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: