclosed, among others, that: -- they owe Bingham McCutchen LLP, Dechert LLP, Kramer Capital Partners LP, and XRoads Solutions Group LLC US$4.8 Million for incurred and unpaid fees and expenses for services rendered as of Sept. 30, 2007, which sum includes "holdbacks" of approximately US$300,000; and -- the Estate Professionals each agree to take a note payable for their portions of the remaining approximately US$4.8 million of professional fees and expenses. The Note will be secured by a first-priority security interest in and lien against all of the assets transferred to the Liquidating Trust under the Plan. The Note will bear interest at 4% per annum and will mature on June 30, 2008. Modified Plan As reported in the Troubled Company Reporter on Sept. 5, 2007, the Court approved the disclosure statement explaining the Debtors' Plan holding that the Modified Disclosure Statement contained adequate information within the meaning of Section 1125 of the Bankruptcy Code. The Modified Plan dated Aug. 30, 2007, is predicated upon substantive consolidation of (i) the Debtors' estates, (ii) DR Umbria, Ltd., a non-debtor Northern Irish limited company, which is indirectly wholly owned by Complete Retreats, and (iii) Retreats Europe, Ltd., a non-debtor United Kingdom limited company, which is wholly owned by Preferred Retreats. Substantive consolidation results in, among other things, (i) pooling the assets of, and claims against, the consolidated entities, (ii) satisfying liabilities from a common fund, (iii) eliminating intercompany claims, and (iv) combining the creditors of the consolidated entities for purposes of voting on a plan. Holders of Class 3 General Unsecured Claims will receive less under the Modified Plan: (a) between 0 and 2% -- instead of 4.9% -- for former members or vendors who declined Ultimate Resort LLC's membership offer in the Ultimate Destination Club, and other general unsecured creditors; and (b) between 0 and 0.6% -- instead of 1.7% -- for Accepting Offerees. Ultimate acquired substantially all of the Debtors' assets in 2006 for US$98,000,000 cash. Roughly 645 of the Offerees with claims aggregating approximately US$220,000,000 accepted New Membership Contracts with Ultimate., including eight of the 11 members of the Official Committee of Unsecured Creditors in the Debtors' cases. More than 230 Former Members and General Unsecured Creditors that were offered New Membership Contracts declined Ultimate's offer, and their aggregate Claims are roughly US$130,000,000. Accepting Offerees lose their bargained-for, contractual right under their Membership Agreements with the Debtors to redeem the amount of their deposit from the Debtors. Under the Modified Plan, the Debtors estimate having roughly US$400,000 of cash on hand on the Plan Effective Date. The Debtors anticipate that the sale of any remaining Assets should generate between US$588,000 and US$6,500,000 in proceeds after payment of any and all Allowed Convenience Class Claims, Allowed Administrative Expense Claims, Allowed Priority Tax Claims, Allowed Priority Non-Tax Claims, and Allowed Other Secured Claims and without taking into account any potential proceeds from a lawsuit relating to Private Retreats Belize, LLC's prepetition sale transaction with Jeffrey Gram and Private Island Management Limited, or any other Causes of Action or from any insurance policies of the Debtors. The Debtors could not estimate what the potential recoveries may be on Causes of Action that may be pursued by the Liquidating Trustee appointed under the Plan. About Complete Retreats Complete Retreats, LLC, Preferred Retreats, LLC, and their subsidiaries were founded in 1998. Owned by Robert McGrath and four minority owners, the companies operate a five-star hospitality and real estate management business and are a pioneer and market leader of the "destination club" industry. Under the trade name "Tanner & Haley Resorts," Complete Retreats, et al.'s destination clubs have numerous individual and company members. Destination club members pay up-front membership deposits, annual dues, and daily usage fees. In return, members and their guests enjoy the use of first-class private residences, and receive an array of luxurious services and amenities in certain exotic vacation destinations in the United States and locations around the world, including: Abaco, Bahamas; Cabo San Lucas, Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson Hole, Wyoming. Complete Retreats and its debtor-affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245 through 06-50306). Nicholas H. Mancuso, Esq., Jeffrey K. Daman, Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A. Stieglitz Jr., Esq., at Dechert LLP, are representing the Debtors in their restructuring efforts. Xroads Solutions Group, LLC, is the Debtors financial and restructuring advisor. When the Debtors filed for chapter 11 protection, they listed total debts of US$308,000,000. (Complete Retreats Bankruptcy News, Issue No. 181 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DURA AUTOMOTIVE: Wants Plan Confirmation Hearing Moved Next Year ---------------------------------------------------------------- Following its request to postpone by six days to Dec. 17, 2007, the confirmation hearing on its Joint Plan of Reorganization to extend its marketing period for its US$425 million exit financing, DURA Automotive Systems, Inc., and its debtor- affiliates have again requested another postponement for a hearing. As reported in the Troubled Company Reporter on Dec. 13, 2007, the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware had agreed to postpone the Debtor's plan confirmation hearing to Dec. 17, 2007, at 9:30 a.m. On behalf of the Debtors, Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, submitted a notice stating that the Court has continued the Confirmation Hearing held on Dec. 10, 2007. The Associated Press notes that without the US$425 million loan, the company's plan to raise up to US$160 million in equity financing could unravel. Pacificor, LLC, has agreed to invest up to US$160 million in reorganized Dura by buying shares of new common stock that were not purchased in an equity rights offering. The TCR reported on Nov. 29, 2007, that Judge Carey had canceled the confirmation hearing scheduled for Dec. 6, saying that there was no point moving forward with the hearing until Dura obtains the necessary exit financing. On behalf of DURA, Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, said in a notice dated Dec. 14, 2007, that the confirmation hearing "has been continued to a date to be determined." DURA has released a statement saying that it has elected to postpone its exit financing process in light of abnormally challenging credit market conditions and has asked Judge Carey to schedule the confirmation hearing to 2008. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. DURA AUTO: Subprime Lending Mess Blamed for Lack of Funding ----------------------------------------------------------- DURA Automotive Systems Inc.'s failure to obtain its contemplated US$425 million exit financing is yet another example of how the subprime mortgage crisis has made it tougher for companies to attract loans. Banks have become more conservative in their lending after losing billions in the risky mortgage market," the Detroit Free Press reports. "There's just not a lot of confidence right now," Van Conway, president of Birmingham-based turnaround firm Conway MacKenzie & Dunleavy, told the Detroit Free Press. "People are concerned that there's more to come." At a hearing on Dec. 13, 2007, on behalf of Dura, Roger J. Higgins, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, told the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware, it's "too early" to abandon the effort to find the US$425 million in loans needed to fund the company's Chapter 11 plan in its current form, the Associated Press reports. "This is obviously an adverse development, but no one is pushing the panic button yet," said Evan Flaschen of Bracewell & Giuliani, attorney for the Second Lien Group, an informal group of senior bondholders, according to the AP report. "It's time for calm heads to sit at the table and decide what makes sense going forward." Troy, Michigan-based auto-parts supplier Delphi Corp. has also delayed to the first quarter of 2008 its scheduled emergence from Chapter 11 protection following difficulties in obtaining financial backing for its US$6.8 billion exit plan. The loan has already been reduced by US$2 billion from the original amount Delphi had sought to borrow. The financing is being arranged by JPMorgan Securities Inc., JPMorgan Chase Bank, N.A. Dana said that it has obtained fully underwritten commitments for a US$2 billion exit financing facility. Citigroup Global Markets, Lehman Brothers Inc., and Barclays Capital have agreed to underwrite the financing. Dana expects to exit Chapter 11 by January of 2008. Goldman Sachs Credit Partners, L.P., and Barclays Capital, the investment banking division of Barclays Bank, PLC, have offered to arrange and syndicate DURA's exit loan. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. DURA AUTO: Defers Exit Financing Process Due to Market Riff ----------------------------------------------------------- DURA Automotive Systems, Inc. has elected to postpone its exit financing process in light of abnormally challenging credit market conditions. As a consequence, the company has requested the U.S. Bankruptcy Court for the District of Delaware continue its confirmation hearing to early next year. "The credit markets have continued to move against us these past few weeks and the financing terms available in this market are not acceptable to the company," Larry Denton, Chairman and Chief Executive Officer, said. "While the delay in exiting bankruptcy is regrettable, we are intent on achieving the most favorable financing terms possible so that DURA emerges from Chapter 11 with a significantly strengthened balance sheet to support its enhanced competitive position." DURA will evaluate its financing strategy early in 2008, with a plan for emergence as soon as practicable. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. EPICOR SOFTWARE: Moody's Says NSB Buyout Won't Affect Rating ------------------------------------------------------------ Moody's Investors Service does not expect Epicor Software Corporation's announced agreement to acquire NSB Retail Systems PLC for approximately GBP160 million to impact the company's B1 corporate family rating or stable outlook. As mentioned previously, the company's ratings reflect an expectation of measured acquisition activity as the company looks for opportunities to expand its market share within specific industry verticals. Although the proposed NSB Retail acquisition will increase debt levels, pro forma leverage is expected to remain at or below 4.0. Additionally, the combination of NSB Retail with Epicor's CRS retail product suite is expected to enhance Epicor Software's retail ERP market position. Moody's expects to analyze the company's new capital structure and integration plans as details become available. Headquartered in Irvine, California, Epicor Software Corporation -- http://www.epicor.com/www/-- is a provider of enterprise resource planning, customer relationship management, and supply chain management software and solutions to mid-market companies worldwide. Epicor Software has worldwide locations in China, Australia, Canada, Germany, Hong Kong, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, Singapore, Taiwan, and the United Kingdom, among others. GRUPO MEXICO: Mexican Court Allows Cananea Protests To Continue --------------------------------------------------------------- Protesters at Grupo Mexico SA, de C.V.'s Cananea mine received authorization from a Mexican court to continue their demonstrations, the national mining-metalworkers union STMMRM said in a statement. As reported in the Troubled Company Reporter-Latin America on Dec. 10, 2007, Grupo Mexico, at the labor ministry's order, negotiated with the STMMRM union to try to end a four-month impasse which has kept operations paralyzed at the firm's Cananea copper mine, San Martin zinc mine and Taxco silver-lead- zinc mine. Grupo Mexico however failed to reach any agreement with STMMRM. Union spokesperson Carlos Pavon Campos said the protests against Grupo Mexico would continue. The union demanded, among other things, the enhancement of safety precautions in the mines as about 65 miners were killed in an explosion at a Grupo Mexico coal mine last year. Union leaders claimed that Grupo Mexico refused to consider its recommendations for the safety of workers at Cananea. Grupo Mexico alleged that the purpose of the union's protest was to clear the name of their boss Napoleon Gomez, who escaped to Canada in 2006 when arrest warrants for corruption charges were issued against him. The union denied the allegation. BNamericas notes