/raid1/www/Hosts/bankrupt/TCRLA_Public/080109.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, January 9, 2008, Vol. 9, Issue 6
Headlines
A R G E N T I N A
BOSTON SCIENTIFIC: Concludes Cardiac & Vascular Surgery Biz Sale
BOSTON SCIENTIFIC: Completes Sale of Stake in Auditory Business
BUNGE LTD: Unit Inks Contract w/ Verenium to Develop Edible Oils
DANA CORP: Posts US$29,000,000 Net Loss in Month Ended Nov. 30
DANA HOLDING: Moody's Assigns (P)B1 Corporate Family Rating
DIRECTV GROUP: Lehman Bros. Upgrades Firm's Shares to Overweight
SCO GROUP: Wants Until May 11 to File Chapter 11 Plan
URS CORPORATION: Washington Unit Bags US$67-Million Task Order
B E R M U D A
ASIA GAMMA: Proofs of Claim Filing Deadline Is Jan. 18
ASPEN INSURANCE: Earns US$117.2 Million in Third Quarter
MAN ETZEL: Proofs of Claim Filing Is Until Jan. 18
MAPLE ROW: Proofs of Claim Filing Ends on Jan. 11
SCOTTISH RE: Receives Non-Compliance Notice from NYSE
B R A Z I L
BANCO BRADESCO: Shareholders Okay BRL1.20-Bil. Capital Increase
BANCO NACIONAL: Okays BRL1.4-Mln Funding to Rebuild Casa do Trem
BANCO NACIONAL: To Grant at Least BRL80B Loans to Private Firms
BRASIL TELECOM: Shares Surge 5.7% Over a Likely Share Sale Talks
BRASKEM: Working with ALL in Using More Rail Lines in Transport
DELPHI CORP: Court Approves Downer & Co. as Financial Advisor
DELPHI CORP: Reaches Settlement with Ad Hoc Trade Committee
DELPHI CORP: Expands Supply Contract with VaST Systems
ENERGISA: Completes Sale of 11 Plants to Brascan Energetica
EUTELSAT COMMS: Picks EADS Astium to Launch KA-Band Satellite
IWT TESORO: BofA Balks at Exclusive Periods Extension
JAPAN AIRLINES: Final Bidding for JALCard to be Held This Week
LAZARD LTD: Appoints John Rutherford as Managing Director
PROPEX INC: S&P Lowers Corporate Credit Rating from B- to CCC
TELE NORTE: Shares Rise After Merrill Lynch Upgrade
* BRAZIL: Reports 14% Increase in Auto Production
C A Y M A N I S L A N D S
BNS INT'L: Proofs of Claim Filing Is Until Jan. 11
BRANDYWINE GLOBAL: Proofs of Claim Filing Ends on Jan. 11
CZ FLAMINGO: Proofs of Claim Filing Deadline Is Jan. 11
DCM EUROPEAN: Final Shareholders Meeting Is on Jan. 11
DCM MASTER: Holding Final Shareholders Meeting on Jan. 11
EASTERN COGEN: Will Hold Final Shareholders Meeting on Jan. 11
FZC CORP: Sets Final Shareholders Meeting for Jan. 11
HARBOURVIEW CLO: Proofs of Claim Filing Ends on Jan. 11
IIU CONVERTIBLE: Proofs of Claim Filing Deadline Is Jan. 11
KEEL OFFSHORE: Will Hold Final Shareholders Meeting on Jan. 11
LIFE FUNDING: Proofs of Claim Filing Deadline Is Jan. 11
LIFE FUNDING: Will Hold Final Shareholders Meeting on Jan. 11
MERCARI INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 11
NATURE'S CHI: Liquidator Filing for Dissolution by Jan. 11
NET INTEGRATED: Liquidator Filing for Dissolution by Jan. 11
OCEAN HOLIDAYS: Sets Final Shareholders Meeting for Jan. 11
POSEIDON INVESTMENTS: Final Shareholders Meeting Is on Jan. 11
PROSPECT FUNDING: To Hold Final Shareholders Meeting on Jan. 11
PROSPECT PROPERTY: Sets Final Shareholders Meeting for Jan. 11
REACH EQUITY: Holding Final Shareholders Meeting on Jan. 11
SEACAT LIMITED: Sets Final Shareholders Meeting for Jan. 11
SZ94B LIMITED: Proofs of Claim Filing Deadline Is Jan. 11
VENO FUNDING: Will Hold Final Shareholders Meeting on Jan. 11
WHITED CONSTRUCTION: Mr. Lowe Filing for Dissolution by Jan. 11
C H I L E
EASTMAN KODAK: Signs Tech License Pacts with Matsushita Electric
ELECTRONIC DATA: Bags US$209.9-Mil. Contract from Indiana State
NOVA CHEMICALS: Names Chris Pappas as President & COO
C O L O M B I A
BRIGHTPOINT INC: To Market Garmin Mobile Phone Products in US
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Gets Offers for Determining Plant's Value
E C U A D O R
PETROECUADOR: New Head Discloses Corruption in the Company
PETROECUADOR: Petroleos de Venezuela To Study Joint Venture
G U A T E M A L A
ALCATEL-LUCENT: Remi Thomas Joins as VP of Investor Relations
H O N D U R A S
* HONDURAS: World Bank Deciding on US$30-Mln Restructuring Loan
J A M A I C A
AIR JAMAICA: Two Unions Hold Protest Against Airline
M E X I C O
BOWNE & CO: Earns US$804,000 in Quarter Ended Sept. 30
DOMINO'S PIZZA: Welcomes Ken Rollin as EVP & New General Counsel
FREESCALE SEMI: Will Develop Power Management Chip for Intel
GSI GROUP: Taps Philippe Brak as Laser Biz's VP & Gen. Manager
KANSAS CITY: Picks Leonard Wagner as Associate General Counsel
KRISPY KREME: James Morgan Replaces D. Brewster as President
P E R U
PETROBRAS ENERGIA: Sells 40% Stake in Petroquimica Cuyo
P U E R T O R I C O
AVNET INC: Selects Four New Corporate Vice Presidents
GLOBAL HOMES: Can Now Solicit Votes on Second Amended Plan
MUSICLAND HOLDING: Posts US$30,000 Net Loss in October 2007
MUSICLAND HOLDING: Posts US$296,000 Net Loss in November 2007
MUSICLAND HOLDING: Court Moves Show Cause Hearing to Jan. 24
UNIVISION COMM: Brings In Peter Lazarus as Network Sales VP
T R I N I D A D & T O B A G O
MIRANT CORP: Court Enters Final Decree Closing 21 Chap. 11 Cases
V E N E Z U E L A
CHRYSLER LLC: Worldwide Sales Down by Less Than 1% in 2007
PETROLEOS DE VENEZUELA: Mulls Joint Venture with Petroecuador
* VENEZUELA: Rafael Ramirez Sees OPEC Output Rise Unnecessary
* VENEZUELA: Eyes Best Oil Prices This Year
* VENEZUELA: Rafael Ramirez Remains as Oil Minister
- - - - -
=================
A R G E N T I N A
=================
BOSTON SCIENTIFIC: Concludes Cardiac & Vascular Surgery Biz Sale
----------------------------------------------------------------
Boston Scientific Corporation has completed the sale of its
Cardiac Surgery and Vascular Surgery businesses to the Getinge
Group of Sweden for US$750 million in cash. The sale follows
the definitive agreement announced on Nov. 5, 2007.
The company expects to record after-tax charges of approximately
US$240 million in connection with the transaction. These
charges will be recorded during the fourth quarter of 2007 and
the first quarter of 2008.
"We have now sold three of our five previously identified non-
strategic businesses, and we expect to close on the remaining
two -- Fluid Management and Venous Access -- this quarter," said
Boston Scientific President and Chief Executive Officer, Jim
Tobin. "These divestitures -- along with our ongoing efforts to
reduce expenses and simplify our operating model -- should help
us achieve our overall goals of restoring profitable growth,
increasing shareholder value and strengthening Boston Scientific
for the future."
About Boston Scientific
Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties. The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 24, 2007, Standard & Poor's Ratings Services affirmed its
ratings on Boston Scientific Corp., including the 'BB+'
corporate credit rating, and removed them from CreditWatch,
where they were placed with negative implications Aug. 3, 2007.
S&P said the rating outlook is negative.
BOSTON SCIENTIFIC: Completes Sale of Stake in Auditory Business
---------------------------------------------------------------
Boston Scientific Corporation has completed the sale of the
controlling interests in its auditory business and drug pump
development program to former principals and shareholders of
Advanced Bionics.
As part of a new schedule of consolidated, fixed earnout
payments, Boston Scientific has paid former Advanced Bionics
shareholders US$650 million. A final payment of US$500 million
will be paid in March 2009.
The former Advanced Bionics principals and shareholders have
paid Boston Scientific US$150 million for the controlling
interests in the auditory business and drug pump development
program.
Under the amended merger agreement, Boston Scientific obtains
sole management control of the Pain Management business,
including the emerging indications program. The Pain Management
business includes spinal cord stimulation technologies, as well
as emerging technologies such as a variety of applications of
the bion(R) microstimulator.
The Pain Management business and emerging indications program
will operate as Boston Scientific Neuromodulation under the
leadership of Michael Onuscheck, currently head of the Pain
Management business. The business will continue to be
headquartered in Valencia, California.
As part of the transactions, the parties have agreed to dismiss
pending litigation between Boston Scientific and former Advanced
Bionics shareholders.
Boston Scientific acquired Advanced Bionics in 2004. The sale
coincides with the closing of the amended merger agreement with
Advanced Bionics disclosed on Aug. 9, 2007.
About Advanced Bionics
Headquartered in Sylmar, California, Advanced Bionics --
http://www.advancedbionics.com/-- makes the HiResolution Bionic
Ear System, which includes a cochlear implant, sound processor,
and other equipment that together can restore hearing to the
deaf. The company also makes the Precision spinal cord
stimulator, which can block pain signals.
About Boston Scientific
Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties. The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 24, 2007, Standard & Poor's Ratings Services affirmed its
ratings on Boston Scientific Corp., including the 'BB+'
corporate credit rating, and removed them from CreditWatch,
where they were placed with negative implications Aug. 3, 2007.
S&P said the rating outlook is negative.
BUNGE LTD: Unit Inks Contract w/ Verenium to Develop Edible Oils
----------------------------------------------------------------
Verenium Corp. and Bunge Oils, Inc., a part of Bunge North
America, the North American operating arm of Bunge Ltd., have
signed a new agreement to develop enzyme processes for the
enhanced production of edible oils. The agreement represents
Bunge's continued endorsement of the development and
implementation of yield-enhancing enzymatic processes for the
refinement of seed oils. Bunge Oils has also agreed to become
Verenium's process implementation partner for Verenium's first
commercial product for seed oil refining, Purifine(TM), a
phospholipase C (PLC) enzyme.
Incorporation of Verenium's innovative PLC enzyme into the
vegetable oil production process significantly improves oil
yield and reduces the need for chemicals. The Purifine process
provides a novel method for removing oil phospholipids during
the oilseed degumming process. Oilseed processors using Purifine
enzyme are expected to achieve a yield increase of between 1-2%,
depending on the phospholipid content of the crude vegetable
oil.
"Purifine represents an important new commercial opportunity for
our Specialty Enzymes business," said Verenium President and
Chief Executive Officer, Carlos A. Riva. "We are pleased to
again be partnering with Bunge, a proven leader in the oilseed
processing industry and are confident that this new
collaboration will greatly benefit both of our businesses."
Under the terms of the agreement, the two companies will also
collaborate to develop and commercialize next-generation custom
enzymes designed to further improve the economics of vegetable
oil processing. Verenium Corp. will receive research funding
from Bunge Oils to develop the enzymes.
As Verenium's process implementation partner for Purifine, Bunge
Oils will supply process expertise to Verenium to assist with
the commercial scale-up of the Purifine process, with the goal
of producing a validated turnkey process that can be rapidly
implemented by the rest of the industry.
"Enzyme-enabled processes are beginning to play a much larger
role in vegetable oil production," said Bunge Oils Vice
President and General Manager, Rodney Perry. "By partnering
with Verenium, Bunge is ensuring that we will have access to the
most robust and customized enzymes available."
Edible oil products include bottled vegetable and cooking oils,
shortenings, margarines, and other products derived from the
processing of soybeans, corn, rapeseed and other oilseed plants.
Edible oils are also the primary feedstock for biodiesel
production. The annual global market for edible oils for 2005
was in excess of US$29 billion.
About Verenium
Verenium Corporation -- visit http://www.verenium.com-- is a
leader in the development and commercialization of cellulosic
ethanol, an environmentally friendly and renewable
transportation fuel, as well as high-performance specialty
enzymes for applications within the biofuels, industrial, and
health and nutrition markets. The company possesses integrated,
end-to-end capabilities in pre-treatment, novel enzyme
development, fermentation, engineering, and project development
and is moving rapidly to commercialize its proprietary
technology for the production of ethanol from a wide array of
feedstocks, including sugarcane bagasse, dedicated energy crops,
agricultural waste, and wood products. In addition to the vast
potential for biofuels, a multitude of large-scale industrial
opportunities exist for the company for products derived from
the production of low-cost, biomass-derived sugars.
About Bunge North America
Bunge North America (http://www.bungenorthamerica.com),the
North American operating arm of Bunge Limited, is a vertically
integrated food and feed ingredient company, supplying raw and
processed agricultural commodities and specialized food
ingredients to a wide range of customers in the livestock,
poultry, food processor, foodservice and bakery industries.
With headquarters in St. Louis, Missouri, Bunge North America
and its subsidiaries operate grain elevators, oilseed processing
plants, edible oil refineries and packaging facilities, and corn
dry mills in the U.S., Canada and Mexico.
About Bunge Limited
Headquartered in White Plains, New York, Bunge Ltd. (NYSE: BG)
is a global agribusiness company with operations primarily in
commodity grain processing and fertilizer production. It has
operations in Argentina.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Standard & Poor's Ratings Services has assigned
its 'BB' rating to Bunge Ltd.'s US$750 million of 5.125%
cumulative mandatory convertible preference shares. At the same
time, S&P affirmed its 'BBB-' long-term corporate credit and
other ratings on Bunge. The outlook is stable. Pro forma for
the new issue, about US$4.2 billion of debt and preference
shares of the company are rated. Proceeds from this issue will
be used to repay debt and for general corporate purposes.
DANA CORP: Posts US$29,000,000 Net Loss in Month Ended Nov. 30
--------------------------------------------------------------
Dana Corp. and its debtor-affiliates submitted to the U.S.
Bankruptcy Court for the Southern District of New York their
monthly operating report for November 2007, disclosing:
Dana Corporation
Unaudited Condensed Balance Sheet
At November 30, 2007
ASSETS
CURRENT ASSETS
Cash and cash equivalent assets US$1,174,000,000
Accounts receivable
Trade 1,407,000,000
Other 293,000,000
Inventories 832,000,000
Assets of discontinued operations 41,000,000
Other current assets 154,000,000
--------------
Total current assets 3,901,000,000
Investments and other assets 0
Investments in equity affiliates 430,000,000
Net property, plant and equipment 1,752,000,000
Other noncurrent assets 1,048,000,000
--------------
TOTAL ASSETS US$7,131,000,000
LIABILITY AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
DIP Financing US$900,000,000
Notes payable, including current portion
of long-term debt 177,000,000
Accounts payable 1,115,000,000
Liabilities of discontinued operations 18,000,000
Other accrued liabilities 847,000,000
--------------
Total current liabilities 3,057,000,000
Liabilities subject to compromise 4,009,000,000
Deferred employee benefits and other
non-current liabilities 487,000,000
Long-term debt 13,000,000
Minority interest in consolidated subsidiaries 99,000,000
Total liabilities 7,665,000,000
Shareholders' equity (534,000,000)
--------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY US$7,131,000,000
Dana Corporation
Unaudited Condensed Statement of Operations
For the Month Ended November 30, 2007
Net Sales US$778,000,000
Costs and expenses
Costs of sales 745,000,000
Selling, general and administrative expenses 22,000,000
Realignment charges 5,000,000
Other income, net 6,000,000
--------------
Income from operations 12,000,000
Interest expense 10,000,000
Reorganization charges 8,000,000
--------------
Loss before income taxes (6,000,000)
Income tax (expense) benefit 9,000,000
Minority interest 2,000,000
Equity in earnings of affiliates 0
--------------
Loss before continuing operations (17,000,000)
Loss from discontinued operations (12,000,000)
--------------
Net loss (US$29,000,000)
Dana Corporation
Unaudited Condensed Statement of Cash Flow
For the Month Ended November 30, 2007
OPERATING ACTIVITIES
Net loss (US$29,000,000)
Depreciation and amortization 24,000,000
Loss on sale of business 0
Non-cash portion of U.K. pension charge 0
Increase in working capital (19,000,000)
Unremitted equity earnings in affiliates 3,000,000
Other 26,000,000
--------------
Net cash flow provided by
(used for) operating activities 5,000,000
--------------
INVESTING ACTIVITIES
Purchases of property, plant and equipment (24,000,000)
Proceeds from sale of assets 0
Other 0
Net cash flow provided by
(used for) operating activities (24,000,000)
--------------
FINANCING ACTIVITIES
Net change in short-term debt 11,000,000
Proceeds from DIP facility 0
--------------
Net cash flow provided by
(used for) financing activities 11,000,000
Net increase (decrease) in cash equivalents (8,000,000)
Cash and cash equivalents, beginning of period 1,182,000,000
--------------
Cash and cash equivalents, end of period US$1,174,000,000
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin American region and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Aug. 31, 2007, the Debtors listed $6,878,000,000 in total assets
and US$7,551,000,000 in total debts resulting in a total
shareholders' deficit of US$673,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan. The
Court confirmed the Debtor's Plan on Dec. 26, 2007. (Dana
Corporation Bankruptcy News, Issue No. 67; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DANA HOLDING: Moody's Assigns (P)B1 Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has assigned prospective ratings to
the reorganized Dana Holding Corporation -- Corporate Family,
(P)B1; Probability of Default rating, (P)B1; senior secured
credit facilities, (P)Ba3, and Speculative Grade Liquidity
Rating, SGL-2. The outlook is stable. In assigning prospective
ratings, Moody's notes that Dana continues to pursue a planned
emergence from Chapter 11 protection during January 2008, but
that the effectiveness of the new debt facilities remains
subject to final court approval. Absent any significant changes
in the company's reorganization plan or capital structure,
Moody's will confirm the ratings and remove the prospective
designation upon completion of the emergence from bankruptcy.
The (P)B1 Corporate Family rating reflects expectations that
Dana Corp. will emerge from bankruptcy protection with a
moderately leveraged capital structure that will be more readily
serviced with the earnings and cash flows generated by its
restructured operations. During the reorganization process the
company negotiated long-term customer pricing increases that
will eliminate significant losses that the company had been
incurring on portions of its business. At the same time, the
company was able to achieve important labor and wage savings,
including the elimination of post retirement benefits, the
freezing of pensions, and other labor contract savings that will
make the company more cost competitive going forward. The
company has also begun to implement manufacturing footprint
improvements utilizing lower cost production facilities; and
other SG&A cost reductions that should enhance overall margins
beginning in 2008. However, the full effect of some of these
initiatives will only be achieved with the passage of time.
Given the weakening economic outlook, Moody's believes that the
company's automotive and heavy duty truck end markets will
remain under significant pressure during 2008, which could
constrain the company's ability to fully achieve anticipated
operating improvements. Nevertheless, Moody's believes that the
company should sustain strong single digit EBITDAR margins and
debt service metrics that are consistent with the B1 rating.
Dana Holding has entered into an agreement with Centerbridge
Partners, L.P. and certain of Dana Corp.'s existing bondholders,
the Preferred Equity Investors, whereby the Preferred Equity
Investors would provide an investment of US$790 million of
preferred equity to the reorganized Dana. The Exit Facilities
combined with the preferred equity investment and certain cash
on hand will be used to repay the company's existing debtor-in-
possession facilities, make one-time contributions to union and
non-union "voluntary employee benefit associations", retire
remaining Dana Credit Corporation liabilities, and pay
transaction related fees, expenses, settlements and convenience
class claims. The company expects to emerge from Chapter 11 on
or about Jan. 31, 2008.
The stable outlook reflects the adequacy of Dana's credit
metrics within the assigned ratings combined with the expected
good level of liquidity over the near term. The company's
diverse platform mix and broad geographic revenue base should
help to mitigate production pressures in North America.
EBIT/interest coverage is expected to approximate 2.2 and
debt/EBITDA would approximate 3.2 at year-end 2008. In
addition, the company is expected to be free cash flow positive
in 2008 after restructuring expenses and dividends.
Dana is expected to have good liquidity upon emergence with
satisfactory borrowing base availability under its new US$650
million asset based revolving credit facility, after about
US$200 million of letters of credit. Cash balances of
approximately US$900 million -- US$1 billion should be more than
sufficient to absorb negative quarterly cash flow swings. Dana
is expected to be free cash flow positive for 2008. Covenants
under the term loan are expected to be set with sufficient
cushions over the near-term. Alternative liquidity is limited
as all of the company's domestic assets and 66% of the non-
domestic subsidiaries secure the revolving credit and term-loan.
Assigned Ratings:
-- (P)B1, Corporate Family Rating;
-- (P)B1, Probability of Default Rating;
-- (P)Ba3 (LGD3, 35%) rating for the US$650 million senior
secured asset based revolving credit facility;
-- (P)Ba3 (LGD3, 35%) rating for the US$1.350 billion senior
secured term loan;
-- Speculative Grade Liquidity Rating, SGL-2
Future events that have potential to drive the company's outlook
or ratings higher include operating performance improvements
that result in EBIT/Interest coverage sustained at 2.2, or in
leverage being reduced to 3.0.
Future events that have potential to drive Dana outlook or
ratings lower include production volume declines at the
company's OEM customers, material increases in raw materials
costs that cannot be passed on to customers or mitigated by
restructuring efforts, or deteriorating liquidity. Consideration
for a lower outlook or rating could arise if any combination of
these factors were to increase leverage over 5.0, or result in
EBIT/Interest coverage below 1.8 times.
About Dana
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total
assets and US$7,551,000,000 in total debts resulting in a total
shareholders' deficit of US$673,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan. The
Court confirmed the Debtors' Chapter 11 Plan on Dec. 26, 2007.
(Dana Corporation Bankruptcy News, Issue No. 67; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
DIRECTV GROUP: Lehman Bros. Upgrades Firm's Shares to Overweight
----------------------------------------------------------------
Lehman Brothers has upgraded its rating on The DirecTV Group's
shares to "overweight" from "equal weight," Newratings.com
reports.
Newratings.com relates that the target price for DirecTV Group's
shares was increased to US$32 from US$30.
Lehman Brothers said in a research note that DirecTV Group's
high-quality subs protect it against weakening economic trends
and intensifying competition.
According to Newratings.com, Lehman Brothers said DirecTV
Group's stock would outperform that of its rivals in the
cable/DBS sector.
DirecTV Group "may achieve a decline in churn this year, which,
along with decelerating programming cost growth, would boost
operating leverage," Lehman Brothers told Newratings.com.
Earnings per share estimate for DirecTV Group this year was
increased to US$1.21 from US$1.10, Newratings.com states.
Headquartered in El Segundo, California, The DIRECTV Group
(NYSE:DTV) -- http://www.directv.com/--, Inc. provides digital
television entertainment in the United States and Latin America.
It has two segments, DIRECTV U.S. and DIRECTV Latin America.
The DIRECTV U.S. segment provides direct-to-home digital
television services in the multichannel video programming
distribution industry in the United States. The DIRECTV Latin
America segment provides digital direct-to-home digital
television services to approximately 1.6 million subscribers in
27 countries, including Brazil, Argentina, Venezuela, and Puerto
Rico.
* * *
In April 2007, Standard & Poor's Ratings Services affirmed the
'BB' corporate credit and 'BB-' senior unsecured debt rating on
The DIRECTV Group Inc. S&P said the outlook is stable.
In addition, Standard & Poor's raised the bank loan rating on
US$2 billion of credit facilities at DIRECTV Holdings LLC, a
wholly owned subsidiary of The DIRECTV Group Inc, to 'BB+' from
'BB' and revised the recovery rating to '1' from '3'.
SCO GROUP: Wants Until May 11 to File Chapter 11 Plan
-----------------------------------------------------
The SCO Group Inc. and its debtor-affiliates ask the United
States Bankruptcy Court for the District of Delaware to futher
extend their exclusive periods to:
a) file a Chapter 11 plan until May 11, 2008; and
b) solicit acceptances of that plan until July 11, 2008.
The Debtors' exclusive period to file a plan expires on
Jan. 12, 2008.
The Debtors tell the Court that they need more time to resolve
an issue regarding Novell Inc.'s rights in connection with the
sale of the Unix business. The Debtor said that Novell objected
to the sale of that business and that the asset was a threshold
issue that must be determined before any sale.
Accordingly, the Debtors say that they have decided to allow the
dispute to narrow before they file a Chapter 11 plan.
The Debtors remind the Court that Novell obtained permission to
prosecute its counterclaim against the Debtor in the United
States Bankruptcy Court for the District of Utah.
A hearing on Feb. 5, 2008, at 10:00 a.m., has been set to
consider approval on the Debtors' request. Objections to the
approval are due Jan. 29, 2008.
Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
fka Caldera International Inc. -- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.
The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, the United
Kingdom, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
URS CORPORATION: Washington Unit Bags US$67-Million Task Order
--------------------------------------------------------------
URS Corporation's Washington Division has been awarded a US$67
million task order by the U.S. Department of Energy to
deactivate and demolish the Separations Process Research Unit, a
former nuclear research facility in Niskayuna, New York. SPRU,
which is located at the Knolls Atomic Power Laboratory, was
operated from 1950 to 1953 as a pilot plant to research
chemical processes to extract uranium and plutonium from
irradiated uranium.
URS was selected for the four-year task order from a pool of
pre-qualified contractors under an existing indefinite
delivery/indefinite quantity contract for a wide range of
environmental tasks for the DOE. Under the terms of the task
order, URS will deactivate, demolish and remove process
facilities and nearby contaminated soil associated with the SPRU
operations.
"This award underscores the Washington Division's leadership
position in safely managing complex, high-hazard projects and
operations," said Stephen G. Hanks, President of URS' Washington
Division. "For more than a half century, the Washington
Division has successfully performed similar work for the DOE,
its predecessor agencies and commercial nuclear companies."
Headquartered in San Francisco, California, URS Corporation
(NYSE:URS) -- http://www.urscorp.com/-- offers a comprehensive
range of professional planning and design, systems engineering
and technical assistance, program and construction management,
and operations and maintenance services for transportation,
facilities, environmental, water/wastewater, industrial
infrastructure and process, homeland security, installations and
logistics, and defense systems. The company operates in more
than 20 countries with approximately 29,500 employees providing
engineering and technical services to federal, state and local
governmental agencies as well as private clients in the
chemical, pharmaceutical, oil and gas, power, manufacturing,
mining and forest products industries. The company also has
offices in Argentina, Australia, Belgium, China, France,
Germany, and Mexico, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 7, 2007, Moody's Investors Service has downgraded the
Corporate Family Rating of URS Corporation to Ba2 from Ba1
following the company's acquisition of Washington Group
International, Inc. Moody's said the ratings outlook is stable.
=============
B E R M U D A
=============
ASIA GAMMA: Proofs of Claim Filing Deadline Is Jan. 18
------------------------------------------------------
Asia Gamma Fund Ltd.'s creditors are given until Jan. 18, 2008,
to prove their claims to Beverly Mathias, 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.
Asia Gamma's shareholders agreed Dec. 27, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
ASPEN INSURANCE: Earns US$117.2 Million in Third Quarter
--------------------------------------------------------
Aspen Insurance Holdings Limited reported net income of
US$117.2 million on total revenues of US$487.5 million for the
third quarter ended Sept. 30, 2007, compared with net income of
US$95.0 million on total revenues of US$468.6 million in the
same quarter last year.
In the third quarter of 2007, the company generated net
investment income of US$72.4 million, compared with US$47.3
million in 2006. The US$25.1 million increase in investment
income was due to gains from the company's investment in funds
of hedge funds of US$7.9 million, higher book yields on the
company's fixed income portfolio and a US$956.0 million increase
in cash and invested assets between Sept. 30, 2006, and
Sept. 30, 2007, as a result of positive operating cash flow.
In the third quarter of 2007, income before tax was US$137.9
million and is comprised of US$65.1 million of underwriting
profit, US$72.4 million in net investment income, US$7.3 million
of net exchange and investment gains, US$4.2 million of interest
payable and US$2.7 million of other expenses.
In the third quarter of 2006, income before tax was US$118.7
million and comprised US$81.6 million of underwriting profit,
US$47.3 million in net investment income, US$1.5 million of net
exchange and investment gains, US$4.6 million of interest
payable and US$7.1 million of other expenses. The company's
lower underwriting profit in the quarter compared to the prior
period was mainly due to lower gross written premium in the
quarter partially offset by lower losses.
Chris O'Kane, chief executive officer, commented, "These strong
results reflect our ongoing focus on managing, diversifying and
leveraging our underwriting platforms and the excellent
performance of the investment portfolio. We will continue to
manage the business to ensure that we remain appropriately
positioned for long term profitability and disciplined growth."
For the first nine months ended Sept. 30, 2007, total revenues
increased to US$1.51 billion, versus total revenues of US$1.39
billion in the same period last year. Net income was US$353.8
million compared to net income of US$258.6 million in the
corresponding nine months of 2006.
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$7.32 billion in total assets, US$4.59 billion in total
liabilities, and US$2.73 in total shareholders' equity.
Full-text copies of the company's consolidated financial
statements for the quarter ended Sept. 30, 2007, are available
for free at http://researcharchives.com/t/s?26d4
About Aspen Insurance
Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings
Limited (NYSE: AHL) -- http://www.aspen.bm/-- provides
reinsurance and insurance coverage to clients in various
domestic and global markets through wholly owned subsidiaries
and offices in Bermuda, France, the United States, the United
Kingdom, and Switzerland.
* * *
Aspen Insurance Holdings Limited still carries Moody's Investors
Services 'Ba1' Preferred Stock rating which was placed on
Dec. 21, 2005. Moody's said the outlook is stable.
MAN ETZEL: Proofs of Claim Filing Is Until Jan. 18
--------------------------------------------------
Man Etzel Limited's creditors are given until Jan. 18, 2008, to
prove their claims to Beverly Mathias, 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.
Man Etzel's shareholders agreed Dec. 27, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
MAPLE ROW: Proofs of Claim Filing Ends on Jan. 11
-------------------------------------------------
Maple Row Partners (Bermuda) Ltd.'s creditors are given until
Jan. 11, 2008, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Maple Row's shareholder decided Dec. 24, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
SCOTTISH RE: Receives Non-Compliance Notice from NYSE
-----------------------------------------------------
Scottish Re Group Limited has been notified, Jan. 2, 2008, by
the NYSE Regulation, Inc. that the company had fallen below one
of the quantitative criteria of the New York Stock Exchange's
continued listing standards related to maintaining a consecutive
thirty trading-day average closing stock price of over US$1.00
per ordinary share, as required by paragraph 802.01C of the NYSE
Listed Company Manual. On Dec. 31, 2007, the company's thirty
trading-day average closing stock price was US$0.95 per ordinary
share and its absolute closing price was US$0.73 per ordinary
share.
The company has notified the NYSE that it intends to submit
plans to address the price deficiency within the required ten
business day period following the receipt of the notification.
Subject to ongoing reassessment by NYSE Regulation, the
notification has no effect on the listing of the company's
ordinary shares and 7.25% non-cumulative perpetual preferred
shares, and the ordinary and preferred shares will continue to
trade on the NYSE under the symbols "SCT" and "SCT-PB,"
respectively. Under NYSE rules, at the end of the six month
period following receipt of the original notification, the
company must have brought its ordinary shares price and average
share price for a consecutive thirty trading-day period back
above US$1.00, or be subject to suspension and delisting
procedures. In the interim, the NYSE will add the indicator
".BC" to the ticker symbol for the company's ordinary and
perpetual preferred shares to signify that the company remains
"below criteria" required by the NYSE for continued listings.
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Moody's Investors Service has affirmed the
ratings of Scottish Re Group Limited's senior unsecured shelf of
(P)Ba3 and changed the outlook to negative from stable.
===========
B R A Z I L
===========
BANCO BRADESCO: Shareholders Okay BRL1.20-Bil. Capital Increase
---------------------------------------------------------------
Banco Bradesco said in a statement that its shareholders have
agreed to a BRL1.20 billion capital raise through the issue of
27.9 million shares.
Business News Americas relates that Banco Bradesco will issue
nearly 14.0 million common shares and some 14.0 million
preferred shares at BRL43.00 each. The reserve period starts on
Jan. 22 and will end on Feb. 22.
BNamericas notes that shareholders also authorized the
cancellation of 2.25 million shares -- 828,700 common shares and
1.42 million preferred shares -- Banco Bradesco holds.
According to BNamericas, Banco Bradesco disclosed last month
that it wanted to increase share capital by BRL4.00 billion to
BRL23.0 billion to pay for lending growth and information
technology investments.
Banco Bradesco wants to boost lending up to 25% this year. It
has budgeted some BRL1.30 billion for its information technology
modernization program, BNamericas states.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE:
BBD) -- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management. Bradesco has branches throughout Brazil as
well as one in New York, and Japan. Bradesco offers Internet
banking, insurance, pension plans, annuities, credit card
services (including football-club affinity cards for the soccer-
mad population), and Internet access for customers. The bank
also provides personal and commercial loans, along with leasing
services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2006, Standard & Poor's Ratings Services maintained the
'BB+' ratings on both of Banco Bradesco SA's foreign and local
currency counterparty credit rating, however it changed the
ratings outlook to positive from stable on both ratings:
-- Foreign currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Local currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Brazil national scale rating
* to brAA+/Positive/brA-1 from brAA+/Stable/brA-
BANCO NACIONAL: Okays BRL1.4-Mln Funding to Rebuild Casa do Trem
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's directors
have approved, within the scope of Programa Nacional de Apoio a
Cultura [National Program for Support to Culture] - Pronac, a
BRL1.4 million financial support, not reimbursable, under the
form of sponsorship, to Organizacao de Desenvolvimento Cultural
e Preservacao Ambiental [Organization of Cultural Development
and Environmental Preservation]-AMA - Brazil.
The funds are to be used for the restoration of Casa do Trem
Belico, owned by IPHAN [Institute for National Artistic and
Historical Heritage], built in the 18th Century. The objective
is to transform it into a museum, also recuperating all the
surrounding area, close to the Port of Santos. Casa do Trem
B‚lico is located at the historical center, near the port, at
Rua Tiro Onze. Considered as the oldest public building in
Santos, Casa do Trem Belico still gives rise to doubts as to the
year when it was built. Its construction possibly occurred
between 1640 and 1656, by the time of the restoration of
Portuguese independence. At the main entrance to the property
it is mentioned the year 1734, which can either refer to an
important reform, or to an extension of the original building.
The purpose of the property was to shelter the so-called "war-
train", or the set of armaments, ammunitions and gunpowder,
destined to the fortifications that protected the Port of
Santos. Whence the names that were used throughout the times:
Armazem de Artigos Belicos [War Gadgets Warehouse], Casa do Trem
Real [House of the Royal Train], Deposito de Trem-de-Guerra [War
Train Depot], edificio do Trem [Train Building] or, simply, Casa
do Trem [House of the Train].
One of the first realties in the State of Sao Paulo to be
granted the title of national historic heritage, in 1940, the
property was transferred, in 1965, to the then Department for
National Artistic and Historical Heritage -- DPHAN - and is
currently linked to the Secretariat of Culture, being officially
under the administration of the municipality of Santos.
The property is currently abandoned, sheltering beggars and in
conditions which are not adequate to be used for cultural and
tourist purposes. Rua Tiro Onze, small and narrow, is just
about an alleyway. Therefore the need to integrate the property
restoration process into a general urbanistic context, including
the demolition of the walls which separate it from the
neighboring street land and the remodeling of this land into a
stretch of grass connected to the public space, opening the site
to walkers.
At the back of the property, by the wall, a steel structure
casing ramp will be constructed, for access to the second floor,
with adequate inclination for use by disabled people. At the
side of the land, facing Rua Visconde do Rio Branco (opposite to
the port), will be the restored building supporting facilities,
as the administration and cafeteria.
Its late-mannerism style in stone and lime, concise and
conservative, is typical of the Portuguese military
architecture, in contraposition to the baroque facades, which
were predominant in the religious constructions (mainly
churches and monasteries) of the same time. Stone floors,
pavings, doors, windows, ceiling and painting shall be restored,
respecting the original color tones. Under the roof, a rubber
layer will be installed for better protection of the building.
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: To Grant at Least BRL80B Loans to Private Firms
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's head
Luciano Coutinho told Brazilian financial news daily Valor
Economico that the bank will grant at least BRL80 billion in
loans to private companies in 2008.
Banco Nacional received requests for over BRL90 billion in
funding for this year, Business News Americas relates, citing
Mr. Coutinho.
BNamericas notes that Banco Nacional reduced a projected BRL30-
billion deficit for project funding in half.
Banco Nacional would get another BRL15 billion from the
Brazilian government in the first two months of this year,
Mr. Coutinho told BNamericas.
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.
BRASIL TELECOM: Shares Surge 5.7% Over a Likely Share Sale Talks
----------------------------------------------------------------
Brasil Telecom SA's shares rose 5.7% to BRL28.35 as the market
speculates a possible sale of shares by controlling groups
Citigroup Inc. and some pension funds, Alexander Ragir and
Romina Nicaretta at Bloomberg News reports.
Meanwhile, IstoE magazine reported online that Tele Norte's
holding company, Telemar Participacoes SA, has made an offer to
purchase 35% of Brasil Telecom stake, Bloomberg relates.
Telemar common shares rose to BRL5.226, or 9 percent, BRL63.75.
Brasil Telecom common shares gained 6.8 percent to BRL53.10.
Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA. The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional long-
distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.
* * *
To date, Brasil Telecom carries Moody's Investors Service's Ba1
senior unsecured and credit default swap ratings.
BRASKEM: Working with ALL in Using More Rail Lines in Transport
---------------------------------------------------------------
A Braskem official told Business News Americas that the firm
will collaborate with logistics company ALL to use more rail
lines in transporting products between plants in Triunfo, Rio
Grande do Sul state, and Paulinia, Sao Paulo.
BNamericas relates that Braskem wants to transport up to 10,000
tons per month of thermoplastic resins compared to 7,500 tons
per month moved by rail in 2007.
Braskem's supplies and logistics director Isabel Figueiredo told
Gazeta Mercantil that the firm will need special cars to
transport the thermoplastic resins. However, Braskem wants to
rent the specialized rolling stock instead of buying it.
Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins producer
in Latin American, and is among the three largest Brazilian-
owned private industrial companies. The company operates 13
manufacturing plants located throughout Brazil, and has an
annual production capacity of 5.8 million tons of resins and
other petrochemical products. The company reported consolidated
net revenues of about US$9 billion in the trailing twelve months
through Sept. 30, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services has raised its
long-term corporate credit rating on Brazilian petrochemical
company, Braskem S.A. to 'BB+' from 'BB'. At the same time, the
rating was removed from CreditWatch, where it was placed with
positive implications on Nov. 26, 2007.
The Brazil National Scale credit rating on the company was also
raised to 'brAA+' from 'brAA'. S&P's outlook is stable.
DELPHI CORP: Court Approves Downer & Co. as Financial Advisor
-------------------------------------------------------------
Delphi Corp. and its debtor-affiliates obtained permission from
the U.S. Bankruptcy Court for the Southern District of New York
to employ independent middle market advisory firm Downer &
Company LLC as their financial advisor and investment banker
with regard to the divestiture or other strategic alternatives
relating to their power products business. The Debtors propose
to hire Downer & Company nunc pro tunc to Aug. 27, 2007.
The Debtors' Power Products Business involve the engineering,
manufacturing, or selling of power sliding door systems, power
liftgate systems, power deck lid systems, internal cinching
latches, advanced development power cinching latches, and
advanced development power cinching strikers.
Pursuant to the parties' Oct. 26, 2007 letter agreement, Downer
& Company is expected to:
-- assist in the review and analysis of the assets and the
operating and financial strategies of the Power Products
Business;
-- assist in the definition of objectives related to the
value and terms of divestiture;
-- assist in the market examination for potential purchasers
and identification of a universe of parties who should be
contacted in relation to the proposed transaction;
-- at the Debtors' direction, contact a priority list of
parties agreed in common with the Debtors as part of a
pre-marketing strategy;
-- assist in the collection and analysis of information
relevant to the market and the proposed transaction;
-- prepare and review with the Debtors the valuation of the
Power Products Business;
-- define procedures concerning the divestiture process at
its different stages, and implementing them with the
potential purchasers at the Debtors' direction and on its
behalf;
-- assist in the organization and coordination of datarooms,
management presentations, and due diligence sessions;
-- review, analyze, and advise on the value and terms of the
offers received and on appropriate negotiating strategies
in relation to the various potential purchasers in
connection with the proposed transaction or other
transactions;
-- assist in the negotiation of binding contractual
documentation in conjunction with the Debtors' legal
advisors; and
-- render other financial advisory and investment banking
services as may be reasonably requested by the Debtors in
connection with the disposition of the Power Products
Business.
The services to be provided by Downer & Company will not
duplicate the services of the Debtors' other professionals,
Delphi Corp. vice president and chief restructuring officer John
D. Sheehan assured the Court.
In exchange for Downer & Company's services, the Debtors will
pay the firm non-refundable work fees totaling US$100,000:
* US$25,000 upon approval of the Employment Application;
* US$25,000 upon completion and delivery of a pre-marketing
report;
* US$25,000 upon receipt of the first round offers; and
* US$25,000 upon receipt of the final offers in the form of a
marked-up term sheet.
The Debtors will also pay Downer & Company a Transaction Fee
equal to US$600,000 plus:
* 2.5% of the Transaction Value, as defined in the Engagement
Letter, between US$35,000,000 and US$45,000,000; and
* 3.25% of the Transaction Value in excess of US$45,000,000.
The Transaction Fee may be reduced by the total amount of work
fees paid if certain conditions are met as defined in the
Engagement Letter, Mr. Sheehan related.
Further more, the Debtors will reimburse Downer & Company for
all reasonable out-of-pocket expenses incurred in connection
with the performance of its duties under the Engagement Letter,
including transportation, telephone, lodging, meals, research,
postage, courier services, and interest fees.
Downer & Company's services are necessary to enable the Debtors
to maximize the value of their estates, Mr. Sheehan told the
Court. The Debtors aver that Downer is well-qualified and able
to represent them in a cost-effective, efficient, and timely
manner.
Arthur G. Gottlieb, a managing director at Downer & Company,
LLC, assured the Honorable Robert Drain that Downer & Company
has no connection with, and holds no interests adverse to, the
Debtors, their creditors, or any other party-in-interest in the
matters for which it is proposed to be retained. Downer &
Company, Mr. Gottlieb adds, is a "disinterested person," as that
term is defined in Section 101(14) of the Bankruptcy Code.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period expires on Dec. 31,
2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan
of Reorganization and a Disclosure Statement explaining that
Plan. (Delphi Bankruptcy News, Issue No. 103; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
DELPHI CORP: Reaches Settlement with Ad Hoc Trade Committee
-----------------------------------------------------------
The Ad Hoc Trade Committee's withdrawal of its objection to the
Dec. 3, 2007 Amendment to the New Equity and Purchase Agreement
between Delphi Corp., its debtor-affiliates and the Plan
Investors, led by Appaloosa Management L.P., is part of a
settlement reached between the Debtors and the Trade Committee.
In addition to the EPCA, the parties agreed to resolve their
disputes with respect to the Debtors' Joint Plan of
Reorganization.
"This is in full settlement of any and all objections of the ad
hoc trade committee to the disclosure and plan confirmation
process, including without limitation, the disclosure statement,
the proposed investment agreement amendment and the plan of
reorganization, including plan confirmation matters," John
Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in Chicago, Illinois, said at the Dec. 6, 2007 hearing.
The parties also agreed that:
-- they will use commercially reasonable efforts to
reconcile, if agreed, allow on or before the confirmation
date trade claims held by members of the Ad Hoc Trade
Committee; and
-- the Debtors will reimburse the Trade Committee up to
US$750,000 for reasonable and documented professional fees
and expenses, provided, however, the Committee will file
with the Court an application for the reimbursement.
Mr. Butler, however, said that the Trade Committee may still
object to the Plan if the Debtors propose modifications that
have a material adverse affect on the treatment of general
unsecured
creditors.
The Debtors told the Court that they resolved majority of the
objections to the Amendment to the Investment Agreement. In to
the Trade Committee, representatives of the Securities Lead
Plaintiffs, IUE-CWA, and the Official Committee of the Equity
Security Holders confirmed that their objections have been
resolved. The Equity Committee agreed to withdraw its
objections following clarification on, among other things, the
preservation of its legal, equitable, and contractual rights in
connection with the Investment Agreement.
"In light of the consideration that's being offered to the
Equity Committee under the Plan, we're in support of the Plan
and the third-party release therein," said Debra Torres, Esq. at
Fried Frank Harris Shriver & Jacobson, LLP, in New York, on
behalf of the Equity Committee.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period will expire on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan. (Delphi Bankruptcy News, Issue No. 103;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DELPHI CORP: Expands Supply Contract with VaST Systems
------------------------------------------------------
Delphi Corp. has expanded its contract with VaST Systems to
supply virtualization solutions.
Delphi Electronics & Safety Division uses VaST's solutions to
help develop electronic control unit (ECU) software. VaST helps
Delphi develop software without requiring hardware prototypes.
The use of VaST virtualization solutions can bring deeper
visibility and controllability to the software design process
helping to net higher quality products.
"Automotive electronic systems are experiencing exponential
growth in software complexity with the growing expectation of
improving product quality," said Frank Winters, Delphi
Electronics & Safety manager of design methodology. "VaST's
solutions help Delphi manage complexity."
"Delphi is a leader in automotive electronics and a key customer
in one of our most important market segments. Delphi's use of
VaST solutions is indicative of an industry trend toward
virtualized electronic system development. We are extremely
pleased to provide Delphi with solutions that help them extend
their leadership by delivering superior, differentiated
products," said Jeff Roane, vice president of marketing at VaST.
About VaST
VaST Systems drives electronics virtualization. With VaST
virtualization electronics companies develop software before
hardware, enable early software development by ecosystem
partners.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period will expire on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan. On Dec. 10, 2007, the Court entered an
order approving the Debtors' Disclosure Statement. The hearing
to consider confirmation of the Plan is set for Jan. 17, 2008.
ENERGISA: Completes Sale of 11 Plants to Brascan Energetica
-----------------------------------------------------------
Energisa said in a statement that it has concluded the sale of
11 small hydro plants to Brascan Energetica.
Business News Americas relates that Energisa sold four power
projects under development totaling 188 megawatts along with
feasibility studies.
According to BNamericas, Brascan Energetica paid some BRL301
million for Energisa's plants.
Energisa told BNamericas that the sale of the plants yields the
firm one-off revenue of BRL229 million.
Energisa SA, based in Cataguases, Minas Gerais, is a holding
company that controls five electricity distribution utilities in
four Brazilian states, serving approximately 2 million
consumers. During the nine-month period ended Sept. 30, 2007,
Energisa sold 4,956 MW, equivalent to approximately 2% of all
electricity distributed in Brazil. Energisa is listed on the
Brazilian stock market and is controlled by the Botelho family.
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, Moody's Investors Service assigned a Ba3 Global
local currency corporate family rating to Energisa S.A. In
addition, Moody's assigned an A3.br Brazil National Scale
corporate family rating to the company. The rating outlook is
stable.
EUTELSAT COMMS: Picks EADS Astium to Launch KA-Band Satellite
-------------------------------------------------------------
Eutelsat Communications has selected EADS Astrium to deliver its
first satellite operating exclusively in KA-band frequencies.
The satellite will form the cornerstone of a major new satellite
infrastructure programme that will significantly expand capacity
for consumer broadband services across Europe and the
Mediterranean Basin, while providing new opportunities for local
and regional television markets.
Currently called KA-SAT and scheduled for launch in third
quarter 2010, the satellite will be configured with over 80
spotbeams, making it the most advanced multi-spot satellite
designed in the world to date. A network of eight gateways
managed by Eutelsat, and which will provide access to KA-SAT and
deliver the full range of services to end users, will form an
integral part of the new infrastructure.
New Capacity to Join Eutelsat's
Hot Bird(TM) Satellites
Eutelsat will locate KA-SAT at 13 degrees East where it will
join three large HOT BIRD(TM) Ku-band broadcasting satellites
that form the world's leading video neighbourhood. This
collocation will enrich the range of consumer entertainment
services offered from the Group's prime neighbourhood by
enabling satellite homes to receive television in the Ku-band
and new rich media services in the Ka-band through a single
dual-frequency antenna. In advance and in preparation of
KA-SAT, Eutelsat is using Ka-band capacity on its Hot Bird(TM) 6
satellite for a new consumer broadband service, launched in
Europe at the end of 2007, and called Tooway(TM). The service
is operated by the Group's broadband subsidiary Skylogic, in
cooperation with ViaSat, a world-leader in powering
innovative satellite platforms. Tooway(TM) uses ViaSat's well
established SurfBeam(R) Docsis(R) system.
Uniting Technology Expertise
and New Collaboration with ViaSat
KA-SAT is the European equivalent to ViaSat-1, a high-capacity
Ka-band broadband satellite ordered by ViaSat to serve the North
American market and planned to launch in 2011. ViaSat and
Eutelsat are cooperating closely around ViaSat's Ka-band
SurfBeam(R) networking system and a similar wholesale business
model that works through ISPs, telecommunications companies and
pay-TV platforms to serve subscribers. This collaboration
builds on a long-standing relationship that has enabled the
development and provision of groundbreaking broadband services
for enterprise, in-flight, maritime and high-speed rail markets
across Europe, the Middle East and Africa.
KA-SAT marks a material step forward in multi-spot satellites,
which are already demonstrating their efficiency for consumer
Internet access, HDTV and local television broadcasting in hard-
to-serve areas in North America. In particular, first-
generation multi-spot satellites using ViaSat SurfBeam(R)
Docsis(R) technology and operated by WildBlue and Telesat have
already reached over 300,000 Internet subscribers since their
launch in 2005. As a standard used by several tens of millions
of cable customers worldwide, Docsis, together with powerful new
Ka-band multi-spot satellites can facilitate important economies
of scale to enable satellite-based consumer Internet services to
achieve costs and bandwidth comparable to ADSL.
Breaking New Barriers in Capacity
The amount of bandwidth provided by KA-SAT, coupled with
ViaSat's next generation SurfBeam(R) ground networking system,
will take satellite operations to new levels of efficiency and
capacity, delivering a total throughput of over 70 Gigabits per
second. A watershed in satellite-based IP access, the new
satellite and associated gateways will dramatically increase the
number of addressable households to well beyond one million,
with end-user speeds comparable to ADSL. This compares to
several tens of thousands of professional users served by
existing Ku-band satellites serving Europe.
On signing the contract for KA-SAT with EADS Astrium, Eutelsat
Chairperson and Chief Executive Officer, Giuliano Berretta said:
"With their high power and broad coverage, today's Ku-band
satellites are highly optimised for video broadcasting and
professional data networks and are the core component of
Eutelsat's satellite system. Today, with the announcement of
our first full KA-band programme, we are crossing a new frontier
to a specifically designed infrastructure for interactive
consumer services. And by combining this satellite
infrastructure at our Hot Bird(TM) neighbourhood with our Ku-
band satellites optimised for broadcasting, we are in a unique
position to expand the range of digital entertainment services
available from a single neighbourhood to homes across Europe."
Mr. Berretta added, "We will also leverage the substantial
capacity available in the Ka-band for new opportunities for
local and regional content. KA-SAT is also uniquely designed
for transmitting new video applications requiring ultra high bit
rates such as HD digital cinema and 3D television."
"Through the satellite infrastructure programmes announced by
Eutelsat and ViaSat, and the collaboration between our two
companies, consumer satellite broadband is making exciting
progress in terms of efficiency and competitiveness and can have
a substantial impact in resolving the digital divide. More than
15 million homes in Europe and as many in North America will
still be beyond range of terrestrial broadband networks in
2010," Mr. Berretta concludes.
Procurement of the infrastructure
Based on the Eurostar E3000 platform, KA-SAT is the 17th
satellite commissioned by Eutelsat from EADS Astrium. Designed
to operate for 15 years, it will have a launch mass of 5.8
tonnes and a payload consuming more than 11 kW of power. Its
solar arrays will generate 15 kW of power.
The procurement of this satellite and associated ground system
forms part of the investment objective of Eutelsat
Communications announced in October 2007 on the occasion of the
Group's first quarter revenues for the 2007-2008 financial year.
About Eutelsat
Headquartered in Paris, France, Eutelsat Communications
(Euronext Paris: ETL) -- http://www.eutelsat.com/-- is the
holding company of Eutelsat S.A. The Group is a leading
satellite operator with capacity commercialized on 23 satellites
providing coverage over the entire European continent, as well
as the Middle East, Africa, India and significant parts of Asia
and the Americas. One of its worldwide operations is located in
Brazil. The Group is one of the world's three leading satellite
operators in terms of revenues. Its satellites are used for
broadcasting nearly 1,800 TV and 900 radio stations to more than
120 million cable and satellite homes. The Group also provides
TV contribution services, corporate networks, mobile positioning
and communications, Internet backbone connectivity and broadband
access for terrestrial, maritime and in-flight applications.
* * *
In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Telecommunications, Media and
Technology sectors, Moody's Investors Service confirmed its Ba2
Corporate Family Rating for Eutelsat Communications S.A.
Moody's also assigned a Ba3 probability of default rating to the
company.
Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------ ----------
Senior Unsecured
Bank Credit Facility Ba3 LGD4 55%
IWT TESORO: BofA Balks at Exclusive Periods Extension
-----------------------------------------------------
Bank of America N.A., the senior secured lender and DIP lender
of I.W.T. Tesoro Corporation and its debtor-affiliates, objects
to the Debtors' request for extension of their exclusive periods
to file a plan and solicit acceptances of that plan.
BofA tells the Court that the Debtors' proposed extension will
allow the Debotrs to proceed "with a 2 track process toward
reorganization" -- these tracks involves the sale of
substantially all of its assets and the proposal of a plan of
reorganization.
BofA argues that the Debtors cannot afford a two-track process
without any financing and considering the Debtors' deteriorating
financial condition.
BofA discloses that the Debtors' current budget expired on
Dec. 31, 2007, and the DIP financing will expire on
Jan. 18, 2008.
In addition, BofA notes that its senior secured claims totaled
approximately $17 million and junior secured claim at
approximately $8.6 million. BofA avers that the Debtors'
liquidation value is significantly less than the claims it
holds.
As reported in the Troubled Company Reporter on Jan. 2, 2008,
the Debtors asked the Court to further extend their exclusive
period to file a plan for 120 days, and solicit acceptances of
that plan for 180 days.
The Debtors told the Court that they need sufficient time to
formulate a consensual Chapter 11 plan of reorganization as they
continue their negotiations with their proposed funder, KMA
Capital, and the Official Committee of Unsecured Creditors.
About I.W.T. Tesoro
I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, --
http://www.iwttesoro.com/-- is headquartered in New York City.
The company and its subsidiaries distribute building materials,
specifically hard floor and wall coverings. They are
wholesalers and do not sell directly to any end user. Their
products consist of ceramic, porcelain and natural stone floor,
wall and decorative tile. They import a majority of these
products from suppliers and manufacturers in Europe, South
America (Brazil), and the Near and Far East. Their markets
include the United States and Canada. They also offer private
label programs for branded retail sales customers, buying
groups, large homebuilders and home center store chains.
The Debtor and its debtor-affiliates, International Wholesale
Tile, Inc. and American Gres, Inc., filed for Chapter 11
bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case
No. 07-12841). John K. Sherwood, Esq., at Lowenstein Sandler
P.C., represents the Official Committee of Unsecured Creditors.
As of June 30, 2007, the Debtors had total assets of
US$39,798,579 and total debts of US$47,940,983.
JAPAN AIRLINES: Final Bidding for JALCard to be Held This Week
--------------------------------------------------------------
Japan Airlines International Co., Ltd., will hold the final
round of bidding for shares in JALCard in the later part of this
week, sources familiar with the matter revealed to Jiji Press.
Jiji Press' sources say that JAL has already narrowed down the
candidates to buy shares of its wholly owned credit card unit
to five companies, including Mitsubishi UFJ Financial Group
Inc., Credit Saison Co., and U.S. investment fund TPG.
The five selected bidders are expected to participate in the
upcoming bidding where JAL will decide the winner in late
March, relates Jiji Press.
According to the report, JAL will take into account not only
the bid prices but also the business plans presented by the
bidders. The sources of Jiji Press further revealed that JAL
may consider giving up its majority stake in JALCard.
JAL, which intends to use the proceeds of the share sale to
reduce interest-bearing debts and strengthen its financial
standing, hopes to tie-up with the procurer of JALcard and
wants the new shareholder to agree to retain the brand name,
adds Jiji Press.
Jiji Press states that JALCard is expected to total tens of
billions of yen.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil
and France.
* * *
As reported on Feb. 9, 2007, that Standard & Poor's Ratings
Services affirmed its 'B+' long-term corporate credit and issue
ratings on Japan Airlines Corp. (B+/Negative/--) following the
company's announcement of its new medium-term management plan.
The outlook on the long-term corporate credit rating is
negative.
As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan Airlines
Domestic Co., Ltd. The rating affirmation is in response to
the planned restructuring of the Japan Airlines Corporation
group on Oct. 1, 2006 with the completion of the merger of
JAL's two operating subsidiaries, JAL International and Japan
Airlines Domestic. JAL International will be the surviving
company. The rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
LAZARD LTD: Appoints John Rutherford as Managing Director
---------------------------------------------------------
Lazard Ltd. disclosed that John R. Rutherford has joined the
firm as a Managing Director and Head of North American Energy
Investment Banking. Based in Houston, Mr. Rutherford was most
recently a Managing Director and Partner at Simmons & Company
International, an independent investment bank serving the energy
industry.
Mr. Rutherford will be a senior member of Lazard's energy effort
working closely with Bruce Bilger, who was recently hired as
Chairman and Head of Global Energy, based in Houston. He also
will work with George Bilicic, who heads the firm's Global Power
& Energy group, and with Lazard investment bankers in North
America, South America, Europe, Australia and Asia.
"I have known John for twenty years," said Bruce Wasserstein,
Chairman and CEO of Lazard. "As we continue to add industry
depth to our financial advisory business, he will bring
tremendous expertise to our global energy effort and to our
Southwest regional business."
Lazard's global Power & Energy sector has broadened and deepened
its expertise over the past five years. The firm has most
recently advised on such announced and completed transactions as
the acquisition of TXU by KKR and an investor group, Sempra
Energy in its joint venture with the Royal Bank of Scotland, ASM
Brescia in its merger with AEM Milano, TransCanada in its
acquisition of ANR Pipeline and Storage, Duke Energy in the
separation of its gas and power businesses, KeySpan in its sale
to National Grid and Gaz de France on its proposed merger with
Suez. The firm has continued to bolster its teams in its Power
& Energy effort, with the addition of Skip Grow in alternative
energy, and now with Mr. Bilger and Mr. Rutherford.
"John is one of the most respected investment bankers in
energy," said Mr. Bilger. "He will play a key role in providing
specialist skills and industry knowledge, which will be a great
complement to our teams in Houston and North America."
"Lazard has taken the concept of premium, financial advice to a
global platform, while still bringing sector focus to the
table," said Mr. Rutherford. "This is the perfect next step for
me, and I look forward to working with the Lazard teams in
Houston, North America and worldwide."
Mr. Rutherford joins Lazard after ten years at Simmons, where he
played a leadership role in building its financial advisory
businesses in the mid-stream, downstream, and exploration and
production sectors. He also expanded Simmons' efforts in public
oil-field services industry transactions. During his tenure
there he advised clients on such transactions as mergers and
acquisitions, corporate restructurings and other strategic
advisory assignments. Prior to Simmons, Mr. Rutherford was a
senior M&A banker at Lehman Brothers in Houston in its Natural
Resources Group and Mergers and Acquisitions Group, where he was
primarily responsible for originating and executing M&A
assignments and strategic advisory assignments.
In his earlier years, Mr. Rutherford opened the Houston office
for Wasserstein Perella & Co. and was a banker at First Boston.
He also spent two years as CFO and partner of Sandefer Offshore.
Mr. Rutherford earned a BBA in Petroleum Land Management and
Accounting from the University of Texas at Austin, and an MBA
with Distinction from the Wharton School of Business.
About Lazard Ltd.
Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a
preeminent financial advisory and asset management firms, that
operates from 32 cities across 16 countries in North America,
Europe, Asia, Australia and South America. With origins dating
back to 1848, the firm provides advice on mergers and
acquisitions, restructuring and capital raising, well as asset
management services to corporations, partnerships, institutions,
governments, and individuals. The company has locations in
Australia, Brazil, China, France, Germany, India, Japan, Korea
and Singapore.
The company's consolidated balance sheet at Sept. 30, 2007,
showed US$3.51 billion in total assets, US$3.54 billion in total
liabilities, and US$49.0 million minority interest, resulting in
a US$74.5 million total shareholders' deficiency.
PROPEX INC: S&P Lowers Corporate Credit Rating from B- to CCC
-------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on
Propex Inc. by two notches, including its corporate credit
rating to 'CCC' from 'B-'. The ratings remain on CreditWatch
with negative implications where they were placed on
Oct. 8, 2007.
"The downgrade reflects ongoing concerns regarding the company's
ability to improve its subpar financial profile. These include
operating challenges, such as weak residential construction and
housing markets, and concerns over negotiating relief from
financial covenant violations related to its bank credit
facilities," said S&P's credit analyst Henry Fukuchi.
As of Sept. 30, 2007, Propex breached several of its financial
covenants. The company has been negotiating covenant relief
while exploring other arrangements to address its long-term
financing needs.
The downgrades and CreditWatch listing reflect the continued
uncertainty on whether the company can execute a favorable
financing plan to resolve its financial covenant violations.
S&P notes that Propex reported approximately US$45 million of
cash as of Sept. 30, 2007, but S&P is concerned that the current
difficult operating conditions will result in further
deterioration of the company's liquidity and credit quality if
access to a new or amended credit facility is not competed soon.
S&P will resolve the CreditWatch upon completion of its review
of Propex's business prospects and its plan to restore an
acceptable level of liquidity. Continued deterioration in
operating performance resulting in weakening credit metrics and
failure to resolve the current liquidity concerns will result in
additional downgrades.
Propex Inc., based in Chattanooga, Tennessee is the world's
largest independent producer of primary and secondary carpet
backing and a leading manufacturer and marketer of woven and
nonwoven polypropylene fabrics and fibers used in geosynthetic
applications and a variety of other industrial applications such
as fabric bags/containers, fabric protective coverings and
concrete fiber reinforcement. The company became a stand-alone
company following the acquisition of the BP Fabrics and Fibers
Business of BP p.l.c by The Sterling Group, L.P., Genstar
Capital, L.P., Laminar Direct Capital, L.P., Paribas North
America Inc. and members of management in December 2004. The
company has manufacturing operations in North America, Europe
and Brazil.
TELE NORTE: Shares Rise After Merrill Lynch Upgrade
---------------------------------------------------
Alexander Ragir and Romina Nicaretta at Bloomberg News report
that Tele Norte Participacoes SA's shares rose as a result of a
Merrill Lynch upgrade to "buy." The upgrade came as talks that
preferred shares would be converted to common voting stock
emerged. The company's shares increased 7.2% to BRL35.7.
Bloomberg adds that a stake sale in another fixed-line operator,
Brasil Telecom SA, would likely prompt Telemar to combine its
stocks into one class. Telemar failed in December 2006 to
obtain shareholders votes to restructure its capital.
Meanwhile, IstoE magazine reported online that Tele Norte's
holding company, Telemar Participacoes SA, has made an offer to
purchase 35% of Brasil Telecom stake, Bloomberg relates.
Telemar common shares rose to 5.226 reais, or 9 percent, 63.75
reais. Brasil Telecom common shares gained 6.8 percent to
53.10.
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
As reported on April 27, 2007, Standard & Poor's placed on
CreditWatch with negative implications the 'BB+' corporate
credit rating on Tele Norte Leste Participacoes S.A. The
creditwatch resulted from TmarPart's decision to buy out its
holding company's preferred shares.
* BRAZIL: Reports 14% Increase in Auto Production
-------------------------------------------------
Brazil has recorded 2.97 million motor vehicles production last
year, up 14% from 2006 as healthy economic growth stimulated
domestic demand, the Associated Press reports.
According to the Brazilian Motor Vehicle Manufacturers
Association, falling interest rates allowed more Brazilians to
finance purchases in which automakers responded.
In 2007, domestic sales boosted by 23% to a record 2.2 million
vehicles. Fiat SpA was Brazil's leading auto seller with 523,184
vehicles. Volkswagen AG and General Motors Corp. sold 491,788
and 444,904, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.
As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch
said the rating outlook is stable.
===========================
C A Y M A N I S L A N D S
===========================
BNS INT'L: Proofs of Claim Filing Is Until Jan. 11
--------------------------------------------------
BNS International, Ltd.'s creditors are given until
Jan. 11, 2008, to prove their claims to John Cullinane and
Derrie Boggess, 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.
BNS International's shareholder decided on Dec. 11, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
BRANDYWINE GLOBAL: Proofs of Claim Filing Ends on Jan. 11
---------------------------------------------------------
Brandywine Global Opportunity Fund, Ltd.'s creditors are given
until Jan. 11, 2008, to prove their claims to John Cullinane and
Derrie Boggess, 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.
Brandywine Global's shareholder decided on Nov. 27, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
CZ FLAMINGO: Proofs of Claim Filing Deadline Is Jan. 11
-------------------------------------------------------
CZ Flamingo Ltd.'s creditors are given until Jan. 11, 2008, to
prove their claims to Trident Directors (Cayman) 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.
CZ Flamingo's shareholder decided on Dec. 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:
Trident Directors (Cayman) Ltd.
Attention: Philip Sutcliffe
P.O. Box 847, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 949 0880
Fax: (345) 949 0881
DCM EUROPEAN: Final Shareholders Meeting Is on Jan. 11
------------------------------------------------------
DCM European Focus Fund Limited will hold its final shareholders
meeting on Jan. 11, 2008, at 9:00 a.m. at:
Close Brothers (Cayman) Limited
4th Floor Harbor Place, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records
of the company for a period of six years from
the dissolution of the company, after which
they may be destroyed.
DCM European's shareholder decided on Nov. 14, 2007, o place the
company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
John Sutlic
Attention: Kim Charaman
Close Brothers (Cayman) Limited
Fourth Floor, Harbor Place
P.O. Box 1034, Grand Cayman, KYI-1102
Cayman Islands
Telephone: (345) 949 8455
Fax: (345) 949 8499
DCM MASTER: Holding Final Shareholders Meeting on Jan. 11
---------------------------------------------------------
DCM Master Fund Limited will hold its final shareholders meeting
on Jan. 11, 2008, at 9:00 a.m. at:
Close Brothers (Cayman) Limited
4th Floor Harbor Place, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records
of the company for a period of six years from
the dissolution of the company, after which
they may be destroyed.
DCM Master's shareholder decided on Nov. 14, 2007, o place the
company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
John Sutlic
Attention: Kim Charaman
Close Brothers (Cayman) Limited
Fourth Floor, Harbor Place
P.O. Box 1034, Grand Cayman, KYI-1102
Cayman Islands
Telephone: (345) 949 8455
Fax: (345) 949 8499
EASTERN COGEN: Will Hold Final Shareholders Meeting on Jan. 11
--------------------------------------------------------------
Eastern Cogen Investment Company I Limited will hold its final
shareholders meeting on Jan. 11, 2008, at 12:30 p.m. at the
office of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidators to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
Eastern Cogen's shareholders agreed on Nov. 29, 2007, o place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
FZC CORP: Sets Final Shareholders Meeting for Jan. 11
-----------------------------------------------------
FZC Corporation will hold its final shareholders meeting on
Jan. 11, 2008, at the registered office of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidators to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
FZC's shareholders agreed on Nov. 20, 2007, to place the company
into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
HARBOURVIEW CLO: Proofs of Claim Filing Ends on Jan. 11
-------------------------------------------------------
Harbourview CLO IV, Limited's creditors are given until
Jan. 11, 2008, to prove their claims to John Cullinane and
Derrie Boggess, 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.
Harbourview CLO's shareholder decided on Dec. 10, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
IIU CONVERTIBLE: Proofs of Claim Filing Deadline Is Jan. 11
-----------------------------------------------------------
IIU Convertible Arbitrage Fund Limited's creditors are given
until Jan. 11, 2008, to prove their claims to John Cullinane and
Derrie Boggess, 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.
IIU Convertible'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 liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
KEEL OFFSHORE: Will Hold Final Shareholders Meeting on Jan. 11
--------------------------------------------------------------
Keel Offshore, Ltd., will hold its final shareholders meeting on
Jan. 11, 2008, at 11:00 a.m. at the office of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidators to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
Keel Offshore's shareholders agreed on Nov. 29, 2007, o place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
LIFE FUNDING: Proofs of Claim Filing Deadline Is Jan. 11
--------------------------------------------------------
Life Funding Limited's creditors are given until Jan. 11, 2008,
to prove their claims to David Dyer, 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.
Life Funding's shareholders decided on Nov. 26, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
P.O. Box 1984, Grand Cayman KY1-1104
Cayman Islands
LIFE FUNDING: Will Hold Final Shareholders Meeting on Jan. 11
-------------------------------------------------------------
Life Funding Limited will hold its final shareholders meeting on
Jan. 11, 2008, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Life Funding's shareholders agreed on Nov. 26, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
David Dyer
P.O. Box 1984, Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949 8244
Fax: (345) 949 5223
MERCARI INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 11
---------------------------------------------------------------
Mercari Investments Limited's creditors are given until
Jan. 11, 2008, to prove their claims to John Cullinane and
Derrie Boggess, 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.
Mercari Investments' shareholder decided on Nov. 8, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
NATURE'S CHI: Liquidator Filing for Dissolution by Jan. 11
----------------------------------------------------------
Stephen E. Lowe, the official receiver of Nature's Chi Limited,
will file in the Registrar of Companies for the dissolution of
the company by Jan. 11, 2008.
In line with Section 199A of the Companies Act 1981, Mr. Lowe is
satisfied that the realizable assets of Nature's Chi are
insufficient to cover the expenses of the winding up and that
the affairs of the company do not require any further
investigation.
Mr. Lowe no longer performs any duties imposed upon him in
relation to Nature's Chi, its creditors or contributors by
virtue of any provision of The Companies Act, other than his
duty to apply to the Registrar of Companies for the early
dissolution of the company.
The Registrar of Companies will dissolve Nature's Chi three
months after receipt of Mr. Lowe's application.
Under Section 199B of the Companies Act, any creditor or
shareholder with grounds to believe that:
-- the realizable assets of the company are sufficient
to cover the expenses of the winding up;
-- the affairs of this company do require further
investigation; or
-- for any other reason the early dissolution of the
company is inappropriate, the creditor of
shareholder may apply to the Minister of Finance
to:
* allow the winding up of the company to proceed
as if this notice had not been issued; and
* defer the date on which the dissolution of the
company is to take effect.
NET INTEGRATED: Liquidator Filing for Dissolution by Jan. 11
------------------------------------------------------------
Stephen E. Lowe, the official receiver of Net Integrated Systems
Ltd., will file in the Registrar of Companies for the
dissolution of the company by Jan. 11, 2008.
In line with Section 199A of the Companies Act 1981, Mr. Lowe is
satisfied that the realizable assets of Net Integrated are
insufficient to cover the expenses of the winding up and that
the affairs of the company do not require any further
investigation.
Mr. Lowe no longer performs any duties imposed upon him in
relation to Net Integrated, its creditors or contributors by
virtue of any provision of The Companies Act, other than his
duty to apply to the Registrar of Companies for the early
dissolution of the company.
The Registrar of Companies will dissolve Net Integrated three
months after receipt of Mr. Lowe's application.
Under Section 199B of the Companies Act, any creditor or
shareholder with grounds to believe that:
-- the realizable assets of the company are sufficient
to cover the expenses of the winding up;
-- the affairs of this company do require further
investigation; or
-- for any other reason the early dissolution of the
company is inappropriate, the creditor of
shareholder may apply to the Minister of Finance
to:
* allow the winding up of the company to proceed
as if this notice had not been issued; and
* defer the date on which the dissolution of the
company is to take effect.
OCEAN HOLIDAYS: Sets Final Shareholders Meeting for Jan. 11
-----------------------------------------------------------
Ocean Holidays Limited will hold its final shareholders meeting
on Jan. 11, 2008, at the office of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Ocean Holidays' shareholder decided on Nov. 29, 2007, o place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Commerce Corporate Services Limited
P.O. Box 694, George Town
Grand Cayman, Cayman Islands
Telephone: 949 8666
Fax: 949 7904
POSEIDON INVESTMENTS: Final Shareholders Meeting Is on Jan. 11
--------------------------------------------------------------
Poseidon Investments B Ltd. will hold its final shareholders
meeting on Jan. 11, 2008, at 9:30 a.m. at the office of the
company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidators to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
Poseidon Investments' shareholders agreed on Nov. 29, 2007, o
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
PROSPECT FUNDING: To Hold Final Shareholders Meeting on Jan. 11
---------------------------------------------------------------
Prospect Funding Corp. will hold its final shareholders meeting
on Jan. 11, 2008, at 10:00 a.m. at the office of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidators to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
Prospect Funding's shareholders agreed on Nov. 29, 2007, o place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
PROSPECT PROPERTY: Sets Final Shareholders Meeting for Jan. 11
--------------------------------------------------------------
Prospect Property Holding Corp. will hold its final shareholders
meeting on Jan. 11, 2008, at 10:30 a.m. at the office of the
company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidators to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
Prospect Property's shareholders agreed on Nov. 29, 2007, o
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
REACH EQUITY: Holding Final Shareholders Meeting on Jan. 11
-----------------------------------------------------------
Reach Equity Limited will hold its final shareholders meeting on
Jan. 11, 2008, at the office of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Reach Equity's shareholders agreed on Nov. 14, 2007, o place the
company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102, Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
SEACAT LIMITED: Sets Final Shareholders Meeting for Jan. 11
-----------------------------------------------------------
Seacat Limited will hold its final shareholders meeting on
Jan. 11, 2008, at:
Pradafant 21
9490 Vaduz
Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Seacat Limited's shareholders agreed on Nov. 20, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Divame Consulting S.A.
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309, George Town
Ugland House, South Church Street
George Town, Grand Cayman
Cayman Islands
SZ94B LIMITED: Proofs of Claim Filing Deadline Is Jan. 11
---------------------------------------------------------
SZ94B Limited's creditors are given until Jan. 11, 2008, to
prove their claims to Trident Directors (Cayman) 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.
SZ94B Limited's shareholder decided on Dec. 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:
Trident Directors (Cayman) Ltd.
Attention: Philip Sutcliffe
P.O. Box 847, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 949 0880
Fax: (345) 949 0881
VENO FUNDING: Will Hold Final Shareholders Meeting on Jan. 11
-------------------------------------------------------------
Veno Funding Limited will hold its final shareholders meeting on
Jan. 11, 2008, at 11:30 a.m. at the office of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidators to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
Veno Funding's shareholders agreed on Nov. 29, 2007, o place the
company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
WHITED CONSTRUCTION: Mr. Lowe Filing for Dissolution by Jan. 11
---------------------------------------------------------------
Stephen E. Lowe, the official receiver of Whited Construction
Ltd., will file in the Registrar of Companies for the
dissolution of the company by Jan. 11, 2008.
In line with Section 199A of the Companies Act 1981, Mr. Lowe is
satisfied that the realizable assets of Whited Construction are
insufficient to cover the expenses of the winding up and that
the affairs of the company do not require any further
investigation.
Mr. Lowe no longer performs any duties imposed upon him in
relation to Whited Construction, its creditors or contributors
by virtue of any provision of The Companies Act, other than his
duty to apply to the Registrar of Companies for the early
dissolution of the company.
The Registrar of Companies will dissolve Whited Construction
three months after receipt of Mr. Lowe's application.
Under Section 199B of the Companies Act, any creditor or
shareholder with grounds to believe that:
-- the realizable assets of the company are sufficient
to cover the expenses of the winding up;
-- the affairs of this company do require further
investigation; or
-- for any other reason the early dissolution of the
company is inappropriate, the creditor of
shareholder may apply to the Minister of Finance
to:
* allow the winding up of the company to proceed
as if this notice had not been issued; and
* defer the date on which the dissolution of the
company is to take effect.
=========
C H I L E
=========
EASTMAN KODAK: Signs Tech License Pacts with Matsushita Electric
----------------------------------------------------------------
Eastman Kodak Company has entered into technology license
agreements with Matsushita Electric Industrial Company and with
Victor Company of Japan, Limited that will allow each company
access to the other's patent portfolio.
The license agreements, which provide significant benefits to
all companies, is royalty bearing to Kodak. Additional
financial terms were not disclosed.
"We are pleased to have reached a mutually beneficial
arrangement that advances the interests of Kodak and of MEI and
JVC," said Laura G. Quatela, Chief Intellectual Property
Officer, and Vice President, Eastman Kodak. "Each cross-license
agreement provides the companies with access to each other's
technology, and validates the strength of Kodak's intellectual
property portfolio."
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK)-- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.
The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.
As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2007, Standard & Poor's Ratings Services has affirmed
its 'B+' corporate credit rating on Eastman Kodak Co. and
removed the ratings from CreditWatch, where they had been placed
with negative implications on Aug. 2, 2006. S&P said the
outlook is negative.
ELECTRONIC DATA: Bags US$209.9-Mil. Contract from Indiana State
---------------------------------------------------------------
Electronic Data System Corp., Indiana's Medicaid partner since
1991, has been awarded a US$209.9 million, six-and-a-half-year
contract to upgrade and continue to maintain the state's
Medicaid Management Information System.
The new contract will leverage Electronic Data's leading-edge
interChange Health System, which serves as an industry model and
is in operation or being implemented in more than a dozen
states, including Kansas, Oklahoma, Pennsylvania and Kentucky.
Among the upgrades are a Web-based tool that will enable health
care providers to electronically enroll in the Medicaid program
as well as a number of internal processes.
The company will continue as fiscal agent to the state and its
27,000 health care providers, who care for more than 800,000
recipients and comprise the nation's 17th-largest Medicaid
program.
The agreement includes a seven-month phase to design, develop,
test and implement the additional features followed by a six-
year management term.
The contract, which was signed in late December, extends a
16-year relationship between Electronic Data and Indiana state.
The Electronic Data solution will provide Indiana with enhanced
transparency as it implements Gov. Mitch Daniels' package of
Medicaid reforms such as the Healthy Indiana Plan, which
provides health coverage to previously uninsured Indiana
residents, and the movement of aged, blind and disabled
residents to a care management model. It also will continue
claims processing coverage for other Indiana health programs.
"At the conclusion of the procurement process, it was evident
that EDS was able to bring great value and experience to the
taxpayers of Indiana," said Family and Social Services
Administration Secretary, Mitch Roob. "The technology and
insight that EDS has to offer will be a tremendous asset as we
continue to make great strides in new, innovative programs, such
as the Healthy Indiana Plan."
"As Indiana's technology partner for more than a decade and a
half, EDS understands the Healthy Indiana Plan and the state's
goal to cover its uninsured residents," said EDS Global Health
Care vice president, Sean Kenny. "Our continued relationship
will provide stability not only for the current Medicaid
program, but also for future reforms."
"Long relationships are reflections of earned trust and
understanding of cultures and goals," said EDS United States
Government Health Care vice president, Barbara Anderson. "Over
the years, Indiana and EDS together have delivered program
efficiencies to enable reforms and help push forward vital new
programs to improve health outcomes for Hoosiers."
About Electronic Data System
Based in Plano, Texas, Electronic Data System Corp. (NYSE: EDS)
-- http://www.eds.com/-- is a global technology services
company delivering business solutions to its clients. The
company founded the information technology outsourcing industry
more than 40 years ago. The company delivers a broad portfolio
of information technology and business process outsourcing
services to clients in the manufacturing, financial services,
healthcare, communications, energy, transportation, and consumer
and retail industries and to governments around the world. The
company has locations in Argentina, Australia, Brazil, China,
Chile, Hong Kong, India, Japan, Malaysia, Mexico, Puerto Rico,
Singapore, Taiwan, Thailand and South Korea.
* * *
Moody's placed EDS Corp.'s senior unsecured debt rating at 'Ba1'
in July 2004, and its probability of default rating at 'Ba1' in
September 2006. Moody's said the outlook is positive.
NOVA CHEMICALS: Names Chris Pappas as President & COO
-----------------------------------------------------
NOVA Chemicals Corporation has appointed Chris Pappas, formerly
Senior Vice President and Chief Operating Officer, as the
company's President and Chief Operating Officer effective
Jan. 1, 2008. Jeffrey M. Lipton will continue as Chief
Executive Officer.
"This promotion is a recognition of Chris' outstanding
contributions to the company," said Mr. Lipton. "All of us on
the Board of Directors are pleased to have someone of Chris'
caliber leading our day-to-day operations."
Headquartered in Calgary, Alberta, Canada, Nova Chemicals Co.
(NYSE:NCX) (TSX:NCX) -- http://www.novachem.com/-- is a leading
producer of ethylene, polyethylene, styrene, polystyrene, and
expanded polystyrene. Nova Chemicals' manufacturing sites are
strategically situated throughout Canada, the US and South
America. Its South American operations are located in Chile.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 25, 2007, Moody's Investors Service has confirmed Nova
Chemicals Corporation's Ba3 corporate family rating and senior
unsecured debt ratings following regulatory approval for the
expansion of its styrenics joint venture and the belief that low
olefin feedstock costs could allow the company to meaningfully
reduce debt over the next 12 to 18 months.
===============
C O L O M B I A
===============
BRIGHTPOINT INC: To Market Garmin Mobile Phone Products in US
-------------------------------------------------------------
Brightpoint Inc. will provide product distribution services for
Garmin International within the United States. Brightpoint,
through its various distribution sales channels, will market and
distribute a range of Garmin's mobile phone products including
the Garmin Mobile for BlackBerrys, Garmin Mobile for
Smartphones, and Garmin Mobile XT in the U.S. Garmin Mobile
solutions are compatible with most BlackBerry, Palm, Windows
Mobile, and Symbian Smartphones. All Garmin Mobile solutions
are bundled with access to Garmin's powerful Garmin Online
service, which includes real time traffic, weather, fuel prices
and hotel rates from Hotels.com.
About Garmin
Garmin International Inc. -- http://www.garmin.com/-- is a
member of the Garmin Ltd. Group of companies which designs,
manufactures, markets and sells navigation, communication and
information devices and applications -- most of which are
enabled by GPS technology. Garmin is a leader in the consumer
and general aviation GPS markets and its products serve
aviation, marine, outdoor recreation, automotive, wireless and
OEM applications. Garmin Ltd. is incorporated in the Cayman
Islands, and its principal subsidiaries are located in the
United States, Taiwan and the United Kingdom. Garmin is a
registered trademark of Garmin Ltd. and Garmin Mobile, Garmin
Mobile XT and Garmin Online are trademarks of Garmin Ltd. or its
subsidiaries.
About Brightpoint
Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- distributes wireless devices and
accessories, as well as provision of customized logistic
services to the wireless industry. The company primarily
operates in Australia, Colombia, Finland, Germany, India, New
Zealand, Norway, the Philippines, the Slovak Republic, Sweden,
United Arab Emirates and the United States. The company's
customers include mobile operators, mobile virtual network
operators, resellers, retailers and wireless equipment
manufacturers. Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.
* * *
On April 12, 2006, Standard & Poor's placed Brightpoint's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Gets Offers for Determining Plant's Value
---------------------------------------------------------------
The Dominican Republic's finance ministry bidding commission
official told Business News Americas that the ministry received
two offers to determine the value of Dominican Petroleum
Refinery aka Refidomsa, the government's joint venture refinery
with Royal Dutch Shell.
As reported in the Troubled Company Reporter-Latin America on
Jan. 7, 2008, the Dominican government is going after the
Refidomsa plant. The government wants full control of the
refinery in bid to stabilize fuel prices within the country.
Dominican President Leonel Fernandez ordered in the state last
year to acquire Royal Dutch's 50% share in Refidomsa as part of
a package of energy reforms.
Published reports say Royal Dutch's stake could be over US$200
million.
BNamericas relates that Royal Dutch said in 2006 it was
considering selling its Dominican assets.
The bidding commission official told BNamericas that the
commission already began reviewing the two offers.
The winning bidder will study the technology the plant uses,
value the firm's import business and consider other market
players, BNamericas states.
About Royal Dutch Shell
Royal Dutch Shell PLC is engaged in all principal aspects of the
oil and natural gas industry, and also has interests in
chemicals and additional interests in power generation and
renewable energy (mainly in wind and advanced solar energy).
The company operates in five segments: Exploration & Production,
which searches for and recovers oil and natural gas around the
world and is active in 38 countries; Gas & Power, which
liquefies and transports natural gas, and develops natural gas
markets and related infrastructure; Oil Products, which include
all of the activities necessary to transform crude oil into
petroleum products and deliver these to customers worldwide;
Chemicals, which produces and sells petrochemicals to industrial
customers globally, and Other Industry Segments and Corporate,
which include Renewables and Hydrogen.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Moody's Investors Service upgraded the Dominican
Republic government's foreign- and local-currency bond ratings
to B2 from B3. The Dominican Republic's foreign-currency
country ceiling was upgraded to Ba3 from B1. The country's
ceiling for foreign-currency bank deposits was also upgraded to
B3 from Caa1. Moody's said all ratings have stable outlook.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned B+
long-term sovereign local and foreign currency ratings and C
short-term sovereign local and foreign currency ratings on the
Dominican Republic. S&P said the outlook for all the ratings is
stable.
=============
E C U A D O R
=============
PETROECUADOR: New Head Discloses Corruption in the Company
----------------------------------------------------------
Navy Rear Admiral Fernando Zurita, PetroEcuador's recently
installed head, said that corruption in the Ecuador's state oil
firm is widespread, Stephan Kueffner at Bloomberg News reports.
Admiral Zurita took over the reins beginning January 2008 after
President Rafael Correa sacked the previous head on grounds of
unsatisfactory performance.
"There is theft in the tens of thousands, tens of millions,
hundreds of millions of dollars," Admiral Fernando Zurita,
president of PetroEcuador, was quoted by Bloomberg as saying.
"We will find much more as a result of the review that we are
making of oil contracts."
The new head added that he is intent to find the persons who
took money from the company and make them pay for the theft,
Bloomberg says.
Among his development plans is the establishment of a corporate
area to protect the environment in order to avoid costly
environmental costs. Funds for this will be taken from a
US$4.24 billion budget. Some of the funding will be used to buy
refined fuel. Ecuador imports fuel because it lacks refining
capacity.
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
PETROECUADOR: Petroleos de Venezuela To Study Joint Venture
-----------------------------------------------------------
The Ecuadorian presidential press office said in a statement
that Venezuelan state-run oil company Petroleos de Venezuela SA
will study the creation of a joint venture with Petroecuador for
exploration and production at Block 4 in the Gulf of Guayaquil.
According to Ecuador's statement, its energy and mining ministry
has already signed a letter of intent with Venezuelan
counterpart Menpet for the joint exploration.
Ecuadorian energy and mining minister Galo Chiriboga told Xinhua
News, "The signing of this document responds to an initiative by
the governments of Ecuador and Venezuela to economically
integrate the region by establishing energy alliances."
The statement says that Petroecuador will give Petroleos de
Venezuela technical information on the block in the first phase
of joint activities. Petroleos de Venezuela will form a
technical team and reprocess and evaluate the data within six
months.
Business News Americas relates that Venezuela and Ecuador agreed
to let Petroleos de Venezuela develop an exploration and
production plan for the block.
Minister Galo Chiriboga said in a statement that Petroleos de
Venezuela will pay the US$150-million start-up fee.
Petroecuador will start paying for its share of exploration and
production once the initial results are positive.
Minister Chiriboga told BNamericas that the oceanographic
institute of Ecuador's navy would head seismic acquisition
during the exploration phase.
There is no risk for Ecuador if the exploration is a failure,
Xinhua News says, citing Minister Chiriboga. "But if the
exploration comes up positive, the exploitation process will be
negotiated," the minister commented to Xinhua News.
The project with Venezuela would held Ecuador increase
hydrocarbon supply security in the medium and long term by
diversifying sources, Minister Chiriboga told Xinhua News.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
=================
G U A T E M A L A
=================
ALCATEL-LUCENT: Remi Thomas Joins as VP of Investor Relations
-------------------------------------------------------------
Remi Thomas will join Alcatel-Lucent as Vice President of
Investor Relations, responsible for communication with the
investment community, including financial analysts,
institutional investors and retail shareholders. Mr. Thomas
will report to Hubert de Pesquidoux, Alcatel-Lucent's Chief
Financial Officer. This appointment becomes effective
Jan. 21, 2008.
Since 2005, Mr. Thomas has served as deputy research director at
CA Cheuvreux. He joined CA Cheuvreux in 1996 as a financial
analyst, and has lead the firm's Technology sector, including
Alcatel-Lucent and French telecom operators. Prior to that he
focused on the capital goods sector. From 1992 to 1995, Mr.
Thomas was financial analyst at Cholet Dupont (Credit Lyonnais).
"We are pleased to welcome Remi Thomas, one of the most
respected financial analysts covering the telecom industry, to
Alcatel-Lucent," said Alcatel-Lucent CFO, Mess. de Pesquidoux.
"Remi's comprehensive knowledge of our industry combined with
his first-hand experience and understanding of the financial
community and its needs will be a clear asset for our company."
Mr. Thomas holds a MBA from Warwick University, GB, and is a
graduate from the ESC business school in Toulouse, France. He
is a member of the French financial analysts society (Societe
francaise des analystes financiers).
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from
Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings
for senior debt of the group were equally lowered to Ba3 from
Ba2 and the trust preferred notes of Lucent Technologies Capital
Trust I have been downgraded to B2 from B1. At the same time,
Moody's affirmed its Not-Prime rating for short-term debt of
Alcatel-Lucent. Moody's said the outlook for the ratings is
stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
===============
H O N D U R A S
===============
* HONDURAS: World Bank Deciding on US$30-Mln Restructuring Loan
---------------------------------------------------------------
The World Bank will decide a US$30-million utility restructuring
loan for Honduras during a meeting on March 12, 2008, Business
News Americas reports.
According to BNamericas, the loan will be used for Honduras'
hydrocarbons and power sectors.
The World Bank said in its monthly operational summary that the
funding is for the strengthening of the hydrocarbons unit of the
natural resources and environment department Serna and the
improvement of power services delivery.
BNamericas notes that the loan would also be used in
strengthening the Honduran telecom sector's institutional
framework.
The World Bank told BNmaericas that the Honduran power sector
has been impacted by:
-- high non-technical losses,
-- non-payment for electricity by government institutions,
and
-- a backlog of needed investments in distribution and
transmission.
BNamericas relates that state power firm Enee's poor performance
last year was affected by:
-- non-technical losses,
-- technical losses, and
-- high international fuel prices.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
AIR JAMAICA: Two Unions Hold Protest Against Airline
----------------------------------------------------
The Bustamante Industrial Trade Union has joined the National
Workers Union in demonstrations against Air Jamaica, Radio
Jamaica reports.
Radio Jamaica relates that the protests were due to the handling
of negotiations about job reductions at Air Jamaica.
As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2008, the Air Jamaica board of director's executive
chairperson Shirley Williams denied the dismissal of temporary
workers at the airline. Air Jamaica reportedly began laying off
temporary workers and is "making up two-week rosters" for its
regular workers. "It is customary for the airline to compile
six-week work schedules for its staff." Air Jamaica's board of
directors allegedly recommended that 30% of the workers "be made
redundant." The board was reportedly planning another layoff.
The National Workers' vice president Vincent Morrison accused
Air Jamaica of confusing workers by sending mixed signals
regarding the airline's restructuring, Radio Jamaica notes.
Air Jamaica should tell the unions the true position and
guarantee that they communicate the same to the managers, Radio
Jamaica says, citing Mr. Morrison. The situation has confused
and disquieted the employees, who are now "demoralized and de-
motivated."
The Bustamante Industrial's president general Kavon Gayle told
Radio Jamaica that the unions have been advised of ongoing
restructuring at Air Jamaica, but have not been told of the
result of the restructuring. If worker reduction is imminent,
that would be an irresponsible act on Air Jamaica's part. A
business plan must first be presented to the union about the
future of the airline. If staff reduction is part of that plan,
there must be some justification presented to the union.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private in
1994. The Jamaican government does not plan to on Air Jamaica
permanently.
* * *
On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.
===========
M E X I C O
===========
BOWNE & CO: Earns US$804,000 in Quarter Ended Sept. 30
------------------------------------------------------
Bowne & Co. Inc. reported net income of US$804,000 in the third
quarter ended Sept. 30, 2007, compared with a net loss of
US$11.8 million, including loss from discontinued operations,
net of tax of US$12.1 million, in the same period last year.
Revenue of US$181.4 million in the third quarter of 2007
compared to US$175.1 million in 2006. Gross margin improved to
34.7% from 33.8%. Income from continuing operations increased
to US$884,000 million from US$296,000.
For the nine months ended Sept. 30, 2007, revenue was
US$654.9 million up from US$641.2 million reported in the
comparable 2006 period. Gross margin increased US$21.8 million,
or 9.7%, and as a percentage of revenue improved to 37.4% from
34.8% in the nine months ended Sept. 30, 2006. Income from
continuing operations increased US$14.8 million, or 124%, to
US$26.8 million from US$11.9 million reported in 2006. Net
income was US$27.2 million, compared with a net loss of US$4.0
million, including loss from discontinued operations, net of tax
of US$15.9 million, in the same period last year.
"We continue to be pleased with our overall performance," said
David J. Shea, Bowne chairman, president and chief executive
officer. "Our margin and profitability improvement is a direct
result of the effective implementation of our strategic
initiatives to grow non-transactional revenue and improve the
efficiency and utilization of our operations.
"We're also excited about the acquisition of Alliance Data Mail
Services, an affiliate of Alliance Data Systems Corporation,
which directly supports our strategy to grow non-transactional
revenue with strategic, bolt-on acquisitions and accelerate our
growth in marketing and business communications services by
expanding our geographic reach and industry verticals, while
adding new technology capabilities."
Restructuring, Integration
and Asset Impairment Charges
Restructuring, integration and asset impairment charges totaled
US$2.1 and US$12.2 million for the 2007 third quarter and year-
to-date respectively, compared to US$1.9 and US$12.1 million in
the comparable 2006 periods. Third quarter 2007 charges include
US$1.4 million related to the previously disclosed consolidation
of the digital Milwaukee facility into the existing South Bend
manufacturing facility, creating the company's first fully-
integrated offset and digital distributive platform.
Year-to-date 2007 charges include facility exit costs and asset
impairment charges related to the consolidation of leased space
at 55 Water Street in New York City, severance, integration and
facility costs related to the integration of the St Ives
Financial business and the aforementioned consolidation of the
Milwaukee facility.
Cash Flow
For the nine months ended Sept. 30, 2007, cash and marketable
securities of US$82.4 million declined US$3.2 million from year-
end 2006. This includes the funding of US$40.1 million in stock
repurchases, US$12.6 million for acquisitions, US$14.3 million
in capital expenditures and a US$3.3 million contribution to the
company's pension plan.
The cash expenditures above were funded by an increase in net
cash provided by operations of US$72.0 million. Net cash
provided by operating activities of US$57.0 million for the nine
months ended Sept. 30, 2007, compared to net cash used in
operating activities of US$15.1 million for the nine months
ended Sept. 30, 2006. This significant increase is primarily
due to improved operating results, reduced accounts receivable
and decreases in income taxes paid and in the funding of the
company's pension plans in 2007 as compared to 2006.
At Sept. 30, 2007, the company has no borrowings outstanding
under its US$150.0 million five-year senior, unsecured revolving
credit facility, maturing in May 2010.
Share Repurchase Program
In the 2007 third quarter, the company spent US$21.4 million
repurchasing 1.3 million shares of its common stock at an
average price per share of US$16.71. During the nine months
ended Sept. 30, 2007, the company repurchased 2.4 million shares
of its common stock for US$40.1 million. From December 2004,
the inception of the company's share repurchase program, through
Sept. 30, 2007, Bowne has spent approximately US$185.3 million
to repurchase 12.3 million shares at an average price per share
of US$15.08. As of Nov. 5, 2007, US$5.8 million of its share
repurchase authorization remained. Total shares outstanding as
of Nov. 1, 2007, were 26,691,860.
Balance Sheet
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$497.7 million in total assets, US$239.9 million in
total liabilities, and US$257.8 million in total stockholders'
equity.
Full-text copies of the company's consolidated financial
statements for the quarter ended Sept. 30, 2007, are available
for free at http://researcharchives.com/t/s?26d1
About Bowne & Co. Inc.
Headquartered in New York City, Bowne & Co. Inc. (NYSE: BNE)
-- http://www.bowne.com/ -- provides financial, marketing and
business communications services around the world. Bowne has
3,200 employees in 60 offices around the globe. The company's
Latin American offices are located in Argentina, Brazil and
Mexico.
* * *
Bowne & Co. Inc. still carries Moody's 'Ba3' corporate family
rating which was affirmed in January 2007. Moody's said the
outlook remains positive.
DOMINO'S PIZZA: Welcomes Ken Rollin as EVP & New General Counsel
----------------------------------------------------------------
Ken Rollin has joined Domino's Pizza Inc.'s Leadership Council
in the position of Executive Vice President and General Counsel,
following a five-month extensive search to replace the company's
previous General Counsel. Mr. Rollin joins the company with a
broad range of legal experience including that of retail and
franchise. He was recently made Vice President and Deputy
General Counsel for AutoNation, Inc.
Mr. Rollin commented on his new position: "I'm honored to join
the Leadership Council of Domino's Pizza, and look forward to a
long and exciting career with this global company and household
name."
Chairperson and Chief Executive Officer, David A. Brandon said,
"We are thrilled to have Ken join our team. We were fortunate
to have many outstanding candidates emerge from our national
search process; and Ken impressed us as having the credentials,
experience and engaging personality that we were looking for in
our new General Counsel."
In his role as Deputy General Counsel at AutoNation, Mr. Rollin
was responsible for a broad range of legal practices, including
litigation, employment law, corporate governance and compliance,
franchise law, real estate and environmental. He has been with
AutoNation since June 2000.
In addition to the broad range of legal issues he experienced at
AutoNation, Mr. Rollin also has prior retail experience by
serving as a Senior Attorney for Walgreen Co. drug store chain,
where he established their litigation practice. Prior to
Walgreens, he worked for two different law firms, specializing
in litigation.
Mr. Rollin holds a Juris Doctorate degree from Northwestern
University School of Law and an undergraduate degree in
Psychology from Indiana University. He is a native of Illinois,
and will relocate to the Ann Arbor, Michigan area with his wife
Eileen, and two sons: 12-year-old Jack and 11-year-old Scott.
About Domino's Pizza
Headquartered in Ann Arbor, Michigan, Domino's Pizza Inc. (NYSE:
DPZ) -- http://www.dominos.com/-- through its primarily
franchised system, operates a network of 8,190 franchised and
company-owned stores in the U.S. and more than 50 countries.
Founded in 1960, the company has more than 500 stores in Mexico.
The Domino's Pizza(R) brand, named a Megabrand by Advertising
Age magazine, had global retail sales of nearly US$5 billion in
2005, comprised of US$3.3 billion domestically and US$1.7
billion internationally.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2007, Domino's Pizza Inc.'s balance sheet as of
June 17, 2007, showed total assets of US$474.1 million, total
liabilities of US$1.9 billion, and total stockholders' deficit
of US$1.4 billion.
As of June 17, 2007, the company had US$1.7 billion of debt, of
which US$300,000 was classified as a current liability.
Additionally, as of June 17, 2007, the company had borrowings of
US$114.3 million available under its US$150 million revolving
credit facility, net of letters of credit issued of US$30.7
million and US$5 million of borrowings on the variable funding
notes. The letters of credit are primarily related to the
company's casualty insurance programs and distribution center
leases.
FREESCALE SEMI: Will Develop Power Management Chip for Intel
------------------------------------------------------------
Freescale Semiconductor has reached agreement with Intel
Corporation to develop a high-performance audio and power
management solution for Intel-based MIDs. The highly integrated
chip set is designed to efficiently manage power, enabling
smaller form factors and longer battery life.
"This collaboration combines the strengths of two semiconductor
industry leaders to address complex power-management challenges
for next-generation Mobile Internet Devices," said Arman
Naghavi, vice president and general manager of Freescale's
Analog, Mixed-Signal & Power Division. "Freescale's
process technology and IP provide an ideal complement to Intel's
leadership and technology innovation in mobile processing."
The audio and power management chip set is planned to be
manufactured on Freescale's advanced SMARTMOS(TM) technology, a
high-voltage CMOS-based process that enables high integration of
precision analog, power devices and logic. When paired with
Intel's low-power processors and chip sets, the forthcoming
power management chip set is expected to provide an energy-
efficient processing solution for a range of Mobile Internet
Devices.
"Mobile Internet Devices (MIDs) are an exciting growth
opportunity for the industry and will enable consumers to carry
a full Internet experience in their pockets," said Pankaj Kedia,
Director of Global Ecosystem Programs in the Ultra Mobility
Group at Intel Corporation. "Freescale's power management
IC and Intel's low-power technologies will enable device makers
to deliver MIDs in increasingly smaller form factors with great
battery life."
Initial samples of Freescale's power management ICs are expected
to be available in the second half of 2008.
Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.
Freescale Semiconductor became a publicly traded company in July
2004. The company has design, research and development,
manufacturing or sales operations in more than 30 countries. In
Latin America, the company has operations in Argentina, Brazil
and Mexico. In Europe, the company has operations in Czech
Republic, France, Germany, Ireland, Italy, Romania, Turkey and
the United Kingdom. Revenues for the 12 months ended
Mar. 31, 2007, were US$6.2 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Moody's Investors Service has lowered the ratings
of Freescale Semiconductor Inc:
-- Corporate Family Rating to B1 from Ba3
-- Probability of Default Rating to B1 from Ba3
-- US$ 750 Million Senior Secured Revolving Credit Facility
due 2012 to Ba1 (LGD-2, 17%) from Baa3 (LGD-2, 16%)
-- US$3.50 Billion Senior Secured Term Loan B Facility due
2013 to Ba1 (LGD-2, 17%) from Baa3 (LGD-2, 16%)
-- US$2.35 Billion Senior Unsecured Notes due 2014 to B2 (LGD-
4, 65%) from B1 (LGD-4, 63%)
-- US$ 500 Million Senior Unsecured Floating Rate Notes due
2014 to B2 (LGD-4, 65%) from B1 (LGD-4, 63%)
-- US$1.50 Billion Senior Unsecured Toggle Notes due 2014 to
B2 (LGD-4, 65%) from B1 (LGD-4, 63%)
-- US$1.60 Billion Senior Subordinated Unsecured Notes due
2016 to B3 (LGD-6, 92%) from B2 (LGD-6, 91%)
GSI GROUP: Taps Philippe Brak as Laser Biz's VP & Gen. Manager
--------------------------------------------------------------
GSI Group Inc. has appointed Philippe Brak as Vice President and
General Manager of the company's Laser Business.
"Philippe is a senior executive who brings more than 20 years of
experience in the Laser Industry and has held positions in
General Management, Sales and Marketing, Manufacturing and
Engineering in both established and start-up environments,"
stated President and Chief Executive Officer, Dr. Sergio
Edelstein.
Mr. Brak joins GSI Group from NP Photonics, a fiber laser
company, where he served as CEO and President after being
promoted from his initial role as Vice President, Sales and
Marketing. Before joining NP Photonics, he was with Gigabit
Optics, where he established their worldwide distribution
networks. Prior to that, Mr. Brak 16 years at Spectra-Physics
Lasers, Inc. in various General Management and Sales and
Services Management roles, including that of Vice President and
General Manager for the company's worldwide OEM business, and
assignments in Europe and the United States.
Mr. Brak earned a Masters degree, and pursued doctoral studies
in Physical Chemistry from the Catholic University of Leuven,
Belgium.
About The GSI Group
Based in Illinois, GSI Group Inc. --
http://www.grainsystems.com/-- manufactures agricultural
equipment. The company's grain, swine and poultry products are
used by producers and purchasers of grain, and by producers of
swine and poultry. The company is comprised of several
manufacturing divisions. Grain Systems, and GSI International
are the grain storage, drying and material handling divisions of
The GSI Group. The group has operations in Mexico and Brazil.
GSI manufactures galvanized steel storage bins and many types of
grain drying systems including portable, stacked, tower and
process dryers. In addition, GSI carries a full line of material
handling equipment including augers, bin sweeps, bucket
elevators, conveyors, distributors, chain loop systems, and
grain spreaders.
The GSI Group markets its products to over 75 countries
worldwide through a network of independent dealers to
grain/protein producers and large commercial businesses.
* * *
As reported in the Troubled Company Reporter on July 18, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Assumption, GSI Group Inc. and revised its
outlook to stable from negative.
As reported in the Troubled Company Reporter-Latin America on
May 2, 2005, Moody's Investors Service has assigned a B3 rating
to the proposed senior notes of The GSI Group, Inc., which will
be used to refinance existing indebtedness in connection with
the company's pending acquisition by GSI Holdings Corp. (an
affiliate of Charlesbank Capital Partners, LLC). In addition,
Moody's has affirmed GSI's existing ratings, including its B2
senior implied rating, and assigned a speculative grade
liquidity rating of SGL-2. Approximately US$125 Million of
rated debt is affected.
KANSAS CITY: Picks Leonard Wagner as Associate General Counsel
--------------------------------------------------------------
Kansas City Southern and its subsidiaries has hired Leonard L.
Wagner as its associate general counsel.
"With nearly 20 years of proven litigation experience, Leonard
will be a valuable member of our legal team," said William J.
Wochner, senior vice president and chief legal officer. "His
focus area will be claims and litigation."
Prior to joining the company, Mr. Wagner worked for Husch &
Eppenberger, LLC, Armstrong Teasdale LLC and Watson, Ess,
Marshall & Enggas. He holds a juris doctorate from the
University of Wisconsin Law School, where he graduated cum
laude, and a bachelor of arts in English from Rockhurst College,
where he graduated magna cum laude. He is a member of the
Missouri Bar, the Wisconsin Bar, the American Bar Association
and the Kansas City Metropolitan Bar Association.
Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the US,
Mexico and Panama. Its primary U.S. holding includes KCSR,
serving the central and south central U.S. Its international
holdings include Kansas City Southern de Mexico, serving
northeastern and central Mexico and the port cities of Lazaro
Cardenas, Tampico and Veracruz, and a 50% interest in
Panama Canal Railway Company, providing ocean-to-ocean freight
and passenger service along the Panama Canal. KCS' North
American rail holdings and strategic alliances are primary
components of a NAFTA Railway system, linking the commercial and
industrial centers of the U.S., Canada and Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 17, 2007, Fitch Ratings assigned a 'B+' foreign currency
rating and a Recovery Rating of 'RR4' to the US$165 million
senior notes due 2014 to be issued by Kansas City Southern de
Mexico, S.A. de C.V. The new notes rank pari passu with KCSM's
existing senior unsecured obligations.
Fitch also maintained 'B+' foreign currency ratings and 'RR4'
recovery ratings on KCSM's other outstanding notes:
-- US$178 million 12.50% senior notes due 2012;
-- US$460 million 9.375% senior notes due 2012;
-- US$175 million 7.625% senior notes due 2013.
The proceeds of the proposed new issuance will be used primarily
to pay off the company's outstanding US$178 million 12.50% notes
due 2012.
Fitch also maintained a 'B+' foreign and local currency Issuer
Default Rating for KCSM. Fitch said the rating outlook for
these ratings is stable.
KRISPY KREME: James Morgan Replaces D. Brewster as President
------------------------------------------------------------
Krispy Kreme Doughnuts Inc., Krispy Kreme Doughnut Corporation
and Daryl G. Brewster mutually determined to terminate their
employment relationship.
Mr. Brewster resigned, effective Jan. 6, 2008, the positions of
president, chief executive officer and director of the company
as well as all other director and officer positions with the
company's subsidiaries and affiliates. He will cease to be an
employee on Jan. 31, 2008.
James H. Morgan, chairman of the board of directors, has been
elected to replace Mr. Brewster as president and chief executive
officer. Mr. Morgan, 60, has been a director of the company
since July 2000 and was elected chairman of the board in January
2005. Since 2001, Mr. Morgan has served as chairman and chief
investment officer of Covenant Capital LLC, an investment
management firm that he founded.
Agreement with Mr. Brewster
The company and Mr. Brewster have entered into an agreement and
release, dated as of Jan. 6, 2008. The agreement, except as
otherwise provided, supersedes the employment agreement, dated
as of March 6, 2006, between the company and Mr. Brewster.
The agreement provides that Mr. Brewster will receive an amount
equal to one year's base salary under the employment agreement
or US$700,000 in cash over the year following the separation
date and that the company will grant to Mr. Brewster restricted
share units under the company's 2000 stock incentive plan with
respect to a number of shares of common stock of the company
having an aggregate fair market value (based on the closing
share price on Jan. 4, 2008) equal to US$1,190,000 (equivalent
to one year's base salary and target bonus under the employment
agreement), and the shares subject to the RSUs will be
distributed to Mr. Brewster on the third trading day after
fiscal year 2008 earnings are released, but no later than
April 15, 2008. Accordingly, Mr. Brewster will receive an
aggregate of 420,495 shares of common stock. The employment
agreement had provided for two years of base salary payable in
cash over the two years following a not-for-cause termination of
employment and for two years of target bonus payable in cash
over the two years following such a termination. Further, in
the event of a not-for-cause termination of employment, the
employment agreement had provided for an amount equal to a pro
rated target bonus for the year of termination.
Mr. Brewster also will be entitled to an additional pension
make-whole in the amount of US$319,552, payable Aug. 1, 2008,
which represents 24 months of additional vesting under the
pension make-whole, which is equivalent to what is provided for
in the employment agreement in the event of a not-for-cause
termination.
As of the agreement date, Mr. Brewster had 241,145 shares of
unvested restricted common stock, which, under the terms of the
employment agreement, would have vested upon a not-for-cause
termination of employment. Under the agreement, it is provided
that 120,573 of these shares will vest, and Mr. Brewster has
agreed that 120,572 of these shares will be forfeited. In
addition, as of the agreement date, Mr. Brewster held unvested
options to purchase 333,333 shares of common stock of KKDI at an
exercise price of US$6.39 per share and unvested options to
purchase 201,399 shares at an exercise price of US$3.41 per
share, all of which would have vested upon a not-for-cause
termination of employment under the employment agreement. He
also held vested options to purchase 166,667 shares of common
stock at an exercise price of US$6.39 per share. In the
agreement, it is provided that the US$3.41 options will vest,
and Mr. Brewster has agreed that the US$6.39 options, both
unvested and vested, will be forfeited.
Under the terms of the agreement, Mr. Brewster releases the
company and its affiliates from all claims, including claims
relating to his employment with the company and the termination
of such employment. Certain provisions of the employment
agreement, including the confidentiality provisions, the
noncompetition provisions, the nonsolicitation provisions and
the indemnification provisions, survive the termination of the
employment agreement. The company has similarly released Mr.
Brewster from all claims, including claims relating to his
employment with the company.
About Krispy Kreme
Headquartered in Winston-Salem, North Carolina, Krispy Kreme
Doughnuts Inc. (NYSE: KKD) -- http://www.krispykreme.com/--
retails doughnuts. There are about 411 Krispy Kreme stores
including satellites operating system-wide in 41 U.S. states,
Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico,
the Philippines, the Republic of South Korea, the United Arab
Emirates and the United Kingdom.
* * *
As reported in the Troubled Company Reporter on Sept. 17, 2007,
Moody's Investors Service lowered Krispy Kreme Doughnut
Corporation's Speculative Grade Liquidity rating to SGL-4 from
SGL-3, indicating weak liquidity. Concurrently Moody's revised
the rating outlook to negative while affirming Krispy Kreme's
Caa1 corporate family rating and B3 rating of its $160 million
senior secured credit facilities.
=======
P E R U
=======
PETROBRAS ENERGIA: Sells 40% Stake in Petroquimica Cuyo
-------------------------------------------------------
Petrobras Energia said in a press statement that it has sold its
40% stake in Petroquimica Cuyo to two groups.
As reported in the Troubled Company Reporter-Latin America on
Jan. 4, 2008, Petrobras Energia signed an agreement on
Dec. 31, 2007, for the sale of its 40% equity interest in
Petroquimica Cuyo to Admire Trading Company S.A. and Grupo
Inversor Petroquimica S.L.
Business News Americas relates that the share sale accord was
concluded for a price of US$32 million with Amire Trading and
Inversor Petroquimica.
According to BNamericas, Amire Trading Company already owned
50.5% of Petroquimica Cuyo.
Petrobras Energia said in a filing with the Buenos Aires stock
exchange that the sale produces an accounting profit of
approximately 39 million for the firm.
Petrobras Energia Participaciones SA (Buenos Aires: PBE,
NYSE:PZE) through its subsidiary, explores, produces, and
refines oil and gas, as well as generates, transmits, and
distributes electricity. It also offers petrochemicals, as well
as markets and transports hydrocarbons. The company conducts
oil and gas exploration and production operations in Argentina,
Venezuela, Peru, Ecuador, and Bolivia
* * *
In January 2007, Fitch Argentina Calificadora de Riesgo affirmed
these ratings assigned to Petrobras Energia:
-- international currency: B+
-- local currency: BB-
-- unsecured senior debt: B+
=====================
P U E R T O R I C O
=====================
AVNET INC: Selects Four New Corporate Vice Presidents
-----------------------------------------------------
Avnet Inc. has elected four new corporate officers and the
promoted two others. John Paget, president, Avnet Technology
Solutions Global; Jim Smith, president, Avnet Logistics; and
K.P. Tang, president, Avnet Technology Solutions Asia Pacific,
have all been elected as new corporate vice presidents for
Avnet, Inc. In addition, Jill Wysolmierski was elected chief
tax officer. Phil Gallagher, president, Avnet Electronics
Marketing Americas, was promoted to corporate senior vice
president for Avnet, Inc., and Jun Li, assistant general
counsel, was promoted to secretary from assistant secretary.
"These promotions reflect the substantial contributions each of
these executives has made to the success of Avnet," said Roy
Vallee, chairman and CEO, Avnet, Inc. "By demonstrating
exceptional performance in their respective areas of
responsibility, they have earned the respect of their peers,
both as leaders and colleagues, with a commitment to
excellence."
John Paget, president, Avnet Technology Solutions Global, joined
Avnet in 2007 and is responsible for leading Avnet's growing
US$6 billion computing business worldwide. He came to Avnet
from Synnex Corporation, where he was president of the
Technology Solutions Division and had also served as president
of Synnex North America and chief operating officer. Prior to
that position, he had worldwide responsibility for GE Technology
Financial Services as senior vice president and general manager.
He reports to Rick Hamada, chief operating officer for Avnet,
and is a member of the Avnet Executive Board.
Jim Smith was promoted to president of Avnet Logistics in 2006
after serving as senior vice president of Warehousing &
Distribution Worldwide for Avnet. Mr. Smith oversees logistics
services globally and is a member of the Avnet Executive Board.
He joined Avnet in 2000 and was responsible for logistics
operations for Avnet Electronics Marketing in the Americas.
Prior to joining Avnet, he served in leadership positions with
Marshall Industries, Kierulff Electronics, Wyle Electronics
Marketing Group and Atlas Services North America. He also
reports to Rick Hamada and is a member of the Avnet Executive
Board.
K.P. Tang, president, Avnet Technology Solutions Asia Pacific,
is responsible for the strategic direction and growth of Avnet
Technology Solutions' Asia Pacific region. Mr. Tang joined
Avnet in 2005 and has had a distinguished career, most recently
serving as vice president of Asia Business and Development and
Sales for Celestica, Inc., a global provider of electronics
manufacturing services with operations in Asia, Europe and the
Americas. His career also includes more than 30 years with IBM.
He reports to Mr. Paget.
Jill Wysolmierski, CPA, is vice president of Corporate Tax for
Avnet, Inc. She has responsibility for managing all aspects of
global income tax matters. Ms. Wysolmierski joined Avnet in
1998 and previously served in tax management positions with
AT&T, Hoke Incorporated and KPMG. She reports to Ray Sadowski,
Avnet chief financial officer.
Phil Gallagher, president, Avnet Electronics Marketing Americas,
is responsible for leading Avnet Electronics Marketing in the
Americas, a position he has held since 2004. He previously
served as senior vice president, global business development,
Avnet Electronics Marketing, where he was responsible for the
group's global supplier relationships. He has been with Avnet
for more than 25 years, holding a series of progressively more
responsible positions. He was first named a corporate officer
in November 1997 and reports to Harley Feldberg, president of
Avnet Electronics Marketing Global.
Jun Li, vice president and assistant general counsel, joined
Avnet in April 2005. Mr. Li's responsibilities include managing
core entity information for the company's 200 plus subsidiaries
globally and counseling the Board of Directors and senior
management on corporate governance. He joined Avnet in April
2005 as associate general counsel with primary responsibility
for providing legal support in the areas of securities law,
capital market transactions and corporate governance. He first
became a corporate officer in 2006 and reports to David Birk,
Avnet general counsel.
About Avnet Inc.
Headquartered in Phoenix, Arizona, Avnet, Inc. --
http://www.avnet.com/-- distributes electronic components and
computer products, primarily for industrial customers. It has
operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, and Sweden,
Brazil, Mexico and Puerto Rico.
* * *
Moody's Investors Service affirmed Avnet's Ba1 corporate family
long-term debt ratings in March 2007. Moody's said the outlook
is positive.
GLOBAL HOMES: Can Now Solicit Votes on Second Amended Plan
----------------------------------------------------------
The Hon. Kevin Gross of the U.S. Bankruptcy Court for the
District of Delaware directed Global Home Products LLC and its
debtor-affiliates to begin soliciting votes from creditors to
accept or reject their amended plan of reorganization,
Jacqueline Palank writes for The Associated Press.
Overview of the Plan
The Debtors' Second Amended Joint Chapter 11 Plan of
Reorganization contemplates the contribution of cash by Global
Home Products Investors, who holds 97.75% of the equity
interests of the Debtors, for distribution to creditors and any
cash held by the Debtors that constitutes collateral for
Madeleine LLC's secured claim, on the effective date of the
Plan.
GHPI will contribute US$8,500,000 in cash in pro rata
distribution to valid creditors, specifically:
a) US$1,000,000 to general unsecured claims holder plus a
percentage of certain net proceeds, if any;
b) US$3,500,000 to holders of 503(b)(9) claims; and
c) US$4,000,000 to administrative and priority claims holder.
The US$8,500,000 fund will be the sole source of distributions
to the holders of allowed class 5 unsecured claims, allowed
class 4 503(b)(9) claims, allowed administrative and priority
claims, and allowed class 3 claims, provided that the holders
of class 5 claims will also receive a portion of net chapter 5
claims recoveries provided under the plan.
Treatment of Claims
Under the Amended Plan, Administrative and Priority Tax Claims,
will be paid in full.
Holders of Non-Tax Priority Claims, totaling US$100,000, will
also be paid in full on the effective date of the Plan.
Madeleine LLC's secured claim, totaling US$201,824,678, will be
allowed and remain secured by substantially all of the Debtors'
assets
At the Debtors' option, Other Secured Claims will entitled to:
a) receive cash payment, in full, equal to the amount of its
allowed secured claim; or
b) retain its lien on the holder's collateral.
Holders of 503(b)(9) Claims, totaling US$10,000,000, will
receive a pro rata share of US$3,500,000 on the effective date.
Holders of these claims will expect to recover 35%.
General Unsecured Claims, totaling between US$80,000,000 and
US$100,000,000, will also receive a pro rata share of the
remaining proceeds and 18% of any net Chapter 5 claims
recoveries. Unsecured holders will recover between 1% and 1.5%.
Each holder of Reclamation Claims will receive cash from the
US$1,000,000 allocated for distribution to the General Unsecured
holders on the effective date.
Equity Interests
GHPI's equity interest will be retained under the Plan.
However, all Non-GHPI equity interests are entitled to a right
to purchase and retain their existing non-GHPI equity interests.
All subsidiary equity interest will remain unimpaired under the
Plan. Holders of cancelled options and warrants will not retain
any distribution or property from the Debtors.
About Global Home
Headquartered in Westerville, Ohio, Global Home Products LLC
-- http://www.anchorhocking.com/and http:/www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
April 10, 2006 (Bankr. D. Del. Case No. Lead 06-10340).
Laura Davis Jones, Esq., David Bertenthal, Esq., Bruce Grohsgal,
Esq., and Joshua Fried, Esq, at Pachulski Stang Ziehl & Jones
LLP, represent the Debtors. Attorneys at Dinsmore & Shohl, LLP,
and Frost Brown Todd LCC are the Debtors' special counsel. Epiq
Bankruptcy Solutions, LLC acts as the Debtors' claims agent.
Ronald F. Stengel, Conway Del Genio Gries & Co., LLC, is the
Debtors' chief restructuring officer. Plante & Moran is the
Debtors' 401(k) plan auditors. PricewaterhouseCoopers LLP and
Deloitte Tax LLP provide tax services. Houlihan Lokey Howard &
Zukin Capital is the Debtors' investment bankers while Johnson
Associates Inc. is the special compensation advisor
Sharon Levine, Esq., and Bruce Buechler, Esq., at Lowenstein
Sandler PC; and David M. Fournier, Esq., at Pepper Hamilton LLP,
represent the Official Committee of Unsecured Creditors.
Attorneys at Basham, Ringer y Correa, SC is the Committee's
special counsel. Huron Consulting Services LLC acts as the
Committee's financial advisors.
Jesse H. Austin, III, Esq., at Paul, Hastings, Janofsky & Walker
LLP, and Robert J. Dehney, Esq., at Morris, Nichols, Arsht &
Tunnell LLP, represent Medeleine LLC. Global Home Products
Investors LLC, Cerberus Partners, LP, and Cerberus Capital
Management, LP, are represented in these bankruptcy proceedings
by Lawrence V. Gelber, Esq., and Sophie S. Kim, Esq., at Schulte
Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri Mumford,
Esq., at Landis Rath & Cobb LLP.
MUSICLAND HOLDING: Posts US$30,000 Net Loss in October 2007
-----------------------------------------------------------
Musicland Holding Corp.
Consolidated Balance Sheet
As of October 31, 2007
ASSETS
Current Assets
Cash US$12,079,000
Letters of Credit/Other Deposits 415,000
Other
Amounts due from TransWorld 0
Receivables from Sub-leases 774,000
Amounts due from GOB sales 0
Miscellaneous CC 29,000
Vendors Credit due from services 1,541,000
-------------
Total 14,838,000
Fixed Assets 0
Other assets
Transport Logistic deposit 0
Insurance Deposits 3,977,000
Utility and Tax Deposits 0
-------------
TOTAL ASSETS US$18,815,000
Liabilities & Shareholders' deficit
Current liabilities
Accounts payable
Due to Transworld 0
Due to Deluxe 0
Expense accruals US$2,840,000
Other accrued liabilities
Insurance Reserve 3,380,000
5% Admin. Fee on Wachovia L/C 250,000
Miscellaneous 29,000
-------------
Total 6,499,000
-------------
DIP financing 0
Other LT Liabilities 0
Liabilities subject to compromise 315,047,000
Shareholders' deficit (302,731,000)
-------------
TOTAL LIABILITIES &
SHAREHOLDERS' DEFICIT US$18,815,000
Musicland Holding Corp.
Statement of Operations
For the Month Ended October 31, 2007
Merchandise revenue 0
Non-merchandise revenue 0
Net sales 0
Cost of good sold 0
Gross Profit 0
Store operating expenses
Payroll 0
Occupancy 0
Other (US$1,000)
-------------
Store expenses 0
-------------
General & administrative (1,000)
-------------
EBITDA (Loss) (1,000)
Chapter 11 & related charges (136,000)
Sale to Transworld 0
Hilco 65 0
Media Play Wind down 0
Depreciation & Amortization 0
-------------
Operating income (Loss) (137,000)
Interest income (expense) 44,000
Other non-operating charges/income 63,000
-------------
Earnings before Taxes (30,000)
-------------
Income tax 0
-------------
Net earnings (Loss) (US$30,000)
Musicland Holding Corp.
Statements of Cash Flow
For the Month Ended October 31, 2007
Operating activities
Net earnings (Loss) (US$30,000)
Adjustments to reconcile net earnings (loss)
to net cash provided by (used in)
operating activities: 1,000
other current assets 0
-------------
Net cash provided by (used in)
operating activities (29,000)
Investing activities
Net cash provided by (used in) 0
investing activities 0
Financing activities -
-------------
Increase/decrease in cash (29,000)
-------------
Cash at the beginning of Period 12,108,000
-------------
Cash at the end of Period US$12,079,000
Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products in the United States and Puerto Rico. The Debtor and
14 of its affiliates filed for chapter 11 protection on
Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James
H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the
Debtors in their restructuring efforts. Mark T. Power, Esq.,
at Hahn & Hessen LLP, represents the Official Committee of
Unsecured Creditors. At March 31, 2007, the Debtors disclosed
US$20,121,000 in total assets and US$321,546,000 in total
liabilities.
On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court. On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006. The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006. The hearing to consider confirmation of the
Second Amended Joint Plan started on Nov. 28, 2006.
(Musicland Bankruptcy News, Issue No. 44; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
MUSICLAND HOLDING: Posts US$296,000 Net Loss in November 2007
-------------------------------------------------------------
Musicland Holding Corp.
Consolidated Balance Sheet
As of November 30, 2007
ASSETS
Current Assets
Cash US$11,782,000
Letters of Credit/Other Deposits 415,000
Other
Amounts due from TransWorld 0
Receivables from Sub-leases 774,000
Miscellaneous CC 29,000
Vendors Credit due from services 1,541,000
-------------
Total 14,541,000
Fixed Assets 0
Other assets
Insurance Deposits 3,977,000
Utility and Tax Deposits 0
-------------
TOTAL ASSETS US$18,518,000
Liabilities & Shareholders' deficit
Current liabilities
Accounts payable
Expense accruals US$2,840,000
Other accrued liabilities
Insurance Reserve 3,380,000
5% Admin. Fee on Wachovia L/C 250,000
Miscellaneous 29,000
-------------
Total 6,499,000
-------------
DIP financing 0
Other LT Liabilities 0
Liabilities subject to compromise 315,047,000
Shareholders' deficit (303,028,000)
-------------
TOTAL LIABILITIES &
SHAREHOLDERS' DEFICIT US$18,518,000
Musicland Holding Corp.
Statement of Operations
For the Month Ended November 30, 2007
Merchandise revenue 0
Non-merchandise revenue 0
Net sales 0
Cost of good sold 0
Gross Profit 0
Store operating expenses
Payroll 0
Occupancy 0
Other (US$42,000)
-------------
Store expenses 0
-------------
General & administrative (42,000)
-------------
EBITDA (Loss) (42,000)
Chapter 11 & related charges (302,000)
-------------
Operating income (Loss) (344,000)
Interest income (expense) 41,000
Other non-operating charges/income 7,000
-------------
Earnings before Taxes (296,000)
-------------
Income tax 0
-------------
Net earnings (Loss) (US$296,000)
Musicland Holding Corp.
Statements of Cash Flow
For the Month Ended November 30, 2007
Operating activities
Net earnings (Loss) (US$296,000)
Adjustments to reconcile net earnings (loss)
to net cash provided by (used in)
operating activities: 0
Changes in operating assets and liabilities 0
Other Current Assets 0
-------------
Net cash provided by (used in)
operating activities (296,000)
Investing activities
Net cash provided by (used in)
investing activities 0
Financing activities 0
-------------
Increase/decrease in cash (296,000)
-------------
Cash at the beginning of Period 12,079,000
-------------
Cash at the end of Period US$11,782,000
Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products in the United States and Puerto Rico. The Debtor and
14 of its affiliates filed for chapter 11 protection on
Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James
H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the
Debtors in their restructuring efforts. Mark T. Power, Esq.,
at Hahn & Hessen LLP, represents the Official Committee of
Unsecured Creditors. At March 31, 2007, the Debtors disclosed
US$20,121,000 in total assets and US$321,546,000 in total
liabilities.
On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court. On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006. The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006. The hearing to consider confirmation of the
Second Amended Joint Plan started on Nov. 28, 2006.
(Musicland Bankruptcy News, Issue No. 44; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
MUSICLAND HOLDING: Court Moves Show Cause Hearing to Jan. 24
------------------------------------------------------------
At the hearing held Dec. 11, 2007, Judge Stuart M. Bernstein of
the U.S. Bankruptcy Court for the Southern District of New York
issued an oral Order to Show Cause, returnable on Jan. 15, 2008,
as to why the Musicland Holding Corp. and its debtor affiliates'
cases should not be dismissed or converted based on the
inability to confirm a plan.
Judge Bernstein directed the Debtors to provide notice of the
OSC Hearing to ensure all parties-in-interest will have more
than the required 20 days notice.
Following the December 11 Hearing, however, the Debtors, the
Official Committee of Unsecured Creditors, the Informal
Committee of Secured Trade Vendors, and Wachovia Bank, N.A.,
made significant progress in negotiating the terms of a
consensual confirmation order with respect the Debtors' Second
Amended Joint Plan of Liquidation, L.P. Harrison 3rd, Esq., at
Curtis, Mallet-Prevost, Colt & Mosle LLP, in New York,
disclosed.
In light of the progress made, and in order to avoid incurring
the administrative expenses associated with providing notice of
the OSC Hearing, which would not be an insignificant
administrative cost, the Debtors asked the Court for a short
adjournment of the OSC hearing to January 24, 2008.
"We anticipate that this brief adjournment will be sufficient to
allow the parties to conclude our negotiations and submit a
proposed consensual confirmation order to Your Honor before
notice of the OSC Hearing would be required to be served on the
parties-in-interest," said Mr. Harrison.
Accordingly, Judge Bernstein adjourned the OSC Hearing to
Jan. 24, 2008.
Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products in the United States and Puerto Rico. The Debtor and
14 of its affiliates filed for chapter 11 protection on Jan. 12,
2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James H.M.
Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in
their restructuring efforts. Mark T. Power, Esq., at Hahn &
Hessen LLP, represents the Official Committee of Unsecured
Creditors. At March 31, 2007, the Debtors disclosed
US$20,121,000 in total assets and US$321,546,000 in total
liabilities.
On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court. On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006. The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006. The hearing to consider confirmation of the
2nd Amended Joint Plan started on Nov. 28, 2006.
(Musicland Bankruptcy News, Issue No. 44; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
UNIVISION COMM: Brings In Peter Lazarus as Network Sales VP
-----------------------------------------------------------
Univision Communications Inc. has appointed Peter J. Lazarus to
the position of Executive Vice President of Network Sales,
effective immediately. In this new position, Lazarus will
oversee all advertising sales operations for the Univision,
TeleFutura and Galavision networks. Lazarus will be based in
New York and report directly to David Lawenda, President of
Advertising Sales, Univision Communications. Trisha Pray,
Senior Vice President of Network Sales, Carlos Deschapelles,
Senior Vice President of Network Sales, Peter Scanlon, Senior
Vice President of Network Planning and Mal Karwoski, Vice
President of Network Sports Sales will report directly to
Lazarus. Together, they will lead a national team of multi-
network sales professionals serving clients with innovative
advertising and marketing solutions.
"Peter has proven himself as a distinguished leader in sales and
marketing and I am delighted to welcome him to the Univision
Network sales family," said Mr. Lawenda. "I look forward to
working closely with him and leveraging his creative and
innovative ideas to further Univision's position as the leader
in Spanish-language media."
"I am proud to be joining the Univision team and am eager to
help the Company realize the significant growth opportunities
that lie ahead in the Spanish-language media landscape," said
Mr. Lazarus. "I am fortunate to be joining an experienced team
of sales professionals and have the ability to utilize the
Company's powerful cross-platform opportunities in new and
exciting ways that continue to provide advertisers with
innovative marketing solutions."
Mr. Lazarus was most recently Senior Vice President of Sales and
Business Development at IMG Sports and Entertainment.
Previously, he spent nearly 10 years in several senior positions
at NBC Universal including Senior VP of Sports and Olympic Sales
and Marketing. In this role he managed all aspects of sales and
marketing and spearheaded the US$2 billion sales effort for the
2006 Torino and 2004 Athens Olympic Games. Earlier in his
career he worked as a Television Network Account Executive in
Sports, News and Primetime. He left NBC for a short time, to
join Internet advertising sales representation firm Phase 2
Media as a Senior Vice President of Sales. Mr. Lazarus began
his career on the agency side working in the Network Buying
Departments at Young & Rubicam, Lowe and Partner SMS, and
Backer, Spielvogel, Bates.
He graduated with a B.A. in Communications from the University
of Delaware. In 2006 and 2007, Lazarus was honored by the
Sports Business Journal as a recipient of their "40 Under 40"
Award.
Headquartered in Los Angeles, Calif., Univision Communications
Inc., (NYSE: UVN) -- http://www.univision.net/-- owns and
operates more than 60 television stations in the U.S. and Puerto
Rico offering a variety of news, sports, and entertainment
programming. The company had about US$2.6 billion in debts at
Dec. 31, 2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Fitch Ratings downgrades these ratings:
-- USUS$7.7 billion senior secured bank loans due 2014
'B+/RR3';
-- 3.50% senior secured notes due 2007 to 'B+/RR3' from 'BB';
-- 3.875% senior secured notes due 2008 to 'B+/RR3' from
'BB';
-- 7.85% senior secured notes due 2011 to 'B+/RR3' from 'BB';
-- USUS$500 million second lien term loan due 2009 'B-/RR5';
-- USUS$1.5 billion 9.75%/10.50% senior unsecured notes due
2015 'CCC+/RR6'.
=================================
T R I N I D A D & T O B A G O
=================================
MIRANT CORP: Court Enters Final Decree Closing 21 Chap. 11 Cases
----------------------------------------------------------------
Section 350(a) of the Bankruptcy Code provides that after an
estate is fully administered and the Court has discharged the
trustee, the Court will close the case.
Hence, at the New Mirant Entities' behest, the U.S. Bankruptcy
Court for the Northern District of Texas entered a final decree
closing each of the 21 Chapter 11 cases of administratively
consolidated Mirant Entities, effective on Dec. 19, 2007.
The Administered Entities are:
Debtor Case No.
------ --------
Mirant California Investments, Inc. 03-46619
Mirant California, LLC 03-46620
Mirant MD Ash Management, LLC 03-46637
Mirant Special Procurement, Inc. 03-46650
MLW Development, LLC 03-46588
Mirant Americas, Inc. 03-46594
Mint Farm Generation, LLC 03-46596
Mirant Americas Procurement, Inc. 03-46615
Mirant Capital, Inc. 03-46623
Mirant Chalk Point Development, LLC 03-46625
Mirant Dickerson Development, LLC 03-46630
Mirant Fund 2001, LLC 03-46631
Mirant Intellectual Asset 03-46633
Management and Marketing, LLC
Mirant Portage County, LLC 03-46646
Mirant Services, LLC 03-46649
Mirant Wichita Falls, LP 03-46659
Mirant Wyandotte, LLC 03-46660
Mirant Wrightsville Investments, Inc. 03-49548
Mirant Wrightsville Management, Inc. 03-49556
Wrightsville Power Facility, L.L.C. 03-49553
Wrightsville Development Funding, L.L.C. 03-49555
Craig H. Averch, Esq., at Haynes and Boone, LLP, in Dallas,
Texas, points out that it is clear that a final decree is
appropriate in the case of each of the Administered Entities
since:
(a) the order confirming the New Mirant Entities' Plan of
Reorganization is final and non-appealable;
(b) the Plan has been substantially consummated and payments
to be made under the Plan are largely completed;
(c) to the extent that any claims remain pending against any
of the Administered Entities, the claims will remain
pending against the debtor group to which the entity
belonged, as provided for in the Plan; and
(d) the rights of creditors will not be adversely affected
by the closing of the Administered Entities' Chapter 11
cases.
Mr. Averch tells Judge Lynn that under Section 1930 of the
Judiciary and Judicial Procedure Code, the Administered Entities
are incurring fees, and and will continue to incur the fees
until the Chapter 11 case of each entity is closed.
The United States Trustee for Region 6 did not oppose the
request, according to Mr. Averch.
As of the Chapter 11 Closing Effective Date, there are 17 cases
remaining in the Administratively Consolidated Cases of the New
Mirant Entities:
Debtor Case No.
------ --------
Mirant Corporation 03-46590
Mirant Potomac River, LLC 03-46647
Mirant Americas Generation, LLC 03-46592
Mirant New York, Inc. 03-46641
Mirant Bowline, LLC 03-46618
Mirant Lovett, LLC 03-46636
Mirant NY-Gen, LLC 03-46642
Hudson Valley Gas Corporation 03-46595
Mirant Mid-Atlantic, LLC 03-46593
Mirant Chalk Point, LLC 03-46626
Mirant Piney Point, LLC 03-46645
Mirant Canal, LLC 03-46621
Mirant Kendall, LLC 03-46634
Mirant Potrero, LLC 03-46648
Mirant Delta, LLC 03-46629
Mirant Americas Energy Marketing, LP 03-46591
Newco 2005 Corporation 05-90365
PG&E Objects
Pacific Gas and Electric Company tried to block the Debtors'
request. Pacific Gas asked Judge Lynn not to close the
bankruptcy proceedings of Mirant Delta, LLC and and Mirant
Potrero, LLC because Mirant Potrero assumed certain obligations
to indemnify PG&E for costs of work PG&E agreed to perform that
was requested by the Port of San Francisco, acting on behalf of
the City and County of San Francisco.
Jo E. Hartwick, Esq., at Stutzman Bromberg Esserman & Plifka, in
Dallas, Texas, states that Mirant Delta and Mirant Potrero, on
the one hand, and PG&E, on the other, memorialized Mirant
Potrero's agreement to indemnify PG&E in an agreement that was
subsequently approved by the Court on August 2, 2006.
Hence, PG&E sought to preserve its right to seek indemnification
pursuant to the Potrero Indemnity Obligations.
The Debtors responded that there was no reason for PG&E to
object to their Closing Motion, since the request did not
include Mirant Delta and Mirant Potrero.
About Mirant
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.
Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring. When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts. The
Debtors emerged from bankruptcy on Jan. 3, 2006. On
March 7, 2007, the Court entered a final decree closing 46
Mirant cases.
Mirant NY-Gen LLC, Mirant Bowline LLC, Mirant Lovett LLC, Mirant
New York Inc., and Hudson Valley Gas Corporation, were not
included. On Feb. 15, 2007, Mirant NY-Gen filed its Chapter 11
Plan of Reorganization and on Feb. 22 filed a Disclosure
Statement explaining that Plan. The Court approved the adequacy
of Mirant NY-Gen's Disclosure Statement on March 22, 2007, and
confirmed the Amended Plan on May 7, 2007. Mirant NY-Gen
emerged from chapter 11 on May 7, 2007.
On July 13, 2007, Mirant Lovett filed its Chapter 11 Plan of
Reorganization. The Court confirmed Mirant Lovett's Plan on
Sept. 19, 2007. Mirant Lovett emerged from bankruptcy on
Oct. 2, 2007.
(Mirant Bankruptcy News, Issue No. 134; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Dec. 26, 2007,
Moody's Investors Service upgraded the ratings of Mirant
Corporation (Mirant: Corporate Family Rating to B1 from B2) and
its subsidiaries Mirant Mid-Atlantic, LLC (MIRMA: pass through
trust certificates to Ba1 from Ba2), Mirant North America, LLC
(MNA: senior unsecured to B1 from B2 and senior secured to Ba2
from Ba3) and Mirant Americas Generation, LLC (MAG: senior
unsecured to B3 from Caa1). Additionally, Mirant's Speculative
Grade Liquidity (SGL) rating was revised to SGL-1 from SGL-2.
Moody's said the rating outlook is stable for Mirant, MNA, MAG,
and MIRMA.
=================
V E N E Z U E L A
=================
CHRYSLER LLC: Worldwide Sales Down by Less Than 1% in 2007
----------------------------------------------------------
Led by its best year ever in International markets, outselling
any previous year in the company's history with 238,218 units,
an increase of 15 percent, Chrysler LLC has announced a year of
solid growth in markets outside the United States, with sales of
599,618 units in 2007, up nearly 8 percent versus 2006. In
Canada, 232,859 units were sold, a 6 percent increase, while in
Mexico, with an increase of 0.1 percent, 128,541 units were
sold.
"On behalf of our leadership team, I would like to extend my
thanks and appreciation to Chrysler's global network for a
strong 2007," Chairperson and Chief Executive Officer, Bob
Nardelli, said. "This global performance is a great
demonstration of what can be done when all of our employees,
dealers, distributors and suppliers are fully aligned and
focused on meeting the needs of our customers and being
competitive in the industry. As we continue to grow globally,
its our proud heritage that will continue to differentiate
Chrysler in global markets and resonate with customers
worldwide."
With the segment that it created, Chrysler remains the minivan
leader with Dodge Grand Caravan holding the number one position
in the U.S. with 176,041 units sold in 2007 and ranking second
in global sales with 232,000 units sold. With 30,937 units sold
outside North America, Dodge Caliber was the highest sales
volume vehicle for the company.
"We are fortunate that in a tough industry, customers in the
United States, Canada, Mexico and around the world have
responded favorably to our Chrysler, Jeep and more recently,
Dodge brands," Vice Chairman and President, Jim Press said.
"This is a revitalized organization, moving in the right
direction, with a renewed emphasis on putting the global
customer first at every step in the process -- anxious to serve,
proud of the value and quality of our products. I am pleased to
say that our global results are beginning to show this."
Sales increases in select markets were driven by the worldwide
appeal and strong customer interest in Chrysler's new vehicles,
including the Jeep(R) Wrangler, Jeep Compass and Jeep Patriot.
Worldwide sales were down less than one percent during 2007 to
2,676,268 units versus 2,698,429 units in 2006.
Chrysler International Markets
Spurred by demand for the new Chrysler, Jeep and Dodge products,
Chrysler achieved record sales outside North America in 2007,
outselling any previous year in the company's history. Year-to-
date sales increased 15 percent to 238,218 units from 2006
results of 206,925 units. The highest volume markets outside
North America were: Italy (21,361 units); Venezuela (19,459
units); and the United Kingdom (18,623 units).
Chrysler Canada
Chrysler Canada sales rose 6 percent to 232,859 units in 2007
compared with 220,553 units sold in 2006, securing the
automaker's position as the No. 2 seller of cars and trucks in
Canada. Furthermore, with the introduction of nine new models in
2007, Chrysler Canada's sales growth has exceeded that of the
Canadian market by gaining more new customers than any other
OEM.
Chrysler Mexico
Posting its best sales year since 2001, Chrysler Mexico sales
rose slightly (0.1 percent) to 128,541 units during 2007.
Chrysler Mexico sales and market share have been consistently
increasing in a competitive market; this growth has been made
possible by the complete product lineup offered by the Chrysler,
Dodge and Jeep brands in the Mexican automotive market.
Chrysler U.S. Market
In the United States, Chrysler LLC sold 2,076,650 units in 2007,
a decrease of 3 percent from the 2,142,505 units in 2006.
Chrysler LLC continues to invest in new product, including new
fuel-efficient powertrains. For 2008, the company will offer
six vehicles with 28 miles per gallon or better highway fuel
economy including Jeep Compass, Jeep Patriot, Dodge Avenger,
Dodge Caliber, Chrysler Sebring Sedan and Chrysler Sebring
Convertible. This combined with the best-in-industry Lifetime
Powertrain Warranty on Chrysler, Jeep, and Dodge vehicles is
bringing more customers to showrooms.
About Chrysler LLC
Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2007, Standard & Poor's Ratings Services revised its
recovery rating on Chrysler's US$2 billion senior secured
second-lien term loan due 2014. The issue-level rating on this
debt remains unchanged at 'B', and the recovery rating was
revised to '3', indicating an expectation for meaningful (50% to
70%) recovery in the event of a payment default, from '4'.
PETROLEOS DE VENEZUELA: Mulls Joint Venture with Petroecuador
-------------------------------------------------------------
Venezuelan state-run oil company Petroleos de Venezuela SA will
study the creation of a joint venture with Ecuadorian
counterpart Petroecuador for exploration and production at Block
4 in the Gulf of Guayaquil, the Ecuadorian presidential press
office said in a statement.
According to Ecuador's statement, its energy and mining ministry
has already signed a letter of intent with Venezuelan
counterpart Menpet for the joint exploration.
Ecuadorian energy and mining minister Galo Chiriboga told Xinhua
News, "The signing of this document responds to an initiative by
the governments of Ecuador and Venezuela to economically
integrate the region by establishing energy alliances."
The statement says that Petroecuador will give Petroleos de
Venezuela technical information on the block in the first phase
of joint activities. Petroleos de Venezuela will form a
technical team and reprocess and evaluate the data within six
months.
Business News Americas relates that Venezuela and Ecuador agreed
to let Petroleos de Venezuela develop an exploration and
production plan for the block.
Minister Galo Chiriboga said in a statement that Petroleos de
Venezuela will pay the US$150-million start-up fee.
Petroecuador will start paying for its share of exploration and
production once the initial results are positive.
Minister Chiriboga told BNamericas that the oceanographic
institute of Ecuador's navy would head seismic acquisition
during the exploration phase.
There is no risk for Ecuador if the exploration is a failure,
Xinhua News says, citing Minister Chiriboga. "But if the
exploration comes up positive, the exploitation process will be
negotiated," the minister commented to Xinhua News.
The project with Venezuela would held Ecuador increase
hydrocarbon supply security in the medium and long term by
diversifying sources, Minister Chiriboga told Xinhua News.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.
* VENEZUELA: Rafael Ramirez Sees OPEC Output Rise Unnecessary
-------------------------------------------------------------
Venezuelan Minister of Energy and Petroleum Rafael Ramirez
disclosed that the oil supplies in the international markets is
sufficient and the Organization of Petroleum Exporting Countries
won't need to raise output during its coming meeting, various
reports say.
"We have enough crude oil in the market," Reuters relates,
citing Mr. Ramirez
The official estimated, El Universal states, that prices of oil
would stay at some US$100, given high production costs and fears
about the economy.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at
'B'and the Country Ceiling at 'BB-'. Fitch said the outlook on
the ratings remains stable.
* VENEZUELA: Eyes Best Oil Prices This Year
-------------------------------------------
The Venezuelan government is expecting good oil prices in 2008
following the futures market making record of US$100 per barrel
in the international market, El Universal relates.
Report shows that Oil topped US$100.09 per barrel at the New
York Stock Exchange, however, the Venezuelan basket, composing
heavy and extra-heavy oil, averaged US$85.76 per barrel the week
of Dec. 28.
"We will have good oil prices this year," Central Bank of
Venezuela chair Armando Leon told state-run TV channel
Venezolana de Television.
El Universal says that economic growth has been steady for four
years until 2007 due to high oil prices, which boosted the
Venezuelan economy.
President Hugo Chavez had previously made predictions oil prices
would reach US$100, El Universal adds.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at
'B'and the Country Ceiling at 'BB-'. Fitch said the outlook on
the ratings remains stable.
* VENEZUELA: Rafael Ramirez Remains as Oil Minister
---------------------------------------------------
Venezuela's President Hugo Chavez told Reuters that Rafael
Ramirez would remain as energy and petroleum minister, despite a
major change in the cabinet.
According to Reuters, President Chavez "rotated 13 cabinet posts
after losing a referendum" that would have increased his term.
Reuters notes that Minister Ramirez is a "close confidant" of
President Chavez.
Minister Ramirez has been in the post since 2002. He supervised
the takeover of four multi-billion-dollar oil projects of
foreign firms in 2007, Reuters notes. He's also been state-run
oil firm Petroleos de Venezuela SA's head since 2004. He helped
turn Petroleos de Venezuela into the principal financier of
President Chavez's projects, Reuters states.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at
'B'and the Country Ceiling at 'BB-'. Fitch said the outlook on
the ratings remains stable.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, and Pamella Rita K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
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