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 Thursday, December 27, 2007, Vol. 8, Issue 255 Headlines A R G E N T I N A ASOCIACION DE COOPERATIVAS: Moody's Changes Outlook to Positive BALLY TECHNOLOGIES: Fitch Lifts Issuer Default Rating to B COMERCIALIZADORA MELELLA: Files Reorganization Petition COMPANIA TEXTIL: Files for Reorganization in Buenos Aires Court HUGO SANTIAGO: Trustee Verifies Claims Por Via Incidental LOMA NEGRA: Moody's Ups Cur. Corp. Family Rating to Ba3 from B2 MICAMAR SRL: Trustee Verifies Proofs of Claim Until Feb. 15 NERT SA: Proofs of Claim Verification Deadline Is March 10, 2008 RED HAT: Earns US$20.3 Million in Third Quarter Ended Nov. 30 SUPERAR SRL: Seeks for Bankruptcy Approval in Buenos Aires Court TECSYSTEM SRL: Files for Reorganization Petition in Buenos Aires B A H A M A S HARRAH'S ENT: Commences Tender Offers for Conv. Debt Securities HARRAH'S ENT: Secures Regulatory Approvals on Merger Deal YPF SA: Repsol Inks Pact with Eskenazi for 14.9% Stake Sale RESTRUCTURED CAPITAL: Proofs of Claim Filing Ends Today B E L I Z E ANDREW CORP: CommScope Finalizes Acquisition Details B E R M U D A BRUNSWICK PARTNERS: Will Hold Final Shareholders Meeting Today B O L I V I A INTERMEC TECH: Hires David Yung as Asia Pacific Vice President B R A Z I L BANCO NACIONAL: Approves BRL2.6-Bil. Loan for Estreito Plant BANCO NACIONAL: Eyes 20% Growth in Power Sector Investments BLOCKBUSTER INC: Fitch Affirms CCC Issuer Default Rating CAMARGO CORREA: Moody's Affirms Ba3 Global Corp. Family Rating CAUE FINANCE: Moody's Affirms Ba3 Rating on US$150-Mil. Notes COMPANHIA ENERGETICA: Keeping 10% Stake in Madeira Energia COMPANHIA SIDERURGICA: S&P Revises Outlook to Positive COMMSCOPE INC: Finalizes Acquisition Details for Andrew Corp. JABIL CIRCUIT: Reports US$62 Million Net Income in Third Quarter MILACRON INC: Weak Credit Metric Cues Moody's to Cut Ratings NATIONAL STEEL: S&P Affirms B+ Rating with Positive Outlook * BRAZIL: S&P Affirms Low B Foreign Currency Sovereign Ratings C A Y M A N I S L A N D S AAA 2006-1: Proofs of Claim Filing Deadline Is Today AAA BRADCO: Proofs of Claim Filing Ends Today ALPHASIMPLEX GLOBAL: Proofs of Claim Filing Is Until Today ARKAIR LTD: Proofs of Claim Filing Deadline Is Today BA INVESTMENTS: Proofs of Claim Filing Ends Today BALEARES LEASING: Proofs of Claim Filing Deadline Is Today BEAR STEARNS FUNDS: Will Hold Final Shareholders Meeting Today BOMBAY CO: Selling Intellectual Property to Bombay Brands BWI FORTROSS: Proofs of Claim Filing Ends Today CHAMBERS STREET: Proofs of Claim Filing Is Until Today CMBSPOKE 2005-II: Proofs of Claim Filing Ends Today CORIN CAPITAL: Proofs of Claim Filing Deadline Is Today CORIN CAPITAL: Will Hold Final Shareholders Meeting Today CORIN CAPITAL UK: Holding Final Shareholders Meeting Today CORIN CAPITAL UK: Proofs of Claim Filing Is Until Today CQS INTERNATIONAL: Proofs of Claim Filing Ends Today DCM EUROPEAN: Proofs of Claim Filing Deadline Is Today DCM MASTER: Proofs of Claim Filing Ends Today DUKE FUNDING II: Proofs of Claim Filing Deadline Is Today DUKE FUNDING III: Proofs of Claim Filing Ends Today EMOSYN INTERNATIONAL: Proofs of Claim Filing Deadline Is Today ENHANCED MORTGAGE-BACKED: Proofs of Claim Filing Ends Today EQUITY HHA: Will Hold Final Shareholders Meeting Today EQUITY SPECIAL: Proofs of Claim Filing Deadline Is Today FIRST REINSURANCE: Will Hold Final Shareholders Meeting Today FLAGSHIP CLO: Proofs of Claim Filing Ends Today FORTIS HEDGE: Will Hold Final Shareholders Meeting Today GINZA 7: Proofs of Claim Filing Deadline Is Today GLOBAL OPPORTUNITY: Proofs of Claim Filing Is Until Today GLUON FUND: Proofs of Claim Filing Ends Today HEDERA INVESTMENTS: Will Hold Final Shareholders Meeting Today HELLY HANSEN: Will Hold Final Shareholders Meeting Today HELLY HANSEN HOLDINGS: Holding Final Shareholders Meeting Today HELLY IIP: Will Hold Final Shareholders Meeting Today HIGH RIDGE: Proofs of Claim Filing Is Until Today INTERNATIONAL CONSULTANTS: Claims Filing Deadline Is Today IRR CAPITAL: Proofs of Claim Filing Ends Today KNIGHT II: Proofs of Claim Filing Deadline Is Today KOOTENAY RIVER: Final Shareholders Meeting Is Today KOOTENAY RIVER: Proofs of Claim Filing Ends Today MAESTRO GLOBAL: Proofs of Claim Filing Deadline Is Today MARINER CDO: Proofs of Claim Filing Is Until Today MERRILL LYNCH: Will Hold Final Shareholders Meeting Today MERRILL LYNCH DEVELOPING: Final Shareholders Meeting Is Today MERRILL LYNCH MEXICAN: To Hold Final Shareholders Meeting Today MERRILL LYNCH MEXICAN INCOME: Final Shareholders Meeting Today NEW REACH: Will Hold Final Shareholders Meeting Today NEWCASTLE CDO: Proofs of Claim Filing Ends Today NEWCASTLE CDO: Will Hold Final Shareholders Meeting Today NEWCASTLE CDO II: Holding Final Shareholders Meeting Today NEWCASTLE CDO II: Proofs of Claim Filing Deadline Is Today NEWCASTLE CDO III: Final Shareholders Meeting Is Today NEWCASTLE CDO III: Proofs of Claim Filing Ends Today NTERNATIONAL CONSULTANTS: Final Shareholders Meeting Is Today ONEWORKD GLOBAL: Proofs of Claim Filing Deadline Is Today OXHEAD GLOBAL: Proofs of Claim Filing Ends Today OXHEAD GLOBAL: Will Hold Final Shareholders Meeting Today OXHEAD GLOBAL LEVERAGED: Claims Filing Deadline Is Today OXHEAD GLOBAL LEVERAGED: Final Shareholders Meeting Is Today OXHEAD GLOBAL LEVERAGED FUND: Claims Filing Ends Today OXHEAD GLOBAL LEVERAGED FUND: Final Shareholders Meeting Today PATHFINDER EUROCLASS: Final Shareholders Meeting Is Today PARMALAT SPA: Share Capital Up by EUR301,768 to EUR1.65 Billion PETRA CAPITAL: Proofs of Claim Filing Deadline Is Today PETRA CAPITAL II: Proofs of Claim Filing Ends Today PETROCHEMICAL INVESTMENTS: Final Shareholders Meeting Is Today POLARIS ENERGY: Proofs of Claim Filing Deadline Is Today POLARIS ENERGY OFFSHORE: Proofs of Claim Filing Ends Today PLATO INVESTMENT: Proofs of Claim Filing Is Until Today RBC ALTERNATIVE: Proofs of Claim Filing Deadline Is Today REACH HOLDINGS: Holding Final Shareholders Meeting Today SOLVAY FINANCE: Holding Final Shareholders Meeting Today SOLVAY FINANCE: Proofs of Claim Filing Ends Today SPRING POINT: Will Hold Final Shareholders Meeting Today STONE HARBOR: Final Shareholders Meeting Is Today STONER HARBOR ADVISORES: Holding Last Shareholders Meeting Today STUYVESANT CDO: Proofs of Claim Filing Ends Today TEPUI EQUITY: Proofs of Claim Filing Is Until Today TEPUI MASTER: Proofs of Claim Filing Deadline Is Today TOURIST PUBLICATIONS: Proofs of Claim Filing Ends Today TRIATHLON LIFE: Will Hold Final Shareholders Meeting Today TRIATHLON LIFE: Proofs of Claim Filing Ends Today VACALAM: Will Hold Final Shareholders Meeting Today VACALAM HOLDINGS: Schedules Final Shareholders Meeting Today VACALAM HOLDINGS 3: Final Shareholders Meeting Is Today WOODWARD FINANCE: Proofs of Claim Filing Deadline Is Today WOODWARD FINANCE: Will Hold Final Shareholders Meeting Today C H I L E COEUR D'ALENE: Closes Bolnisi & Palmarejo Acquisitions GMAC LLC: Moody's Downgrades Sr. Unsec. Debt Rating to Ba3 C O L O M B I A BRIGHTPOINT INC: Units Ink Distribution Agreement with Neo ECOPETROL: Inks Pact with Petro Rubiales for Pipeline Project ECOPETROL: To Buy Propilco for US$690 Million C U B A * CUBA: 2007 Trade with Venezuela Estimated at US$7 Billion D O M I N I C A N R E P U B L I C GENERAL CABLE: Executives Cede Employment Contracts E C U A D O R CARROLS CORP: Moody's Lifts Rating of US$180-Mil. Notes to B3 J A M A I C A MAAX HOLDINGS: Moody's Downgrades Corporate Family Rating to Ca M E X I C O ACXIOM CORP: Buyout Termination Prompts S&P to Affirm BB Rating ACXIOM CORP: Shareholders Pick Three Directors To Serve on Board ATSI COMM: Posts US$293,000 Net Loss in Quarter Ended Oct. 31 CINRAM INTERNATIONAL: Moody's Affirms B1 Corp. & Debt Ratings FOAMEX INT'L: To Pay US$40 Million on First Lien Term Loan GLOBAL POWER: To Emerge from Chapter 11 by End of January 2008 GRUPO GIGANTE: Determines Pricing for 8.75% Senior Notes HARMAN INT'L: Promotes Blake Augsburger as Country Manager INDUSTRIAS UNIDAS: S&P Revises Outlook on B Ratings to Negative INNOPHOS HOLDINGS: Board Declares US$0.17 Per Share Dividend INTERTAPE POLYMER: Debt Reduction Prompts S&P to Upgrade Ratings MOVIE GALLERY: Files Joint Plan & Disclosure Statement SANMINA-SCI: Calls for Redemption of US$120 Million Senior Notes UNITED RENTALS: Ends Merger Dispute with Cerberus VALASSIS COMMS: Wallace Snyder Joins Board of Directors P U E R T O R I C O JETBLUE AIRWAYS: Credit Suisse Keeps Outperform Rating on Firm LIN TV: S&P Affirms Ratings & Revises Outlook to Stable MICRON TECH: Posts US$262-Mil. Net Loss in Quarter Ended Nov. 29 T R I N I D A D & T O B A G O MIRANT CORP: Cash Flow Improvement Cues Moody's to Lift Ratings V E N E Z U E L A CHRYSLER LLC: "Operationally" Bankrupt, CEO Nardelli Says * VENEZUELA: 2007 Trade with Cuba Estimated at US$7 Billion - - - - - ================= A R G E N T I N A ================= ASOCIACION DE COOPERATIVAS: Moody's Changes Outlook to Positive --------------------------------------------------------------- Moody's Latin America has changed the rating outlook to positive from stable for Asociacion de Cooperativas Argentinas' B2 global local currency corporate family rating and A1.ar national scale rating. The drivers for the improved outlook are ACA's strong credit metrics for its current B2 rating category and the likely continued improvement in its credit profile, as inventories gradually move towards normalized levels. The B2 rating is supported by ACA's business mix diversity, strong member relationships, logistics capacity and the stability of its member services revenues. It also reflects ACA's geographic concentration in Argentina and relatively small scale, as well as lack of product differentiation and low margins, typical of the commodity business. The stability of the profitable export business has supported overall profitability during periods of weakness in commodity trading. More recently, as commodity prices have increased, that business has strengthened, leading to the improved debt protection measures of the past year, including: debt to EBITDA that has dropped from 4.7 times to 4.1 times and RCF to debt that has increased to 21% from 14%. As the company has expanded its member services business it has increased inventories, to approximately USD 200 million, which has been funded with short term debt. The company usually does not hold open positions and therefore we don't view this as a significant increase in ACA's commodity risk. Moody's expects that inventories will gradually move towards normalized levels in the near to medium term. The positive rating outlook reflects ACA's ability to stabilize credit metrics and our view that ACA will continue to be able to sustain relatively strong operating performance and market share during normal levels of commodity price volatility. Upward rating pressure could build if ACA's debt to EBITDA was sustained below 5 times and EBIT to interest above 2.5 times, in combination with progress in normalizing inventory levels. Although a rating downgrade is not likely in the near term, downward pressure could build if there is an negative shift in ACA's market position, business model, operating efficiency or market share. A rating downgrade could also result from Debt to EBITDA above 6 times or EBIT to Interest below 1.5 times. Founded in 1922, ACA is an agricultural cooperative that is among the most important grain exporters in Argentina, with an annual traded volume of 10.7 million tons during the 2006 /2007 harvest season , or 11% of Argentina's production. With more than 150 