Grupo Mexico had wanted the court to rule that the strike was illegal. Reuters relates that the labor ministry had previously declared the protest illegal. According to the World Socialist Website, the union had filed an appeal on that decision. The World Socialist notes that Grupo Mexico would have been allowed to dismiss the protesting workers had the labor ministry's order been sustained by the court. A Grupo Mexico communications officer commented to Business News Americas, "The legal team is looking over the situation now to see if we can somehow appeal this." Grupo Mexico admitted to BNamericas that it is losing about US$3.6 million per day in sales revenue due to the Cananea protest. Grupo Mexico SA de C.V. -- http://www.grupomexico.com/-- through its ownership of Asarco and the Southern Peru Copper Company, Grupo Mexico is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 29, 2006, Fitch upgraded the local and foreign currency Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to 'BB+' from 'BB'. Fitch said the rating outlook is stable. HOST HOTELS: Board Declares Quarterly and Special Dividends ----------------------------------------------------------- Host Hotels & Resorts, Inc. Board of Directors has authorized a regular quarterly cash dividend of US$0.20 per share on the company's common stock and a special dividend of US$0.20 per share. The combined dividend of US$0.40 per share is payable on Jan. 15, 2008, to stockholders of record on Dec. 31, 2007. As previously announced, the company intends to pay a regular quarterly common dividend of US$0.20 per share and a special dividend in the fourth quarter, the amount of which varies depending on the company's taxable income. The 2007 special common stock dividend of US$0.20 per share, combined with the four regular quarterly 2007 common stock dividends of US$0.20 per share result in a full year 2007 common stock dividend of US$1.00 per share, an increase of over 31% over the 2006 common dividend. The company also declared a cash dividend of US$0.5546875 per share on its Class E cumulative redeemable preferred stock for the fourth quarter of 2007. The preferred dividend is payable on Jan. 15, 2008, to stockholders of record on Dec. 31, 2007. About Host Hotels & Resorts Host Hotels & Resorts, Inc. -- http://www.hosthotels.com/-- (NYSE:HST) is a lodging real estate investment trust and owns luxury and upper upscale hotels. The company currently owns 121 properties with approximately 64,000 rooms, and also holds a minority interest in a joint venture that owns seven hotels in Europe with approximately 2,700 rooms. Guided by a disciplined approach to capital allocation and aggressive asset management, the company partners with premium brands such as Marriott(R), Ritz-Carlton(R), Westin(R), Sheraton(R), W(R), St. Regis(R), The Luxury Collection(R), Hyatt(R), Fairmont(R), Four Seasons(R), Hilton(R) and Swissotel(R) in the operation of properties in over 50 major markets worldwide, including Mexico and Italy. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Fitch Ratings has upgraded these ratings of Host Hotels & Resorts, Inc. and its principal operating subsidiary, Host Hotels & Resorts, L.P.: Host Hotels & Resorts, Inc. -- Issuer Default Rating to 'BB+' from 'BB'; -- Preferred Stock to 'BB' from 'B+'. Host Hotels & Resorts, L.P. -- IDR to 'BB+' from 'BB'; -- Bank credit facility to 'BB+' from 'BB'; -- Senior unsecured notes to 'BB+' from 'BB'; -- Exchangeable senior unsecured debentures to 'BB+' from 'BB'. Fitch's rating action affects approximately US$4.2 billion of securities. Fitch said the rating outlook is stable. ICONIX BRAND: Completes US$60 Million Starter Brand Acquisition --------------------------------------------------------------- Iconix Brand Group, Inc. has completed the acquisition of the brand Starter(R). The purchase price for the transaction was US$60 million in cash. Founded in 1971, the Starter brand pioneered the league licensed apparel business and is currently licensed to several manufacturer/wholesalers selling primarily to Wal-Mart in the United States, Canada and Mexico. Iconix Brand is forecasting 2008 royalty revenue from Starter of approximately US$18 million worldwide. About Iconix Brand Based in New York City, Iconix Brand Group Inc. (Nasdaq: ICON) - - http://www.iconixbrand.com/-- owns fashion brands to retail distribution from the luxury market. The company licenses its brands to retailers and manufacturers worldwide. The group has international licenses in Mexico, Japan and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 12, 2007, Standard & Poor's Ratings Service has assigned its bank loan and recovery ratings to apparel brand manager and licensor Iconix Brand Group Inc.'s proposed US$60 million add-on term loan facility. The add-on was rated 'BB', two notches above the corporate credit rating, with a '1' recovery rating, indicating the expectation of very high (90%-100%) recovery in the event of a default. At the same time, S&P raised the rating on the existing US$212.5 million loan facility to 'BB', from 'BB-', and revised the recovery rating to '1' from '2'. S&P affirmed the 'B+' corporate credit rating on the company. The outlook is negative. The group had about US$642.2 million in debt at Sept. 30, 2007. INT'L RECTIFIER: Promotes Rick Sivan to Vice President for R&D -------------------------------------------------------------- International Rectifier Corporation has promoted Rick Sivan to Vice President, Research & Development effective immediately. In this role, Mr. Sivan will be responsible for Research & Development efforts. Mr. Sivan joined International Rectifier in March 2005 and most recently served as the company's Vice President R&D where he was responsible for radiation hardened technologies, EDA/PDK development, as well as managing the R&D organizational goals and budget. Before joining International Rectifier, Mr. Sivan spent 18 years at Motorola Semiconductor, where he led the development of several generations of memory and microcontroller technology platforms and held several senior positions including Vice President and Chief Technology Officer of the Semiconductor Products Sector. Mr. Sivan previously was a member of the technical staff at Bell Laboratories, where he worked on advanced CMOS technologies. Mr. Sivan received his Ph.D. in solid-state physics from the University of Texas at Austin, as well as a post-doctoral fellowship at the University of Tel Aviv, Israel. He has authored or co-authored 16 US patents and numerous articles in scientific and technical journals. Don Dancer, International Rectifier's acting chief executive officer, said, "This is a well-deserved promotion for Rick. His proven industry experience will play an important role in driving the company toward continued innovation and technological expertise." International Rectifier Corporation (NYSE:IRF) -- http://www.irf.com/-- provides power management technology. IR's analog, digital, and mixed signal ICs, and other advanced power management products, enable high performance computing and save energy in a wide variety of business and consumer applications. Manufacturers of computers, energy efficient appliances, lighting, automobiles, satellites, aircraft, and defense systems rely on IR's power management solutions to power their next generation products. The company has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 14, 2007, Standard & Poor's Ratings Services said that its 'BB' corporate credit rating on International Rectifier Corp. remains on CreditWatch with negative implications. XIGNUX SA: S&P Lifts Corporate Credit Rating to BB+ from BB ----------------------------------------------------------- Standard & Poor's Ratings Services has raised its corporate credit rating on Xignux S.A. de C.V. to 'BB+' from 'BB'. The senior unsecured rating assigned to the issuer's notes due 2009 was revised to 'BB' from 'BB-'. The company's national scale rating was also raised to 'mxA+' from 'mxA'. The outlook is stable. "The rating action reflects an improvement in the issuer's financial profile supported by better-than-expected financial performance during 2007. In addition, the rating action considers that the prospects for the power transformers business will remain favorable and will continue to drive strong results in 2008 and 2009," said S&P's credit analyst Jose Coballasi. The rating on the company's notes due 2009 reflects the structural subordination of the issue relative to the company's priority liabilities. Despite the debt at the holding company being guaranteed by some of the subholding and operating subsidiaries, the proportion of priority liabilities (i.e., current and long-term liabilities as well as short- and long- term debt at the operating company level) relative to consolidated total assets is significant (more than 15%), leading to a possible low residual claim for Xignux's holding company creditors. S&P's ratings on Xignux are constrained by the cyclical nature of most of its end markets as well as commodity price volatility and single-digit operating margins. The ratings also consider the company's significant market share positions, product diversity, and vertical integration. Its emphasis on high quality has attracted world-renowned joint venture partners that provide the company with low-cost access to state-of-the-art technology and enhancement of its export possibilities. The rating is also supported by Xignux's financial policy, particularly its commitment to maintain a total debt-to-EBITDA ratio of less than 2.5 through the cycle, which S&P believes is adequate for its current rating category. As a result of declining reserve margins in some regions, the United States power industry is in the midst of an expansion. Xignux's power transformer business has been a direct beneficiary of this trend as evidenced by the sharp growth in its EBITDA generation. S&P expects the company to continue focusing its efforts on increasing value-added products and services to increase its market share in the electrical cable and wire and power transformers business. S&P expect the group to continue its tight control on costs and expenses in the automotive business, and its efforts to improve productivity. Of particular importance in this business segment are the operations that have been established in Central America to contain the continued pricing pressures from original equipment manufacturers. In the food division, S&P expects the group to continue its efforts to increase market share, particularly in the "mom-and-pop" distribution channel, and improve its productivity. Notwithstanding the aforementioned, S&P believes that the nature of Xignux's business portfolio leaves the company exposed to the inherent risks associated with the cyclicality of the construction and automotive industries (particularly volumes associated with Ford Motor, General Motors, and Chrysler) and the slowdown in the current expansion cycle of the U.S. electric industry. The stable outlook reflects S&P's expectations that during the next two years, Xignux's total debt-to-EBITDA ratio will remain below 2.0 and its FFO-to-total debt ratio will remain above 30%. A weakening of the company's financial and operating performance relative to S&P's expectations could lead to a negative rating action. Conversely, improvements in the group's business profile, particularly a higher EBITDA contribution from the food business and the services segment of the transformers division and a more diversified customer base in the automotive business, coupled with a strong financial performance relative to S&P's expectations, could lead to a positive rating action. Xignux S.A. de C.V., based in Monterrey, Mexico, is one of Mexico's leading, privately held industrial conglomerates. Through one wholly owned operating subsidiary and three fully consolidated 50:50 joint ventures with major international partners, the company manufactures and distributes industrial cable and wire, automotive wire harnesses, electrical transformers and packaged food products. For the twelve months ended June 30, 2007, sales were US$3.29 billion. * NICOLAS ROMERO: Moody's Places B1 Global Local Currency Rating ---------------------------------------------------------------- Moody's has assigned issuer ratings of B1 (Global Scale, local currency) and Baa2.mx (Mexican National Scale) to the Municipality of Nicolas Romero, State of Mexico. The ratings take into account the municipality's weak financial performance of recent years, significant borrowing plans, a high level of accounts payable with suppliers, a weak economic base and the poor financial condition of the municipal water company (SAPASNIR). The ratings also consider the higher level of federal revenue that the municipality is expected to receive as a result of the fiscal reform recently approved by the federal congress. Reflecting the application of Moody's Joint Default Analysis