associated members (co-ops), ACA had revenues for the fiscal year ending on June 30, 2007, of ARS 2.5 billion (approximately US$770 million). BALLY TECHNOLOGIES: Fitch Lifts Issuer Default Rating to B ---------------------------------------------------------- Fitch Ratings has upgraded Bally Technologies' (NYSE: BYI) Issuer Default Rating and senior secured bank debt ratings as: -- IDR to 'B' from 'B-'; -- Secured bank credit facilities to 'BB/RR1' from 'B/RR3'. The secured credit facilities comprise a term loan with US$292 million outstanding as of Sept. 30, 2007, and a US$75 million revolver. The Rating Outlook was revised to Positive from Stable, which reflects the company's significant progress in terms of its operating performance and its financial restatements as well as expectations of continued improvements in cash flow generation. The rating actions are based on Bally's significantly improved product pipeline and solid acceptance of the Alpha operating system platform over the past couple of years, which is generating meaningful improvement in its financial performance. On Dec. 20, 2007, Bally announced its F1Q'08 (period end Sept. 30, 2007) results and revised its expectations for FY08. Driven by its improved product platform, Bally generated 23% revenue growth to US$189 million in F1Q'08 and expects 27% growth in FY08 to more than US$865 million (up from previous expectations of US$830 million). Reported Adjusted EBITDA more than doubled to US$58.5 million in F1Q'08 compared to US$26.4 million in F1Q'07, so LTM Adjusted EBITDA through Sept. 30, 2007 is roughly US$171 million. Bally's leverage ratio according to its credit facility as of Sept. 30, 2007, was 1.82x versus a maximum allowable of 3.50x. Bally's credit profile has improved dramatically with substantial operating momentum, roughly US$37 million in debt maturities in FY08 and FY09, unrestricted cash balances of US$51.6 mil as of Sept. 30, 2007 (up from US$40.8 million as of June 30, 2007), US$48.7 million available on its credit revolver, and a somewhat flexible capex budget. Tempering the financial improvement is the fact that the company has been under investigation by the SEC since 2005. In its most recent audited 10K dated June 30, 2007, the company continues to note material weaknesses in internal controls over financial reporting, with revenue recognition and inventory valuation among the most significant items. Delinquent SEC filings had been weighing on Bally's credit rating and it appears that Bally has resolved many of its reporting issues with Friday's filing of the F1Q'08 10Q. The company has become up-to-date with its SEC filings, having filed three 10Ks and seven 10Qs since November 2006. Additional concerns include litigation risk and how Bally will fare when the industry enters a new technology-driven upcycle in the next 12 months to 24 months with the onset of server-based gaming, which could benefit Bally as well as the other major players including IGT, WMS, and Aristocrat. While competition has increased since the peak of the last cycle, IGT is likely to remain the dominant player, in Fitch's view, because it has the most financial resources, the broadest product pipeline, and the largest sales/marketing team. Fitch believes Bally's improved financial position and operational turnaround should help it to compete in the next cycle, but maintenance of Bally's recent market share gains could become more challenging. An upgrade from current ratings may be influenced by how Bally performs as server-based gaming becomes commercialized in 2008-2009. The recovery ratings and notching reflect Fitch's recovery expectations under a distressed scenario. Bally's recovery ratings reflect Fitch's expectation that the enterprise value of the company, and hence recovery rates for its creditors, will be maximized in a restructuring scenario (going concern), rather than a liquidation given the company's limited tangible asset base. An 'RR1' recovery rating reflects Fitch's belief that 100% recovery, including the assumption of a fully drawn revolver, is likely under a default scenario. Given the continued strong operating momentum that has generated US$171 million in LTM Adjusted EBITDA, Fitch has updated its default EBITDA assumption for its recovery ratings to US$105 million, or a 38% discount. That is based on the outstanding term loan balance, a fully drawn revolver assumption, and the credit facility's 3.5 times leverage covenant. Fitch believes the credit facility is more than 100% covered with a modest market multiple assumption of 6x, which is below recent industry transactions since the current credit market environment is likely to pressure transaction multiples. Therefore, Fitch's credit facility rating is notched up three to 'BB' from Bally's IDR of 'B'. Fitch's Recovery Ratings are a relative indicator of creditor recovery prospects on a given obligation within an issuers' capital structure in the event of a default. Headquartered in Las Vegas, Nevada, Bally Technologies, Inc. (NYSE: BYI) -- http://www.BallyTech.com/-- designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide- area progressives and Class II lottery and central determination games and platforms. Bally Technologies also offers an array of casino management, slot accounting, bonus, cashless, and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Mississippi. The company's South American operations are located in Argentina. The company also has operations in France, Germany, Macau, China, India, and the United Kingdom. COMERCIALIZADORA MELELLA: Files Reorganization Petition ------------------------------------------------------- Comercializadora Melella S.R.L. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Comercializadora Melella to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Comercializadora Melella S.R.L. Luis Maria Campos 1111, Piso 1 Buenos Aires, Argentina COMPANIA TEXTIL: Files for Reorganization in Buenos Aires Court --------------------------------------------------------------- Compania Textil de Servicios S.R.L. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Compania Textil to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. HUGO SANTIAGO: Trustee Verifies Claims Por Via Incidental --------------------------------------------------------- Juan Carlos Codagnone, the court-appointed trustee for Hugo Santiago e Hijos S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim "por via incidental." Mr. Codagnone will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Mar del Plata, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Hugo Santiago 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 Hugo Santiago's accounting and banking records will be submitted in court. Mr. Codagnone is also in charge of administering Hugo Santiago's assets under court supervision and will take part in their disposal to the extent established by law. Infobae didn't state the reports submission deadlines. The debtor can be reached at: Hugo Santiago e Hijos S.A. Moreno 3267, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Juan Carlos Codagnone Arenales 3061, Mar del Plata Buenos Aires, Argentina LOMA NEGRA: Moody's Ups Cur. Corp. Family Rating to Ba3 from B2 --------------------------------------------------------------- Moody's Investors Service has upgraded Loma Negra's global local currency corporate family rating to Ba3 from B2. At the same time, Moody's confirmed its Ba3 global local currency rating and Aa2.ar national scale rating for Loma Negra's US$100 million in senior unsecured notes due 2013, which are guaranteed by Camargo Correa Cimentos. The outlook for all ratings is stable. The ratings reflect Loma Negra's leading position in the Argentine cement market and solid financial profile, with low leverage and high operating margins, which are sustained by logistics-related barriers to entry. The ratings also incorporate expected support from CCC, due to the presence of cross default provisions that would cause an acceleration of most of CCC's debt in the event of a default at Loma Negra. However, the ratings are constrained by uncertainties related to the pricing environment in Argentina, risks related to energy costs and a likely increase in capital expenditures, resulting in increased leverage. Finally, the ratings consider a likely slowdown in the recent strong growth in cement consumption in Argentina. Moody's National Scale Ratings are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs in Argentina are designated by the ".ar" suffix. NSRs differ from global scale ratings in that they are not globally comparable to the full universe of Moody's rated entities, but only with other rated entities within the same country. The two-notch upgrade of Loma Negra's stand alone corporate family rating results from the company's improved credit metrics and incorporation of expected parent company support from CCC into the rating rationale, largely due to cross-default provisions included in nearly all of CCC's debt indentures. During the past three years, Loma Negra's operating margins, cash flow and debt ratios have improved due to the combined impact of increased revenues, cost cuts and a recovery of cement prices in the domestic market, allowing the company to pay down debt with free cash flow. Loma Negra's Total Adjusted Debt to EBITDA ratio declined to 1.4x in fiscal-year 2007 from 5.6x in fiscal-year 2003, while cash and marketable securities of ARS170 million at Aug. 31, 2007, equal more than 187% of short term debt obligations. The stable outlook considers that Loma Negra will maintain a strong credit profile for its rating category, but will continue to face risks inherent to operating in Argentina, such as uncertainly related to pricing power and demand volatility, in addition to potential margin pressure resulting from higher energy prices or natural gas shortages. The stable outlook is also related to our stable outlook for CCC. An upgrade in the ratings could result from an improvement in the macroeconomic environment in Argentina, allowing for more certainty with respect to future revenues and operating margins. An upgrade could also result from an upgrade in CCC's ratings. In terms of financial metrics, an upgrade would require debt to EBITDA of less than 1.5 times, free cash flow to debt of more than 20% and EBIT interest coverage of above 7 times, all on a sustainable basis. A downgrade in the ratings could result from deterioration in the macroeconomic environment in Argentina or a downgrade in CCC's ratings. In addition, a downgrade could result from debt to EBITDA leverage of above 3.5 times. Loma Negra, a 99% owned subsidiary of CCC, is the leading cement company in Argentina, with total revenues of US$360 million and a leading market position, as demonstrated by its domestic market share of 47%. Camargo Correa group is one of the largest private sector conglomerates in Brazil, with net revenues of about BRL 8.3 billion (approximately US$3.9 billion) in 2006. The group's principal business segments include engineering and construction, cement, textiles, footwear, energy and transportation, with approximately 16% of total revenues coming from the cement segment, which is regarded as a core business. MICAMAR SRL: Trustee Verifies Proofs of Claim Until Feb. 15 ----------------------------------------------------------- P. Manes, the court-appointed trustee for Micamar S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until Feb. 15, 2008. P. Manes will present the validated claims in court as individual reports on April 4, 2008. The National Commercial Court of First Instance in Mar del Plata, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Micamar 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 Micamar's accounting and banking records will be submitted in court on May 19, 2008. The debtor can be reached at: Micamar S.R.L. Guanahani 2961/63, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: P. Manes Rawson 2272, Mar del Plata Buenos Aires, Argentina NERT SA: Proofs of Claim Verification Deadline Is March 10, 2008 ---------------------------------------------------------------- Mario Isaac Bekierman, the court-appointed trustee for Nert S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until March 10, 2008. Mr. Bekierman will present the validated claims in court as individual reports on April 21, 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 Nert 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 Nert's accounting and banking records will be submitted in court on June 3, 2008. Mr. Bekierman is also in charge of administering Nert's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Mario Isaac Bekierman Avenida Raul Scalabrini Ortiz 258 Buenos Aires, Argentina RED HAT: Earns US$20.3 Million in Third Quarter Ended Nov. 30 ------------------------------------------------------------- Red Hat Inc. has reported US$20.3 million of net income for the third fiscal quarter ended Nov. 30, 2007, compared with US$18.2 million for the prior quarter and US$14.6 million for the same period in 2006. Red Hat's current fiscal year will end Feb. 29, 2008. The company's Total revenue for the quarter was US$135.4 million, an increase of 28% from the year ago quarter and 6% from the prior quarter. Subscription revenue was US$115.7 million, up 30% year-over-year and 6% sequentially. Non-GAAP adjusted net income for the quarter was US$39.7 million after adjusting for stock compensation and tax expense. This compares to non-GAAP adjusted net income of US$36.9 million in the prior quarter and US$30.1 million, in the year ago period. Non-GAAP operating cash flow has totaled US$76.7 million for the quarter, up 24% from the year ago quarter and 20% sequentially. Total cash, cash equivalents and investments as of Nov. 30, 2007 were US$1.3 billion. At quarter end, Red Hat's total deferred revenue balance was US$422.6 million, an increase of 36% year- over-year and 12% sequentially. "We are very pleased to be recognized by CIO's for the fourth consecutive year as the most valued Enterprise Software Vendor and best overall IT Vendor for the third time in four years," stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. "There is a direct correlation between our ability to deliver real business value and the loyalty of our large and growing customer base. As a result of strong market demand and solid execution from our worldwide organization, we were able to deliver another strong financial performance in the third quarter and we are optimistic about our outlook." About Red Hat Headquartered in Raleigh, North Carolina Red Hat, Inc. -- http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Standard & Poor's Ratings Services has revised its outlook on Red Hat Inc. to positive from stable and affirmed the ratings, including the 'B+' corporate credit rating. SUPERAR SRL: Seeks for Bankruptcy Approval in Buenos Aires Court ---------------------------------------------------------------- The National Commercial Court of First Instance No. 24 in Buenos Aires is studying the merits of Superar SRL's request to enter bankruptcy protection. Superar filed a "Quiebra Decretada" petition following cessation of debt payments. The petition, once approved by the court, will transfer control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. Clerk No. 48 assists the court in this case. The debtor can be reached at: Superar SRL Avenida Corrientes 2312 Buenos Aires, Argentina TECSYSTEM SRL: Files for Reorganization Petition in Buenos Aires ---------------------------------------------------------------- Tecsystem S.R.L. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Tecsystem to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Tecsystem S.R.L. Avenida Belgrano 615 Buenos Aires, Argentina ============= B A H A M A S ============= HARRAH'S ENT: Commences Tender Offers for Conv. Debt Securities --------------------------------------------------------------- Harrah's Operating Company Inc., a subsidiary of Harrah's Entertainment Inc., is commencing cash tender offers and consent solicitations for five series of outstanding debt securities. In addition, Harrah's Operating and Harrah's Entertainment are commencing a cash tender offer and consent solicitation for one series of outstanding convertible debt securities. The tender offers and consent solicitations are being conducted in connection with the previously announced agreement of Harrah's Entertainment to be merged with an affiliate of Apollo Global Management LLC and TPG Capital LP. Completion of the tender offers and consent solicitations is not a condition to completion of the merger. However, each tender offer and consent solicitation is itself subject to the satisfaction of certain conditions, including the satisfaction of the conditions precedent to the merger as stated in the agreement and plan of merger dated as of Dec. 19, 2006, by and among Harrah's Entertainment, Hamlet Holdings LLC and Hamlet Merger Inc., and the receipt of consents of the noteholders representing a majority of the outstanding principal amount of each series of the securities. The consent solicitation with respect to each series of securities is not conditioned upon receipt by the company of the requisite consent for any other series of securities. If Harrah's Operating and, in the case of the convertible debt securities, Harrah's Entertainment, make a material change in the terms of any offer or consent solicitation or the information concerning any offer or consent solicitation, they will then disseminate additional offering materials and extend such offer or, if applicable, consent solicitation, to the extent required by law. Debt Securities The tender offers and consent solicitations with respect to the US$250,000,000 principal amount outstanding of Senior Floating Rate Notes due 2008 (CUSIP No. 413627AR1) and the other notes will expire at 8:00 a.m., New York City time, on Jan. 23, 2008, unless extended or earlier terminated by Harrah's Operating. In order to be eligible to receive the total consideration, which includes the consent payment, holders must validly tender, and not validly withdraw, their Debt Securities prior to 5:00 p.m., New York City time on Jan. 7, 2008, unless extended or earlier terminated by Harrah's Operating. Holders tendering their Debt Securities after the applicable Consent Payment Deadline but prior to the applicable Expiration Date will be eligible to receive an amount equal to the tender offer consideration, which is the total consideration less the consent payment. Debt Securities purchased in the tender offers will be paid for on the applicable payment date for each tender offer, which, assuming the tender offers are not extended, is expected to be promptly after the applicable Expiration Date. Payment for Debt Securities validly tendered and accepted will include accrued and unpaid interest to, but not including, the applicable payment date. Tenders of debt securities prior to the Consent Payment Deadline may be validly withdrawn and consents may be validly revoked at any time prior to the Consent Payment Deadline, but not thereafter. Accordingly, tenders of Debt Securities and the related consents delivered after the Consent Payment Deadline will be irrevocable. The tender offer consideration for the Floating Rate Notes (CUSIP No. 413627AR1; ISIN No. US413627AR15) is US$970, and the total consideration for the Floating Rate Notes is US$1,000, in each case for each of the US$1,000 principal amount of the Floating Rate Notes tendered and accepted for purchase, pursuant to the tender offers. The consent payment included in the total consideration for the Floating Rate Notes is US$30.00 for each US$1,000 principal amount of the Floating Rate Notes validly tendered and not validly withdrawn prior to the Consent Payment Deadline. The total consideration for each US$1,000 principal amount of the remaining series of Debt Securities validly tendered and not validly withdrawn pursuant to the tender offers is the price equal to: (i) the sum of: (a) the present value, determined in accordance with standard market practice, on the payment date for purchased Debt Securities of US$1,000 on the applicable maturity date for the Debt Securities; plus (b) the present value on the scheduled payment date for purchased Debt Securities of the interest that would be payable on, or accrue from, the last interest payment date prior to such scheduled payment date until the applicable maturity date for the 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 applicable U.S. Treasury Security, 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 Jan. 8, 2008, unless modified by Harrah's Operating in its sole discretion, as displayed on the page of the Bloomberg Government Pricing Monitor or any recognized quotation source selected by Citi in its sole discretion if the Bloomberg Government Pricing Monitor is not available or is manifestly erroneous; plus (B) the Applicable Spread, minus (ii) accrued and unpaid interest to, but not including, the scheduled payment date. Holders tendering their Debt Securities will be required to consent to the proposed amendments to the indentures governing the Debt Securities, which would eliminate or make less restrictive substantially all of the restrictive covenants, as well as certain events of default and related provisions, in the indentures. The tender offers and consent solicitations are being made pursuant to the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated Dec. 21, 2007, for the Debt Securities and the related Letter of Transmittal and Consent (the "Debt Securities Offer to Purchase"). Convertible Debt Securities Concurrent with the tender offers and consent solicitations for the Debt Securities, Harrah's Operating and Harrah's Entertainment are separately commencing a cash tender offer and consent solicitation with respect to the US$375,000,000 principal amount outstanding of Floating Rate Contingent Convertible Senior Notes due 2024 of Harrah's Operating (CUSIP No. 127687AA9; CUSIP No. 127687AB7; ISIN No. US127687AB73; ISIN No. US127687AA90). The tender offer and consent solicitation with respect to the Convertible Debt Securities will expire at 8:00 a.m., New York City time, on Jan. 23, 2008, unless extended or earlier terminated by Harrah's Operating and Harrah's Entertainment. The consideration for each US$1,000 principal amount of Convertible Debt Securities validly tendered and not validly withdrawn pursuant to the tender offer and consent solicitation is US$1,379.52, plus accrued and unpaid interest to, but not including, the payment date, which is expected to be promptly after the expiration date. Holders tendering their Convertible Debt Securities will be required to consent to the proposed amendments to the indenture governing the Convertible Debt Securities, which would eliminate or make less restrictive substantially all of the restrictive covenants, as well as certain events of default and related provisions, in the indenture. The tender offer and consent solicitation is being made pursuant to the terms and conditions stated in the Offer to Purchase and Consent Solicitation Statement dated Dec. 21, 2007 for the Convertible Securities and the related Letter of Transmittal and Consent. Harrah's Operating and Harrah's Entertainment have retained Citi to act as lead dealer manager in connection with the tender offers and consent solicitations. Questions about the tender offers and consent solicitations may be directed to Citi at (800) 558-3745 (toll free) or (212) 723-6106 (collect). Copies of the Offer Documents and other related documents may be obtained from Global Bondholder Services Corporation, the information agent for the tender offers and consent solicitations, at (866) 924-2200 (toll free) or (212) 430-3774 (for banks and brokers only). About Apollo Management L.P. Based in New York, Apollo Management L.P. is a private equity L.P. firm, founded in 1990 by Leon Black. It also has offices in Los Angeles and London. It has invested over US$16 billion in companies inside and outside of the United States. About TPG Capital Headquartered in Fort Worth, Texas, TPG Capital, also known as Texas Pacific Group -- http://www.texaspacificgroup.com/-- has staked its claim on the buyout frontier. The company, which does not get involved in the day-to-day operations of the companies in which it invests, usually holds onto an investment for at least five years, although consistent moneymakers may be kept indefinitely. About Harrah's Entertainment Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc.(NYSE: HET) -- http://www.harrahs.com/-- has grown through development of new properties, expansions and acquisitions, and now owns or manages casino resorts on four continents and hosts over 100 million visitors per year. The company's properties operate under the Harrah's, Caesars and Horseshoe brand names; Harrah's also owns the London Clubs International family of casinos and the World Series of Poker. Harrah's also owns the London Clubs International family of casinos. * * * Harrah's Entertainment Inc. continues to carry Standard & Poor's "BB" long term foreign and local issuer credit ratings, which were placed in December 2006. HARRAH'S ENT: Secures Regulatory Approvals on Merger Deal --------------------------------------------------------- Harrah's Entertainment Inc. recently obtained regulatory approval from the National Indian Gaming Commission allowing the consummation of the proposed acquisition of Harrah's by affiliates of Apollo Global Management L.P. and TPG Capital to proceed while the NIGC finalizes its review. NIGC's approval completes all regulatory approvals needed to close the transaction. Harrah's previously obtained regulatory approvals from these state agencies: Nevada Gaming Commission Pennsylvania Gaming Control Board Louisiana Gaming Control Board Iowa Racing and Gaming Commission Missouri Gaming Commission Illinois Gaming Board Indiana Gaming Commission Mississippi Gaming Commission New Jersey Casino Control Commission The transaction is expected to close in early 2008. As reported in the Troubled Company Reporter on Dec. 20, 2006, Harrah's entered into a definitive agreement for affiliates of Texas Pacific Group and Apollo Management L.P. to acquire Harrah's in an all-cash transaction valued at approximately US$27.8 billion, including the assumption of approximately US$10.7 billion of debt. Under the terms of the agreement, Harrah's stockholders will receive US$90.00 in cash for each outstanding Harrah's share. This represents a premium of approximately 36% over Harrah's closing share price on Sept. 29, 2006, the last trading day before disclosure of the initial offer made by Apollo and TPG to acquire Harrah's for US$81.00 per share. About Apollo Management L.P. Based in New York, Apollo Management L.P. is a private equity L.P. firm, founded in 1990 by Leon Black. It also has offices in Los Angeles and London. It has invested over US$16 billion in companies inside and outside of the United States. About TPG Capital Headquartered in Fort Worth, Texas, TPG Capital, also known as Texas Pacific Group -- http://www.texaspacificgroup.com/-- has staked its claim on the buyout frontier. The company, which does not get involved in the day-to-day operations of the companies in which it invests, usually holds onto an investment for at least five years, although consistent moneymakers may be kept indefinitely. About Harrah's Entertainment Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc.(NYSE: HET) -- http://www.harrahs.com/-- has grown through development of new properties, expansions and acquisitions, and now owns or manages casino resorts on four continents and hosts over 100 million visitors per year. The company's properties operate under the Harrah's, Caesars and Horseshoe brand names; Harrah's also owns the London Clubs International family of casinos and the World Series of Poker. Harrah's also owns the London Clubs International family of casinos. * * * Harrah's Entertainment Inc. continues to carry Standard & Poor's "BB" long term foreign and local issuer credit ratings, which were placed in December 2006. YPF SA: Repsol Inks Pact with Eskenazi for 14.9% Stake Sale ----------------------------------------------------------- Spanish oil firm Repsol YPF posted on its Web site that it has signed a memorandum of understanding for the sale of a 14.9% stake of its Argentine subsidiary YPF SA to Argentine investor and Grupo Petersen head Enrique Eskenazi. As reported in the Troubled Company Reporter-Latin America on Dec. 20, 2007, Repsol was reported to be selling a 25% stake of YPF to local businessman Enrique Eskenazi for US$3.75 billion. Business News Americas relates that shares were suspended last Friday on speculation that the signing was imminent. Repsol told BNamericas that Eskenazi will pay US$2.24 billion for the 14.9% stake. BNamericas notes that the deal will also include a buy option for a 10.1% stake in YPF. The report says that Repsol "will float another 20% of YPF on the stock market" in 2008. The sales will help Repsol raise funds to expand exploration and production in other areas like the Gulf of Mexico, BNamericas states. About Repsol Repsol YPF, S.A. is an integrated oil and gas company engaged in all aspects of the petroleum business, including exploration, development and production of crude oil and natural gas, transportation of petroleum products, liquefied petroleum gas and natural gas, petroleum refining, petrochemical production and marketing of petroleum products, petroleum derivatives, petrochemicals and natural gas. The company operates in four segments: Exploration and Production, Refining and Marketing, Chemicals, and Gas and Electricity. About YPF SA Headquartered in Buenos Aires, Argentina, YPF S.A. is an integrated oil and gas company engaged in the exploration, development and production of oil and gas, natural gas and electricity-generation activities (upstream), the refining, marketing, transportation and distribution of oil and a range of petroleum products, petroleum derivatives, petrochemicals and liquid petroleum gas (downstream). The company is a subsidiary of Repsol YPF, S.A., a Spanish company engaged in oil exploration and refining, which holds 99.04% of its shares. Its international operations are conducted through its subsidiaries, YPF International S.A. and YPF Holdings Inc. * * * Fitch Ratings assigned BB+ long-term issuer default rating on YPF SA. Fitch said the outlook is stable. Moody's Investors Service assigned these ratings on YPF SA: -- B2 long-term foreign currency corporate family rating; and -- Ba2 foreign currency senior unsecured rating; Moody's said the outlook is negative. RESTRUCTURED CAPITAL: Proofs of Claim Filing Ends Today ------------------------------------------------------- Restructured Capital Management Ltd.'s creditors are given until Dec. 27, 2007, to prove their claims to LCF Fund Advisory 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. Restructured Capital's shareholder decided on Nov. 8, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: LCF Fund Advisory Ltd. 51 Frederick Street, P.O. Box N-1136 Nassau, Bahamas =========== B E L I Z E =========== ANDREW CORP: CommScope Finalizes Acquisition Details ---------------------------------------------------- CommScope Inc. has finalized the agreement for the acquisition of Andrew Corporation. The consideration to be paid for each outstanding share of Andrew common stock in the merger has been determined to be US$13.50 in cash and US$1.50 in CommScope common stock. Andrew stockholders will receive, for each Andrew share, US$13.50 in cash and 0.031543 shares of CommScope common stock. This fractional share of CommScope common stock was calculated according to the terms of the merger agreement by dividing US$1.50 by US$47.554, which was the volume weighted average of the closing sale prices for a share of CommScope common stock over the ten consecutive trading days ended on Dec. 24, 2007. The merger is expected to close today. About CommScope Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) -- http://www.commscope.com/-- is a world leader in infrastructure solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands, CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. CommScope has facilities in Brazil, Australia, China and Ireland. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including China, India, Italy, Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. * * * As reported in the Troubled Company Reporter-Latin America Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its ratings on Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for the company. ============= B E R M U D A ============= BRUNSWICK PARTNERS: Will Hold Final Shareholders Meeting Today -------------------------------------------------------------- Brunswick Partners Three Limited will hold its final shareholders meeting on Dec. 27, 2007, at 10:00 a.m. at: Leman Management Limited Wessex House, 2nd Floor 45 Reid Street, Hamilton HM12 Bermuda These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Brunswick Partners' shareholders agreed on Nov. 9, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Edward Allanby c/o Maples and Calder P.O. Box 309, George Town Ugland House, South Church Street George Town, Grand Cayman Cayman Islands ============= B O L I V I A ============= INTERMEC TECH: Hires David Yung as Asia Pacific Vice President -------------------------------------------------------------- Intermec Technologies Inc. has appointed David Yung as its Vice President and General Manager, Asia Pacific Region. Mr. Yung is a technology veteran with over twenty years of general management experience in the Asia Pacific region. Mr. Yung was most recently at RS Components LTD, where he served as Asia Pacific, General Manager. He was responsible for building out a partner and distribution network for a B-to-B electronic and automation instrumentation business line. Previous to his role at RS Components, Mr. Yung was the Managing Director at Lenovo, Inc., leading an enterprise sales capture team focusing on large project awards and deployments to top tier clients throughout Northern and Southern Asia. "David is a results oriented general manager who demonstrates effective team building, communications and planning skills," said Michael A. Wills, SVP of Global Sales and Service. "These leadership skills are a vital component to our growth prospects in the Asia Pacific region." About Intermec Inc. Intermec Inc. -- http://www.intermec.com/-- develops, manufactures and integrates technologies that identify, track and manage supply chain assets. Core technologies include RFID, mobile computing and data collection systems, bar code printers and label media. The company has locations in Australia, Bolivia, Brazil, China, France, Hong Kong, Singapore and the United Kingdom. * * * Standard & Poor's Rating Services raised its ratings on Everett, Washington-based Intermec Inc. to 'BB-' from 'B+'. The upgrade reflects expectations that Intermec will sustain current levels of profitability and leverage. S&P said the outlook is stable. =========== B R A Z I L =========== BANCO NACIONAL: Approves BRL2.6-Bil. Loan for Estreito Plant ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social's power department director Nelson Siffert told Business News Americas that the bank has authorized a BRL2.6-billion loan for construction of the 1,087-megawatt Estreito hydro plant. BNamericas relates that French company Suez Energy will build Estreito in Brazilian states Tocantins and Maranhao. Estreito is the largest hydro plant included in the federal growth acceleration program PAC. Mr. Stiffert told BNamericas that the plant will begin operating in 2010. It has already sold energy in an auction for delivery in 2012. Mr. Stiffert commented to BNamericas, "Owners are rushing to get the plant operating as early as possible so they can sell power to free market clients. There are currently more than 2,000 workers involved in Estreito construction." A BRL3.60-billion investment is expected for Estreito, BNamericas states, citing Mr. Siffert. 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: Eyes 20% Growth in Power Sector Investments ----------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social's head Luciano Coutinho told reporters that it expects investments in the Brazilian power sector to increase 20% a year from 2008 to 2011, totaling BRL101 billion in the four-year period. Business News Americas relates that Banco Nacion forcasted in 2006 that power investments for the 2007 to 2010 period would total BRL88.2 billion for the four years combined. Mr. Coutinho commented to BNamericas, "There will be a boom in power sector investments in the [2008-11] period, as we will have removed some major obstacles such as in environmental licensing, for example." BNamericas notes that the amount of investments indicates, "There is a high pent-up demand for energy and infrastructure investments in Brazil, as projects were held back in recent years due to obstacles such as licensing." Mr. Coutinho told BNamericas, "One of the sectors with most pent-up demand is energy, where the supply-demand balance is extremely tight." Power sector investments include the 3.15-gigawatt Santo Antonio and 3.3-gigawatt Jirau hydro plants on the Madeira river in Amazon, BNamericas states. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007, respectively. BLOCKBUSTER INC: Fitch Affirms CCC Issuer Default Rating -------------------------------------------------------- Fitch Ratings has affirmed Blockbuster Inc.'s long-term Issuer Default Rating at 'CCC' and the senior subordinated notes at 'CC/RR6'. In addition, Fitch upgrades these ratings: -- US$450 million bank credit facility to 'CCC+/RR3' from 'CCC/RR4'; -- US$100 million term loan A to 'CCC+/RR3' from 'CCC/RR4'; -- US$550 million term loan B to 'CCC+/RR3' from 'CCC/RR4'. The Rating Outlook is Stable. The company had approximately US$991 million of debt outstanding as of Sept. 30, 2007. The affirmation of the IDR reflects the company's leading market position, strong brand recognition and increased financial flexibility following amendments made to the bank covenants in July 2007. In addition, the affirmation considers the weak financial performance, which has pressured credit metrics as well as the highly competitive operating environment. Nonetheless, BBI should have adequate liquidity available to meet its near-term capital and debt service requirements. The upgrades of the bank credit facility, term loan A and term loan B reflect a revised recovery analysis. Blockbuster is the leading player in the home video rental industry with US$5.4 billion in revenues in the last twelve months ended Sept. 30, 2007. The company's strong brand recognition and broad geographical coverage have resulted in BBI capturing approximately 40% market share in the rental market. In addition, Blockbuster amended its bank covenants in July 2007, which postpones its obligations to satisfy leverage and interest coverage ratios until January 2009. This provides the company with greater financial flexibility as management begins to implement its recent announced turnaround plan of focusing on profitable growth through a three-prong strategy of 1) restoring the rental business, 2) transitioning from rental focus to retail focus and 3) transforming from DVD focus to digital. Nevertheless, Blockbuster's operating performance continues to be weak driven by store closures and investments in the online business. As a result, operating LTM EBITDA margin decreased 260bps to 3.1%. Therefore, the company recently implemented cost-containment efforts related to corporate overhead, decreased store-level compensation and reduced advertising expenses. Furthermore, Blockbuster modified prices on its Total Access, Unlimited Total Access and mail-order-only plans to help improve operating margins. Given the weak operating results, credit metrics have deteriorated with LTM adjusted debt/EBITDAR and EBITDAR coverage of interest and rents at 7.6x and 1.1x, respectively. However, BBI has adequate near-term liquidity, mainly from its cash balance of US$129 million and availability of US$174 million under its credit facility as of Sept. 30, 2007, to meet its capital and debt service requirements. Of ongoing concern is the intense competition in the industry. In its store-based business, BBI competes with other video- rental chains, discounters and specialty retailers. In its online business, the company competes with other online video rental providers as well as competing technologies such as video-on-demand, pay-per-view and digital video records. The Recovery Ratings and notching in the debt structure reflect Fitch's recovery expectations in a distressed scenario. The bank credit facility, term loan A and term loan B are secured by land, buildings, improvements, equipment, furniture, permits, licenses, subleases, and real estate tax refunds owned by BBI as well as collateralized by pledges of stock of all of the company's domestic subsidiaries and 65% of the stock of certain international subsidiaries. They have been upgraded to 'CCC+/RR3' from 'CCC/RR4', reflecting expected recovery of 51%- 70% following the US$145 million reduction to outstanding borrowings and a US$50 million decrease in the bank credit facility commitment. The senior subordinated notes are rated 'CC/RR6', reflecting poor recovery prospects (0%-10%) in a distressed case. Fitch's Recovery Ratings are a relative indicator of creditor recovery prospects on a given obligation within an issuers' capital structure in the event of a default. Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.Blockbuster.com/-- provides in-home movie and game entertainment, with more than 9,000 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia, among others. CAMARGO CORREA: Moody's Affirms Ba3 Global Corp. Family Rating -------------------------------------------------------------- Moody's Investors Service has affirmed the Ba3 global local currency corporate family rating of Camargo Correa Cimento S.A. and the Ba3 foreign currency rating of the US$150 million Senior Unsecured Notes Due 2015 issued by Caue Finance Limited and fully and unconditionally guaranteed by CCC. The outlook is stable for all ratings. This rating action concludes the review initiated on Oct. 3, 2007. Ratings confirmed are: * Camargo Correa Cimento S.A. -- Ba3 Global Local Currency Corporate Family Rating * Caue Finance Limited -- Ba3 foreign currency rating on US$150 million Senior Unsecured Notes Due 2015 fully and unconditionally guaranteed by CCC. The confirmation of CCC's Ba3 rating reflects the company's improved liquidity position following the repayment of debentures maturing earlier this month with proceeds from a capital injection made by Camargo Correa S.A. and dividends from its Argentine subsidiary Loma Negra C.I.A.S.A. (rated Ba3 with stable outlook). Furthermore, the rating action incorporates Moody's view of a positive trend in the Brazilian cement industry, as evidenced by increased sales volume and prices during the second half of 2007. Market condition improvements in Brazil are anticipated to continue over the next couple of years, which together with positive prospects for Loma Negra should support strengthened cash flows and debt protection metrics on a consolidated basis. Moody's view of a positive near term trend for the cement industry in Brazil and Argentina is based on the need for infrastructure investments and booming residential construction activity, which is likely to be sustainable because consumer indebtedness remains relatively low in these countries. In spite of the weak performance of the Brazilian cement industry over the last 2 years as a consequence of low demand and depressed prices since the second half of 2005, operating margins of CCC on a consolidated basis have been supported by the outstanding performance of Loma Negra, which has benefited from favorable market conditions in the neighboring country. While on one hand CCC's relative small size, lack of transparency (cash flow statements are published only annually) and low product and geographical diversity relative to global peers are important constraining factors for the rating, Moody's regards the company's vertically integrated operations, proximity to own mines and efficient logistics, as well as its comfortable debt repayment schedule and adequate liquidity position as positive aspects. The stable outlook reflects Moody's expectation that market conditions in Brazil and Argentina will support healthy debt protection metrics and adequate liquidity over the near term. CCC's ratings could be positively affected in case Free Cash Flow to Total Adjusted Debt remains above 20% on a consistent basis, simultaneous with a healthy liquidity position as measured by cash plus projected 12-month Free Cash Flow in excess of 1.5x short-term debt. The ratings are likely to come under downward pressure if Total Adjusted Debt to EBITDA increases above 3x without an expected near-term improvement or if the liquidity position deteriorates, potentially resulting from high dividends distribution or debt-funded acquisitions. For the purpose of credit metrics calculation, Moody's uses the consolidated financials of CCC excluding Usinas Sider�rgicas de Minas Gerais -- USIMINAS. Camargo Correa Cimento S.A. is Brazil's fifth largest cement manufacturer, operating five plants in the country's southeastern and midwestern regions with total capacity of 6.1 million tons per year, in addition to producing ready-mix concrete through its subsidiary Companhia Brasileira de Concreto. Since 2005, CCC has owned Loma Negra, the leading cement company in Argentina with an estimated 47% local market share and 7.7 million tons of capacity. Combined revenues of CCC and Loma Negra total about US$625 million. Camargo Correa group is one of the largest private sector conglomerates in Brazil with net revenues of about BRL 8.3 billion (approximately US$3.9 billion) in 2006 originated mainly from its engineering & construction, cement, textiles, footwear, energy and transportation businesses. The group regards cement as a core business, which represents approximately 16% of the group's total sales. CAUE FINANCE: Moody's Affirms Ba3 Rating on US$150-Mil. Notes ------------------------------------------------------------- Moody's Investors Service has affirmed the Ba3 foreign currency rating of the US$150 million Senior Unsecured Notes Due 2015 issued by Caue Finance Limited. The notes are fully and unconditionally guaranteed by Camargo Correa Cimento S.A. Moody's also affirmed the global local currency corporate family rating of CCC. The outlook is stable for all ratings. This rating action concludes the review initiated on Oct. 3, 2007. Ratings confirmed are: * Camargo Correa Cimento S.A. -- Ba3 Global Local Currency Corporate Family Rating * Caue Finance Limited -- Ba3 foreign currency rating on US$150 million Senior Unsecured Notes Due 2015 fully and unconditionally guaranteed by CCC. The confirmation of CCC's Ba3 rating reflects the company's improved liquidity position following the repayment of debentures maturing earlier this month with proceeds from a capital injection made by Camargo Correa S.A. and dividends from its Argentine subsidiary Loma Negra C.I.A.S.A. (rated Ba3 with stable outlook). Furthermore, the rating action incorporates Moody's view of a positive trend in the Brazilian cement industry, as evidenced by increased sales volume and prices during the second half of 2007. Market condition improvements in Brazil are anticipated to continue over the next couple of years, which together with positive prospects for Loma Negra should support strengthened cash flows and debt protection metrics on a consolidated basis. Moody's view of a positive near term trend for the cement industry in Brazil and Argentina is based on the need for infrastructure investments and booming residential construction activity, which is likely to be sustainable because consumer indebtedness remains relatively low in these countries. In spite of the weak performance of the Brazilian cement industry over the last 2 years as a consequence of low demand and depressed prices since the second half of 2005, operating margins of CCC on a consolidated basis have been supported by the outstanding performance of Loma Negra, which has benefited from favorable market conditions in the neighboring country. While on one hand CCC's relative small size, lack of transparency (cash flow statements are published only annually) and low product and geographical diversity relative to global peers are important constraining factors for the rating, Moody's regards the company's vertically integrated operations, proximity to own mines and efficient logistics, as well as its comfortable debt repayment schedule and adequate liquidity position as positive aspects. The stable outlook reflects Moody's expectation that market conditions in Brazil and Argentina will support healthy debt protection metrics and adequate liquidity over the near term. CCC's ratings could be positively affected in case Free Cash Flow to Total Adjusted Debt remains above 20% on a consistent basis, simultaneous with a healthy liquidity position as measured by cash plus projected 12-month Free Cash Flow in excess of 1.5x short-term debt. The ratings are likely to come under downward pressure if Total Adjusted Debt to EBITDA increases above 3x without an expected near-term improvement or if the liquidity position deteriorates, potentially resulting from high dividends distribution or debt-funded acquisitions. For the purpose of credit metrics calculation, Moody's uses the consolidated financials of CCC excluding Usinas Siderurgicas de Minas Gerais -- Usiminas. Camargo Correa Cimento S.A. is Brazil's fifth largest cement manufacturer, operating five plants in the country's southeastern and midwestern regions with total capacity of 6.1 million tons per year, in addition to producing ready-mix concrete through its subsidiary Companhia Brasileira de Concreto. Since 2005, CCC has owned Loma Negra, the leading cement company in Argentina with an estimated 47% local market share and 7.7 million tons of capacity. Combined revenues of CCC and Loma Negra total about US$625 million. Camargo Correa group is one of the largest private sector conglomerates in Brazil with net revenues of about BRL8.3 billion (approximately US$3.9 billion) in 2006 originated mainly from its engineering & construction, cement, textiles, footwear, energy and transportation businesses. The group regards cement as a core business, which represents approximately 16% of the group's total sales. COMPANHIA ENERGETICA: Keeping 10% Stake in Madeira Energia ---------------------------------------------------------- Companhia Energetica de Minas Gerais said in a filing with the Sao Paulo stock exchange Bovespa that it will keep its 10% stake in the Madeira Energia consortium. The consortium will construct and run the 3.15-gigawatt Santo Antonio hydro plant in the Amazon, according to the filing. Companhia Energetica told Business News Americas, "The project evaluation presented by the company's senior management has attractive conditions in line with Cemig's [Companhia Energetica] investment policy in terms of economics, strategy and commercial issues." BNamericas notes that there were rumors that some Madeira Energia members could withdraw from the project due to the low cost of contracted power. Companhia Energetica told BNamericas that it is considering participation in other power projects in the Amazon, including the 3.3-gigawatt Jirau plant on Santo Antonio. Jirau will be auctioned in the first half of 2008. Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/ -- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). * * * As reported on March 8, 2007, Moody's Investors Service assigned corporate family ratings of Ba2 on its global scale and Aa3.br on its Brazilian national scale to Companhia Energetica de Minas Gerais aka CEMIG. The rating action triggered the upgrade of CEMIG's outstanding debentures due in 2009 and 2011, and of the BRL250 million 2014 senior unsecured guaranteed debentures of its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from B1 on the global scale and to Aa3.br from Baa2.br on the Brazilian national scale, concluding the review process initiated on Aug. 8, 2006. COMPANHIA SIDERURGICA: S&P Revises Outlook to Positive ------------------------------------------------------ Standard & Poor's Ratings Services has revised its outlook on Brazil-based steel maker Companhia Siderurgica Nacional and related entity National Steel S.A. to positive from stable. At the same time, Standard & Poor's affirmed its 'BB' corporate credit rating on CSN and its 'B+' rating on NatSteel. The rating action reflects CSN's improved credit measures and expectations that incremental cash flows from the development of its proprietary iron ore mine, Casa de Pedra, will allow the company to finance a portion of its capital expenditures program with internal cash generation and result in a positive trend for its leverage ratios. Standard & Poor's expects CdP's production to increase in 2008, adding to CSN's cash flow diversity and resilience, considering the favorable pricing of iron ore. In addition, favorable market conditions for steel in Brazil also bode well for strong cash generation in the future, further enhancing the company's ability to internally finance capital expenditures. Standard & Poor's believes that, while total gross indebtedness won't be significantly reduced, CSN will sustain stronger credit measures than historic ones, while continually improving its business profile with more diversity and profitability. "The ratings on CSN reflect the company's sizable gross debt leverage; aggressive capital expenditures in steel, iron ore, cement and transportation; exposure to volatile demand and price cycles; and increasing competition in its home and primary market of Brazil," said Standard & Poor's credit analyst Reginaldo Takara. These risks are offset by CSN's strong cash reserves, a privileged cost position, sound operating profiles in the steel and iron ore markets, favorable steel market shares in Brazil, strong export capabilities to offset occasional domestic steel demand fluctuations, and increasing business diversification. The rating on NatSteel reflects CSN's ability to upstream dividends to NatSteel through the layers of its corporate structure. The positive outlook reflects Standard & Poor's expectation that CSN will be successful in growing iron ore capacity at CdP in 2008 and in the future. Standard & Poor's expect this to improve cash flows to finance part of its considerable capital expenditure plans and result in stronger credit measures. The ratings could be raised if CSN delivers strong iron ore production in 2008, resulting in significant incremental cash flows from this operation. Permanent financial profile improvement would be reflected in the company's ability to consistently sustain its comfortable liquidity and stronger credit measures, such as total debt-to-EBITDA lower than 2.0x and FFO-to-total debt of more than 40%. Standard & Poor's also expects CSN to adequately manage its large maturities, which are due next year. The positive outlook assumes that CSN will not be involved in relevant M&A transactions that could curtail the improving trend of its financial profile. On the other hand, negative pressure on the ratings or outlook could come from a continuous increase in gross debt, causing financial metrics to deteriorate permanently, or from large acquisitions or further capital commitments that could hurt the company's current liquidity or add significtability ratios because of its important market share and the increasing focus on growing its consumer loan portfolio under prudent underwriting standards. Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal and the U.S. COMMSCOPE INC: Finalizes Acquisition Details for Andrew Corp. ------------------------------------------------------------- CommScope Inc. has finalized the agreement for the acquisition of Andrew Corporation. The consideration to be paid for each outstanding share of Andrew common stock in the merger has been determined to be US$13.50 in cash and US$1.50 in CommScope common stock. Andrew stockholders will receive, for each Andrew share, US$13.50 in cash and 0.031543 shares of CommScope common stock. This fractional share of CommScope common stock was calculated according to the terms of the merger agreement by dividing US$1.50 by US$47.554, which was the volume weighted average of the closing sale prices for a share of CommScope common stock over the ten consecutive trading days ended Dec. 24, 2007. The merger is expected to close today. About Andrew Corp. Headquartered in Westchester, Illinois, Andrew Corporation (NASDAQ: ANDW) -- http://www.andrew.com/-- designs, manufactures and delivers and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries including China, India, Italy, Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda and Brazil. About CommScope Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) -- http://www.commscope.com/-- is a world leader in infrastructure solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands, CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. CommScope has facilities in Brazil, Australia, China and Ireland. * * * As reported in the Troubled Company Reporter on Oct. 19, 2007, Standard & Poor's Ratings Services affirmed its ratings on CommScope Inc. and Westchester, Illinois-based Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for both companies. The ratings on Andrew will be withdrawn following its acquisition and debt refinancing. S&P said the outlook is stable. JABIL CIRCUIT: Reports US$62 Million Net Income in Third Quarter ---------------------------------------------------------------- Jabil Circuit Inc. has reported its preliminary, unaudited financial results for its first quarter of fiscal year 2008, ended Nov. 30, 2007. "We are pleased to post a strong quarter with significantly improved financial performance. Cash flow from operations and EBITDA margins were particularly strong and notably higher than last year," said President and Chief Executive Officer Timothy L. Main. The company had net income of US$62 million for the third quarter period of 2007, compared to net income of US$41.3 million for the same period in 2006. The company's Net revenue for the first quarter of fiscal 2008 increased 4.5 percent to US$3.4 billion compared to US$3.2 billion for the same period of fiscal 2007. GAAP operating income for the first quarter of fiscal 2008 increased 62 percent to US$98.9 million compared to US$61.1 million for the same period of fiscal 2007. GAAP net income for the first quarter of fiscal 2008 increased 50 percent to US$62.0 million compared to US$41.4 million for the same period in fiscal 2007. Jabil's first quarter of fiscal 2008 core operating income increased 44 percent to US$122.1 million or 3.6 percent of net revenue compared to US$85.0 million or 2.6 percent of net revenue for the first quarter of fiscal 2007. Core earnings increased 23 percent to US$74.6 million compared to US$60.5 million for the first quarter of fiscal 2007. Business Update The company expects second fiscal quarter of 2008 net revenue in a range of US$3.0 billion to US$3.1 billion, with an estimated core operating margin range of 2.2 to 2.4 percent. The guidance is consistent with historical seasonal patterns, particularly prevalent in consumer electronics sectors. Guidance suggests a 25 percent increase in year-over-year core operating income and a 4 percent increase in year-over-year revenue. Jabil said it expects fiscal year 2008 net revenue to range from US$13.0 billion to US$13.4 billion, with full year core operating income estimated to range from 3.1 percent to 3.6 percent or US$400 million to US$480 million. The company said its core earnings per share are estimated to be US$1.20 to US$1.50 per diluted share. GAAP earnings per share are estimated to be US$0.69 to US$.99 per diluted share. "In the first half of fiscal 2008, we expect core operating income and EBITDA margins well above previous year levels. In the second half of fiscal 2008, we expect to continue our focus on margin expansion, cash flow generation and higher returns on invested capital. As revenue increases in the second half, cash flow generation and margin expansion is expected to be particularly strong," said Mr. Main. Jabil Circuit, Inc., headquartered in St. Petersburg, Florida -- http://www.jabil.com/-- is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil Circuit has more than 50,000 employees and facilities in 20 countries, including Brazil, Mexico, United Kingdom and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 16, 2007, Fitch Ratings has downgraded and removed from Rating Watch Negative these ratings of Jabil Circuit, Inc.: -- Issuer Default Rating to 'BB+' from 'BBB-'; -- Senior unsecured revolving credit facility to 'BB+' from 'BBB-'; -- Senior unsecured debt to 'BB+' from 'BBB-' MILACRON INC: Weak Credit Metric Cues Moody's to Cut Ratings ------------------------------------------------------------ Moody's Investors Service lowered the ratings of Milacron Inc. Corporate Family, to Caa2 from Caa1; Probability of Default, to Caa2 from Caa1; and senior secured notes, to Caa2 from Caa1. The lowered ratings reflect the company's weak credit metrics and ongoing cash flow pressures. Milacron continues to face cyclical pressures in its plastics machinery markets and ongoing required pension payments. Without additional actions by the company's management, Moody's views the company's liquidity over the next twelve months to be at risk of deterioration resulting from stagnant free cash flow prospects over the intermediate term, and required pension payments and interest costs. Milacron will continue to have required pension payments after 2008. The company's ongoing cash requirements combined with a continued liquidity pressures could limit the company's operating flexibility over the intermediate term. The negative outlook reflects the company's weak operating metrics and the expectation that absent new cash sources the company's liquidity profile will narrow following the scheduled pension payments due in 2008. Milacron's current liquidity is sufficient to make the required pension payments in 2008. In addition, the company has frozen its current U.S. defined pension plan. However, operating flexibility could be impaired if the company's liquidity profile deteriorates. As of Sept. 30, 2007, Debt/EBITDA was 10.6x, and EBIT/Interest Coverage of 0.7x. As of Sept. 30, 2007, Milacron maintained US$37.5 million of cash on its balance sheet and approximately US$42 million available under its asset based revolving credit facility. The asset based facility requires the company to maintain US$10 million of excess availability, limits capital expenditures, and contains a springing minimum fixed charge coverage ratio in the event that excess availability is less than US$5 million. There is moderate availability under the company's senior secured notes' debt incurrence test for Milacron to obtain additional financing. * The ratings lowered are: -- Corporate Family rating, to Caa2 from Caa1 -- Probability of Default, to Caa2 from Caa1 -- US$225 million of 11.5% guaranteed senior secured notes due 2011, to Caa2 (LGD3 45%) from Caa1 (LD3 44%) -- Milacron maintains a US$105 million asset based revolving credit facility which is not rated by Moody's. The prior press release was on Jan. 10, 2006 confirming Milacron's ratings and changing the outlook to negative. Factors that could contribute to a stabilization of the rating outlook include: substantial growth in new business priced at profitable margins; stabilized raw material costs resulting in improved margins; additional equity contributions; or actions taken to improve liquidity. Consideration for a stabilized rating outlook or upward rating migration would arise if any combination of these factors were to result in leverage approaching 6.0x, or result in EBIT/interest coverage approaching 1x. Factors that could result in ratings downgrades include: liquidity not being adequately maintained over the next twelve months; increases in raw material prices which are not passed on to customers; deterioration in the company's plastic machinery end markets; or the inability to security additional liquidity and or financing to mitigate the minimum pension funding requirements in 2008. Consideration for downward rating migration would arise if any combination of these factors were to result in deteriorating liquidity. Headquartered in Cincinnati, Ohio, Milacron Inc. (NYSE: MZ) -- http://www.milacron.com/ -- is a global manufacturer and supplier of plastics-processing equipment and related supplies. Milacron is also one of the largest global manufacturers of synthetic water-based industrial fluids used in metalworking applications. The company has major manufacturing facilities in Brazil, North America, Europe, and Asia. Milacron's annual revenues approximated US$805 million over the last twelve months. The company has an office in South Korea, and joint ventures in China and India. In Europe, the company maintains operations in Belgium, Germany, Italy, the Netherlands, Spain, and England. NATIONAL STEEL: S&P Affirms B+ Rating with Positive Outlook ----------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'B+' rating on National Steel S.A. aka NatSteel. Standard & Poor's revised its outlook on Brazil-based steel maker Companhia Siderurgica Nacional and related entity National Steel S.A. to positive from stable and affirmed its 'BB' corporate credit rating on the firm. The rating action reflects CSN's improved credit measures and expectations that incremental cash flows from the development of its proprietary iron ore mine, Casa de Pedra, will allow the company to finance a portion of its capital expenditures program with internal cash generation and result in a positive trend for its leverage ratios. Standard & Poor's expects CdP's production to increase in 2008, adding to CSN's cash flow diversity and resilience, considering the favorable pricing of iron ore. In addition, favorable market conditions for steel in Brazil also bode well for strong cash generation in the future, further enhancing the company's ability to internally finance capital expenditures. Standard & Poor's believes that, while total gross indebtedness won't be significantly reduced, CSN will sustain stronger credit measures than historic ones, while continually improving its business profile with more diversity and profitability. "The ratings on CSN reflect the company's sizable gross debt leverage; aggressive capital expenditures in steel, iron ore, cement and transportation; exposure to volatile demand and price cycles; and increasing competition in its home and primary market of Brazil," said Standard & Poor's credit analyst Reginaldo Takara. These risks are offset by CSN's strong cash reserves, a privileged cost position, sound operating profiles in the steel and iron ore markets, favorable steel market shares in Brazil, strong export capabilities to offset occasional domestic steel demand fluctuations, and increasing business diversification. The rating on NatSteel reflects CSN's ability to upstream dividends to NatSteel through the layers of its corporate structure. The positive outlook reflects Standard & Poor's expectation that CSN will be successful in growing iron ore capacity at CdP in 2008 and in the future. Standard & Poor's expect this to improve cash flows to finance part of its considerable capital expenditure plans and result in stronger credit measures. The ratings could be raised if CSN delivers strong iron ore production in 2008, resulting in significant incremental cash flows from this operation. Permanent financial profile improvement would be reflected in the company's ability to consistently sustain its comfortable liquidity and stronger credit measures, such as total debt-to-EBITDA lower than 2.0x and FFO-to-total debt of more than 40%. Standard & Poor's also expects CSN to adequately manage its large maturities, which are due next year. The positive outlook assumes that CSN will not be involved in relevant M&A transactions that could curtail the improving trend of its financial profile. On the other hand, negative pressure on the ratings or outlook could come from a continuous increase in gross debt, causing financial metrics to deteriorate permanently, or from large acquisitions or further capital commitments that could hurt the company's current liquidity or add significtability ratios because of its important market share and the increasing focus on growing its consumer loan portfolio under prudent underwriting standards. National Steel Corporation is an integrated steel producer in the United States and is engaged in the manufacture and sale of a variety of flat-rolled carbon steel products, including hot- rolled, cold-rolled, galvanized, tin- and chrome-plated steels. The company targets high-value-added applications of flat-rolled carbon steel for sale primarily to the automotive, construction and container markets. National Steel is a holding company that is 100% indirectly controlled by Brazil's Steinbruch family. National Steel's sole asset consists of 100% of the redeemable preferred shares of Acos. Acos, in turn, is a holding company that owns 100% of Vicunha. Vicunha is also a holding company that owns 42.74% of the common shares and controlling interest in Brazilian steel producer Companhia Siderurgica Nacional. * BRAZIL: S&P Affirms Low B Foreign Currency Sovereign Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'BB+' long- term foreign, 'BBB' long-term local, 'B' short-term foreign, and 'A-3 short-term local currency sovereign credit ratings on the Federative Republic of Brazil, following a week of mixed success on the fiscal front. The outlook on the ratings is positive. Standard & Poor's also affirmed its 'brAAA' national scale credit rating, 'BBB' transfer and convertibility assessment, and 3 recovery rating on the republic. Standard & Poor's also published an article entitled "Loss Of CPMF Is A Setback-But Not A Derailment-For Brazil's Credit Prospects," which outlines the challenges facing Brazil following the Dec. 13, 2007, defeat of the Contribuicao Provisoria sobre Movimentacao Financeira, a financial transaction tax. The government voted to extend the Desvinculacao de Receitas da Uniao, a measure reducing revenue earmarking, after failing to do the same for CPMF, which represents 1.6% of GDP. According to Standard & Poor's credit analyst Lisa Schineller, the affirmation rests in part on the government's recommitment to maintain a 3.8% of GDP primary (noninterest) surplus for the nonfinancial public sector. "Any rating reflects a combination of strengths and weaknesses, and CPMF is not, in and of itself, critical for Brazil's rating," said Ms. Schineller. "However, the same cannot be said for a firm policy commitment to reduce the ratio of debt to GDP over time, improve the composition of debt, and reduce fiscal vulnerabilities." Ms. Schineller explained that how the government adjusts its fiscal stance given this negative shock will play an important role in shaping its creditworthiness. At this time, Standard & Poor's assumes that the "no change in the primary surplus target" commitment by the government will see the lost CPMF revenue compensated for by some combination of expenditure compression/cuts, modest tax adjustments, and revised revenue projections associated robust economic growth. "Any weakening of Brazil's fiscal commitment is particularly risky, given other recent global- and Brazil-specific developments; as the environment has changed, positive momentum is likely to slow and the cost of policy complacency rise," Ms. Schineller noted. "Although the events of this past week represent a setback, pressure on the ratings will remain on the upside as long as the government carries through with its commitment to its fiscal targets and its broader economic program benefits the country's economic and external dynamics," Ms. Schineller stated. =========================== C A Y M A N I S L A N D S =========================== AAA 2006-1: Proofs of Claim Filing Deadline Is Today ---------------------------------------------------- AAA 2006-1 Ltd.'s creditors are given until Dec. 27, 2007, to prove their claims to Martin Couch and Giles Kerley, 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. AAA 2006-1's shareholders agreed on Nov. 1, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Martin Couch Giles Kerley Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands AAA BRADCO: Proofs of Claim Filing Ends Today --------------------------------------------- AAA Bradco Holdings, Ltd.'s creditors are given until Dec. 27, 2007, to prove their claims to dms Corporate 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. AAA Bradco's shareholders agreed on Nov. 15, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: dms Corporate Services Ltd. Attention: Jenny Suto Ansbacher House P.O. Box 1344, Grand Cayman KY1-1208 Cayman Islands Telephone: (345) 946 7665 Fax: (345) 946 7666 ALPHASIMPLEX GLOBAL: Proofs of Claim Filing Is Until Today ---------------------------------------------------------- Alphasimplex Global Commodities and Currency Offshore Fund, Ltd.'s creditors are given until Dec. 27, 2007, to prove their claims to dms Corporate 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. Alphasimplex Global's shareholders agreed on Oct. 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: dms Corporate Services Ltd. Attention: Jenny Suto Ansbacher House P.O. Box 1344, Grand Cayman KY1-1208 Cayman Islands Telephone: (345) 946 7665 Fax: (345) 946 7666 ARKAIR LTD: Proofs of Claim Filing Deadline Is Today ---------------------------------------------------- Arkair Ltd.'s creditors are given until Dec. 27, 2007, to prove their claims to Joshua Grant and Richard Gordon, 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. Arkair's shareholders agreed on Nov. 7, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands BA INVESTMENTS: Proofs of Claim Filing Ends Today ------------------------------------------------- BA Investments' creditors are given until Dec. 27, 2007, to prove their claims to Joshua Grant and Richard Gordon, 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. BA Investments' shareholder decided on Nov. 2, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands BALEARES LEASING: Proofs of Claim Filing Deadline Is Today ---------------------------------------------------------- Baleares Leasing Ltd.'s creditors are given until Dec. 27, 2007, to prove their claims to Melanie Whittaker and Emile Small, 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. Baleares Leasing's shareholders agreed 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: Melanie Whittaker Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands BEAR STEARNS FUNDS: Will Hold Final Shareholders Meeting Today -------------------------------------------------------------- Bear Stearns Global Alpha Master Fund Limited and Bear Stearns Global Alpha Fund Limited will hold its final shareholders meeting on Dec. 27, 2007, at 10:00 a.m. at the company's registered office. These agenda will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Bear Stearns' shareholders agreed on Nov. 16, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Lawrence Edwards Attention: Jodi Jones P.O. Box 258, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8694 Fax: (345) 945 4237 BOMBAY CO: Selling Intellectual Property to Bombay Brands --------------------------------------------------------- The Bombay Company Inc. has agreed to sell its intellectual property, which includes the Bombay brand name, to Bombay Brands LLC, a joint venture of Hilco Consumer Capital and Gordon Brothers Group. In a transaction structure, The Bombay Company bankruptcy estate retains a 25% interest in Bombay Brands. The acquisition is subject to approval by the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division. Hilco Consumer Capital will assume day-to-day brand management responsibilities and will immediately undertake a strategic brand-rebuilding program designed to leverage the intrinsic value of the Bombay name. Through licensing strategies with retailers, wholesalers and franchisees, a broad-range of new consumer products will be created and marketed internationally. Assistance will be provided by The Bombay Company estate and the respected brand strategies and marketing firm, Graj + Gustavsen, also a partner in the joint venture group. John Collins, an executive with Hilco Consumer Capital, was named president and chief marketing officer of Bombay Brands. Mr. Collins is also president of Hilco TAG, owner of Tommy Armour Golf and RAM Golf. He has more than 25 years of experience in managing and marketing famous-name brands, including Nike, Bauer, Tommy Armour Golf, Volant Ski, Canon Inc., and Kubik. "The Bombay brand differentiates itself through a lifestyle approach in the home furnishings category," Mr. Collins stated. "It offers terrific opportunities for expansion and development into a whole new range of highly desirable and affordable consumer lifestyle products. Our plan will generate new products through licensed wholesalers and bring them to market through strategic retail and brand franchisee partners." "We are fortunate to have made the acquisition with Gordon Brothers Group," James "Jamie" Salter, chief executive officer of Hilco Consumer Capital, said. "We are also happy that we were able to structure the transaction in a way that allows the creditors of The Bombay Company Inc. to participate in the overall success of our strategy." "We are very pleased that the Bombay name will have the opportunity to flourish under the new venture," Elaine D. Crowley, SVP, CFO & Treasurer of The Bombay Company, noted. "We believe the expertise that Hilco Consumer Capital brings creates a unique opportunity to rebuild the Bombay brand and will ultimately provide loyal Bombay customers a solution for their home decorating needs. We look forward to working with the venture partners to rebuild the Bombay brand." About Hilco Consumer Capital Hilco Consumer Capital - http://www.hilcocc.com/-- was formed in 2006 to make private equity investments in consumer brands and build significant, additional value in them through innovative product development, creative marketing and licensing strategies. HCC is a unit of The Hilco Organization -- http://www.hilcotrading.com/-- a privately-held, diversified financial services firm specializing in appraising, purchasing, selling, financing and enhancing the performance of tangible and intangible business assets through a platform of 22 integrated business units located in North America and the European Union. About Gordon Brothers Gordon Brothers Group -- http://www.gordonbrothers.com/-- is an advisory, restructuring and investment firm specializing in the retail, consumer products, real estate and industrial sectors. Founded in 1903, Gordon Brothers provides asset valuations and appraisals, dispositions, real estate consulting, lending and advisory services. About Bombay Company Based in Fort Worth, Texas, The Bombay Company Inc., (OTC Bulletin Board: BBAO) -- http://www.bombaycompany.com/-- designs, sources and markets a unique line of home accessories, wall d�cor and furniture through 384 retail outlets and the Internet in the U.S. and internationally, including Cayman Islands. The company and five of its debtor-affiliates filed for Chapter 11 protection on Sept. 20, 2007 (Bankr. N.D. Tex. Lead Case No. 07-44084). Robert D. Albergotti, Esq., John D. Penn, Esq., Ian T. Peck, Esq., and Jason B. Binford, Esq., at Haynes and Boone, LLP, represent the Debtors. Attorneys at Cooley, Godward, Kronish LLP act as counsel for the Official Committee of Unsecured Creditors. Forshey & Prostok LLP is the Committee's local counsel. As of May 5, 2007, the Debtors listed total assets of US$239,400,000 and total debts of US$173,400,000. BWI FORTROSS: Proofs of Claim Filing Ends Today ----------------------------------------------- BWI Fortross Harbor Fund, Ltd.'s creditors are given until Dec. 27, 2007, to prove their claims to dms Corporate 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. BWI Fortross' shareholder decided on Nov. 15, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: dms Corporate Services Ltd. Ansbacher House 20 Genesis Close, P.O. Box 1344 George Town, Grand Cayman KY1-1108 Cayman Islands Contact for inquiries: Mourant du Feu & Jeune c/o P.O. Box 1348 Grand Cayman KY1-1108, Cayman Islands Telephone: (+1) 345 949 4123 &nb