rating methodology, the ratings incorporate a baseline credit assessment of 14 on a scale of 1 to 21 (1 being the lowest credit risk) and a low likelihood that the State of Mexico (rated Ba3/Baa1.mx) would act to prevent a default by Nicolas Romero. Nicolas Romero plans to borrow MXN30 million short-term to fund year-end spending, as well as MXN110 million long-term to finance capital investments. These two loans will bring debt levels to a significant 44% of total revenue in 2007, and peak debt service requirements to 6% of 2007 revenue: in principle, this would be a manageable level, but for the municipality's weak operating margins and recurrent budgetary deficits. The municipal water company, SAPASNIR, has posted sizable financing deficits over the last four years, financed mostly by accumulating accounts payable to service providers such as the electric power utility, Luz y Fuerza del Centro and the state pension system, ISSEMyM. So far, however, the municipality has only guaranteed the amount owed to ISSEMyM (MXN13.9 million), which agreed to a payment plan under which SAPASNIR is to pay this in equal monthly installments through June 2012. These payments represent a hefty 10% of SAPASNIR's budgeted revenue for 2007, an amount that the water company will find difficult to pay given its weak financial performance and low liquidity levels. Nicolas Romero's financial performance is weak. In three of the last five years, the municipality posted sizable budgetary deficits. During the 2002-2006 period the financing result averaged a deficit of close to 5% of total revenue, although in 2003, 2005 and 2006 the shortfall surpassed 10% of revenue. Operating margins have also been low, turning negative since 2005. These poor fiscal results are mainly explained by the disappointing performance of own-source revenue and increases in personnel spending. On the revenue side, own-source revenue has grown at a very slow pace: only 3% per year since 2002, compared to 6% to 9% for other municipalities in the metropolitan area with a similar economic profile. This reflects the challenges faced by Nicolas Romero in reducing tax delinquencies and increasing revenue collections. On the expenditure side, most of the increase in current spending observed since 2002 has been due to increases in personnel costs, which rose from a moderate 40% of total revenue in 2001 to a hefty 60% last year. Most of this increase was driven by the hiring of new employees, particularly in public safety. In 2007, tighter control over current spending and better-than- expected collection of own-source revenue are projected to result in more moderate operating and financing deficits of around 1.5% and 5% of revenue, respectively. Substantial discounts on fines and fees and other promotions offered to delinquent taxpayers are expected to result in a 12% increase in own-source revenue, while greater control over outlays and the introduction of cost-cutting measures, such as salary cuts for political appointees, are projected to reduce current spending by 7% from the previous year. Municipal liquidity levels deteriorated sharply from 2004-2006. Net working capital decreased from MXN16 million in 2004 to a negative MXN65 million in 2006, mainly as a result of the accumulation of accounts payables with ISSEMyM and Luz y Fuerza and to a lesser extent an increase in short-term debt. This year, however, the deterioration is expected to be reversed, as the municipality refinanced at long-term its past-due contributions with ISSEMyM. For the municipality, the payment of the debt to ISSEMyN alone is expected to represent MXN20 million in 2008, or a hefty 6% of total revenue, and 7.2% if SAPASNIR is not able to meet its part. As for the debt with Luz y Fuerza, no agreement has been reached between the two parties. Over the medium term, municipal officials expect that the recently approved fiscal reform will translate into an increase in the level of federal revenue starting in 2008, which would give them an opportunity to close the budgetary gap. The municipality of Nicolas Romero, a bedroom community of low- income workers, is located in the State of Mexico, bordering the western edge of metropolitan area of Mexico City. The municipality's approximately 150,000 mostly blue-collar workers commute to the DF and other municipalities in the metro area. Its economic base is rather narrow as it is mainly comprised of small merchants in the downtown area, and low-yield traditional agriculture in the outskirts. =========== P A N A M A =========== BANCO LATINOAMERICANO: Declares US$0.22 Per Share Cash Dividend --------------------------------------------------------------- Banco Latinoamericano de Exportaciones, S.A. has announced the US$0.22 per share quarterly cash dividend corresponding to the fourth quarter of 2007 and approved by the Board of Directors on Feb. 13, 2007, is payable on Jan. 17, 2008 to the bank's stockholders of record as of Jan. 7, 2008. As of Nov. 30, 2007, the bank had 36,370,149.29 common shares outstanding of all classes. Bladex also confirmed that its annual report on Form 20-F for the fiscal year ended Dec. 31, 2006, which includes the Bank's audited financial statements, was filed with the United States Securities and Exchange Commission on June 26, 2007 and is available on the Bank's website at: http://www.bladex.com. Shareholders may request a hard copy of this report, free of charge, to: Mr. Carlos Yap S. SVP & CFO Banco Latinoamericano de Exportaciones, S.A. aka Bladex Tel. (507) 210-8563 Fax (507) 269-6333 E-mail: cyap@blx.com Headquartered in Panama City, Panama, Banco Latinoamericano de Exportaciones, SA aka Bladex (NYSE: BLX) -- http://www.bladex.com-- is a supranational bank originally established by the Central Banks of Latin American and Caribbean countries to promote trade finance in the Region. The bank's shareholders include central banks and state-owned entities in 23 countries in the Region, as well as Latin American and international commercial banks, along with institutional and retail investors. Through Dec. 31, 2005, Bladex had disbursed accumulated credits of over US$135 billion. * * * As reported in the Troubled Company Reporter-Latin America on May 1, 2007, Moody's Investors Service has confirmed that it raised its bank financial strength rating on Banco Latinoamericano de Exportaciones, SA aka Bladex to D+ from D-, in connection with the rating agency's implementation of its refined joint default analysis and updated BFSR methodologies for banks in Panama. =============== P A R A G U A Y =============== * PARAGUAY: Industrias Metalurgicas To Upgrade Acaray II Plant -------------------------------------------------------------- Paraguayan state-run power firm Ande has awarded a contract to Industrias Metalurgicas Pescarmona SA for the modernization of the Acaray II hydroelectric plant, Business News Americas reports. BNamericas says that the upgrade is aimed at increasing the plant's capacity. Industrias Metalurgicas said in a statement that the contract is about US$11 million. It involves the revamping of plant generators three and four to boost their production to 150 megawatts from 121 megawatts. According to BNamericas, Ande runs Acaray II, which supplies 15% of Paraguay's power needs. Acaray II is also the sole hydroelectric plant Paraguay runs on its own. BNamericas notes that work for the project would last for 30 months. Industrias Metalurgicas told Waterpowermagazine.com that "binational possibilities" like the Yacyreta project on the Parana river were still of interest as the firm is examining possibilities for the 300-megawatt Ana Cua project, a complementary scheme to the 3200-megawatt Yacyreta plant for which the company provided seven 160-megawatt units out of the total 20 turbines. Industrias Metalurgicas commented to Waterpowermagazine.com that it is working on providing equipment for a series of other projects like: -- Bakun in Malaysia; -- Tocoma and Macagua schemes in Venezuela; -- Porce III in Colombia; and -- Simplicio, Dardanelos and Anta plants in Brazil. Waterpowermagazine.com says that Industrias Metalurgicas is also working on wind farm development. Industrias Metalurgicas told Waterpowermagazine.com that its power generation projects surpass six giga watts, entailing a US$1.7-billion "order backlog." About Industrias Metalurgicas Industrias Metalurgicas Pescarmona SA aka IMPSA -- http://www.impsa.com.ar/-- is one of the largest worldwide providers of integrated energy solutions for hydropower and wind energy projects through the production of capital goods and by investing in power generation projects. The company has offices in Malaysia, China, and Argentina. * * * Moody's assigned these ratings on Paraguay: -- CC LT Foreign Bank Deposit, Caa2 -- CC LT Foreign Currency Debt, Caa1 -- CC ST Foreign Bank Deposit, NP -- CC ST Foreign Currency Debt, NP -- LC Currency Issue Moody's have placed the rating under review for likely upgrade. ======= P E R U ======= CUMMINS INC: Urges Shareholders to Reject Mini-Tender Offer ----------------------------------------------------------- Cummins Inc. has been notified of an unsolicited mini-tender offer by TRC Capital Corp. of Toronto for TRC to purchase up to 1,000,000 shares of Cummins' stock at a price of US$115.00 per share in cash. This represents a 2.7 percent discount below Cummins' closing price on Dec. 11, the day prior to the date of the offer, and a 6 percent discount below Cummins' closing price on Dec. 14. Cummins is in no way associated with TRC, this mini-tender offer or the offer documentation. Cummins does not endorse TRC's unsolicited mini-tender offer and recommends that stockholders not tender their shares in response to this offer. CMI urges investors to obtain current market quotes on Cummins' stock, consult with their financial advisors and exercise caution in examining the mini-tender offer, which represents less than 1 percent of the Cummins' shares outstanding. Shareholders should be aware that this mini-tender offer is highly conditional. The conditions allow TRC to change the terms of its offer -- such as the price offered per share -- in the event of various occurrences, including a stock split. As a reminder, CMI announced a two-for-one stock split, effective Jan. 2, 2008, for shareholders of record on Dec. 21, 2007. The U.S. Securities and Exchange Commission has issued an investor alert regarding mini-tender offers, noting that some bidders make such offers at below market prices hoping they will catch investors off guard if the investors do not compare the offer price to the current market price. The SEC advises that mini-tender offers -- those offers made for less than 5 percent of a company's stock -- typically do not provide the same disclosure and procedural protections that larger, traditional tender offers provide. The SEC's mini-tender offer tips may be found at http://www.sec.gov/investor/pubs/minitend.htm Cummins' shareholders who have already tendered are advised that they may withdraw their shares by providing the written notice described in the TRC Capital offering documents prior to the expiration of the offer currently scheduled for 12:01 a.m. (EST) on Jan. 11, 2008. About Cummins Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI) -- http://www.cummins.com/-- designs, manufactures, distributes and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Cummins has Latin-American operations, particularly in Venezuela, Brazil, Peru, Colombia, and Argentina. Its operations in the Asia-Pacific are found in China, Japan and Korea. Its also has facilities in Europe, particularly in the United Kingdom. * * * Cummins' Junior Convertible Subordinated Debentures carry Fitch's 'BB' rating with a stable outlook. Moody's Investors Service raised Cummins' convertible preferred stock rating to Ba1 from Ba2 and withdrew the company's SGL-1 Speculative Grade Liquidity rating and its Ba1 Corporate Family Rating. ===================== P U E R T O R I C O ===================== AFC ENTERPRISES: James Lyons Leaves Chief Operating Officer Post ---------------------------------------------------------------- AFC Enterprises, Inc., the franchisor and operator of Popeyes(R) Chicken & Biscuits, has announced the resignation of James W. Lyons as chief operating officer to pursue another business opportunity. He will remain with the company through the end of December to assist with key transition activities. AFC Chief Executive Officer Cheryl Bachelder stated, "Jim has done an outstanding job since joining Popeyes in 2004. We thank him for his many significant contributions to the Company and we wish him much success in the future." Headquartered in Atlanta, Georgia, AFC Enterprises Inc. (Nasdaq: AFCE) -- http://www.afce.com/-- owns, operates and franchises Popeyes Chicken & Biscuits quick service restaurants. As of July 15, 2007, AFC owned and operated 61 restaurants and franchised 1,817 restaurants in 44 states, the District of Columbia, Puerto Rico, Guam and 23 foreign countries. The Popeyes concept features a New Orleans Cajun-style menu, with regional items such as spicy fried chicken pieces, chicken sandwiches and strips, fried shrimp , jambalaya and red beans & rice. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 26, 2007, Moody's Investors Service changed AFC Enterprises Inc.'s rating outlook to stable from positive. Concurrently, Moody's affirmed all the debt ratings of AFC, including its B1 corporate family rating and probability of default rating at B2, while upgrading the senior secured credit facilities rating to Ba3 from B1. AVNET INC: Completes Acal IT Solution Acquisition for US$200 Mln ---------------------------------------------------------------- Avnet Inc. has completed its acquisition of the IT Solutions Division of Acal plc. The acquired business, which has annual revenues of approximately US$200 million, is a leading European value-added distributor for Storage Networking, Networking, Security, Electronic Document Management, as well as managed and professional services. The division, which has operations in the UK, the Netherlands, Belgium, Germany, France and Sweden, will be integrated into Avnet Technology Solutions' EMEA business. Dick Borsboom, President of Avnet Technology Solutions EMEA, commented, "This acquisition extends our depth of expertise in the IT solutions and services arena by adding new competencies in high growth areas and expanding our ability to deliver multi- vendor solutions. The addition of 200 skilled employees and 2000 Acal resellers broadens our solutions-selling portfolio and creates additional opportunities for cross selling." Following on the recently completed acquisition of the Magirus Enterprise Division, Avnet Technology Solutions is substantially building its market presence in the areas of managed and professional services, SAN, Networking and Security solutions. The acquisition also opens new markets to Avnet Technology Solutions, such as Electronic Document Management today operating under the name Headway Technologies. "We are executing well on our goal to be the premier, value-add distributor in Europe", added Mr. Borsboom "The acquisition of Acal is another clear affirmation of our vision to be the leader in delivering solutions that can accelerate the growth of our trading partners." About Avnet Electronics Avnet Electronics Marketing -- http://www.em.avnet.com/-- is an operating group of Phoenix-based Avnet, Inc. (NYSE:AVT), a Fortune 500 company. Avnet Electronics Marketing serves electronic original equipment manufacturers and electronic manufacturing services providers in more than 70 countries, distributing electronic components from leading manufacturers and providing associated design-chain and supply-chain services. About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * Moody's Investors Service affirmed Avnet's Ba1 corporate family long-term debt ratings in March 2007. Moody's said the outlook is positive. GENESCO INC: S&P Lowers Corporate Credit Rating from BB- to B+ -------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its corporate credit rating on Genesco Inc. to 'B+' from 'BB-'. At the same time, S&P lowered its issue-level rating on the company's subordinated debt to 'B-' from 'B'. The company remains on CreditWatch with Developing implications, where it was placed on April 20, 2007. "The downgrade reflects operating performance which has been below expectations for a few quarters and the increasingly challenging economic environment," said S&P's credit analyst David Kuntz, "as well as considerable uncertainty regarding the acquisition by The Finish Line." Headquartered in Nashville, Tennessee, Genesco Inc. (NYSE: GCO) -- http://www.genesco.com/-- is a specialty retailer of footwear, headwear and accessories in more than 1,900 retail stores in the U.S., Canada, and Puerto Rico, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy, Underground Station, Hatworld, Lids, Hat Zone, Cap Factory, Head Quarters and Cap Connection. The company also sells footwear at wholesale under its Johnston & Murphy brand and under the licensed Dockers. WESCO INT'L: Enters Into Strategic Venture w/ Deutsch Engineered ---------------------------------------------------------------- WESCO International, Inc. has entered into a strategic arrangement with Deutsch Engineered Connecting Devices, Inc. with respect to WESCO's LADD operations. The LADD operation, a part of Carlton Bates, which was acquired by the company in September 2005, is engaged in the distribution of specialized severe duty industrial connectors. LADD has been a master distributor of Deutsch connectors in the United States for over 20 years and has annual sales of approximately US$100 million. WESCO International and Deutsch Engineered will work together to further penetrate existing customers in the specialized heavy- duty connector market, and to accelerate growth in new market segments and new products. Under the terms of the agreement, both companies will enter into a joint venture whereby Deutsch Engineered will initially own 60% of LADD for consideration of approximately US$75 million. Deutsch Engineered is entitled, but not obliged, to acquire the remaining 40% after Jan. 1, 2010. Proceeds of the transaction will be utilized to purchase shares of the company's common stock under the previously announced share repurchase program. About WESCO International Headquartered in Pittsburgh, Pennsylvania, WESCO International, Inc., (NYSE: WCC) is a publicly traded Fortune 500 holding company, whose primary operating entity is WESCO Distribution, Inc. WESCO Distribution is a distributor of electrical construction products and electrical and industrial maintenance, repair and operating supplies, and is the nation's largest provider of integrated supply services. WESCO operates eight fully automated distribution centers and approximately 370 full- service branches in North America and selected international markets including Mexico and Puerto Rico, providing a local presence for area customers and a global network to serve multi- location businesses and multi-national corporations. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 4, 2007, Moody's has affirmed the ratings of Wesco International, Inc. and changed the outlook to stable from positive. Specifically, Moody's affirmed the B1 ratings on both the guaranteed senior convertible debentures due 2025 and Wesco Distribution, Inc.'s guaranteed senior subordinated notes due 2017. Moody's also affirmed the company's Ba3 corporate family rating. ================================= T R I N I D A D & T O B A G O ================================= HILTON HOTELS: Unit Hires Joseph Palmieri as General Manager ------------------------------------------------------------ Hilton Americas-Houston, a flagship property of Hilton Hotels Corporation, has appointed Joseph Palmieri as its General Manager of the 1200 room. In this capacity he will oversee all aspects of the hotel's operation. Mr. Palmieri joins the Hilton Americas-Houston from the Hilton Lincoln Centre in Dallas, Texas where he has served as General Manager since 1989. In his new role he will report to Andrew Slater, Area Vice President of Hilton Hotels Corporation. Mr. Palmieri brings 33 years of managerial experience to his new role. While serving as General Manager of the Hilton Lincoln Centre Palmieri concurrently held the position of Area Vice President of Operations for Hilton Hotels Corporation from 1994 to 2000 and again from 2002-2003. In this capacity he was responsible for the operation of 15 hotels in the Southwestern United States. Between 2000 and 2002 Palmieri concurrently served as Regional Vice President of Operations for Hilton Hotels Corporation, which increased the number of hotels under his operational direction to 32 properties. Previously, Mr. Palmieri also served as General Manager of the Doubletree Park West hotel in Dallas as well as the Stouffer Concourse Hotel in Denver, Colorado. Long active in Dallas industry and community affairs Palmieri has held several prominent positions including President and Chairman of the Dallas Hotel/Motel Association as well as a member of the Board of Directors of the Dallas Convention and Visitors Bureau and a member of the Board of Directors of the Texas Hotel/Motel Association. In 2006, he was named General Manager of the Year for Dallas by Where Magazine and in 2007 he was named General Manager of the Year by the Greater Dallas Hotel/Motel Association. Mr. Palmieri is a native of Pittsburgh, Pennsylvania. He holds a degree in Hotel Management from the University of Nevada at Las Vegas and has also participated in the postgraduate General Managers program at Cornell University. Connected to the George R. Brown Convention Center on two floors by a double-deck skywalk, the Hilton Americas-Houston's prime location is steps away from downtown Houston's Toyota Center, The Park Shopping Mall and Minute Maid Park. Just minutes away from the hotel are Houston's renowned Theater District, the Bayou Place entertainment complex, Reliant Stadium and the cultural museum corridor. The Hilton Americas-Houston is easily accessible-just 15 minutes from Hobby Airport and 30 minutes from Bush Intercontinental Airport. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Costa Rica, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Moody's Investors Service downgraded Hilton Corporation's Corporate Family Rating and senior unsecured ratings to B3 and Caa1, respectively. ================= V E N E Z U E L A ================= HARVEST NATURAL: Buys 50% Interest in Gabon Exploration Project --------------------------------------------------------------- Harvest Natural Resources, Inc. has executed a sale and purchase agreement to acquire a 50 percent operated interest in the Dussafu Marin Exploration Production Sharing Contract located offshore Gabon from Sasol Petroleum West Africa Limited. The acquisition is subject to the approval of the Government of the Republic of Gabon and the co-venturers in the production contract. The Production Sharing Contract contains 680,000 acres located at water depths ranging from 0 to 1,000 feet. Harvest President and Chief Executive Officer, James A. Edmiston, said: "The Dussafu PSC lies within an active proven hydrocarbon basin containing significant production and infrastructure in contiguous blocks and provides Harvest with exposure to multiple medium to low risk exploration plays and a pre-existing small oil discovery. Entry into Gabon with an operated position in the Dussafu PSC is consistent with our plans to organically grow a more diverse asset portfolio while maintaining focus on highly-proven hydrocarbon provinces." The Production Sharing Contract co-venturers recently agreed to enter into the three-year second exploration phase with an effective date of May 28, 2007. The second exploration phase work commitment includes the acquisition and processing of 500 kilometers of 2D seismic, geology and geophysical interpretation, engineering studies and the drilling of a conditional well. About Harvest Natural Harvest Natural Resources, Inc. -- http://www.harvestnr.com/-- is an international oil and gas company that seeks and develops large resources in countries that others may perceive to be challenging. Its producing operations are conducted principally through the company's 80% owned Venezuelan subsidiary, Harvest Vinccler, California, which operates the South Monagas Unit in Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on May 7, 2007, Harvest Natural Resources said in a statement that it incurred a US$6.5-million loss in the first quarter 2007, compared to US$13.9-million earnings in the first quarter 2006. PETROLEOS DE VENEZUELA: Makes Prepayment of Hamaca Project Debt --------------------------------------------------------------- Petroleos de Venezuela S.A. has prepaid in full on Dec. 14, 2007, all of the outstanding senior indebtedness of the Hamaca heavy oil project in the Faja region of Venezuela. A final prepayment of principal in an aggregate amount of approximately US$340 million, plus interest, was made on December 14, after an initial prepayment of principal in an aggregate amount of US$400 million, plus interest, was made on Nov. 30, 2007. Prepayments were made out of project funds by Corpoguanipa, S.A., a wholly owned subsidiary of PDVSA, and Texaco Orinoco Resources Company, a wholly owned subsidiary of Chevron Corporation. The senior indebtedness consisted of a syndicated bank credit facility, with BNP Paribas as administrative agent, and a bank credit facility guaranteed by the Export-Import Bank of the United States, with Barclays Bank as facility agent. About PDVSA Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande de los Santos, and Pamella Ritah K. Jala, Editors. Copyright 2007. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *